India - Maharashtra Water Supply and Sewerage Project

Document of The World Bank FOR OFFICIAL USE ONLY Report N..7202 PROJECT PERFORMANCE AUDIT REPORT INDIA MAHARASRTRA WATER SUPPLY AND SEWERAGE PROJECT (CREDIT 899-IN) April 13, 1988 Operations Evaluation Department EXCHANGE RATES Currency Unit - India Rupees (Rs) Appraisal Year Average - US$1.00 Ra. 8.60 Average Over Project Period - US$1.00 - Rs. 9.30 FY 1987 1978 1979 1980 1981 1982 1983 1984 1985 Rs 8.86 8.42 8.06 8.03 8. 17 9.29 9.87 10.69 12.30 Ur * MALSW ONLY THE WORlD SANK Wauwon. DC. 2033 USA April 13, 1988 MENDRANDUM TO TSE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Perforance Audit Report on India Maharashtra Water Supply and Sewerage Pro jec. (Credit 899-IN) Attached, for information, io a copy of a report entitled "Project Performance Audit Report on India Maharashtra Water Supply and Sewerage Project (Credit 899-IN)" prepared by the Operations Evaluation Department. Attachment This docuumn has a eticed disuibuto and may be Md by alpWM t* ina te perftraace of their olBcial dudes. I cmmou my no othrwnise be dbicos wihou Word Boak au*hdudon. m O. N1 AL , lNDIA: aaMAIanvA8U gggU ggDLT AM 8EA M RJECT Preface ...................................................... £ Iasic Date Sheet ......................................... 11 Evaluatloft 89mmry ..................................... 1 PROJECT PERPORMANCE AUDIT HBERANDW i. PROJECT DESCRIPTIOI ................................. 1 ackground ............................................... 1 Objectiv~ ......... ý;.................................*... Project DescrLption .............................. 2 lmpleetation ...................eee. e.e u............ 3 Projet Cost and Disbursmt ......................... 4 Procurement ..e......................................... 4 Performace of Conultants, Contreste .................. 5 Institutdoal Develop1mt ad rerfoane ................ 5 Operations and Nelaa .............................. 6 FI-anacts Perfoanr e ................................... 6 Perfomance of Bank *..e............................... 7 Conclusions and Leso*s .............................. 7 Borro~erts Comm~ns................... 9 Attaimteats A & I - Coment ftm the sorse~................... 10 STAP? PROJECT C~=LETIO 1RER? A. Backgroud and Contetc ................'................. 14 5. Project Design, TbPlem.~i~ and C4ete ................... 14 C. Operating Performace ..................................... 16 D. lnanlal Pörformane .................................... 18 1. Institutional Perftosm e .................................. 19 r. EconoicAnalPs.s ...................................... 20 C. Concluslons .............................. e••••..e•• 20 03E0 'S~ PROJECT C0ILETI~ 0 RERT ......... ................... 22 This document has a usmisd diåndbutos and bs il b~ ad aiee -a*b thu perfo,euns of thdir oftcial duties. Its cotents ~ n e wiad bo dil uhbw ~ W bak mbadto. II PROJECT MEIHan AU_DIT REWOR 1IAM mSARASBTRA WATER SUPPLY AND SEERAGE PROJECT (CREDIT 899-IN) PREFACE This report presents the results of a perfomance audit of the Maharashtra Water Supply and Sewerage Project for which Credit 899-IN was made to the Goverment of India (001), with on-lending to the Govervment of Maharashtra (OCR) and the Maharashtra Water Supply and Sewerage Board (MV888). The Credit of US$48.0 million equivalent was approved May 1, 1979, and became effective November 9, 1979. The original closing date of the Credit of June 30, 1984 was extended once to June 30, 1985, by which time the Credit had been fully disbursed. Additional financing for project was provided by C. The Project Performance Audit Report (PPAR) is made up of an Evaluation Sumary and a Project Performance Audit Memorandum (PPM), both prepared by the Operations Evaluation Department, and a Project Complition Report (ICR) prepared by HSS. The PPAN Annex contains comments on the PCR prepared by the former Urban and Water Supply Division, South Asia Projects Department. The PCR was compiled on the basis of the Staff Appraisal Report (SAR) and research, combined with discussions with MWSS staff during a mission to Bombay in December 1986. OED has reviewed the PCR, the comments of Bank Group staff, Bank file'i, the project documents, and the transcripts of the meeting of the Executive Director's when the credit was approved. The audit also reviewed pertinent Bank Group reports on India, and interviews were held with Bank staff familiar with the project. In addition, the audit visited India in June 1987 to discuss relevant aspects of the project with 00 and MW88B officials and to tour the project works. The PPAN sumarises and supplemente the material found in the PCR and the PPAN Annex, and comments on aspects of the project that are not covered fully elsewhere. Following standard OD procedures, copies of the draft PPAR were sent to 001, GCN and MMSS for coments. Coments received from the Borrower and MUSS have been reproduced as Attachments A and B to the PPAN. uvAug Na8 m s Am= uso AM fagSNO tteedt eS-m ggApprtaal Lotuul or Total tajest coat (US$ .111.) 100.00 188.37 La oversua (2> - 88.37 Creatt a:n (08$ ml11.) 48.00 48.00 få Dshsed 48.00 48.00 comptUate of physteai components 9183 (3upected) Vater 111pp1y 3187 Sewage 3188 Tam Overr.a (2> Vatet Sapply * 792 (93 a•thaa vs. 53 mathe) Saurage * 1022 (107 mesthe vs. 53 soths) PA4sastal Pegformae 1s88 Sattaftar M.antelities: Post Insttuttenal Perforasac. Fair U---Se lat. of letura 92 182 for tISssj Lå LaAt eushange gate of US$1uls.S.60 at the ta of epprat sal. Ak A enshange rate at tm of apptaisal the 48 =4114 m U8$ -a equal to 413 mt114.. la. due to anchage e-anges during disburemnt the 48 ml114.. 08$ bese equivalent to 493 mttiite la. DueI to lower than aatt.Lpated asset value, and du. to tariLff tasresses. Not ••s-isuaed for unea4-p.14t4a duie to 1eek of data and fat that eim. projest eponensae n ot yat oammissteed. 1T1980 0.3 0.303 FY1981 7.7 3.903 V11982 30.8 19.815 111983 36.6 31.505 111984 48.0 39.700 111985 - 48.000 * Average enchage tate US$1 - 10.00 la. used. iii arilial Actual First mntion to Files Timetables 05177 Appraisal 12178 Negotiations 04179 Board Approval 05101179 Credit Agreement Date 06121179 Effective Date 09120179 11109179 Closing Date 06130/84 06/30185 Borrower and Quarantor Goverament of India Executing Agency Mabarashtra Water Supply & Sewerage Board Fiscal Tear of Borrower April 1 - March 31 MISSION DATA j 112- Moath No. of No. of Man- Date of Yar Wes Persons week& RsE Preparation 11/77 2 12/12177 Preparation 03178 0.5 2 1 07/26/78 Preparation 09178 1 2 2 09122178 Appraisal 11 - 12/78 4 3 10 04/17/79 Supervision 1 11/79 0.5 2 1 12120179 Supervision 2 01/80 0.5 1 0.5 02119180 Supervision 3 06/80 1 1 1 07102/80 Supervision 4 10180 0.3 1 0.3 11/18180 Supervision 5 03181 1.5 2 3 04117181 Supervision 6 12/81 1.5 2 3 01/20182 Supervision 7 07/82 1.5 2 3 09103182 Supervision 8 02183 2 2 4 03/25/83 Supervision 9 08183 3 1 3 09128183 Supervision 10 02/84 3 4 8 03123/84 Supervision 11 10184 3 2 6 01/04185 Supervision 12 02/85 0.5 2 1 03/21/85 JA Cr. 699-IN has generally been supervised together with Bombay Water Supply and Sewerage Projects I and II (Cr. 390-IN and Cr. 842-IN). Staff Input (SaS-weeks) "7 l PY79 FYSg FT81 FT82 gFY83 FY84 Y8 Total Preparation 13.4 13.5 26.9 Appraisal 55.5 1.5 57.0 Supervision 14.9 7.3 9.6 14.8 13.8 4.4 5.3 70.1 Iv PROJECT- PEffiffiit AUDIT REPOR INDIAS MAHARARTRA WATER SUPPLY AND SEWERAGE PROJECT (CEDIT _99-IN) EVALUATION SUtMART Introduction 1. The Nehars*htra Water Supply and Sewerage project, approved in May 1979 was the third IDA credit in the sector to the State of Maharashtra and the first outside the Bombay Municipal area to bring a regional approach to water supply and sanitation development in the state (PPAM, par&. 3). The ProJect and its Obiectives il. The Project, as a time slice of a comprehensive sector development plan for the Bombay Metropolitan Region, comprised the priority program for expanding and/or Improving the water supply and sewerage services in six municipalities and som 104 fast growing villages. It was designed to in- crease water supply capacities by 300 million litersiday to somes 2.4 million people Including appropriate transmission, storage and distribution facili- ties. Three municipalities were to receive new sewerage collection and dispo- a services and three were to have their facilities expanded (PPM, pares. 7 & 8). The project included provisions for the strengthening of the manage- ment, project Implementation and operating capaciti of the Implementing agency MMSSB, the benefiting mnicipalities and villages. iti. The principal objectives of the project were to ensure reliable and safe water supply and hygienic disposal of wastes for the population in the project area (some 60 of which were classified as being below the poverty line), the reduction In the Incidence of water borne diseases and the Iaprove- ment of operational and financial performance of the relevant sector agencies (PPM, pars. 11). Implemntation Exuerience IV. The project was Implemented by the newly created state bulk water supply agency HSSB. The original 4-112 years completion period was consider- ably exceeded, in fact, some construction work is still in progress (PPAM, par. 13). v. A variety of factors contributed to the delays, by far the most important being inadequate pre-appralsal preparation which resulted in major design changes (PPM, par&. 14). v1. As the project is not yet complete, no final actual cost figures are available. Latest estimates put the total cost of the project at US$188 million equivalent which represents an 882 increase over appraisal estimates. V Major design changes, high Inflatiin and land acqutsition were the main causes of cost increases (PPAM, pars. 14 and 15). ViI. Delays and cost increases notwithstanding the credit was fully disbursed one year after the original closing date, the government meeting all additional costs (PPAM, para. 16). Vill. Procurement generally followed Bank guidelines with no major prob- lems. Foreign contractorlsupplier response to bidding was limited largely due to the relatively small sise of Individual contracts (PPAM, par&. 19). Ix. The performance of consultants and contractors was generally satis- factory. Most construction delays were outside the contractors' control (PPAM, paras. 23 and 24). x. MUSSB has benefited considerably from its first major project exper- tence and emerged as a strong and competent agency. During Implementation it strengthened its various departments satisfactorily and launched an effective training program (PPAM, par"s. 27 to 30). xt. MWSSB's financial performance was satisfactory with the exception of mouting accounts receivable which is receiving attention. Tariff Increases have been effective and timely and accounting and auditing procedures satLs- factory (PPAM, pares. 32 to 34). xii. The benefiting municipalities failed to perform satisfactorily in their financial management. In recent times, appropriate tariff Increases did not take place largely due to consumer reluctance to pay in the face of delay- ed service Improvements (PPAM, par"s. 35 to 37). xit. The audit concludes that while the Bank" performance was good during supervision of the project, the appraisal did not fully identify the major risks Inherent in the project (PPM, pares. 38 to 39). Results stV. While not all elements of Lhe project are, as yet, fully operation- al, on completion it is likely to meet its objectives in terms of service provisiona and public health Improvements. However, due to construction delays the design horison slIki-gto be appreciably shortened (PPAM, pars. 40 and 41. xv. Institutional performance Improvements were largely achieved In MSSB, but .failed to materialize (as yet) in the municipalities (PPAM). Further, all round operational improvements are needed (PPAM, paras. 30, 32, 36 and 37. Sustainability avi. Based on currently reported efforts by the respective agencies to pursue necessary actions and subject to further timely expansion of the ser- vice facilities (follow-up project in preparation), the audit has no reason to vI doubt the sustaftability of the service benefits achieved under the project (PPM, pars. 41). Findings and Lessons swI. The audit concludes that the project concept was sound but inadequate preparation resulted in implementation delays and cost overruns which, In turn, delayed the service benefits and jeopardised the financial viability targets particularly in the mnicipalities (PPAM, pare. 43). xviiI. The lessons emerging from the project are virtually identical to those resulting from many silar Bank projects. While it is true that at the start, optimism always appears justified the Bank MMs- resist the temptation to enter into a premature appraisal and/or Implementation process (PPAM, par&. 38). 1 PROJECT PE1WANC AUDIT UR WAUM INDIAs R WATER SUPPLY AND SEWERAE PROJECT (CREDIT 899-IN) I. PROJECT DESCRIPTION Background 1. The State Government of Maharashtra (OW), in 1975 established the Bombay Metropolitan Regional Development Authority (BMRDA) to coordinate and promote regional Investment planning in the urban, transportation, telecom- munication and water resource development sectors. BMR, divided into six development sones (I to VI) covered the Municipal Corporation of Greater Bombay (WC) 13 Municipal Councils and about 1,500 villages and had a 1971 population of 7.8 million. 2. In the same year, the Enviromental Engineering Organisation (EM) was established with the responsibility for planning and iaplementing manict- pal water supply and sewerage projects, (excluding WC and other larger municipal corporations) and rural water supply and sanitation projects. In 1979 ENE was transformed into the Maharashtra Water Supply and Sewerage Board (MWSSB) with expanded responsibilities including operation and maintenance (some municipalities continued to operate and maintain their water and sewer systems). MWSSB took over all assets, responsibilities and staff of EM8. 3. In May 1977, UDA presented to the Association for review and financial assistance project proposals for improvement and extension of water supply and sewerage facilities In (1) the Bombay Municipal area and (ii) six satellite towns and 104 villages within the EMR. The selection of the pro- posed developments were based on the priority ranking of the components of a comprehensive sector development plan prepared by BMRDA for the Bombay Metro- politan Region. 4. While the MC component was In an advanced state of preparation the satellite townsivillages part required further feasibility and design studies. Following detailed discussions with IDA, it was decided to proceed with two separate projects eventually resulting In the Second Bombay Water Supply and Sewerage Project (Credit 842-IN) appraised in January 1978 and the Maharashtra Water Supply and Sewerage Project (Credit 899-IN), the latter being the sub- ject of this audit. 5. MB.DA commiasioned local consultants to carry out feasibility studies for the proposed Maharashtra project. These were completed in 1978 and formed the basis of the project appraisal which took place in December 1978. 2 Objectives 6. Sector development objectives in India in general, and Maharashtra in particular are aimed at achieving the country targets for the International Drinking Water Supply and Sanitation Decade. The project objectives closely follow these, suitably adjusted in the light of the project area priorities and are spelled out in the PCR par"s. 2.12 and 2.13. The principal objectives may be sumarised as follows (1) provide satisfactory water supply and sewerage collectionldIsposal services up to 1991 to an estimated 2.4 million people (1.6 for urb- an, 0.6 for rural) in the commnities concerned including essential services to the poor at affordable prices, and (1H) improve the ability of the relevant authorities to design, Imple- ment, operate and maintain water supply and sewerage facilities and to achieve financial and economic viability. Proiect Description 7. The project at appraisal consisted of the augmentation of the exist- ing water supply facilities in the six towns and the provision of new or expansion of existing water supply systems, in 104 villages. The works were to include the construction of a new river Intake and treatment plant, exten- sion of another treatment plant, construction of transmission mins upto 1,500 um. diameter from different bulk supply sources, storage reservoirs and pump- ing stations, distribution networks and service reservoirs and house connec- tions and public standpipes. Additional quantities of water available on completion in the project area would total (from all sources) 390 million litres per day (Mld). 8. Sewerage collection and disposal services were to be expanded in three towns (Thane, Bhiwandi and Kalyan) and comprehensive new services were to be provided in another three (DombivI1, Ulasnagar and Ambarnath). A total of 26,000 property connections were to be constructed. 9. Other components included the provision of workshops, mter testing facilities, vehicles, tools and bulk water meters. Technical assistance was provided to MWSSB (the executing agency) for engineering design, training, operation, maintenance and financial service end project administration (for details see PCR, pares. 2.19 and 2.20 and Anneure I). 10. The three legal documeats (Development Credit, Project and Maharashtra Agreement) contain no less than 25 specific covenants (other than standard) requiring a variety of actions by 001, GCH, MSSB, the mnicipal- ities and villages. The principal covenants relate to managerial and financial performance of the respective entities and land acquisition. These are detailed in Section 7 of the SAR. 11. The project set ambitious targets in toas of additional population served (1.4 million) of which, some 60Z were categorised as "urban poor* and in terms of reduction of water borne diseases prevalent in the project area 3 and particularly intense during the monsoon season due to inadequate sanita- tion and drainage and contamination of water sources. 12. During the apprals*dnegotiation process, GONt agreed to undertake saitaneonely several complementary activities (outside of but related to the project) the most taportant of which was the proposed sanitation program for the 104 villages to ensure maslmum health benefits. Implementation 13. According to the iaplementation schedule which the SAR termed Orel- Istic" the project was to have been completed by September 1983 (4-112 years) and the original closing date was June 30, 1984. In the event, the credit was fully disbursed and closed on June 30, 1985. However, construction works are still proceeding. The water supply components are expected to be completed by late 1987 (although partial operations have started) and the sewerage works by march 1988. 14. A variety of factors contributed to the substantial delays. These are detailed in PCR, pares. 3.01 to 3.10 and Annexure III and may be summari- sed as follows: (1) Consulting engineers to carry out detailed design ware only appointed in December 1979 (after effectiveness). As the preliminary design work did not include site investigations several components had to be redesigned and pipelines and bridges had to be realigned. As a result final designs and bid documents were substantially delayed and so, consequently were constructions starts; (it) The uncertain, always protracted and sometimes unsuccessful attempts of acquiring the necessary land not only delayed the final design of certain components but in one case, the Shivandi sewage treatment plant, the original oxidation pond design had to be changed to conventional treatment plant due to lack of available land; (t11) The intermittent and unreliable availability of cement, reinforcing steel and pipe joints caused repeated delays of the contractors' work. (Lv) Difficult working conditions in marshy areas underestimated; (v) Seasonal labor shortages and civil disturbances; (1v) Procedural delays in obtaining various permits (vil) While 10188 *acquired" experienced technical staff from MNE in 1979 the new organization inevitably faced teething troubles in setting up its project management and supervisory units further contributing to the accumulating delays. 4 15. None of the above factors can be considered as unique to India or the project, as they tend to occur In various degr*s, In most development projects and countries. However, in the Audit9s view the starting of detailed design of such a spread out and complex project during the "Implemeatation period" almost automatically rendered the original Implementation schedule over optimistic. The overall implementation delay can not be determined as the project is not yet complete. Proiect Costs and Disbursements 16. The estimated cost of the project at appraisal, based n preliminary design and Including appropriate contingencies was US$100 million equivalent or Rs.860 million at current exchange rates. In the course of the preparation of detailed design (1982184) during which substantial changes were made in pipe sises and length, number of reservoirs and treatment plant design, suc- cessive reestimation of the project costs were carried out (PCR, paras. 2.24- 2.27). The January 1984 estimates (which are still considered valid) put the total project costs at US$188.4 million equivalent or Rs.1,620 million. An 881 Increase over the appraisal estimates. With the credit amount remaining at US$48.0 million, 00 decided to proceed with the project as designed and to provide all additional financing required. 17. While rapid inflation in the early 1980s, procedural delays and land acquisition problems contributed to the cost increases, the predominant factor was, undoubtedly, the changes introduced during detailed design. As these changes did not significantly alter the project scope but merely increased pipe sisesllength and altered alignment together with more accurate assessment of construction work requirements, the resulting cost increases present a vivid example of the need for better project preparation. Regretfully there is no detailed analysis available to determine the component by component increases in costs due to this. It is Interesting to note that the Bank "advised* the WSSB of this need who, in turn, assured the Bank of future attention to this issue (PCR para. 3.16). 18. As the project is not yet complete, the actual final costs are yet to be determined. 19. Compared to completion delays disbursement of credit funds was relatively close to the appraisal estimates (PCR, par&. 3.20 and Annexurt VII and VIII). This is partly due to the prudent forecasting of early disburse- ments - it was foreseen that with detailed design starting only after offec- tiveness few contracts would be let in the first two years - and partly be- cause the bulk of the credit (US$ 30.6 million) was earmarked for goods and equipment which are relatively quick disbursing. By the original closing date (June 30, 1984), 821 of the credit was disbursed and 100 was achieved within the one year extension of the closing date to June 30, 1985. PROCUREMENT 20. HSSB followed Bank guidelines for procurement and ICB procedures were used to invite bids for goods and equipment contracts exceeding US$50,000 5 In value. Although some 31 foreign firms competed only 4 succeeded in winning contracts. 21. Practically all civil works comprlaed a large number of relatively small contracts widely scattered over the region. They required no special equipment and were generally labor intensive. As such, they were not attrac- tive to foreign contractors who, in any case, were unlikely to be competitive to the numerous experienced private contractors operating in the Bombay area. The large number of small contracts resulted in a major administrative work load for NWSSB and the audit believes that in future projects, the economic and administrative advantages of suitable packaging of small contracts into larger bids should be considered both to attract major contractors and to reduce the burden of contract administration. 22. Apart from the original lack of familiarity with Bank procedures and delays incurred in getting the necessary clearance from central government for foreign exchange commitment, MWSSB had no particular procurement problems (PCR, para. 3.11). Performance of Consultants, Contractors 23. The detailed engineering design of the works was entrusted to con- sultants (local and foreign joint venture), originally under a 4-year con- tract. The PCR reports (para. 3.22) that the consultants performed satisfac- torily in every respects, with particular praise for the clarity and accuracy of the contract documents which considerably eased contract management and supervision. The consultants contract was extended for a further 2 years to provide expert services during Implementation for design changes necessitated by particularly difficult construction conditions. 24. Experienced local contractors won the major civil works contracts and their performance and quality of work was generally good (PCR, para. 3.24). Construction delays were mostly caused by factors outside the contrac- tors control, such as, land acquisition problems, countrywide shortage of materials and seasonal labor shortages. A major construction accident in which four workmen died slowed the erection of the Anjur pipeline bridge. The cause of the accident is unknown. 25. Supervision of construction was carried out by WSSB's staff who generally had adequate experience in these types of work. Institutional Development and Performance 26. HWSSB was established in 1979, primarily as a bulk supply agency, and was designated executing agency for the project. The new institution, after some hiatus, absorbed the entire staff of SNE, the state agency pre- viously responsible for the provision of water supply and sewerage in the State of Maharashtra (with exception of major municipalities). While the ENE staff was experienced in moderate scale water and sewerage development, the scope of the proposed project was beyond previous experience. Consequently, a systematic strengthening of HWSSB was envisaged under the project with approp- riate training recruitment and technical assistance in particular on the 6 financial side where weaknesses were most apparent. Currently WSSB has a staff of about 13,300, of which 1,800 are engineers. The management sad organisation structure are satisfactory and it operates a commendable training program which was largely established under the project (PCR, par&s. 6.01. 6.10). 27. A separate project monitoring unit provided regular and adequate project progress reports to IDA throughout the Iaplementation period. 28. In addition to being a bulk supplier of water from its own saurces, MMS also purchases water for bulk resale from IMC and MIDC. It also operates and maintains water supply and sewer systems in aunicipalities where local capacity does not (yet) exists for these functions. 29. As a condition of the credit, MSSB was required, inter alis, to iastal a commercial accounting system and keMp separate accounts of the water supply and sewerage operations in the project area and trainlrecruit adequate financial staff. These requirements were met satisfactorily. 30. RO8B has emerged as a strong and competent agency capable of plan- ning and implementing similar projects and, to the extent records are avail- able, maintaining and operating its facilities. Nevertheless, the need for further improvements is indicated in several areas, such as, computerised Information systems (under way), reduction of unaccounted-for water, and project preparation. The follow-up project (now in the planning stage) should be a suitable vehicle for accomplishing the required Improvements. Operations and Maintenance 31. Since the project is not yet complete, there Is little data to support any conclusions on the efficiency of MWSSB' operating and, in parti- culsrp aintenance practices. It intends to remain a bulk supply agency and has Initiated steps to relinquish operational responsibilities of water dis- tribution and sewer systems to the respective municipalities. As an alterna- tive, WSS recently tentatively proposed the creation of a new coL,soration to operate and maintain municipal water supply and sewer systems. PCR, para. 406 states that WSB has adequate expertise to operate and maintain water works In the state. Financial Performance 32. WSS has consistently complied with all financial covenants under the project (PCR, pars 5.03 and 5.08 to 5.11). Its efforts to Increase its bulk water tariffs regularly to match inflation, bulk water purchase and power tariff Increases is particularly commendable. However, the reported 181 financial ROR for 1984/85 represented an abnormal situation as large new assets have not yet been placed on the books. 33. Project related financial performance can not yet be assessed stnce supply of water from the new system has not begun on a consistent basis nor have sewer charges been collectable as the systems are not operational. 7 34. The one black sark on M88** financial performance to the signift- cont increase in accounts receivable. Nowever, the Soard is actively pursuing this matter and its actions Including an 18 surebarge on late payments (PCR, par&. 5.14.2) are appropriate. 35. The situation in the 6 mnicipalities is less satisfactory. At the start of the project, consultants assisted the manicipalities in preparing income and expenditure accounts on camercial lims and trained appropriate staff. However, after 1981182, so accounts, balase sheets or audit reports have been prepared. The councils have been reluctant to continue the comaer- cial practice which is different from the traditinsal manicipal accounting in other areas. 36. Tariff increases following the start of the project have been satis- factory ranging from 90 to 350 over four years. However, no tariff increases have taken place sitce 1983, when conasmers started to take legal action against water tariff increases In view of the lack of Improvement in servicO due to the extensive delays In project completion The PCR (para. 5.12.2) expects that Improvements will resume on compltion of the project. 37. In connection with the financial performance of the mnteipalities, GON is in violation of a nuabr of credit covenants (see pars. 10) under which it was obligated to "cause* the municipalities to take a series of actions ranging from tariff increases, Improved accountiag, billing and collection procedures, reduction of accounts receivable and passing of sewer connection legislation. In Section V, the PCR acknowledge these shortcomings, sets out a series of reasons for them and expresses geeral optimism for future im- provements. Performance of the Bank 38. The PCR In Section VI devotes considerable apace to describe the impact of Bank participation in the project. The cements are generally highly complimentary and clearly Indicate a sustained good relationship. The tone of the repeated references in the PCR also leads the Audit to conclude that Bank staff generally gave good advice which Improved project Implementa- tion. However, it is justified to note that the Bank's advice to "better prepare projects" (PCR, par&. 8.5) should be heded as mach by the Bank, as by the Borrower (see also pares. 12 and 13). 39. In summary, the Audit concludes that while the Bank's performsace was good during supervision of the project, the appraisal did not fully identify the major risks Inherent In the project. Conclusions and Lesson, 40. The project is the first systematic regional water supply and sewer- age development in the state of Maharsshtra. As ouch, it succeeded in creat- ing a strong and competent sector agency In WSI, provided suitable facili- ties for the provision of safe and adequate water supply for a large number of people, a high percentage of which belong In the lower incom categories and a created (or about to) satisfactory waste disposal methods in areas where so such facilities existed. 41. Although not yet fully operational the project on completon Is likely to meet its objectives in terns of service provisions end public health and environmental Improvements. 42. As a result of the completion delays, the projects' design horison (adequate supplies up to 1991) is no longer valid as it has already been noted that certain components (source and distribution) will be fully utilised on comnmissioaning due to the rapid developmets which have taken place in the supply area during Implementation. 43. A umber of significant although by no mans unique lesson may be drawn trom tt3 targets, preparation and Implementation of the project summari- sad as followsa (1) Inadequate (feasibility level design is generally Insufficient for accurate planning and cost estiating) preparation which could equate to "premature appraisal" - as in so many Bank supported projects - almost inevitably lead to delays and cost overruns. In this particular case, the government was able to provide the additional financing and avoid reduction in scope which would have resulted in unsatisfied demand. Extra ties taken in preparation does not necessarily equate to delays created by Inadequate pre- paration and the former is normally much shorter (and also consider- ably less costly). Also, in this case, the cumulative consequence of delays Included such matters as consumer refusal to accept tariff Increases without measurable Improvement in servicess a lesson of considerable consequence for the Bank's widespread "user charges" conditionality. (ii) Institutional advances, such as commercial accounting should not be justified only on their own merits but should be acceptable and applicable in the particular Institutional environment. (1,1) Another perpetually merging issue is land acquisition. It is always difficult to gauge the feasibility of a well Intentioned government undertaking that.... "no difficulties are envisaged and we will proceed quickly..." Administrative and, particularly, economic factors must be considered. Feasibility and design studies should evaluate the economic priority of land use - particularly, in high value urban areas as the case of the Bhiwandi sewage treatment plant demonstrated in this project. (Lv) The need for better and earlier project preparation, recognised and emphasised throughout the project period, should have resulted in the Inclusion of a component for "follow-up project" preparation. Particularly so since the project was a "slice* of a more comprehensive regional development plan. Sorrov.r's n--a*. 44. Co ts vøre receved from the inistry of eoon~c Affalrs whih, to tb etent possibla, hav* been ~n>orporated In the report and the tul. tet reproduc d in Atteolusnt A. Ms5 advised that they have no coments on the report. Thøir letter ls reproduced In Attcbmn 5. 10 ATTACHMENT A Page 1 of 2 COMMENTS FROM THE BORROWER RCA 9924 MARCH 11, 1988 240423 WORLDBANK FROM: SHRI P.V. BRIDE DIRECTOR ECOFAIRS NEW DELHI TO: SHRI CH VASUDEV, ADVISER TO ED (BANK) WORLD BANK WASHINGTON KINDLY PASS ON THE FOLLOWING MESSAGE TO MR. ALEXANDER NOWICKI CHIEF ORD AND MR. R. SKOLNIX CHIEF OF HUMAN RESOURCES ETC. DIVISION OF WORLD BANK QUOTE: PLEASE REFER TO YOUR LETTER OF NOVEMBER 2, 1987, CONCERNING PROJECT PERFORMANCE AUDIT REPORT IN RESPECT OF MAHARASRTRA WATER SUPPLY AND SEWERAGE PROJECT - IDA CREDIT NO. 899-IN, OUR COMMENTS ON THE PPAR ARE AS FOLLOWS: (AA) PARA. XVIII OF EVALUATION SUMMARY - PPAR. OBSERVING QUOTE BANK MUST RESIST THE TEMPTATION TO RUSH OR TO BE RUSHED INTO A PREMATURE APPRAISAL UNQUOTE AND PARAS 15, 38 AND 39 OF PPAM AND ITEM (II) OF PARA 27 OF ANNEXURE TO PPAM. COMMENTS: THESE PARAS SUPPORT THE NEED FOR ADEQUATE PREPARATION PRIOR TO IMPLEMENTATION...(.) THE REPORT DOES NOT HOWEVER ESTABLISH THAT IN THIS CASE THAT BANK HAD BEEN HURRIED BY THE BORROWER OR HAD RUSHED ON ITS OWN INITIATIVE TO TIE UP THE PROJECT. THE REPORT ITSELF INDICATES A GAP OF ABOUT ONE YEAR BETWEEN INITIAL PREPARATION AND APPRAISAL. WE WOULD SUGGEST THAT THESE PORTIONS WOULD NEED TO BE MODIFIED SUITABLY INCLUDING PARA. XVII OF THE EVALUATION SUMMARY. (BBB) PARA 43(111) OF PPAN OBSERVES THAT QUOTE IT IS ALWAYS DIFFICULT TO GUAGE THE VALIDITY OF GOVT. UNDERTAKINGS THAT NO DIFFICULTIES ARE ENVISAGED AND WE WILL PROCEED QUICKLY UNQUOTE IN THE CONTEXT OF LAND ACQUISITION PROBLEMS: COMMENTS: COMMITMENTS ARE ETENDED DURING NEGOTIATIONS BASED ON THE SITUATION AND INTENDED ACTIONS PERCEIVED AT A PARTICULAR POINT OF TIME. IN THE PRESENT PROJECT AS MAY BE SEEN FROM THE PCR THE BROAD SCOPE AND CONTENTS OF THE PROJECT WERE RETAINED. WHERE CONSIDERED NECESSARY ALTERNATIVE LAND WAS ACQUIRED OR THE COMPONENT IMPLEMENTED BY ADOPTING A DIFFERENT OPTION. THE OBSERVATION IN THE PPAR IS A LESS THAN FAIR APPRECIATION OF THE ADMINISTRATIVE PROCESSES INVOLVED IN PROJECT IMPLEMENTATION. IT WOULD THEREFORE BE DESIRABLE TO SUITABLY MODIFY THE PRESENTATION IN PARA 43(111) OF THE PPAR. (CCC) PARA 43(111) OF PPAM CONTAINING A SUGGESTION FOR EVALUATION OF LAND USE AS PART OF FEASBILITY AND DESIGN STUDIES. COMMENTS: A LAND USE STUDY COULD AT BEST SEEK TO DETERMINE THE APPROPRIATE USES TO WHICH LAND MAY BE ASSIGNED BUT WOULD NOT BY ITSELF GUARANTEE AN EFFECTIVE LAND ACQUISITION PROCESS. LAND USE EVALUATION ASSUMES IMPORTANCE IN THE CONTEXT OF OVERALL SECTOR POLICIES AND SHOULD NOT NECESSARILY BE BROUGHT WITHIN THE PURVIEW OF A SPECIFIC WATER SUPPLY AND SEWERAGE PROJECT. THE REFERENCE TO POLITICAL FACTOR IN THE CONTEXT OF LAND ACQUISITION IN THE PARA IS NOT NECESSARY. 11 ATTACHMENT A Page 2 of 2 (DDD) PARA 11(A) AND 27(11) OF PPAM ANNEX: CONTAINING SUGGESTIONS FOR LAND ACQUISITION PRIOR TO APPRAISAL. COMMENTS: IT MAY NOT BE A WORKABLE OR COSTEFFECTIVE PROPOSITION TO ACQUIRE ALL LAND REQUIRED FOR A PROJECT AT THIS STAGE AND MAY VELAY A PROJECT CONSIDERABLY. BASED ON THE SCHEDULE OF IMPLEMENTATION IT SHOULD NORMALLY SUFFICE IF THE PROJECT AUTHORITIES COULD ACQUIRE LAND SUFFICIENT FOR THE FIRST TWO YEARS OF "HE IMPLEMENTATON WHILE SIMULTANEOUSLY MAINTAINING ACTIONS FOR SUBSEQUENTLY NEEDED ACQUISITION. (EEE) PARA 27(I) OF ANNEXURE TO PPAN REPORTS THAT MWSSB IS INHERENTLY WEAK IN FINANCIAL MANAGEMENT AND THAT IDA SUPPORT FOR THIS ASPECT SHOULD PERHAPS BE MORE SHARPLY FOCUSSED IN ANY OF THE FOLLOWING PROJECTS. COMMENTS: THIS OBSERVATION IS NOT SUBSTANTIATED BY THE REPORT. PARA 19 OF ANNEX TO PPAM AND PARA 32 OF PPAM INDICATE THAT THE PERFORMANCE OF WSSB WAS COMMENDABLE. AREAS REQUIRING FURTHER IMPROVEMENT LIKE COMPUTERISED INFORMATION SYSTEM IMPROVEMENT IN ACCOUNT RECEIVABLES REDUCTION IN UNACCOUNTED FOR WATER ETC. ARE BEING ADDRESSED AS INDICATED IN PARA 30 AND 34 OF THE PPAM. THE MWSSB WAS A NEW ORGANIZATION SET UP in 1977 EFFECTIVELY TAKING OVER FROM ENVIRONMENTAL ENGINEERING ORGANIZATION OF GOVT OF MANARASETRA IN 1979: MWSSB SUBSEQUENTLY EMERGED AS AN EFFECTIVE ORGANIZATION AS VISUALIZED UNDER THE PROJECT WITH SUBSTANTIAL COMPLIANCE WITH THE FINANCIAL TARGETS INCLUDING TIMELY TARIFF REVISIONS. IT WOULD NOT BE APPROPRIATE TO JUDGE THE AGENCIES INHERENTLY WEAK IN FINANCIAL MANAGEMENT (.) (FFF) PARA 21 OF PPAM HAS COME UP WITH THE RECOMMENDATION THAT PACKAGING OF SMALL CONTRACTS INI'O LARGER BIDS SHOULD BE CONSIDERED BOTH TO ATTRACT MAJOR CONTRACTORS AND TO REDUCE THE BURDEN OF CONTRACT ADMINISTRATION. COMMENTS: WE WOULD SUGGEST THAT ICB SHOULD BE RESTRICTED TO AREAS REQUIRING EXPERTISE AND THE LIMIT FOR ICB PROCEDURES SHOULD BE RAISED TO DOLLAR 1 MILLION. THIS HAD BEEN AMPLIFIVD BY MWSSB IN THE PCR PARA 10.4. (GGG) PARA 14 (IV) AND PARA 17 OF PPAM REFER TO BUREAUCRATIC DELAYS WHILE DISCUSSION IMPLEMENTATION DELAYS. COMMENTS: IN THE CONTExT OF LAWS OPERATING IN THE COUNTRY CERTAIN PROCEDURAL REQUIREMENTS ARE NECESSARILY TO BE COMPLIED WITH. PARA 14 (VI) AND 17 COULD BE MODIFIED TO BE READ AS QUOTE DELAYS ON ACCOUNT OF PROCEDURAL REQUIREMENTS UNQUOTE: (HHH) PAR& 43(1) OF PPAM OBSERVES THAT THE SCOPE OF THE PROJECT WAS RETAINED BY PROVISION OF ADDITIONAL FUNDS BY GOVT WHICH IS REPORTED TO BE QUOTE A RARE OCCURENCE UNQUOTE: THERE HAD BEEN NUMEROUS OTHER INSTANCES WHERE THE PROJECTS WERE FACED WITH LARGE COST ESCALATIONS AND THE CREDIT FUNDS HAD BEEN FULLY UTILISED EVEN BEFORE PROJECT COMPLETION. THESE PROJECTS HAD HOWEVER NOT BEEN LEFT MIDWAY AND WERE COMPLETED FUNDING FROM RESPECTIVE STATE GOVERNMENTS/PROJECT AUTHORITIES. THE REFERENCE TO QUOTE A RARE OCCURENCE UNQUOTE SHOULD APPROPRIATELY BE DELETED. PARA: WE WOULD BE GRATEFUL IF THESE COMMENTS ARE TAKEN INTO CONSIDERATION BEFORE FINALISING THE PPAR. REGARDS KEWAL 12&UE a Maharashtra Water Supply & Sewerage Board P $ AIR MAIL. 8.8.PAWARDWAwNUPIV& MW" CH~IS NGINEElt S. .PMIA3UA3Mahareebtra Waer Supply & Sewerag Project (PH)KN K3 DUN 4th Floo, Epsess Towe, Narmmn Point. NIMA(LONDON) BOMBAY - 400 021. (INDIA) Phaon NOs. 22 s 4. 202 624 4 (STD.-022) No. CIaawSspIW2I oae: 28th Tanuaryv198 To, COMeUs ra Tas BORROWsR Mr.Alexander Noicki, Chief Policy-based Lending Industry, Public Utilities and Urban Sectors Operation Evaluation Department 1818 a. Street* N W Washington D C 20433 USA. Ref : - Project performance Aduti Report on India-Maharashtra Water Supply and Sewerage Project (Credit 899-IN) Sir. Please refer your letter dated 2nd November, 1987 by which Draft Project Performance Audit Report on India Maharashtra Water Supply & Sewerage Project, is received for offering comments. In this connection it is to inform you that this office has no specific comments to offer. Bowever, the suggestions given in Project Performance Audit Report have been noted carefully. Thaning you, with regards, Yours sn elye (8.5. PAWTARDuM CIEF MIMBER ( P ) M.WS.& 8. PROTECT, 80MT. Copy submitted to the Member Secretary, MSSBoard, Bombay, for information. Copy forwarded with compliments to Shri B.S.Oberio, Under Secretary, Ministry of Economic afair, New Delhi, for information with reference to this office letter No.CE/ MWSSP/AB/28 dated 5.1.1988. Copy forwarded with compliments to Shri S.H.Shool, Dy.Secretary, U.D.D Mantralaya, Bombay-32 with reference to his D.0. No. WSP 1087/2840/CR-415/87/UD-16 dated 6-1-88 addressed to Shri Y. V.Joshi, FA a CAO for information. THE WORLP SANK INTFRNATIONAL FINANCE CORPORATION OFFICE MEMORANDUM TB: February 27, 1987 TO: Mr. a hear Chopra, Director, agMOD TBRM: Mr. Paut Cal oatilrector. ASPIR IMDN: Alberto ing Chief, SPOW rETESz0n: 3-2790/1 SUBJCT: INDIA -- Maharashtra sater Supply and Sewerage Project (Credit 899-IX) . eact Comletion Isart 1. Attached please find the Project Completion Report (PCR) for the above project, prepared by the Maharashtra Water Supply ad Sewerage Board (W88S), the executing agency, under the overall guidance of our divisional staff. This emorandum sumarises the major issues ad lessons learned from the project, and provides comeants sad clarifications where necessary based on the original SAR and file research combined with discussions with the Chief Enginer and other W888 staff during a mission to Bombay in December, 1986. 2. This memorandem is organised as follows: A. Background and contest (pares 3-4) B. Project design, implementation and costs (pares 5-11) C. Operating perfomeance (pares 12-17) D. Financial performance (pars 18-22) I. Institutional performance (pares 23-25) F. Economic Analysis (para 26) 0. Conclusions (par& 27) Annex 1: ey Project Data Attachment: Project Completion Report (Cr. 899-IN) prepared by Vabarashtra Water Supply & Sewerage Board. Reviewed by and cc: Mr. S. Liehberman (ASAIR) UJssen:sts cc: Musers. topper, elsen, Shibusswas West (A8WP); Clift, *so (ASM); Robless (2), Mrs. Asher o/v (ASAIN); Lerda, Geli, 8ased (2), Alston (ASER); Christie, Jensen, all oh (ASPW); Zopp (2) (PPDOU); Rittasir (CUYP); Costa (4) (WUD); Swahn (EDT); Jeheni (LW); Ms. Swang (LOAAS); Pellegrini (WAPWU); Baky (EAU); Amed (AWWW); Ware (EWS); Thys (IMS); RXD (2); SAIC. P*1a5T 14 A. BACKGROUND AND CONTEXT 3. The Maharashtra Water Supply and Sewerage Project (Credit 899-IN) was IDA's third involvement in the sector in Maharashtra, the third largest state in India. While the two earlier projects (Credit 390-IN approved in 1974 and Credit 842-IN from 1978) concentrated on the Bombay Municipal area, this project, implementing part of a sector development plan for the Bombay Netropolitan Region, was designed to improve sector services in the satellite areas north and northeast of Bombay. These are rapid growing urban and rural centers which are intended to decentralize industrial development and to stem migration to Bombay city. The Project originally formed part of the 3econd Bombay Water Supply and Sewerage Project according to an earlier proposal prepared by the Bombay Metropolitan Region Development Authority (BMRDA) but due to time constraints during project preparation it was, however, decided to carry out this Project separately under the auspices of the newly created MUSSB (established in January 1977). The Project also sought to develop HSSB as an executing agency carable of planning and implementing sectoral develop- ment programs in the state of Maharashtra. 4. The borrower for the IDA Credit of US$48.0 million equivalent was the Government of India with onlending through the State of Maharashtra to MWSSB. Credit 899-IN was signed on June 21, 1979. B. PROJECT DESIGN, IMPLEMENTATION AND COSTS 5. Based on a comprehensive water resources study for the region, BMRDA as the principal agency for the preparation of this project carried out feasibility studies and preliminary engineering designs with consultant assis- tance, prior to appraisal. The Project was designed to augment existing piped water systems and provide new piped water supplies in order to serve the needs of a 1991 urban and rural population of approximately 2.4 million in 6 towns and 104 urbanized villages in the Project area. The Project also provides water borne sewerage and sewage treatment and disposal systems in 3 municipalities and expansion and completion of sewerage systems in the 3 other towns in the Project area, while a rural sanitation program would be imple- mented by MSSB in parallel with the project. The project also had a training program mainly for operational staff. 6. At appraisal the Project was expected to be implemented over a period of about 4 1/2 years (1979-1983). Due to implementation delays, approximately 78Z of the project components were completed by September 1986, and it is now expected that the water supply components will be completed by March 1987 and the sewerage components by March 1988, about 3 1/2 years and 4 1/2 years respectively later than originally envisaged (paras 3.03 to 3.10 of PCR). 15 7. Delays were due to: (a) NWSSB was a relatively new implementing agency, and initial difficul- ties influenced the project implementation as t-.:ansfer of most staff as well as assets, duties and responsibilities from the previous Environmental Engineering Organization (ENE) to NWSSB took place in 1979 coinciding with the start of the Project (paras 6.01 to 6.11 of PCR). (b) Late appointment of consultants for detailed engineering designs and preparation of tender documents delayed the credit effectiveness by about two months. (c) Delays in land acquisition due to stiff opposition caused obstructions to site investigations and survey work. During detailed investiga- tions and engineering design major river crossings for transmission mains had to be relocated. Site difficulties such as non-availability of adequate land and difficult local conditions also caused delays; one example being a proposed oxidation pond system for Bhiwandi Town having to be replaced by a conventional sewage treatment plant because of land acquisition constraints. Once these initial delays were overcome physical progress on the project picked up rapidly (paras 3.04 to 3.10 of PCR). (d) The Project suffered from shortages of basic material like cement and steel during most of the time. (e) Re-tendering for the Temghar water treatment works caused substantial delays during the later part of the implementation. (f) Civil disturbances in 1984 disrupted the works for about two months as contractors' work forces dispersed to their villages. Physical project implementation continued satisfactory once these difficulties were overcome. By the later part of 1986 only cone major contract (for mortar-lining of raw water and transmission lines) had not yet been awarded. The total implementation period is now estimated to be about 9 years (consistent with the regional sector profile). 8. A complementary program for rural sanitation in the 104 villages in the project area was anticipated to be implemented by 1W888 in parallel with the project, but did not materialize due to the rapid transformation of the villages into urban communities with multi-story buildings for which low cost sanitation technologies are not appropriate. Sanitation improvements in these areas could be considered under upcoming projects (para 2.21 of PCW). 16 9. Annual inflation since appraisal has been greater than expected (during the period 1980 through 1983 the rate of inflation for labor and construction materials was at least twice the figure of 6%-7% allowed in the appraisal estimate). The delays in start-up have aggravated the inflationary effects by extending them over a longer period. Designing for higher popula- tion densities than anticipated at appraisal has resulted in larger pipe sizes and additional costs over and above those resulting from construction changes, (see para 6). 10. For the above mentioned reasons total project cost to completion is now estimated at Rs 1620 million compared with the appraisal estimate of Rs 860 million. The credit of US$48.0 million was fully disbursed after the closing date was extended by one year to June 1985. At appraisal the US$48.0 million was equivalent to Re 413 million. However, due to variations in the exchange *ate during implementation (Rs 8.6 to Re 12.3) the disbursement in rupees increased to Rs 493 million (paras 2.24 to 2.29 of PCR). 11. The Project developed MWSSB's ability to design, implement and manage large scale water and sewerage investments. However, the following key les- sons resulted: (a) Cvtailed engineering designs and tender documents should be carried out for the major project components and land acquisition should be undertaken to a large extent prior to appraisal in order to avoid implementation delays and cost over- runs; (b) implementation timetable should be ore realistic, especially when it relates to the start-up of a new agency. The optimistic assumptions that were used during project ppraisal, and on which the time schedule and financial performance were based, were not borne out in practice. (c) more attention should be given to strengthening project manage- ment to be able to deal adequately with project planning, tender- ing and contract management, especially for a newly established agency at the state level, anf for the local authority in finan- cial management and operations. C. OPERATING PERFORMANCE 12. As envisaged at appraisal MUSSB has been established as the bulk water supply agency for the entire project area. HWSSB supplies water from its own sources, supplemented by water purchased in bulk from the Maharashtra Industrial Development Corporation (MIDC), for resale to local authorities. An administrative adjustment in the project area has meant that the 6 Municipalities and 104 villages existing at appraisal have been transformed into 2 Municipal Corporations, 2 Municipal Councils and 34 villages (as the . 17 other 70 villages have been merged into the Municipal Corporations/Councils). While this upgrading in status has its advantages it also makes comparison between past and present more difficult. As a consequence, new by-las were necessary to reflect the new status with the result that by-laws requiring property owners to connect properties to sewers are not yet gazetted in some areas. As the sewerage systems in some of the project towns are not yet - commissioned, the effect of these delays is marginal. (paras 4.01 to 4.07 of PC). 13. Although MWSSB0s primary role is that of a bulk water supply agency, NWSSB continues to operate water distribution systems in some local authorities who have not previously operated as water distribution agencies. MWSSB bills these consumers directly, since it proved premature to hand these works over to the relevant local authorities before completion and comission- ing of the enlarged distribution systems now ezimated to take place in March 1987 in those areas. 14. Although the basic concepts of the Project were not changed during detailed design, the projected 1991-population in rural areas has been increased from 0.77 million to 1 million augmenting the total number of beneficiaries (urban and rural) from 2.4 million to about 2.6 million people. Until the project is totally comissioned, it is premature to judge the operating performance. However, for those parts of the scheme already comis- sioned there are indications that the actual 1985 water consumption has already reached the projected 1991 figures due to the rapid development of high rise buildings in some areas instead of the horizontal expansion originally envisaged. These aspects should be reviewed again after commis- sioning of remaining project components. (paras 2.09 and 2.10 of PCR). 15. Operational covenants included a requirement for MIDC to make suffi- cient potable water available to MWSSB; this has been adhered to (Annex EV of PCR). Another important covenant on the original 6 Municipal Councils to introduce by-laws requiring property owners to connect properties to severs has been only partly fulfilled as mentioned earlier (para 12). 16. During the project the number of metered connections in the urban part of the project area increased in numbers from about 41,000 to approximately 80,400 as a result of MSS's metering policy. Altogether 91.6Z of connec- tions are now metered. A very limited leak detection survey has been carried out in part of the project area, but the efforts to control unac- counted-for-water do not appear to have been either well conceived or care- fully managed. Clearly, a much more concerted effort in this respect would be appropriate in any future project. (paras 7.4 and 7.5 of PCR). 17. It was recognized at appraisal that MUSSB's financial management and accounting functions needed strengthening, as the agency from the start had an engineering and technical bias. As all new staff posts required government approval, initial delays occurred in the building up of the above functions 18 and part of accounting duties at headquarters had to be assigned to consult- ants. (paras 2.08, 5.03 and 6.09 of PCR). D. FINANCIAL PERFORMANCE 18. With regards to compliance with financial covenants there is a great difference between the performance of MWSSB and that of the local authorities (municipal councils and villages). 19. MWSSB has remained in compliance with all financial covenants. These include covenants of a largely procedural nature like establishing adequate records; preparing and maintaining accounts on a commercial basis for all its operations and maintaining separate accounts on this basis for the project area; submitting regular audits; not incurring long term debts; and not utilizing surplus funds from water & sewerage operations in the project area outside that area. Furthermore a rate of return covenant called for 42 (on revalued assets) in 1984/85, 5% in 85/86 and 6% thereafter. Actual ROR was 182 in 1984/85 due to delayed implementation with lower than anticipated fixed assets in operation and due to timely tariff increases for bulk water sales. Tariffs have actually been increased 4 times during the last 4 years to reflect increases in MIDC bulk charges and increases in power costs. (paras 5.03 and 5.08 to 5.11 of PCR). 20. The performance of the local authorities in this respect is, however, far from satisfactory. Although all the local authorities in the project area maintain separate accounts for their water supply and sewerage schemes, no income and expenditure accounts or balance sheets in respect of these schemes have been prepared after 1981/82, when the earlier reported administrative adjustment took place. Initially, consultants assisted the Municipal Councils in preparing these accounts and trained their staff in preparing the accounts along commercial lines, but it appears that the councils are reluctant to continue this practice, which is different from their normal municipal accounting system. Audit of the 1979/80 accounts has been completed,.while the audit reports from 1980/81 onwards are still awaited. A rate of return covenant required that from April 1, 1983 municipal tariffs would be set at such levels as would ensure revenues sufficient to cover the greater of either operating expenses and depreciation and to produce a rate of return on average currently valued net fixed assets in operation of not less than 32 in 1983/84, 4% in 1984/85, 5% in 1985/86 and 6% thereafter, or operating costs and debt service. Over the first 4 years of the project the four municipalities, which prior to taking up the project operated their own distribution networks, did increase their water rates. The increase varied from 952 to 3502. From 1983 there has, however, been a general unwillingness on the part of the municipalities to bring about further increases in water tariffs as no per- ceived improvement of customer services had taken place since the project was not wholely completed. In Kalyan municipality consumers took court action against implementation of the increased water tariff. During negotiations the borrower had serious reservations on this particular covenant, and it was 19 agreed (in the minutes of negotiations) that should the completion date be delayed it might be necessary to amend the fiscal years in which the par- ticular rates of return are specified. Consequently IDA in 1983 agreed that in vie- of the fact that the project was running behind schedule, the municipalities should seek to cover their operating costs and debt servicing in respect of water supply and sewerage services until such time as the project is completed and the fixed assets are transferred to them. 21. Since accounts have not been prepared since 1981/82 (see para 20), it is difficult to know what the real situation is today. The only available accounts for two municipalities have been analysed for the 3 years 1979/80 to 1981/82 and show that by 1981/82 these two municipalities did operate their water systems in a deficit and subsidised this activity from general revenues. In view of the unwillingness of the municipalities to increase water tariffs since 1983 there is no indication that the situation in these municipalities or for that matter the other municipalities should have improved. One adverse indication is that the municipalities are from 4 to 10 months behind schedule in settling their bills for bulk water supplies from MWSS although a covenant specifies that bills should be paid within 90 days. NWSS is trying to recover the outstanding payments from the local authorities through deduction in Government grants, but the results are not impressive. (paras 5.08 to 5.18 of PCR). 22. The following key lessons on financial performance can be learned from the above experience. (a) the financial objectives for the project were sound and valid, but the exact dates of targetted rates of return could not be achieved when the implementation was delayed. (b) the financial covenants in relation to the local authorities have not worked as anticipated partly because the very cticept of operating water and sewerage services on a self-sufficiency basis was new for these local authorities and partly because the project was delayed with no perceived improvement of services; and (c) financial covenants would need to be tightened in any future World Bank supported project e.g., by making CON responsible for any deficits on behalf of the local authorities towards WSSB (the assump- tion being that CON would then be bound to force the local authorities to comply with the covenants). B. INSTITUTIONAL PERMORMANCE 23. One objective of the project was to help establish 148 as an institution capable of planning and implementing sectoral development progre= in Maharashtra. W1888's staff today numbers about 13800 persons inclusive of 1800 engineers. The engineering staff was mainly transferred on bloc from the 20 Environmental Engineering Organization (BNE), which ws part of the Urban Development Department of the State Government. This compulsory transfer of engineers from Government Services resulted in considerable dissatisfaction principally due to loss of certain benefits such as accommodation and group life insurance. These problems have been now largely resolved (paras 6.01 to 6.11 of PCR). 24. Initially MWSSB's financial and accounts staff was weak, because a separate Government department used to provide these services to ENE. MSSB consequently had to initiate and build up its financial and accounting func- tions by drawing officers on deputation from other Government Departments and by relying on consultants. A financial adviser was finally recruited and resumed his duties in October 1982 after a lapse of more than 3 years. Serious accounting department understaffing (25%-40%) was reported as late as in 1984. This obviously affected operating performance although the effect cannot be quantified. 25. MUSSB has undertaken a considerable training program for operating staff of M1SSB as well as from the local authorities at a special training center at Nasik established under the project. Ten MUSSB engineers were sent abroad for specialized training over the period 1979/86. F. ECONOMIC ANALYSIS 26. At appraisal the rate of return was estimated to be around 92. However, since (a) the water and sewerage components of the project are estimated to be completed in March, 1987 and March, 1988 respectively; and (b) more importantly due to the lack of accounts being prepared since 1981/82, it is not possible at this stage to determine the actual economic rate of return (para 19). This should, however, be done after the commiasioning of the last component of the project, now estimated to take place in March 1988. G. CONCLUSIONS 27. This project has provided an initial opportunity to address the issues of long term development in the sector in Maharashtra State supplementing Bombay projects and provide a means of policy dialogue with government. Several key lessons emerge from the experiences gained during the project. These are: (i) MSSB has become established as the key sector agency in the State and has demonstrated a capability to design, implement and manage large scale water and sewerage investments. NSSB, nevertheless is still inheritently weak in financial management. IDA support for this aspect should perhaps be more sharply focussed in any following project. 21 (ii) The project clearly demonstrated the need for adequate detailed engineering and project costing as well as land acquisition to be carried out prior to appraisal. (iii) The implementation schedules determined at appraisal proved overly optimistic and the achieved project implementation progress appears to conform with the regional sector profile although all the project activities are not yet commissioned. (iv) While NWSSB has maintained compliance with its financial covenants, the efforts of the local authorities in this respect is not encouraging. In retrospect, it seems that the targetted dates for rate of return covenanted achievements by local authorities could not be met due to implementation delays. In any event the authorities have not been able to meet operating costs and debt service in respect of water and sewerage services. In ay future project it would be appropriate to introduce a clearer linkage between CON and local authority responsibilities. MAHARASHTRA WATER SUPPLY & SEWERAGE BOARD, ONDAV*sINIA PROJECT COMPLETION REPORT ON MANAWNTRA WATER SUPPLY & SEWERAGE PROJECT IDA4-88N AUGUST * IM CHIEF ENGINEERs M. W.S. S PROJECT SFLOO EXPRESS TW*% SOMBAY40 021. INDIA. 23 CODUTST ZXCUAnu nTESs (INDZ) * neof C.rrany g Ries (e. 1979 Aggeaff al ye~ u moneaa at. US $1 8.60 averag Zatwvenig vr avag s US 1 - 10.44 (1983) 1985 cample~n y~a Us 1 1 13.49 ave~ 24 LIS OF AABMBVIATIONS Am ACR .e IDA s International Development Association QDI s Government of India 0N s Government of Maharashtra BMDA s &ambay Metropolitan Region Developent Authority UWm s Water Resources Management Board mssa a Maharashtra Water Supply and Severage Board aE s Bombay Municipal Corporation KEDC z Maharashtra Industrial Development Corporation aR : BaMbay Metropolitan Region 11CONS s irloskar Consultants STC s Shah Technical Consultants Pvt. Ltd. CIDCW a City and. Industrial Development Corporation W11 s brid ealth Organisation EMB s Environmental Engineering organisation of GCO. SAR : Staff Appraisal Report Maharashtra Water Soply a Sewerage Project (April 17, 1979) mC t falyan Municipal Corporation - TMC : Thane Municipal Corporation 25 . PaanCT oMPiamIce anon • NNU6RUa 1ER SmLY AND SENMR P40ECT STAE 1 CaEDIT - 899 - IM T~ or c ~PÅGE MT. LIST OP nBartVIAIOS AND ACROI 24 LI=T OF AlEnUR 25 MT PrJECT DATA 27 T. T%rin 28 II. PECIDTIICATION, PREPARATON AND APPPAISAL 31 III. IMPJmNMTMON IV.* ORATING PEwumNCE V. • IENCIAL P w62 VI* InBTITUTIONAL P 0uiCE A DELop~7T VII. P~=SCT JTIFICPTION 78 VIII. BANK E 83 ~X. COuCLUSION 86 SUGGESTIONS O THE I aPLEMETING AUTEORITT 89 XI. ANEURES i TO XVII 93 26 LIST O' ANMEXURES ÅMUURES CONTAIN FOLIOWING DETAILS lfi~ DESCRIPTION NO. ND. I CHANGES NDE IN T'iE PROJECT DURING.. 91 ENGZIEERING DESIGN II PRJECT DESCRIPTION AS PER SAR & AS REDWFINED 93 III REASONS MOR DELAY IN IMPLENENTM2ION 112 IV luMS OF FOREIGN FIRMS SUCCESSFUL IN ICB 116 TENDERING V REASONS FOR COST OVERRUN 117 VI PROJECT COST UNDER VARIOUS COMPOIMUTS 119 VII SCHEDULE OP DISBURSEMENTS 126 VIII DISBURSEMT PERFORANCE (GRAPHICAL) 128 IX FUND FL STATEMENT QF NSSB 129 X RESULTS OP WORING Op 3OARD O0 ; NS3ORES0 XI REVISION OF WATER TARIFF BY NNSSB & COUNCILS 131 XII INCW0M STATEMENT OP THME & BIVANDI COUNCILS 132 XIII 1æ STATEENT OP THANE & aHIVANDI COUNCIIIS 134 XIV BALANCE SHEET OF T~ANE D HIVANDI COUNCILS 135 XV cobPLI;d4C TO T~ COVEMI,"T 136 XVI COURSES ATTENDED BY ENGINEERS ABRD 146 XVII LIST OP TYAINING PRGRAMMES 147 27 IIàASETRA NMIR SULT A0 naeSa 290CT (COIT 899-ZN) Ke Pwoieot Datt 1te appraisa>..0 Enpeotation Total Projet Coot (UB $ s illion) 100.00 in.U 47 .1 U8$ s a. & rg the ta of ~i anaud.o over~u (nderu) 4 - 8.37 Cdit A~nt (UB $ Ni$L n) 48.00 43.00 DIurSd 40.00 48.00 Date for C*tpletion of Mhysial Com- 30-9-1983 (Espectel) aenta - proportion ca~leted by ... 31-3-1967 Appraial. Se. 31-3-1968 Target Date (4) 100.00 - Proportion of Ti overn (underrcn) 4 - 5.s. 87.5% - sao. 12.50% Incre~ntal Fin~acial Rate of aturn (4) Not - evaute. Financial Perfoaavena 'atsfacto~y Better Instituional. Perfnoe.= -"- . simlar First mention in =iles or Timmtable. Governuments A11catiman 1979 Negotiations 24-3-1979 to 6-4-1979 Eoard approval Credit areamnt Date 31--1979 Effectiveness Date Closing Date 30--1984 30-4-1985 Dorrower .Govt. of India Eecuting Ageny - enhB liscal year of Borroer April 1- March 31 ollou-~n Project Na~e NE. Deing pregarel Pollov-n Project Nber NU. Follov-on Project Amount .11- Cus $ Niiuen) Creit Agreement Date NU. 28 IND.IA PROJECT COMPLETION REPORT MAHARASHTRA WATER SUPPLY AND SEWERAGE PROJECT CREDIT 899-IN I. 1WraCUCTON 1.01 The project Under description was the thir IDA assisted ater suply and 5ewerago project In naharashtra (India). ear er t~o (IN-390 and 842) projects wer for ZuC. It was there~m the first project in Mharashtra, outside the MC. ENEDA has been the principal agency for preparation of the Project. This project was initiated by aBDA to invrove the water supply and sewerage services in the satellite areas around the MC. Raving esta1ished the adequacy of water resources MMRDA decided the project area, carved out frm the MR Zones zo , III and IV, and *muad fea4bILty studies through M/s. Ioms for the project. '~ie project thereafter evolved at the request of GCM/GOM in May, 1977. 1.02 8M~D entrusted in 1978, the werk of preparation of fama"iuty report based n guidelines of the World Dank for the proosed Iroject, to M/s. IeCS. The bank had the oortunity to discu s and gat aca4.~ with the prpration of the feasiiJ1ty report, bth at the stage of pre-f aiLbiLty repot and detailud feasibility report. The fesiaiity report was flnauied .in 1978. Priór to negotiations oÜver, oortain aditi~na1 infor^ation was also wde available br the consul- tant. zo as to enable th* Uank to appraise the Project. The project oost was marginally pdated at the ti~e of n4gotiations (basic costs - 7anuary - 1979) .a-modating the interest charges over the loan utilised during the iuplmontation p~riod for the slightly Increased iuplantation schedule. The project was estimated to comt U8 $ 00 millio at an eahange ate of 1 US P a as.8.60. (Staff agraisa Report - April 17, 1979). 29 1.03 The staff appraisal report (899-IN) is dated April 17, 1979. The Developoent Credit Agreement, the Project agreement and the Maharashtra Agreement (IDA Credit 899-IN) were signed on June 21, 1979. The credit amcunt was US $ 48 million equi- valent. The borrower was GO and the beneficiary was the Maharashtra Water Supply and Sewerage Board (WSSB) which was to utilise the credit on behalf of the concerned local bodies termed as the "project beneficiaries". The project as redefined in 1984* is in advanced stage of isplemntation. The extended credit date was closed on June 30, 1985. 1.04 SiAce independence, State Goveramats are putting efforts to meet the increasing sector demand caused by not only rapidly expanding population of the nation as a whole, but also the unprecedented rates of urban growth, where the demand is obviously more, than the average requirent. In view of various constraints like administrative difficulties, inadequate manage- sent and planning skills, limited funds, difficulties in development of required water resources, shortages of materials and equipments as well as non-availability of engineering staff, progress anticipated could not be achieved. This has resulted in inadequate water supply and sewerage services. 1.04.1 In 1975, it was estimated * that in India, only 193 million people, ot 31% of the total population of 620 million, at that time,had access to safe drinking water and that only 125 million (20%) had acceptable means of sewage disposal. These levels were much lower than average levels for all developing countries, in which water and vaste disposal services reached 38% and 33% of the population, .respectively. While some improvement in water supply services has been achieved, the percentage of the population receiving waste disposal services has actually declined. * Reference - WHO - coomity and waste water Disposal, Mid-decade Progress -Report, May, 1976. 30 INTn1AIONAiL WATER SUPPLY 6 SAITATION DECDE M ZZDIA 1.05 At the tie, when the project vas approved, GO, c~sistent vith the policy of GOI, concurrently startd thinking in tems of the International Water Supply and Sanitation D.cade Program. The total population of Maharashtra vas 62.78 million (1981 census). Out of this, 40.79 million vas zural an 21.99 million was urban. Tre wør 5 unicipal Corporation, 222. Municipal Councils and - 39354 villagas in tho stat.. At the beginning of the lecade programme (31.3.1981) the coverage of population in the urban vater supply sector vas as high as 99 while the coverage of population was ceparatively low in respect of Urban Sanitation, being only 61.75%. The covarage under the rural vater suply ector vas hardly 11.07%. No works were. cæpleted under Rural sanitation. 1.06- The targets envisag~d by the GOh for meting the objectiv s conceivm in the International water Supply and Sanitation Decade, are indicated below alongwith the anticipated invest~ent of fuds therefor. Population Anticipated in Million investmnt (Rs.in Million) i) Urban Water Supply 10.71 3856.00 il) Urban Sanitation 12.35 5565.00 iU) Rural Water supply 19.59 5826.90 iv) Rural Sanitation 11.09 554.35 Ending 31.3.1985, the per mance against th*se targets is as under s Population Ependiture in Million already incurred (Re. in illion) i) Urban Water Spply 4.19 3791.50 i) Urban Sanitation 1.88 83.89 iii) Rural Water Spply 13.95 2927.20 iv) Rural Sanitation IL NZL 31 ZZ. P=ECT ZDIFICATION, PIAPAUTON AD APPEAZSA 2.01 Distorically, except for the larger nicipal corporations, the develo~nt of cmmity water spply and mewrage services has been the resgon=i~lity of the State Govermnt. -Mharashtra *e''-hed an nvirzntal Engineering Organisation (=) in 1975 with the declared objectivs of providing eaft drinking ater and vaste disposal sErvices to achieve and mintain a lemar environent. It undertook planng and isplemntation of rural water seply projects as well as planning and åie1e- mentation of aicipal water suply and sewerage projects, hich ar partly finaa by =mnnpalities and partly by the GovernMent. Such projects are nornally operated and aintaineå by the local authorities concerned, although the State overnent sasti9s perfors these tasks at the request of local authori- ties. 2.02 In January, 1977, the MSSB was fo~ by the OM as a furter st~p to "provid rapid developent and proper regulation of water supply and sewerage services in the State of Maharashtra. ghough initially ~6B's role vas priarily that of financing channal, raising fnds by borr~"ing from local financing institutions and on the open mark0t, the sm vas furthur expanded to incude project preparation, execution, operation and maintananoe. The vWSS vas furthar strengthned by transferring the staff of the E(Gu(cm in November, 1979. MSS on transfer of zu etaff, possesed adequate 9&kils, e~pertise and capability to undertake major water supply an. seuerage/.anitation projects. OM therefore decided that =SS should be the implm~enting agency, inluing designing, con- ·struction, stervision etc. for the project. 32 2.03 OM also transfe th asmats of Govermnt 0ued vater mpwly s««age/sanitation sahms to Uoard while transferring 'eAbloc E staff. T bard therefore, in the pro~ct area ovned Ambarnath vater works vhich ~ainly suglied vater to Orcnae ractory, Ambarnath tm and earby villages. This vater works is situated in project area. In addition, hhSS aks available, in bulk, vater sWply to Kalyan tom and to onsumere in nihamuagar tmn y paurcha=ng, in blk,ater frm KIDC (ShbhadmeDavi). soever, Doivli tun otinues to get vater d~fectly fr~m NIDC. mli«andi unicipal OCuncil hag vater supply fron Veraval Lake (-ostru3ted by M118B (M) I ad partly frm MC. Thane tom is sffplied water frm UMC/kZDC vorks. 2.04 311SUB after fo=tian, desied to prepa. a Projact in its areas, as one of its dutis and funtions provided under section 14 of the 31188B AMt, 1976. PREPARTCM, APPRAISAL AND JUSTIZCZ. 2.05 «MRDA wa establiued by the 0 in 1975 to co-ordinate the activities of local authorities within US and to prmote regional investenut planing in su~h seotor~ as urban renval, tranportation, c'm=i4cns and water resoures mnagent. .2.05.1 aMMA, the principal agency. in preparation of tis project, prepared aeasibo~ ity studies ca this poea*t>rough their consultants. The Water esouces study ade by anDA indioated that ater availability is not as aritica~ as it originally appeared to be, and that tMer may be a =oderate vater surplus in the arma, atleast to the year 2000Z The project is an~&is- tent vith roamdations resulting frm the stuy. 33 2.06 The poect ara serves as åo~uLtory to Greater Dambay since a large population staying in th~=e tus L- mainly dqpendmnt om Greater losbay for livihood. The project area consisting of six towns namely, Thane, Shiwandi, D~nbivli, Kalyan, Uhasnagm and am~aruath alongwith 104 nearby ur~~nimg villags, in we oonacted with G9eate bay, jn te of hoth Pail and oad faoilities, since Central and wastern Railways. Western and Eastern Dighwayo, pas through the Project are.. 2.07 A rough asoument of the water uply dea~ and the then available sply (1978) indicated that against a dm of 160 LD the Mupply bad the deficiency of 55 MLD ILe. 35%. Th need for the project was thus aply jumtifLed. 2.08 Consultants were appointed by BNMDA for preparation of the feasibility report and for carrying out mater reources studies. This work was entruted by the mDA to =CONS. The work of soco-con~ic study to etablish the ability and willingnesm of the onmers to pay was imilarly aarded by the =MRDA to the Tata Institute of Social Science, ~anbay. The work of detaLled survey and alt* investigtions, detailed engineering demågn, preparation of plans and estiumtes etc. was entruted by the MSB after concurrence of the Sank to the consultants (STC) In technical collaboration of u/s. john Taylor and wmns, UK. Furtar, zIcmNs, ere also -=Dp"*iba for the work ~Ivdlved La respect of transfer of assets frm om1 to MSB aftsr the enbloc transfer of the nvironmntal Engineering Organisation of the G0 to the 3SSB In 1979. EICCREs almo provided simlar assistance In respect of acnmting system to both 3SSB and the hmnafiiary micipai Coils. 34 TARGETS AND GOALS s 2.09 The project area being very close to Greater Sombay, is exhibiting similar trends of rapid expansion in population, where rapid urbanisation and developmental activities are occuring. In view of continuing influx of population, as well as the establishmnt of two Municipal Corporations, one at thane and the other at Kalyan, to include the towns of Dobivli, Ulhasnagar and Ambarnath, there is immediate need to take a fresh review of the situation, after completion of the project. Imediate steps will have to be taken to work out the anw demands of water supply and find out ways and means to fulfill the me. It was given to under- stand that both WSSB and GOM have initiated actions in respect of undertaking the second stage of MSSP, not only to mst the uprated requirements of the original project area, but, also to cater the needs of some more areas like New Bombay, Nhava-Sheva Sub-Region and the Vasai-Vilar complex. 2.10 The project under execution was based on certain projection of population with same expected norms of population density. However, in many parts of the project area, vertical expansion has been noticed instead of horiontal expansion originally conceived in the Project. In practically all.towns a new trend of demolition of old building and construction of multistoreyed building at the sam place has been observed. This vertical expansion has given rise to higher population density particularly in old parts of the towns. Unchecked urban growth in the project area has further aggravated the situation and projections of water demands in practically all towns made in the sanctioned project have therefore considerably fallen short of actual water supply demands even in 1985. This is evident ftom the fact that at some places, the consumption (1985) has already reached the figures projected for the year 1991. The MWSSB has therefore no choice but to give serious consi- deration to the above referred second follow-up project tezmed as WSSP Stage 11. 35 2.1 The ~ctA has conducted detailed studies of water resources and suggested allocation of the. resources in SM initially upto th* year 1991-2001. In the light of above resource studies, the MDfA in its 28th w~ting finalised the recommndations for allocation of the. resources amongst six sub-zones of OR. Consistent with thes re ---dations, the GOM/98Ia are developing new resources by creating new storages to augment flo~s in the Ulhas and Patalganga Basims. Based on the e~omdatians of =DA on allocation of resources particularly in Ulhas and Patalganga Dasins, the M5S»B has proposed creation of tuo storages naely aros Poshir in Ulhas basin and nmar Morba on Dhavari river in Patalganga basin under 5SSP-Stage Z. OäJZCTIV~B OF THE PRO3=CT: 2.12 The project aimed at achieving the following objectives : a) To provide satisfa~tory water supply facilities in ter of wholeso vater in adequate quantities at . reanabla pressures to six municipal Tons and 104 urbanising villages with a total estimated population of 2.4 2id3ion and mewerage facilities to the six unicipal tons, ia the project area contiguous to BIC:. This project is therefore expected to help decongestion of 8mbay City. b) To ensure optimu utilisation of available water resours in aN. c) To make available vater supply to the consumers keeping in vie their willingness and ability to pay. d) To inprove the abilities of local authorities to iWplemmnt, operats and maintain water suply and uamrae facilities at satisfawtory level and to achieve finani and econmaic viábility. 36 2.13 H gEMEITS INCLUDD a) Nor* effectivo us of availabl water supplies as a result of ceprehensive metiring and prventive mintenace of defective pipelines by eak detecio and re.iru. b) Mva effctive colleation and diposal of asesg ftm thickly populated aram of six uaniipal tunm overed under the projeots and to provide healthy sanitazy vizoneants. c) *05-job* training oz ~SSB/ocal auth~rities permannel aslociated with the project through the various enginevring discipUnes involved in the different phses of the proje~t. d) Devolog~ant of the nevly foed Nhurashtra Water &ugply and Sewerage Moard and a fuif11lne of one of UMRDAs funGtions to co-ordinate an manitor a regional dvelop- ment progra^. in a major setor. . PR3ECT CONCPTS: 2.14.1 MRDA conoeived the proje~t after conduting detailad gtudies particularly, of trends of urban/zural growth adequaW of vater resourcs and sooio-enoie aspects to asess the ability and viLlignss of the people in the region to pay for sustainin• .the project. 2.14.2 selection of the proje~t area (417 Sqe é ) was greatly Wlui~a by the priority given by UDA to providing essential seviss to the rapidly developing urban and rual oc itics cn the ouskirt of DIM. 37 2.14.3 The project was designed to met the water supply demands for the projected (1991) population of 2.4 million (1.60 N Urban and 0.60 Raural) with 1971 census as base. The BamDA also conducted a socio-economic study through the Tata Institute of Social Sciences, to justify the ability and willingness of the people to pay. The fact that urban poor termed as slum dewelleg, who have occupied a large area in the towns, have lesser ability to pay and also have a limited access to the water supply facilities has been accounted in the project. Consistent with the recomendations of such socio-econmic study, it was proposed to provide water supply in the towns at the rate of 120 LPCD for private house connections and at the rate of 50 LPCD for supply from public stand posts. A lower * supply rate of 70 and 40 LPCD respectively was assumed for the above norms in the rural areas. 2.15 The project also included certain provisions in terms of non- domestic use both in terms of comercial, as well as, industrial utilities. During the stage of preparation of the project, 00 decided that the responsibility of making available water for industrial purposes (outside local authorities area) may continue to be vested with the MIDC while all future requirements of camercial and industrial use within the project area, should be catered by the NMSSB. The MRSSB is thus expected.though in small measures, to earn certain additional revenue from the non-domestic consumption so as to partially subsidies the domestic tariff. 2.16 01bas river/creek divides the project area in "Northern Ars" and "Southern Area". The northern area covers Thane and Shiwandi Tomns and a cluster of 55 villages having a projected water supply demand of 210 MD (1991) . The southern Area covers Ambarnath, Kalyan, DombivIi and Ulhasnagar towns along with 49 surrounding villages with a projected water sply demand of 38 194 =ED (1991). Ulhas river has saline vater down stiream of Shahad Intake due to til effeat. - Projeact provides 404 LD- (1991) ot filteed wbolome vater in th project area. 2.17 Water supply dmads of 194 mLD of"southrn sctor*ill be satisfied tr existing vater vorks (with augentation) of bWSSB (Uadlapur - 49 LD) and MIDC systems (Shab/a~v£ - 145 MW) . novever, for obtanig vater supply requirements at 210 MLD for Northern Sector" of the project area Lndspsndant n-r vater vork* at T~=gar with jntake at sah~a (Ulhas river) vas proposed. Tis approach is consistent with the roæ..nat+4as of the system analysis carried out by KICONS, consultats appointed by =MDh to investigate the water resources ma suggest water alloation. The system analysis established that the pr9posed mthod and sequnce for development ot resources is the least cost solution. The study ulti~ately defined snd justified the need of constrction of new water works at Ubas river, aXlUsivøly for the Northern area. PROWECT DESCRIPTIN 2.18 Unabate, unchsced and unforeseen comtinue .u~rba and Industrial groth ta tbe project area resulted la reorieation of major oa, anents of the proect suh ah bridges for tranw~ie=snn ains etc. dluring detiled investigation and engineering. The orgtnal approach In the project had therefore to be changed to *m~ 'tent to accnnodate duplication of *ajor camponents with least cost solutiorn for optimal utilisation of the system, to be effected at a later stage, øs and when md arose. These changes have also resulted Into cost overrun. Finaial constraints wre however, taken into consideration ~ while adopting the above approach. 39 2.19 hAter re-orientation the project now consists of constructian of a new vater yorks an Ulas river and allied vorks for the northern area, aug~ntation of capacity of Doard oned Badlapur mater vorks and allted vorks such as tranmlson feøder mains, storage reservoirs and distribution in the south~n area. The project thus consiats of the folloving parts i a) Water SUDly and Distribution System 8 construction a intaa and pu~ping station at sBha cn lMas river (apacity 210 mD), a vater treatmnt plant at T~bghar (210 LD) 228 Va lang pmping/gravity tran- wission mains, rav and pre vater p~s (10 Mon. installed caacity.5000 P + standby), 2 master »alaning Rservoirs .(apacity 18 MIL), 4 bridgen across U~. a~reek and aldhni river to caZz tran=mi:asian mains, distributi~n reservairs (30 for towns and 95 in rural area), as vell as distribu~tian mt wark 800 Ela lang. b) Semrage, Sevage -Teatment an Disposal Work : Ernun of the seerage system in the towns of tane and biwandi (48 Mi), mm swage colleftion system in the tans of Dowbivli, Ulhemnagar and Mbannath (208 M), necessary se"age pwung stations, pumps, sewaga punaing amins, 5 priary usvag9 treatment plants, (capacity 117 LD), et fflunt umins, 22500 ro~ side chamaørs terme as property connections, along vith a storm vater dratn (1.3 Za) in Dbivli. c) Consultancy Service and Training t strengthening of uassa's enginemring organisation and impriveuent of related techn~ial aperations through tecbnical assist~e and training. 40 2.20 .lh project vas adm nistratjvely approved by the GN vida resolution No. DA.1277/A/UD.20 dt. 2th Sept., 1979, fr a cost of Ra. 860 aillion based on feasibility report prepared by RICOMS. The project was expected to be copleted by Sptber 30, 1983. 3.21 Rual Smnitation : A snitation project for 104 villags for the aoject ar^a was prooed by the ESSB for the period 1982-4. 0 had also confirmed that sufficient fds would be made avalam to i c ~ent this proje~t. Accordingly, a proje t was alo prepared by the jtSS *arlier. In view of large aIfna of population and heavy urbanisation in the~ villages, the possibilities of having ~uch a proosal ~ere os~ek to be rete. The schema had theratore to be reoriented to momm- date aultiutor.yed buildingI being constrcted in of thes villages. As such c*olete sewarage systems may have to be propoed in som of such villages particularly whn theme villages are nw covered by the Thane/Ealyan Coporation. the sewerage proposals for thse villages are nw being overed under IHSP Stage 2Z. 2.22 Project medefinition : For detailed ste investigation, sub-soil eplorat*~us ver continued and detailed engineering design vere grepared. Cwrtain changes vare proposed by TC during detailed engineeing whic are hted at annaee 1. th-s chaufs iau carefuly oa-idae by the m»SS and wera acoepted and 'acoodingly the project vas redefined. 3.23 The ohanges lUt~d at Annexure do not materially affect the project performance nor the revene collection. oh ab~agas 41. howsver, had appreciably affected the project cost. The project authorities however, were not able to identify the element of increase in cost solely due to these changes. 2.24 The project cost estimates were first revised in July, 1983, from Ra. 860 Million (US $ 100 Million equivalent exchange rate 1 US $ * Rs.8.6) to Rs.1340 Million (US $ 155.8 Million equiva- lent) . The Bank discussed the issues of revision of cost estimates with MSSB officers, when it was indicated that it was proposed to defer some items of distribution lines and sewers in areas yet to be developed. The Bank therefore advised the MWSSB to workout the realistic project cost keeping the scope of the project same, as conceived in the sanctioned project. The WSSB was also asked to incorporate a list of works which the MWSSB intends to defer. 2.25 Such an exercise was carried out by the MWSSB and a comunica- tion in this respect was received from MWSSB in January, 1984. It was indicated that the total Project cost is expected to be R9.1620 Million (US $ 188.4 Million equivalent). WSSB desired to process estimates worth Rs.1340 Million (US $ 155.8 million equivalent) for approval of the GOM interalia deferring works worth Re.280 million (US $ 32.6 million equivalent). 2.26 Subsequently, however the issue was reconsidered and GOhR approved the cost estimates for the entire cost of Rs.1620 million (US $ 188.4 million equivalent) under Resolution No. IDA-1283/1772/CR.212/UD.16, dated 28th November, 1984. No works are now proposed to be deferred. 42 2,27 Ih* Projet eot estimates of Is. 1620 illion do take int acoout the change s ~ggested by S=C during detailed eMgi- neering and thoe. necessitated during £ap3emnta,ton of the project. øese ere ~ os¢ly.di to sito diffio ties such as on-availability af adequat* land, peculiar local cond- itiongs etc. Ckidation Pnd originally co.telated for Uhivandi town had to b* deleted and instead, a conventionul sevege treat mit plant was adøpted du to land amquisition constrainte. • 1 n rojeat deusription has therefore undergone =hanges during iqpiamentation. I. modified projet desoriptiom is given in annexure . 2.28 ne date for projet caqluition was also revised fo S~pter 30 1983 to September 1985, by hich time it was supposed to mak available ~lèrified water to the ne can srAi in the Northern Area. It was cpe~ted in Nov- ber -194 that the orks under serage coents wold spill over eyond thi date and further epeted to be o0eted by Deomer, 1986. D=Iring revie at the pro- grs ending March, 1986, it was lear that even thi. eztended ded lin vil aleo b* cromed. 2.29 Inrease is the Proect coat had to be shared by prapor- tionate inrease in the popular contribution, oe. grant and the lon (in~lulive of credit from the bank). As per the credit agremnt the Bank was aemitted for a credit of US $ 48 million only. GOE had therefore to bear the ~ntir cost over~an. noeve in vie of variations in tha exh=~e rate haever, Sank redit of US $ imdiln. ""ing the a, euivaent MOunt in rupee currecy inMreased aProxiMately from Re.413 million to M9.493million. 3.01 Stat up an the Proje&t was «lo and delaya oqou~d for a variety of reasons. me Conmultants ere appointed o Deeber 5, 1979. Sub~ission of various designs, detail- ed estiates, eta, as however, considerably delayed minly due to land aoquisiton dWilulties causing obstructim~ to sit* investigation and muvey work. ere was algo the ainistrative proble= in view of enblo trmfer of the staff frm the MWvironmatal Egineering Ogani- ation of ON to nely reated ISSB in NoveMber 1979. 3,02 Te ank noted in November 1984 that the ilm=tatio was 27 mnths beh nd cc~*dnie. ~e bank further not that there bad been consuderable progres on har vater treatuent, to initially provide clarified and disinfeted water. 3.03 wleatation Schedule at appraisa stage, the omWletion -dåte ~fortheftöjeé t was fixed as end of Septe~ber, 1983. me Projeot as thus proposed to be ofpleted in a period of 4 years inoluding prelininaries, detailed engineerinvg project organiation obilisatio, land acquisitio# exectin and o~4mi«~ning. 3.04 above ti gan~* ould not be adhered to, be.au öf varis nforesemn difficulties during saw*~tatin. Dum to n~arnas to 9may, land acquisition oreated o- ~cations partnarly du to stiff resistane fe~ the- land Omers. Nobilisatnio of the projet organisation almo anse omnsiderable delay particularly in viw f 44- sdaLnttraties gbl, settaig up of field offis etc. moreover erratc sply and shortages of Inportant. onstru- att~n mterials lik. m ent, steel, sand etc.# time volved .n gettn pk=ime~ from varmmus private/govermmt 'genotes and däffimultes Mperienoed ta aying out the workb in heavily oagested localites of the toaa, man~na further delay in the project mp.ltati on edene. 3.05 ~ank uissions had, on several ocasIons, disoussed with the ~UU officialc the pogress on the works duly onsidering the reasons for delay. The issue Vas disoussed ln detail in rebruay-1984 when the åiston tak a note of the faot - that ater lapse of soms time over the evaluatIon of the offern for T~~ghar vater Treatment Plant, the work was awarded as.late as in February, 1984. The misuson almo noted that the works on tuo major bridges aoross Ulhas Creek at Saravli and Anjurmrah vare progressing wll, though not czactly according to the schedule. It was th• IadnMated that supply of c~lred water ould be possible by Septeber 1985 and coe~letion of semroge works was expected by the end of December 1986. 3.06 CrItical review of the progress as agan taken by the . imi tn November 1984. m~S8 officers proposed to rev e the ilemantation scaediole. The work vis oaupletton dates vare them revised and It was broadly agreed that ~aak of ater sumpply oponen s would be ocileted in all respets by September 1986, by ~ah time the Teghr Watar Treatmeat Plant was proposed to be fully o~~pleted and o~-to.sd. Project authorities further hoped to supply olarifted water to the needy consrs in the worthern Area by Sept er 1985. Tater supply ca~poaents of Suthem Area wrq epeted to be oospleted by December 1985. 3.07 The Misst~m further noted t November 1984 that evaluation of offers for sevage treatmnt plant for the toné of Dmivll, ulhaffimnar end Ambarath took some more time. Tenders for Sevage Treatment picat at Thane vare yot to be lnvtted. Um 45 was rethinking of having conventional sewage treatment plant at bhiwandi also, in place of Oxidation Ponds proposed in the sanctioned Project, due to non availability of adequate land. 3.08 Works on Dombiv1i, Ulhasnagar and Ambarnath Sewage Treatment Plants were to be started in October 1984, after the rainy season, and were proposed to be completed and comissioned by Deceasber, 1986. The Sewage Treatment Plants in Thane and Shiwandi were also expected to be completed almost by the same time though offers had not been invited. 3.09 The mission during their visit to the Project area in November 1985# was informed that even these extended dates were not possible. The Mission however, noted that water supply on temporary basis in southern area had already been commissioned without waiting for completion of the storage reservoirs. The work of transmission mains for the towns of Dombivli, alyan and part of Ulhasnagar, as well as reservoirs and distribution system was mostly completed. Mission also noted that water supply to shayandar was augmented as an interim measure by obtaining extra quantum of water from BMC. 3.10 The delays occured on account of several factors as under a i) Difficulties in Land Acquisition. ii) Delay in material supply like Cement, Steel and CID Joints. iii) Time involved in permission from other authorities. iv) Difficult working conditions v) Labour problems and civil disturbances. A detailed account of all these reasons is listed at Annex=re III. 46 3.11 1M188B, in- ac~ordance vith Bank's guide line, invited IcB tonders for muply of materials for construction at Vater ad seWage treatent plant etc. But for the time involve in getting colearanme fram G=I for foreign ch ange and reibrent of zEise and Custa e oty etc. there vere no major hudles perienaei by 18UU. 3.12 All contrats for Wquigmet/material/ ters were to be awarded-under B procedure except for itms costing less than US $ 50,000 (aggregate valu* not exceediag US. 1 million - Clause 3.24 8.L..). 3.12.1 1M=1SB invited 7 iB tmnder for -ater and sewage treat- ømnt plants ad 38 im tende for equipment/uaterial/ meters. 109 foreign fius prad tenaer daen-ta and 31 foreign fi~ partiopted.in opetition b sub- mitting doumnts in time, 4 foreign bidders ere soess- ful.in getting contracts (an n 3.12.2 esponse fr~m the -foreign bidderu was found to be poor. It is nmm seen that some foreign fims have become part- nrs in Y4ian ocaqanies which enables them to give re cæpetitive bids and als accept py.ent to Indian omr- enøy. M~5 suggest tbat the lmit of US $ 50,000 say be raised to US $ 0,5 million for local e-sttive bid as foreign bidders are not attrated for oml itemo. 3.13 e epreial report 6f the Prmjeat indicates a .total foreign c~øhanre equivalent of US $ 9.7 amlon. the agpraisa1 estimates, a-æted for foreign exhange vomponents of direcatly lavorted mter~ls of loal prored gods and the cost of iported materiale and 47 equipments in respect of civil works, particularly for the Temlhar Water Treatment Plant, as we4l as for Train- ing and Consultancy. 2he appraisal thus made provision for a large participation of 'foreign firms, but very few contractt were won by such foreign firms. In effect only US. $ 1.99 illion of direct foreign exchange was actually utilised. 3.14 The need for revision of estimates was immediately notic- ed by the Board when some of the detailed engineering designs were prepared and site investigations were carr- ied out. Certain estimates for ancillary works of lor *nature were Also required to be prepared by the BoaXd's field officers. Higher cost of accepted tender, provi- sions made in the tender in respect of price escalation, also indicated substantial increase in the project cost. 3.14.1 A review in this respect was therefore required to be taken not only by the Consultants but also by the various concerned USSB Officers, who had better idea of the situation, particularly in case of the offers already received. It was some time in February 1981, that the MSSB officers initiated action on review in the project cost which was then expected .to be not lower than as. 1180 Millions. The process of revision of cost estimates continued further and it was in July 1983, when the Board arrived at the revised project cost of Rs. 1340 aMillion, eventually deciding to defer some of the works, which were to be executed in the area yet to be developed. As desired by the Bank, the cost of the Project, without restricting the scope, was worked out as Rs. 1620 million in 1984. the Project authori- ties are hopeful that the final cast would not exceed the figure of Rs. 1620 million. 48 3.15 amasons for cost Overman - As desired by the ak, the IUSSB has identified to the entent possible, the reasos for cost overn of 88%. ~e cost -ovrm ha* ben attribut~ minly to, mjor - reaons like - i) Designing so of the vork for optmal us. it) Mdito of a brifge across Waldhui river. iii) changes in type of bridgs. iv) modificatios arising oat o' detailed investigatin and eploration. v> Inrease in the lengths o tranælsiff aan and seuer*. Vi) Provisioa of additional .nuer f rservoirs forv. lages. vii).. Canges arisi g out of nom-availa1ty of ad*quate lands. viii) Unpr ndeutad pri~s riss in the aost of eJui~mmnt and labour et. Uese details have been listed in Anmamre V. 33.1 me mak advis~d B under letter dated Mroh 27, 19~4, that the biggest singl factor in the cost overrun sem- ed to be that the project Jacek «mre baed oM e34- iary designs Widh re radically altere at dam design stage. Delays in procurumsnt and Ifiation over a lnghten~d period of ~tatia o mde a sa bt- antiam cmntributinm to the prben. • ~a ak als advise tha future grojects mst therefore be gror nsye r. -arefully, that is e 49 i) Detailed design shoult be prepar and amcurately coste. iL) Design changes must be kept td a min~mm and be Vell justifled. iii) Land equired for th project should be aoquired in advanae. iv) Kmasures aust be taken to rove the dølivery of goos and s~vices through mre atficlet proouent. svaluation and aard poeduro. The oard under letter dated May 22, 1984, ackno~ledged the advie of the Sank and assured that future proects, partiulauly, NSI Stage- 1 vill be designed and costed La uch more details, prior to appraisal, and that the vhole prossg of pro u t »ould also be speeded up 8o as to avoid heavy cost ove~ru. 3.17 t following table shovs th* brek down of the aost mg vious bro~d catergories. 9803802 CosTl (Rs. Z= Million) At At revision At revis~on partiular Apraisal of 1983 ot 1984 (1979) (»stri"ted (Sope scope) unaltered> mater supply Cmpom t 314.000 779.566 931.960 seerage compoeat 186.000 196.452 360.892 co n gervies to include stores, workuhop buldngs and vehicles. 17.000 18.000 18.700 Consultan y 10.000 18.000 21.200 Other to inlude msmB establishumnt, training and land acquisition. 53.000 120.000 120.000 ContingWncies 236.000 147.490 206.756 Custam Duties 21.000 36.473 36.473 Taxes 15.000 24.019 24.019 Total Project Cost 860.000 1340.000 1620.000 Details have b~en given at anmgure VI. 50 3.17.1 &MM' bas continued to have the spport of the consultancy wder an extended agreent valid qpto 31.3.1986 against the contract value of Rs. 3.6 uillion. Euever, by March, 1986, only about 2/3 work could be c~Opleted SlB has initiated action on negotiation for a third agreent for the period, upto 31.12.1987. he Project authorities expect that this additonal cont would also be a--Datod Vithin the revised cost to Rs. 1620 *illion. 3.18 Project Redeign The project was not redesigned in respect of basic concept. such as additions or deletions in th* project area, locations of major works, scope, method and abstraction of water, its treatment and conveyance. However, sub ~tantial changes vere made in the Project Coonents in view of reorientation. In addition, local boosting arrangnts on the rural -rä=num«i n maini (hyander) have been med. Pollowing aspect. have been considered in the Project redesiga. 1) Inraein population In rural areaw Projected pog~lation (1991) in rural areas has been increased from 0.77 miln to 1 aillion (30%). ii) maition of a bridge acroms Waldhai river. iii) Construction of new conventional water treatment plant at Uadlapr in lieu of prating f loW of existing plant. iv) Changes in design of ame work onmo"~t" for optial use. v) Provisio of additional nisber of reservoir in • the rural area. vi) Construction of conventional seage treatment plant at mhivandi in place of Oidation pa. 5 detailed account of gs. thes issus bas boon listed at annexure 1. 51 J39tinton at føasibilty stg - Coet over=m f=m Pu. 860 million to Ps. 1620 million has bem to s extent, attributed to under estimation at feanibUiity stage. leasibiity studies did not cover detailed site investigations, sub-soil explorations etc. Thus nature, amb and extent of bridgen and other crossings vere rather a~ estimted at feasibility stage. ~hre ha been inorease la the length of tranuis=ioan main. Cost ise, large variation aggeas in cama ofs the distribution syste. Provisions ade in aggtai~nt based an block estimates converted ~nto unit rate of populatiom mre cn loer aids. sd=i1arly, the provisions for vater nply and sewage treatment plant (on L.D basis) mre also foum to b. on loer sida. This vas oe sc ir case of ZCB tanders here aternational standardo have been proposed In respet of uany of the caponents. 3.19.1 the Project authorities hoever have not been able to « Utly identify the extent and effect of under estition. 39.2 Project authorities have concluded that the tes of xeterace for preparation of the Feasibility Report »tre nt adequate to arrive at realistic project cost. te projeot authorities have asured that future projects iii be dega~. and costed vith mah uore details prior to appraisa. 3.20 Diob=rmø sea, anticipated as per igraiuai Report s per a=tfs ar» at Amaemure - vz. The details have also be~n enbbted in the fom of gropuical pesentation. Initialiy, satuals iere on lomer side t~a antieipated. z~uever, after vema~hig the stage of 3 years, after begining (Se 19a3) the aautais ~ere little higher than the targets Sa re currency. The same trend continued for next two quarters 4 dbsuenatiy again the actuals ere slightly less tha tazget S iea curreny. Dollar equivaleant vas hauever Lo~r tha 52 3.20.1 us, by the time the original closing date of credit was reached (30th ~me 1984), the ~uiusia of clais was =re than 90% of the target in rupe currency. In view of the increasing variation in the exchange rate, 824 of target at averagc rate in US$ was .reached by original closing date. On receipt of a comniation from the MSSB, the ank agreed to extend the closing date of caredit from June, 1984 to jme, 1985. Thereafter ho~ever, the M~SSI successfully achieved the target and adhered to the atended closinq date of credit. 3.20.2 At appraisal, the exchange rate was 1 US $ - a*.8.60 which reached as high as 1 US $ - Ps.12.30 and the average exchange rate was 1 US $ m Rs. 10.00 approx. Riough the project was first of its kind, as far as the 16ssB is concerned, there vers no problems in respet of sunmiesion of claims or actual 66~bnrsumnt. Full clai~s were umitted by =SS before 30.6.1985 and the closing date of credit vas adhered to. 3.21 Perforance of Consultant, Contractor. and suplier and r^158B - CONSULTamT Msa9 had overalL. reponsibility for engineerig design, planning, fmnagement, construction and supervision of the proje~t. DUM55B did possess adequate expertise and techaical skill required for the project. ~e projet of sach magnitude and size houever involved additional mork load re~uiring considerable månpover input. The appointment of consultants to undertake the engineering design of both vater spply and sewerage cosponents vas therefore desired and was a coandition of effetiveness Of the credit as per agreement. SgC in association with John Taylor, U. K. vers appointed as Consultants 53 'n Do-m~ 5, 1979 vith the oanan of the Worid Uank to provide enginering designs, comt stmates and te~dr doamnte for both vater upply and severage cp~ouets of the projet. 3.21.1 '1. site ospervisiom for both vater supply and seer- age vork lae arrmed out .by 118B which bad lng *ta ~ng eaperience n uv iativotes, as nubr of such major vorks verm caied out by tb Board, h4ich bad £ts jurisdiction, thrug«ot the State of xaara- ghtra (outs~ DC). 3.21.2 ~is~tane of the aoard fnginers vas also aode available to tbe Cbultants who had better knowledge o ~ te site 0onditions and the depa tal proIedur.s, whi%h helped the Cnsultants to prepare their proposals. Me relata betU~ee the Consultants and offiars of the .oard »ere genealy ordal. ~is as the first tim . that the Doard entrusted the=~ok to the Cnsultmnts. Teething troubles la view of o 4.atå.ou gap e. Ssoon ov . 3.21.3 t Projeæt opltio date as per time v»benia vas eptmer 30, 1983, and the p~rio of the BWC's consul- tancy service was fixed for 48 uantb mding Dece~ 4, 1983. 3.22 2me Projet are, predominently dotmito of ay metrops, continued to uperience unprecedentag Uyan- Imatiom arisig out og heavy ifrin of pqg at#on, resulting la fresm ppoach to ngineering desig of key Bcponents of the proeact li eghar . - Intake, trangasl= æains/bridges, vatar/mevage treatsat plants, storage r.servoirs etc, ~nadruate BMnveti- gations at feasibiLity stag. further aun.d SIC to 54 make sustained efforts for collection of basic data particularly in ural areas, reåuired for detailed engineering design of various co~gonenta. STC bad also to face great resistance from the land omers during detailed investigations and survey work. %he Conultant started the work in the arly 1980 and had to project the population based on 1971 cen~us. Ihe popua1tion projections when copared with the 1981 census (available in 1982) wers found to be realistic and adequate. Ie approach papers, design, cost est~at~s and tender documenta prepared by the consultants ers realistic and of adequatm stana'd. ST' s amurate cost e~tiates and larity of dom~ta ~abled U888 to get very good response from reputed an experienced agmcies and almo enabled 1IM= to finale bids without ach loss of ti~.. STC, with great pains and special Idforts traversed the entire vast projet arma (417 eq. m.) and ehibitd adm~rabt, weil intimate knoledge during the investigations and detailed engine- ring of the project. e services rendered by SC were satisfactory, ade~ute, and. of required setandard. 3.23 Se projeft was to be co~pleted by September 30, 1983. %e ens-1+mnwere appointed on Sth December, 1979, an their ontrast was for 4 years snding Decr 4, 1983. At this stage, the major work of river intake, trans- misson eans, bridge carrylng tranm~ission nain, etc, wre in progress. Work of Teghar water treatent . plant was yot to be started. Work of sewerage was started in Dambivli, Vufanaga and Mbara~ath hile that in hane and mhiwandi as yet to be started. Agencies for all he 5 sewage treant plant vers yot to be finaalied. 55 3.23.1 Bank suggested to consider continuing the services and the support of the Canmultants during the remaining period of mplantation. fme Board accordingly entered into an extended agrement with the Consultants in june, 1984, with retrospective offect frm December 5, 1983, upto 31.3.1986. he extended agreeent was in respect of. identified activities where the assistance. of the Consultants wais expeted to be required, to deal with the ismes arising out of actual site condi- tions, changes in proposals, scrutiny and approval of contractors' own design, etc. About 2/3 of the work conceived in the extended agrement was over by 31st March 1986. and the project authorities have initiated action to negotiate further contract upto 31.12.1987. 3.24 CONTRACMOS Coantractors of national repute were engaged for major orks like Tranmasi=n mai, bridges carrying tran- mission mis, water and sevage treatment plant etc. Local contractors were engaged for other workg. In a few cases, Labour Co-operative Societies were alao engaged for carying out minor morks like property connection, consistent with GOM policies. STC's good tender docusntation and clarity of teras of reference and fairly quick decisions by the Bard engineers subutmntially reduced :likely conflicts arising out of contractual obligation/interpretation. Financial asistance in the form of Mbilisation Advance particularly for contracts of major key ompo- nants enabled contrators to accelerate progress of *orks. Unfornately land acquisition difficulties and erratic upply of key construction materials 56 created cloeationm and caus delay la ~apsmit- tation causing ebarasent to both, eISS and Cau- tractora. Mbe performnce of the Comtatoras part~oularly on key componnto of the Project was found to be god. 1s project ar~a being near to Bomay enabled UIhU to get good contrators particularly for major voks. 3.35 PRCURDEMEN - 2portant key material required for the Projet 1e mostly abtain~d vithin the country. Steel plates noed~t for fabrcatia of ppes, butterfly valves, dutle das pipes, and se slumce valves, were pvo ue fvor faae~p countries. Other materials, incluing meohanioa. electrical equijments have boen obtaine vithin the country. in case of Tgha Treatment Plat n=~mu~ required for filters have been imported through the successful constrution agency though MIssB vas not require to make available foreign exhanga. Te quality of materials, both ~oeign and indignous vs satisfactory and adequate. 3.351 m=5ss follo~ed the ank gu~in s for proMNrent G~ zæ contracts. Uafortunateiy very fLm .foreign-idd s m~re uccessful In tbe ca~gpetition. Kild steel plates ad duatile Lron pipes,« upplied by toreign fir~s wre at superior quality and high standard. »mp tation scmean vas, to s extent, affected due to difficults La procur~vet. . . . 3.25.2 nifficulties, however, were experienoe La supply of May constru~tion material like cmnt and staet. aut s-O ~ ly was tly Inadoqate and requrd very careful and JdUi planning. bUSB ad to make sustane effortf to SPOcOe ant to acheve satisfactory progres on project. ZMW te m nt vas also used to tide-er diftiult situatimn. Suply of id steel vas also errati. avi1ab1Ut of. steel fro Governmt oand agenes like Steel. Ath-ri g 2~eta JI was Inadequate and MWSSB had to procure steel from other manufactWers and suppliers under local coetitive bidding. 3.26 SASUS 0S IMPLENENTATIon - The Project as per original time schedule was to be completed by the eand of September, 1983. The date of closing credit was June 30, 1984. Due to various constraints and unforseen ditficulties the project tame schedule could not be adhered. Closing date of credit was, with the concurrence of the Bank, extended by one year (June 309 1985) . 1WSSB, through careful planning and sustained efforts, succeeded in utilising the IDh Credit within the extended time. 3.26.1 The water supply component of the project is expected to-be commissioned in 1986-87. MWSSB, where possible, gave benefit of the completed components, particularly in water supply sector, to consumers mostly in scarcity affected sones in -bouthern area. Benefit of increased water spply was given to Dmbivli, Kalyan, Ulbasnagar and Ambarnath towns. Zn rural sector, water supply is commissioned in 31 villages in southern area of the project. MWSSB thus gave much needed relief to the consumers in southern area. 3.26.2 Detailed engineering indicated considerable cost overrun. MWSSB therefore apprised Bank Mission of its intention to suitably reduce scope of the project by deferring few works particularly in extension areas of the towns to keep the cost of the project within reasonable limits. WSSB intended to reduce considerably the scope of the sewerage sector within the towns to achieve cost reduction. Sewerage sector works were therefore delayed. GR however, at a later stage agreed to retain full scope of the project by making available adequate finance. Sewerage works are now in good progress and expected to be comleted by the end of 1988. Sewerage works are time consuming mainly due to narrow busy roads and heavy congestion in towns caused b unanticipated vertical expansion. 58 3.26.3 ~T anD h~wandi civi authorities have »ade approsstate bye-las to compul house o~nr,vith~i speclfiad distance to oneot latr~e to 0elrage Oystm. m1m8U Coutoius to gressuris6 other loal authorities to provde silar by-laws. 19. COERATZNG PERUCISC 4.01 5U81B, as envisaged in the proect, is expete to as the role of bulk Maer upplier for the utire projet ase. garlier, 6 to,ns covere under this project had individua Wa~alt council. Position has no udn~rgon cag dm• to setting up of 2aa and Kalyan ganicpul Corporatis, extension of the lts of ähiaandi atipal C~0oi ad upgrading of hay~ad.r Village Pachayat to S~~nicipa Coumil. status. In the Southen setor, 49 vi~lages o* the project, are maged in Kalyan Vhnicipal Coporatien. Similarly 8 villages of the projeat are in~lded in the limits of 2ana Iaaipal Cooporation. ShiwaAi. as ay upgraded shayander unicipal enn=ai1 respetively inl~af 8 and 5 village, of the projet. oms 70 out of 104 projet village are within the Corporation/Iaioipul Council. almts. 4.02 Ns8B vill operate and mantain BaGlapr and eYly oge ted Toehar Water Works, i~cluding associated -i- -« syse upto ~ulk spply points of local authorities. U has initiated steps, to cause local authorities to t~ke- over the »ep4n1411~lte tor operating and mataining vater distributin systas vithin their areas. -Seage syses youl be o~ned and aintained by the repstive hocal authorities. 4.03 Northern mser of the project will draar vater from nma construted Tfghar vater Works, coarising of rver bead oEaks, age sised tr==~is4M =asg, brilggg gaggig tram=eissio umins aeross Ulhas river/vauek, yater tret- snt. plant, puping mache•y (Pure/aw) and pffs wt feeder t ansmissia main of sissable lengths. U.ess es 60 ave in advanced stage of oeletion. 4.04 Existing IDC (Shahad/Darvi)· and IM=s8B (sadlapur) Water Woks vill continu to feed, though nely constucted conveyance mains and distribution net work, vater to southern sector of the projc.t. Works in this ara are mostly affleted and oamssined in Do~bivli, Kalyan, Ulanagar and Am =erath to~ns and 31 murround- ång villages. Capacity of the sadlapur Water Work is inoreaea to 49 MId by contructing an additional 18 lad capacity vatet treatmnt plant. is vatet treatmnt plant is 0~-.assined recently. 4.05 851581 vill assist the local bodies during operation and mintenance f<r proper upkeep of watet suply and seerage systu~s vithin the areas of local bodies 1M851 vill almo help the local boes to provide 1s detection units to prevent vastage of vate La feeder min and distribution net york vithin the låmåte of local bodies. 4.06 The inMM1 has adequate expertise of operation and maI- tenancm of vtet works in the State. 1M18 has Initiatod to provide adeuate staff necessary to operate and maintain nevly reated Uffhar vatet yorks and associated trans- mission system pto bulk supply pointe. Badlapr mater wozka staffing strength will aleo be suitably strength- ened to operate maintain newly constructed Badaur vate treant plant (lu5L). Training progrWass for the operating sta f have been successftully conducted at ~e masik Training Centre. set up under the project. gbus adagnuate qualifLed, experienced and trained personnel vill be available to W^185B for operation of the systs on c.plation.of the project. 8118mB latends to provide 61 a central Monitoring system at the Teaghar Water Treat- ment Plant assisted by modern electLonic system. 4.07 MNSSB authorities are confident that the Systems provided under the Project are of adequate standard with overall design reflecting current stage of proven technology. Smooth and troublefree operatbns of the water Supply a Sewerage systems provided under the project are anticipated. 62 V FZNWCIAL PERP0NCE 5.01 Background Prior to formation of the 1SB and transfer of the Zu Organisation to the Board, the financing and accounting of the g mas foring a part of the total Government finan a an accounting system. he accounta were mai- tained by the Accoumtant General, Naharauhtra and the same authority vas functioning as auditor for Govern- ment. The Office of the Accountant General is a part of the Indian Audit & Accounta Deptt. under the C~pt- roller a Auditor General of Zndia. Za so far as recovery of vater rates is concerne it was generally ensured that tarrif for the supply of water was suffi- cient to cover the operating expenses and depreciation. •5.02 The MageSB mas established on ist .January 1977, under the oSsB Act 1976. 1Section 27 of the Act premcribes that" the Board shall not, as far as practicabe, carry on its activities under the act at a loss". After the formation of the Board a separatå rinancial Wing was created. Under the present finance and accounts wing, the Financial Adviser and Chief Accounts Officer is in over-a. charge of the functions relating to finance, accounting, costing, and internal audit of the Board including project. The Financial Adviser and Chief Accounts Officer (.A·s C.A.O.) is assisted by 3 Deputy Chief Accounte Officers and other subordinate staff. Ie accounta of the Doard are. homever, contin- ued to be audited by the Accountant General,Maharaehtra. 63 5.03 Accounts ft Proiect Areaof emiss Section - 4.02 of the Project Agrøment with the S=B requires uain+nance of separate acc~nts for the vater supply and sewerage service in .the Project Area on om- ørcial line. 4 tema of this provisiom the vater works at gada~e and Ulhafagar falling in project area, ~r transferred to the Project in October 1982. Mhough the sm transferred to the Board vith offet frum. lst Noveber, 1979, separat* account for remipt and •auesment and otfher transactione could be maintained vith effect fro. 1-4-1980 cn the lies bea"and / b N/s. KZCOØ. ln respect of the perod of 5 mnthg from 1-11-197# to 31-3-1980. N/a. KZCU have ace2eted the accoumts for the Board. In tem of the jprovisian of the agresmnt a separate Income and Eapenditure account and Dal~an Shest, in res- pet of the vater vorks in the project area as ale» for the project as a whole, are natained. A Consoli- dated galance gheet, inaludig projeot and Projectes Water Works , is also prepared for the entire Board and subJOcted to the audit by the C optroller and di- tor General of Ina, who e appointed as Auditor for the Board by the State Gavernment. ~he perf0mann of tho Project for the period tro 1980-81 to 1984-85 i india- ted in Annanue ZE. 5.03.1 Acoounts of ~micipal Ceumils Seotien 2.13 Of the Agremnt with omu provides for main- toe«nan of accounts and other finn al statmæts by 6 Mauicpal Cuncils in the proJect area in respet of vater mpply and o*wrag services so as to otraut Maome and ixpenditure account and Balanoe Uheet. All the ainpal Cmmaoi (ggggot Onh«~hagm, •Amber.mth> 64 have mintain~ separat* accounts in respect of vater works and soarage syst~ heever in form. In respet of sMipal Counclls of aao.ath & UlIas- nagar the splie are mad~ by the aord and acomnts are main+aim~ by the Uoar itsef. 8.04 Progress of n niture gh table belov indicates the yar vise c*at iputs as mnvisagød in the staff Appraisa Rport (M vis-a- vis actuals. (2s. in millicn) SAtuals Year of puts Construction envisageØ materials T O T a L 1979-80 36 3.81 - 3.81 1980-81 145 11.82 15.61 37.43 1981-82 300 113.16 106.27 219.43 1982-83 286 185.32 67.13 252.45 1983-84 93 221.22 (-) 20.00 201.22 1984-S5 f -. .232.23 (-) 11.79 220.44 860 767.56 157.22 924.78 65 5.05 The expenditure in the initial period was less due to initial teething troubles. The progress on acquisition of land could not be in line with the frame, as ment- ioned in para 3.01. 5.06 'The cost of the project after detailed engineering was Rs. 1620 million. The Progressive expenditure in 1984* 5 was therefore more than the original estimated cost. Increase in the project cost was attributable mainly to a - (a) Escalation in prices of construction mater- ial and labour. (b) Technological changes necessiated due to continued unabated urban and industrial growth in the Project Area, resulting in reorientation of the Project. (c) Delay in project iaplementation caused due to unforseen difficulties, The Project is nov scheduled to be mostly couleted by end of year 1986 for ' the Water Supply Sector. 5.07 Financing Plan FY 1979 - 80 through 1983 - 84 At appraisal stage, financing plan was prepared for the project and the sources frnm which expenditure will be met, including state's funding pattern, were somerised. In view of the project redefinition and cost overrun, a revised financing plan was subsequently prepared based on project cost of 1,620 illion (after detailed engineering). The Project has taken longer period to coulete than initially envisaged during FT 1979. Actual expenditure incurred on the project was Ra. 1189.60 million at the time of preparation of the CR (August - 1986) . 66 5.07.1 11885 started cowisioning of vater supply in stages, in the Southern Setor of the Project area 5in 1985. 5.07.2 ImSB's F~inanning plan for the period p'* 1979/80 through 1983/84, at appraisal, as re%fined in 1984 and actually achiv ar* conard in. the folloing table s - M=(5SB FINMICING PAN FTS 1979/80 - 1983184. Sr. Descripti~n Projected Redefinition Actul No. at in Ty 1984 aning appra~ 31-3-1986 1. Requir.mnt 860.00 1620.00 1189.60 2. Sources of fund i) sneficiary contributian 86.00 162.00 84.58 =A) IDA Cradt through Gover- nnt of India 412.80 493.00 493.00 1) Contribution by Gavern~nt of Naharashtra a. Grant in AMd 318.00 758.70 482.30 b. uomn Coen"t 43.20 206.30 129.72. 5.08 Psulta of working of Water Morks As prescribed in covenmat no. x (Stion - VII OUvary .f gr.e.t an or,or.td in ». . t. a.c.unt far operations in the projeat aroa vr. maintid on om- erclal lines. The awmts e~re aleo finalased and 67 mumitted to audit generally within 6 months of the caos of the financial year. ihe results brought cut in the accountsvi-aris those assumed in Annxure-10 of th. SAR are indicated in Annxure-X. to this repor. We reasons for duferences appearing in the ass figures and actual have also been listed out in the anneture. 5.09 Setion 4.04 of the Projact agreement prescribs that "the revenues from sale of vater should ba sufioient enough to provide a rate of return at 4% during 1984-85, 5% in 1985-86 and 6% thereafter on average currently valued nt. fixed assets in operation. It contplata a revaluation of assets as indicated in Section- 4.04 (c) (Li) of the Agreeant. Since the auditors insisted on supporting the pevalation Fund by a corresponding investnt, the Board deided to~~dscontinue creatios of rvaluation reserve. ~e aoard however created a Depreciation fund duly supported by Invstmnt. lt assts vare røvalued for assessing of depreciation 1hi1e vorking out watar tariff. It is understood that the revaluation mathod is not in vogu even in the d~vaL- oped countries. 5.09.1 Urna value of flxed assets adeptd by the Board and thcs indioated in the SAR are givn in Annezure X. 5.10 Tariff Structur. and Revision of Tariff zm tarm of Saction - 04 of the Agrømment vith the the Soard has revis~d the tariff for suply of 1vater in te projet arsa as effective frm 1 April, 1980, Ia~y, 1982.. 1,~np, 1983 1,April,.1984, 1, October, 1985, and mane 1986. 68 A statement showing tariff levied by the Board from time to time is indicated in the Annexure - XX to this d.epot. 5.11. NWSSB purchase water in bulk from MIDC and supplies the same to its consumers in Ulhasnagar. 1WSSB also supplies water from its own water works at Badlapur to the consumers in and around of Ambarnath. During 1979-1984, there was no major increase in the cost of purchases of water from MIDC. Therefore the water tariff for the consumers in Ulhasnagar and Ambarnath was the same. During 1984 how- ever, the MIDC increased its rate of bulk water supply sub- stantially from Rs. 0.40 per thousand liters to Rs. 0.70 per thousand liters.. The cost of purchase of water thus appreciably increased in case of consumers in Ulhasnagar. WSSB therefore decided to have a separate water tariff for the consumers in Uhasnagar. Subsequently the Mahar- ashtra State Electricity Board (MSMB) also revised their tariff which necessalted WS83 to revise the water tariff for its cansumers in ambernath, with effect from 1-6-1986. 5.11.1 During the past few years there has been considerable rise in the cost of operation and maintenance of water works to include (i) cost of purchases of water from MIDC and (ii) hike of power tariff by MSEB and (iii) increase in the cost of stablishment. Eventually the water tariff to be chArged to the consumers in Olhasnagar and Ambernath during 1985-86 is more than the tariff for the year 1984-85 anticipated after completon of the project. 5.12 Covenant of the agreement also requires GON to ensure that for the year 1980/81 through 1982/83# each of the six MNK- cipalities in the Project area will review and set water tariff, to cover operating expenses, debt servicest etc. For the period beyond April 1, 1983. apart from the above requirements the municipalities were also-expected to earn 69 rat of return on the net fixed a.nets in operation, at 44 during 1984-85 a 1985-86, 5% in 1986-87 and 6% thereafter. 5.12.1 The action taken by the ~unicipalities in setting the vater tariff has been listed at Annezure XI. Initially, the respohse frm the local bodies was bet ker to ~sly with these requirements. During 1983 and thereafter, a general unwillingness on the part of the locel bodies vas observed to bring about further increase in water tariff, since, such an inorease not omansUte with improvement d.n water supply, would be opposed and resented. 5.12.2 No äUYprovnt could be brought about by the 1983 since ~the implementatlon schedule of the Project was revised from 1983 to 1987. It is enpeted that appreciable improvemmnt vould be noticable by 1987. 5.12.3 In case of Kalyan town the vater tariff for dm*~stic consumption vas raised on july 20, 1982, from 50 Paise per 1000 ltres to 75 Palse per 1000 litre and the same was again raised'to Ra. 1.00 per 1000 lties with effect frcm July 20, 1983. Hovever after declaration of this enhanced vater tariff, tuo oners in ESlyan Nove the Court and obtained stay against i0lntation of the inoreased vater tariff. The unicipality thersafter initiated action and made efforts to get the stay yacated. The cass came up for hearing on May 3, 1986, and hearing vas postponed to 7une 12, 1986. Hearing of the case could not take place i0 on Jun 12, 1986 and date for further hearing is not yet In~n. any of the consmers hovever, are reported to be paying water harges even at the enhmncod rats, thogh r~luctantly. 5.12.4- It is felt that the particular provision of the agree- ment, relating to revision of tariff to make the schmm self mufficient as also for producing to the World ank the audited accounts of the schme has rather ated harshly in respeot of the Kmicipal Councils. - 5.13 silling and Collection The NOW85 spplies water in retail in Ulhasnagar and Mbernath onicipal Councils. Mormally the hills are sent once in tuo moatha to' cosu ra. ~ åsiliar arageset also exists at Kalyan, Donivli, 2ane and ShiMandI where the local hoies supply water to the consumers in reta . Sp- time back there was delay in iening hll to the con ms in alyan *4nipal Corporation are in view of the stay order of the curt as mntioned in para 5.12.3. - ubseu- ently howaever, the hls are being sent at regular ineal. 5.14Arrar he agrement also provided that cach local authority ta the project area shall show an saarov.esnt in buling and collection procedure for the water works and sewerage ser- vice to control the consmrs zecevable to a level of 90 days billing. is condition also applies to the ~oard. 5.14.1 Te arrears of ~ulk sale of yater In the project area as on 1.10.1985, are equa2 to 5 months illng. the position in respect of local bodies is also not encouraging. ne arrears in tes of mnthly average billing in respect 11 of Thane Corporation is of 4 months, Shiwandi of 9 months xalyan and Dambivli 10 months each. Initially in terms of covenant the local bodies revised their tariff to miniaise the losses. Water supply was, treated as one of obligatory duties of the Municipal Councils. Generally the municipal Councils tend subsidise this activity through other sources of inc%. a such as octroi, service charges etc. It seems self sufficiency in water supply activity is a new concept to local bodies. Consumers have been reluctant and averse to increased water charges. In fact almost all Municipal Councils having a distribution schems(namely hane, Dambivli, Xalyan and shiwandi) are running these schemes practically in losses. 5.14.2 As per MUSS's Act 1976 the water arrears could be recovered as arrears of land revenue, in case consumers fail to make payment of Bills. This provision in the act has not however been invoked so far. The MSSB has decided to levy 184 delayed payment charges and is thus trying to induce retail consumer to pay in time. In case of arrears from the local bodies, for bulk sale of water, MWSSB approaches the Coll- ect6r of the district to recover the duds by adjustrents from the Non-Statatory Govt. grants payable to the local bodies, as far as possible. 5.15 Maintenance of separate Accounts by local bodies for water supply aA4 sewerage services Separate accounts are maintained by all the local bodies In the project area in respect of water supply and sewerage schemes. However, Income and -penditure accounts as also Balance sheet, in respect of these schemes have not been prepared by all these local bodies after 1981-82. Reasons for variation in the accounts can be suamarised as follows t ouncils wiI be suppl-ied imaately on ther supying tb financial accounta. 1.1.6 VfZlUIAL ACHIEVDElfS As stated in para 5.14.1 of the Report, the coept Og self sufficiency in xunning vater supply she is athr nar to the u. Councils, Cross finaning of t ativity thrug other sources of revenu at the locui body is ~amost an accepted practice. lnitia resatmt of the consumers at large at inaremsing vater ate ham been by and large øvercm. It is expected tat with passage of time the schemas of the 1ocal bodies vou~d be self ufficient and may not be a burdn on other revenue. 1.17 Equity contribution by Loca ~ odies Sased on the project cost of Rs. 1620 million, coatribe tion by local bodis ~auld be Rs. 160.00 million. An on 31st March, 1986, recovery amounting tø Re.* S4.4S million vas made. 5.18 compuiance of covenants - OI, OMK and Ma entered into an agremnt vith the World Dank (DA) in conneation vth iglsntation of the project. Thes agrents included covnnts to be co~plied with by GOMM018B. C~pliane of thes convenants las being reported to the ank at regular intervals as part of the Quarterly Progress RsportW. Latest position of coplianc, of those covnante is appended at Annexure xV. i) The System of accounts prescribed for preparation of the comercial accounts is different from the accounting system prescribed for Muni. Councils under the Municipal Act. The Board had initially helped the Muni. councils by preparing their accounts of these schemes through the agency of the consultants. Their staff was also trained so that they could!prepare the accounts on the camrcial lines. This trained staff has now been transferred or promoted. ii) The area of operation of the scheme has been substantially changed due to conversion of local bodies into Corporation. This increased the scopes of the scheme. iii) As per the revised schedule the water supply and sewerage schemes which were supposed to have been coupleted in 1983-84 will now be coupleted in 1986-87/1987-88. S.15.1 All these factors contributed to the delay in the process of finalisation of the accounts. It is felt that due to increase in the scope of the area of operation as also due to non-completion of the schemes within scheduled time any conclusion drawn on the basis of the actuals of these schemes would not be realistic and would not be cooparable with those projected in the SAR. 5.15.2 xn respect of Thane and Bhivandi local bodies the accounts for three years from 1979-80 to 1981-82 now avail- able have been analysed and comparative compsition of these local bodies in respect of water supply and sewerage activities has been placed at Annexure XI-XIV as given in Annexcre 11e 12. and 13. of the SARr 31toZation in respect of other 2 (Ralyan. and DaMbiv11) Municipal 14 VI. INSTITUTIONAL PERFORMANCE AND DEVELOPMENT ORGANISATIONAL STRUCTURE 6.01 Prior to taking of the.project the water supply and sewerage schemes in Maharashtra (outside BMC) were being executed by ENE of the GOM. Considering that the ENE which was carrying out the ater Supply and Sewerage/ Sanitation functions in the state for a number of years, was quite capable of implementing the project and that the ENE was to be transferred to strengthen the newly created MWSSB, GOM, decided to entrust the project to the MWSSB. 6.02 w6SSB was establi)v andir the MWSSB Act, 1976. As per the constitt %on of the Board, in addition to the Chariman, Vice-Chairman and Member Secretary, there are other 10 members. Initially the Secretary of the U.D.D. of the GON was appointed as Chairman who was later on replaced by the non-official member and finally, as per the the amendment to the Act in 1982 the Minister, Urban Development of GOM is ex-officio Chairman of the Board, Similarly Minister of State of the !DD of GOM is Ez-officio Vice Chaizman of the Board. 6.03 The Member Secretary, an officer appointed by GOM is the Chief Executive Officer responsible for carrying out day- to-day functioning of the Board. Since inception and till to-day this post has .been occupied by an Engineer although the Act provides for appointment of even on-technical person as Member Secretary. 6.04 A separate organisation headed by Chief Engineer (P) was created within the Board to implement the project. The Chief Engineer (P) is assisted by three circles headed by the Superintending Engineerings and 11 Executive Divisions. During the course of time, one more circle headed by the superintanding Engineer was created under the Chief Engineer (P) to implement a *p*erate water supply scheme for uhava-Sheva Sub-Region. 6.05 Soard aEploys nearly 13800 persons and -generally serves a population of 13.70 aUlion excluding 3MC (1981 Census) . STAFFING AND TRAINING 6.06 The WSS' s staff numbering about 13800 includes 1800 Engineers. Engineering staff was mainly drawn from of the E Organisation of GOM to the MWSSB, in Novembere 1979# a "anbloc Transfer". Similarly, the operating staff waOking with the Government owned water works/sanitation was also transferred to the Project. Initially the non-technical staff was drawn on deputation basis from the Irrigatime Department of GO, majority of which ultimately opte to get absorbed in MWSSB. Major non-technical staff for the project was however, recruited after the iMplemntation ot the Project was started. 6.07 The engineers of the Board continued to receive traing under the various programs of the Ministry of Works end Houiing of GOX. Under similar arrangement with the oDE Engineers of the MWSSB were also sent abroad for tra1aa. A list of officers who were trained abroad during the course of implementation of the project is appended at Annexure XVI. Likewise the Board has designed adequate training programmes to improve technical skill and know- ledge of the engineers, and operating staff of water works in the Board. The =M188B started conducting training program for operating staff since 1982. A list of such programmes is appended. (Annure XVII). Subsequently the Board has established a training centre under the project at Kasik and all these courses are no arranged at this centre since Novbtr 1984. Beneits of the Tranng Programme have also been given to the operating staff of the 1ocal Bod. 6.08 Despite higher availability of Engineers vithin the state the =B5SB continued to face shortage of Enginers particularly in the project area. The Bank advised GOh to provide certain additional facklities to engineers so as to attract them. GO assured the Bank that needful will be done. 6.09 - 1818B vas required to build it& pinance Wing, initially by drawing officers n deputation from the other Govenmt Departents. Subsequently however* sams persons on dputa- tion preferred to get absobed in the Board. The Board has also taken action in reoruiting ployees at lowe level in the rinance and accounts ing. Preference was given to Camerce Graduates. ~e Finance And ~ccounts Officers are helping to develop be=88B as strong financial entity with general sound finance systom within the nors of the Gom. ome 1888B is however yet to make use of comterised acorunting syst although recently abeginning has been made in this direftion. ~e Board has initiated action to develope required programaes for accounts wing in consul- tation of OMK owned nhazashtra Electronic Corporation hMited (Klitron). 6.10 Ue Doard continmed to manage its day-to-day atfairs through the existing system, as it decided to follow the Governt rules and regulations. An administrative Officer and a Personel Officer have been appointed in the Board to look after the administrative issues as well as issues pertaining to the personnel. Assistance of Consultancy .service has not been obtained so lar for management of the affairs of the Board. The Bcard has approached Maharashtra Electronic Corporation (Veltron) to carry out a study in respect of application of computer- ised system in day-to-day working of the Board such as management information system (MIS) ' Stores inventories, billing and collection, accounting# etc. The MOSSB also intends to install a micro computer of its own. Much would depend upon the results of the study to be carried out by Meltron and further action on the part of NWSS. 6.11 A separate project monitoring cell headed by an Executive Engineer was created in Project wing since beginning. Quarterly Progress Repotts were sent to the Bank. fte information contained in these reports was satisfactory and there were practically no back quarries from the Bank. Forecasting of the phasing of project expenditure was generally reliable though the physical implementation of the project has been delayed for the reasons stated earlier . MWBSB is aware of the difficulties in imple- mentation of the project and is striving hard to meet the revised target dates. 78 VII. PaOJECT JUSTIFCATICB Achievemnts 7.01 At the appraisal stage it was expected that the popula- tion in the Project area would increase from 0.90 Million to 1.47 Million by year 1981. Results of 1981 Census revealed that, though, in some of the towns there is furthe increase in population than anticipated, the overall iacrase in the project area was more or lose, the same as anticipated in the Project.* During the last 5 years however, rapid urbanisation has been occuring and vextical expansion is observed in place of horizontal expansion in many parts of the towns leading to mch higher population densities. in view-of rapid wsbanisa- tion the level od: eivices (water supply a sewerage) as provided in the Project is tiftticult to achieve. However, the project is expected to provide broadly an absolute increase of 251 (404 - 153) MLD (160%) in water supplies. Moreover, filtered water supply would be made available for the first time in iwandi and replace similar until. tered supply tram MC to ftane. The project is also esp- ected to provide equitable distribution of water at iap- roved pressures. 7,02 2he severage works in DambivIi, Ulhanagax: and Ambezoath are in progress and the question of achievesnt in these 3 ':An= does not arise, at.present. Though, the Sewerage schems existed in Kayan and major parts of Otane and ShImandi, these schems were not brought In use for a long time. 2his was for the reason that, the house owners had not connected the latrines to the sewage collection system. The covenant of the agreement requires am to gazette proper byelaws so as to make coqulsozy on the 79 house ownerm to aonnect thir propertis to severs. te project aleo provided for construction of road side cham- bers. cannw~ting then to' the man~oløs on the streets, mo that the house-oners could connet their latrin~s to the road-oidø chabrs. ~e Projact provides for constructio• of euch 32,500 connetions. About 3,500 cannowtitom have been c~peted in the tows of man and Kalyan and the facilities already oreated ar* being utilised to the mtent possible. 7.03 MSSB han further gron into a strong institution possess- ing capable managere and other staf. The new staff recru- ited, in particular, for tinanoe and accounta ving, is expeced to gain eperince and ifprove further me u e of the accounta and audit ing. me revenus realimatio for male of vater' has increased but indicates arrears n a large scale. Further action to recover the arreare will have to be taken by MM1ssB. 7.3.1 Ie project represented at appraial least coat - solution to meet the declared objectives in morthern area. Zn the outhern area full xploitation af the 5b~B' a exiting Badlapur Vater worka (duly augumented) a8 vell as ghabm« arvi Water orks of MIDC vas con~tplated. ~e Project provides for bulk nale of mater to the 1ocal bodies of fiane, Mhivandi, Dombivli and Kalyan and retail water mupply to the ca =rs in Ulanagar.and Abarnath, Ierefore, beneits of the project cannot be quantified. At the t~m of appraisal, it wao proposed to charge a rate of Rs. 0.40 per 1000 liter* for bulk water mupply to the local bodies, and a rate varying betveen Rs. 0.60 to is. 0.85 per 1000 liter* for retail supply. In view of cost overron of the project, and in view of inoreased charges towards salaries and ages as vell as for pover, M8SB will have to. reviev the tarif f propsals. It may also have to be seen as to what etent, tbe revised mater 80 tariff mould be In line with results of the sccio- ecanmic atudies, carried out by K/o. Tata Institut. of 8ocial Science. 7.3.2 Zn the project area, though a difficult task, 10<BS has adopted commrcial approach for fixing water tariff for board vater yorks duly taking into account prescried - rate of return. Consuers do pay increased water tariff hut some times reluctantly. 8SS also continues to pres1urise local authorities in the project area to adopt =ai41å approach while fixing water tariff. 7.3.3 all tons, except fhiwandi, of the project area have måtered water eupply. In Bhiwandi only new connection are metered.Unfartunately bhiwandi Municipal Council could not agree to provide metera inspite of old connections du. to stiff reiatanos fr=m the coanse. 8ter. pur=hased by 1SSB an behalf of Municipal Coumål. bad therefore to be diverted to other water vorks. I~*SSB'* los ason at various levela with local authorities an consurm has created greater w~renes mget consaner in regard to proper use of mater and aleo paymant of bills. 7.4 . IBIERENG - IN TB PROJECT AE As OM9's policy is to nter water bconections, 10<88B owe1led conauere and local bodies to instal'tera. ~=tering as proposed to the project area. At the time of Iroject preparation about 92% (about 41,000) of the then yater mfply c tinetions in the projemt area wre tered. At the tim of the p~'oject cMpletion rep*, the total nnber of connections in the urban ector of project area have risen to 87,900 of vhich app. 80,400 81. (91.6%) have been metered due to special efforts made by 7.4.1 On an average, about 10,000 meters (12.5%) were found to go out of order. Facilities for repairing meters are available with MWSSB at Ulhasnagar and Arbarnath. Private meters repair workshops available at Thane, also provide repairing facilities. It was envisaged to provide meters to all connections in Bhiwandi which however could not materialise due to the resistance of the local people. In view of this, the additional mater repairing workshop, which was proposed to be installed at Shiwandi, has not materialised. 7.5 LEAK DETECTION In accordance with section 2.07 of Article-1z of the Project agreement MNWSSB, decided to undertake leak detection surveys and reduce the losses in distribution system and strengthen its operations. Accordingly a separate unit headed by a Dy. Engineer was created under the Project. The unit was supported by 2 Jr. Engineers, 2 Fitters and required labour. 7.5.1 This unit carried out contia'bus leak detection work in the towns of Ulhasnagar and Ambarnath. Similar work is in progress in Shiwandi town. There are no adequate and effective measuring devices in Ulhasnagar which can easily provide a counter check in evaluating the perfor- mance of leak detection work carried out. Further in case of Badlapur Water Works a large quantum is spplied in bulk to the OrAce Factory. Project authorities also continue to locate unauthorised connections which adversely affect performance of the leak detection and 82 repair work. Under the circumstances, though the project authorities did take steps to carry out some work in this respect and have also collected reasonable amout of data. NSB, has so far not been successful, due to various constraints, in identifying with greater accuracy wastages of water in distribution networks. Rowever MMB continues to make concentrated efforts to detect a check leakages in the distribution system. Local authorities are also being assisted by MSSB, as and when requested, in leak detection works. The issue was discussed hy the mission with the MNWSSB Engineers and all aspects in this respect are being reconsidered. 83 VIII. ANK PE ONICB 8.1 WUSSBAtor the first time, was implementing World Bank assisted Water Supply a Sewerage Project of such magnitude and size. WSSB possessed adequate expertise and exper- ience in planning, implementing, commissioning, operating and maintaining water supply and sewerage projects, though of lesser magnitude in State. MWSSB was initially greatly handicapped in project implementation due to administrative problems arising"on enbloc"transfer of Goverament (SUP) staff on MWSSB. Start on the project was,therefore slow in the initial period. The Spervisiem mission greatly helped MSSB in overcoming these admini- strative problems by highlighting and Lapressing upon Government from time to time urgent need to solve these problems in the interest of project implementation. 8.2 Rte bank Mission during their visits gave valuable expert advice and assisted Board officials (Mngineers/ Financial) during project planning and implementation. The Bank staff gas. suggestions to Board official& in operation and maintenance of water works in the project area. As a result MSSB considerably revised its app- roach not only in operation and maintenance of water wos but also in adopting commercial accounts and fixing water tariff. 8.2.1 W2e local authorities, on advice of Bank Mission, revised and improved accounting system for water supply services and showed greater awareness in proper utilisatm .of water. Bank mission ably assisted IWSSB in preparatic of tender documents, tender invitation and tender eval* uation, which greatly helped in finalising the bids without complications. Bank Mission provided great help to MSSB in formlation of appropriate disbursement claims 84 which enabled it to utilise full credit within the exten- ded closing date. 8.3 The Bank Supervision Mission very willingly associated during redefining of the project and indentifying cost over run. The Mission was very sympathetic and ehibited deep understanding of the difficulties faced by NWSSB, *n view of high cost over run. MWSSB greatly appreciates the role played by the Bank in prevailing upon the Gover- ament to keep the scope of the Project unchanged in the larger interest of the project area inspite of high cost over run. 8.4 Bank Mission had an open mind and was ever willing to exchange views with the NWSSB officials. Excellent rapport was therefore establishd between NMSSB and the Bank. 2hts greatly helped to increase the pace of implementation of the project. 8.5 the Supervision Mission took cosiderable pains to ensu=e that the project was well engineered and financially sound. The Bank's suggestion to conduct detailed studies,. site exploration, cost estimates etc. with greater accuracy during feasibility report in future projects to avoid heavy cost over run is greatly appreciated and acknowledged by MWSSB. This valuable suggestion i being carefully followed by MMSB during foaulatian of the "Follow up" Project. 8.6 The Bank Mission has greatly inthenced'llSSBto.adoit improved techniques 't modern approach both technological and commercial in water supply and sewerage project. M=SS is now better equipped to undertake and successfully implement the projects of such magnitude. ,-（「·술：·―.&.- &&: & · · CLus~ 9.01 The Prå=~ Object*vm of the Project w~ to P~ * vh*l*z~ vater at cat:Lofact<>xy iwal to gix twag vit. ~4, Dh~l, D~Ivli, Kalyan. ~mffar and Adm~thl and 104 m= villages In the pr*Jact, ~ *Ltuatgd Oft the cutskirta af D=# to a t the «1~ vater bo=* Uffi~ *Y~ In ~*# ~na imd Xalym to~ and provida mm vat« hogm meverage wymtenu Jå Dmb:Lvl:L Mffar »d AdM=th to~. %ha vater r*~ mm m- Of the P»J*Ot ~ Mm d~ned to ha a~ta ~ 1991. The P=JOOts !ortumtelyo ~ d amet, only part:Lal nuac*cm In vlOW Of ~*OkOd., m~tad, and to a great, extent, unPlam*d w~ and ~strial gr" In and ammd the project area. The water vWly proj«U~ of 199IL ~* - mostly mached some~ 11 la 1985 and la »~ of ~ vj:L «d Mamffar tama vat« affly dc=~ far ««~ the P»vlg~ projectad for the year 1991. The proýwt, WM4 expo~ to.h*IP of 9~ city. 2M or P~Ucn än 9~y ffid --- - DA4 9-9 projuft omtämen to ha tramm~ =d the~= no dm£Ult* COGGluGlon In thla rogard ~2 ha drava. novever. the projeot, dld Weatly help in ~~ iftolewamm vater to ~ dievelopIff coavolty pocket& IIM Bhaymdar må e&W o~ ~ avog of l the project, area. 9.02 a a prl=~ 49~# In Prffmiff this project, cm ~*~ Of :m q röh~ve reftowroe #~, bad 9~~ *d ad*q~ Of wat« w:Lth a mode=ta ~« In the mea the YGer 2000. It la feared that. contl=ona Infl= of Una la thU reglom lå the P»jwt armas ~avated duo to u~~ the *~ of ~nio~ Ommlig Into, wai ocr~Y r*~ the ad*%~ ~ .0d, f~ year 2000 by yeare. says 1992-93 particularly in Ulhas basin. NSSB exhibited awareness of the likely inadequacy of water in Ulhas and Patalganga basins and made provisions for construction -f adequate storage in both:.these basins to augment flows in these rivers in the follow up second project (M.W.S. a S. Project Stage-II). OSS has further taken action to start, in advance, the construction of storage near Norbe in Patalganga basin to enable adequate supply of water by the year 1992-93. 9.03 MSSB/GON did think of reducing the size and scope of the project to keep the escalated cost within the acceptable limits of the beneficiaries. However, GON was very considerate and approved administratively Rs. 1620 million project-based on detailed engineerdag. 2his enabled. WSSB to retain full scope and size. of the project as originally envisaged in the earlier sanctioned project of a. 860 m.Ilion. fte detailed engineering studies did indicate that Ulhas river would continue to be the main water source even for the far off developing area of Shayandar complex and surrounding areas where exebllent rail and road facilities to Bombay city are availablentfaot this area serves as a dormitory of Bombay city. Gw's decision to retain the scope of the project is therefore appropriate .and fully justified- inspitd of high cost overrun. The modifications and reorientation maes during detailed engineering to achieve optimal use of the project components, coupled with the unforeseen price rise, justify the cost overrun. Thus increase in cost of the project, though high, is reasonable and unavoidable. 9.04 WSSB/GO? required 6aneiderable time to take a*decision Whether or not to reduce the scope and size of the project. During intervening period, therefore, progress on sewerage sector and water distribution network in the outskirts areas of the U towns of the project area, suffered to amn extent due to late start on these works. Earlier it was contemplated to defer these work to second project. Efforts. however, are made to expedite these works as the scope of the project now remains unchanged. 9.05 There has been very rapid developent, due to nearness to 8cWbay, not only in the Project area, but also in adjoining areas of the Project in all directions. Thes developments have created great pressures an water supply systems, particularly in the Pioject area. The r*ce of developent has resulted in the water supply demands much in excess of those anticipated in the first Project (1991). in most of the Project area, w water supply demands projected for 1991 have been exceded in 1984/85, necessitaing taking up of follow up project. But for the hSS Project (stage 1) there would have been chaotic conditions particularly in areas. adjoining Bombay and there would have been acute water famine. Need for this Project is therefore fully justified. 9.06 OM and WSSB are keen to take up "follow up" project - M.U.S. & S. Project Stage-11 covering the existing M.W.8 S Project area and surrounding terrain. This project is under active consideration with the Government of India. The follow up project will cover an area of 1000 sq. km, -as against 417 sq.Kn. area of the first project. The cost of this follow * up project based on "Identification Report* prepared by 38833 through their consultants, is expected to be as. 3130 ailli. In 'follow up' project need for augmentation of 01has/Patalgang river flows is fully covered by creating storages at suitable sites in these basins. X SUGGESTIONS OF THE IMPLENERWATING AUTHORITIES - 10.01 The project inplemntation authorities make the following suggestions, arising after discussions with the Supervisory Mission from time to time. 10.02 Project financing plan based on the feasibility studies made by BMDA through their consultants, provided Bank share (IDA Credit) through GI at US $ 48 (48%) Million. The proceeds of the IDA Credit of US $ 48 million was obtained by M6SSB through reiaurbesoment (through GO). The Bank share remained unchanged even though the cost of the project escalated from Rs. 860 million to s. 1620 million. The Bank share therefore remained static. Banks suggestion to prepare more accurate cost estimates at feasi- bility stage by conducting detailed investigations and exploration is accepted and being adopted for 'follow up' projects. 10.03 The projects of such magnitude require a longer time for completion. involving a period of more than 5 to 6 years. The price rise,being an international phenomenon, cannot be ov%n reasonably judged during such a long period. In India financial institutions like Life Insurance Corporation of India share escalation upto 25% of the projected water supply and sewerage costs. NwsSP suggests that Bank should compensate, even partially, the escalated cost of the project to help the borrower to complete the project without reducing, or, changing its scope and size. 10.04 NW8SB suggests, in view of poor response from International Bidders, that scope of ICB tenders may be restricted only to areas where expertise is required like water and semerage treatment plants. ICB tenders besides involving considerable time, did not attract foreign bidders for procurement of materials like Meters, Sluice Valves, etc. Some foreign firms did compete and succeed in getting contracts for supply of pipes, butter-fly valves (Large sises), mild steel plates, etc. However, the success of foreign bidders in competion for contract under ICB wa very limited Ms8 suggests US $ 1 million as outside limit for LCB. s * .U 10.05 MWSSS and Local bodies of Municipal Councils status could maintain a separate account for the water supply services. However , local bodies of "Village" standard could not keep such account. MWSSB therefore suggests that such financial covenant need not be insisted on villages. 10.06 Local bodies of Municipal Councils status were critical about the conditions of fudng tariff on ammrcial basis. These local bodies requested MSSSB to allow them to cross subsidise water charges through other avenues like Octroi, ouse taxes, etc. Vollocing h*nges were reaired to be de in the ProJeat during angineering Design. i Te alignm t of the raw water tran~»son ajs fram river han weeks to Tghar Water Treatmt plat was slightly odd involving oe aitiona bridge of 60 m Langth acroas mal~ni river. 2. e project provided for trestle type bridg for major rossing of Ulhas oreek at SaravUI &Ad at Ajur/Kahli. It was decided to inrease the width of the bridge for optimal utilisation during reorieftation and deck type bridge ers onstrut at inreased cost than provided in the staff ~g~aisal Repert estinates. The cost oS the bridges jnæreesel fræ Re. 323 lakh. to »s. 1179 lakh (260"j.inacrøa~ 3. 2 indepennat transmision imains (Urban + 9~ral) wer proposed to p~ water tr ?ghar water tret- ment plant to tuo independnt lmRs on hivai side. Iese have nw been cmbined as one single tranmi- asion main and one ma 4. Mditia..of a bridge at Uthaia oreek for UhiumftS zurl as the eisting RUD (GCO bridge is net o - sidered capable of taking any extra. load due to sink- . ing of foundations unmipetedly. 5. Santicmed projoat onceived di"ation to the alaLfiers and redesigning filter* to higher operat- Ing rates for epe=imn of »adlar water treat- mænt plant (34 WED to 49 maj, Au u/*. John ~aylo * · und s ven -t Sn favr of n gaovation, a nmw nang=mm aentasu1 uattroatmt p~at of amial 3 Ha aqnoey (15 E. ån 20 hbors) has bee d. ~a våmw eIL#satta Sa m*aa8 saost*.on, conven- • Ueenat s tatm~t tgan~ of 17 ma Gaatty Is batg vwovSes åa pas oi mlotloä pns as coueIvcd Sa h sta r maSffa so ff ism~ -. aUMEmJE - II Project Description Details of SAR (Ann-I) cmpaed with Redefined Project Capacity/sise as Capscity/sis~l.ngth sr.. proposed in the as providd in the :.Aga a,nt L n PescriptiS.A.R. . 2 3 4 5 6, 7 *Cala~t 1. Tghar river Mater Mrth ank of R.C.C. inlet Capacity 260 MD 260 ~1d with 7 electri- Intake 6 P~uping Olas river at char a pump- Des~id to met cally operated pufs Station. Ua~ad above ing station 1991 water da~a *sch di barging 52 g14 Uha~ad veIr- with B electri- of Northern area. 5 p~ns will be working cally operated and 2 ils wi be pumping Units. kept stand bye arrange- . ment. 2. Tghr river Vater Prm Teghar A steel main Capacity 310 .1d Capacity 310 eld Dia. danged trannaission main. intake( at constrocted Desgned for 1991 1830 m Ø M.s.' Pipe in view of al- &saba) to above ground demmnd (with a (10 m thick) culaticn for Tenghar (Inludes pe peak factor 1.2) 10.6 Em ag. na miss. tretiet plant bridges across 1600 m dia«ter Additio~al øreakprsugre the Ulhas river 4 10 mm lng. Tank provided. sat rMa 3 rids are provided >9*i)Across Uss river at ah~a ii)Across UUmas river at Saravli iii)Across malsuni river 1. 2. .3. 4. 5. 6. 7. 3. Tgar Water About 4.1 m A eonventinal Initial Capacity Capacity 210 MLD cæ ~an are Treatmmnt Plant South of ah*- water treat- 260 uld to met in ffimoo and designed for wndi & east mnt plant, 1991 døm~a in. 250 MLD in fair guitable capa- of varala lake omprising 8nrthern area. gaa9nm. city for uorth of Uhas aaratio, co- Designed for optisal River. agulation, staged oxpansion. utilisation. clarification, rapid sand iltration, treated water torage and 4. fhree treated water Teghar to Steel pping For ahlmandi town Dia - 1134 Wus CDeT a • gunming mins ser- reservoirs at min Constru- 800 = dia 3 NK. Length - 1.66 Nu p~ing mins ving hivandi Town, rens aid eted above long. For ohiwa- for aivendi for mimandi Shivandi mural area PLqplas ground. andi rural area Type - M.S. usin Urban a 9ral 1hane & shayander. Villages 800 m dia 3 xo are osbind long Dia - 1530 = CD into one. .or thfane/hayan- 1ength 3.6 m. der 1500 æ dia. for h~ne/ 3 Eu long. naander. 5. Whree reseroirs rne village R.C.C. ror bivandi To~n L..R. Of capacity Indopon~ot serving 9biwandi (2) PIplas reseroir 3 Ml, for Milmandi 5.0 ML for thiwndi reservoirs for town, Ehiuandi villag (i) at ground Xural 3.4 a1, for K.S.I. for Thane B kivandi Urban vural area, Whane level. • aane gbayander Zayander of 13 NL and raral are' and shayander. 15 m Capacity cied into * ~je fao§ a!jI £ 3 3 4 5 6 7 f)Vrui Vens C.I. Ority Total Iength 10.5 Total 2ength 12.66 m. to lis Nain ma 150 m to 400 80 m to 250 m 0 L.C. m dia Pipes - Now m~ as Vons feeder Nain. g)fr Vens C.I. Gravity Total length 10 Total lngth 14.37 M. toflaarbio man a 350 to 600 m 80 m to 600 m C.I. dia a A.C. Pipa Ehahba Phader Nain. h)~r Fens C.a. Gravity Total length 8.7 Total lsngth 14.105 va. to Za~hli Nain a 100 to 250 dia 100 m to 250 a A.C. Xaaeli r@sdr Nain i)+agping from C.i. Gravity Total Ugth 4.7 t zegixed. 1,500 - ma~in Nai a 150 to 250 m to Uhana( Vor dia SuPply to anjur, Vehesle a Piaplas) l)lavad fesder -- Ajur Vasder Nain - main aW tanal wok of 4.89 Em. 1ength 80 m to 150 m a.C. 5ipas. Part Total of (e) to (1> 52.3 X9 Total 64.653 gn. .1. 23 4 5 6 7 Dooster pumpng Kashi P~ ing Station Revrvoir 0.6 ml SuM~ 1.5 Nl * Pue instai1a station U Main housing two Installed HP 60 Installed BP 45 NP pach Patalipada pU~s mn 450 m 3 Pu~s (2+1) stan~ (hnd 0.5 gm. long main 500 S - 0.5 ge• . ocation. long. hooster puping Chitalsar Pumping Station Rservotr 1.5 ml Suup- 0.85 ei station a Nain housing Installed BP of Installed aP 400 - 4 thr pumps. p~ 300, ain Pup (2+2. Stan® ) 800 m 0.3 Ya. Nain - 750 m long. 0.146 Km. long. uooster p~Mping Dngri Pu01ping Station Pservoir 0.0 mi u - 012 ni. station Nain houing installed uP of Installd BP 37..5 ach thre pus. pmps 37.5, in 12.5 HP 3 Ptns (3+ 250 m 0.1 KM 8tanya) msin 300 m - long 0.2 fM. long. 2 3 4 5 6 7 assrvoirs listed Kahit . Reinforced 1.2 wa by locatiom Chitaluar Corete 1.5 el Dongri resrvois at 0.7 wl ground level . Distributon Damk= 4.00 mi resrvoix for vil- ae s liste by KA@Bation" Kavesar R.CC. 1.00 al ~øole Z.S.R. 1.0 al lBaa Kadi and tira 1.6, 0.2 & 0.4 ni reervoir mai-a. s pawedM Uttaaa n 0.5,0.8 a0.4N1 aboms~ R.C.C. Distri- 0.2, 0.1 G 0.1 lt varsave,* Ch~ btion G.S.IL ,iii., Ubeni, avae S.C.C. Ilevatod 0.5 la, 0.9 l, Pi~ømgr, Ditributiaa 0.4 Mi, 0.6 "l, Kaari,Ealvar, reservoirs 0.4 mi 0.4 al. .aSv1l Marpoli R.C.C., G.1.R. 0.1 Mi ■口口口自口口口口口自口細自口口 寫，’粤哺。馴t’認”由勵 .0編口弱電馴卹唱••口開館不州唱 •••■由■．•■••■•••■． 權二•一”神 閱開•．0,..，二中馴細珍•訪叩唱 寧•頗磚開 •才才祖個馴卹購口口 ．魚轉闕嗡•呵 劇勿劇幽哺勿開，．●•，.,.，••啊•自 ，二才開”,.，。一 甲勵網網口叮闢哺 常綴讓”,.&,..&: 個曉妒•唱，,&.”才馴祖•網，•口 頂，二網叫黝•矚 •“勿“&,，••，，口．• 勰么絮，&．一一 柑面h開•必·，，•．，••，•啊綱• 審口間開，&．●’才口＇個•開自唱 個口自口口口口開口口口•劉■口口自•口•■．•••．•■•••• 名t書，t:.t 個口自圈口口團口•口■•圈•口••■．•••■■■■••••••一•■•••．••••．•■•■． 二 2 3 4 6 7 B.M.C. trans- Between Part contelbu- Not applicable The work was deleted mission main (part) BW Barivali tion to new frAa the project as the reservoir ow. transmissi- BMC agreed to provide Dahisar on line the tapping near works of the project. THm -DISTRIMICIN SYSTEM Distribution Thane Nine R.C.C. dis- G.S.R. - 8 MI R.S.R. 4 mos. All am reservoirs tribution reser- Tbtal Capacity 9.75 Ul Elovated voirs, 3 at E.S.R. -14 M1 z.S.R. (*rwin) 3 Mos Reservoirs ground level ----- capacity 14. SO MI and 6 elevated Total 22 MI Total 24.25 MI Booster FUWJM Than* Pumping stations Reservoir, 0.4 MI Swip-O - 54 MI stations housing two Main 500 No PUN"* 2.9 Ka long Pumping Capacity 3 PwVs (2 + I Stand bye) approitimately 30 ff. P. 20 uld 3 Pwaps (2 + 1 Stand b") 40 H.P. 26 MW -24 Hre. Distribution Main Thane Steel Gravity Total Lawtb 1500 = to 1100 sm U.S. 6.5 m. soo-to Main 2.08 Ko 1500 = dia 750 to 450 = C.I. Main 12.3 Ka.. -do- Thane C.I. Gravity net work of 100 As per detailed Engi- Maine to 900 mm dia neering design, distri- main bution lines of 80 mm to (Details at final 600 mm dia C-I. and of design) total length 89 Km approximately. 1. 2 3 4 5 6 7 anUZUDI DZs~ITauIto eS! Distrbution hre l.C.C. G.B.R. - 2.4 al 8.S.R. 2 m~8 CapaLty asuervoirs iuanm i dltrbution 9..R - 4.9 ga 3.5 H RAGrvoira i (~vin Capaity G..R.- 2.1 mi 4.0 N 9.4 a 7.5 ni Daoster ?iåung -do- Pndag Station Reservoir 0.1 M ihe hydraulle utations busing tuo Pu~ing capacitv Dalted grad. lovel as • 6.00 Ml approxi per detailed much that boD- strm are not Dstribution min ai~wU Btl Gravity 750 m dia,2.5 ga. Md as Z~aud feeder .(I..der) Mai long under (6-) iinal longth 600 m dia 1.6 mm. 38.3 EO. iOusSer long local bod de- 350 m dia 2.3 ma sized to crry ' lang omt mjor "ok Distribu~tin Main caIean C.1. gravity Det~s to work- 500 to 100 m dia CZ/AC O n out pipe 4.5 ~ app~ r:y bad V Dllage Dntribution Uortbera Ara Cast 1ran an 200 m to s0 m u As per mngineriag desi- . sain (55 vil~ag.> aC. Mains ga distriut n pipe inms of 600 to 300 m A.C. total length 282 rm. appar. are being lad in th*s0 villages 2 3 4 5 6 7 B MATER SULY sCIou~ ARiM Badalapur Water Dadalapur Renokation of Misting plant New plant of 15 Kl In the oanctiond treateent plant <5 cm soth weix gates and capacity 34 ald. in 20 hours capacity project it vas reovaton and -east of wach vater ~ank. Expanded plant at Badlaper is constru- proposed to aug - sepan=iosi Aemnath) modification of Capacity 49 eld etad at neamby new site. sent the capackty clarlifers a . by achievig filtere to high- higher operating er operating rates of the rates. ~existin plant. odver N/s John Taylor (C~lt- ant) suggested to have indepn-' dent conventiomal plant of 15 Ml in 20 hours (nalu 18 mLD) capacIty. 9a~artreated 9adaapur Istallation öf To match ftture 2 Ra» mater Pu~ps mater puMp~ng water treat- new pps and plant capacity each of 60 EP(9 mLD) station expanslon. mat plant odificatin of of 49 Nld 3 treated Water pus existing plant. (2 + 1)each of 110 BP (9 SLD) 2 3 4 5 6 7 Tra1sission Hain a) Mulaveli to Steel gravity 750 m dia, 5.5 En.250 m to 600 m 0 C.I. Now namad as (as listed by loca- Aernth a constru- long Pipe 9.3 m. long Abarnath tion) cted above Tom gr . in. si) Anbernath C.1. Gravity 500 m dia, Hain 1.2 Km long o) A) nath - do - 100 m dia 1.3 åm 100 -m to 600 i iov csns d to Javessi rang long C.I. G AC. Pipa as ameaat a mlomg~r Dural- Hgelma aiaa d) haa reser - do - 150 m dia 1.5 m 300 to 750 m U u.ger Uoae voirs to long 100 m dia 0 - 9.3 uh. long 1'ea..mm i 3eeral res- 1.3 X: long, 100 - 300 to 750 m - urvoir a m dia 2.4 e- 9.3 me .1~g 3 villages long is now ud. 0~ ra - d - a to y~ 700 m dia 4.0 we c f) ab.agar - do - 000 m di 2.0 en resermir to long Aade reser- voir g) "rem existing steel and t%ta lengh-23.5 100 m to 750 m Kalyan and Di- 1rvi anla Cast Irn gravi- ge 250 to 1000 m. C.I. total length vi Towa Kalyan (1750 m dia) ty alus. dia. 54.375 M. D~ivIi Zral at NavlI to trftealeiffn eftivali mains are no närave, ~ak- coverd under this urli, Kate- it«. Overall ~nnivali and length inreesed senerpada. as per site ondi- tion 1 3 4 5 '6 7 DistAritb"i *a.sl .C.C. eleva- 0.3 ma *srvo~rs tW ted distri- villag~s listed bu~tio re«er- by leaa~om. vois aaete, msh - e- 0.06.l Smmst Glavs11, 0.0 M Atalå and 1.50 .1-fr a i ~ ac mm~be aS~ D.C.C.,hma 1.8 mal As InstsS in Col. 7. as am . D~abvli 98 =,1al -dms- 1.3.at ml . 354 .Saq.d"= ml -dm- 1.0@at ma 1.8 &l tam iU R.C.C. GR 1.8 ml *-*d 1.9 M 13 MSn. 1@.49 . 41 n. 14 ml 2 3 4 5 6 7 Distribution syst Ealyan 4 R.C.C. Capacity 2.00 el 4 ZUR with total Capa- fagervoire (Tuns) Z.8.R. .ach (8 el total) city 8.8 at, Daivli 4 R.C.C. Two of 2.2 ma Capa- 4 R provid d having 8.8.R. city a tvo of 2.3 total capacity 8.25 mI. el capacity (Total - 9.00 91 ) ulha ~agar 1 LC.C. s.e.r. Capacity 2.2 el 3 EsU utilisation of 2 R.C.C. G.8.R. Capacity 5.1 s i)1.25 m« exist a 1.2 el (Total 11) 1.50 ga aiof muaC 8.551) iii) 2.75 el Total 5.50 al yx it «m- tion in capacity of new IM8s. dernath 2 R.C.C. R Capacity 3.8 al .11 0.8.R. 0.9 al 3.7 el (Total 1) Ua 1.5 91 7.5 wa) 11) UR 1.75 ml Total 4.15 .1 Distrbution systes Aernath Puping station Rservoirs 0.7 e aisting p . booter gening housiung thre 2 p~ms (1 stan bye) station of 60 p emch and 1 gp of 15 EP 180 main 350 m dia 0.2 ab long .2 3 4 5 6 7 Booster Pumping 91hanagar Pumping sta- Reservoirs to be Vorks deleted station a main tion housing expanded to 2.00 two pumps al, Installed HP of pumps 280 a 380 main 350 m dia, 0.9 Km long Distribution mains "alyan Details of Mains, distribution net Detailed engineering tor^tUes. Dowbivli works for these towns will be for- design was carried out Ulhasnagar udated during detailed design of and accordingly follow- AAbrnatL the project. Distribution system ing lengths of distri- costs have been estimated applying bution pipe lines are unit rates to areas of specific being laid. population density and land use. Kalyan - 42 DoNbivli - 29 Ek U1hasnagar - 40.76 i Awbernath - 77 VA Village distri- Southern area Cast Iron and 200 m dia to As per detailed engi- bution Mains. (49 Villages) asbestos cement 80 m dia details neering design total mains to be worked out. 206 Es of dia 200 m to 80 m pipe line are being laid in these villages.  2 - 3 4 5 6 7 c> an - su ma sage Collect men 26.6 m of Design population Total smarage being syst. smaurs vazyng of ~ ~tended part laid is øf l~ngth from 150 to of mrsten 27 m. diameters UO æ dia 1,30,000 vaig frm 150 æ to 900 m. Sewage Uamme 3 s ge p - Capacities 2.9, ure s ge pøimfg guuing Ing stations 21.2 and 41.7 mad stati~n ea of ape- city 3.0S Ma, - 22.61 Wi G 32 N es- pectively. sefage force thne Cast irm force Total length 1.0 Total 3.00 M of dia mins mainsa 350 to 1000 300 m a 750 . æ dia . seage Pmae Prinary Umage Capoity 44 uld Treatmt plant of 36 trea~mnt. treatmt plant ald capcity being dioeal an disposa of provida, alo~g W-tb effluunt to · efnat pie une(for •Mus Csk. the misting plant l.4 Gommo~sa ama~toe. Property o nesn laane Cm of 4200 u -~ 4200 aantimn. to tale gb - pssg qgeen. S2 3 4 5 . y ung^me im Sesage Maiuand 21 ma of Desi~gn populaton 900 m to 150 m colleotion sage varying of istmndmd past semers of total length system from so150 m to of system;00.000 21 m • m af st ff 600 dia. ris,,me~ U Smuag. meng Uiwanli 2 aeg- pg- Capecity 9.5 and two sag. ping the &~guiitin Station ing station. 14.8 Md. statium of agecity of 1~nd o~ 4.08 I a 20.182 UnD t~mel smage Se~ge force bivandi Cast 2xon force Total lugth 3.7 Total length 3.2 km. uMi.nn ia a. 700 a 800 m 500 a 750 m d. egag lss lad . Capcity 6ungs treatmnt Iivandi OJdation gamla Capacity 11.5 old Priy ig trist- is la 1~inlw of 8 dosl emat plint of apacity e ~isting work 17 mad. 1im. Property hindi COMetion of 4850 ooeAMtios 1631 aom. of on~c- N'ier redced onMetiM proerty dralns tioms. a ma propertie to public b==e lo~us for mua~. sytem · Ghih noome- tios. ned. 12 •3 4 5 6 7 9. -onS æuI AR property omnetione galyma CAnection of 1860 aanetios 1860 nos o p~operty drains oanne~tios. to the p~bli, uevrage systes r n T mLI @n Siauge Colletion Daivli 29.1 e se rs• Dsgn p~gulatiM Total lngth 35 km. System. varyifg fram 150 1,57,500 of dia. varying from 150 m to 900 m. m. to 900 m. Sea P#qdag D~Vi 4 seage gumpg Capacitis 5.8, 3 0s8age p ag stath=s one ping stp-a stations Stations. 3.1, 25.2-an 2.5 of capaity 3.24 lED, tion includd Mid 1116 MD å 6.84 "m in the asmg. respeCtively. , trea t plant. 6s6g. force Dsa*L Dbvli Cast Tron force Total length 2.25 C.I./Ductile iron pip~ liaans xa 300 to 800 m 600 to 250 m dia of dia. total 3.85 ga langth. Souge treatent Daivi Primary s~o.ge Capacity 13 M& CapacIty 14 WD vith ad disposal treatmemt plant øfiumt pipl~n. disposal of upto UIbas c~ee. effluImt to Ulas creek (via 30apar areek) Property D01bivIL Connect1ons of 2,330 monictons 2,330 aonnetis. oannections praperty drains to public aeers system. 2 3 4 5 6 7 Sewage collection Ulhasnagar 81 km. of Design population Sewers of dia vay- Systems severs vary- 2,10,000 Ing from 1000 m to ing from 150 150 m of total length to 900 m 0 110 =. secage ptumpinq - 4 ee~g. p~- Capacities 26.8, 2 Nos pumping station. Om p~IMng Stationb ing stations 6.8, 10.6 & 40 eld 6.953 e1d, 33.53 eld station deleted and one incilded Saage force - - Cast Xron Force Total longth 2.85 2.5 Km. 900 m d~a. an th Inoag maIn Kains Km 500 to 1,100 m prestressed concrete t t plat dia pipez a 1.2 gm. 400 - 0 ductie Iron pip~s Total 1ength 3.7 Rm. Sevage trea t - - Primary sevage Capacity 28 eld. Capacity 28 14. with and disposal plant disposal effiuent pipe line of Offluent to *pto Wal~uni river WalIui River Property oannctions .- -- Conntion of 8500 connections 8500 conActions proty drains to the public .@m&re ss 12 3 4 5 .6 7 Sevage Collection ånRh ath sa z of eer Design pogulation r of ieter fi ree~tion ta system varyig from 1,25,000 varying fr 1200 m legth is as ger 150 to 1200 m to 150 m dia of total t length 46 P. -an an~ as per sit conitions. Seage guaping - - 2 s=age p - Capacity 37 mid one sauge gping m~* spge gpp- stations ing stations a 74 n1 stations (Stage1) ing station of capacity 32 old inlule In (stag I) ewag tr«U~ee . Seage force rain- Cast bron force Total length 0.3 500 m dia 0.4 = legth n~ en.1200 m dia Sauge treatmt - - Priary e Capacity 39 a14 28 e14 (Stag.!> Partially treate and Dispo~al treatnt Plat ind~strial effus Dispoal of at was prongose *ffient to to be ahitteB . =al~uni River to the plant. gregerty C a- - * - Ca.nection of 4,000 onmection 4,000 ame of onmectio tas l.a.adw* s g me~rid~ .rep årtemme~. 1-12 ANNEXURE - II REAONS FOR DEIAY IN ILHENTMAT70N * the delays occured on account of several factors as aAder as- 1) Land Acquisition - Apart from the earlier delays in preliminaries, the project suffered heavily on account of land acquisition. Originally private land admeasuring 134 Rectors was proposed to be acquired uader the project which increased to 162 Hectors during detailed Enginering. However, there was severe opposition from the land eers in view of following reasons :- a) Due to nearness to Sombay Metropolitan City, there was growing trend to convert agricultural land into non- agricultural use to fetch higher return - particulars due to considerable rise in housing G-Andustrial activities. b) Other bodies had already acquired substantial private lands in this region and therefore there was greater resistance on the part of land owners to surrender any more lands for public purpose. c) As the ownership details were not updated eventhough awards were declared for compensation of the land, the land owners could not receive the compensation in time. Particularly in case of Teghar Water Treatment Plant, the stiff opposition to the land acquisition resulted into Police firing. GN intervened at this stage and MSB ultimately decided to 'part with 25% of the land proposed for acquisition. For similar, veasons, the land requires proposed for acquisition were reduced to 107 sectors (minimum needs). 113 Even in case of transfer of Govt. land, particularly, the Forest land, subsequent to the issue of an ordinance of GO!, clearance of a Committee of Ministers of GOI was required to be obtained causing delay. 2) Shifting of Sites - It was observed that in Dambivali town, there was considerable increase in the housing activities, mostly unplanned. The buildings were constructed in 1w lying areas, even by blocking of Nallas and other water courses. This has resulted into inudation of the site selected for Sewage Treatment Plant at Dambivali. Therefore heavy flooding was observed at the site during the rainy season, particularly when floods synchronised with high tides. The site has therefore been abandoned and the new site at,Kopar village has been selected for constructing the Sewage Treatment Plant. This has resulted into delay in completion of the Sewage Treatment Plant. 3) Material ply- a) Cement - On an average, supply of cement was erratic. The actual supplies of levy cement were much below the projected demand. Project authorities therefore had to procure imported cement to tide over the situation even though it was costlier. Cement being a controlled commdity was always in short supply. However, recently (1986) cement supply position is improved to some extent.. b) Steel - The MWSSP.did experience difficulties in procuring steel. During initial stage of implementation no difficulties were experi- enced under local competitive bidding. Local bidders however failed to supply. steel in time. Supplies from even Govt. owned Steel Authority of India Limited were erratic. 114 . c) CID Joints - The agency appointed for the suply of CID Joints is established in Punjab which continued to sufeterrm disturbances resulting into delayed, as well as inadequate supply. 4) Permission from otlier Authorities - Permissions were required to be obtained from authorities like PUD, National Highway, Ministry of Transport of G CI, OC and Inland Water Way Tansport Authority. in-spite of protracted correspondence as well as personal efforts, there were difficulties in getting clearance from these authorities in time due to procedural delays. 5) Difficult working conditions * During implementation of major works, unier the project,.- difficult conditions created due to marshy land, busy congested streets and problems Vf sub-soil water and undergron cable had to be encountered a large scale. These difficult conditions caused delay. 6) Labour- Normally, the working season available for the project work was from the middle of November to end of May, every year. During the rainy season, most of the labour went back bome for carrying out the activities of cultivation. Due to poor availability of labour (Skilled/ Un-skilled) and considerable constructional activities in and around the Project areas, labour cost increased considerably and the Contractor therefore had to pay higher charges for getting services of labour. Some-times, this.has resulted in slowing down work on the part of the Contractor, as he could not engage adequate strength of labour. This has also caused delay. 7) Civil disturbances A peculiar phenenon of civildistusbances was observed ■∥■■－一一■■•口•■•■•■．■■■■•■■■■．網■■．網■■•．，■■同網戶，～〝～～•，，一＿_ &_.&，一”:’…”·…”.’·’.’·‘一‘&，·’·―〕〕．〕·‘一 • -l 一一‘一一■目劉．．■■•．•■■■••一一＿■■－-－一■■－－一＿___ HARARLs~ WATER SUPPLY Am aL~ PRWBCT W~y AMHEm~ STAT== SNONING ~ OF POIMIKM PIRKS ~SSM IN IC8 TENDMUG Mm of fl= DeMriPtion Of ItCO Valuc of contract Avardad CM~ tg 90. In~ curmncy Po~ Cox~ 2 3 4& 4b 1. mitmå a co., rör ~ y of ramic* jT 10,975,24~ 8~7 rw ~Y at m~ ge. 33364MU- m i isotuo~ 3. måtmt a Cb. VW gag~ en. 326,1909201- JT 1769050o~ M tir w~ Pm of D~ * ft. 1,38,35,5151- JT 283,129*5~ Pipa@ l ag. 1,98,39,9» jT 971,155,39~ 117 &mm= v STZ~hT sn~ RESNS M0R COST oUM~ W= cost overrun frcm as. 860 millim to Ps. 1620 miUion has minly been attribted to the folloing reuaonl- 1. Designing s~g of the workø for opt~ual us i Iis is with a view to have quickr augmntation of works at relatively lesser cost. veis as røu~ired to' be don particularly in respect of 4ntake ok, raw vater transmission sein, snghar Water treat- ment plant and pore mater tran~s«sio n as wel s bridges carrying transmisi.n mains. 2. Addition of a bridge for carrying tranmission • an across Waldh~ni river t- In viem of change in the alignmnt of the ra mater U =an=a=ix= ain a bridge of 60 meter length arose. Waldhai river bad to be PWvded. 3. Changes in t~e of bridfeg carrying trammesam Ue project providd for trestle tp. bridge to carry transmiauin uain which is no replaced by "dock type. -2e cost of the bridgeo increased frcm Ps. 323 lakhe to s. 1179 lakhs. 4. me projeat cost esti~mtes were based æn the pre- 14inary feasibility studies vithout Lfficient sb-soil and aite investigation. Detaled site exploration/investigatons and ingineerig 118 necessitated uodifiations in any of the major ca~ onsts like 9ridges, Plante etc. resultng. in coat inras. 5. Increase in the L~ngth of transmission main and severs t - The length of transmitsion mains increased fram 178 Zu to 232.50- Xa (30%). 12he length.of severs increased to 216 Va (8%) 6. During detail engineering it vas found necessacy to provide independat/individual reservoirs in ac village instead of providing a coaon reservoir for a group of villages. This change was necesary in view of rapid urbauisation at the villagen in the Project are. Number of reservoirs vas therefore increased from 42 to 85 causing increase in tb cosat of the Project. 7. Unprecendented price rise in the Coat ot materials equiÉnent and cost of l'bours: Actual increase in case of some of theoit~e vas møre than anticipated. ~e inerease vas also partly due to statutory increase., by the Gol. S=n~arly the project area being very close to Dabay, rates for construction materialsj as vell as payments to skilled la~e also increased bey- and expectation. 8. Provision for distributian system and severs s- Provisions at Unit rates based an block extimates - for distribution and sewers proved to be inadequate after detailed engineering. The cosat estimtes, - therefore, increafed substantially. J.19 i a D x A JaU vi MMARMw~T WATER SUPPLY & SE9RGe PROE#C ZU • S99 (Referenc Pag* No.53 to 56 of Staff JMpraisal reot) Project Cost Estimat Ccparison at a glane uner various work cmponents (Rs. in Nillion) Sanctioned ReVised ProlotProject Total Cost Total Cost I T E m s (R.1620 Foreign) Million) Total Foreign) (1) (2) (3) A WATER SUPPLY U1DWHEUM MARE Civil Works, Intake, Transmission 8 Treatment Tnghar Intake* Bridges, Pumping Station and Transmission Nain. 16 77.003 Temghar Treatmnt Plant and Pumping Station. .1 51.849 Tranmission Mins, Bridges, Puping Stations, Reservoirs and Bulk eters. 51 144.326 Distribution Syst aprovnts, Thae. 20 40.970 Bhiwandi 7 5.326  .120.. (1) (3> (3> - YLUages (SS) 5 31.170 val - ta) - - TO17L3'1.061 squipment and Nisterials s"lply. Zntake, Trm sumn s' Izeament. ,nghmr Intake, U,gs, P~9gag Station and TranisuLtn liain. 1040S Tagh T ea t Plant an Pumgag Station. 1 45.433 tan.mm±ae Nains, Sridges, PUiag statons, o rvoi ant Bulk ntes. 4 133.1% Distribution Syste Iaprvemets. Thaum. 31 44.831 shawna 3 5.5 VSlages (55)' 33.196 -U - totL £ 106 395.766 s. -an s0995¥ moUuuIG aurn civil Uogks. Treatenft and eg===sia. geIalapm~ Treatnt Plant atana~ an é eovts. 3 ..310 Traaemsln nuans, asevoirs and Suk Nter. 14 36.* 121 (1) (2) (3) DLstribution yst 2qprovmets. Kalyan 7 9.183 Dabivali 7 13.900 Ulh«anagar 9 6.090 mbarnath 4 - 9.722 Villags (49) 5 7.896 SU - TOAL : 50 78.601 Equilpnnt and Materials spply. Treatzent and Trang~Lon. Sadlapur Tratmnt Plant Extnman and Ifyrovm~nts. 1 5.670 Trans=ssion Nans Reservois an6 Dulk Meters. 13 42.516 Distribution System 21uravements. Kalyan 4 10.622 D~ ~ival 4 7.426 U1hagnagw 10 11.660 imrnath 4 13.179 villages (49) 6 18.976 BUB - 20T. a -42 110.049 122 (1) (2) (3) C. SEWERAGE NORTHERN AREA Civil Works Thane Collection and conveyance System, Extensions and Improvements. 17 21.983 Property Connections. 7 S.50 * Treatment and Disposal. 6 17.272 Bhiwandi Collection and Conveyance, Extensions and Improvements. 8 8.146 Property Connections. 10 3.780 Treatment and Disposal. 2 7.556 SUB - TOTAL s ---- --- 50 64.237 Equipment and Materials Supply, Thane. Collection and Conveyance System, Extensions and Improvements. 7 17.643 Property Connections. - 2.500 Sewage Treatment and Disposal. 3 10.180 Bhiwandi Collection and Conveyance System, Extension and Improvements. 4 11*521 Property Connections. - 1.653 Treatment and Disposal. 2.040 SUB - TOTA -14 45.537 (1) (3) . (3> D. SENERAGB SOUTMEIR1 AMM Civil Works. Kalyan Property ncions. 5 1.80 Do~bvali Colleaton and conveyance system. . §20. Property contions. 3 7.800 Treatent and Dispoal. 3 5.Q0 Storm Water Drainags. 3 3.171 Ulbasnagar Collection and Conveyance, systen. . 32 I9.23S Property onnections. ,15 31.800 Treatment and Disposal. '4 8.705 amarnath Collection ad' convsyance system. 25 .13.8 Property cannections. 8 8.481 Treatment and Diuposal. 3 13.300 suD - TOTaL : 101 3m2.79 Eupent and mterials sesgply. Dmivali Collection and conveyance system. 3 13.3fl Tramnt and Dispomal 1 5.183 Storm Water Drain. • 1.834 Umhamnagar Collection and Conveyanos system. 7 8•dm Property connsations. - oo•s- i Ceso - WAs 00009 9II~UfbVpm ooo's g asSynbaTpas 00001 1t löv~ v= 99 qdbqn 8W 9~6.z.u C99994T cfu~sa fu m=uB ot*8%9 . *tone oe.se Tee peintour- 'uitn etos vs~~t IT sUTTRUs n~ouuvo• ese•sett se ---- ----- mi s a see•te te * 1* m,z=1g was essetro u.zequ 0w99 uesosa ou use,eau 125 (1) (2) G. CONTINGENCIES Physical 80 84.86 Price 156 171.891 TOAL A TO G : - ---- 824 1559.508 .. CUSTOMS DUTY 21 36.473 TAUES 15 24.019 PROJEC TOTAL :--860 1620.00 126 . ASHEXURSb - UZ INDIA MARRAASBA WATER SUPPLY AND SEWZRA PROJECT CREDIT 899 - IN Schedule of Disbursements ACCUULATED DISURSEMNTS (WS $ MILLION) IDA Fiscal Appraisal Cumlative Actual Percentage Percentage Year and Estimate anticipated actual Quarter 1980 June 0.S 0.S 0.305 1.0 0.61 September 1.8 2.3 t 0.442 4.8 0.92 December 1.8 4.1 0.669 8.5 1.39 1981 March 1.8 5.9 1.926 12.3 4.02 June 1.8 7.7 2.903 16.0 *6.03 Septemb,r 1.8 9.5 4.987 19.8 10.39 December 4.5 14.0 8.365 29.2 17.45 1982 March 2.3 16.3 12.623 34.0. 26.33 June 4.5 20.8 19.815 43.3 41.25 September 4.5 25.3 24.765 52.7 51.59 December 4.5 29.8 26.601 62.1 55.43 1983 March 2.3 32.1 28.560 66.9 59.52 June 4.5 36.6 31.50S 76.3 65.68 September 4.5 41.1 32.550 85.6 67.80 December 4.5 45.6 33.578 95.0 69.95 127 3mENM -vZZ (nnta.) Tear ang Estats iL~tM atu guarter ~ar 2.4 M1.O s7.836 100.0 78.62 »..3.700 S2.71 suPeaar41.679 86.83 neember 43.008 9 1•44 1985, March 47•830 .99•62 49.00 100.00 - 1~-mm m W -.2 12 128 MAHAARASNTRA VTER SUPPLY & SEWERAE PROJCT CREDIT IA899-IN DISSUSOENT PERFORMANCE 40 1 101 --MA per Appraisa Forkas A ~ -- u AviesagescageRt U1,s,00 AsprepsslFrcs ---l-s------- ( 1979 - 80 Through 1906 - 87>) 1979 - 0 190-el 1981-82 1982 - 83 1983-84 194 - 85 Peat actual hoJat ~ Actua! UsUata A~tual etiati d actual aa~ed ~ma £Esti~ Actual 1 2 4 5 6 7 8 9 10 11 12 13 14 3. 80MC880F fMNS s- 1. Mt 1ams 1.09 - 9.26 0.68 1.09 (-)0.48 0.83 1.02 6.80 0.99 14.28 0.38 2. epraciation 0.30 - 00.30 0.38 0.3 0.0 0.30 0.3 4.86 0.38 9.41 1.80 3. Interna cash G eration 1.38 - 0.56 1.06 1.39 0.10 1.13 1.40 11.66 1.37 24.23 2.16 4. . K zaa 17.90 - 82.27 18.98 185.53 139.50 158.15 159.10 11.00 122.10 - 122.10 5. om 6rant 14.42 - 48.70 13.23 78.07 100.50 98.23 110.90 78.78 62.60 - 85.10 6. ContrIbu~on of cl - - 18.55 2.13 48.76 - 53.36 27.94 - 10.45 - 40.68 7. Debt service 36.20 - 149.52 35.40 312.36 240.10 309.74 297.94 101.44 215.15 24.23 247.9 8. Reibure ent - . - - - - - - 20.06 - 22.11 - 9. Total *~urces of fund. 37.58 - 150.08 36.46 313.75 240.10 310.87 299.34 122.10 216.52 46.38 250.06 I. OMCMM or r= t- 10. Distribtion not work. 9.42 - 25.29 62.00 62.00 34.05 - 214.w8 11. ~ulk siply syst 18.62 - 48.74 3.9 123.0 am6 120.00 251.00 S-73 i .09 12. 8eurage 7.68 - 71.49 0.35 117.72 0.75 103.47 1.45 3.14 - .56 lag. 199~DtBN NPEPl 13. • Wter ~ap1y 0.19 - 1.98 0.40 6.90 3.10 13.44 11.90 - 22.00 - 25.00 14. S rap 0.n - 2.02 - 5.75 0.08 10.83 0.n - 0.1 - 1.14 4. Dea. eavios 36.20 - 14.52. a.64 31.36 - 30s.74 - 92.7 223.93 - 2m. 16. sams-aa- - - - -- - 8.41 - 2.5 - 17. hageut - - - - - - - - .2.a - DIR - 32.U AIEB- E STA2EI gem=IUO BUIS Ou aruv 808D 0 U wM~R 1^ :r. Deg criptionut 1979- 80 1980 - 81 1981 - 82 1982 - 83 1983 - 84 1984 - 85 0. AssMd Atual Msud atual Amsumd ctual AssmM Actual Assd &tual assald actual (Rup~e In million) . 1. Operating Remeue. 10.88 - 10.94 15.74 12.16 17.05 12,54 21.05 35.8C 30.69 63.59 39.99 2. vatk r Supply in Kl. 30.30 - 30475 - 33935 38159 34150 43216 107310 47280 110960 40932 3. Operating Cost : a) bulk water charges 6.21 - 6.70 9.69 6.20 10.41 6.60 13.29 11.47 19.37 17.58 25.83 b) Po~er 1.08 - 1.14 1.34 1.7b 1.96 1.87 2.93 4.80 4.21 8.26 4.82 c) chemicals 0.24 - 0.25 0.13 0.39 0.21 0.41 0.10 1.10 0.26 1.92 0.26 d) Maintenance 0.08 - 0.08 1.30 0.09 0.39 0.07 0.61 i,27 1.16 2.59 1.71 0.10 å> alarvi~/gs. 1.44 - 1.72 1.23 1.% 1.70 1..90 3.12 4.35 4.32 7.14 4.69 t) A~inlstration 0.45 - 0.49 0.99 0.51 1.47 0.54 0.40 1.15 - 1.87 - 9.50 - 10.38 14.68 10.77 17.20 11.41 20.45 24.14 29.32 39.36 37.31 0.30 - 0.30 0.38 0.30 0.38 0.30 0.38 4.86 0.38 9.41 0.38 ~ Operating Cot Total 9.80 - 10.68 15.06 11.07 17.58 11.71 20.83 29.00 29.70 48.77 37.69 Oprating surplus 0.26 0.68 1.09(-)0.48 0.83 1.02 6.80 0.99 14.82 1.80 . Nt fied asseta in operation 9.72 11.31 9.42 10.94 9.12 10.60 188.00 10.23 381.25 9.85 Sate of roturn (). 3 6 12 - 9 10 4 10 4 18 . fE s- (1) 3~niatrative overbas reduced from 21 percent on empnditure (exlMing cast of yater) to 13.5 percent from 1-10-1982. (2) The agremat with IrId ank proide for return on the basis of fimd asaets in operation and not fimsd assets. (3) The Doard took over tha yater vorka from Governmt on 1-11-1979 tha figur . for 5 moths are not coarable hmmce deleted. (4) Depreciation and cost of ind amet revised in 1982-83 as incldd by K/*. Islosmkar Conltamts, tame. AleaURE XI EMABTRA WNMER ~PLny SIamA= Pa CT . tatment shoing revision of Water Tarift by vari~us agencies for Domestic/nnametic consumtion Charging System as. per 1000 litres. FIG. ]m SRWE sU Ms nRPP Com UoæHRMC Consatrno M.V.B.S. 90am 8Pu^y hane Uhuandi nivli Kalyan mlhafe~ lb~nath Prior to taking 0.36 0.22 0.50 0.50 0.275 0.275 op af Projet v.e.f. 1977 V.e.f. 1965 V.e.f 1975 .f. 1975 v.e.f 1975 v.e.f. 1975 (1.20) (0.375) (1.00) (1.00) (0.55) (0.55) Ist »evision 0.50 0.70 0.75 0.75 0.30 0.30 v.e.f. 1.1.1982 v.e.f. 1.4.1982 v.e.f 1.9.1982 v.e.f.20.7.1982 v.e.f 1.4.1980 V.e.f. 1.4.1980 (2.00) (1.50) (1.50) . (1.50) (0.90) (0.90) 2nd Revision 0.70 1.00 1.30 1.30 0.45 0.45 V.e.f 1.9.1983 .ef 1.9.1984 V.e.f.5.4.1984 v.e.f 20.5.1984 v.e.f. 1.7.1982 v.e.f. 1.7.1982 (4.00) (2.00) (2.60) (2.60) (1.40) (1.40) 3d Rhvision 0.65 0.65 v.e.f. 1.7.1983 v.e.f. 1.7.983 (2.00) (2.00) 4t' Revision 0.95 0.80 .e.f. 1.10.1985 v.e.f 1.10.1985 (RID 8ur) (Da~ ~« Source> (3.50) (3.25) t wisia 1.05 .e.f. 1.6.1986 (4.30) 館必呵）媚中啗》媚弘n你卜啗）化戶啗方必中嗡馴•．畸期言 “屹卜方弱畸·‘，嗡卜》‘．吃．•‘•。《一‘，•。”神如• 電中啼觀•唱寥絮•C胎畸絮。屹言參權 ••．．••．•．•．•．•••••．•■•■•．•．•一一一 C中嗡審電•OC中啗參電•O蓄）啗參電•O馴寫軍叮a．購曲唱 •“叩‘•，,．••細•州• 個卜中．廈中啼唱中唱輪•電馴州蓄個勰•C盧妒嗡唱馴嗚間騙 覃面1萬弱州訪 切屹引計確言弱畸中唁憫叩馴卜參 一不才一了不－ 名。叮，t磚弱•O必O啼薦•O必O唁名妒鱸唱”彎間勵 馴口口開唱 祇討方r．顫蓄偶話淤蒲奮言騙痲蒲奮萬訪論論論一t 不開面討．為而兩．而神蔔麗 鯽團，,“開”’開）荊『論r誌市飾論論騙可實觸面繭痲 佩祈崩糁面兩面才面不涌r于面面向耐試馴 面可面兩啊1兩可蔥面面『蓄鶯話崗瀕汗訂必濺 蔥絮蠶細朧騙劉口州 必．心，卜啗O蓄•O編卜嗡奮，嗡弱•O馴開自馴網矓 劇卜蓄卜）劇卜嗡言伯中嗡寥寥••露寫•05電•e啊劉b開 絮參啗必．纏t以•，引卜嗡蓄口暱•et參•必 n•O名參嗡么申啗•‘祖•O•磚寥叮網”曲唱 •劊卜嗡擊O口O露參．t,．嗡•州勵口劇開唱 ”膩喝魷磚•卜，名•唱純屹發，唱盧妒由．馴鴻觔 f馴 州’‘·‘軍崗閑蘇弱騙寫 絮參嗡弱喊露，必••間叫娓絮參唁．魷，& •．奮必•，•‘妒參•戲•啄•觔劉”•響 t‘•0‘必叫寫魷磚弱噸t絮參嗡懿•0盧妒購唱馴畸間勵 嗣話論可 哺汝瀆奮言號痲蒲奮語啊造蒲藪言萬論莽颼 寥個戶蓄口6蓄蓄參嗡個矓O卜哺鱸唱t 二 • ANHEXURE X111 COMPAMTIVE POSITION OF ACTUAL PRWECTW FUM FUM STAll~ AS nKOMRATED IN ANUMRE 12 of theý SM In millions? 197~ 198041 1901-82 affl~I SAR ACT~ SAR ACIM SAR WIM Internal Cagh 0.79 0.10 2.41 0.027 6.91 0.35 ~ration Lans deftt. service 0.16 0.04 .15) 0.018 (0.14) 0.54 Contributim to 0.63 0.06 2.26 0.09 6.77 ma lnv"~t läarease in ~ låg capital - - MIL 2~ Inte~ Cach 2-62 OM79 6m49 s-« 16-70 - Lass Dehät - (0~ 0-93 - cmtritutiLan to 1-63 0-73 5-53 om% 15m77 - Investm~ Interest 1-63 0-79. 5-53 15-77 - Increase in workång PIIEURB XIV DALMMB NOBT AS FRUED TO IN ANN=URE 13 OP THE B.A. . 1979-80 1980-81 1981-82 UBD MACTMA BAR ATUAM ma ACT ibt rined As~et* 14.81 9.69 14.47 11.30 14.13 11.59 Carremt åAsts 2.10 8.89 2.43 • 2.76 13.87 Less * Caemt .1abilitie 0.31 1.79 3.09 5.80 0.64 1.79 8.74 0.97 1.79 1.86 12.01 16.60 15.49 16.26 20.04 15.92 23.60 ~gity 16.10 7.47 15.85 9.34 15.60 12.65 * 1~g TOM Døbt 0.50 8.02 0.41 10.70 0.32 10.95 16.60 15.49 16.26 20.04 15.92 23.60 et aied Asts 36.02 33.06 35.75 37.23 35.48 10.19 COrr~t åAsts 3.46 8.41 4.35 9.54 4.75 43.35 Lesu Cuorr~t labå.l4tåes 0.98 2.48 4.37 4.04 1.87 2.48 6.10 3.44 2.27 2.48 8.25 35.10 38.50 37.10 38.23 40.67 37.96 45.29 quity 32.32 22.48 32.52 22.18 32.72 27.26 'Long Tezu Debt. 6.18 14.62 5.71 18.49 5.24 18.03 38.50 37.10 38.23 40.67 37.96 45.29 L.A s UEojas 1M- L.ca. s Prse igmn ers statigent shwing ceplianc to the OWenmant mentioned wnser the samry of agrmeant pter VII, n the Staff ppraLsal ~hport of the World bank for the Uaharashtra ater *apy t Buerage Proje t Sr. Covenant D. a Oenant CuVlUIo to covenant. ab. Sectlon- of 2. .3. 4. 1. 7.01 goM will requir local authorities to gasette py*-las for drainage and dranage tax in repect N& 2.06 ~pyopriate b-aws by Sept. 30, 1980 (under of Thane and h~andi tu ve motfiled on **istiag legislation to reuire property Octoker 16, 1980, and October 9, 1980. respectively. omners to connet properte to aee when emers are vithin a specified distance. Similar sy&ml- s for ualyan, DbivU4 and Ambernath (Para 3.15). town Vera prepared. In the man time the statcs of these 3 tow va elavated Crporeton nd bene thase bye-s ar eing iflo4 on the inen of Lailar ge-laU of 9.1.C. ohe Ulhangar 0Lpu1 Council h also fraed sch bye-laIs and the ceplmace of the remarks of the Diretor of M~ficipal ea-Latraton La In progreae. 2.. 7.01 M will require local authorities to provide The ~ork of Progerty Conection has been uger- M.A. 2.06(a) grants or loans under terms acoeptable to the taen ln stages. The perfacmane ln respet of &ooatLon to asiut property oners to Th~ne, ShiaudL and alym where Sewerage System convert their household wate diposl systes already eisted, va taken ep earlier. On to form suitable for onnecttoi to publio 31-3-1986 the perfomano of Property COnnections seuere and to sist with onneton ost. tn the towna of Thane, Shi~and6 Kalyan ks of (Para. 3.15). the o~ler of 40, 206 and 5%6 re~pectively. the perfo ae In Th~e and ~b~vane La lom ins ha~n sewerage work ~a jet to be carried ~t ln the etendal area a progerty &a~m~ ter these - sarers ae ae be take p. Sr. Covenant No. a covenant. COpliance to Covenant. go. Section of Agreement 1. 2. 3. 4. lbrk of Property Connections was nSer taken for the towns of Dombiv1, Ulbasnagar and Ambernath during 1985-6. The performance is of the order of 40%, 5A and 22% respectively ending 31.3.198. 3. 7.01 00 will require MIDC to make available to Necessary Resolution was passed by MIDC on March . SSB sufficient potable water to met 7tu N*A. 2.06 omitments in the project area (estimated 7, 1979 to ain available quantity of 70 ald by quantities 100 ald and 150 ald in 1984 and 1979, 110 ald by 1984 and 160 ald by 1991 to the 1991 respectively) at a reasonable bulk tariff to be agreed beteen 00, KIDC a in consultation with Association. (Para 3.17 (ift)). 4. 7.01 00m will require action by industries in Reports were being obtained from the Maharashtra. N.A. 2.05 the project area to reduce waste strengths Pollution Control Board and the position was aid quantities to acceptable levels. reported in the Quarterly Progress Report. As per latest information, the effluent is,treated by the industries to the extent of 35%. 5. 7.01 MSS8 will implement an agreed programme A separate leak detection and repair unit was P.A.- 2.07 to detect water losses froa transmission created under HS8. The NWS88 carried out Leak and distribution systems and to reduce Detection Survey in the towns of Dombiv1i, such losses to acceptable levels. Ulhasnagar & Imbernath. Similar work is in (Para 3.17 (v) ) progress in Bhivandi. Performance on the leak detection work has been reported under Para no.7.5 of Project Copletion Report. 6. 7.01 MW88 will eaecute contract with Engineering After obtaining concurrence of the Ibrld Bank, U/s. P.A. 2.02 Consultants acceptable to the Association, Shah technical Consultants (Pft.) Ltd., were to omplete engineering designs for the appointed for engineering design of the Project. Project. -The duration of the contract was from December (Pare 3.21). 5, 1979 to December 4, 1963. As per the suggestions of the Ibrld bank the Consultant have been retained for the balance period of Isp3emetation. Sr* Covenant No. a cownant Compince to Covenant 3o. Section of 1. 2. 3. 4. 7.* 7.01 Land Acquisition procedure will be coupleted Though the programme was chalked out for completing by GON and leSSB in accordance with a the Land Acquisition procedure within a given time, programs acceptable to the Association. so as to enable completing physical completion - of the work by September 30, 1983, the sam could not be achieved. Land Acquisition was a tough problem to be solved. A separate Land Acquisition Unit headed by an officer of the rank of Dy. Collector was created and it started functioning. A perodical review was also being taken to expedite the Land Acquisition cases and the difficulties were also discussed during the meetings convened by the Revenue Commissioner. However, in view of stiff opposition of the Land Owners, there was considerable delay in completing the Land Acquisition procedure. At times, it was required to reduce the scope of the acquisition to as mini- man as possible or even to change the sites. Possession of the land however was taken by private negotiations for major works. At the time of preparation of the Project Completion Report, 93% of the lands were in possession while the awards were declared to an extent of 630 of the lands only.' The balance work is being completed by having the assistance of the co-ordinating officer, who has now joined the Board on deputation. 8. 7.01 00 will require each of the six Resolutions of the 6 municipalities confirming their Municipalities in the Project Area to pass participation in the Project, on the tera D.A.A. 5 resolutions confirming their participation satisfactory to the Association were obtained well in the project, on the term satisfactory before according administrative approval to the to the Association. Project. Sr. ovenat No. O Ovenants CWLance to ovenant. ab. Section of Agreesmnt__ _ _ _ _ _ _ _ _ _ 1. 2. 3. 9. 7.01 ON will req*ire each of the six All the six unicipalities havs maintain~ separate N. A. 2. 08 aunicipalities in the project area to accounts for water spply and semrags servicen. prepare in accordance with an agr.ed Initialli the reports vere audited and A~dit Report programM and thereafter mintain separate vas also receved subsequently. Mmuever auditing accounts on a omercial basis for its of the Accounts has not been done and the position vater and seerage services in this respect, has been reported under Chapter-V. (Para 4.15). of Project Covlötion ueport. During the course of iplentation. Eunicipal Corporations vers stablisbed at Thane and Kalyan. These corporatio ~ also iilUde s= adjoining villages. The Municipal Corporations hav been requested to inoorporate the acopumta of ths. villagen in the accounts of the unicipal Corporation. 10. 7.01 maUSD will prepare and thereafter mintain muSSE has preparnd and mintained accounts on a POA. 4.02 accounts on a comarcial basis for all of ccamrcial basis for all of its operation and ha its operations and vill maintain separate also maintained separat. acount on this basis accomts on this basis, for the projeCt for ma558 Project Area. area. (Para 4.13 (11). 11. 7.01 O0M will require each village in the Project Out of 104 Villages included in the Project, 49 Ka. 208 Ara to prepare. in accordance with an Villages havs been covered by the Kalyan ~luicipai N. *.08 agreed prograes. and thereafter maiata Corporation. 8 Villages havs been inoludd in separate receipta and pamnts manoon*t for the lmits of the ghane ctaipal Corporation. Its yster supply services. S~milarly 8 villages have been included in the eAmt li~its of the ChSuandi Nmncipal Council. Ssoreover, a Manicipal CoiJl bas been sCab3is for absynu and 4 other villäge. 70. out of 10 villags iMlsded the ,jet a m e thM s Inm~se in the uits of the a _ geaicmet. Sr. Conant No. Coven~at CNlUan to Coveant. Mo. Sectkon of agrmnt. 1. 2. 3. '*4. 11. (Contd...) Dfore starting iiemtati.on of the Project, 51 'Xil lags t.j. to get sm vater sqply frm other existing sours. 36 out of such 51 villages are mintanig separate accoumts of-*ater auply servicso. The requrents ar continue~ to be epressed on the autborities of ~emaining viluages through the Bmock Dsvelogusnt Offlcrs. 12. 7.01 Gi1 vill require each iocal aut~rity to The requirments of iff~ronig the bilung and M.A. 2.1 ifprov billing and collection 1 oedures for collection procedure and rducing arrears from its tratr and sMeerage to a~ab3 onum r consmers vithin aceptable ln.ta vas ad~euately receivabls to he reuad to an eccptable ' ipressed on the oncernd authrities of the leel, to be agree with the Association by mniipal Coucis. Position in this respect vas 4 Narcb 31, 1981 also being report d to the Bank under the Quarterly (Para 4.14 (1) .). Progress port. It Vas seen that the consmrs' arrears receivable were generally more-than the acceptable imit of 3 onths' averag. hilUng. Effort continuæ to be nMd to improve tho position. M=088 s%pie.s vater in ulk to tha Kalyan micipa Corporation and directly to the consmørs In uU=hn%gar town. The stply through the stand- poste in lbasnagar ton is w«ever chargeM>!* to the Ulhøsnagar unicipal Coucil. Th des of these two councile are therefore treated m So mes' arr s s far as 11888 is concerne~. uch arrears also eu~øxeded 3 montbs' avrage biling. ar. Covenant up. a CovetS C~mane to Covnnts Mb. Section of Agreffent 1. 2. 3. 4. 13. 7.01 om ill cas ach local authority in .ge arrears of the elyan iäcipal Crporation JL . 21 ) the project area to pay its billa for buk anore particularly of the Ulhasnagar Auicipal p1ies pramtly to »ESS. If may hills Council contimd to increase far beyon the remain unpaid for mora than 90 days, OM acceptable ~imite of 3 monthu average bilng. vill seure full payuent by deduction frm fforts vere also made to recower sme ömnt t aough grant* duo to the local autbority or other the grants payable by the Governmnt to the ocal m *ans body. 9eently MMBB has also resolved to charge (Para 4.14 (ii) ). 18% delayed payment charges for the outstumUlnj ant. fffect of charging such delay payent charges is being stuid. 14 7.01 .<888 ill eut to IDA by September 30, 1979 Such a report bas been su~eitted to the sank on P.A. 2.05 (a) a satisfactor progress report for the 23rd Julv81 and the covenant has been complied introdution and operation of tinancal with. ngsnt and informaticn syst. 15. 7.01 5188h vill not incur any long teris debt The requirent vas noted by O188 an there vas P.L 4.05 Vithout IDAs prior agreemmnt. no cass of incurring any long tem debt. (Para 4.15). 16. 7.01 . OM Vill make arrangoment, satisfactory to The entire aumt requirad for implewentation of N.A. 2.02 the Association to t (a) onl~na the proceds the Project (excluing contribution of local bodies) of the credit to 0=898 for 25 years, for sanctionsd cost of Ra.86 Crores (Rs. 860 incluing a four-pear grace period at Million) as well as Increased cost of the Project 6 3/4 b (b) make available sufficient funds (as per detailed engineering) is being provided • • to complete the Project by the'OM and is being debited ~ner appropriate (Para 4.17 (i) (ii) heads of Grant-In-lid. loano etc. as per approved financing pattern df the om. 17. 7.01 O vill ensure that during the Project 11B~B There vas no such case of surplus in the Project vA 2 11 vill not utilise may surplu¥ ariing fro it. Area arising out of operations. *A 2. 1operations in the project rea for operational and development purposes outside that a;ea and the local authorities vill not utilse surplus funds from yater and smuerage operations for other purposes (Para 4.20). sr. Cv mnant fb. b ovenants emplfaife. to Onnts UM. Section of Agremnt 1. 2. 3. 4. 18. 7.01 • lefore April 1980, om. Will review the bulk The requirment of revising from tims to timm water x.A. 2.12 and retail tariff structures in the project. tariff vas inpresed on the local bodies.The local area in consultation with 1~USB the local bdies have increased water tariff and th detäils autborities and IDA having regard among have been listed at Annexure -xl. Cmaente in other things, to onsumers ability to pay this respe t have also been include under Para econic coset G future aua=ion of 5.12.1of the Project Cael*tion ~mport. (Para 4.22). 19. 7.01. 11888 vill eviewr and set it* bu~k tariffa mm188B also inoreased its tariff for bulk stply S4.04 in the poject area before the cno m t as well as retail spy to the Consunrs spite of cach financial y~er to cure that s- of resentment on the part of the consumers to pay inareased water charges. alBB has increased the a) ftrm april-1980 revenues are eufficient vater tariff 4 times during the last 4 years. The to oer operating epnes and details have been listad at Annezure - zi. d epreiation of fi~d asueta La opsaTion The assets of =ISB Mfter irks in the Project (Para 4.23 (i) (e) 3. Area vere revalued during the year 1982. urther revision of vater tariff vas finalised so as to b) From April 1, 1983, reveme g uffsar not mls thm ta return on th net ,fied in edition to ommring the ost assets in operation. inmlued above, tå proide a ute of return of average currently valud nt 'fia assets ta operation of not less than 4% La 198i54 and 19S4-S5 a st (Para 4.23 (i) (b). 20. 7.01 With effect from april 1, 1980, oSis vill similar revision of vater ratas by MSua in respeat revie its tariff& outside the Project Area of its consuers outside the project area vas also before the ~efblmd of each financial effeated during 1983, 1984 -and 1985. Report to year to ensure that revemas are sufficient this effect vas Included in the guarterly Progreass to cover operating e ecs and the greater R~ports suheitted to Bank. of depreciation or deb v sices. Sr. Covenat uo. a Covena eelionce to Covenamts ab. Section of groent 1. 2. 3. 4. 21. 7.02 amK vill ensure that a) for the year 1980-81 through 1982-83 The oWMliance stands partly reported nder each of the six unicipalities in the Cownant No. 18. The local bodies have been Project Area Will reviw and set requested to revise the leter Tariff so m to vOfly yater and seerago tariffs before the with the requirment of the covennt. enarment of esch finmncil year to neure that revenues are smfficient to cover operating enp det servicing and required mnnual contribtion to n~ twards the pro5ect oost. b) Fro. April, 1983, unicipal tariff Vill In viev of Para-$ of the Ibr1d Uank letter be set at such leels as Vill enwure dt. 16th March, 1983, adressed to the Scretary. revePImufficient to cover the greater to Govermant in 0.0. Deptt. the Kunicipal Concibs~ of cither operating epens and have been requested in 1983 to enumre that their dereciation and to produce a rate of rate struature should cover the operating cost return on average currently valmed net: and debt servicing till the projeoct is oimpleted fimd assets in operation of not less and the rimd asstes are transferred to them. than 34 in 1983-84, 44 in 1984-85, 5% in 1985-86 and 64 thereafter of The Municipal Councils have been regularly requested- operating coste and deb service. to keep 181Mff infored about any revision in vater (Para 2.26 (ii> ). tariff. Such revision of vater rates in respect of Thne, aivandi, alyat G Dombivli' had been effected fr<h 1-4-1984, 1-9-1984, 5-4-1984 G 20-5-1984 respetively. c) Prom April 1, 1983, villages tarrif Action in this respect is being initiated. In in the Projet area vill be set, at the mn timo efforts are concentrated on maintaining mch levels as vill enuwre revenes separate accounts for vater services. e si s sufficient to cover hu k water charges, of the problem has nam reduced since 70 out of operating comts and any de services. 104 villages have n been inclutd in the Lta (Para 4.26 (iii) ) of Cporation/Council as explained in reply to Coeant No. 11. sr. .ovnant as. a o.meoets anaqU n to osets lb. seotion of Agremet 1. ' 2. 3. 4- 21.* (<at.....) 4) MAy operating subuiay for the water The cannotis have agree4 that the elemmnt of substay sply a serag servim ViI b* ~uM be limitel to ubGi stand Pipe sUply and liitoa to the coet of su~~iyig water water m for ~ipel ne. by pblbc stan c pip. ansantoff at the doostic tarif, uness otherise a~ by the amaocat*~n. (Para 4.26 (av) ). 22. 7.01 om win eme 1oal authorities a the bmwa8 has rot the reguiruet. In oitreotion -.A. 2.0r (ea m to Pey to 5USD the amount phe, the intorest on ~apital e~enditure is big ...to seto nmOstet~ loans, zom red ftm tho ocal authorities. raised to finane the onuitreation of water distribution an 0m~rag syste on behalt of .3~a auth ities when som. aystoms are tranøferra to 3ocel auh~rities (Para 4.27) 23. 7.01 may staft position 31888 will be filled by The pinancial viser and CbLof A~oo=ts Officer JG. 2tab1e (andeo atos by septber 30, 1979, of the Doard resmud his duties in October-1982. U.A. 2.01 (0) ad thereafter any sigificant ches in Th~s the kny staff position of the N~683 bas been the organisationaa structure will only bo filled wr as reuired. male after onsultation with the sodntios. 24. 7.01 om vill submit audited acont of the 6 This stands p~rtly roply under Cvennts in. 9 ioipalities vater ply må g r far as anit reports of the pal bdes are. 'A. 2 operations, and 5188 wil subm~t their ou coerne audite aofftl~ to the ssouiann by gacer eah year. Sr. covenant No. a Covenants Compliance to Covenants No. Section of Agreement 1. 2. 3. 4. 24. (Contd.....) The accounts of MSS3 for the year 1984-85 were completed and adopted by the Board in its 36th meeting held on December 24, 1985. A copy of the accounts has been sent to the Bank, under letter No. MWSSB/FA I/amP FiLB N. 139, dated November 22, 1985. Auditing of this account is in progress by the Accountant General Maharashtra, and the audit report is awaited. 25. 7.01 All materials and equipments for the Steps were taken by MNSSB to insure materials project will be adequately insured and during transit as well as materials in closed all other public utility insurance godowns, like Cament. Similar actions have risks will be adequately insured by already been taken in respect of &aterial kept in MMBSB and the local authorities. open yard also. (Para 5.74). MAHARASHTRA WATER SUPPLT AND SEMBRAG PROJECT, fog* I za) AEtXUR vi STAMMONT SHOWING COURSES CONDUCTED ABROAD ATTENDED BY MAHARASHTRA WATER SUPPLY AND BZMRMMGBoDD ENGINEERS DURING IBAR-1979-00 to 1985-86 so. Hame of Course Name of Officer Place Duration 1. 2. 3. 4. S. 1. Management for Water Supply Shri V.D. Bhide, Chief Engineer. LeUqh Borough University 21/2/1981 to 13/3/1981. of Technology. ingland. 2. Short term course for Sr. Shri S.R. Tasgeonkar, Chief -- do -- 26/5/1982 to 25/6/1982; Public Health Engineers, Engineer. 3. Training in planing Appraisal Shri A.A. Sankapal, Supdt. Brudford University , 29/4/1985 to 29/7/1985. & Iaplementation of Water Engineer* United Kingdo". Supply A Sanitation Project. 4. Water Supply Projects. Shri D.. Joshi. Executive Lough Borough University 23.2.82 to 2.4.82 Engineer. 5. Foundation Training Programe Shri S.V. Shelkikar, Executive Latin America 14/3/1983 to 21/S/1983. at Administration Staff Engineer. College no fellowship Training Programse 1982 for 3 months. 6. Sixth post Gradaste Course Shri A.P. Chourasia, Bxective A.C.B.A. Rams (TALI) 0/3/1982 to 7/6/1982. for Technicians specilising Engineer. in Water works. 7. -- do ** Shri A.H. Mankani, Bxective * do -- 8.3.62 to 7.6.82 Engineer. . Water/Sanitation Course. Shri G.N. Lthi, Executive Bradford University England. 21/4/1986 for three week Engineer. 9. Resources Management Training Shri P.M. belapurkar Bective Deptt. of Water Resources 14.4.86 to 6.4.86 Angicer. ngg. and Institute of Technology Sweden. 10. Group Training Couree in Shri *.V. n Govt. of Japan under the Coloumbo 5/9/85 to 9/12/8S. Beverage Works Engg. Under Plan. Technical Co-operation Colombo Plan. progrease . 147 ANNEXURI - XVII List of Training Prggrammes conducted/to be conducted at Research and Training Centre at Nasik Road. Sr.No. Description of the Course *-.......... ** *.--...*.....*..e,ee-e.ee,e.eee.e,eee 1, Operation and Maintenance of Pumping Machinery 2. Course to train Electricians 3. Chlorination 4. Ru3ral.i Sanitation 5. Design, Erection, Operating and Maintenance of Pumping Machinery Course for Jr. Engineers (Mech.) 6. Elements of supervision of Civil Engineering Works. 7. Course to train Filter Operator 8. Ground Water Hydrology 9. Leak Detection 10. Investigation, Planning and Design of Water Supply Project 11. Water and Waste Water Quality 12. Investigation, Design and Construction of Sewerage Treatment Plant 13. Management of Rural Water Work 14. Water and Waste Water Laboratory Test 15. Pipes a.A Plumbing 16. Water Meter Repairs 17. Well drilling/Hand pump maintenance etc. 18. Course to train Water Works Supervisor .-. .* *. .* *. .- -. .* *. .- -. .- -. .- *. .* -. .- *. .- -. ** ** ** ** **