India - Third Bombay Water Supply and Sewerage Project

Document or The World Bank FOR OFFICIAL USE ONLY dZ/. I? ;16 Z P C 4. i)Zo3tW& Report No. P-4412-IN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONTAL BANK FOR RECONSTRUCTION AND DEVELOPMEIT AN) THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO TUE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AOWUNT OF US$40 MILLION AND A PROPOSED CREDIT OF SDR 105.5 MILLION TO INDIA FOR THE THIRD BOMBAY WATER SUPPLY AND SEWERAGE PROJECT November 19, 1986 This document has a restricted distribution and may be used by recipients only in the performanec of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS (As of November 19, 1986) US$1.00 = Rs 13.160 Rs 1.00 = US$0.0760 Rs 1 million = US$75,989 The US Dollar/Rupee exchange rate is subject to change. Conversions in the Staff Appraisal Report were, except as otherwise noted, made at the rate of US$1 to Rs 13. FISCAL YEAR April 1 - March 31 Abbreviations and Acronyms BMC - Bombay Municipal Corporation (or Municipal Corporation of Greater Bombay) GOI - Government of India COM - Government of Maharashtra WHO - World Health Organization WSSD - Water Supply and Sewerage Department of BMC  FOR OFFICIAL USE ONLY INDIA THIRD BOMBAY WATER SUPPLY AND SEWERAGE PROJECT LOAN, CREDIT AND PROJECT SUMMARY Borrower: India, acting by its President. Beneficiaries: Government of Maharashtra (COM) and Bombay Municipal Corporation (BMC). Amount: Bank Loan: US$40.0 million IDA Credit: SDR 105.5 million (US$145.0 million equivalent) Terms: Bank Loan: Repayment over 20 years including five years' grace, at applicable rate of interest. IDA Credit: Standard Relending From Government of India (GOI) to COM as part of central Terms: assistance to states for development projects, on terms and conditions applicable at the time, for relending to BMC at 8.75% rate of interest, with repayment over 25 years, including 5 years grace. Project The project would: (a) provide an increment of 455 million Description: liters of water per day to help reduce Bombay's c_.rrent deficit; (b) expand Bombay's sewerage system; (c) provide site specific sanitation and water supply facilities to serve the needs of the urban poor; and (d) further strengthen the operational efficiency of BMC's Water Supply and Sewerage Department (WSSD) in areas including revenue collection, financial planning and audit controls, and water waste and leakage reduction. The project would have the following main impact: water shortage would be reduced from present 36% to 18% of demand, and with particular benefit to the poor, who are less able to afford privately-owned facilities; investment and operational designs and improve- ments in leakage detection, repair, and financial management capacity. In addition, BMC/WSSD, as a well-run public utility under full municipal control, would provide sector leadership in the Region through the demonstration of increasingly efficient financial management and operation to other conurbations. Project risks are considered low because this would be the third Bank operation in the water supply and sewerage sector in Bombay and would be executed by BMC, which is staffed with well-qualified and experienced personnel. However, the project provides for additional professional and training support to enable BHC to further refine and strengthen its project management capability. This document has a restricted distribution and may be used by recipients only in the performance of their officialduties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costa: Local Foreign Total ----- (US$ million)------ Water Supply 134.6 32.6 167.2 Sewerage 23.0 2.9 25.9 Site Specific Facilities for Slum Areas 4.1 0.4 4.5 Technical Assistance and Vehicles 5.4 4.4 9.8 SubtotaL 167.1 40.3 207.4 Physical Contingencies 15.9 3.6 19.5 Price Contingencies 61.6 15.8 77.4 TOTAL PROJECT COST 1/ 244.6 59.7 304.3 Financing Plan: Local Foreign Total -----(US$ million)- IBRD/IDA 2/ 125.3 59.7 185.0 BMC internal cash generation 119.3 - 119.3 TOTAL PROJECT COST 244.6 59.7 304.3 Estimated Disbursement: Bank FY 1987 1988 1989 1990 1991 1992 1993 1994