wbrwsstelangana.comwbrwsstelangana.com/worldbank/6Aide_Memoire.docx · Web viewvisited Andhra Pradesh from May 8-17, 2013 for Mid-Term Review of the Andhra Pradesh Rural Water Supply

Aide MemoireINDIA: Andhra Pradesh Rural Water Supply & Sanitation Project

Mid Term Review Mission (Mission# 6) May 8-17, 2013

Table of ContentsI. Introduction................................................................................................................................................2

II. Key Project Data.......................................................................................................................................2III. Project’s Scope and Objectives................................................................................................................2

IV. Achievement of PDO and its Rating.......................................................................................................3V. Overall Implementation Status, Issues and Rating...................................................................................5

VI. Project Costs and Disbursements...........................................................................................................11VII. Institutional, Technical, Fiduciary and Safeguard Issues.....................................................................13

VIII. Key Actions.........................................................................................................................................18Annexes

Annex-1: Project Indicators.........................................................................................................................19Annex-2: List of all Agreed Actions............................................................................................................24

Annex-3: Implementation Risks and Mitigation Measures for MVSs........................................................28Annex 4: Institutional Arrangements...........................................................................................................30

Appendix 4. 1 Status of staffing in the project units – PSUs and DPSUs................................................35

Appendix 4.2 Status of field staffing in RWSSD Circle offices.................................................................36

Appendix 4.3: Workshops and Conferences organized by APRWSS......................................................37

Appendix4.4 – Governance and Accountability.....................................................................................38

Annex-5: Technical Assessment..................................................................................................................41

Appendix 5.1 Feasibility of Execution of MVSs during monsoon...........................................................49

Appendix 5.2 Service levels in MVS extension Schemes........................................................................58

Annex-6: Procurement Management...........................................................................................................59

Annex-7: Financial Management.................................................................................................................61Annex-8: Environmental Management........................................................................................................63

Annex-9: Social Development, Capacity Building, Tribal Development...................................................67

Appendix 9.1 Field Visit Notes on Social Aspects...................................................................................71

Annex 10- List of Villages visited by the mission.......................................................................................79

Appendix 11.1 Water AllocationsAppendix 11.2 SWApAppendix 11.3 O&M Norms Appendix 11.4 Sanitation ConvergenceAppendix 11.5 O& Policy

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Aide MemoireINDIA: Andhra Pradesh Rural Water Supply & Sanitation Project

Mid Term Review Mission (Mission# 6) May 8-17, 2013

I. Introduction

1. A World Bank Mission1 visited Andhra Pradesh from May 8-17, 2013 for Mid-Term Review of the Andhra Pradesh Rural Water Supply and Sanitation Project. The focus of the mission was to review overall project performance and agree on restructuring as needed such as change of scope or targets of components, fund reallocations / cancellations, and measures to improve implementation performance. During / before the mission, the mission members visited the districts Visakhapatnam, Mahaboobnagar, Cuddapah, Prakasam, and Karimnagar (see Annex-10). The mission met the Secretary, Rural Water Supply and Sanitation Department (RWSSD) Mr. Vikas Raj, the Project Director, Mr. ANSV Prasad; the Engineer-in-Chief Mr. R. Chakrapani. The mission has also met the staff of Project Support Unit (PSU) and the District Project Support Units (DPSUs). During the field visits, the team has interacted with the Gram Panchayat (GP) Sarpanches and the GP Water and Sanitation Committee (GP-WSC) members, Self-Help Group (SHG) members, village communities and support staff. Detailed presentations were made by the PSU and all six districts on the progress of their district programs. The mission had detailed discussions with the Secretary, RWSS department on the critical actions and reached agreements on the follow-up required. The mission met with the Finance Secretary, Ms. Pushpa Subrahmanyam, Principal Secretary Finance, and had a wrap-up meeting with the Chief Secretary Mr. P.K.Mohanty, on May 17, 2013. This Aide Memoire presents the mission’s assessment of the project status, the agreed actions for improving the implementation performance and reaching the Development Objectives.

II. Key Project DataTable-1: Key Project Data

Key Project Data Previous Ratings and Flags

Current Ratings and Flags

Board Date Sep 22, 2009 Development Objectives Satisfactory Moderately Satisfactory

Closing Date Nov 30, 2014 Implementation Progress Moderately Unsatisfactory

Moderately Satisfactory

Project Age 3 Years 7 months Problem Flags Project Management

Procurement

Project Management

Disbursement delays

% Disbursed 12%

III. Project’s Scope and Objectives

2. The Project Development Objective (PDO) is

“To assist Government of Andhra Pradesh (GoAP) in improving rural water supply and sanitation services through progressive decentralization, community participation and enhanced accountability”.

1 The Bank mission comprised Messrs./Mmes. Raghava Neti (TTL, SASDU), S. Satish (SASDS), D.M. Mohan (Engineering Consultant SASDU), K. Kalyani (Environment Consultant SASDI), Tripti Jain (SARFM), Priti Jain (SARPS), JVR Murty (Consultant Institutional Capacity Building), BKD Raja (Consultant Social Safeguards) and Nirmala Chopra (Program Assistant)

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3. The project supports decentralized RWSS service delivery responsibilities, with the District Water and Sanitation Mission (DWSM) responsible for the RWSS program at the district level. Sector-wide common Approaches (SWAP) are adopted in six pilot districts (Visakhapatnam, Mahaboobnagar, Cuddapah, Prakasam, Karimnagar and Adilabad). Policy and technical support is provided by the RWSS department for designing and implementing the schemes, with community participation and endorsement under various stages of scheme implementation. The key project outcome is increasing the number of people with access to improved water supply services, improved hygiene and sanitation practices, and improved cost recovery and collection efficiency.

IV. Achievement of PDO and its Rating

4. PDO: The project aims to improve access to rural water supply and sanitation services to rural community, through progressive decentralization, community participation and enhanced accountability.

5. Status: The project has started showing the results, as about 0.8 million people have started benefiting from access to improved water supply, after completion of about 872 Single Village Schemes (SVS) so far. Implementation has progressed well, with project’s contract commitments increasing since early this year – both on account of Single and Multi-Village Schemes (MVS). Implementing these schemes which are now committed would lead to further improvements in access to water supply to the rural communities. On sanitation front, the progress is limited so far, with about 2300 toilets completed, providing sanitation access to about 11500 people. Going forward, the project will focus on increasing access to poor habitations, to make them 100 percent covered, through provision of fund incentives given to such habitations.

6. On community participation and accountability, all the SVSs are being implemented through Gram Panchayat (GP) involvement, by forming GP level Water and Sanitation Committees (GP-WSC), supported by Self-Help Groups (SHGs). To further strengthen the process of decentralization, the project has started entrusting works costing less than INR 600,000 to GP level committees over the last one year. This has spurred community involvement in smaller habitations. Similar committees are being formed in MVSs. Community capital cost contributions have reached a level of 18 percent of the requirement.

7. The key indicators that show progress towards the PDO are listed in Table-2 below. This table also shows the current status of achievement of these indicators and the expected progress in the remaining period. Detailed status of all the project indicators is given in Annex-1.

Table-2: Status of Key Project Indicators

Aspect Sl.No

Key Indicator Remarks Current Status / Expected progress

Improved access to water supply and sanitation

1 Number of people with access to improved water supply service

Ref. page4, para 11 of PAD

Schemes in 872 habitations have just been completed. This has benefited 0.8 million population. With more schemes getting committed, the achievements would go up.

2 Number of people with access to piped water supply through-out the year


Most of the schemes are piped water supplies, with sustainable sources which are able to supply throughout the year – particularly the MVSs. Presently, population in 359 SVS habitations with piped water supply are benefiting.

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3 Households with access to safe sanitation facilities

Existing intermediate indicator

The project only supports toilets for Below Poverty Line households. There was no target set at the time of project design. Progress on sanitation is slow, with only 2319 toilets built so far in 56 habitations, benefiting about 11500 people. With a new focused approach as planned at MTR, the progress is likely to improve.

Community participation, Decentralization &Accountability

4 Improvements in cost recovery (contribution to capital and O&M cost) and collection efficiency


Monitoring of O&M cost recovery has not yet started as the schemes have just been commissioned. Out of INR 131 million capital cost contributions required, about INR 23 million was collected so far (18%). With schemes getting committed, this shall go up.

5 SVSs constructed in participation with GPs


All the SVS schemes are implemented through GP involvement, by forming the GP-WSCs. The committees are supported through Self-help Groups, who are strong in Andhra Pradesh.

6 MVSs constructed in participation with ZPs, and MVSs managed by ZPs


In case of MVS, community mobilization is rather weak as of now, as GP-WSCs and Scheme Level Committees (SLCs) are just forming/yet to be formed, though consultations with beneficiary villages have happened. This needs to be addressed going forward.

8. Outside the project, GoAP has taken up two key policy initiatives (see Section V, para 22) a) applying SWAP principles across the sector; and b) adoption of O&M policy for the state; giving a fillip to sustainability in the sector.

9. Rating: Based on the progress so far, and the context that is emerging, the mission’s assessment shows that the PDO remains relevant and achievable. The progress so far achieved is in the right direction. However, the project is closing in about 1½ year. Implementation of most of the MVSs is just starting, and with possible delays particularly on larger schemes and where source works are to be done in the rivers (only possible in the next summer), there could be likelihood of non-completion of some of the schemes by project closing – rendering full targets not being achieved. Sanitation has to pick up under the new approach that was discussed at the MTR. There is likelihood of cancellation of funds subject to DEA decision (more details in para 17 (a)), which may reduce the number of schemes under the project, and thus the level of outputs and outcomes that are possible in the remainder of the project. Given this situation, the PDO rating is revised to ‘Moderately Satisfactory’.

10. Restructuring: The project’s restructuring will be completed by August 2013, reflecting the cancellations that will be finally decided between DEA-GoAP-World Bank, final scope of components (particularly sanitation); adjusting the indicators, targets, and final ratings.

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V. Overall Implementation Status, Issues and Rating

11. The project implementation has accelerated since the end of last year, and this is reflected in the following: a) there has been good progress on procurement, since January 2013; b) staffing position in the Project Support Units (PSUs) at the state and district levels have been maintained at more than 90% level; c) there were regular monthly reviews within the state by the Secretary of the RWSSD and by the Chief Secretary; d) the fund flow system has been changed for Components A and C from Pay and Accounts Office (PAO) system [which GoAP follows for all contract payments], to Personal Deposit (PD) system [where all small payments / advances required under Components A and C need not go to PAO offices, and can be directly released by the project]; which facilitated better control on these components. All these efforts are likely to improve the project performance.

12. Overall project commitments have also increased. While in November 2012, only 23% of the project costs were committed due to contract awards ($35M) under Component B; by March it reached a level of 38% ($57 M); by May – 66% ($100M); and likely by June – 80% ($118M) (see Fig-1 below). This makes a quantum jump in overall commitments from 23% in November 2012 to 80% by June 2013. Specifically, by May 31, 2013, contracts worth 94% of value of Single Village Schemes (SVSs) and 62% of value of the Multi-Village Schemes (MVSs) respectively were awarded; and by June 30, 2013, it is estimated that contracts worth 100% of value of SVSs and about 88% of value of MVSs will get awarded (the balance 12% for MVSs is for three DBOs as described in para 14 below). This enhanced contract commitments is likely to result into improved disbursements in the coming period.

Figure-1: Contract Commitments progress

By Mar31 At MTR By May 31 By Jun300%

20%

40%

60%

80%

100%

120%

78%

94% 94%100%

4%

36%

62%

88%

40%

60%69%

85%

Contracts committed under SVS (in terms of cost)Contracts committed under MVS (in terms of cost)Total project costs committed due to SVS/MVS

13. The procurement progress at different stages for both SVSs and MVSs is shown in Figures-2 and 3. The progress was made possible through rationalizing the qualification criteria, contractors’ workshop to enhance participation and quick turn around on processing.

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Figure-2: Procurement Progress for SVS (INR Cr)

as of MAR 31 as of APR 30 at MTR as of MAY 31 as of JUN 300.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

Total Cost Committed (LOA issued) Under Evaluation Bids Being Received Bids to be Invited

Figure-3: Procurement Progress for MVS (INR Cr)

as of MAR 31 as of APR 30 at MTR as of MAY 31 as of JUN 300.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

Total of MVSs Committed (LOA issued ) Under Evaluation Bids Being Received Bids to be invited (DBOs)

14. There are three DBO contracts of MVSs, costing $6.6M, which are taken up to demonstrate a new model of O&M through private sector involvement. These were under preparation in the last year, where consultations were held with the community and detailed financial analysis of their viability was assessed. Out of which one MVS (Y.Palem) required almost 2/3rd capital investments by the GoAP to make it viable, therefore, it was decided to take this out of DBO mode. During the MTR mission, GoAP expressed its willingness to proceed with the other two as DBO contracts. Procurement completion of all these three (two DBOs, one out of DBO) may take up to October 31, 2013 to reach contract stage. The overall achievements so far on the other components and the key focus areas for each component are in Table-3 below.

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Table-3: Summary of Component wise status

Component / Sub-Component

Progress Achieved Output achieved Proposed scope change at MTR

Focus going forward

A Capacity and Sector Development

A1 Capacity Building Various orientation, training and capacity building programs are taken up

1078 programs conducted, 49274 persons trained till April 30, 2013

No change * To focus more on the content, method and target group for capacity building on current needs;* orient and build capacity of new elected representatives in the local bodies* Ensure streamlining of O&M support to the villages, thro’ the recent GOAP initiative of O&M divisions

A2 Program IEC Various awareness raising activities, communication activities were taken up

156807 activities taken up till April 30, 2013

No change Focus more on need to develop an appropriate strategy for the remaining part of the project activities, addressing issues related to: stage of projects in each Mandal/ district, messages to be communicated for the given stage of projects, target group and most appropriate means for communicating messages. A consultant can be hired.

A3 Sector Development Studies

There are no major sector develop studies taken up -- A nominal amount is kept for any need based studies.

Limited number of need based studies can be taken up (see Annex-2)

A4 District Awards This was not yet initiated -- To be rejuvenated, and also to be used to promote sanitation in poor habitations

Use incentive funds for sanitation

B Infrastructure Development

B1 New Investments Under this, SVS and MVS are taken up. A total of 1556 SVS, 47 MVS are under the project. Contract Commitment has progressed at faster pace since January 2013. By May 31, 2013, 94% of the value of SVSs is committed thro’ contracts and 62% of the value of MVSs is committed. While some funds were allocated under pilot testing of new technologies, none were implemented. No Rainwater harvesting structures were implemented so far.

359 SVS are completed by April 30, 2013.

No change. Target of SVS remains the same at 1556; and that of MVS at 50 (48 regular MVS, 2 DBOs). No more procurement after June 30, 2013 Can include pilot testing of innovative technologies sub-component of Component B3 under this component, which can be used for metering and other improvements suggested at MTR.

Closely monitor implementation, addressing risks as identified during the mission (Annex-2), including measuring outcomes

B2 Rehabilitation and Augmentation

Under this 1168 SVSs are taken up for rehabilitation, out of which, a majority of them

513 augmentation works were completed.

No change. Total target of augmentation remains the

—do --

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Component / Sub-Component

Progress Achieved Output achieved Proposed scope change at MTR

Focus going forward

1027 are small works costing < INR 600,000, directly entrusted to the GP-WSCs.

same at 1168 schemes, and for recharging at 380. No more procurement after June 30, 2013

B3 Sanitation and Hygiene Promotion

Sanitation progress has been slow. Hygiene promotion activities are ongoing. Sewerage in Mandal head-quarters, and Solid and Liquid Waste Management in large GPs has not picked up.

2319 toilets and 2686 soak pits have been constructed.

To focus on toilet coverage and soak pits in poor (SC/ST) habitations, to achieve 100% coverage. UGD in mandal headquarters, SLWM in major GPs will not be taken up.

* Refocus on sanitation on poor habitations, to achieve 100% coverage.* Develop a strategy paper to implement this.

C Project Implementation Support

C1 Staffing and Consultancy cost of PSU

The PSUs and DPSUs have mobilized staffing to the extent of 93%.

93% staff positions in PSU, DPSUs filled.

This will also include now support for hiring of field staff

Maintain full staffing levels, including the field staff, as discussed during the mission

C2 Equipment and Miscellaneous cost

This component is supporting the operating costs of PSU and DPSUs

This will also include now support for hiring of required vehicles

Provide for sufficient number of vehicles for staff movement for field visits

C3 M&E and Impact Analysis

An MIS system developed with the help of National Informatics centre (NIC) is operational, but presently the updates have to be routed through NIC. A dynamic web-based system – where updates can be done directly at the field level – is planned to be in place by September 2013. Computerization of baseline data is ongoing.

MIS system operational, but improvements planned.Baseline data collected.

No change Ensure M&E system functioning, including monitoring of outputs and outcomes, result verification

C4 Governance and Accountability

A grievance redress system is being established, to be integrated with the web-based M&E system. For SVS’s GP-WSCs are signing off before the check payments are made to the contractors. Social Audit is happening.

No change Operationalize this system, including widely communicating about its availability and utility.

C5 Engineering support Engineering support through consultancies was provided for designing the SVS and MVSs.

No change —

C6 Community Support Community involvement is promoted during scheme planning and implementation. A structured intervention through an External Agency / NGO / Support Organization is needed.

2370 Self Help Groups (SHGs) are identified as Support Organizations (SOs).

No change * Create and build capacity of MVS committees * undertake a structured intervention

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15. On Sanitation front, the progress has been limited mainly due to a) limited capacity of RWSSD to implement the program; and b) sanitation being implemented through the other department Society for Elimination of Rural Poverty (SERP), and monitored through the Rural Development Department (RDD) in the state (see details in Annex-4). The outreach on sanitation from RWSSD is therefore found to be limited. In order to expedite implementation, the MTR mission discussed possible options with RWSSD. It was agreed to refocus the scope of this program, to limit it to cover 'increasing access to poor habitations (SC/ST), to make them 100% covered, through provision of fund incentives given to such habitations’, rather than spreading thin across the project districts. Component A4 already has provisions for such incentives which can be used. To build the delivery capacity of RWSSD, the project will support hiring of necessary Resource Persons at various levels. The activities of Sewerage in Mandal head-quarters and Solid and Liquid Waste Management in large GPs were agreed to be deleted, since there is not enough time to implement them.

16. Rating: In consideration of the overall progress, particularly because of the significant progress that was made over the last 6-7 months on procurement, the Implementation Progress rating is upgraded to ‘Moderately Satisfactory’, This rating will be closely reviewed based on progress and achievement of indicators in the next 1½ year before project closing, and will be upgraded/downgraded as needed.

17. Key Issues and Actions: The following are the key issues and related actions with respect to implementation management.

a) Fund Cancellations : A portfolio review meeting was help at DEA on June 07, 2013. In that meeting, DEA requested the project to cancel funds uncommitted by the end of March 2013, which was the deadline given in the January 2013 portfolio review. This would lead to cancellation of about $68M (with the exchange rate of 1US$=55 INR). On the other hand, considering the progress made later, if the commitment cut-off line is June 30, this would lead to cancellation of US$25M (after allowing for the two DBOs and one MVS which was moved out of DBO to be procured by October 2013). A decision on this is expected to be reached in the coming two months, through discussions between DEA, GoAP and the World Bank.

b) Implementation Risks : The MTR mission reviewed the risks to implementation of the committed works SVS/MVS. Particularly, SVSs are not likely to pose problems, but there may be challenges for MVSs, as listed in the Table-4 below, for which mitigation measures were agreed, which need to be implemented by RWSSD. A detailed analysis of these risks is included in Annex-3. The Bank team will closely follow-up on this with GoAP.

Table-4: Implementation Risks and Mitigation measures agreedRisk Mitigation Measure agreed at MTR For about 50% MVSs source works have to be

done in next summer (Jan-May 2014)- may cause delays

Develop comprehensive Contract Management Plan for every MVS

Adopt Karnataka RWSS contract monitoring system PMU staff to adopt specific districts and monitor

While there is no land acquisition required anywhere, certain permissions for National Highways, state departments are required

Closely monitor permissions

Delay in payments to contractors Adopt APMDP project MIS to APRWSS Set deadlines for bill preparation and payments, and

monitor About 50% vacancies exist in field level

staffing (those who supervise the works in RWSS department). GoAP has just been hiring young engineers for regular posts, through the state’s Public Service Commission (APPSC).

Allocate sufficient staff to the project after APPSC hiring.

To fill the gap, hire local Technical Consultants to support the existing engineering staffo Develop and agree on modalities by July 15

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o Hire by August 31 Working conditions of contract staff hired to

the project implementing entities Review remuneration, working conditions and take

policy decision by July 31 Local body elections in August 2013 General elections in May 2014

No more procurement / rebidding Sign all contracts by June 30, 2013 Achieve good implementation progress early next year,

before elections Key staff are retiringo Project Director is retiringo Two Superintending Engineers (who are

the Project Managers at districts) are retiring

The PD shall be retained Fill up SEs vacancies as soon as possible

c) Procurement Closure : Since the remaining time period under the project is not enough, the mission suggested that there shall be no more procurement and award, beyond June 30, 2013, except for the contracts as specified in para 14 above. However, ultimate decision shall be as per the joint decision as in para 17 (a) above.

d) Local government involvement : As of now, there are no rural local governments on the ground during the last two years, as the elections were not held since June 2011 – which will be now held in July/August 2013. In the interim, the state’s notified local administrative officers are acting as ‘elected heads’ in the local governments. This has limited the chances for ‘elected local governments’ to participate in the project. Once these local governments are in place, the composition of the GP-WSCs and the Scheme Level Committees (SLCs) of MVS will change with the new members coming-in. GoAP recognizes this eventuality, and it was agreed that, in the remainder of the project, the focus shall be to work with these local governments / committees to ensure their involvement; for which the RWSSD should gear-up.

e) Project Indicators : The MTR mission has also reviewed the project indicators and proposes to rationalize them based on the status at MTR and as described in the remarks against specific indicators in Annex-1. This change along with modification of disbursement projections will be done once the cancellation is affected.

18. Other Implementation Issues assessed at MTR: The MTR mission has also looked at the project implementation in retrospect. The assessment is described below:

19. Key implementation challenges faced: The project has faced some key challenges as listed below during implementation, which have affected implementation progress.

a) Delayed start : After the Board approval on September 22, 2009, the project became effective on March 23, 2010. Following this, the GoAP gave administrative sanction to the project in May 2010, and a launch workshop was held in June 2010. Only after this, the staff recruitment to various positions was initiated -- which was an 8 month delay.

b) Absence of Project Director : The project did not have Project Director for more than a year from project signing till April 2011. This lack of leadership has affected critical follow-up on key actions and has delayed implementation.

c) Delayed approvals to District Programs : The district programs were to be approved by the District Water Sanitation Mission (DWSM). As the state was facing local agitation (Telangana) in the beginning of the project, these approvals from DWSM’s got delayed.

d) Financial Management System : As per the project design, the project was to follow PAO system of fund flow and payments, wherein all payments shall be routed through the state’s PAO offices. This has affected timely payments to some of the soft-activities such as salary payments to

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consultants/specialists hired in the RWSSD, payments to SHGs and taking up some of the capacity building activities, which require some advance payments which was not possible under the PAO system. This has led to some of the consultants/specialists leaving the department, lack of proper response from the SHGs due to delayed payments, or project’s inability to implement the capacity building activities as planned.

e) Lack of response from the Bidders initially : The first call for tenders went out in June 2011, after staff were in place and the Project Director joined the project. But due to lack of response/non-responsiveness, the qualification criteria was relaxed up to INR 2 Cr (about $0.5m), following which the contracts could be awarded towards March 2012.

20. Measures taken by GoAP under the Project: GoAP has taken the following measures under the project to improve the implementation performance:

a) Project Director : Mobilized a Project Director in April 2011, who is continuing (but is retiring by August 2013).

b) Change of Financial Management System : The state finance department has authorized the Project Director on June 27, 2012 to hold a separate account for payments under Components A and C of the project (non-works components); separate from the state’s PAO system, to enable expeditious payments under these components.

c) Review by the Secretary RWSSD : The Secretary has put in place once in a month review of the Project with all the district Project Managers (Superintending Engineers of the RWSSD) and the Project Director.

21. Measures taken by GoAP outside the Project: GoAP has taken the following measures outside the project that facilitate better implementation and may lead to sustainability of investments.

a) A Government Order (GO) was issued by the state’s Irrigation department in November 2012, relaxing the need for approval for water allotment for drinking water projects (see Annex-11);

b) A GO was issued by the RWSSD in January 2013, to apply SWAp approaches across the sector, in all the districts (see Annex-11);

c) A system was put in place by GoAP for closer monitoring of Externally Aided Projects, by the Chief Secretary of the state, once in a quarter;

d) A system of O&M of Multi-Village Schemes (MVS) through local Operators is in place in Andhra Pradesh for quite some time. As of April 2012, there are 525 MVSs in the state serving about 10000 habitations, covering a population of about 20 million. GoAP has reviewed the functioning of these MVSs through the private operators. After assessing the strengths of the system that already exists for O&M of MVSs through a private trust (Sri Satya Sai trust), GoAP has issued an O&M Policy for MVSs in December 2012, to streamline the system across the state (see Annex-11). Under this policy, separate O&M divisions and sub-divisions are proposed to be created under the RWSSD, to handle O&M issues. The project can support translating the intent of the policy into actions, during the remainder of the project’s implementation period.

VI. Project Costs and Disbursements

22. Review of Project Costs: The mission reviewed the project costs based on: a) the expenditure made and the fund required for completing the committed activities; b) the additional allocations required for specific activities; and c) deletion of specific activities where progress has not been achieved so far, nor which cannot be completed in the remainder of the project. Based on this assessment, the latest project cost assessment, and the IDA Credit required against that is given in Table-5 below.

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Table-5: Project Costs (US$ M)Component PAD Cost Latest Cost1

A) Sector Development 12.0 3.2B) Infrastructure Development 153.5 131.6C) Project Implementation Support 14.5 9.2Total 180.0 144.01 converting latest costs in INR to $ @ INR 55 = 1 US$ as at MTR

23. Cancellation of Excess Credit: After considering the disbursements soon the MTR in June 2013, a balance Credit of US$129.4 M was available under the project. Based on the Credit required in three scenarios of INR maintaining the exchange rate of 55, and INR slightly appreciating as well as depreciating; the likely excess Credit that can be cancelled is shown in Table-6 below. This shows that at least an amount of US$ 25M can be cancelled (based on Scenario-2). This was discussed with GoAP’s finance department during the MTR mission and GoAP is fine with the cancellation of excess Credit, which is not required for project commitments. A decision on this can be made in July 2013, once all funds are committed.

Table-6: Scenario for Cancellation of Excess CreditSl. No

Scenario 1 (INR 51/$)



1 Total Credit required 127.03 117.8 107.92 Already disbursed by June 2013 (without Special

Account of $15M)14.7 14.7 14.7

3 Balance needed – considering procurement commitments till June 2013

112.3 103.1 93.2

4 Balance Credit Available after the MTR 129.4 129.4 129.45 Excess Credit that can be cancelled 17.1 26.3 36.2

24. Expenditure and Disbursements: The projected quarterly expenditure in the next two years is as per Table-7 below. With about $25M cancellation, the disbursements would improve as per row 5 in Table-7 and in Figure-4 below.

Table-7: Expenditure and Disbursement ProjectionsSl.no

Bank FY 2012-13 2013-14 2014-15

Cum. till Mar13*

Mar-Jun13

Totl Q1 Q2 Q3 Q4 Totl Q1 Q2 Total

1 Projected Expenditure INR Cr

103.91 43 147 108 147 136 83 106 104

2 Projected Expenditure US$ M

7.8 19.6 26.7 24.7 15.1 19.3 18.9

3 Projected Disbursement US$ M

6.84 15** 21.8 16.4 22.3 20.6 12.6 71.9 16.1 10.0 26.1

4 Cum. Cr Disbursed % w/o cancellation

4.8 15.2 26.5 42.0 56.3 65.0 76.2 83.1

5 Cum. Cr Disbursed % with $ 25 M cancellation

5.7 18.4 18% 32.1 50.8 68.1 78.7 79% 92.2 100 100%

* Actual values till March 2013** includes disbursements related to expenditure made till March 2013, cleared in the quarter Mar-Jun 13

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Figure-4: Expenditure and Disbursement Projections

till Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-20150.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

Cumulative Disb as % of total available Credit

Cumulative Disb as % of available Credit after $25M cancellation

VII. Institutional, Technical, Fiduciary and Safeguard Issues

25. Institutional: The project has been successful in creating a decentralized structure and in devolving key responsibilities to GPs for single village schemes and these efforts could be useful for statewide. A noteworthy feature is the complete devolution of schemes costing below INR 600,000 to GPWSCs. As the MV-WSCs are now being nurtured for the first time in the state through the project, there is a need to work out clear roles and responsibilities for all the concerned actors viz ZP, MV-WSC, and RWSSD (circle offices) and institutionalize the same. Elections to the local government (PRIs) did not happen for the past two years, and hence the DWSM is not fully functioning. Their role is also played by the District Water Sanitation Committees (DWSCs), for the time being. These elections are likely in July/August 2013, following which a new body of elected representatives will be there at the district and village level, and the composition of GP-WSCs and MV-WSCs may change. There is a need to involve these new local governments and the new committees in the project, going forward.

26. At the same time, various units of RWSSD still play an important and direct role. There are capacity constraints at all levels and need to be addressed immediately by way of hiring Technical Consultants for supervising works, hiring Social Specialists at Division Offices to guide and supervise Mandal Resource Persons (MRPs), creating a better working environment for the MRPs (enhancement of remunerations, commuting and communication facilities etc.), timely release of remunerations and payments to staff and SHGs (including clearing the backlog to them and reorienting the SHGs), enabling team work and also training them for required skills for the remaining part of the project (sanitation and hygiene promotion, O&M of schemes etc.). Further details are in Annex-4.

27. M&E systems: There are two different M&E systems in the project. The Water Software of RWSSD, which is used state wide, is used to monitor progress of implementation of schemes at district office levels. Besides, the project is also using an independent MIS system, designed and maintained by National Informatics Centre (NIC). This is a static web based system (http://aprwssp.ap.nic.in) where all updates have to be routed through NIC (usually done in one day). The updates are sent by district teams in pre-designed formats and are then manually entered into the state system. The project is planning to upgrade the same to a dynamic system whereby district staff will have access to the site and update the information online. This will be done in the next 4 months (end September 2013). At the same time the

13

http://aprwssp.ap.nic.in/

project is also making efforts to link this system to ‘Water Soft’ system to avoid duplication of data entry. Currently the information is captured through 20 formats (12 for water supply and 8 for sanitation and hygiene aspects). These formats capture information physical and financial progress, trainings, IEC activities. As the village level schemes are entering into O&M phase, there is a need to capture required service delivery information (number of tap connections, water supply days, hours of water supply, regular water quality updates, tariff recovery, use of toilets etc.). Secondly, a need has also been identified for regular monitoring of ‘groundwater sources’ in hotspot areas to ensure their sustainability. Information related to source locations, water table levels and source water quality needs to be periodically monitored and captured in a suitable format. Bank team will work with the project team to develop these formats. In the meantime, the project team could identify mechanisms to collect such information, and ensure veracity of the collected information.

28. Baseline data has been collected in all project villages by the Self Help Groups (SHGs), but only about 15% of the data has been computerized. The project will make efforts to complete computerization of the baseline survey information and cull out key information in brief reports. This task could be outsourced to qualified individuals, as required.

29. Governance and Accountability: The Governance and Accountability (GAC) framework has been reviewed from the perspective of what has been committed under the Project Appraisal Document (PAD). The status is highlighted in Table-8 below, with details given in Appendix 4.4.

Table-8: Status of Governance and AccountabilitySl.No

GAC Action area Status

1 RWSS district programs supporting decentralized service delivery systems

A Government Order to adopt SWAp principles across the state is given by GoAP. Annual Plans are made under these principles.

2 Well-defined roles and responsibilities for scheme planning, design, implementation, and maintenance

The roles and responsibilities of all the offices of RWSSD and committees at all levels are well defined and implemented. There is a need to work out clear roles and responsibilities for all the concerned actors who are involved in MVS implementation viz ZP, MV-WSC and RWSSD (circle offices) and promote the same. The role and function of MV-WSCs, particularly regarding signing off payments and O&M of the scheme is not yet fully thought through. This shall be taken up as the MVSs are rolled out.

3 Independent construction quality surveillance

The consultant hiring is about to complete

4 Social audits and civil society oversight Social audits are yet to be done. The modalities of these audits during and post-construction, and during service delivery; have been agreed during the mission.

5 Grievance redressal measures, A grievance redressal mechanism was operationalized from August 15, 2012; which need to be publicized to the project stakeholders and strengthened with a complaint redressal mechanism.

6 Beneficiary assessments through household surveys,

As not many schemes are completed, this was not taken up so far. It was agreed that this assessment be now carried out for schemes that are delivering water for about 6 months or more.

7 Technical and financial audits, Technical audit is part of #3 above, and Financial audits are happening under the project.

8 Procurement processes and systems, A procurement MIS and complaint handling system needs to be developed. This shall make available all the contract information online with a provision for updating the same from time to time for contract management purposes.

14

9 Sector Information System (SIS) and the Monitoring and Evaluation (M&E) System,

Baseline information collected, which is being computerized. The project’s M&E is developed; it needs to be strengthened to capture service delivery information.

10 Public disclosure of project reports and documents.

All the project related information is disclosed on the project’s website http://aprwssp.ap.nic.in which is publicly accessible.

30. Technical Issues: The mission visited the filed, reviewed the status and quality of preparation, assessed the translation of design aspects into implementation, reviewed O&M aspects, sustainability and water quality management issues, assessed the progress of implementation and risks to implementation. Based on this, suggestions are made and agreements reached with the project teams. The key points are listed below, and the details are in Annex-5.

31. Both in the SVSs and MVSs, some key operational control units are to be provided for better management of the schemes such as Bulk flow meters, pressure regulating measures, disinfection arrangements, 100% house connections etc. Particularly the large MVSs may need provision of SCADA. The existing distribution systems need to be rehabilitated for efficient service provision, else the existing leaking pipes and connections may affect service performance. Water quality of the sources, particularly for SVSs which depend on the ground water shall be regularly monitoring and appropriate measures for improvement shall be taken up.

32. Implementation of the MVSs shall be carefully managed to address the risks, and required risk mitigation measures shall be implemented. The O&M intent of the government as reflected in its policy shall be effectively translated into reality, which requires review of performance of some existing arrangements through a O&M performance study, followed by operationalizing the O&M policy of GoAP. The information of the schemes being implemented under the project be maintained in a e-library at RWSSD offices.

33. Procurement Management: The MTR Mission’s deliberations have revealed that in view of the remaining tenure of the project, some of the works such as Solid and Liquid Waste Management, Underground Drainage for mandal headquarters etc., will not be part of the project, and so will not be procured. Based on the discussions held during the mission, the PSU will update the procurement plan and share it with the Bank for comments/clearance. Other key issues are: (i) continuous change of staff creating capacity challenges; (ii) Due diligence required in regard to qualification of bidders being awarded more than one works contract (SVS and MVS) (iii) MIS for making available all the contract information online with a provision for updating the same from time to time for contract management purposes; (iv) Delay in award of contracts; (v) putting in place procurement Grievance Redressal system; and (vi) Payment delays; which need to be addressed.

34. The PSU shall be proactively engaged with DPSU in ensuring consistency in all procurement activities and also in providing handholding support. Regular reviews by the PSU will help in streamlining the actions initiated by the DPSU. Further details are in Annex-6.

35. Financial Management: The mission reviewed the continuing adequacy of the financial management arrangements for the project and the progress made on the action plan agreed during the previous mission. The recent developments and key issues are highlighted below:

36. Fund Flow: The fund flow arrangements for Components A and C has been changed to Personal Deposit (PD) account, from PAO system; and the PSU and DPSUs have opened separate accounts. For efficient operation of these accounts, the mission advised PSU to explore the possibility of a bank account model (parent child account/core banking solution/cloud banking etc.) where the PSU accounts and

15


DPSUs accounts are linked, which is similar to the Letter of Credit (LoC) mechanism (see details in Annex-7).

37. Accounting: The change in fund flow arrangement has necessitated making changes in the accounting records maintained by the project. The project is maintaining separate records (bank book, PAO bill register, PAO reconciliation, bank reconciliation, contract register) for payments made through PD account and payments made through PAO system. The PSU needs to maintain a consolidated contract register for all the contracts under the project.

38. Reporting: The project has been advised to provide with each IUFR a statement bifurcating the expenditure made through PAO and PD account, a statement showing the opening, closing and movement in the bank account balances maintained for operating the funds under PD account and revision in note 1 of the IUFR.

39. Community Contribution: The PSU shall monitor the community contribution for capital and O&M; which shall be maintained in separate bank accounts at GP level.

40. Staffing: A Divisional Accounts Officer has been deputed in the finance function at the PSU but the position of the senior gazette finance officer has remained vacant. The hiring of the staff has been delayed considerably and it was advised that all the vacant positions should be filled immediately by the project.

41. Auditing: Internal auditor hiring process has reached bid evaluation stage and appointment needs to be finalized at the earliest. The accounts finalization and submission to auditors for FY 2012-13 shall be expedited. Based on the mission's discussions with Deputy Auditor General (DAG), expenditure incurred under the project will be audited in entirety by the DAG, provided proper accounts for the transactions made through the PD account are maintained by the project.

42. Disbursements: Disbursements from the World Bank as on May 9, 2013 is USD 21.51 million which represents 14.95% of the credit of USD 150 million and includes balance of USD 14.83 million in the designated advance account.

43. Financial Management rating: Based on the above, project Financial Management is rated as Moderately Satisfactory. A detailed note on Financial Management is given in Annex 7.

44. Environmental Management: The project falls in the environmental assessment category B as per OP 4.01. The project had developed an Environmental Analysis and Environmental Management Framework (EMF), to address environmental risks at various stages of implementation of the project supported schemes. The EMF describes a screening and appraisal process, institutional arrangements, and plans for capacity building and monitoring on environmental management aspects. The mission reviewed the progress on EMF implementation through meetings at the PSU, interactions with district teams as well as field observations in two districts (Mahaboobnagar and Karimnagar) and, review of relevant documents. Overall, while the progress on the EMF implementation has been satisfactory, there is a need for further strengthening with regard to the issues of source sustainability and water quality.

45. Implementation of EMF: Prior-review and post-review of a sample of MVS indicates that environmental appraisal is being undertaken as per the requirements of the EMF. The DSRs of the MVS include the Environmental Data Sheet (EDS), Detailed Environmental Appraisal (DEA) and the Environmental Management Plan (EMP). The identified mitigation measures are included in the bid documents. The mid-term review study (Draft Report, November 2012) undertaken by a consultant firm also confirms that the EDS have been included in the DSRs. The study report also notes that source selection is satisfactory both in terms of sustainability and water quality. An environmental audit for the

16

project has not been undertaken so far. The project MIS needs to capture information on integration of EA into scheme planning.

46. Staffing and Training: The Environment Experts at the PSU and D-PSU are in place. Training on EMF and environmental management aspects has been organized at the state, district and mandal/village levels. A state level training institution (Environment Protection Training and Research Institute – EPTRI) has been identified for organizing state and district level training. However, a MoU with EPTRI is yet to be signed.

47. Source Sustainability: While there is no information available on the failure rate of bore wells after drilling and pump installation, this is likely to be significant. As the existing mechanism for identification of source sustainability structures (with technical feasibility assessment by the APSRAC (state remote sensing agency)) involves significant time-lag and in some cases a mismatch with the field findings, there is a need for an additional plan of action focusing on point recharge measures. An integrated water resource plan is being developed by the PSU for one district – Karimnagar. However, there is a need to strengthen it integrating information from the Ground Water Department.

48. Water Quality: Water quality testing of all scheme sources is reportedly being undertaken and the water quality reports are included in the DSRs. However, there is a need for identifying a clear course of action in cases where the parameters are close to or have exceeded permissible levels.

49. Social Development, Capacity Building, Tribal Development: The project’s strategy to reach the people is premised on Community Driven Development approach with particular emphasis on Decentralization. Communities are mobilized into group action through a Water and Sanitation Committees (WSC) both for the SVS and MVSs. These GP-WSCs are subcommittees of GPs – giving them legitimacy. The committees are supported by local Self-Help Groups (SHGs). Facilitation and support is provided by PSUs and DPSUs. These arrangements have been successful in implementing project’s social development and community driven development strategy.

50. While community participation is small SVS (costing <INR 600000) has been quite good, for regular SVS (costing >INR 600,000) and MVSs, there were challenges: (a) the local elections to PRIs are happening in July/August 2013. This would change the political composition of GPs and hence the committees; (b) the committees for MVSs are just forming, which need to be nurtured and empowered; (c) there are capacity issues at the districts in supporting the community, as there is only one social expert present now, whose main responsibility is to undertake community related activities. Some of the important activities that are still to be taken up through community participation are: completion of schemes; social audits and sustainability assessments; O&M planning and budgeting; tariff planning and collection etc. It is therefore important to build the capacity of the districts and reorient the PRIs/GPWSCs, based on the strategies agreed with the mission: (i) hire Technical Consultants at the districts; (ii) reorient Mandal and District Resource persons to utilize their strength; and (iii) clearing off the back logs of payments to SHGs, reorienting and building their capacity through an external support agency etc.

51. Overall, implementation of the Tribal Development plan is progressing well, in extending the water and sanitation services to both scheduled and non-scheduled areas. While IEC strategy is being implemented across all the districts, there is a need to develop an appropriate strategy for the remaining part of the project activities, addressing issues related to: stage of projects in each Mandal/ district, messages to be communicated for the given stage of projects, target group and most appropriate means for communicating messages. PSU could hire services of a Communications Expert in identifying IEC needs and developing an appropriate strategy.

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VIII. Key Actions

52. The agreed key actions are as listed in Table-9 on the next page. Other detailed agreed actions are in Annex-2:

Table-9: Agreed Key Actions

Sl.No Action Responsibility Target

1 Complete restructuring of the project including cancellation of unused funds, and revise the expenditure and disbursement projections

DEA/GoAP/WB August 31

…. as part of the above:1.a Refine the project indicators, as per Annex-1, provide complete

baseline informationPSU/WB August 31

1.b Refocus on sanitation for full coverage in poor (SC/ST) habitations. Prepare implementation strategy thro’ incentive mechanism, and finalize targets

PSU July 31

2 Implement risk mitigation measures (Annex-3) to address implementation risks

GoAP August 31

…. as part of the above:2.a Hire required number of field staffing (technical consultants) to

support Junior Engineers, and fill the vacancies of Junior EngineersPSU/DPSUs August 31

2.b Review remuneration and working conditions of contract staff, MRPs and make improvements as needed (including remuneration levels, regular payments, workload distribution, performance monitoring, grievance redressal of staff, vehicles required for field visits, etc.)

GoAP July 31

2.c Establish a contract Monitoring system at the PSUs and DPSUs- Have a Technical Committee at the PSU, who will regularly

monitor and visit the field monthly two districts. This committee shall get comprehensive Contract Management Plans prepared for each contract, review progress with respect to the Plans, monitor payments to contractors, community involvement, quality issues, clearances, mile stone achievement, contract closure etc.

PSU/DPSUs July 31

3 Improve M&E system – to capture revised indicators including service level indicators and ground water monitoring- to make it dynamic – where DPSUs can update in real time- establish linkage with Water-soft - integrate with grievance and complaint redressal system- capture information on procurement, FM, environmental management and social audits

PSU September 30

4 Operationalize the O&M strategy of GoAP- undertake a workshop, brainstorm, develop action plan- Complete implementation

PSU By Jan 2014By Mar 2014

18

Annex-1: Project IndicatorsNote: These indicators are based on Bank’s Internal Status Report. As part of restructuring a final set of indicators will be agreed.DO Indicators

Sl.No

Indicator Core?2 Unit of measure

Value Date Comments on Indicators/ values

Review / revision required

1 People (number) in project areas with access/use to adequate piped water supply throughout the year.

N Number

Baseline 0 23/3/10 Project villages are selected where adequate access is low. Hence baseline is “0”

Actual (prev) 30/11/12 At the time of last update, very small numbers of SVSs were completed.

Actual (current)

191468 17/5/13 At the end of the mission 359 SVS (large) with piped water supply have been completed. Information on population covered is obtained from the PSU.

To list out the beneficiaries from piped water supply from all SVS (Large, Small, Augmentation) and MVS

Target 2.15 million 30/11/14 The estimated target by the end of the project

To confirm the target, after final decision on cancellation is made; considering only the estimated number of completed schemes by project end when estimating the number of people

2 People (number) in project areas adopting improved hygiene and sanitation practices.

N Number Decision to be made on retaining or dropping this indicator, based on practicality and feasibility of measurement.

Baseline 0 23/3/10Actual (prev) 30/11/12

Actual (current)

17/5/13

Target 1.08 million 30/11/14 Original target set to be achieved by the end of the project

3 Improvements in cost recovery (%): N %(i) contribution to capital cost; Baseline 0 23/3/10

Actual (prev) 30/11/12

2 Whether this is a Core global Indicator measured by the World Bank across its projects?

19

Sl.No

Indicator Core? Unit of measure



Actual (current)

17% 17/5/13

Target 100% 30/11/14 This target is proposed to be revised as 90% recovery of capital cost contribution due from community;

(ii) contributions to O&M cost; Baseline 0 23/3/10 The indicator is proposed to be revised as “Contributions to O&M cost through community contribution and government subsidies/grants”

Actual (prev) 30/11/12Actual

(current)Not measured as the schemes have just completed

17/5/13 To start measuring this henceforth

Target 70% 30/11/14 Target is proposed to be retained at 70% level, as community keeps paying the backlog whenever they have cash in hand. So at all times, across all schemes, at least 70% recovery shall be there in aggregate.

(iii) collection efficiency. (Percentage) Baseline 0 23/3/10 This is proposed to be revised as “Average Collection Efficiency”, i.e., the average across the completed schemes which are in O&M phase at least for six months.

Actual (prev) 30/11/12Actual

(current)Not measured as the schemes have just completed

17/5/13

Target 70% 30/11/144 Number of people in rural areas

provided with access to Improved Water Sources under the project (Number)

N Number This is proposed to be deleted as it is similar to indicator #6 below, which is a Core indicator, included based on Bank’s OPCS advice in December 2012

20

Sl.No




5 People (number) in project areas with access/use to improved water supply services.(Number)

N Number This is proposed to be deleted as it is similar to indicator #6 below, which is a Core indicator, included based on Bank’s OPCS advice in December 2012

6 Number of people in rural areas provided with access to Improved Water Sources under the project

Y Number


Actual (current)

808841 17/5/13 As per the status update by PSU at MTR on completion of 872 schemes – both new SVS and augmentation SVS.

Target TBD 30/11/14 This is the total number of people benefited through improved water supply – either through piped water supply (i.e.indicator 1), or point sources.

To be confirmed, considering only the estimated number of completed schemes by project end when estimating the number of people

Intermediate Results Indicators

Sl.No

Indicator Core?3 Unit of measure



1 Number of water utilities that the project is supporting

Y Number This is proposed to be deleted as there are no water utilities being supported under the project.

2 Number of other water service providers that the project is supporting

Y Number The water service providers here would include GP-WSCs and also Operators for MVS.


Actual (current) 17/5/13Target 2600 30/11/14 The target will be reviewed based on

the amount of cancellations finally decided and the final number of schemes that can be completed.

3 Whether this is a Core global Indicator measured by the World Bank across its projects?

21

Sl.No




3 Improved community water points constructed or rehabilitated under the project

Y Number This is proposed to be deleted as there are no community water points being supported under the project.

4 New piped household water connections that are resulting from the project intervention

Y Number


Actual (current) 17/5/13 Latest Information to be collectedTarget 210000 30/11/14 Target to be reviewed and confirmed

based on the projection of completed schemes at the end of the project.

5 Piped household water connections that are benefiting from rehabilitation works undertaken by the project

Y Number


Actual (current) 17/5/13 Latest Information to be collectedTarget 19000 30/11/14 Target to be reviewed and confirmed

6 % of MVSs N %(i) constructed in participation with

ZPs; Baseline 0 23/3/10

Actual (prev) 30/11/12Actual (current) Work in

progress17/5/13 To be updated as the work

completesTarget 100% 30/11/14 Target may change based on the $

cancellations from the project(ii) % MVS managed by ZPs, as against

the total targetBaseline 0 23/3/10

Actual (prev) 30/11/12Actual (current) Work in

progress17/5/13 To be updated as the work

completesTarget 100% 30/11/14 Target may change based on the $

cancellations from the project7 i) % participating GPs meeting the full

O&M costs through user charges; (ii) % participating GPs contributing towards O&M costs through user charges. (Percentage)

N % This is proposed to be deleted as cost recovery aspect is covered under the main PDO indicator #3

8 % households having access to safe N % The target will be redefined as the

22

Sl.No




sanitary latrines.(Percentage) households in the poor (SC/ST) habitations.

Baseline 40% 23/3/10 To compile baseline information

Actual (prev) 30/11/12Actual (current) 17/5/13

Target 90% 30/11/14 To assess the realistic target The target will be changed now after assessments. As per the revised scope proposed at MTR. Sanitation will cover only for the households in the poor habitations (SC/ST).

9 Improved latrines constructed under the project

Y Number

Baseline 23/3/10 To compile baseline information

The baseline will be changed now after assessments. As per the revised scope proposed at MTR. Sanitation will cover only for the households in the poor habitations (SC/ST).

Actual (prev) 30/11/12Actual (current) 17/5/13

Target 30/11/14 To assess the realistic target The target will also be changed accordingly

10 % SVSs constructed in participation with GPs against the total target.(Percentage)

N Percentage


Actual (current) 17/5/13 To update the informationTarget 100% 30/11/14

11 People trained to improve hygiene behavior/sanitation practices under the project

Y Number


Actual (current) 17/5/13 To update this informationTarget TBD 30/11/14 To assess and set this target

12 People trained to improve hygiene behavior/sanitation practices under the project - female

Y Number


23

Sl.No




Actual (current) 17/5/13 To update this informationTarget TBD 30/11/14 To assess and set this target

24

Annex-2: List of all Agreed Actions

The Table below presents a list of all agreed actions during the MTR mission for the project. Actions with ‘*’ are key actions.

Sl.No Action Responsibility Target

Overall Project Implementation1* Complete restructuring of the project including cancellation of

unused funds, and revise the expenditure and disbursement projections

DEA/GoAP/WB Aug 31

Component A: Capacity and Sector Development2 Prepare a comprehensive IEC and capacity building strategy to focus

more on: the stage of the project in each Mandal/district, messages to be communicated, target group and most appropriate means (can hire a communication expert)

PSU Aug 31

3 Orient, involve and build the capacity of new local governments formed after the local elections and the new bodies of GP-WSCs and MV-WSCs

PSU/DPSUs By Dec 31

4 Prepare a Training plan for staff for the required skills for the remaining part of the project (sanitation and hygiene promotion, O&M of schemes etc.)

5 Launch the following studies (can consider appropriate local organization): O&M performance study of the existing MVS schemes under

O&M; and development of appropriate service management contracts for MVSs

Technical feasibility study for point recharge structures for ground water sources

Strengthening of M&E systems to cover outputs, service delivery outcomes, project indicators, information collection and quality control mechanisms

Revised IEC strategy for the project Revised Training strategy for the project

PSU By Sep 30

6 Redesign the District Awards incentive to reward poor (SC/ST) habitations, for sanitation achievements

Component B: Infrastructure Development7* Implement risk mitigation measures for MVS implementation GoAP Aug 318* Prepare comprehensive Contract Management Plans for each of the

MVSsPSU and DPSUs Jul 31

9 Closely monitor implementation (particularly MVS), addressing risks as identified during the mission, including measuring outcomes

PSU Ongoing

10* Operationalize the O&M strategies of the GoAP, to support schemes built under the project- Develop action plan- Implement the plan

PSUGoAP

Sep 30Dec 31

11 Ensure completion of SVSs in all respects: vertical valves, cholorination, bulk flow meters, construction of platform and fencing of facilities etc.

PSU/DPSUs Ongoing

12 Ensure proper contract closure and follow-up audits:- Trial-run and joint inspection

25

- O&M planning and budgeting including identifying and training personnel, fixation of tariff

- water supply is ensured for all households and the operator selected by GPWSC is trained to operate and maintain the system,

- Establishing Help Line including arrangements to address defect liability.

- Proper contract closure, including financial closure, documentation (as completed plans shall be prepared and both soft and hard copies of SVS and in-village system plans of MVS will be provided to the GP)

- verification of service levels, social and sustainability audits13* Refocus on sanitation for full coverage in poor (SC/ST) habitations.

- Prepare implementation strategy through incentive mechanism and finalize targets

PSU Jul 31

Component C: Project Implementation Support14* Hire required number of field staffing (technical consultants) to

support Junior Engineers, and fill the vacancies of Junior EngineersPSU/DPSUs Aug 31

15* Review remuneration and working conditions of contract staff, MRPs and make improvements as needed (including remuneration levels, regular payments, workload distribution, performance monitoring, grievance redressal of staff, vehicles required for field visits, etc.)

GoAP Jul 31

16 Review adequacy of only one Social expert, who is handling all social related activities – IEC, Capacity building and also sanitation related activities. Develop a plan for hiring additional contract staff as required; to handle social and sanitation separately.

- Hire required number of additional staff- Orient Social specialists on Water and Sanitation, through

an external agency, as the specialists have come from non-watsan background

PSU Jul 31

Sep 30Oct 31

17 Clear-off the backlog in payments to SHGs, and establish a system for timely release of payments to SHGs and MRPs from the PD account

PSU/DPSUs Aug 31

18* Improve M&E system – to capture revised indicators including service level indicators and ground water monitoring - to make it dynamic – where DPSUs can update in real time- establish linkage with Water-soft - integrate with grievance and complaint redressal system- capture information on procurement, FM, environmental management and social audits

PSU Sep 30

19 Complete computerization of baseline information and cull out key information in brief reports

PSU Aug 31

20 Create MVS-WSCs, orient them, clarify their roles and build their capacity through structured interventions

DPSUs Ongoing

21 Work out clear roles and responsibilities for all the concerned actors who are involved in MVS implementation viz ZP, MV-WSC and RWSSD (circle offices) and promote the same.

PSU By Dec 31

22 Launch social audits as per the modalities agreed during the mission (see Appendix-4.4)

PSU/DPSUs Sep 30

23 Publicize the Grievance Redressal mechanism to the project stakeholders and strengthen it with a complaint redressal mechanism.

PSU Sep 30

24 Initiate Beneficiary assessment in the completed schemes PSU/DPSUs Aug 31Specific Issues

Technical

26

25 Review all SVSs, inspect during supply hours, identify missing components such as listed below, and provide them including undertaking all required rehabilitation measures to reduce leakages.

Bulk flow meters at inlets to ESRs; Disinfection arrangements, including choloroscope; Pressure control arrangements; 100% house connections and saddle pieces; replace leaking pipes and connections; fencing around sources; and solar power for small capacity pumps where power is

unreliable / in remote habitations.26 Review MVSs and estimate the cost of key operational control units

such as bulk flow meters, pressure regulating measures, disinfection arrangements, Butterfly valves for control and separate feeder mains, 100% house connections etc. For large MVSs, estimate the requirement for SCADA

- provide for these measures in the completed and under construction schemes

PSUs/DPSUs

PSU/DPSUs

Aug 31

Ongoing

27 Maintain the information related to the schemes in an e-library PSU/DPSUs Dec 31Procurement Management

28 Follow due diligence in regard to qualification of bidders being awarded more than one works contract (SVS and MVS); undertake regular reviews of procurement done by the DPSUs

PSU Ongoing

29 Develop a procurement MIS and complaint handling system with all the contract information and a provision for updating the same from time to time for contract management purposes.

PSU Nov 30

30 Update the procurement plan and share with the Bank for comments / clearance

PSU Jul 31

31 Provide comments on the Post Procurement Review report PSU Jul 3132 Avoid frequent changes of procurement staff PSU Ongoing

Financial Management33 For PD Account - explore the possibility of a bank account model

(parent child account/core banking solution/cloud banking etc.) where the PSU accounts and DPSUs accounts can be linked

PSU Sep 30

34 Maintain a consolidated contract register for all the contracts under the project.

PSU Sep 30

35 Provide additional statements (expenditure bifurcation, bank movement, change in note) with each IUFR for expenditure made through PD account

PSU Ongoing

36 Monitor the community contribution for capital and O&M; which shall be maintained in separate bank accounts at GP level.

- Issue instructions to DPSUs and GPs

PSU Ongoing

Sep 3037 Fill up all vacant FM positions at the districts PSU Aug 3138 Finalize accounts for 2012-13 and submit for CAG audit PSU Jul 3139 Appoint Internal Auditors for the project PSU Jul 31

Environmental Management40 Capture information on integration of environmental appraisal into

scheme planning in the project MISPSU Sep 30

41 Sign MoU with EPTRI (or another suitable training institution) for providing training on environmental management aspects, organize exposure visit of D-PSU Environment Experts to Mahaboobnagar

PSU Aug 31

42 Develop detailed action plan for point recharge structures for PSU Aug 31

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prioritized sources43 Compile database of water quality test reports of all schemes and

develop remedial action plan for sources where the parameters are close to or have exceeded permissible levels

PSU Aug 31

44 Develop a system for communicating the test results to the GP-WSCs/community and maintenance of records of the test reports in the GPs needs strengthening.

PSU Sep 30

45 Monitor ground water situation as part of project M&E, with due linkages to ground water department activities

PSU Ongoing

Social Management46 Decide on strategies for formation of Scheme Level Committees for

MVSs - with or without the existing village representation.PSU/DPSUs Aug 31

47 Prepare plans to better utilize the MRPs and DRPs for implementation support to GPWSCs in both water supply and sanitation activities.

- Redefine the ToR- Build capacity through mentoring and supervision- Review payments and allowances

PSUs/DPSUs Oct 31

48 Build the skills and capacity of SHGs for the management of Watsan activities; in particular that of community operation and maintenance of water supply projects and behavior change communication skills.

PSUs/DPSUs Oct 31

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Annex-3: Implementation Risks and Mitigation Measures for MVSs

Phase Key Measures TargetPlanning & Design

For the extension of existing MVS schemes Review functioning of existing + new habitations together;o Provide operational control measures (Bulk Flow meters,

Pressure Regulating valves, Butterfly valves, separate feeder mains, disinfection, chloroscope etc.), to be able to better supply to existing villages on par with the new villages

o Ensure >40 lpcd, after reviewing coverage of habitations under the MVS

o Capture all control measures required in the Contracts awarded/going to be awarded

o Inspect the points of drawal of water for the proposed extension of MVS, and explore whether it interferes with supplies to existing habitations; and include appropriate technical measures (control measures as above) to ensure uninterrupted supplies to existing habitations;

Plan appropriate institutional measures (scheme level committee (MVSC) and GPWSC) for each such scheme;o Develop a status note from institutional perspective for each

scheme, identify what is required to be done

Jul 31

Provide for saddle pieces and house connections on the entire distribution pipes (existing + new) in the habitations and include them in the contracts (subject to agreement in the MTR mission)

Ongoing

For the new Schemeso Provide operational control measures (Bulk Flow meters,

Pressure Regulating valves, Butterfly valves, separate feeder mains etc.)

o Ensure minimum 55 lpcd, after reviewing coverage of habitations under the MVS

o Capture all control measures required in the Contracts

Ongoing

For both the above, hire a consultant or other method, to help the DPSUs form the MVS

Jul 31

Procurement Undertake no more bid invitations / rebids Complete Procurement and ground all the MVS by June 30

(prepare a backward planning for all schemes, including requirement for necessary clearances etc.)

Ensure that all bid clearance /BER clearance requests that come to Bank from PSU office are thoroughly checked at PSU level for inconsistencies

Jun 30

Implementation

STAFFING

Hire Individual Technical Consultants as field staff, to supplement existing Engineering staff in the departmento Review remuneration package, increment process, payment

mechanism and decide on policy

Hire Consultants – Aug 31Policy decision –

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Jul 31 Ensure appropriate working conditions for the consultants in the

DPSU and PSUo Review remuneration package, increment process, payment

mechanism and decide on policy

Policy by Jul 31

Hire additional Mandal Resource Persons and DRPso Organize workshop, identify issues (Bank team will involve)

o Review remuneration package, increment process, payment mechanism and decide on policy

Hire MRPs – Aug 31Policy decision – Jul 31

Revamp the SHG’s involvement

o Review their backlog payments, and clear all backlogs

o develop an IEC strategy regarding their roles and streamlined payment mechanism through PD account, initiate IEC strategy

By Aug 31

By Aug 31

Develop ToRs, their work monitoring format, training and orientation programs for them

Establish a monitoring mechanism to monitor working of SHG’s, MRPs and Technical Consultants, and to resolve issues, supported by Grievance Redress Mechanism

By Aug 15

CONTRACT MANAGEMENT Develop detailed Contract Management Plans for all the MVS,

satisfactory to the BankJul 31

Establish a contract Monitoring system at the PSUs and DPSUso Technical Committee at the PSU, who will regularly monitor

and visit the field monthly two districts. This committee shall review progress with respect to Contract Management Plans, payments to contractors, community involvement, quality issues, clearances, mile stone achievement, contract closure etc.

Jul 31

O&M Review exiting O&M contracts under CPWS schemes (through

workshop of O&M operators), identify issues and take policy decisions to resolve

Aug 31

Bring all existing and new habitations under the MVS into the same operator, after the completion of the contract under the Project

As the schemes complete

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Annex 4: Institutional Arrangements

The project aims to support progressive decentralization and devolution to PRIs, with increased community participation, financial sustainability and enhanced accountability at all levels. Accordingly a decentralized institutional mechanism has been developed, with a clear roles and responsibilities for the Rural Water Supply and Sanitation Department (RWSSD) units at different levels, GPs and community institutions (mainly SHGs). The RWSSD is responsible for overall management of the project. This department was created in 2008, separating from another department Panchayati Raj (PR) and splitting staff of the PR department. Since the beginning, the RWSSD is found to have limited staff. For the project, there is a dedicated Project Support Unit (PSU) at the state level and District Project Support Units (DPSUs) at district levels created by deputing staff from the department and also hiring professionals from open market for day to day project management. The following is description of the institutional arrangements at various levels for the project.

While efforts are being made to decentralize management of RWSS functions to the PRIs, there is a setback to the same due to delay in elections to PRIs in the state4.

II. State Level

RWSSD, headed by a Secretary, is overall responsible for project management and delivering agreed outputs. RWSSD provides policy support and management related directions. The State Water and Sanitation Mission (SWSM) is active and providing continuous support to the project and other sector programs.

The PSU is responsible for day to day management of the project. PSU is staffed with professionals from RWSSD and also professionals hired from open market. A total of 23 positions have been designed and all the people are in place. There is no need for any new positions at this level. The status of staffing in the PSU is listed in Appendix 4.1.

III. District Level

DWSM/ DWSC

RWSSD formed DWSMs (headed by Chairperson ZP) and DWSCs (headed by district collector) for providing policy guidance and operational support to all the RWSS programs in the district, including the project. However, as elections to PRIs did not happen for the past two years, the DWSM is not fully functioning. Their role is played by the DWSCs, for the time being.

District- Project Support Unit (D-PSU)

This is a newly created unit for the day-to-day management of the project activities in all the districts. DPSUs are responsible for village identification, community mobilization, developing scheme designs (through outsourced agencies), issue contracts, monitor scheme progress and quality, promoting sanitation and hygiene activities. The Superintending Engineer (SE) of Circle Office of the RWSSD holds dual responsibility of managing DPSU and also the circle office and is responsible for both the

4 Elections to rural local governments were due in June 2011 but due to unavoidable reasons the state has not yet conducted elections to all the three tiers of rural local governments. Hence, there are no elected local governments on ground, during the last two years. The state notified local administration officers to act as 'elected heads' till the time elections are conducted . The elections to PRIs are expected to be in July-August 2013 and new elected bodies are expected to be in place by September.

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project activities and other sector activities supported through NRDWP, NBA, NABARD etc. The status of staffing in the PSU is listed in Appendix 4.1.

RWSSD-Circle Office at District Level

The Circle Office at the district level is the key unit for RWSSD to implement all their programs – NRDWP, NBA etc. This office is headed by a Superintending Engineer (SE), who is also the head of the D-PSU, and is designated as the Project Manager at the district level. Each circle office is supported by two to three division offices, headed by an Executive Engineer (EE). The EE is supported by Deputy Executive Engineers. Under the Dy EEs, there are Junior Engineers (JEs) who are responsible for day to day supervision of all the civil works to 100% extent, writing Measurement Book (MBs), preparing bills for works done and liaising with local governments. The Dy EEs and EEs do check measurement of works to a smaller %. As a thumb rule, there is one JE for one Mandal. These cadre of Engineers SEs-EEs-DyEEs-JEs manage both the project civil works as well as other regular RWSSD works. Hence the project is an integral part of the overall institutional framework. While the D-PSU’s have day-to-day management and monitoring role, the Engineering staff have the role of managing the implementation.

Sanitation Program Implementation: While RWSSD has good capacity to implement the Water Supply Schemes, there is limited capacity to implement sanitation program. The Government of India’s sanitation program Nirmal Bharat Abhiyan (NBA) finances almost 50% of the cost of toilets, and the rest is to be borne by the states. As per the NBA guidelines (2012) the states portion can be met from the other National Program Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), which is primarily handled by the Rural Development Department (RD Dept.) in the state. In August 2012, the state has taken a decision to implement the toilets by fully taking advantages of MGNREGS funds and accordingly issued a Govt. Order (G.O.Ms.No.250, Dt.27.07.2012) (see Appendix 4.4).

This Govt. Order (GO) made both RWSSD Dept, and Rural development Dept. responsible for implementing the sanitation program. As per the above GO the total cost of a toilet is Rs.10, 000 is shared as below:

Funding Share in Toilet Cost as per NBA program GuidelinesShare Amount (INR)

NBA funds 4600

Central share 3200

State Share 1400

MNREGS (as part of national convergence approach) 4500

Beneficiary 900

Total 10000

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The roles of various departments in implementing the sanitation program are given in the following table.

Roles of various departments in implementing Sanitation programDepartment Role and Function

RWSSD Nodal department for NBA in receiving Central Grants and reporting to GoI.

Responsible for technical aspects Mobilization of community through field staff and Mandal

Resource Persons (MRPs) -- taking support from SERP

RD Department Overseeing use of MGNREGS funds in sanitation program

Society for Elimination of Rural Poverty (SERP)

Support RWSSD in undertaking IEC campaign to activate the SHGs, through Mandal Resource Persons, and District Resource Persons

There is one Senior Officer (Project Director, SWSM) in the cadre of Chief Engineer for management of sanitation program within RWSSD. The Project Director, SWSM transfers the amount of NBA share to the District Project Directors as per the requirement from time to time. The women SHGs of the identified villages will do the baseline survey and assist the GP in identifying the eligible and willing beneficiaries. CEO, Society for SERP will undertake an IEC campaign to activate the SHGs for this purpose. RWSSD has also recently hired District Resource Persons and also Mandal Resource Persons (MRPs), one person per Mandal under the NBA program to promote sanitation and hygiene activities.

As can be seen, due to the long and circuitous route to sanitation outcomes, the achievements so far have been limited.

IV. Village Level

The project classified all water supply schemes into four types; (i) Single Village Schemes, those costing more than INR 600,000, and (ii) Small Single Village Schemes (SSVS), costing below INR 600,000, and (iii) Single Village Augmentation works; and (iv) Multi-Village Schemes (MVS). Village level institutional mechanism is same as SVS and SSVS. Following is an analysis of the above arrangement with suggested steps to strengthen the same.

SVS (Above INR 600,000): At the village, the GPWSC (Gram Panchayat Water and Sanitation Committee) which is a sub-committee of the Gram Panchayat (GP) is the key institution. The role of GPWSC is to encourage community participation, liaise with division office and Mandal Development office as required, approve plans, sign off payments to contracts, supervise/manage all the Community Contract works (costing below INR 600,000), be responsible for O&M (fixing user charges, recovering the same, appointing an operator, overseeing regular chlorination and maintenance and undertaking minor repairs). As of date 100% GPWSCs (2081) have been formed and active in the project villages.

SSVS (Below INR 600,000): For schemes costing below INR 600,000 the project followed Community Contracting system where in the GPWSC will itself manage project execution. In all such cases GPWSCs are responsible for material procurement, procurement of labor contracts and executing the works. It is heartening to note such works also included the cost of providing taps up to

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door step in some cases. This is working well and resulted in higher level of service delivery and ownership of the infrastructure.

MVS: For multi-village schemes, for which implementation is mostly beginning now, attempts are being made to form a Multi Village Water and Sanitation Committee (MV-WSC) with representatives from all covered GP-WSCs. While the respective GP-WSCs will mobilize communities and encourage community contributions, the MV-WSC is designed to look after conflict resolutions, quality check of works, monitor overall bulk equitable water supply. However, their role regarding signing off payments and O&M of the scheme is not yet fully thought through, particularly when the MVSs are extension schemes of existing MVSs. Once a MVS is complete, it is deemed to be the property of ZP and ZP can decide on the O&M arrangements. As the MV-WSCs are now being nurtured (first time in the state through the project) there is a need to work out clear roles and responsibilities for all the concerned actors viz ZP, MV-WSC and RWSSD (circle offices) and promote the same.

SHGs: As per the overall philosophy of GoAP the local SHGs have been roped into the project as Support Organizations. Their role is to conduct baseline surveys, community mobilization and collection of ‘community contributions’. The community contribution is a fixed amount per household i.e. INR 250 for Below Poverty Line (BPL) families and INR 500 for Above Poverty Line (APL) families. A total of 2370 SHGs have been contracted as SOs in project villages. While this is a good arrangement, there is a need to strengthen the capacity of SHGs to play these roles and streamline systems to make payments to SHGs in time. It was noticed that payments to SHGs have been delayed and this led to loss of interest amongst SHGs to actively participate in the project activities.

GP-WSCs: GoAP is now in the process of conducting elections to GPs and it is expected that new GP elected representatives will be in place by September 2013 and will lead to reorganization of the existing GPWSCs. Hence special efforts should be made to orient and train all the new PRI bodies, GPWSCs in project villages and bring them on board by December 2013.

V. Training and Capacity Building

The project has organized a number of workshops and conferences to orient the project teams at the state and district levels, as shown in Appendix 4.3. However, going forward, the teams need specific focus on issues of importance.

VI. Key Issues and Actions

There are a few issues that hinder performance of the institutions both for the water and sanitation programs as listed below. The MTR mission discussed these issues with the RWSSD and agreed on the actions to be taken.

1. Vacancies: There is a high level of vacancies at JE levels (more than 50%) (see Appendix 4.2) and this adversely impacts timely progress of civil works in the project. Hence, it was agreed that ‘Technical Consultants’ will be hired at the district level to supervise civil works and support JEs. PSU will estimate the exact need in each district and will empower the SEs to hire qualified professionals and place them on the project sites. The project funds will be used for providing honorarium and other allowances for these consultants. Similarly, at the district level, only one social specialist is managing IEC, social development activities and sanitation aspects.

2. MRPs: Though RWSSD appointed MRPs for promotion of NBA activities, it was reported that these people are paid low honorarium (about INR 2000-2500) and hence do not show willingness to work.

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Secondly, such a huge workforce (about 50 to 60 people in each district) is limited to only sanitation related activities. It was agreed that project will support RWSSD is enhancing the honorarium of the MRPs and also use them to provide support to water supply and sanitation related activities in project villages. After fixing the revised honorarium, the PSU will also refine TOR for these people and orient/ train them to undertake revised roles. It was also agreed that these people will be pooled into teams of three to five members and work as a team, rather than as one individual. This arrangement, while being useful for project in short run, will also be useful for RWSSD for effectively promoting RWSS sector activities, on a long term. Such an arrangement also is in line with the GoI (MDWS) guidelines for establishing Block Resource Centers.

3. Staff working conditions at districts and training: The working conditions of staff at the district level in terms of regular payments to them, remuneration levels etc. need improvement as during the field visits, there were some complaints received with respect to regular remuneration payments. Also, these payments need regular review to make it attractive to retain staff. The DPSUs also need vehicles for movement in the field for inspection. The staff also need focused training on specific issues of importance going forward – sanitation and hygiene promotion, O&M issues, team work etc.

4. Higher service levels in SSVS: The SSVSs have demonstrated higher service levels through house connections to all households. Efforts shall be made to continue and promote similar outcomes in all SSVS.

5. MVS and MV-WSCs: There is a need to work out clear roles and responsibilities for all the concerned actors who are involved in MVS implementation viz ZP, MV-WSC and RWSSD (circle offices) and promote the same. The role and function of MV-WSCs, particularly regarding signing off payments and O&M of the scheme is not yet fully thought through. This shall be taken up as the MVSs are rolled out.

6. SHGs: Strengthen the capacity of SHGs to play these roles and streamline systems to make payments to SHGs in time and release all backlog payments.

7. GP-WSCs: Orient and train the new GP-WSCs as soon as they are formed after the PRI elections.

8. Sanitation Program: The sanitation program has not picked up so far due to the numerous institutions involved. Therefore, it is decided to focus now more on poor habitations (SC/ST), and promote 100% access to habitations there, through direct involvement of RWSSD. The project can finance the INR 4500 against the MNREGS funding.

VII. Summary

In summary, the project has been successful in creating a decentralized structure and devolve key responsibilities to GPs for single village schemes and these efforts could be useful for statewide. A noteworthy feature is the complete devolution of schemes costing below INR 6 lakhs to GPWSCs. As the MV-WSCs are now being nurtured (first time in the state through the project) there is a need to work out clear roles and responsibilities for all the concerned actors viz ZP, MV-WSC, and RWSSD (circle offices) and promote the same. At the same time, various units of RWSSD still play an important and direct role. There are capacity constraints at all levels and need to be addressed immediately by way of hiring Technical Consultants for supervising works, hiring Social Specialists at Circle Offices to guide and supervise MRPs, creating a better working environment for the MRPs (enhancement of remunerations, commuting and communication facilities etc.), timely release of remunerations and payments to staff and SHGs, enabling team work and also training them for required skills for the remaining part of the project (sanitation and hygiene promotion, O&M of schemes etc.).

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Appendix 4. 1 Status of staffing in the project units – PSUs and DPSUs

Adilabad KarimnagarMahabubna

gar PrakasamVisakhapatn

am YSR Kadapa TotalWorking on

FACTotal

WorkingStaff on deputation

Project Director, PSU (CE Cadre) 1 1 1 1 1 0Deputy Project Director, PSU (SE Cadre) 1 1 1 1 1 0Engineering Specialist (EE Cadre) 1 1 1 1 1 0Financial Expert (DAO Cadre) 1 1 1 6 0 0 0 0 1 0 1 1 2 7 3 4Assistant Project Director (DEE Cadre) 2 2 2 6 0 1 1 1 1 1 5 1 6 8 8 0Managers - Technical (AEE Cadre) 6 6 0 6 18 1 3 1 3 1 2 11 7 18 24 24 0Procurement Specialist (EE Cadre) 6 0 1 1 1 1 1 5 1 6 6 6 0

Total on Deputation :- 12 12 0 12 36 1 5 3 5 4 4 22 10 32 48 44 4Staff on Outsourcing

Procurement Specialist 1 1 1 1 1 0Social Expert 1 1 1 6 1 1 1 1 1 1 6 6 7 7 0Environmental Expert 1 1 1 6 1 1 1 1 1 1 6 6 7 7 0M & E Specialist 1 1 1 6 1 1 1 1 1 1 6 6 7 7 0Accountants 2 2 2 12 2 2 2 2 2 2 12 0 12 14 14 0Computer Operators 2 2 2 12 2 2 2 2 2 2 12 12 14 14 0Office Subordinates & Drivers 3 3 3 12 2 2 2 2 2 2 12 12 15 15 0Engineering Specialist 6 0 0 1 0 0 0 1 1 6 1 5

Total on Outsourcing :- 11 11 0 11 60 9 9 10 9 9 9 55 0 55 71 66 5

TOTAL STAFF:- 23 23 0 23 96 10 14 13 14 13 13 77 10 87 119 110 9100% 91% 92%

Appendix 4.1PSU & DPSUs Staff Position Details as on 4-6-2013

Designation

PSU D-PSU TOTAL

Sanctioned JoinedWorking on

FACTotal

working SanctionedJoined

Sanctioned Joined Vacant

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Appendix 4.2 Status of field staffing in RWSSD Circle offices

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Appendix 4.3: Workshops and Conferences organized by APRWSS

State and District Level Workshops Organized so far

Sl No Various level

No.of workshops

on Environmen

tal

No .of workshops on Social Aspects

No. of workshops

on Technical

workshops on Procurement

Total no.of Workshops organized

1 State Level 1 3 11 3 18

2 District Level 9 13 18 0 40

Total 10 16 29 3 58

Details of Contractors Conferences held

S.No. DistrictContractors Conference

held on

Contractors Conference held

at

1 Adilabad20-12-2011,04-10-2012,07-02-2013

DPSU, Adilabad

2 Mahaboobnagar05-12-2011,06-12-2012,29-01-2013

DPSU, Mahaboobnagar

3 Karimnagar05-12-2011,11-12-2012,30-01-2013

DPSU, Karimnagar

4 Kadapa15-12-2011,18-12-2012,08-01-2013

DPSU, Kadapa

5 Prakasam22-12-2011, 20-07-2012, 28-01-2013

DPSU, Prakasam

6 Visakhapatnam

22-03-2013, 30-04-2013, 07-05-2013, 28-05-2013

DPSU, Visakhapatnam

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Appendix4.4 – Governance and Accountability

As per the Project Appraisal Document (PAD) the project would improve transparency and accountability and thereby the overall governance framework through the following: (i) RWSS district programs supporting decentralized service delivery systems, (ii) well-defined roles and responsibilities for scheme planning, design, implementation, and maintenance, (iii) in dependent construction quality surveillance, (iv) social audits and civil society oversight, (v) grievance redressal measures, (vi) beneficiary assessments through household surveys, (vii) technical and financial audits, (viii) procurement processes and systems, (ix) Sector Information System (SIS) and the Monitoring and Evaluation (M&E) System, and (x) public disclosure of project reports and documents. Following is an analysis of progress made on the above issues.

Decentralization and Role clarity: As explained in Annex-4, the RWS sector in AP is progressively strengthening decentralization. The current institutional structure includes – RWSSD at state level with a dedicated PSU, Circle offices at district level with dedicated DPSUs for the project, Division offices at the sub-district level and water and sanitation committees at the village level. Besides, GoAP has also established a State Water and Sanitation Mission (SWSM) at the state level and District Water and Sanitaion Mission (DWSM) and District Water and Sanitation Committee (DWSC) at the district levels. The roles and responsibilities of all the offices and committees (except for MV-WSC) at all levels are well defined and implemented.

The schemes that deliver water supply can be categorised into three types; (a) Small Single Village Schemes (costing less than 600,000) (ii) Single Village Schemes (costing more than INR 600,000), and (c) Multi Village schemes. For the first and second type of schemes a GP-WSC is formed and a MV-WSC is formed for MVS schemes. The overall responsibility for project execution and O&M for SSVS is completely handed over to GP-WSCs. For SVS schemes the GP-WSC is responsible for overseeing project execution and signing off bills of contractors and O&M. The MV-WSC is responsible for quality control of works during project execution, taking care of O&M post execution and for monitoring of equitable distribution of bulk water. This practice, emerged through the project, amply demonstrates progressive decentralization. However, there is a need to work out clear roles and responsibilities for all the concerned actors who are involved in MVS implementation viz ZP, MV-WSC and RWSSD (circle offices) and promote the same. The role and function of MV-WSCs, particularly regarding signing off payments and O&M of the scheme is not yet fully thought through. This shall be taken up as the MVSs are rolled out.

It should be noted that the elections to PRIs have not happened in the state over the last two years and hence there were no formally elected PRIs since two years. This is a major setback to strengthening decentralization. Elections to PRIs are expected to be held in July-August 2013 and newly elected PRIs would be in place by September 2013. The project would need to orient all the newly elected representatives and bring them on board at the earliest.

Independent Surveillance of Construction Quality: PSU has finalized a TOR for hiring Independent Construction Quality Surveillance Consultants and also called for proposals from interested firms. The PSU is in the process of reviewing the proposals and agreed to contract a most suitable firm by end of July 2013.

Social audits: Social Audits are ideally conducted at two critical stages – during project construction, end of project construction (contract closure) for both the SVS and MVS projects. Social Audits are also required during regular service delivery to ensure equity in distribution and grievance redressal. Given the current nature of the project the following has been agreed with PSU;

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For Single Village Schemes:

During the project execution GPWSC is empowered to verify the quality of works and it is mandatory for them to sign the contractor’s bills before the RWSSD office makes payments to contractors. This process is being followed now and will be continued for all projects.

Community Contribution is maintained in a dedicated bank account by GPWSC. The same will be paid to contractor before the last payment (10% of contract value to be paid with contract closure) to the contractor directly. GPWSC will sign the works up to this stage before releasing their share to the contractor directly.

At the end of the project the RWSSD team and the GPWSC will have a final inspection of the project works, reports and will jointly sing the ‘contract closure’ report. The final payment to contractor will be released only after this joint report is signed by GPWSC members.

It is recommended that the GPWSC disclose the above details in Gram Sabha and seek feedback/ inputs from citizens, as required.

In all stages, any concerns and complaints of GPWSC and other members within the village will be recorded and measures will be specified to address the same before the next payment is due.

After the completion of the project and handing over the GP/ GPWSCs the GPWSCs should prepare an O&M plan and the same be discussed in a Gram Sabha meeting and finalized with inputs from citizens of the village.

For Multi Village Schemes:

For MVS schemes the project is promoting ‘Multi Village Water and Sanitation Committees (MVWSCs). This committee will play the role played by GPWSCs described above.

Grievance Redressal: The project initiated a grievance redressal mechanism from 15 th August 2012. The names, designations and contact numbers of officers responsible for water supply schemes are listed and put up on the website. However, there are no complaints received in the project so far. It is agreed that the project will plan and implement measures to: (i) publicize these numbers in local language in all project habitations through appropriate means (ii) develop and publicize a citizens charter across all project habitations in local language and (ii) develop and maintain complaint record books at districts and enter the same in the web based M&E systems.

Beneficiary Assessments: It was envisaged that the project would carry out beneficiary assessments during various phases of the scheme cycle. However, this did not happen, as not many schemes have been completed. Based on review of the progress of projects and discussions with various stakeholders, it is now recommended that ‘user satisfaction assessment’ be carried out for projects that have delivered water for about 6 months to one year to understand the ‘user’s perspective’ of service delivery. This can be done on a sample basis in all the 359 villages where projects are completed and service delivery has just begun after six to nine months. PSU cold prepare an appropriate TOR for the same and also decide on institutional mechanisms to carry out the survey and compile report by July 2013. It is best that this work is outsourced to a qualified and experienced organization.

Procurement Processes and Systems: Please see Annex-6 on Procurement Management.

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SIS and M&E Systems: It was earlier envisaged to conduct a baseline survey, which would be used to understand the baseline status of the critical indicators in the project. While the project team completed a baseline survey, the data is yet to be computerized fully, analyzed and tabulated. The project team agreed to complete the same at the earliest through hiring data entry operators. While the state has overall M&E software called ‘water soft’ the project teams do not have access to this software. The project developed a separate web based static MIS system, wherein data on critical indicators is collated by district offices in 20 formats (12 for water supply and 8 for sanitation) and the state takes the responsibility to update this in the system. These formats capture information physical and financial progress, trainings, IEC activities. As the village level schemes are entering into O&M phase, there is a need to capture required service delivery information (number of tap connections, water supply days, hours of water supply, regular water quality updates, tariff recovery, use of toilets etc.) and also data on environmental aspects (groundwater tables) and inclusion. Fixing these indicators, designing of new formats and commencement of data collection on these additional indicators could start by early September 2013. This could be done by end September 2013. Second, the project is in the process of making the system a dynamic system, by end December 2013, wherein the district teams will be able to directly enter the data in the system, thus improving the effectiveness of the system.

Public Disclosure: All the project related information is disclosed on the project’s website http://aprwssp.ap.nic.in, which is publicly accessible. Thus, it is a good practice.

Summary: Overall, it can be concluded that the progress on governance and accountability framework is satisfactory, despite the absence of formally elected local governments over the last two years, but needs strengthening in a few key areas. The roles and responsibilities of various offices and committees are well spelt out and practiced in the project villages. While the functioning of GP-WSCs is satisfactory during this period, it is mostly in the stage of project development and execution. A greater challenge lies ahead while these local institutions enter more complex area of O&M and service delivery. Efforts should be made to build capacities of these local institutions as per need. The multi-village schemes are beginning and MV-WSCs are being formed. There is a need to clarify their role during project design and execution stages for improved transparency and accountability in these schemes. While ‘social audits’ are happening in bits and pieces, there is a need to define the process of social audits and put in more efforts to conclude them in a structured manner at right times and communicate the results to ‘citizens’ through Gram Sabhas. The M&E systems are capturing data on physical and financial progress and as the project is entering service delivery stage; there is a clear mandate to improve the system to capture information on service delivery in a dynamic manner for enabling decision makers to take corrective actions in a timely manner. A robust grievance redressal system is also need of the hour and efforts should be made to design and implement a simple but robust grievance redressal system.

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Annex-5: Technical Assessment

I. Introduction

The technical team of the mission visited about 7 habitations in 3 out of six project districts, Mahaboobnagar, Karimnagar and Visakhapatnam. The mission met the GP Water and Sanitation Committee (GP-WSC) members, Self-Help Group (SHG) members, village communities and support staff during the field visits. Detailed presentations were made by the PSU and all six districts on the progress of their district programs. The key technical aspects, status of the project and actions required to improve the pace of implementation to ensure completion of all the schemes before Project closure in November 2014, are listed below.

Water Supply Scheme Component

The water supply schemes included in the project are: Single village water supply schemes, augmentation of Single village water supply schemes and Multi Village water Supply Schemes (MVS). Single village Water Supply Schemes are based on sustainable local source mostly ground water as source. The schemes will involve pumping from a bore well, storage of water in an elevated service reservoirs (ESRs) and supply of water through piped distribution networks and house connections to all households. These small schemes will adopt disinfection with addition of bleaching powder solution. The project also provides for rehabilitation and / or augmentation works which need to be taken up on an urgent basis, mainly to address present constraints / crisis situations. Where the locally available ground water has quality and quantity problems, MVSs with surface water sources like river, are proposed where the water will be conveyed from long distances. These schemes will cover more than one village and will involve construction of infiltration wells/galleries or conventional water treatment plants, ESRs for each village and piped distribution networks to provide house connections to all households. All MVS schemes will use disinfection mechanism based on gaseous chlorination systems. Bulk flow meters will be provided at the inlets of village ESRs served with MVS.

Sanitation Component

The sanitation component included construction of toilets for Below Poverty Line (BPL) households as per the national program guidelines. The toilets are twin pit toilets with sub-structure and superstructure (see Annex-11). The project also included sewerage systems in mandal headquarters, and management of Solid and Liquid Waste Management in large GPs, both of which did not progress much by MTR.

II. Review of Detailed Engineering and Studies, Additional Interventions required in the field

Technical Manual, guidelines and design capacity

To bring in a much higher level of technological input into the proposed activities, a technical manual has been developed. The manual contains guidelines for planning, design, construction, operation and maintenance of water supply and sanitation facilities to be developed / strengthened under the Project. The Technical Manual contains: Design criteria for all technology options for Rural Water Supply and Sanitation schemes, Procedures and guidelines for selection of sources for water supply, methods of field survey and investigations. Guidelines for planning ground water recharge facilities, requirements, contents and formats for preparation of Preliminary Scheme Report (PSR) and Detailed Scheme Report (DSR). Provisions for Project’s engineering activities included Total station survey, geophysical survey for scientific source selection, geotechnical survey for determining safe bearing capacity of foundations soils at ESRs and Water Treatment Plant (WTP) sites. Consultants were appointed in the districts for

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survey, design and preparation of DSRs and Bid Documents conforming to World Bank Procurement Guidelines for SVS and MVS. The consultants used Total Station Survey and EPANET software for distribution system designs. Where consultants are not there, departmental practice of survey and design (using LOOP software) for water supply schemes was adopted.

Review of Designs, field observations and additional interventions required

There is a total 2771 Single village schemes (SVS) that have been proposed for providing water supply to 3672 habitations at a cost of about Rs 340.66 crores. A total 47 Multi village schemes (MVS) have been proposed for providing water supply to 928 habitations at a cost of about Rs 271.73 crores. Three more MVSs are proposed to be taken up under DBO, for which technical and financial feasibility was assessed during the last year. Based on this, one of that (Y.Palem) is found to be not financial feasible, and so it was converted to a regular MVS.

Detailed scheme reports (DSR) of all SVS and MVS have been sanctioned progressively. By MTR, all the schemes have been designed. The Detailed Scheme Reports for the works under prior review and two schemes per district were reviewed by the Bank. Based on the review, the observations during the field visits of the Bank team, and discussions during the MTR mission, the following issues were identified for follow-up by RWSSD:

Missing components in SVSs: The mission observed that there are some works pending in the completed SVS schemes, which include: (i) Bulk flow meter at inlet to ESR, (ii) provision of disinfection arrangements, including providing Chloroscope (in the recently commissioned SVS, disinfection facility and Bulk-flow meter are not yet fixed) ;(iii) achieving 100 % house connections; and (iv) providing fencing around source wherever required. It shall be ensured that all SVSs will have these components installed.

Provision of House Connections. Wherever the GP is required to provide house connections it is noticed that several households are taking connections with various sizes of pipes (15 to 25 mm) and poor plumbing is adopted resulting in leakages and inequitable distribution of water. In the project, provision for saddle pieces is made only for new pipes and that too for only 50 households. Leakages at connections can be prevented if saddle pieces are provided for all the existing households. Left to them, community may not be able to afford to take 100% house connections required to ensure financial sustainability. It is now agreed that the project will provide saddle pieces to all households and also provide for 15 mm dia connections to all households to ensure quality of plumbing work and avoid leakages. Cost implications of providing house connections to all households will be about Rs 45 crores.

Improvements to Existing distribution system: Existing distribution system along with existing connections is retained in design of the SVS and MVS. There are several leaks in the existing pipelines and connections. Hence the existing systems shall be inspected during water supply timings and propose for replacement of leaking pipes and connections where necessary.

Review of distribution system design and need for pressure control: The computer outputs of distribution system have to be reviewed to ensure that residual heads are almost equal at all ESRs and households. Provision of pressure reducing valves or short length bye pass small diameter pipes along with control valves and a plug to clean blockages can be provided to control the residual heads.

Extension of MVS: In the MVS under the project where existing schemes are being extended to cover new habitations, the service level is varying from 36 to 45 lpcd (Appendix 5.2). It is informed that Fully Covered habitations are also included in the proposed MVS and hence the actual service level of the new scheme will be more than 40 lpcd. For equitable service delivery, the project will do

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the following: (i) inspect the proposed scheme and confirm the service level in the proposed habitations (ii) Inspect the service level in the existing habitations and make improvements where necessary, (iii) entrust O&M management of common facilities to a single agency for existing and proposed MVS. (iv) Review functioning of existing and new habitations together, (v) Provide operational control measures (Bulk flow meters, pressure regulating valves, (vi) provide for Butter-Fly valves for control and separate feeder mains etc. (vii) Ensure minimum 40/55 lpcd after reviewing the coverage of habitations under the MVS. (viii) Capture all control measures required in the Contracts for extension of existing MVS and new MVS.

Source Sustainability: Source sustainability for SVS is a problem in overexploited and critical groundwater areas. It was assessed that about 15% of the project villages require special attention in this regard. Appropriate recharge structures as approved by Andhra Pradesh State Remote Sensing Applications Centre (APSRAC) have to be implemented. Wherever project bore wells have already failed or prone to fail, the source sites will be inspected by Geologists and study the feasibility of providing point recharge measures which will be implemented to improve source sustainability.

Water Quality Interventions: A few water sources developed in the Project are marginally contaminated with Fluoride. Interventions have to be designed to ensure that community in the water quality affected habitations is provided with safe, potable drinking water. Project will (i) closely monitor the water quality of the project sources (see next para), (ii) wherever feasible provide point recharge to reduce concentration of contaminants, (iii) wherever the point recharge is not feasible an alternate safe source will be provided, or (iv) where none of the alternatives are feasible a RO plant will be provided only to serve the drinking water needs.

Project has to check the water quality for conforming to the required quality standards. All water quality reports of project sources will be collected and a data base will be maintained followed by close monitoring of those sources where the quality is marginally affected and initiate remedial measures. Information on water quality and water levels in project bore-wells will be collected and a data base will be maintained.

Ensuring Power supply: Dedicated power supply is being provided for MVS for 20 hours pumping. But SVSs are designed for 8 hours pumping; however three phase quality power is not available even for the designed pumping hours, which affects the water supply. Particularly, the power problem is acute in remote and hilly areas. Hence Project will provide Solar power for small capacity pump-sets wherever power is not available or is unreliable, particularly in remote habitations.

SCADA: It was agreed that simple SCADA will be provided in large MVS, to ensure equitable distribution of water, control and measurement of flow at ESRs of habitations and communication of data to the control centre. The rationale for SCADA is the following (next para). Project will decide the MVS schemes where SCADA is required and invite bids for implementing the same.

The MVS scheme is designed for ultimate flows and has to serve the present demand which will progressively increase. The hydraulic design done for ultimate demand is to be checked for residual heads for present demand and intermediate demand also. The residual heads (pressures) are also to be regulated and need to be adjusted for progressive changes in demand. The inflow into ESRs has to be controlled to the required rate of flow and also to control the cumulative flow. When the ESRs overflow, the level is to be sensed and the flow into ESR is to be stopped. To achieve this control of inflow into the ESR with manual operations is infeasible and not desirable. It is therefore necessary to provide flow and level measurement and control device through SCADA. Main Components of Flow and pressure measurement and controls are: Ultrasonic Level (ESR) Sensor & Transmitter, Pressure Sensor and Transmitter and pressure reducing valve if required, Turbine flow meter with signal generation, Valve Actuator Motor, Valve Actuator Drive (MOV), Programmable Logic

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Controller/Remote Terminal Unit, Battery power Backup system including for Motor actuator and with solar back up. When the flow varies from the set point of flow then the MOV will operate by automatic command from the RTU to regulate and achieve the required design flow at inlet of the ESR. The level in the ELSR will be monitored and transmitted to RTU. (remote terminal unit). When the maximum water level reaches in the ELSR MOV at inlet will close by automatic command from RTU. When the water level falls below maximum water level in the ELSR, MOV at inlet will open by automatic command from RTU. The battery back-up system is required with charger facility with minimum 24 hour battery back-up and Solar Connectivity enabled.

Design Build Operate (DBO) models for MVS

International Consultants (COWI) have been hired to identify schemes for DBO contracts for MVS. Three schemes have been selected to pursue under a DBO model. These are Khanapur of Adilabad and Podili & Y Palem of Prakasam.GP/ GP-WSC resolutions are obtained for these schemes. The draft Bid document for DBO operation has been prepared and is being reviewed by the Bank for prior clearance. However, one of that Y-Palem is converted to regular MVS on financial feasibility grounds. Project will implement the other two schemes under DBO. In view of limited time available before project closure the implementation of DBO model requires close monitoring.

Preparation of Integrated Water Resource Development Plan

A model water resource development plan for Karimnagar district has been prepared. This includes mapping of water bodies, rainfall distribution, groundwater availability and inter-sectoral use, quality affected habitations, and projections on demand from agriculture, domestic and industrial use, etc., as layers of information on a GIS based map. Project is unable to find suitable manpower to improve this plan and prepare similar plans for other district. Hence Project proposes to use the Hydro Geomorphologic Maps (HGM) created by NRSA in collaboration with CGWB as base GIS maps on which the project sources will be marked using GPS along with water quality and water table data.

Model 24/7 Water Supply Scheme.

A Detailed Scheme Report (DSR) for 24/7 Water Supply Scheme in Hajipalli of Mahaboobnagar is sanctioned for Rs 72.5 lakhs and works are yet to be awarded. It is programmed to complete the work by March 2014.

Capacity building of PSU Engineers: Training programs were conducted to build capacity of PSU engineers in Engineering Staff College of India (ESCI).

III. Implementation Progress and Issues

Single village schemes (SVS)

Tenders have been called so far for 1353 works at a cost of Rs 330.37 crores and contracts are awarded for 1495 works (Rs 322.89 crores). Tenders for balance 61 SVS (cost Rs 17.77 crores) and for 45 works of Augmentation to SVS (cost Rs 5, 59 crores) are expected to be awarded and works started before end June 2013. About 359 Single Village Water Supply Schemes (Rs 9.37 crores) and 513 Augmentation of SVS (Rs 17.57 crores) have been completed (32%) so far and balance works are in progress. Progress on SVS with less than Rs 6 lakhs are getting completed as per schedule. However all SVS and augmentation of SVS schemes are programmed to be completed by end March 2014. The focus of coming period shall be to ensure efficient implementation; ensure that the assets created are technically superior; and there is sustainable O&M arrangement in place

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Multi Village Water Supply Schemes (MVS)

By MTR, tenders have been called so far for 46 works at a cost of Rs 266.73 crores and contracts are awarded for 29 works (Rs 142.28 crores). Tenders for balance MVS are expected to be awarded and works started before end June 2013. About 50% of MVS are extension of existing water supply schemes and 50% are new. In few schemes source development works are to be taken up it is necessary to complete the source works before monsoon sets in.

Implementation Risks for MVS

There are some risks in implementation of MVSs as listed below, which may cause delays. A detailed analysis of risks and mitigation actions is presented in Annex-3.

Source Works completion during monsoon: As shown in Appendix II, MVS whose sources have to be developed before onset of monsoon are:

District No. of MVSs

River / Source Cost (Rs Cr)

Adilabad 7 Godavari 40.1

Karimnagar 3 Godavari 21.7

Prakasam 2 2 Summer Storage tanks 25.8

Kadapa 4 Pennar, Cheyyeru 15.4

Visakhapatnam 8 Sources in hilly rivers and streams 35.8

Total 24*

* 18 of these, costing Rs. 97.6 Cr are likely to spill over to next summer season

It is to be noted that cost of source alone will be about 15 % of total cost and other works can proceed even in monsoon. Project has informed that though the MVS in Kadapa District are proposed with infiltration wells in rivers, they could be done in monsoon period also since these rivers are always dry. For all other MVS (Adilabad 4, Karimanagar 4 and 8 in Visakhapatnam ) it is necessary to take up source works before onset of monsoon in June 2013 failing which these have to be done only in January 2014. Since at MTR, only one month is left for onset of monsoon, it may not be possible/ likely to take up source work construction in any MVS this summer.

Permissions: Project has indicated that no permissions are required from National Highways and Railways. In respect of Manthani MVS, forest permission is required which is under process. Permission from Irrigation Dept is required for construction of intake structures in respect of 4 schemes in Adilabad, 4 schemes in Karimnagar and all MVS in Visakhapatnam. Refer Appendix III.

Field Engineers: The MVS schemes could be completed if only simultaneous works are in progress in all habitations. On an average about 50% of Junior Engineers posts are vacant in RWSSD. This will result in insufficient supervision and delay the implementation. It was therefore agreed that Project will recruit individual technical consultants to work as field engineers at mandal level. These technical consultants will ensure day to day construction quality monitoring and assist the RWSSD

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engineers in effective contract management. Project will also hire vehicles for staff to ensure mobility for them to supervise the Project works.

Implementation Risk Management and Monitoring

In order to handle the risks better, it is necessary to prepare a scheme-by-scheme contract management program, with special focus on the following: (i) wherever source works are to be provided in rivers and dams, the same have to be completed before onset of monsoon, failing which source works will be delayed till next summer (details in Appendix 5.1); (ii) mobilize resources by the contractors for simultaneous progress in all the components of MVS.

In addition, frequent monitoring is required by the circle offices and APRWSSD, to ensure completion as per program. A detailed risk mitigation plan is developed to address the risk (see Annex-3).

Contract closure

Project will ensure that whenever the schemes are commissioned and trail run is completed: (i) water supply is ensured for all households and the operator selected by GPWSC is trained to operate and maintain the system, (ii) tariff is calculated and the Community is informed, (iii) As completed plans will be prepared and both soft and hard copies of SVS and in-village system plans of MVS will be provided to the GP. (iv) A “E – library” will be maintained in the RWSD division which will have copies of the DSR, designs, drawings and “As completed plans” of all facilities created in the project

Independent Construction Quality Surveillance Consultants

Though several SVS are completed, Quality assurance records of SVS are not maintained properly at the sites. In view of large number of high cost MVS being taken up the Project will ensure that the consultants for Independent Construction Quality Surveillance are in place as early as possible, for which procurement is now going on and is at the evaluation stage.

IV. O&M Arrangements and Policy

There are 525 No. MVS Schemes5 in the state as on 1.4.2012, serving 10000 habitations covering a population of about 2.00 Crores. An amount of about Rs 100.00 to 125.00 crores are being supplemented every year to the Zilla Parishads by the Commissioner, Panchayati Raj Department towards the O& M of these MVS Schemes. These funds are met from the Twelfth Finance Commission Grant during the years 2005- 06 to 2009-10. From 2010-11 onwards, funds are provided under 13th Finance Commission grant. ZPs in turn will keep the funds at the disposal of respective RWS Division. RWSSD prepares estimates using the staffing norms contained in the CPHEEO manual, calls for tenders for O&M service management and entrusts the work to a contractor for manning, operation and minor repairs – excluding power charges. Power charges are separately subsidized. For any major repairs the RWSSD is using funds received from GOI for O&M. The present norms of providing funds as per GO No 462 dated 25 February 2009 for finance commission’s grants are: Rs 65 per capita per annum for MVS and for SVS Rs 12 per capita per annum.

Problems in O&M

5 The state calls them as combined piped water supply schemes (CPWS)

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Though sufficient funds are provided for O&M of MVS Schemes the quality and performance is not up to the satisfactory level in many cases due to the following reasons.

IV. Unhealthy competition amongst contractors; (ii) Unrealistic quotes by the tenderers (about 50% less in some cases); (iii) Improper security arrangements near head works, intermittent stations leading to access of these premises to unauthorized persons; (iv) Water is drawn from Hyderabad Metro Water Supply Board for certain MVS Schemes in Districts like Ranga Reddy, Medak. In such cases the Board is charging @ Rs.10/- per K.L, which are not regularly paid by the ZPs. The Board is frequently pressing the RWSSD to clear the dues, which are supposed to be paid by the ZPs; (v) Power dues to AP TRANSCO (transmission agency) has become an issue. The tariff levied by the TRANSCO is not uniform across the State. Power is being charged from Rs.0.35 to Rs.4.20 per unit; (vi) There is no separate staff for effective supervision and regular monitoring of O&M functioning, (vii) There are frequent disturbances from operators’ staff.

New Policy of GoAP on O&M

With a view to improve the O&M, Government have recently approved the revised O&M Policy in G.O. Rt.No. 2290 Dated: 20-12- 2012. (Annex-11).

O&M arrangements for the project created assets

For the Project the following O&M arrangements are envisaged. For SVS the Construction contract will have provision for trial run of two months. During this period of Trial run an operator is selected by GPWSC, who will give hands on training, and capacity of GPWSC will be built to manage the O&M. If necessary, RWSSD will assist the GPWSC in selecting a service management contractor.

For MVS the construction contract has provision for six months O&M. The present outsourcing arrangements of MVS by RWSSD will be followed for the project created MVSs also. The service management contract will be awarded by RWSSD and monitored for ensuring supplies at the entry to ESRs of the villages under the MVSs. MVWSC will oversee this arrangement, GPWSC will ensure equitable distribution within village, and MVWSC will ensure that the GPWSC pay the required charges and address problems posed by involving participating villages.

IV. Agreed actions

SVSs

1 Review all SVSs, inspect during supply hours, identify missing components such as listed below, and provide them including undertaking all required rehabilitation measures to reduce leakages.

Bulk flow meters at inlets to ESRs; Disinfection arrangements, including choloroscope; Pressure control arrangements; 100% house connections and saddle pieces; replace leaking pipes and connections; fencing around sources; and solar power for small capacity pumps where power is unreliable / in remote habitations.

2 The RWSSD shall come out with suitable policies to promote house connections and make additional allocations.

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MVSs

3 Manage implementation of MVSs effectively through the following measures: Identify MVS where sources are to be provided in rivers and dams and take action to

implement before onset of monsoon Identify MVS where permissions from irrigation and forest and obtain the same on priority Recruit Individual technical consultants to work as field engineers at mandal level, to ensure

day to day construction quality monitoring and effective contract management; Hire Vehicles for Dy EE s wherever required to ensure mobility for them to supervise the

Project works; Develop contract management plan for each of the MVSs; and Prepare action plan to start all MVS by July 15, 2013.

4 In the MVSs with extension of existing schemes, undertake the following actions to improve their performance

Review all extension of MVS and estimates for service levels in villages and confirm the same, inspect the service level in the existing habitations and make improvements where necessary. Ensure minimum 40 lpcd after reviewing the coverage of habitations under the MVS;

5 Ensure provision of the following operational controls in all the MVSs: Bulk flow meters, pressure regulating valves, Butterfly valves for control and separate feeder mains etc.

6 Provide for SCADA particularly in large MVSsSource Sustainability and Water Quality Measures7 Use Hydro Geomorphologic Maps (HGM) created by NRSA in collaboration with CGWB as base

GIS maps on which the project sources will be marked using GPS along with water quality and water table data.

8 Collect all water quality reports of project sources and maintain a database. Closely monitor the water quality of quality affected project sources, and address it through the following measures:

Wherever feasible provide point recharge to reduce concentration of contaminants, Wherever the point recharge is not feasible an alternate safe source will be provided, Where none of the alternatives are feasible a RO plant will be provided only to serve the

drinking water needs.O&M issues9 As the MVSs are completing, entrust O&M management of common facilities to a single agency for

existing and proposed MVS.10 Undertake a O&M performance study of MVS (CPWS) and recommend appropriate provisions in the

service management contract to ensure efficient O&M.

Database Maintenance

11 Maintain “E-library” in the RWSSD division which will have copies of the DSR, designs, drawings and “As completed plans” of all facilities created in the project

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Appendix 5.1 Feasibility of Execution of MVSs during monsoon

Appendix 5.1 APRWSSP-PARTICULARS OF MVS completion before Monsoon -

SL.No District Name of the Project

Est.Cost Rs.In

CroresTo be done Before Monsoon

Could be done even in Monsoon

Permission Required and by Whom

All OK

Source Provisions

Category

New Extn

1 Adilabad MVS to Boath and other Habitations 5.50 Yes Irrigation

department permission for structure required

-

Karthwada Project, at Karthwada

village

Intake Well,RSF,Pumping Main, Pumping Machinery,OHBR,Transmission lines and Internal Distribution System

new

2 Adilabad

CPWS Scheme to Habitations in Bela

and Jainath Mandals

4.50 Yes Irrigation department permission for structure required

-

Satnala Project, at

Medi Guda

Road side village

Intake Well, Micro Filter Plant,OHBR, OHSRs ,Pumping Main,Pumping Machinery,Transmission lines and Internal Distribution

new -

3 AdilabadCPWS Scheme to

Mudikunta and other Habitations

2.05 All OK

Infiltration Well in

Godavari River

Existing Infiltration Well, Collection Well, Proposed Pumping Main, Pumping Machinery, Transmission Lines and Internal Distribution.

- existing

4 AdilabadCPWS Scheme to Girivelly & other Habitations

4.50 Yes - -Infiltration

Well in Yerravagu

Infiltration Well, Pumping Main, Pumping Machinery, OHBR,Transmission Lines and Internal Distribution System.

new

5 AdilabadCPWS Scheme to Motlaguda & other Habitations

1.70 - - All OK

Intake well in

Peddavagu

Intake Well, Micro Filter Plant,Pumping Main,Pumping Machinery,and Internal Distribution System.

new -

6 Adilabad

CPWS Scheme to Habitations in

Asifabad and other Habitations


Intake Well in

Komuram Beam

Project at Ada R&R

Colony

Intake Well,Micro Filter Plant,Pumping Main,Pumping Machinery,OHBR,OHSRs ,transmission main and Internal Distribution System

new -

7 Adilabad CPWS Scheme to Itikyala and other 10.15 Yes - Intake

Well in Intake Well,RSF,OHB new -

50



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

Habitations

Godavari River at Itikyala village

R,OHSRs ,Pumping Main,Transimission Main and Internal Distribution System.

8 AdilabadCPWS Scheme to

Sarangapur and other Habitations


Intake Well in Swarna

Project, at Ponkur

Intake Well,Micro Filter Plant,Pumping Main,OHBR,OHSRs ,transmission main and Internal Distribution System

new -

Sub Total 42.15 7 1

9 Mahaboobnagar

Extension of CPWS Scheme to Balmoor & Lingal Mandals

2.35 - - All OK

Ramanapad

Balancing Reserviour

Existing sump,OHBRs,Pumping Main and Pumping Machnery,OHSR, CWS,Part of Transmission lines and proposed Transmission Lines and Internal Distribution Network

- existing

10 Mahaboobnagar

CPWSS to Beechpally and other habitations

1.26 - - All OK

Intake Well in Krishna river

Existing Intake Well ,Micro Filtration Plant,CWS,OHBR,Pumping Main,Pumping Machinery ,part of transmission line and proposed balance Transmission Lines,OHSRs and Internal Distribution Network

- existing

11 Mahaboobnagar

CPWSS to shadnagar and other Habitations

4.34 - - All OK

Krishna - Hyderabad Metro Water Supply Sump at Gungal

Existing Sump,OHBR,Pumping Main,Pumping Machinery,Part of Transimssion line and proposed balance Transmission Line & BPT

- existing

12 Mahaboobnagar

CPWSS to Gadwal Constituency 18.50 - - All

OK

Priyadarsini Jurala Project at Revulapally village, Dharur

Existing Intake well, Pumping Machinery, Raw water Pumping Main, RSFs, CWS,

- existing

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Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

mandal

Sump, Clear water Pumping Main, GLBR, Gravity Main and proposed OHBR,OHSRs, Transmission Lines,Distribution Network

13 Mahaboobnagar

Drinking water Project (MVS) to NSS & PC1 habitations in Deverkadra (M)

5.00 - - All OK

Koilsagar Reservoir

Existing Intake Well,Pumping Machinery,Micro Filtration Plant ,CWS,Proposed OHBR,Transmission Lines,Distribution Network

- existing

14 Mahaboobnagar

CPWSS to Madgul and other habs (Phase-III)

10.35 - - All OK

Tapping from Hyderabad Metro Water Supply.

Existing sump, Gravity Main,OHBR, Distribution,Part of Transmission main and Pumping main, Proposed Sump,Pumping Main,Pumping Machinery,Transmission Lines,OHBR,OHSRs and Internal Distribution Net Work

- existing

Sub Total 41.80 0 6

15 Karimnagar

MVS to Dharmapuriof Karimnagar Dt.

4.50 - - All OK

Bollucheruvu fed by SRSP canal

Existing Intake Well,Pumping Main from Intake Well to OHBR, Proposed Sumps,Pumping Main,Pumping Machinery,OHBR,OHSRs,Transmission Lines and Internal Distribution Network

- existing

16 Karimnagar

MVS to Vemulawada of Karumnagar Dt.

3.50 - - All OK

LMD Existing Collection Well in LMD reservoir, pumping Machinery,Head Works (CWS,GLBR),Proposed Sump,Pumping Machinery,Pumping Main

- existing

52



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

CWS to Nampally OHSR,Transmission Lines & Internal Distribution Network.

17 Karimnagar

MVS to Peddapalli of Karimnagar Dt. 4.50 - - All

OK

Appannapet cheruvu fed by SRSP

Existing Intake Well, Pumping from Intake well to Head works,RSF,OHBR,CWS, Partly Transmission Line, Proposed balance Transmission Lines,Pumping Machinery,Pumping Main,OHSRs and Internal Distribution Network.

- existing

18 Karimnagar

MVS to Dharmaram of Karimnagar Dt.

3.10 - - All OK

Myadaram cheruvu

Existing Jack Well at Myadaram Cheruvu, Proposed Pumping Machinery, Pumping Main, Transmission Lines, OHSRs and Internal Distribution Network.

- existing

19 Karimnagar

MVS to Raikal of Karimnagar Dt. 4.00 - - All

OKSRSP canal

Existing Intake Well, Pumping Main from Intake well to Head Works,RSF,OHBR,CWS,Pumping Machinery , Proposed Transmission Line,OHSRs and Internal Distribution System.

- existing

20 Karimnagar

MVS to Ramagundam of Karimnagar Dt.

4.80 Yes

Irrigation department permission for structure required

Intake Well in Godavari River

Intake Well,Micro Filtration Plant,RSF,Sumps,Pumping Main,Pumping Machinery,OHBR,OHSRs,Transmission Lines and Internal Distribution Network

New -

21 Karimnag MVS to Manthini 8.90 Yes Irrigation Intake Intake new -

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Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

ar of Karimnagar Dt. department permission for structure and forest permission required

Well in Godavari River

Well,Micro Filtration Plant,OHBR,OHSRs,Pumping Main, Transmission Main, Pumping Machinery, Internal Distribution.

22 Karimnagar

MVS to Jagitial of Karimnagar Dt. 4.00 -

- All OK

SRSP canal

Existing Intake Well, Pumping Main from Intake Well to OHBR,RSF, Proposed OHBR,Sump,Pumping Machinery,Pumping Main from sumps to OHSRs,Transmission Lines & Internal Distribution Network.

existing

23 Karimnagar

MVS to Jammikunta of Karimnagar Dt.

14.75



Intake Well in Kakatiya Canal

Intake Well, SS Tank,RSF,Pumping Main,Pumping Machinery, OHBR,OHSR, Transmission Lines and Internal Distribution Network.

new -

24 Karimnagar

MVS to Ramadugu of Karimnagar Dt. 8.42 - - All

OK LMD

Existing Intake Well, OHBR, RSF, Pumping Main from Head works to OHBR , Prop.Pumping Main,Pumping Machinery,OHSRs,Transmission Lines and Internal Distribution Network.

- existing

25 Karimnagar

MVS to Husnabad of Karimnagar Dt. 3.50 - - All

OK LMD

Existing Intake Well, Proposed OHBR,Sump, Transmission Line,Pumping Machinery,Pumping Main and Internal Distribution Network.

- existing

26 Karimnagar

MVS to Gambhiraopet of Karimnagar Dt.

3.60 - - All OK

Upper Manair Dam

Existing Jack Well,Pumping Main from Jack Well to

- existing

54



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

RSF,RSF,GLBR and proposed Transmission Line,Sump,Pumping Machinery.

27 Karimnagar

MVS to Lingapur of Karimnagar Dt. 1.18 - - All

OK

Peddacheruvu fed by SRSP

Existing Jack Wdll,RSF,Sump,OHBR,Pumping main from Jackwell to OHBR,Proposed BPT,,OHSR,Transmission Lines and Internal Distribution Network.

- existing

28 Karimnagar

MVS to Mallapur of Karimnagar Dt. 8.00 Yes


Intake Well in Godavari River

Intake Well,Pumping Main,RSF, Sumps,OHBR,GLBR,Transmission Lines,Pumping Machinery & Internal Distribution Network.

new -

Sub Total 76.75 4 10

29 Prakasam

Providing water supply multi village scheme to Ramkur habitation of J. Pangulur Mandal and Lakkavaram habitation of Martur Mandal.

3.00 Could be done even in Monsoon

All OK

S.S.Tank fed by NS Canal

SS Tank, Intake Well, OHSR,Transmission Line, SS Tank, SSF

new -

30 Prakasam

Providing water supply Multi village scheme to Kondasamudram, Kothakondasamudram, Sameerapalem Habitations of V.V.Palem Mandal and Mukteswaram Habitation of Lingasamudram Mandal.

1.38

All OK

Infiltration Well in Manneru River

Existing OHBR, Proposed Transmission Line from OHBR to four OHSRs,OHSR, Internal Distribution Network.

- existing

31 Prakasam

Providing Water Supply(MVS) scheme to Kukatlapalli,Gorrepadu,of Ballikurava Manadal,Prakasam Dt.

2.50


S.S.Tank fed by NS Canal

SS Tank, Gravity main from canal to SS Tank,Intake Well,Pumping Main, Pumping Machinery, SSF,Sump,OHSR and Internal Distribution Network.

new -

32 Prakasam Providing MVS to Yerragondapalem 22.80 Could be

done S.S.Tank

fed by NS SS Tank, intake Well at NS new -

55



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

and other habitations

even in Monsoon

Canal

canal and SS Tank, RSF, Pumping Main,GLBR, OHSRs, Pumping Main, Transmission Lines and Internal Distribution Network.

Sub Total 29.68 3 1

33 Kadapa MVS to B.Mattam 14.00 All

OK

Bramham Sagar

Reservoir

Existing Intake Well,Pumping Main,RSF,CWS,GLBR,8.8 KM Gravity Main, Proposed Pumping Machinery,BPTs,Transmission Lines,OHSRs,GLSRs, and Internal Distribution Network.

- existing

34 Kadapa MVS to Kondapuram 15.00 All

OK

Intake Well in

Gandikota Reservoir

Existing Intake Well, Proposed Pumping Main,Pumping Machinery,RSF,Sump, GLBRs andTransmission Line.

existing

35 KadapaMVS to

Chilamkuru and Other Habitations

5.40 All OK

Intake Well in

Mylavaram

Reservoir

Existing Intake Well,Pumping Main,RSF,CWS, Proposed OHBR,OHSRs and Transmission Lines

- existing

36 KadapaMVS to LR Palli

and Other Habitations

18.50 All OK

Annamayya reservoir

Existing Intake Well,Pumping Main,Pumping Machinery,Sump Wells, GLBR,Par of Transmission Line. Proposed Balance Transmission Line, OHBRs and OHSRs.

- existing

37 KadapaMVS to

Madhavaram I and Other Habitations

4.50


Infiltration well in River Penna

Infiltration Well, Pumping Machinery,Pumping Main,OHBR, OHSRs, Transmission Lines and Internal Distribution Network.

new -

56



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

38 KadapaMVS to Vallur Pendlimarri and

Other Habitations4.80 - All

OK

Infiltration Well in River Penna

Existing Gravity

main,Proposed Infiltration

Well, Pumping Main,Pumping Machinery,OHBR,OHSRs,Su

mp, and Transmission

Lines.

- existing

39 KadapaMVS to Sidhout


1.30


Infiltration Well in River Penna

Source is Infiltration Well (prop in Madavaram MVS) common to 2 schemes i.e. Sidhout and Madavaram and ProposedPumping Machinery,Pumping Main,OHSR and Internal Distribution Network.

new -

40 KadapaMVS to Akepadu


4.80 Could be done even in Monsoon

Infiltration well in River

Cheyyeru

Infiltration Well, Pumping Machinery,Pumping Main,GLBR,OHSRs and Transmission Lines

new -

Sub Total 68.30 4 4

41 Visakhapatnam

MVS to Padmanabham and other habitations

9.90 Yes


Infiltration well in Gostani River

Infiltration Well, Collection Well, Pumping Main, Pumping Machinery, Transmission Lines,OHBR,OHSRs,CWSand Internal Distribution Network.

Y -

42 Visakhapatnam

Providing water supply to Multi village scheme to G.Madugula and other habitations

2.90 Yes


Intake Well in

Dimsagimmi gedda

at Kantavaram village

Intake Well, Diversion Weir, Pumping Main, Pumping Machinery, Micro Filtration Plant,Sump,Transmission Lines, OHBR, OHSRs,and Internal Distribution Network.

Y -

43 Visakhaptnam

Providing water supply to Multi village scheme to Hukumpeta and

2.20 Yes Irrigation department permission for structure

Infiltration well in Matsya gedda at

Infiltration Well, Collection Well, Pumping

Y -

57



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

other habitations

required

Hukumpeta

Main, Pumping Machinery, Transmission Lines,GLBR,GLSRs, and Internal Distribution Network.

44 Visakhapatnam

Providing water supply to Multi village scheme to Pedabayalu and other habitations

1.95 Yes


Intake well in

Palavalasa gedda near Uradakota

village

Intake Well,Diversion Weir, Pumping Machinery,Pumping Main,Micro Filtration Plant,GLBR,GLSRs,Transmission Lines and Internal Distribution Network.

Y -

45 Visakhapatnam

Providing water supply to Multi village scheme to Anantagiri and other habitations


Intake Well in

Doramunda gedda in Anantagiri

Intake Well,Diversion Weir,Micro Filtration Plant,GLBR,OHSR,Transmission Lines and Internal Distribution Network.

Y -

46 Visakhapatnam

Providing water supply to Multi village scheme to Munchingputtu and other habitations

2.10 Yes


Intake well

(Jolaput reservoir)

Intake Well,Pumping Machinery,Pumping Main,Micro Filtraton Plant,GLBR,GLSRs ,Transmission Lines and Internal Distribution Network.

Y -

47 Visakhapatnam

Providing water supply to Kedipeta and other habitations

9.00 Yes


Infiltration Well in

Thandava river

Infiltration wells, Collection Well, Gallery, Pumping Machinery,Pumping Main,OHBR,Transmission Lines,OHSRs,GLSRs and Internal distribution Network.

Y -

48 Visakhapatnam

Providing water supply to Multi village scheme to etigayarmpeta and other habitations Part - I


Infiltration well in

Ravanapalli gedda

Infiltration well and Gallery,Pumping Machinery,Pumping Main,OHBR,Transmission

Y -

58



Est.Cost Rs.In




All OK

Source Provisions

Category

New Extn

lines,OHSRs and Internal Distribution Network.

Sub Total 35.85 8 0 Total 294.53 26 22 DBO

49 Adilabad

CPWS Scheme to Khanapur and other habitation (DBO)

5.30 - - Y

Intake well in Godavari River

Existing Intake well,OHBR,Micro Filtration Plant,Proposed RSF,Sump,Pumping Machinery,OHSRs,Pumping Maina, Transmission Lines.

- Y

50 Prakasam

Providing CPWS Scheme to Podili & 26 other Habitations (DBO Scheme)

8.00 - - Y

SS Tank fed by NS Right Canal.

Existing SS Tank,CWS,Head Works at Darsi,Proposed Gravity Main from Head works,Pumping Main,Pumping Machinery,OHSRs, Transmission lines and Internal Distribution Network.

- Y

Sub Total 13.30 0 2

Total MVS + DBO 307.83 26 24

59

Appendix 5.2 Service levels in MVS extension Schemes

Appendix 5.2 - APRWSSP Service level Particulars of MVS where extension of existing schemes are provided

Sl.No DistrictPop As per 2013

Total No. of Enroute FC has included in the design

Population as per 2001 census

Balance Habs to be covered after deducting FC habs (7)-(8)

Pop As per 2001 census

Pop As per 2013 census

LPCD for Coverage habs under Col.12 Remarks

1 2 8 9 10 11 12 13 14 15

1 Mahaboobnagar 0.33 11 0.085 20 0.205 0.231 51

2 Mahaboobnagar 0.13 6 0.04 13 0.075 0.085 61

3 Karimnagar 0.41 2 0.05 19 0.31 0.35 47

4 Karimnagar 0.55 0 0 6 0.34 0.38 58

5 Karimnagar 0.68 7 4 30 0.56 0.63 43

6 Kadapa 0.39 27 0.12 38 0.23 0.259 60

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Annex-6: Procurement Management

Procurement of Civil Works. The progress of civil works was reviewed and status is as under

Scheme Detail Number of works where Bids invited

Number of works where Letter of Acceptance issued

Number of works Awarded/ Grounded

No of Works completed

SVS 1556 1495 1314 359

MVS 46 29 6 0

Aug of SVS 1168 Not required (CC)

1123 513

Toilets 31737 units - 5355 units 2319 units

Soak pits 70455 units - 7198 units 2686 units

It was agreed that the works where Letter of acceptance (LOA) has been issued, the works will be awarded and immediately grounded (contract signed). Moreover given the time required for execution of MVSs, there is a need for immediate grounding of the MVS works.

Procurement plan: In view of above, given the limited time available before project closure and keeping in view the advice of DEA the PSU will work out on plan of action in regards all works, which have not yet been grounded. It was agreed that all works will be grounded by June 30, 2013. This is required to ensure timely delivery and completion. The revised Procurement plan for goods, works and consultancy services yet to be procured will be sent to Bank for clearance.

Bidders Qualification for MVS/SVS schemes: The mission reiterated the need for due diligence by the PSU/DPSU in cases where two or more works are being awarded to same Bidder. The qualification of the Bidder to perform all the contracts awarded must be assessed and established prior to award. While Bank has highlighted the same in the prior review cases the PSU must proactively review the post review cases also to establish the capacity. This will help in timely execution of contract and may also prevent contract management and performance issues later.

The mission clarified that Bank funding shall be available for all procurement based on what is agreed and cleared by DEA/Bank management. Any works/payments beyond the project scope (to be agreed with Bank ) or after closure shall be funded from GoAP own resources.

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Complaint Handling. As informed by the PSU a robust online complaint receiving mechanism is expected to be place by July 2013. The mission was informed that there are presently no complaints received under the project. The mission advised that till an online complaint system is made functional all the District and PSU shall regularly follow up the complaint and update the complaint register.

Staffing and capacity Building : Of the 6 Districts the procurement staff is available in 4 districts and in 2 districts (Prakasam and Adilabad); the staff has procurement as an additional charge. Procurement Staff at PSU is relatively new (joined two months back). The mission advised that given the present thrust on procurement the staff with full charge should immediately be put in place for Prakasam and Adilabad districts. The mission expressed its concern about the frequent replacement of the procurement staff and also that the new staff replacing the earlier one needs to immediately go for procurement training at ASCI. Since PSU is the nodal body, which provides guidance and support to all the DPSUs in regard to procurement, PSU need to be well staffed and trained. Given the frequent staff changes the capacity is getting challenged. The mission recommends that the new officials both at PSU and DPSUs should take upcoming trainings at ASCI. In addition to above PSU informed that they are planning to hold a procurement workshop at Hyderabad in July for which they will hire ASCI.

Community contracting: Regarding procurements being carried out by the community/GP the mission clarified that project needs to ensure that agreed processes and procedures for community procurement are consistently followed.

Procurement Post Review (PPR). The draft report findings were discussed with DPSUs and PSU. The PPR finding reflects issues related to procurement procedures not being followed and timely payments not being made in large number of cases. PSU informed that most of these issues have been addressed and resolved and shall not repeat in future. The final report has been shared by the Bank. Once the comments are received the needful action as required shall be taken.

Procurement MIS: The mission recommended that online procurement MIS needs to be developed and shall be regularly updated by individual DPSUs in regard to contracts for their districts such that the latest updates are available online. The MIS shall provide complete information in regard to each Bid.

Social audit: PSU will ensure that all the GP’s have information appropriately displayed at the GP office in regard to contract and complaints redressal information.

Procurement rating: The overall procurement performance is rated moderately Satisfactory, given the progress of procurement over the last six months. However, the mission has concerns about (i) Delays in grounding/award of civil work and Non procurement or delays in procurement of works as planned in the PPs; (ii) Delays in payments as mentioned in the PPR reports (iii) frequent changes in the procurement staff leading to capacity gaps; which need to be addressed by PSU.

Key Actions Required:

Activity By whom By when

All SVS/MVS schemes which have been entrusted to be grounded

PSU/DPSU June 30, 2013

Revised and updated procurement plan PSU Jul 31, 2013

Complaint redressal mechanism PSU Nov 30,2013

Comments on PPR reports PSU July 31, 2013

62

Procurement training for new staff PSU/DPSU July 2013

Annex-7: Financial Management

Budget and Disbursements: Against the budgetary provision of Rs. 1150 million for FY 2012-13, the actual expenditure is Rs 972.98 million. For FY 2013-14, GoAP has made a provision of Rs 3100 million (Rs 252.5 million under PD account arrangements and Rs 2847.5 million under PAO system) for the project. The project is regular in submission of IUFRs and claims till quarter ending December 2012 has been filed with the Bank. Disbursement from the World Bank as on May 9, 2013 was USD 21.51 million which represents 14.95% of the credit of USD 150 million and includes balance of USD 14.83 million in the designated advance account.

Fund Flow arrangement: The state finance department through Memo No. 14652/490/A1/BG.I/2012 dated June 27, 2012 has considered change in the fund flow arrangement for operating funds under non- work components through a PD account. GoAP has accordingly assigned a PD Account Number (K-8448-M.H.120-S.H. 35) in favor of the Project Director, PSU. The project has opened the PD account with State Bank of Hyderabad (PD-314, Branch Code-20916). The Project manager of the six DPSUs and their respective Executive Engineers (RWS&S) in the district have also opened separate bank account exclusively in State Bank of Hyderabad for receiving funds from PD account upon disbursements made from the PSU for operating funds under non work components.

It was advised to the project to explore the model of parent child account/core banking solution/cloud banking etc., where there will be one main pool bank account maintained at the PSU in which funds will be kept and district accounts can maintain dummy accounts, which are attached to this pool bank account. The Project Director can allocate funds to the district through LOC mechanism and the districts can issue cheques to the third party till the limit indicated in the LoC. A copy of the LoC will be sent to the pool and dummy bank account to provide information on the allocation and limits to which Executive Engineer at the district can release payments. The project has agreed to work out the modalities. Accounting: The change in fund flow arrangement has necessitated making changes in the accounting records maintained by the project. During mission a visit was made to New Town Mahaboobnagar district where it was observed that project is maintaining separate records (bank book, PAO bill register, PAO reconciliation, bank reconciliation, contract register) for payments made through PD account and payments made through PAO system. In the previous mission it was suggested that the PSU needed to maintain a consolidated contract register for all the contracts under the project. The PSU can obtain copy of the contract register maintained at the district and consolidate at the PSU. The project needs to take actions in this regard.

Reporting and IUFR preparation: With expenditure being incurred through the PAO system as well as the PD account, the project has been advised to provide with each IUFR:

i) a statement bifurcating the expenditure made through PAO and PD account. The format in which the information needs to be furnished was provided with December 2012 IUFR review. The expenditure incurred through the PAO system will continue to be consolidated through the division level classified abstracts. For expenditure incurred through the PD account the Project Manager at each DPSU is submitting the statement of expenditure (classified under the same expenditure heads as has been created under the PAO system) under his signature. It was advised

63

that for PD account expenditure statement the header of the report should specify the Bank accounts i.e. “Consolidated Abstract of Expenditure for period………..for SBH Bank Account Number……………”

ii) a statement showing the opening, closing and movement in the bank account balances maintained for operating the funds under PD account.

iii) Revision to Note 1 of the IUFR comments to reflect that the expenditure is now also incurred through PD account i.e. comment “ which are reported by the PAO to the state AG” will change to “which are reported by the PAO to the state AG and reported by the Project Manager to the PD”

Community Contribution: The mission discussed issues of handling of community contribution towards capital cost and O&M cost to be collected under the project. As per the Project Implementation plan the pre final bill will be paid by the capital cost contribution made by the GPs. During the visit to the districts it was observed that the GP has opened separate bank account in which capital cost contribution is deposited. However, the PSU needs to maintain records of all the Bank accounts opened for depositing the community contribution and prepare a statement to show amount of community contribution collected under the project. It was advised to the project that clear instructions from the Project Director should be issued to the GPs to open separate Bank account for collecting the capital cost and O&M contribution in separate Bank accounts.

Staffing: The position of a senior gazette finance officer preferably from the directorate of Works Accounts of the Finance Department of GoAP had to be deputed at the PSU to perform the role of coordination of the financial matters. A Divisional Accounts Officer has been deputed in the finance function at the PSU but the position of the senior gazette finance officer has remained vacant. The project has moved a proposal to the finance department to fill the position with officers who have retired from the finance department. The project has even identified the officers but it is pending final approval with the finance department. The hiring of the staff has been delayed considerably and it was advised that all the vacant positions should be filled immediately by the project. Internal Auditor: The project has progressed with the appointment of the internal auditor. The process has reached the stage of evaluation of bid proposal received from the shortlisted firms. The appointment of internal auditor needs to be finalized at the earliest. It was agreed that the appointment of the internal auditor will be completed by July, 2013.

External Auditor: The project shared with the Bank the responses sent to Auditor General (AG) for audit disallowances of Rs 1.758 million for financial year 2011-12. It was agreed to provide further time till September 30,2013 to settle these audit disallowances, failing which these expenditures will be considered ineligible and immediately refundable to the Bank. For audit report for FY 12-13 the mission team emphasized the need for early finalization of accounts and its timely submission to auditors for their review and issuance of audit report. During the mission a meeting was held with Deputy Accountant General (DAG) to discuss whether as per the existing Terms of Reference, their scope of work will cover auditing the expenditure incurred through the PD account. The DAG commented that expenditure incurred under the project will be audited in entirety provided proper accounts for the transactions made through the PD account are maintained by the project.Agreed Actions are as follows:

Action By WhenExplore pool bank accounting possibilities for operation funds through PD Account

September 30,2013

Maintain consolidated contract register September 30,2013

Provide additional statements (expenditure bifurcation, bank movement, change in note) with each IUFR for expenditure made through PD account

Ongoing

Issue instructions to maintain separate bank accounts for GP Capital Cost & September 30,2013

64

O&M contribution and prepare detail statement of the contributions madeFill vacant posts of Finance Manage at PMU and Divisional Accountants at the Divisions

At the earliest

Appoint Internal Auditors for the project July, 2013

Annex-8: Environmental Management

The APRWSS project falls in the environmental assessment category B as per OP 4.01. The project had developed an Environmental Management Framework (EMF) with the objective of mitigating any negative environmental impacts that can occur if the schemes are not properly designed, sited, implemented, and maintained. In order to ensure that the environmental issues are systematically identified and addressed in the various stages of implementation of the project supported schemes, an Environmental Analysis (EA) and Environmental Management Framework (EMF) have been developed.

The EMF describes a screening and appraisal process, institutional arrangements, and plans for capacity building and monitoring on environmental management aspects. The mission reviewed the progress on EMF implementation through meetings at the SPMU, interactions with district teams as well as field observations in two districts (Mahaboobnagar and Karimnagar), and, review of relevant documents. Overall, while the progress on the EMF implementation has been satisfactory, there is a need for further strengthening with regard to the issues of source sustainability and water quality.

Integration of environmental aspects in scheme planning: The progress on environmental safeguards was reviewed through field visits and through meetings with the PSU and with the Project Manager (SE-RWSSS) of the 6 districts. Prior-review and post-review of a sample MVS indicates that environmental appraisal is being undertaken as per the requirements of the EMF. The DSRs of the MVS schemes include the Environmental Data Sheet (EDS), Detailed Environmental Appraisal (DEA) and the Environmental Management Plan (EMP). The identified mitigation measures are included in the bid documents. The inclusion of EDS in the DSRs of SVS, however, needs strengthening (ensuring that the EDS is complete and accurate). The mid-term review study (Draft Report, November 2012) undertaken by a consultant firm (covering a sample of 60 schemes) also confirms that the EDS have been included in the DSRs (however, it does not provide information on DEA and EMP in DSRs of schemes requiring the same). The mid-term review study also notes that source selection is satisfactory both in terms of sustainability and water quality. An environmental audit for the project has not been undertaken so far.

Of all the schemes in the project, only one scheme (MVS, Manthani, Karimnagar) is reported to involve forest land. The total requirement of forest land is 1.0992 hectares (as the requirement is less than 5 hectares, permission is to be accorded by the state government). The process of obtaining permission is under way (request for permission has been sent to the Divisional Forest Officer in February 2013).

The project MIS needs to capture information on integration of EA into scheme planning. The status of information on the indicators agreed during the last mission (April 2012) is as follows:

Indicator Status at MTR Source of information

Percentage of DSRs with filled Environmental Data Sheets

100% Reported by D-PSU Environment Experts and MTR Review Study

Number of District Environmental Experts 6 Reported by PSU

Percentage of habitations in critical and overexploited basins getting a sustainable

Schemes in overexploited basins Reported by D-PSU

65

source = 64

Schemes in critical basins = 33 (not including details from Mahbubnagar)

Details on sustainability of the sources in these schemes not yet available.

Environment Experts

Percentage of habitations in critical and overexploited basins where source sustainability measures have been implemented

None. Reported by D-PSU Environment Experts

Percentage of NSS habitations getting safe source

Schemes in NSS habitations = 97

Reported by D-PSU Environment Experts

Percentage of habitations with regular disinfection facility

Information not available. -

Number of habitations with functional solid waste management system


Number of habitations with functional liquid waste management system


Capacity building on environmental aspects: The Environment Experts at the PSU and D-PSU are in place. Training on EMF has been organized at the state level for the D-PSU Environment Experts. Trainings on environmental management aspects have been organized at the district level for mandal resource persons and at mandal/village level for GP/GPWSC and other habitation level stakeholders. The aspects covered in the training include source and catchment area protection, solid and liquid waste management and water quality monitoring. A state level training institution (Environment Protection Training and Research Institute – EPTRI) has been identified for organizing state and district level trainings for the D-PSU Environment Experts, Section Officers, etc. However, an MOU/Contract with EPTRI is yet to be signed. In addition to this, it will be useful for the project to identify other training resource institutions (ESCI, WALMTRI, etc.) and also organize an exposure visit of the D-PSU Environment Experts to Mahaboobnagar.

Source sustainability and groundwater recharge: In order to help ensure source sustainability, the measures identified during the last mission for strengthening the process of identification of sources are being implemented. These include identification of a minimum of 2 points through geo-physical survey, certification of the identified points by the D-PSU Environment Expert and the Assistant Executive Engineer, community consultation, and sign off on the final source selection by the Project Manager and RWSS Superintending Engineer. The State Technical Agency constituted by the Government of Andhra Pradesh (with members from the RWSSD, CGWB, CWC, Ground Water Department, Irrigation Department and NGRI) has reviewed and provided clearance for all the sources under the APRWSS project. The failure rate of bore wells during drilling is reported to range from 10-25% 6. While there is no

6 Adilabad – 15%, Karimanagr – 20%, Mahaboobnagar – 25%, YSR Kadapa – 20%, Prakasam – 10% and Visakhapatnam – 10%.

66

information available on the failure rate after drilling and pump installation, this is likely to be significant. For example, it is reported that about 10-15% of the sources have failed after pump installation in Mahaboobnagar (this percentage is likely to increase further as the dry season advances). Hence, there is a significant need to implement groundwater recharge measures.

A list of 857 habitations has been prepared by the PSU where groundwater recharge structures are necessary (including habitations falling in over-exploited and critical groundwater basins). The feasibility of recharge structures in these habitations was assessed by the Andhra Pradesh State Remote Sensing and Application Centre (APSRAC) and 11 structures have been recommended. The feasibility of these structures and their potential for recharging the scheme sources is being re-examined by the PSU. Also, as was recommended during the last mission, in addition to area recharge (watershed) measures, options for point recharge of sources need to be explored. A meeting was held with the Director, Groundwater Department (GWD) on the technical options and experience on point recharge in the state. There is limited information on implementation and performance of point recharge in the state. In view of this, the following action plan has been agreed on groundwater recharge structures:

The PSU Environment Expert will compile a database of the schemes with source failure (after pump installation) including details on date of drilling, yield, date of failure, possible reason for failure, action needed, etc. This database will be updated monthly.

The PSU Environment Expert will consult with key institutions (Central Ground Water Board, the APFMGS network, etc.) that have experience in point recharge in the state for information on the technical options available, implementation experience, feedback on performance, etc.

A priority list of sources and structures for point recharge will be identified both on basis of requirement and feasibility by the D-PSU Environment Experts. A technical feasibility assessment by Geologists of the RWSS/Ground Water department will be undertaken. Most of the structures are likely to cost under Rs. 6 lakh and will hence be executed through community contracting.

An integrated water resource plan is being developed by the PSU for one district – Karimnagar. The draft of this document has also been shared with the Bank team. While the PSU has put in considerable effort to draft the document, there is a need to strengthen it further (in terms of including hydro-geomorphological maps, data on groundwater recharge, and recommended actions) in order to make it useful for planning of future RWSS schemes. As the Groundwater Department is engaged in monitoring of water levels and quality, it may be useful to establish relevant linkages (integration of available data, information on technical options for groundwater recharge, etc.) with the Department in this context.

Water quality: Water quality testing of all existing sources in the project habitations is being undertaken twice in the year (pre and post monsoon) for bacteriological and once in the year for chemical parameters. The samples are tested in the sub-divisional laboratories of the RWSS Department. The system for communicating the test results to the GP-WSCs/community and maintenance of records of the test reports in the GPs needs strengthening. Training on water quality monitoring and surveillance has been provided to mandal resource persons and to the GP/GP-WSCs at the district and mandal/village levels.

Water quality testing of all scheme sources is reportedly being undertaken and the water quality reports are included in the DSRs. However, a quick review of the DSRs in one district showed that there are a few gaps – the water quality report is missing, there is no information on action taken in cases where the parameters are close to or have exceeded permissible levels. In view of this, the following action plan has been agreed on water quality testing:

The PSU Environment Expert will compile a database of the water quality test reports of all schemes.

67

A priority list of sources will be identified, based on a review of the database, where the parameters are close to or have exceeded permissible levels for remedial action.

The action required to be taken will be identified on a case-by-case basis including differentiated use, dilution through recharge structures, installation of appropriate treatment system, identification of distant safe source, etc.

Key actions:

Capture information on integration of environmental appraisal into scheme planning in the project MIS – by Sep 30, 2013.

Sign MoU with EPTRI (or another suitable training institution) for providing training on environmental management aspects, organize exposure visit of D-PSU Environment Experts to Mahaboobnagar – by August 2013.

Detailed action plan for point recharge structures for prioritized sources – by end of Aug 2013. Compile database of water quality test reports of all schemes and develop remedial action plan

for sources where the parameters are close to or have exceeded permissible levels – by end of August 2013.

68

Annex-9: Social Development, Capacity Building, Tribal Development

I. Community Mobilization and Capacity Support Facilitation

1. The project’s strategy to reach the people is premised on Community Driven Development approach with particular emphasis on Decentralization. Essentially, communities are mobilized into group action through a Water and Sanitation Committee (WSC), which would serve as a key vehicle for community participation. These Committees are established as sub-committee of the respective GPs thus being endowed with formal legitimacy, but, as a broad based institution comprising both elected and non-elected representatives. Thus, GP provides an enabling environment and empowers the communities, GPWSC shoulders primary responsibility for the management of RWSS facilities. These grassroots institutions are supported by Project Support Units (PSU) at state level and district level, who not only facilitate in campaigning the project’s approach but also ensuring adequate and appropriate technical and institutional support for GPWSCs by drawing upon the help of the state department (district/ division levels) and non-government support organizations (SOs). The latter comprise Self Help Groups and their Apex Body, Village Organization (functioning under Director, DRDA). These institutions and implementation arrangements have been quite successful in operationalizing the following key elements underpinning the project intervention strategy: (i) self-selection and demand driven; (ii) participation; (ii) inclusion and equity; (iii) transparency and accountability; (iv) cost sharing; (v) linkages, alliances and networking. Following the previous mission’s agreement, the project has now made a special provision – of entrusting all works worth less than Rs 600,000 to GPWSCs- which has spurred the community involvement enormously and intensively in smaller habitations.

2. Three broad categories of interventions in place: (i) SVS-small, with works less than Rs 600000, being fully managed by GPWSCs; (ii) SVS - works costing more than Rs 600,000, being contracted out by the DPSU with overseeing participation by GPWSCs; and (iii) MVSs wherein GPWSCs are to be mobilized into a Scheme Level Committee (SLC). In addition, the project has a category- ‘augmentation’- minor interventions of repairs and replacements. Community participation in smaller SVS has been quite good and the results too are quite evident – schemes completed in short time; water has started flowing; and 100% coverage of household connections. The SVSs costing more than Rs. 600,000 are struggling harder as the project has to interface with both the contractor and GPWSCs – whose composition may change following the local elections to GPs in July/August 2013. Till the elections, the Special Officers officiate as President of GPWSC in place of Gram Panchayat Sarpanch and the GP secretary acts as the Secretary of the GPWSC. In case of MVS, community mobilization is just being initiated as GPWSCs and SLCs are yet to be formed. The project is striving hard to come to terms with the issue of dealing with a large number of habitations spread over a distance and lack of sufficient social resources (only one Social Expert) at district level.

3. Major issues in SVSs relate to the following: (i) completion of civil works in all aspects including vertical valves, chlorination, bulk flow meters, as well as the construction of platforms and fencing of the facilities; (ii) conduction of trial runs and joint inspection; (iii) contract closures complemented by social audits and sustainability assessments; (iv) O&M planning and budgeting including identifying and training personnel, fixation of tariff, agreeing on mechanisms for collection; (v) Establishing Help Line including arrangements to address defect liability. The project has another enormous challenge, in re-orienting the new PRIs/ GPWSCs as and when they are formed (elections are due in July/August 2013), expected somewhere around August 2013. The mission has discussed with the DPSUs and drawn concrete actions to address these issues. In the case of augmentation, the project provides for some rehabilitation and/ or augmentation works, which need to be taken upon an urgent basis or to address the situations of crisis. These works should not be taken without the involvement/ endorsement of the communities. This would help in not only in ensuring community ownership and sustenance. In the case

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of MVSs, the project is still in its infancy in addressing community mobilization. Even the DPRs may require a re-visit in the case of ‘extension’ schemes so as to ensure that interventions are planned comprehensively taking into account all the villages – currently being served, proposed under the project and prospective (See Annex-5 Technical Aspects). Decisions will have to be made on how a SLC will be formed – with or without the existing village representation. Lastly, progress on household sanitation is quite poor and measures to address this have been agreed upon.

4. Institutional and Implementation Arrangements. The overall institutional arrangements comprising PSUs performing the role of a facilitator; RWSSD as a technical support agency; and PRIs and communities as implementation management entities, and SHGs as support organizations, seems to be quite appropriate. However, there are some issues requiring attention. One, there are large number of vacancies at the field staff levels (more than 50%), particularly Junior Engineers, and this adversely impacts timely progress of civil works in the project. To address this problem, it was agreed that the project will enlist the services of external individual technical consultants. Terms of Reference as well as deployment modalities will be developed by PSU. Second key issue relates to better utilization of the District and Mandal Resource Persons currently being deployed under NBA. This human resource can be utilized for arranging the implementation support to GPWSCs in both water supply and sanitation activities. For this to happen, following are essential: (i) re-defining the TOR with outputs being explicit from the resource persons; (ii) building the capacity such as to enable them deliver the outputs; (iii) appropriate mentoring and supervision; and (iv) re-visiting payments and other allowances. Investing in these Resource Persons would go a long way in building local capacity in Watsan sector in the state. 5. Self Help Groups as Support Organizations. The project has identified 2370 Self Help Groups (SHGs) as Support Organizations (SOs). There are a good number of villages where in SHGs are not existing or rather dormant. The mission does recognize that SHG members certainly can add value to the project, especially in mobilizing women. Some SHGs have reasonable skills in record keeping and accounting and are assisting the GPWSCs in these matters. However, most SHGs do not have the necessary skills and capacity required for the management of Watsan activities; in particular that of community operation and maintenance of water supply projects and behavior change communication skills. Given this, it would be prudent to enlist the services of NGOs/ External Agencies at district level for galvanizing the project activities.

II. Tribal Development

6. Given its emphasis on community centered and inclusive approach aimed at improving drinking water and sanitation services in the rural areas of the state, as well as in accordance with the Bank’s safeguard policy (OP 4.10), the project has a special focus on tribals in Schedule V areas within the state (Adilabad and Vizag districts). The tribal habitations are quite typical – small sized (40-60 households), mostly Kachcha houses and living quite closely occupying less space. They are located in remote areas, nearer to forests, with no/ poor roads rendering accessibility very difficult. Given this uniqueness, following upon the previous mission’s agreements, project has made changes into the strategy for reaching other tribals. Additionally, the project has extended its outreach and has covered tribal habitations in the non-schedule areas as well, in particular, Mehaboobnagar. Mission would like to compliment the project management for this effort.

7. As on 30 April 2013, the project has planned to cover in all 3672 habitations spread across the six districts. Out of this, 684 (19%) are tribal habitations. In Adilabad, project would cover 274 tribal habitations, which account for 45% of the total coverage in the district. Likewise, in Visakhapatnam district. Tribal habitations account for 30% (159 out of 612) of the total. Similarly, 201 or 33% are tribal habitations in Mahaboobnagar. The project interventions in tribal habitations will benefit a total of

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211,000 tribals (42140 households). Total financial outlay for Tribal Development Plan is INR 962 million, 15% of the total. Overall, TDP is progressing quite well.

III. Capacity Building and IEC Activities

8. Capacity Building: Efforts have been made by the project to undertake capacity building activities across all the levels of stakeholders in the project. The following is the number of trainings conducted and people trained across the state till date

Level Types of Trainings

Stakeholders covered

Number of Training Events

Number of People Trained

State level 7 19 390

District level 6 D-PSU, RWSSD units, ZP members etc.

20 911

Mandal/ Village level

10 GPs, GPWSCs, Schools, SHGs,

1078 49,274

Total 1117 50,575

9. Trainings are conducted on topics related to: project principles, environmental management, community led total sanitation (CLTS), O&M, community participation and empowerment, book keeping, preparation of GPWSC by-laws, engineering aspects, procurement, source protection, survey and design of schemes, exposure visits to good practices etc. The PSU has roped in expertise of three key institutions-(i) APARD for social mobilization and CLTS trainings, (ii) Engineering Staff College India (ESCI) for engineering trainings, and (iii) Environment Planning and Training Resource Institute (EPTRI) for developing modules and training of trainers.

10. While these efforts have been good and useful so far, there is a need to focus more on the content, method and target group for capacity building on current needs – (i) sanitation and hygiene promotion, including technical options (ii) O&M of SVS/ SSVS schemes; and (iii) source protection/ sustenance. PSU needs to explore mechanism as to bring the three existing apex institutions into building the capacity of the grassroots functionaries on a TOT mode. Training modules need to be developed and the schedule be drawn such so as to align with the scheme cycle. DRPs and MRPs should be enabled to steer the capacity building efforts in the district.

11. Information Education and Communication: IEC activities have been implemented across all the districts in the project. These comprise of activities such as (i) street plays (ii) posters (iii) door stickers (iv) exhibitions in local fairs (v) radio jingles etc. About 2484 such activities have been carried out till date and another 8610 activities are planned for 2013-14.

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12. However, there is a need to develop an appropriate IEC strategy for the remaining part of the project activities, addressing issues related to: stage of projects in each Mandal/ district, messages to be communicated for the given stage of projects, target group and most appropriate means for communicating messages. PSU could hire services of a Communications Expert in identifying IEC needs and developing an appropriate strategy. While the existing staff and village level organizations (especially SHGs) could be trained and used for IEC activities, there is a need for a dedicated local institution for promoting appropriate CB and IEC activities for MVS activities. The PSU could consider hiring of appropriate local organizations for these activities in villages covered through MVS scheme. The field visit notes are in Appendix 9.1

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Appendix 9.1 Field Visit Notes on Social Aspects

1. Field Observations

A. Madgul MVS Scheme – Mahaboobnagar District

The Maisigandi Thanda GPWSC is found to be active and participating in project activities. The villagers are ready to pay their capital cost contributions. This opportunity need to be utilized by DPSU through conducting regular meetings and awareness campaigns. The GPWSC at Anumas Palli is found to be not so active; members are not clear about the scheme; there is a need to reconstitute this committee with proper representation of all sections and orient them about the project. Training of GPWSC members in proper record keeping (meetings, resolutions, cash book, etc.) needs to be taken up.

The location of sump at Gadda Meeda Thanda is yet to be finalized. It appears that the present location is in private land. Local enquiries reveal that this land belongs to the Maisigandi Sarpanch who belongs to ST category. Since the project does not allow for donation of land by vulnerable groups such as STs, an alternative location needs to be identified. Again local enquiries reveal that there is Government land at about half a kilo meter away towards Mudvin. This may be used for construction of the sump. As the terrain appears to be relatively flat, this may not pose serious design issues. One notable point is that the Maisigandi Sarpanch is willing to donate the land, though, he belongs to ST category.

The ownership of the site proposed for OHBR at Pyramid junction need to be checked and confirmed. During the field visit this could not be confirmed as there was no one in the village.

The source at Mudvin is an existing pump house with a sump. This compound needs to be leveled and tree planting be done. As the site is small, suitable trees/plants which will not harm structures be planted. Presently, the valves in this compound are located in open pits. There is a need to build proper valve chambers around these valves and cover them properly. Presently the drain from the compound is an open pipe placed directly under the gate. This needs to be replaced this with a proper pipe/ channel connecting to the nearest drain.

B. LR Palli MVS Scheme – Cuddapah District

The GPWSC and villagers of Maddireddygari Palli are quite anxious to know as to when this scheme will start. They have already paid capital cost contribution and are cooperating with the project personnel. There is a need to capitalize on this, as the village is a scarcity village without a proper water source. The villagers of BC Colony of Ramapuram Mandal are also eagerly waiting for the scheme. Though all the inhabitants of this colony are labourers of BPL category, they are ready to pay capital cost contribution. Social mobilization and health and hygiene education campaigns need to be

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taken up in these villages. GPWSC need to be formed immediately and contributions be collected.

Private land is required for OHBR at Kummara Palli and the owner is ready to donate the land. DPSU needs to get this done on a stamp paper as suggested in the RPF. All the other facilities required are planned on government land.

C. Kondapuram MVS Scheme – Cuddapah District

The present pump house at Gandikota reservoir is being used for this scheme. Enquiries reveal that forest land is required for building GLBR on the hillock at Gandikota reservoir. This needs to be obtained from the forest department through proper allotment. The process of procuring this land need to be started immediately so that land is available before construction activities start.

The GPWSCs of this scheme were formed long ago and some of the members are either not available or not active due to time lag. It would be better if these committees are reconstituted as the implementation will start soon. Upto 50% capital cost contributions were collected from villagers. The R&R colonies of Gandikota project are included in this project. The SPSU needs to decide on whether contributions need to be paid by Gandikota project impacted and resettled households.

D. Ramkur MVS Scheme – Prakasam District

The recently reconstituted GPWSCs, both Ramkur and Lakkavaram, are quite active and vocal. The members have good knowledge of the scheme and they were able to mobilize the community well. Most community members have no issues in contributing to capital costs. They are willing to pay for the O&M costs too. The GPWSC records are maintained properly. There is a letter from MRO allocating government land for the water treatment plant. The GPWSC members made several suggestions such as solarisation of pumping in view of low electricity availability in rural areas and fencing of treatment plant to protect it. The District Social Wing has done a good job, in organising communities and creating awareness, with the help of Engineering Staff.

2. GPWSCs and Capital Cost Contributions

The project reports that GPWSCs were formed in 2081 project villages and bank accounts opened for all these GPWSCs. A total of Rs. 2.29 crores community contribution collected against 13.11 crores. Prakasam district has topped in collecting contributions towards capital cost with nearly half (1.2 crores) of the collected contribution coming from this district. As the Gram Panchayats are dissolved, presently the Special Officer officiate as President of GPWSC in place of Gram Panchayat Sarpanch and the GP secretary acts as the Secretary of the GPWSC. Presently these two members of the GPWSC are signatories to the GPWSC account. With this kind of arrangement, the community do not have any control over the funds collected from public towards capital cost contribution. However, the situation will change after elections are held for the Gram Panchayats. The mission observed that some of the GPWSCs are not active and advised the project to reconstitute these GPWSCs with active members chosen during Gram Sabha and train them.

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3. Project Scheme Cycle

The mission noted that the project more or less follows the suggested scheme cycle in case of SVS. Whereas in case of MVS, in some of the schemes, GPWSCs are yet to be formed even after procurement is nearly complete. This is attributed to multiple number of habitations and lack of sufficient social resources (only one Social Expert) at district level. The mission advised that the Mandal Resource Persons, under the NBA program, be made use of for such field activities by paying them expenses and incentives.

4. Self Help Groups as Support Organisations

The project has commissioned 2370 Self Help Groups (SHGs) as Support Organisations (SOs). These SOs are active in many of the project villages. The mission noticed that many of the SHG members do participate in the project activities and mobilize the women to participate in meetings. Some of these SHG members have reasonable skills in record keeping and accounting and are assisting the GPWSCs in these matters. Most of the SHG members do not have the necessary skills and capacity required for Watsan projects; in particular community operation and maintenance of water supply projects and behaviour change communication skills. However, building their capacity and skills to the required level will take time. The mission advised that while building capacity of SOs is required, appointing NGOs/ External Agencies at district level may be considered to fast track the social development activities. Training programs to SOs need to be conducted by expert resource persons with Watsan experience. There is a need for targeted training programs at Mandal, district and regional level.

5. Baseline Surveys

The SOs have completed baseline survey in 1579 habitations. The mission observed that this data collected is yet to be processed. Presently baseline data is being collected using a mobile application. The Indira Kranthi Patham field staff are trained in using this application. This data is being uploaded to a server at IKP. The mission advised the project to obtain access to this data, analyse it and use the same in making Village Water and Sanitation Plans. During the field visits, some of the SOs have reported to the mission that they were not paid for the baseline survey, while some SOs have reported that they were yet to be paid their fee. There is some delay about the payment of remuneration to SOs. The mission advised the project to sort out such payment issues and to reduce delays in making payments.

6. Social Development Capacity

The mission noted that all Social Specialists at state and district level are in place. However, the project Watsan social capacity is limited with the District Social Specialists (except Prakasam) and the State Social Specialist having come from non-Watsan background due to non-availability of Watsan sector experts. It may be advisable to have an NGO or Consulting agency to build this capacity. The capacity of these social specialists and SOs needs to be built through continuous training programs at various levels. These training programs need to

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be conducted by expert resource persons with Watsan experience. There is a need for targeted training programs at village, Mandal and district level.

7. Securing Lands

The project does not entail social safeguards issues such as Land Acquisition and Resettlement. The social aspects that are connected with the project are of community mobilization and behavioural change, which can go hand in hand with the capacity building and communication strategy. The mission observed that no private was land was acquired for project purposes and many private land owners are willing to donate land voluntarily for project needs.

8. Tribal Development

The project has a special focus on tribals in schedule V areas within the project districts. While tribals are found in all the project districts, they are more predominant in Adilabad, Mahaboobnagar and Visakhapatnam districts. In order to ensure the development of Scheduled Castes and Tribes, the Government of Andhra Pradesh has enacted the Andhra Pradesh Scheduled Castes Sub-Plan and Tribal Sub-Plan (Planning, Allocation, and Utilisation of Financial Resources) Act, 2013. This acts aims at promotion of equity among the Scheduled Castes and Scheduled Tribes. This act mandates every department in the state has to prepare an exclusive Annual Action Plan, SC Sub-Plan and ST Sub-Pan, in consultation with the social welfare/ tribal welfare officials. Presently the APRWSSP is preparing such sub-plans for the project funds and communicating it to the relevant departments.

As on 30 April 2013, the project has interventions in 3672 habitations out of which 684 (19%) are tribal habitations. The project is providing water supply to 608 habitations in Adilabad district out of which 274 (45%) are tribal habitations. The project is providing water supply to 617 habitations in Mahaboobnagar district out of which 201 (33%) are tribal habitations. Likewise, in Visakhapatnam district 30% (159 out of 612) tribal habitations are being provided with water supply. The project interventions in tribal habitations will benefit a total of 2, 10,701 tribals (42140 households). As on 30 April 2013, the project is incurring of total cost of 656 crores out of which 96.22 crores (15%) is being spent in the tribal habitations. The details of project interventions in SC and ST habitations is given in Annexures A and B.

Generally, the tribals have traditional leaders, who would decide on community related matters. During the mission, it was noticed that once these tribal leaders are sensitized towards the project and its requirement, they would convince the community to participate in the project activities. The mission noted that these tribal leaders are willing to cooperate with the project officials and collect the capital cost contributions at a short notice and within a short period. They have expressed their readiness to take over the completed schemes and operate and maintain them properly, if trained. With regard to tariffs and tariff collection, the tribals are willing to pay O&M costs for sustainable schemes. As suggested by the last

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mission, the specific capacity building activities could focus on the following aspects for improving the quality of works and building local capacity: exposure visits to create opportunity for experiential learning for tribals; reorientation of engineers in human, cultural and social aspects of water and sanitation,

understanding the issues of technology options in the context of community needs, the legal and constitutional framework of Schedule V areas and tribal rights and entitlement;

building the capacity of support organizations (SOs) on community based planning, tribal rights and entitlements, government orders and policies relaxing operational norms in Schedule V areas, local institutional strengthening, preparation of O&M plans, etc.; and

training for masons, focusing on latest cost effective and appropriate construction practices, based on use of local material for construction of toilets, drains, soak pits, etc.

9. Disclosure

The DPSUs were advised to disclose project related information in the villages at prominent places through charts, wall writings and display boards.

10. Sustainability

The mission noted that for sustainability, O&M training need to be given to the GPWSCs. This training should include O&M Planning and Budgeting. For proper O&M, the GPWSCs should be involved during trial runs. Pre-final payment to contractors be made after joint inspection and trial run.

The mission observed during field visits that convergence of departments like education, health, rural development, women and child development and welfare of SCs and STs is not as anticipated by the project. There is a need for DPSU staff at field level to work closely with these departments and Mandal Resource Person for sustainability. The project was advised to facilitate convergence of these departments for sustainability.

11. Other

The Village Organisations (SHGs) as Support Organisations are active in many of the villages. They do participate in the project activities, but do not have the necessary skills and capacity required for Watsan projects. Building their capacity and skills to the required level will take time. The DPMUs social capacity is limited with the District Social Specialists (except Prakasam) and the State Social Specialist having come from non-Watsan background due to non-availability of Watsan sector experts. It may be advisable to have an NGO or Consulting agency to build this capacity. The capacity of the social specialists and SOs at all levels needs to be built through continuous training programs at various levels.

The DPMUs were advised to disclose project related information in the villages at prominent places through charts, wall writings and display boards.

IEC material need to be prepared using a well designed communication strategy. Presently such kind of material is not seen at village level.

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The DPMUs need to fill in the social format given for each sub-project and submit for verification. These formats need to be filled in for all the MVS schemes immediately.

12. Key Actions

The following are the key actions to be taken up by SPSU and DPSUs. The mission advises the project to prepare an Action Plan to implement these key actions and share the same with the Bank.

Reconstitution of GPWSCs Training of GPWSCs Commissioning the services of Mandal Resource Persons Fixing monthly expenses and incentives to Mandal Resource Persons Capacity building of SOs Drafting the services of NGOs/ External agencies Processing and analysis of baseline data Payments to SOs; remuneration and fee for baseline survey Trainings to state and district Social Specialists and SOs Capacity building of Tribal communities Disclosure of project information at village level O&M training to GPWSCs Convergence with stakeholder department

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Attachment A

DETAILS OF TRIBAL ACTION PLAN OF APRWSSP (EAP) Rs. in Lakhs

District

Cat

egor

y

Works sanctioned Works completed Balance works in progress

No. of works

No. of Habs.

Est. Cost (Rs. in Lakhs)

Population as per 2001

Census

House holds No.

No. of works

No. of Habs.



Census

House holds No.

No. of works

No. of Habs.



Censusholds No.

Adilabad

SVS 262 262 2540.00 74899 14980 111 111 373.41 42542 8508 151 151 2166.59 32357

MVS 1 12 450.00 3338 668 0 0 0.00 0 0 1 12 450.00 3338

SUB TOTAL : 263 274 2990.00 78237 15647 111 111 373.41 42542 8508 152 163 2616.59 35695

Karimnagar SVS 33 33 474.90 9952 1990 0 0 0.00 0 0 33 33 474.90 9952

Mahaboobnaga SVS 201 201 1725.75 43464 8693 42 42 330.81 16719 3344 159 159 1394.94 26745

Prakasam SVS 13 13 379.20 11150 2230 10 10 317.14 7805 1561 3 3 62.06 3345

VisakhapatnamSVS 124 124 2940.20 52561 10512 1 1 10.50 415 83 123 123 2929.70 52146

MVS 5 35 1065.00 13509 2702 0 0 0.00 0 0 5 35 1065.00 13509

SUB TOTAL : 129 159 4005.20 66070 13214 1 1 10.50 415 83 128 158 3994.70 65655

YSR Kadapa SVS 4 4 46.57 1828 366 1 1 7.27 373 75 3 3 39.30 1455

GRAND TOTAL : 643 684 9621.62 210701 42140 165 165 1039.13 67854 13571 478 519 8582.49 142847

Attachment B

DETAILS OF SCHEDULED CASTE ACTION PLAN OF APRWSSP (EAP) Rs. in Lakhs

Sl. No. District

Cat

egor

y

Works sanctioned Works completed Balance works in progress

No. of works

No. of Habs.



Census

House holds No.

No. of works

No. of Habs.



Census

House holds No.

No. of works

No. of Habs.

Est. Cost

1 Adilabad SVS 37 37 313.88 18095 3619 23 23 161.74 14625 2925 14 14

2 Karimnagar SVS 45 45 615.88 36394 7279 5 5 115.71 18904 3781 40 40

3 Mahaboobnagar SVS 53 53 223.12 74439 14888 46 46 125.15 73100 14620 7 7

4 Prakasam SVS 38 38 1191.78 19215 3843 25 25 948.95 11845 2369 13 13

5 Visakhapatnam SVS 8 8 157.50 3385 677 1 1 48.07 1256 251 7 7

6 YSR Kadapa SVS 29 29 277.50 8726 1745 11 11 153.29 4616 923 18 18

GRAND TOTAL : 210 210 2779.66 160254 32051 111 111 1552.91 124346 24869 99 99

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Annex 10- List of Villages visited by the mission

District Villages VisitedMahaboobnagar Mudvin

Kanugubavi Thanda Gaddameeda Thanda Maisigandi Anumas Palli Doddapalli Habitation Valdanda Mandal Pilligandla Tanda Vankatampally Village Chowdammagutta Thanda

Kaddapa Lakkireddy Palli Thurakapalli Madireddygari Palli BC Colony of Ramapuram Mandal Kummara Palli Junction Koththa Palli Junction Kotha Road Junction Odiveedu Kondapuram Lavanur Bedudur

Prakasam Ramkur Lakkavaram

Visakhapatnam Hastinapuram habitation Parwada Mandalam Reddipalli Village Padmanabham Mandal Hasthianpuram Village Padmanabham Maddi and Reddipet of Padmanabham Mandal Existing CPWS of Paravad Villages Narava Village

Karimnagar Kothapeta Village Sundagiri hamlet Hasthianpuram Village Banjarupalli Village,

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