India - Gujarat Water Supply and Sewerage Project

Document of , The World Bank L; P X ,' FOR OFFICIAL USE ONLY Report No.3667b-IN INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJEC' STAFF APPRAISAL REPORT June 14, 1982 Regional Projects Department South Asia Projects This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT CURRENCY EQUIVALENTS US$1.00 = Rs 8.5 Rs 1.00 = US$0.118 MEASURES AND EQUIVALENTS mm - millimeter (0.04 inches) cm - centimeter (0.39 inches) m - meter (39.37 inches or 3.28 ft) km - kilometer (0.62 miles) ha - hectare (10,000 square meters or 2.47 acres) sq km - square kilometer (0.386 square miles) 1 - liter (0.22 Imperial gallons or 0.264 US gallons) lcd - liters per capita per day cu.m - cubic meter (220 Imperial gallons or 264.2 US gallons) ml - million liters or 1,000 cubic meters mld - million liters per day (0.220 million Imperial gallons per day or 0.264 million US gallons per day) mgd - million gallons (Imperial) per day ABBREVIATIONS AND ACRONYMS AIC - Average Incremental Costs AMC - Ahmedabad Municipal Corporation BRAS - Municipal Corporations of Baroda, Rajkot, Ahmedabad, and Surat CPHEEO - Central Public Health Engineering and Environmental Organization GOG - Government of Gujarat GOI - Government of India GWSSB - Gujarat Water Supply and Sewerage Board IRR - Internal Rate of Return LIC - Life Insurance Corporation of India MC - Municipal Corporation PHES - Public Health Engineering Service RMC - Rajkot Municipal Corporation UNDP - United Nations Development Programme WHO - World Health Organization FISCAL YEAR April 1 - March 31  FOR OFFICIAL USE ONLY INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. I. THE WATER SUPPLY AND SEWERAGE SECTOR .......................... 1 National Sector Organization and Development .................. 1 The State of Gujarat - Background Data ........................ 2 Service Levels .....................f 3 Sector Investment Program ..................................... 4 Sector Organization ...................., 5 Operation and Maintenance ..................................... 5 II. POPULATION FORECASTS AND DEMAND PROJECTIONS IN PROJECT AREA .. 6 The Project Area .............................................. 6 Present Water Supply in Project Area .......................... 6 Present Sewerage in Project Area .............................. 7 Population Forecasts .......................................... 9 Present and Forecast Water Demand and Sewage Flow ............. 10 Water and Sewerage Services for the Urban Poor ................ 11 III. PROJECT AGENCIES ............................................. 16 The Water Supply and Sewerage Board (GWSSB) ................... 16 Ahmedabad Municipal Corporation (AMC) ......................... 17 Operation and Maintenance ..................................... 18 Manpower and Training ......................................... 18 Project Implementation Arrangements ........................... 20 IV. THE PROJECT .................................................. 21 Project P'riorities and Selection Criteria ..................... 21 Project Design ................................................ 21 Project Description ........................................... 22 Urban Water Supply ............................................ 22 Urban Sewerage ............. 23 Rural Water Supply ............................................ 23 Low-Cost Sanitation ........................................... 24 This report is based on the findings of an IDA mission consisting of Messrs. D.B. Clement, R.C. Mitchell and H.W. Barker who visited Gujarat in June 1981. Mr. K.G. Jechoutek also contributed. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Table of Contents (continued) Page No. Common Sevices ................................................ 24 Cost Estimates ................................................ 24 Financing ..................................................... 24 Retroactive Financing .. 24 Engineering and Management Consultants .. 26 Implementation Schedule .. 27 Procurement ................................................... 27 Disbursement .................................................. 28 Land Acquisition .. 29 Property and Household Connections to Sewerage Systems . . 29 Metering ....................................................... 30 Distribution System Maintenance .. 30 Low-Cost Sanitation .. 31 V. FINANCIAL ASPECTS ............................................ 32 Past Financial Performance .. 32 Present Financial Position ................... 34 Tariffs ....................................................... 35 Future Financial Performance .. 37 Financing Plan ................................................ 39 Onlending Arrangements .. 40 Commercial Accounting Systems ................................. 41 Audit ......................................................... 42 Billing and Collection .. 42 Insurance ..................................................... 42 House Connection Loan Fund .. 43 VI. ECONOMIC AND SOCIAL ANALYSIS ................................. 43 Marginal Cost Analysis .. 43 Internal Rate of Return .. 44 Pricing Considerations .. 44 Environmental and Health Impact .. 45 Impact on Poverty Groups ...........................-------- 46 Least-Cost Solution .. 47 Project Risks .. 47 VII. AGREEMENTS REACHED AND RECOMMENDATION ........................ 47 Agreements Reached .. 47 Condition of Disbursement .. 48 Recommendation ........................ ....................... 48  -i.ii- Table of Corntents (continued) Page No. ANNEXES 1. Sector Investments ........................................ 49 2. Urban Water Supply Service Levels - Summary ............... 50 3. Urban Areas Sewerage - Salient Data and Service Levels.... 51 4. Low-Cost Sanitation - Existing and Proposed Facilities.... 52 5. Urban Water Supply Demands - Summary ...................... 53 6. Urban Areas Water - Salient Data and Service Levels ....... 54 7. Rural Water Supply Demands . . 55 8. Organization Chart of Gujarat Water Supply and Sewerage Board .................................................. 56 9. Organization Chart of Ahmedabad MC Engineering Department. 57 10. Manpower Forecast and Recruitment Rate 1981-1990 .......... 58 11. Forecast Training Requirements .......................... .. 59 12. Project Description ....................................... 60-65 13. Summary Estimated Costs GWSSB Components .................. 66 14. Summary Estimated Costs AMC Component ..... ........... 67 15. Total Summary Cost Estimates - Rural and Urban Areas ...... 68 16. Project Schedule - AMC Project ..... 69 17. Etigineering Design and Construction Schedule .............. 70 18. Material and Equipment Requirements, GWSSB Projects ....... 71 19. Material and Equipment Contracts, AMC Project..----*--- 72 20. Disbursement Schedule ..................................... 73 21. Present Tariff Structure .................................. 74 22. Financial Statements - Project Cities ..................... 75-82 23. Assumptions for Financial Projections .... ................. 83-85 24. Financial Statement - Regional Water Supply Schemes ....... 86 25. Financial Statement - Individual Rural Water Supply Schemes ................................................. 87 26. GWSSB - Receipts and Expenditure Statement ................ 88 27. GWSSB - Loan Fund Account ................................. 89 28. Statistics of Water Related Diseases ...................... 90 29. Project Investment for Poverty Groups .................... . 91 30. Monitoring Indicators . ......... 92-94 31. Selected Documents and Data Available in Project File ..... 95 MAPS IBRD 15997 - Location of Proposed Water Supply and Sewerage Schemes IBRD 15998 - Ahmedabad MC Sewerage Project - Proposed Works IBRD 15999 - Rajkot MC Sewerage Project - Proposed Works  II  INDIA STAFF APPRAISAL REPORT GUJARAT WATER SUPPLY AND SEWERAGE PROJECT I. THE WATER SUPPLY AND SEWERAGE SECTOR National Sector Organization and Development 1.01 While the Central Government exercises some influence in the sector, State Governments in India have primary responsibility for development of water supply and sewerage facilities. They execute their responsibilities through various departments of government and agencies which, in turn, may delegate part or all of their duties to local authorities. In certain cases, legislation has been enacted to permit municipal authorities or other agencies to assume the entire responsibility for planning, design, construction, operation and maintenance of water supply and sewerage services within their jurisdictions. 1.02 Since the early 1950's, State Governments have endeavored to meet the increasing sector demands caused by rapidly expanding populations and unprecedented rates of urban growth. However, competing demands for resources by other sectors, lack of management and planning skills, shortages of key materials and equipment, as well as foreign exchange constraints, have resulted in only 1 to 2% of public expenditures being invested in the sector. This has led to inadequate levels of water supply and sewerage services. In 1975, it was estimated 1/ that in India only 193 million people, or 31% of the total population of 620 million, had access to reasonably safe drinking water and that only 125 million (20%) had acceptable means of disposing of sewage. These levels were lower than average levels for all developing countries, in which water and waste disposal services reached 38% and 33% of the population, respectively. While some improvement in water supply service has been achieved, the percentage of the population receiving waste disposal services has actually declined. 1.03 It is estimated 2/ that investments in developing countries in the order of four times the 1971 to 1975 levels will be necessary if the goals of 1/ World Health Organization, Community Supply and Wastewater Disposal, Mid-Decade Progress Report, May 1976. 2/ Report on Community Water Supplies, United Nations Water Conference. Mar del Plata, Argentina, March, 1977.  -2- the Drinking Water Decade 1/ are to be achieved by 1990. For urban water supply and sewerage in India, the investment in the Fifth Five-year plan for the period 1974 to 1979 averaged some Rs 1,100 million (US$131 million) per year, about 1.5% of the total plan investment; annual investment in the rural water sector in the same period was Rs 750 million (US$89 million) which was 1.0% of the total plan investment. Much higher investment levels will be necessary if significant progress towards Decade targets is to be seriously attempted. The Government of India (GOI) is committed to the objectives of the Drinking Water Decade, and in its Sixth Five-year plan 1980-85, it has allocated 4% of the total plan provision to the sector. The rural water sector under the plan will receive an average of Rs 4,300 million (US$505 million) per year, about 2.2% of the plan, while the urban water supply and sanitation sector will receive an average of Rs 3,500 million (US$411 million), about 1.8% of the plan. These figures represent approximately four times and three times, respectively, the investments made in the individual sectors under the previous plan, and reflect the importance which GOI attaches to the Decade program. Moreover, GOI appreciates quite realistically that the financial demands of the program can only be met by the use of low-cost techniques both in water supply and in sanitation, and has consequently urged State Governments to adopt these techniques where appropriate. The efficient operation and effective maintenance of water and sewerage systems has always presented a serious challenge to Central and local government institutions, and it is imperative that the increase in capital works occasioned by the Decade program be accompanied by an intensive training of personnel in the sector in order that a compatible standard of operational competence is achieved. The State of Gujarat - Background Data 1.04 The State of Gujarat is located in the northwestern part of India bordering on Pakistan. It covers an area of 187,091 sq. km., which is 5.7% of the national territory. The total population of the State is currently estimated to be in excess of 30 million, representing an average density of 164 per sq. km. 28% of the population is urban, living in 216 municipalities and townships and the rural population inhabits 18,275 villages. The average per capita income was estimated at Rs 1,450/annum for 1977/78 which compares favorably with the all-India average of Rs 1,022 for the same period. 1.05 The area's access to surface water is relatively limited, but the population supplied in this area represents almost one third of the total population served. There are only three perennial rivers: Narmada, Tapi, and Mahi, all located in the south of the State, and numerous smaller 1/ The goals are: Urban and Rural Water Supply - 100% coverage. Urban Wastes disposal - 80% coverage. Rural Sanitation - 25% coverage.  -3- non-perennial rivers which are used for irrigation or combined irrigation/water supply purposes. Ground water is very limited in the peninsular region of Saurashtra, mainly due to the rocky stratum, but also on account of the high salinity present in the coastal areas. In the alluvial areas of northern Gujarat, ground water is more plentiful and can be tapped under varying conditions and at different depths. The semi-arid area of Kutch to the north is virtually without any reliable source of water, and water supply in this region involves expensive conveyance over large distances. Service Levels 1.06 The overall service level is far from satisfactory. In particular, the rural population wnich accounts for more than 70% has only limited access to safe water. The present situation is that of 9,600 problem villages 1/ (50% of the total number of villages) only 4,514 with 4.06 million population are supplied with safe water. 1.07 The situation is somewhat better in the urban areas. Out of 216 towns, 49 still lack an organized water supply system, but the 167 which are served enjoy a comparatively high coverage of their population, although only intermittent service is available at most places. Investments in urban areas have not only kept pace with population growth, but considerable funds have also been made available to extend the systems. At present, 126 towns can be regarded as having a minimum supply for all inhabitants and 41 are in a stage of improving their supplies to that level. The following table illustrates the situatiorn. Table 1.1 Number of Towns Population Served Population Unserved Million %Served by house- Million connections 126 (including BRAS) 2/ 6.63 78 Negligible 41 1.20 70 0.54 49 Nil Nil 0.44 216 7.83 0.98 1/ A problem village is a village without an assured safe water source within a distance of 1.6 km from the village. 2/ Municipal Corporations of Baroda, Rajkot, Ahmedabad and Surat. (Since Appraisal, Jamnagar and Bhavnagar have also been made Municipal Corpora- tions).  -4- 1.08 Nineteen towns have sewerage facilities, with partial coverage and primary treatment. In addition, three major cities, Baroda, Surat, and Ahmedabad, operate extended systems with secondary treatment plants. There is a sizable conversion program under execution to replace bucket latrines by water-seal latrines. The program was started in 1964 and, to date, approximately 76,400 out of 98,700 dry latrines have been converted. Approximately 28% of all urban households are still without any facilities. Rural sanitation has so far been given little consideration. Sector Investment Program 1.09 In an endeavor to comply to the extent possible with the goals of the Drinking Water Decade, the State of Gujarat places immediate emphasis on the water supply of the neglected rural areas, the short-term goal being to cover all problem villages, 50% with piped systems and 50% with hand pump systems. In urban areas, an attempt will be made to improve existing levels in supply and to keep pace with population growth. While previously pursuing the objectives of providing water-borne sewerage on a wide scale, the Government of Gujarat (GOG) will now supplant this objective with the use of low-cost sanitation techniques, except in the case of some Class I 1/ townls and to some degree in smaller towns, where there are well established water-borne facilities or where geological conditions render these techniques inappropriate. 1.10 Annex I shows past and projected investments in the sector as far as they are funded by GOG, LIC 2/, and commercial bank loans. Total sector investment figures are not readily available and would require an extensive review of all municipalities since the financing system is rather complex: (i) The Municipal city corporations do not normally have access to Government funds but have to use their own resources in addition to borrowings from LIC and/or commercial banks. (ii) Other municipalities are supported by the Government in varying proportions of their investments depending on their size. 1.11 During the Fifth Plan, sector investments represented only 3% of GOG total outlay. Under the Sixth Plan, this percentage will increase to 1/ Class I towns are those having populations greater than 100,000. 2/ Life Insurance Corporation of India.  -5- something in excess of 6%. Whereas, the total investment in urban water supply and sanitation in the Sixth plan shows a moderate increase over that of the Fifth Plan, projected investments in rural supply show a marked increase to almost triple the already substantial amount previously allocated to this part of the sector. Sector Organization 1.12 The organization of the Sector in Gujarat is rather diffuse. With the exception of the Municipal Corporations, the responsibility for the planning, design, and construction of the water supply and sewerage systems for the whole of the State of Gujarat rests with the Gujarat Water Supply and Sewerage Board (GWSSB). GWSSB was established on August 20, 1979. It was the intention that GWSSB should take over the functions of the Public Health Engineering Service (PHES), but as an autonomous body. However, the PHES, for an interim period, continued its involvement in the execution of projects in hand, and it was only on April 1, 1981, that the entire functions of the PHES were vested in GWSSB. As a general principle, GWSSB will finance, execute, and commission projects but will hand them over to the local bodies for operation. 1.13 The Municipal Corporations act independently in planning, design, construction, operation and maintenance, financing, billing, and collecting for their systems. They may, however, make use of the services of GWSSB at their own discretion. They can propose tariffs, but tariff implementation is subject GOu approval. The functions of the Corporations are defined in the Bombay Provincial Municipal Corporation Act, 1949. 1.14 The Municipalities, district panchayats and village panchayats in rural areas normally take over the systems after commissioning, and GWSSB is fully reimbursed by local contribution and by GOG grant for the construction costs and its services. The powers of the municipalities and panchayats are covered by the Gujarat Municipalities Act 1963, and the Gujarat Panchayat Act 1962. These local bodies may set their own tariffs subject to approval by GOG. 1.15 The other principal agency involved in the water supply and sewerage sector is the Board for the Prevention and Control of Water Pollution. This Board which is empowered by the Water (Prevention and Control of Pollution) Act, 1974, and its Amendment of 1978, regulates waste water disposal to streams and to other receiving water bodies. Operation and Maintenance 1.16 Operation and maintenance of existing water supply and sewerage systems are generally unsatisfactory throughout the sector, partly because of organizational and financial constraints, but to a large extent due to a lack of well-trained staff. Training will be introduced through the proposed project to improve skills, particularly of those at the operational level.  -6- II. POPULATION FORECASTS AND DEMAND PROJECTIONS IN PROJECT AREA The Project Area 2.01 A water supply and sanitation sector memorandum for the State of Gujarat was prepared by the World Bank/WHO Cooperative Program (IBRD/WHO CP) in late 1978, which examined in detail the status of the sector and identified the priorities of future sector investment. In line with these priorities, GOG has prepared a project package consisting of the following: (i) an urban water supply component covering extensions to the systems of five large towns, Nadiad, Godhra, Jamnagar, Bhavnagar, and Anand; (ii) an urban sewerage component involving extensions to the sewerage systems of the Municipal Corporation of Ahmedabad (AMC) and the towns of Nadiad and Anand, and the provision of completely new sewerage systems for the Municipal Corporation of Rajkot (RMC) and the town of Savarkundla; (iii) a rural water supply component covering seven regional village groupings; (iv) 111 individual rural water supply schemes for "no source" villages; and (v) a low-cost sanitation component for 15 sample towns identified under the UNDP Global Sanitation Project. A training component for all grades of water supply and sewerage personnel within the sector has been especially emphasized under the project. The justification for the selection of the components of the project package is given in paragraph 4.02. Present Water Supply in Project Area 2.02 The towns of Nadiad and Anand are located in the alluvial area of Gujarat where underground water is relatively plentiful. At present, both towns are supplied from tube/infiltration wells located either within or in close proximity to the municipal boundaries. There is no shortage of water in these areas and existing service levels are comparatively high. New water supplies will be required only for areas which hitherto were not supplied. 2.03 The towns of Jamnagar and Bhavnagar rely almost exclusively on surface water sources for their supply which means taking supplies from natural lakes or from impounding reservoirs. Existing resources have been insufficient to keep up with the demand of expanding domestic and industrial usage, and current service levels are barely adequate. Bhavnagar has negotiated a substantial new supply from the Irrigation Departments Shetrunji reservoir which will form the principal source of the new project, but at present, the raw-water transmission line from this reservoir is incomplete, and the current expedient of discharging water from this source into an existing reservoir via an open watercourse is not satisfactory. The raw water for both towns is treated at conventional rapid gravity filter plants. There is no spare capacity available at these plants for the increased project flows, but there is adequate space at these locations for the construction of new facilities. The existing distribution and storage  -7- facilities in both towns are adequate for present supply levels. However, they will have to be augmented under the new project. 2.04 The existing supply for the town of Godhra consists of a system of infiltration wells located on the Meshri river. This system, together with a distribution system adequate for present needs was constructed in 1958. The projected design yield from this source has never been realized and subsequent extension of the well system has not made any appreciable addition to the yield. The existing distribution system needs no major improvement, but on account of the deficiency of supply, domestic service is inadequate. Water from the Pan Am irrigation canal is the only feasible source of new supply. 2.05 Most of the villages covered by the rural water supply component of the project are located either in arid regions where water is scarce or in coastal regions where the water is highly saline and not potable. Normal sources for the villages are shallow open wells or rivulets which dry up or turn saline in the dry season. There is no piped water system in existence, and villages have to draw water from sources located at some considerable distance. 2.06 Existing water service levels in the urban project areas are shown in Annex 2. Present Sewerage in Project Area 2.07 Ahmedabad Municipal Corporations - The city of Ahmedabad is the largest urban center in the State of Gujarat with a present population exceeding 2 million. It has almost a flat terrain with a maximum level difference of about 4m from north to south, and the city is divided into eastern and western areas by the river Sabarmati. Almost the entire urban area is at present sewered by a separate 1/ sanitary system, which has been extended from time to time to meet the needs of the rapidly expanding city, It is served at present by nineteen pumping stations, of which fourteen are on the eastern side and five on the western side. Complete treatment is provided to sewage generated from the city at two biological filter plants; one at the Pirana site on the eastern side having an average design capacity of 72 mgd and the other at Vasna site on the western side having an average capacity of 12 mgd. The treated sewage is discharged into the river Sabarmati. 2.08 Basecl on long-term data collected by AMC on the performance of the treatment plants at Pirana and Vasna, it has been observed that the efficiency of both plants has been erratic. These problems are partly due to 1/ To convey sewage only, and to exclude most of the surface water.  -8- heavy industrial waste discharges and the high peaks caused by intermittent water supply, but the Pirana plant has for a long time been only partly functional due to defects in the biological filter equipment. 2.09 The discharge of poorly treated effluent from the existing treatment plants and the overflow of raw sewage into water courses in periods of storm have given rise to complaints from the Water Pollution Control Board. An immediate works program is currently correcting some of the major defects of the existing collection system and an attempt is being made to diminish peak flows by staggering water supply to various areas of the city. Furthermore, a vigorous campaign is currently being conducted by AMC to force offending industries to comply with existing industrial waste regulations. 2.10 Rajkot Municipal Corporation - Rajkot (about 500,000 inhabitants) is the smallest of the four Municipal Corporations. The city is divided in two parts by the river Aji running from south to north. The land on the western bank of the river generally slopes in the north-east direction while that on the eastern bank slopes towards the river. 2.11 There is no modern water-borne sewerage system in the city. Septic tanks and pit latrines are the sanitation methods normally employed. Human waste is removed by specially built vehicles and disposed to compost pits away from the city. The soil conditions are extremely rocky throughout the city area and are most unfavorable to the present disposal methods, so that sullage water and overflow from poorly functioning septic tanks is drained away in open drains to eventually discharge into the course of the river. In the congested parts of the city, the resulting insanitary conditions are a serious public health hazard and the advent of a currently proposed water supply project with increased flows will aggravate this situation even further. 2.12 Other Project Areas - The major towns of Nadiad and Anand have extensive systems of separate sanitary sewerage, both of which have been in existence for about twenty years. In the case of Anand, the system is mainly gravitational but sewage is finally pumped to a treatment plant consisting of screens, grit chambers and oxidation ponds before ultimately being discharged to the land. The Nadiad system has two small lift stations and a main pumping station which conveys the sewage to a primary plant located outside the town limits after which the effluent is disposed to the land. All pumping stations are in working condition but are overloaded. The treatment plants are in a poor state of repair, and are frequently shut down because of mechanical failure. With improvement in pump capacity, the existing collection systems would be adequate for the areas which they serve today but would not be able to cope with newly developed areas of the towns. 2.13 Savarkundla town has no existing water-borne sewerage system. A number of isolated drain lines has been constructed along main roads to collect sullage water, but these discharge untreated waste direct to the  -9- local river. Public latrines are of the basket type requiring manual removal of night soil. The majority of private latrines are of the flush type connected to soak pits or to septic tanks. Due to the high rock level throughout the town area, the latter system of disposal is completely ineffective and the overflow of effluent from septic tanks and soak pits into roads and open drains has now reached a level where there is a threat to public health. 2.14 Existing sewerage service levels in the urban project areas are shown in Annex 3. 2.15 The fLfteen sample towns selected for the low-cost sanitation program have been studied in some detail in the UNDP Global Project report. All towns have adequate piped water supply systems, and it has been established that, in general, local soil conditions are suitable for the installation of low-cost pour flush units. Those isolated areas which may pose a threat of pollution of water supply sources have not been included in the project. Existing levels of sanitation service in the fifteen towns are shown in Annex 4. Population Forecasts 2.16 In India, a population census is conducted every ten years, and the data relating to the past four decades is available for all States, including Gujarat. 1981 is also a census year, but at the time of preparation of the proposed project, the details of the census were not yet available. The forecasting of future populations in the project area has been based on past population growth rates, adjusted where appropriate to take into account factors such as migration, and national policy measures such as birth conrol. Both in rural areas and urban areas, graphical methods of growth prediction have been used and, in the majority of cases, a modified geometrical progression has been adopted. For urban water distribution and sewerage net work analysis, ward-wise populations have also been forecast and for such purposes town plans and land use data have been referred to. In regional rural areas, the seasonal migration of population from one village to another has also been taken into account. 2.17 Present and forecast populations in the various project areas are summarized in Table 2.1.  -10- Table 2.1 POPULATIONS IN PROJECT AREA Urban Areas 1980/81 1985/86 1990/91 -Thousands-- Ahmedabad 2,200 2,547 2,830 Rajkot 500 590 690 Jamnagar 302 351 406 Bhavnagar 300 336 363 Nadiad 139 162 178 Anand 91 115 133 Godhra 82 93 104 Savarkundla 49 53 57 Total 3,665 4,7Tfi Rural Areas Regional Schemes 295 328 357 Individual Schemes 116 131 144 Total 411 459 501 Present and Forecast Water Demand and Sewage Flow 2.18 Detailed demand projections for water and sewage flow for urban areas of the project are shown in Annexes 3, 5, and 6. Urban water supply, together with domestic demands and consolidated water demand figures for the rural areas, are summarized in Annexes 3 and 7. Accurate production and consumption data are not available for any of the project towns. Although the existing water supply systems are similar in design, the quality of operation and maintenance varies, and system losses are expected to vary from one town to another. However, the projections assume that during the project implementation period, through improved operation and maintenance, the implementation of a leak-detection program, and the installation of bulk supply meters, the unaccounted-for water in all towns will be reduced to a reasonable level. 2.19 The objectives of the urban water supply projects are to provide a domestic supply of about 140 lcd to connected consumers and 45 lcd to standpost users. In Nadiad, Anand, and Bhavnagar, where an adequate supply is assured, these objectives may be realized within the scope of the project for a period up to the end of the century. The two remaining towns, Jamnagar and Godhra, have access to only limited allocations of water from irrigation sources at the present time, and no economically viable alternative sources of supply exist. In these two towns, therefore, although the proposed supply  -1 1- levels are a marked iLprovernent over those currently prevailing, a level of service inferior to the above objectives will have to be accepted. Moreover, if a reasonable level of service is to be maintained in these two towns to keep pace with rising population, additional supplies will have to be provided in the early part of the next decade. Fortunately, new irrigation sources are projected for development by that time, and these are expected to provide the necessary additional quantities. Present and future service levels for urban water supply projects are shown in Annex 2. 2.20 Rural water supplies will be provided to consumers entirely by standpost. On this basis, consumption has been assumed to range between 40 and 70 lcd. 2.21 Industrial demand has been based on predicted requirements. In those urban areas which rely on surface water as a source of supply, the predicted industrial demand has beeni included in the projections for total demand from the system. Where ground water is readily available, the general practice throughout the State is for industrial consumers to develop their own water sources from private wells and not to make use of the municipal supply. This is the case in the towns of Anand and Nadiad where industry has elected to meet their present and future needs in this way. Provided that ground water reserves are adequate for combined industrial and domestic demand, which is the case in these two towns at the present time, this practice does not present a problem. However, although industry bears the cost of development of its own supply, exploitation of ground water by private industry does deprive the community at large of this public resource. At some future date, when local reserves may become critical, continued exploitation of ground water by industry could force other categories of users to seek more distant and more expensive water. Early action should be taken to safeguard against this undesirable situation. During negotiations, GOG promised to furnish to the Association by June 1983 its assessment of this problem, together with its intentions regarding the licensing of wells and the metering of such extractions. 2.22 The sewage flows are based on the assumption that 80% of water supplied will enter the sewerage system. In addition, adequate provision has been made for-infiltration. Water and Sewerage Services for the Urban Poor 2.23 The urban poverty income threshold, which is used to identify the  -12- number of urban poor, is currently defined for India as US$88/capita/annuml/. Converted to monthly household income, this corresponds to Rs 350 per mont:h. The estimates of urban poor, both as a percentage of total households and total population for selected project towns, are presented in Table 2.2. Three general conclusions regarding the extent of urban poverty in selected urban centers in Gujarat are: (i) The percentage of urban poor appears to be considerably lower than the Indian average. Urban poor households constitute between 14% and 39% among the towns surveyed compared to approximately 40% for the country as a whole. (ii) In general, the larger the size of town the lesser the proportion of urban poor. Anand and Godhra represent the average Indian urban centers with about 40% of the households below Rs 350; Rajkot presents an extreme situation with only 14% below the threshold income class, but this figure may be distorted by the higher cost of living index in this city. The city of Ahmedabad is also unrepresentative in having a high poverty figure approaching the upper national limits, due to high immigration of low income groups from the rural areas. (iii) In general, urban poor are not concentrated in well-defined slum areas but are distributed in hutments scattered throughout the congested city areas so that they are difficult to pinpoint. Water supply and sanitation services for this group have therefore to be provided in a fragmented manner. 2.24 The present service level of the urban poor households with respect to water supply and sanitation is presented in Table 2.3. The estimated per capita consumptions of municipal water for the urban poor and other categories are shown in Table 2.4. Figures taking into account water supply from all sources would show a slightly more favorable service level for the poor as they rely more heavily on non-municipal sources than other categories of consumer. 1/ It should be noted that this is substantially lower than urban poverty levels in many countries. For example, in Colombia the threshold is $214/ capita/annum and in the Philippines $250/capita/annum. Persons with these incomes in India would be well up the economic scale, and were a world-wide threshold used, the percentage of urban poor which benefit from a project would be markedly higher than indicated in this report.  TABLE 2.2: URBAN POOR IN SELECTED CITIES/TOWNS IN GUJARAT of Estimated Population Estimated Per Household of Urban Poor Capita Income Per Capita Income Town/ Below Rs. % of of Urban Poor All Classes Per City 350 per Total (Rs. Per Year Month Number Population Year) (Rs) Anand 38.9 27,800 34.3 559 1,314 Bhavnagar 29.4 76,290 22.8 651 1,294 Godhra 39.1 35,060 41.7 447 1,051 Jamnagar 26.2 62,070 21.6 651 1,425 Nadiad 26.4 31,800 22.1 580 1,423 Rajkot 14.2 53,530 10.9 644 1,482 Savarkundla 30.4 11,920 24.7 585 983 Note: The urban poverty income threshold has been defined as US$88.0 per capita per year (or Rs 704) in 1980. The definition adopted above, i.e. Rs 350 per household per month closely follows this criterion allowing for the price adjustment between 19P0 and 1981.  TABLE 2.3: SERVICE LEVELS ENJOYED BY URBAN POOR Water Supply (%) Source Sanitation % Town/ House Stand Septic Public Open City Connections Post Others Sewered Tank Bucket Latrine Area Anand 29.5 40.5 30.0 16.4 6.4 0.5 25.2 51.5 Bhavnagar 39.1 41.0 19.9 23.3 3.0 - 25.7 48.0 Godhra 27.7 41.3 31.0 - 32.7 27.7 - 39.7 Jamnagar 38.9 25.8 35.3 - 23.1 22.2 28.7 26.0 Nadiad 42.3 36.7 21.0 42.0 0.6 - 44.2 13.2 Rajkot 55.8 * 26.4 17.8 - 33.1 12.3 27.6 27.0 Savarkundal 28.5 31.5 40.0 - 7.2 1.4 56.5 34.9 * Including shared connection.  -1 5- Table 2.4 PER CAPITA WATER CONSUMPTION OF URBAN POOR City/Town Per Capita Consumption from Municipal Sources (lcd) Urban Poor Rest Anand 49 87 Bhavnagar 38 74 (ndhra 23 42 Jamnagar 36 51 Nadiad 69 137 Rajkot 70 102 2.25 The wide disparity between the water available for consumption by the urban poor and the rest is due in part to the basic water supply deficiency. With improved supply, the per capita figures for urban poor should correspondingly improve to an adequate level. The important difference in the service level lies in the significantly lower proportion of house connections enjoyed by the poor. The proportion of house connections varies between 30% and 40% among the urban poor households compared to 60% to 80% among the rest. The proposed project will install additional standpipes which will be located so that there are not more than lOOm distance between dwellings and taps and not more than 100 people per tap. It is believed, however, that financial incentives in the form of preferential tariffs could induce a greater portion of urban poor to avail themselves of a more accessible supply by installing private or shared house connections. 2.26 With regard to sanitation, private access to facilities is even more restricted. In Savarkundla, about 90% of households use public latrines (bucket type) and open areas, while the corresponding percentage for the other cities approaches 60%. The proposals of the present project would greatly change this situation. Modification of the sewerage systems coupled with financial assistance for connection charges and improved household plumbing will enable a larger percentage of the urban poor to use these facilities. In addition, public latrine facilities will be increased so that, statistically speaking, there are not more than 30 people per toilet. 2.27 The low-cost sanitation program, included in the project for 15 medium-sized towns, will benefit about 40% of the present population in these towns. A recent GOG directive on low-cost sanitation makes it mandatory that 30% of expenditure on any such program be devoted exclusively to the under-privileged (Harijan) group, who will receive these facilities free of charge. It is proposed (para. 4.27) that other low income groups will also be eligible for financial assistance in installing low-cost sanitation units. ln these towns, public latrines will be kept to a minimum as it is intended  -16- that private access to sanitation will be made available to the majority of people within the Decade. III. PROJECT AGENCIES The Water Supply and Sewerage Board (GWSSB) 3.01 GWSSB was established on August 20, 1979, consequent to the passing of a Bill (No. 50 of 1978) by the Gujarat State Legislative Assembly. The duties and functions of GWSSB are described fully in the Gujarat Water Supply and Sewerage Board Act, 1978. Essentially, it was established to take over the functions of PHES but as an autonomous body. On Aprli 1, 1981, the entire responsibilities of PHES were formally vested in GWSSB. 3.02 The functions of GWSSB are broadly concerned with the investigating, preparing, and executing water supply and sewerage schemes, subject to reimbursement for all costs by the local authorities concerned. The Act does not permit the Board to carry out operation and maintenance of schemes because they are normally handed over to the local authorities after implementation. However, the Act does empower GWSSB to operate a system for a specific period in case of mismanagement or when requested to do so by GOG. 3.03 The Municipal Corporations do not come under the jurisdiction of GWSSB, but may make use of the services of GWSSB at their own discretion. An amendment to the original Act was made in 1980 which permitted GWSSB to seek financing for schemes to be undertaken on behalf of the Municipal Corporations (MCs). 3.04 All members of the Board are appointed by GOG. The Board is composed of a Chairman, a Member Secretary, three ex-officio members and seven other members. The Chairman, who normally holds office for a period of three years, is required to have wide experience in a managerial or technical capacity. The Member Secretary is required to be a qualified engineer, and the three ex-officio members are representatives of various State Government Departments. Of the other members, three are nominated from among elected heads of local bodies, and the remaining four must be experts in economic or development planning and engineering. The Member Secretary is the Chief Executive Officer of the Board. 3.05 GWSSB is at present organized in six separate sections (see Organizational Chart, Annex 8). To permit greater operational efficiency, the organization has already been decentralized into several regionally based circles. GWSSB's total sanctioned labor force is about 4,000, most of which was transferred to GWSSB from PHES on April 1, 1981. There are 1,744 technical, 614 administrative, and 713 financial staff. Of the technical  -17- staff, 21 are post graduates, 326 graduates, and 333 have diplomas or certificates. 3.06 The mass transfer of staff from PHES to GWSSB was made under deputation. The complete absorption of PHES by GWSSB would have been a more desirable move as it would have been irreversible. However, it is understood that the deputation of staff is a necessary transitional stage which would lead to eventual permanent absorption. Appropriate staffing is vital to the proper establishment of the institution and, in particular, to the success of the current project. The present arrangement is acceptable to the Association provided a satisfactory project team is maintained by GWSSB to implement the project. Assurances were obtained during negotiations that such a team has already been appointed by GWSSB and that its structure would continue to be acceptable to the Association throughout the implementation period. 3.07 Although GWSSB by the recent transfer of staff has received the full benefit of the technical expertise of the former PHES, the greatly increased investment program of the Decade and the added responsibilities of operation and maintenance in the rural regions (para. 3.10) will necessitate major reorganization and further strengthening of its staff. GWSSB is weak in the field of accounting and financial management. There are also some weaknesses on the technical side. The major works of the proposed project, involving competitive bidding on a national and international scale, will require a degree of specialized expertise which the present staff does not possess. Initially, GWSSB will have to rely largely on consulting services to overcome these technical deficiencies; consultants have been appointed to study the improvement of management and financial systems. Ahmedabad Municipal Corporation (AMC) 3.08 AMC, one of the Municipal Corporations of Gujarat, is an autonomous body established under the Bombay Municipal Corporation Act, 1949. AMC is outside the jurisdiction of GWSSB, and can act independently. It has a competent and forward looking administration with a long-standing reputation within the State of providing good public service. In the present organizational structure, the water supply and sewerage departments are separate entities within the engineering division of the Municipal Corporation, and as such come under the immediate direction of the City Engineer who is responsible to the Deputy Municipal Commissioner. (See Organizational Chart Annex 9). The departments, however, are not self-contained units. For instance, sector finance, including billing and collection, is undertaken by the Accounts Branch of the Engineering Division. Anticipating the greater responsibilities which expansion of the water supply and sewerage system will entail, AMC has appointed consultants to advise them on management reorganization of the sector, and to examine in particular the advisability of granting greater autonomy to the water and sewerage unit both in its technical and financial operations. During negotiations, it was agreed that AMC would furnish the findings of this study to the Association  -18- by June 30, 1983, and would implement such recommendations as are agreed between AMC and the Association in accordance with a timetable satisfactory to the Association. 3.09 The total work force of AMC in the water supply and sewerage sector is currently about 1,300 of which 50 are qualified engineers and accountants. There is a nucleus of capable engineering staff at a high level, who have a wide experience in large capital works programs. It is well appreciated, however, that the work load presented by the proposed project would be too heavy a burden for the present staff who are on day-to-day operational duties. Accordingly, consultant services will be used. Operation and Maintenance 3.10 Beneficiary urban authorities whose components are to be implemented by GWSSB will be required to operate and maintain their respective water supply and sewerage systems and accordingly, after commissioning, these systems will be handed over by GWSSB to the respective authorities. A high level committee appointed by GOG to examine rural water policy has recently made recommendations that new systems for problem villages both individual as well as those forming part of regional schemes would be operated and maintained by GWSSB on a permanent basis. Those panchayats of problem villages, the supply systems of which are already in operation, would continue to operate and maintain their own systems but their staff would be paid and supervised by GWSSB. These recommendations have since received GOG official approval and have been made subject to a new Government Resolution. Assurances were received during negotiations that GWSSB would operate regional water supply schemes and ensure that the local operators of individual schemes are adequately trained. Manpower and Training 3.11 A detailed summary of manpower distribution by main occupational groupings, including staff vacancies at the time of appraisal and projected recruitment rates over the period 1982-1990 is given in Annex 10. 3.12 Currently, no provision exists in Gujarat for organized training programs relating to water engineering or the water sciences. The principal source of training is the annual program of national courses arranged and provided by the Central Public Health Engineering and Environmental Organization (CPHEEO) and to a lesser extent by the National Environmental Research Institute. In addition to one-year programs in post graduate and diploma level public health engineering, a variety of useful, but ad-hoc, short courses on operational subjects are provided by these agencies at different locations each year. Inevitably, the number of students from a particular state water institution is extremely small, but the course content is of a generalized nature, and the bias of the program is heavily oriented to the more specialized needs of managerial and professional level.  -19- 3.13 Recognizing the inadequacy of existing trainine ar.angements, GWSSB has identified the need for the Board to establish a permanent training unit. This has been included in the Organization and Management Study undertaken by consultants. GWSSB proposes to include in the project a training component designed not only to assist in establishing the Board's training unit, but also to assist in the systematic development of a compre;-ensive scheme of training and related education geared to the needs of the Gujarat water supply and sewerage sector as a whole. 3.14 Because some in-country training provision, albeit limited, is currently available for senior staff, it was agreed that initially the main thrust of the training program to be designed and implemented under the project would be directed at the training needs of junior and sub-professional staff, particularly those concerned with the operation and maintenance of sewerage and sewage treatment installations. The training needs of operators required for the regional rural and village subprojects would also be addressed. 3.15 The project training component, on which agreement was reached during negotiations, would consist of the following elements: (a) A detailed study by consultants of the existing and projected manpower and training needs of the Gujarat State water supply and sewerage sector. Consultants for this study will be appointed by October 1, 1982. The study will formulate a training program which will be furnished to the Association for its approval by June 30, 1983. The approved program will be initiated by January 1, 1984. (b) A broad forecast of the sector's in-service training requirements (Annex 11) indicates an annual training load of about 2,000 manweeks. This commitment cannot be met solely through on-the-job training. The scope and capacity of a GWSSB operated, off-the-job training facility would be evaluated under the training study and financial provision for the construction of a first phase training facility will be included in the training component. (c) Based on the study described in (a) above, a technical assistance component would be provided to assist GWSSB in selecting and developing a small cadre of training staff, and assist the training staff to commission the sector training facility and prepare and introduce pilot priority in-house training programs.  -20- (d) The GWSSB training program will include provision for meeting the training needs associated with the low-cost sanitation subproject. Training will be provided at three levels, as follows: (i) orientation training for Municipal members and Municipal Officers of the 15 subproject towns; (ii) subproject supervision training for GWSSB deputy and junior engineers located at appropriate construction circles; and (iii) a licensing course for small contractors interested in constructing latrines under this subproject. (e) Under the direction of the GWSSB Training Unit, a program will be prepared for the training of regional rural and village water supply operators in operations and preventive maintenance duties and sanitation/hygiene practices. (f) A training attachment and fellowship program for senior and middle level staff will be drawn up by the GWSSB Training Steering Committee. The program will give priority to arranging short, intensive training attachments to appropriate water utilities. Project Implementation Arrangements 3.16 AMC would be responsible for the implementation of its own sewerage project, while GWSSB would be responsible for the implementation of all the other project components. GWSSB is essentially an implementation agency, which, after completion of projects, hands them over to the beneficiary authorities for operation. The sewerage component of Rajkot Municipal Corporation (RMC) will also be implemented by GWSSB under the GWSSB project agreement. RMC, as a Municipal Corporation, is empowered to execute its own project, but, as it does not have adequate staffing for this purpose, it has elected to transfer this responsibility to GWSSB. Prior to negotiations RMC and GWSSB executed a satisfactory agreement on their working relationship for the implementation of the RMC component of the project.  -21- IV. THE PROJECT 4.01 The primary objectives of the present project are the following: (i) To bring water to rural areas where water is scarce or where existing water sources are unfit for human consumption. (ii) To improve or extend water supply services in rapidly developing urban centers. (iii) To extend and upgrade sewerage systems in densely populated areas in major urban communities. (iv) To provide low-cost sanitation in medium-sized towns which are unable to afford water-borne sewerage. (v) To strengthen the institutional framework of the sector and to establish training facilities for water supply and sewerage personnel at all levels within the sector. Project Priorities and Selection Criteria 4.02 In identifying a suitable project package, the technical and administrative capability of the newly formed Board (GWSSB) and the manageability of the number of sub-projects were factors of primary importance. The priority placed by GOG on rural water supply development merited the inclusion of this major component. For urban water supply, optimal coverage was achieved by concentrating the investments in the major population centers. Financial constraints and the question of affordability dictated a drastic reduction in the number of water-borne sewerage schemes, which were therefore limited to the major towns. To compensate for this and at the same time maintain the overall project goals, a low-cost sanitation component for a number of middle-sized towns was introduced. It was considered premature to make significant investment in rural sanitation when there existed a greater urgency to meet sanitation needs in the urban centers. Prior to negotiations, resolutions were passed by participating local authorities acknowledging their obligations under the project, including the repayment of capital and interest on their loans. Project Design 4.03 The preliminary engineering studies have examined all alternative proposals with the objective of establishing least-cost solutions. Due to the distinctive and well defined hydrogeological characteristics of the region, there is little flexibility in the choice of water sources. In rocky areas, expensive impounding of non-perennial rivers is generally the only  -22- means of providing a reliable supply, and the three urban centers which are located in this area have been able to obtain allocations of water from irrigation schemes currently nearing completion. Ground water reserves in the alluvial areas are more extensive, and alternative well locations were considered in conjunction with the configuration of the distribution network to arrive at the most economic solution. Hydrogeological field Investigations involving the test drilling of wells have already started so that final designs may proceed with the assurance that the location and adequacy of the wells are certain. 4.04 Alternative forms of sewage treatment were compared in the preliminary studies, and oxidation ponds of various types were selected as being most appropriate because of their ease of operation and maintenance, simplicity of construction, as well as overall economy. For the larger cities of Ahmedabad and Rajkot the size of population and restricted availability of suitable land have led to the selection of the more compact, mechanically aerated ponds, while for the smaller communities conventional facultative ponds present the most satisfactory solution. Water filtration plants will be of the rapid gravity type, designed for conventional loadings for the design period, but with sufficient hydraulic capacity to permit expansion at a later date using advanced technology. To minimize the use of mechanical equipment requiring careful maintenance, declining rate operation of filters will be specified. Project Description 4.05 The principal project elements are illustrated in Maps IBRD 15997, 15998, and 15999. A detailed description of all project elements is included in Annex 12, and summarized below: Urban Water Supply a) Bhavnagar - A new water supply of 60 mld from Shetrunji irrigation reservoir, the completion of the transmission main from the reservoir to the town, the construction of new treatment facilities at Citra, extensions to the existing treatment plant and distribution system. b) Jamnagar - A new water supply of 25 mld from Und-l 1/ irrigation. reservoir, the construction of an intake and pumping station at the reservoir, a 25 km transmission pipeline to convey water to Jamnagar, extensions to the distribution system, and new treatment facilities. c) Godhra - A new water supply of 10.65 mld from the Pan-Am 1/ irrigation canal, the construction of an intake and pumping station at Betia 1/ Partly financed under the ongoing IDA Gujarat Medium Irrigation Project (Credit No. 808-IN).  -23- village, a transmission main to Kanelao tank, a treatment plant and booster station, a subsidiary intake and pump house on the Meshri river, and one elevated service reservoir. d) Nadiad - The construction of nine new tube-wells yielding 16.8 mld and the installation of new pumping equipment on three existing tube wcll,: '-e booster station, transmission mains, service reservoirs, and extensions to the existing distribution system. e) Anand - The construction of three new tube-wells yielding 5.28 mld, transmission mains, service reservoirs, and extensions to the existing distribution system. Urban Sewerage f) Ahmedabad MC - Construction of two new peripheral trunk sewers, one on either side of the Sabarmati River, to relieve the overloading of the existing system. The sewers will terminate at two new pumping stations at Pirana (621 mld peak capacity) and one at Vasna (795 mld peak capacity). Sewage will be pumped from these stations to two treatment plants at Pirana and Vasna (227 mld and 155 mld average flow capacity), consisting of aerated lagoons, with final disposal to the Sabarmati River. g) Rajkot MC - Construction of a new sewerage system for the congested city center, with eight zonal lift stations, and one terminal pumping station to convey sewage to a single treatment plant consisting of aerated lagoons located near the northern city limits on the west bank of the Aji River with final disposal to land irrigation. h) Nadiad, Anand, and Savarkundla - Extensions to the existing sewerage systems in the case of Nadiad and Anand, and a complete new system for Savarkundla. All three projects will involve new, or reconstructed zonal lift stations and final pumping stations to convey sewage to new oxidation ponds of the faculative type, with final disposal to land irrigation. Rural Water Supply i) Regional Village Water Supply - Provision of new water supplies to 255 villages divided into seven regional groups, each group being supplied from one source. In all schemes, water supply is provided from multiple tube-well installations. j) Individual Village Water Supply - Water supply for 111 "no source" (problem) villages, each supplied from its own individual source. Fifty-three villages will be supplied from tube-wells, and fifty-eight from dug (open) wells in hard rock.  -24- Low-Cost Sanitatioi. k) Low-cost sanitation for fifteen middle-sized towns identified in the UNDP Global Project. Approximately 26,800 pour flush and additional communal facilities with 440 seats are proposed. Common Services 1) Workshops, stores, vehicles; equipment for sewer cleaning, leak detection, and laboratories. Cost Estimates 4.06 The estimated cost of the total project package is Rs 1,375 million (US$162.0 million) including contingencies, customs duties and taxes. The estimated costs of the project subdivided into the principal features are summarized in Table 4.1, and the costs of the respective projects of AMC and GWSSB are shown in Annexes 13 to 15. 4.07 Civil works costs are based on consultants' estimates of work for which preliminary designs have been completed. Materials and equipment cost estimates are based on information from Indian and foreign manufacturers and suppliers. Physical contingencies of 10% have been allowed for. Price contingencies for both local and foreign costs have been projected as follows: Local Foreign 1983 8.5% 8.5% 1984-86 7.5% 7.5% 1987-90 6% 6% Financing 4.08 An IDA Credit of US$72.0 million is proposed; this is about 50% of the approximate project cost of US$162.0 million excluding customs duties and taxes and those capital contributions to irrigation projects already being financed by another IDA Credit. Retroactive Financing 4.09 Some of the consultant services (basically those not yet contracted at the time of appraisal) are proposed for retroactive financing. The project provides for an estimated 1300 man-months. This will include services for the management study for RMC (para 4.11) as well as for the detailed engineering design and construction supervision. The training component will also involve some consultancy services for a preliminary study, and the costs of this study have been included in the overall training  -25- Table 4.1: SUMMARY OF ESTIMATED PROJECT COSTS % of Total Local Foreign Total Local Foreign Total ?roject Cost LRBAN AREAS ----US$ Millioe7-- ---Rs Million---- Water Su/pply Equivalent-' 4/ Civil Works 8.455 - 8.455 71.87 - 71.871 4.89 Equipment 2.641 5.137 7.778 22.45 43.67 66.12 4.54 Subtotal 11.096 5.137 16.233 94.32 43.67 137.99 9.43 1/ Sewerage- Civil Works 38.053 - 38.053 323.45 - 323.45 22.01 Equipment 9.516 5.768 15.284 80.89 49.03 129.92 8.84 Subtotal 47.569 5.768 53.337 404.34 49.03 453.37 30.85 Low-Cost Sanitation-/ Labor 1.605 - 1.605 13.64 - 13.64 1.00 Material 5.454 - 5.454 46.36 - 46.36 3.41 Subtotal 7.059 - 7.059 60.00 60.00 4.41 RURAL AREAS Wtrup Civil Works 7.925 - 7.925 67.36 - 67.36 4.58 Material & Equipment 9.734 0.612 10.346 82.74 5.21 87.95 5.90 Subtotal 17.659 0.612 18.271 150.10 5.21 155.31 10.57 COMMON SERVICES Stores, Workshops and Depots 0.353 - 0.353 3.00 - 3.00 0.22 Vehicles and Misc. Equipment 0.470 - 0.470 4.00 - 4.00 0.31 Subtotal 0.823 - 0.823 7.00 7.00 0.53 OTHERS Hydrological Investgns. 0.135 - 0.135 1.15 - 1.15 0.08 Engineering: Consultants 2.174 - 2.174 18.48 - 18.48 1.36 GWSSB and AMC 5/ 10.511 - 10.511 89.35 - 89.35 6.57 Training 0.729 0.176 0.951 6.20 1.50 7.70 0.57 Land Acquisition 0.768 - 0.768 6.53 - 6.53 0.48 Loan Fund-House Conns_ 2.352 - 2.352 20.00 - 20.00 1.47 Subtotal 16.669 0.176 16.844 141.71 1.50 143.21 10.53 TAXES & CUSTOM DLTI3/ Subtotal 13.139 - 13.139 111.68 - 111.68 5.59 Total before Conting. 114.014 11.693 125.707 969.15 99.41 1068.560 71.91 CONTINGENCIES Physical 8.176 1.532 9.708 69.500 13.020 82.520 6.09 Price 22.540 3.858 26.398 191.558 32.778 224.336 22.00 Subtotal 30.716 5.390 36.06 261.058 45.798 306.8556 28.09 Total Project Cost 144.730 17.083 161.813- 230.208 145.208 1375.416 100.00 1/ Includes sewerage proiects Alhmedabad and Rajkot MCs. 2/ Exchange Rate Applied US$l = Rs 8.50 3/ Includes contingencies. 4/ Includes contributions to IDA financed irrigation projects amounting to US$4.0 million (See para 4.05). 5/ Engineering and Administration charges.  -26 costs. It is estimated that the cost of all these consulting services will not exceed US$2.5 million equivalent, a portion of which ($2.35 million) is proposed for retroactive financing effective from August 15, 1981, which was the target date for signature of the contracts. Retroactive financing is also proposed for hydro-geological investigations started before the monsoon period in February 1981 and currently in progress. These investigations will not involve a cost of more than US$150,000 equivalent. The total amount proposed for retroactive financing is US$2.50 million. Engineering and Management Consultants 4.10 GWSSB and AMC will implement their projects with assistance in detailed engineering design and construction supervision from the engineering consultants already employed by GWSSB, AMC, and RMC for the feasibility studies. As GWSSB will implement the RMC component, the consultants formerly retained by RMC will now be employed by GWSSB under a revised agreement. Since the completion of detailed design is a critical item in the project schedule, satisfactory contracts for these consulting services were signed prior to negotiations. 4.11 Consultants have already been appointed by GWSSB and the AMC water supply and sewerage department for: (i) management, organization and staffing, and the development and implementation of project monitoring systems and administrative procedures; (ii) establishment and implementation of commercial accounting and financial management information systems; and (iii) development of tariff structures and levels based on appropriate socio-economic research. These services are not being financed under this project. In addition, an organization and management study will be carried out for RMC by consultants appointed by GWSSB. GWSSB, with the help of specialist training consultants will also develop as part of tne project a comprehensive scheme of training and education and establish the necessary training facilities. These services, together with detailed engineering design, will be financed by IDA under this project. GWSSB will be required to appoint consultants for the RMC Organization and Management study and for the training study no later than October 1, 1982. After completion of the Organization and Management study, GWSSB shall be required to furnish the Association for its review the findings of the study and, in accordance with a timetable acceptable to the Association, implement such recommendations of the study as are agreed between GWSSB, RMC, and the Association.  -27- Implementation Schedule 4.12 Both GWSSB and AMC plan to implement the project in a four and a half year period. AMC and their consultants commenced work on detailed design in late 1981, while GWSSB, preparatory to the engagement of consultants (para 4.10), have been engaged in those preliminary aspects of detailed design which have been assigned specifically to the GWSSB project team. The work is estimated to terminate at the end of 1986, by which time all the works would be in operation. It is anticipated that the rural components will be completed about one year before the remainder of the project. The preliminary engineering already accomplished has been sufficiently detailed to define in broad outline the principal elements of the various projects, and with minimal refinement the material and equipment requirements may be specified within a relatively short period. Although detailed design may continue throughout the first project year, preparation of tender documents should be sufficiently well prepared to permit the bidding and award of major material and equipment contracts in the third quarter of 1982. Furthermore, by the end of 1982, most of the larger civil works contracts would have been awarded. Pert charts have been prepared for all components of the project and, as a typical example, the chart for AMC is included in Annex 16. Simplified bar charts showing major activities for all project components are included in Annex 17. The schedules are realistic, although completion of the works within this time frame will require careful planning and good management. Procurement 4.13 All contracts for equipment and materials would be awarded under international competitive bidding procedures with the exception of the following: contracts under US$150,000; contracts involving the supply of fragile water supply or sewer pipes of stoneware, asbestos cement, or concrete fabrication which are difficult to transport and which are readily available locally. The latter items would be procured under local bidding procedures acceptable to the Association. 4.14 Most of the civil works in this project would be carried out in a large number of relatively small contracts, which are widely dispersed throughout the project area, do not require special equipment or techniques, are labor intensive, and are traditionally carried out by registered contractors established in Gujarat or other parts of India. These works, which include water distribution mains, sewers, sewage pumping stations, and sewage treatment facilities, would not attract foreign bidders since it is clear that overseas firms could not successfully compete with local bidders for works of this type and size, and would therefore be subject to local competitive bidding.  -28- 4.15 In evaluating bids for equipment and materials, domestic manufacturers would be given a preferential margin equal to 15% of the c.i.f. costs of the competing imports, or the existing rate of customs duty, whichever is lower. Most of the contracts for equipment and materials are likely to be won by local contractors. 4.16 Estimated requirements of materials and equipment for GWSSB and AMC projects, together with tentative contract values are shown in Annexes 18 and 19. All bidding packages estimated to cost over US$150,000 equivalent, all bids for treatment plant and pumping equipment, and civil works contracts over US$500,000 equivalent, would be subject to IDA's prior review of procurement documentation resulting in a coverage of about 85% of the total estimated value of project costs. The balance of contracts would be subject to random post review by IDA after contract award. The consulting services under the project will be engaged in accordance with the Bank's guidelines for the use of consultants (August 1981). Disbursement 4.17 The proceeds of the credit would be disbursed over a five-year period. An estimated disbursement schedule is shown in Annex 20. Disbursements would be made as follows: (a) Equipment and material procured 100% of foreign under international bidding. expenditures or 100% (US$17.1 million) of local expenditures ex-factory. (b) Equipment and material procured 40% of ex-factory under local bidding, and costs and 40% of civil works. (US$45.0 million) civil works. (c) Consulting services, training 100% of costs. and hydrogeological investigations. (US$3.5 million) (d) Loan Fund for house connections 100% of amount (US$2.40 million) disbursed. (e) Unallocated (US$4.0 million) No disbursements would be made against administrative costs or against contributions to projects financed under another IDA credit. Disbursements for small civil works contracts for about Rs300,000 or less, for equipment and material contracts for about Rs150,000 or less, and for amounts disbursed under the house connections loan fund, will be made against statements of expenditures, certified by the Project Director (or the appropriate officer responsible for the disbursement of the house connections loan fund).  -29- Supporting documentation for items disbursed against statements of expenditures will be retained at one central location and made available for IDA staff for review on request. The expenditures disbursed under statements of expenditures, will be audited annually by independent auditors, acceptable to the Association. About $2,350,000 will be provided for disbursements in respect of corLsultants services for payments made after August 15, 1981; and up to $150,000 on account of hydrogeological investigations for payments made after February 1, 1981 (para 4.09). 4.18 The estimated pattern of disbursement compares reasonably with the typical disbursement profile for projects of this type, although the period ;of disbursement is somewhat shorter. Steps have been taken to prevent delays in project execution by use of retroactive financing for critical activities in the preparatory stage. Consultants have already been appointed for detailed design and are working on preparation of bid documents for those items of equipment and materials which involve long delivery times. This should make it possible to award critical contracts at an early stage. Hydrogeological investigations to test-prove ground water sources are also well advanced so that detailed designs may proceed with the assurance that the location and adequacy of sources are certain. The decision to use the services of consultants, experienced in the planning and execution of major projects and in the supervision of construction, will also help to maintain progress in accordance with the project implementation schedule. Land Acquisition 4.19 An assessment has been made of the land which has to be acquired under the project, and an estimated cost has been included in the overall project cost. It is anticipated that little land would be required for works to be undertaken during the first year of implementation. Existing legislation is adequate for the acquisition of land required. During negotiations, assurances were obtained from GOG that all necessary action to acquire land needed for the project will be taken in accordance with the project schedule. Property and Household Connections to Sewerage Systems 4.20 In the past, lower income groups have been discouraged from connecting to the sewerage system because of high connection fees and the lack of adequate household plumbing facilities. This has given local bodies financial problems through loss of revenue and operational problems by the siltation of the system on account of low flows. Under the present project, it is proposed that by-laws be enacted or regulations passed by beneficiary local bodies to ensure that property owners connect their properties to the sewerage systems where a sewer is provided within a specified distance of a property. Owners in this category failing to connect, will be connected to the system by the local authority who will then recover the cost of connection from the property owner. It is further proposed that the cost of  -30- connecting properties to sewers (property connections) will form part of the construction costs of the system, and as such will be borne by the local authorities and recovered as part of the sewerage charges. Furthermore, a loan fund will be included as a separate item in the project for the purpose of making soft loans available to property owners of the lower income group to ensure that they can meet the expense of improving existing sanitary facilities within the household and making connections to the sewerage system within their property (household connections). These loans would be made available to householders at the same interest rate as those made for loans for low-cost sanitation by GOG, viz. 6% (see para 4.27) but the repayment of loan and interest would be made in 60 equal monthly payments. The terms of disbursement of the loan fund based on appropriate ability to pay criteria is the subject of a GOG resolution dated March 29, 1982. It was agreed during negotiations that all pertinent regulations and by-laws will be made available to the Association by June 30, 1983. Metering 4.21 Metering of domestic consumption is virtually non-existent in the project area. In the cities of Jamnagar and Bhavnagar, an attempt at domestic metering was made in the past when approximately 10% of domestic connections in these cities were provided with meters. A recent inspection of these meters has indicated that almost all are now out of working order. On the other hand, those industrial and commercial consumers connected to the system are being metered without exception throughout the project area, and on this limited scale the meters have been kept in reasonable working order. In the proposed project, the practice of metering industrial and commercial users will be continued; however, in view of past experience, domestic metering should be approached with caution. GWSSB and AMC propose to study the feasibility of introducing metering in the project area. The findings of these studies would form a good basis for re-examining the possibility of gradually re-introducing domestic metering on a state-wide scale. In the meantime, the use of orificed connections to reduce waste and provide a basis for more flexible tariff structure for the low-income group is being considered as a more viable immediate alternative. Both GWSSB and AMC have agreed during negotiations to complete their studies for development of a policy for domestic metering in the project area by December 31, 1983. Distribution System Maintenance 4.22 Under the present conditions of low pressure and intermittent supply, distribution losses are estimated to be about 20% of the flow reaching the distribution system. These losses might increase to about 50% under normal system pressures and with continuous supply. The system losses could be substantially reduced by proper maintenance of the systems. GWSSB proposes to establish a leak-detection unit, equipped and trained under the present project, to detect and reduce unaccounted for water in the water supply systems, and will continue leakage surveys of distribution systems on behalf  -31- of local authorities after transfer of the systems to local authority ownership, as well as providing this service at a later date to the whole sector as required. It has been agreed during negotiations that this leak-detection unit will be fully equipped, trained, and operatonal by June 1, 1983. By this date also GWSSB will be expected to have prepared a leak detection program for review with IDA. Thereafter, this program will be implemented and its progress reviewed with IDA at quarterly intervals. Low-Cost Sanitation 4.23 Given the present backlog of service in the State, the objective of providing 80% waste disposal coverage in urban areas by 1990 will involve a massive investment both aL the National and State levels. It is alread-;- apparent that achieving this target using water-borne sewerage at an average per capita investment of about twice the average annual per capita income is not viable. Furthermore, past experience has shown that, even when built at considerable expense to the local authority, water-borne sewerage systems in India have been grossly underutilized because the high costs involved in household connections and the improvement to household plumbing have been beyond the means of the average householder. The UNDP Global Project, executed by the World Bank, was established with the objective of assisting governments in achieving Decade goals, employing low-cost water supply and sanitation techniques. Wishing to avail themselves of this service, GOI requested assistance in preparing low-cost waterseal latrine feasibility studies in seven States. Gujarat State was one of these, and subsequently 15 medium-size towns were nominated for study. 4.24 In the course of project preparation, a number of special studies were undertaken, including the evaluation of the ongoing latrine conversion programs, an assessment of pollution hazards to groundwater and water distribution systems, optimization of alternative technical solutions, and the social implications of scavengers rendered redundant by new practices. The feasibility studies were completed prior to project appraisal; least cost solutions were presented and the suitability of using these in the project areas was established. The populations in the target towns range between 9,000 and 120,000 totalling 612,000 (Estimated 1980). At present, about two-thirds of the-population have no house latrine facilities. The objective of the first stage of the program (1982-86) is to reduce the backlog by half, at which stage overall coverage will be 61%, of which 95% will have individual household latrines, and the remainder community latrines. Existing and projected service levels are shown in Annex 4. 4.25 The majority of latrines to be provided under the project will be pour-flush, waterseal latrines discharging into underground leaching pits. There are certain areas within the project towns where other alternatives should be considered. These areas, generally where soil conditions are poor or where there is a danger of contamination of drinking water sources, will be investigated during the first stage program. However, for maximum impact the project will concentrate in the first stage on the widespread application of a single technology.  -32- 4.26 GWSSB possess the technical infrastructure necessary to implement the program, and has the power to recover loan charges from local bodies. It proposes to establish a project cell at its headquarters to provide overall management of the low-cost sanitation component, and it has already the necessary technical staff in almost all the project towns. Agreement was reached during negotiations that this cell will be fully formed and operational by January 1, 1983. 4.27 According to a recent GOG resolution relating to low-cost sanitation, Harijans will receive 100% grant of the estimated cost of conversion or construction. GOG will provide 75% grant, and the remainder will be provided by the local authority. A minimum of 30% of the total program cost must be devoted to this section of the community. For the non-Harijan community, the households will have to contribute 20% of the cost from their own resources, while GOG will provide 50% grant, and the balance of 30% will be provided by the local authority. For certain of the low-income groups, this 20% initial payment may prove to be burdensome and assistance in the form of a soft loan or grant will be necessary for such groups. Consequently GOG, on October 6, 1981 passed a further resolution making such loans available to non-Harijan beneficiaries with monthly incomes of less than Rs 500 on the basis of 6% interest with loan and interest repayable in 24 equal monthly payments. In order to regulate the construction of low-cost sanitation units and to confine their use to areas where pollution of water sources would not be a problem, the passing of by-laws satisfactory to the Association based to a large degree on the model included in the UNDP Global Project feasibility report would be a condition of disbursement of funds for each participating town included in this component of the project. 1/ V. FINANCIAL ASPECTS Past Financial Performance 5.01 Gujarat has followed the practice, in urban areas, of covering the major portion of the costs of its water supply and sewerage sector from funds obtained from other revenue sources within the urban area. As a result, the direct water supply and sewerage tariffs are, presently, far below the level required to cover the sector's recurring costs including debt servicing (Annex 21). Estimated operating results for the Project Cities for the year ended March 31, 1981 were as follows: 1/ During negotiations, it was agreed that if this disbursement condition was met prior to the signing of the Development Credit Agreement it would be deleted.  -33- Water Supply and Sewerage Sub-project cities Ahmedabad Rajkot Anand Nadiad Savarkundla (RsO000) Direct Revenues 40,589 2,950 794 1,402 125 Operating Expenses-other than depreciation 51,715 4,311 1,103 2,603 509 Depreciation 10,460 1,955 387 871 93 Total Operating Expenses 62,175 6,266 1,490 3,474 602 Operating Loss (21,586) (3,316) (696) (2,072) (477) Interest Expense 18,897 3,039 93 230 48 Net Loss (40,483) (6,355) (789) (2,302) (525) Water Supply Sub-project cities Bhavnagar Godhra Jamnagar (Rs'000) Direct Revenues 3,390 511 1,538 Operating Expenses other than depreciation 3,183 800 2,773 Depreciation 380 61 806 Total Operating Expenses 3,563 861 3,579 Operating Loss (173) (350) (2,041) Interest Expense 5,395 94 736 Net Loss (5,568) (444) (2,777) 5.02 Municipal bodies in Gujarat have traditionally maintained a Government type cash accounting system rather than the commercial type accrual accounts which more correctly match revenues and expenses of each accounting period. In Annex 22, these cash accounts have been restated in a commercial mode for all Project Cities. During none of the fiscal years 1977/78 through 1979/81, without giving consideration to funds provided from indirect revenue sources, has any of the Project Cities been able to record an operating profit on a commercial accounting basis. The reliance on cross-sector subsidy has kept the direct tariffs extremely low and large increases will be required to make the water supply and sewerage sector self-sufficient. The following are the percentage increases which would have been required in April 1, 1981, to produce from direct source all the funds needed to cover the cash outlays required for the operation of the sector for the FY1981/82:  -34- Ahmedabad 132% Rajkot 239% Anandl/ 32% Bhavnagar 250% Godhra 104% Jamnagar 235% Nadiad 129% Savarkundla 425% As shown in Annex 22, with the provision of new facilities proposed in the project, the magnitude of the funds required to cover the costs is expected to increase substantially. 5.03 For regional rural water supply schemes GOG established the practice of limiting the contribution by local authorities for users of standpipe services toward the recurring costs of operating and maintaining them to Rs 3 per capita per year. The remainder of the expenses are covered by GOG subsidy. However, for individual rural schemes, which in some cases are as complicated and as expensive to operate and maintain as the regional schemes, GOG required the village panchayats to bear all costs of operation and maintaining the systems. GOG is aware of the inconsistency of these practices as well as of the other problems relating to the physical operation and maintenance of rural schemes and, to alleviate these problems has agreed to initiate a new practice which would raise funds for rural water supply in problem villages, both regional and individual, by doubling the local contribution from Rs 3 to 6 per capita per annum and by making available from the ten percent surcharge on sales taxes, all additional funds required to meet the balance of operating and maintenance expenses. During negotiations agreement was reached that GOG will establish this practice upon completion of construction in the project's regional and individual water supply schemes. Present Financial Position 5.04 The financial positions of the Project Cities at March 31, 1981, are shown in Annex 22. These positions are weak, as demonstrated by the following financial ratios; these enterprises can only operate because, as municipal departments, they can resort to financial resources of other departments to cover their shortfalls: 1/ Anand increased its water supply tariff effective April 1, 1981.  -35- Current Debt Service Ratio Coverage Ahmedabad .61 Neg Rajkot .37 Neg Anand 1.34 Neg Bhavnagar .19 .02 Godhra 1.34 Neg Jamnagar .31 Neg Nadiad 1.20 Neg Savarkund la .80 Neg Tariffs 5.05 Gujarat's practice of subsidization of its urban water supply and sewerage sector from other revenue sources is not compatible with the objective of developing viable public utility entities. Preferably, all funds needed for the operations and maintenance of the urban water supply and sewerage facilities, and for the servicing of related debt should be obtained from the users of the services (present tariff is shown in Annex 21). GOG agrees with this concept but is adverse to a precipitous change from its traditional policy of subsidization without a corresponding reduction in those taxes which provide the balance of the required funds. It believes that such a tax balancing program would be difficult to implement over the short term. However, COG was receptive to a longer scale program and, during negotiations agreed to one for each Project City which would make the urban water supply and sewerage sector viable, which included the following: (i) to increase the direct tariffs of the sector effective April 1, 1983 so that revenues from these sources will be, at a minimum, doubled. (ii) to increase revenues and/or reduce operating expenses to ensure that, by March 31, 1988, the expenses of operations and maintenance, including depreciation, are covered by user charges and special taxes imposed and collected from the users of the services. The schedule of steps toward this goal is as follows:  -36- Percent Coverage of O&M Costs and Depreciation through Direct Charges and Taxes FY1985/86 FY1987/88 Ahmedabad, Anand, Bhavnagar, Godhra, Jamnagar and Nadiad 85 100 Raikot 75 100 Savarkundla 65 100 (iii) thereafter, to increase revenues and/or reduce operating expenses to ensure, by March 31, 1993, all costs of operations and maintenance, excluding depreciation, and debt service are covered by user charges and special taxes imposed and collected from the users of the service. The schedule of steps toward this goal will be provided to the Association by August 1, 1982. (iv) until revenues derived from user charges and special taxes cover all costs of operation and maintenance, excluding depreciation, and debt service, funds required to meet the shortfall will be allocated from other specific revenue sources. (v) tariff studies recently completed and now under review will develop the structure necessary to produce the above goals. The Association will provide GOG with its comments prior to initiation of tariffs based on the findings of these studies. 5.06 As a result of the above tariff program, the estimated operating incomes for the Project Cities for the fiscal year 1983/84, without giving consideration to the planned subsidy from other sources, are as follows: Operating Income (Loss) Water Supply Sewerage Total (Rs'000) Ahmedabad 889 24,531 25,420 Rajkot (838) (838) Anand 579 10 589 Bhavnagar (4,102) (4,102) Godhra (90) (90) Jamnagar (1,275) (1,27'5) Nadiad (1,073) (1,545) Savarkundla (531) (531)  -37- Although these results, except for Ahmedabad and Anand, are not as favorable as might be desired, they will be augmented by using portions of other revenue sources in accordance with existing Gujarat practices (para 5.05). Ahmedabad's and Anand's estimated operating results for the fiscal year 1983/84 are very acceptable with rates of return on average net fixed assets in operations of about 12% and 5%, respectively. Gujarat valued the assets of all Project Cities at depreciated current cost during the establishment of the assets valuation as of March 31, 1981. 5.07 Notwithstanding the above commitments which will apply as a general rule in the Project Cities, Jamnagar plans to increase its water tariffs by three or four times in the immediate future. This increase, however, has not been approved by GOG or the local government and has therefore not been reflected in the financial projections (Annex 22-6). 5.08 Both Rajkot and Savarkundla, which will have entirely new sewerage systems implemented under the project, have proposed to initiate a tariff concurrent with the commissioning of the system which will provide funds sufficient to cover costs of operations and maintenance, including depreciation of the sewerage system. 5.09 The programns for cost recovery in both the water supply and sewerage sectors of the Project Cities, as outlined above, appear to be attainable with the possible exception of Rajkot. In Rajkot the costs associated with the sewerage scheme are considerable and might lead to extremely high tariffs which, based on socio-economic findings, might not be acceptable. Rajkot has, with the assistance of consultants, made a review of its finances. The findings of this study was that Rajkot was an above average commercial-industrial city whose citizens have higher earnings than those of most other cities in Gujarat (see para 6.06). Thus Rajkot has additional resources which can be mobilized, as necessary, to meet the increased capital and operating costs of the new sewerage and expanded water supply systems. They have already, for the FY1982/83, initiated increased tax rates which will, in this year, produce Rs five million additional funds. GOG will also assist Rajkot by providing a 12 1/2% grant toward the construction costs of the sewerage system which will reduce borrowing requirements by about Rs 30.7 million. Based on the findings of the study and the actions of RMC and GOG, the Association accepts RMC's contention that the proposed sewerage project is affordable for RMC and, during negotiations, agreed to include this scheme in the IDA assisted project. Future Financial Performance 5.10 Annex 22 shows the projected operations of the Project Cities for the period FY1981/82 through FY1988/89. Assumptions used in these projections are shown in Annex 23. For Ahmedabad the water supply and sewerage operations for the fiscal year 1986/87 through 1988/89, when the new system is completely operative, produce positive rates of return on  -38- average net plant in operation (FY1986/87-5.10%, 1987/88-5.99%, 1988/89-8.63%). The other Project Cities will cover operating and maintenance costs, including depreciation, by FY1987/88. Complete coverage of all costs, operating and maintenance excluding depreciation, and debt service is anticipated in all Project Cities by FY1992/93. 5.11 Annex 24 and 25 show the financial projections for the rural water supply schemes. Funds for operating and maintaining these systems are provided through an annual Rs 6 per capita local contribution and the allocation from sales taxes (see para 5.03) are estimated to be adequate to cover all costs of the project villages.  -39- Financing Plan 5.12 The project financing plan is shown as follows: GOG Loansl/ GOG Local (Incl IDA Deben Grant Contri- Credit Proceeds) tures Tn-Aid bution Total (Rs rillion) Municipal Corp. Sewerage Ahmedabad 223.0 114.9 337.9 Rajkot 174.7 30.7 40.0 245.4 Urban Water Supply 159.5 62.3 32.4 254.2 Other Urban Sewerage 90.1 64.0 154.1 Regional Rural Water Supply 85.62/ 112.4 198.0 Individual Rural Water Supply 41.42/ 49.7 91.1 Low-Cost Sanitation 29.2 30.0 0.8 60.0 House Connection Loan Fund 20.03/ 20.0 Training 7.74/ 7.7 Miscellaneous Equipment 7.07 7.0 Total Construction Cost 838.2 114.9 349.1 73.2 1,375.4 Interest During Construction Capitalized 108.7 108.7 Total Cost 946.9 114.9 349.1 73.2 1,484.1 US$ Equivalent 111.7 13.6 41.2 8.6 175.1 1/ These funds will be reloaned or provided as Grant-in-aid as noted. 2/ These funds will be transferred to Rural Sector as Grant-In-Aid. 3/ These funds will be reloaned to GWSSB at an interest rate of 6% and a repayment period of five years without a grace period. 4/ These funds will be passed to GWSSB as a Grant-In-Aid.  -40- 5.13 In addition to the cost of construction detailed in paragraph 5.12, the Project Cities will have to provide funds to cover operating costs and debt service, which exceed the funds generated by direct tariffs, from other revenue sources and GOG will have to bear the operating cost of the Regional Rural Water Supply Schemes which exceed the funds collected from local contributions. During the project implementation period, FY1981/82 through FY1985/86, it is estimated that these requirements will amount to about Rs 385 million of local contributions in the Project Cities and over Rs 75 million of contributions to rural water supply schemes. 5.14 During the project construction, the fund requirement to support construction programs and operate and maintain the water supply and sewerage system (including the servicing of debt) will put a severe strain on the available sources of funds in some Project Cities and might possibly be greater than the funds which can reasonably be made available through direct tariffs, contributions from other revenue sources within the urban area and from all available non-Government sources of borrowing. It appears that the situation could occur in Rajkot, Bhavnagar, Godhra, and Nadiad. GOG is aware of the critical situation and, where necessary, will provide appropriate assistance probably in the form of additional government loans. 5.15 In order to assist IDA's review during the project construction period assurances were obtained in the agreed minutes of negotiation that each Project City will provide the Association with a copy of its approved budget as soon as it is available. As a further precaution, during negotiations, agreement was obtained that no Project City will further increase debt related to its water supply and sewerage sector without IDA agreement unless the net revenues from the sector cover the maximum debt service at least 1.3 times. Onlending Arrangements 5.16 GOG will provide funds for project implementation as loans or grants based on the classification of the locality requiring the funds in accordance with the following schedule: GOG GOG Local Classification Grant Loan Contribution Class A Municipality (pop 100,000 or over) Water 20% 65% 15% Sewerage 35% 65% Class B Municipality (pop 50,000 to 100,000) Water 50% 50% Sewerage 45% 55% Class C Municipality (pop less than 50,000) Sewerage 55% 45% Rural Problem Village Water 100%  -41- 5.17 The municipal corporations of Ahmedabad and Rajkot are not normally eligible for any grant funds. Therefore, for Ahmedabad, GOG will provide a loan equal to AMC's portion of the IDA proceeds plus half the remainder of construction costs. For Rajkot, GOG will provide a loan equal to the fund requirement for the project in excess of a Rs 40 million local contribution to construction and the Rs 30.7 million grant from COG (see para. 5.09). 5.18 Government loan funds, including the portion of the proceeds of the IDA credit, will be onlent to Ahmedabad (for its requirement) and to GWSSB (for the requirement of all other Project Cities) at an interest rate of 8 1/2% per annun for a period of nineteen years including a four year grace period. This interest rate approximates the average inflation rate during the projection period and should result in a modest positive position during most years. GWSSB will onlend the proceeds of the GOG loans to the Project Cities on the same terms and conditions. Interest accrued during the four year grace period will be added to the principal amount of the loan at the end of the grace period and will be subject to payment along with the other principal amoumts in equal installments of principal and interest over the fifteen year repayment period. GWSSB will administer the loans for all Project Cities except Ahmedabad which will be responsible for direct repayment of its loan to GOG. GWSSB-s Projected Loan Fund is shown as Annex 27. Based on the financial condition of the Project Cities, which are not particularly strong, these on-lending terms are appropriate. These arrangements were agreed during negotiations. 5.19 Subsidiary Loan Agreements will be negotiated between GWSSB and the Project Cities (except Ahmedabad which will have its own Project Agreement). These Agreements will reflect the on-lending terms and the other commitments made to IDA by GOG on behalf of the Project Cities. These agreements will be executed before any disbursement of IDA Credit funds will be made on the associated sub-project. Commercial Accounting Systems 5.20 The water supply and sewerage sector in the Project Cities has been hindered by the absence of an accounting system which segregated financial transactions relative to its operations from those of all other sectors of municipal government. The accounting system now utilized is the normal municipal cash accounting system which does not match revenues and expenses by accounting period or provide adequate financial information to management. As a result of these shortcomings, the management of the water supply and sewerage sector have developed little financial understanding or expertise. Management has not, in the past, prepared cash forecasts, or attempted to evaluate the adequacy of its tariffs or taxes relative to the sector. 5.21 Consultants have been employed (para 4.11) to design and install a commercial accounting and financial management system for GWSSB, the Project Cities, and the rural areas. These new systems will augment and modify the  -42- existing accounting systems in urban areas to obtain results desired from a commercial accounting system. For rural areas the system will be basic and, therefore, can be maintained with very limited effort. The system design has been completed; manuals have been prepared; and the bulk of the training completed. The systems will be made operative in all project areas effective April 1, 1982 so that financial results will be available for the fiscal year 1982-83. This schedule was reconfirmed during negotiations. Audit 5.22 The commercial accounts of the Project Cities and GWSSB will be subject to audit by independent auditors acceptable to IDA. The auditors will submit a commercial audit report including financial statements (Income Statement, Fund Flow Statement and Balance Sheet) and their certifications as to the representativeness and fairness of these statements. The first year to be audited will be the fiscal year 1982/83. The report will be submitted to IDA within nine months of the end of the fiscal year under audit. 5.23 In addition to the conventional audit report discussed in paragraph 5.22, the auditors will be required to certify that all funds provided to GOG through the IDA credit have been used on the project identified for IDA financing. Where IDA reimbursement has been requested through the Statement of Expenditure Practices, the auditors will be required to certify that files of supporting data are maintained at a central location and that these files fully support the requests for disbursement. Assurances that these audit practices will be followed were obtained during negotiations. Billing and Collection 5.24 Presently revenue billings both of usage charges and taxes are made on an annual basis. This practice results in an uneven inflow of funds tlaus making cash planning difficult. The Project Cities will keep the billing and collection practices under constant supervision and will shorten the billing period as the need to improve cash flow can justify the increase in staff needed for more frequent bill preparations. Where metered water usage is the basis for charges, the billing will be for a period consistent with the meter reading. As a measure of the adequacy of collections performance, the Project Cities will be required to maintain their fiscal year end unpaid customer billing balances at an amount which does not exceed 30% of the annual billings for these services in that fiscal year. Assurances that a collection program will be initiated which will insure this level of accounts receivable by March 31, 1986 was obtained during negotiations Insurance 5.25 GOG has followed the practice of restricting the coverage of risks by an external insurance agency to those related to vehicles. As the remainder of the water supply and sewerage property is the type which is not  -43- normally subject to damage other than by major disaster, GOG prefers to follow the practice followed in other government undertakings of self insurance with government providing funds for major losses if, and when, they occur. This concept is acceptable. House Connection Loan Fund 5.26 In order to ensure adequate utilization of the sewerage system, GOG proposes to make funds available to the lower income groups to cover the costs of connecting to the sewer system (household connection) and making necessary improvements to the inside plumbing and sanitary facilities. For this purpose, IDA proposes to include US$2.36 million in the project credit. This fund will be onlent to GWSSB at 6% interest repayable over five years without a grace period to be used by the Project Cities as required (see para 4.20). VI. ECONOMIC AND SOCIAL ANALYSIS Marginal Cost Analysis 6.01 The concept of using the average incremental cost (AIC) to express the long-run marginal cost that should be recovered in today-s tariffs, is suitable for a long-term, year-by-year system investment programs such as the one envisaged for GWSSB and AMC. The time slice of the investment program selected for purposes of AIC calculation is the period between the financial years 1981/82 and 1985/86. Incremental recurrent costs associated with this investment are included for the remainder of the 40 years average life of assets. 6.02 The total water and sewerage AIC, in constant prices, is expressed as the present value of the investment and incremental operating cost streams, distributed over the present value of the stream of incremental water output. This is not to imply that all sewerage expenditures should be allocated to water pricing, but merely to choose a yardstick for tariff adequacy. Using a discount rate of 10%, the water AIC-s per cubic meter rates are as follows: Rupees per Cubic Meter Water Sewerage Total Ahmedabad .10 .07 .17 Rajkot 2.94 2.03 4.97 Anand .38 .76 1.14 Bhavnagar .55 , 55 Godhra .95 .95 Jamnagar .79 _.79 Nadiad 1.43 1.93 3.36 Savarkundla - 1.47 1.47 Total Project Cities .26 .18 .44  -44- Internal Rate of Return 6.03 The project itself is defined as the aggregate of a number of scattered independent sub-projects within the overall Gujarat water supply and sewerage investment program, incorporating urban as well as rural elements. As many of the subprojects are not suitable for individual cost/benefit analysis, being improvements or sewerage facilities only, the analysis is performed for the total five-year investment program in water supply and sewerage of the eight project cities, including some investment not contained in the project. The rural components of the project do not lend themselves to quantification of benefits, and are excluded (for a discussion of benefits, see para. 6.08). Total capital costs of the eight cities' investment program during 1981/82-1985/86, and the subsequent incremental recurrent costs, are expressed in CIF or equivalent border price terms, using appropriate standard and shadow/market wage rate conversion factors. Benefits are quantified as the minimum willingness to pay as represented by the agreed tariff and similar revenue levels from 1983/84 onwards. Only tariff changes in real terms over time are considered, i.e., all costs and benefits are expressed in 1981 prices. 6.04 The minimum internal rate of return for the eight cities' investment program is 2.5%. This rate of return, using revenues as a proxy for benefits, underestimates the real economic rate of return for the project since it excludes benefits which cannot be meaningfully quantified. For example, the consumers' surplus, the amount by which consumers value additional consumption above the price paid for it, is not included. A consultants' study, prepared in May 1981, indicates that a tariff level considered to be "affordable" by consumers would be significantly above present tariffs. Other non-quantifiable benefits include increases in labor productivity and employment opportunities, an increase in property values, the promotion of economic development, and, most importantly, the reduction in disease incidence. If revenue-based benefits are increased by only about 50% to account for the non-quantified benefits, the program's internal rate of return rises to about 10%. Internal Rate Net Present Value of Return (%) At 10% (Rs mn.) Base Case: Revenue Benefit 2.5 -425 Benefit increased 50% 9.6 - 24 Pricing Considerations 6.05 The Project Cities except Ahmedabad propose to continue to charge for water at a flat rate based on the size of connection. Metering will be studied and possibly employed selectively for large consumption customers. Ahmedabad proposes to initially continue its practice of charging for water  -45- through a water tax until the feasibility of metering on a wide scale has been determined (see para 4.21). All Project Cities propose to charge for sewerage service through a sewerage tax. 6.06 GWSSB has employed consultants to perform a socio-economic and tariff study for all the Project Cities except Ahmedabad. Through this study it is hoped to develop a pricing policy which will eventually make the sector completely self-sufficient while not being overly burdensome to the lower income groups. They hope this goal can be achieved while maintaining a lowest "life-line" rate at about 2% of household income. Monthly household incomes for representative cities are shown as follows: Monthly Percent of Households Income Rs Rajkot Anand Bhavnagar Godhra Jamnagar Nadiad Up to 350 14.2 38.9 29.4 39.0 26.2 26.4 351-500 24.2 19.9 25.0 18.0 17.8 22.7 501-1000 26.7 25.6 33.2 32.0 37.7 30.1 1001-1500 12.1 8.3 7.0 7.0 10.4 13.8 Above 1500 12.8 7.3 5.4 4.0 7.9 7.6 100.0 100.0 100.0 100.0 100.0 100.0 Having, during negotiations, agreed on full cost recovery and on the timing of steps to be taken to reach this goal, the tariff study can now be finalized incorporating these criterion. The tariff study will also have to deal with the affordability of tariffs to the various income groups based on the agreed degree of cost recovery. However, even if the 2% "life line rate" cannot be maintained, preliminary studies have shown that water supply and sewerage service can be provided at most locations and the majority of costs recovered without requiring charges for this service to exceed 4 to 5% of the user-s income. 6.07 Ahmedabad has also employed consultants to conduct a socio-economic and tariff study. During negotiations it was agreed that this study will be submitted to IDA for comment before the study recommendations are initiated. Environmental and Health Impact 6.08 The urban water supply component will enable the level of the present supply in the project area to be improved, even in the face of increased demand occasioned by the growth of population. The incidence of water related disease (Annex 29) should decline with the more uniform distribution of piped water, improved pressures, and longer supply hours, particularly for consumers using public taps. In the rural areas, the impact of improved water supply will be more marked; the high incidence of diseases in some rural areas is directly attributable to the high salt content in existing  -46-- water sources, and in instances where improved pipes supply has been provided from pure sources, there has been a significant reduction in such ailments. In addition to public health benefits, an easily accessible water supply will greatly alleviate the hardship imposed by long walking distances to existing sources. Improvements and extensions to the sewage collection systems will prevent contamination of street, footpaths, dwelling areas, and water courses, which presently occurs when sewage flows exceed the capacity of t!he system. Thus, the project, by ensuring an equitable distribution of wholesome water, as well as improved collection and disposal of human waste, will reduce potential sources of disease that presently pervade both urban and rural communities, and in particular the urban slum areas. Impact on Poverty Groups 6.09 The service levels enjoyed by the urban poor before and after project implementation have been described in paras 2.23 to 2.26. Additional public taps will be provided to serve better the section of the urban community living in properties not connected to the water system. These will comprise largely the slum areas. The design targets in this respect are 100 people per public tap, and a distance of not more than 100 meters between dwellings and taps. As a consequence, the daily waiting times for water collection will be reduced and walking distances shortened, in addition to service level improvements. It is also anticipated that preferential tariffs could induce a greater margin of urban poor to avail themselves of a more accessible supply by installing private or shared house connections. In rural communities where the supply is only by standpipe, the design criteria relating to the physical location of standpipes ensures that all sections of the community will enjoy an equal level of service. In the case of sanitation, where private access to facilities is more important, the financial assistance provided in the project for connection charges and improved household plumbing should permit fuller use of the public sewerage system by the poverty groups. For the low-cost sanitation program, it is already mandatory that a minimum of 30% of the program expenditure be devoted to the underprivileged Harijan community who will receive these facilities free of charge (para 4.27). 6.10 It is difficult to isolate with any degree of precision that portiLon of the investment which is allocated specifically to poverty groups, as the urban poor in the project are not concentrated in well-defined slum areas but dispersed throughout the urban areas. With the facilities and financiLal assistance provided to the poor under the project as outlined in para 6.09, it is reasonable to assume, however, that the poverty groups will receive benefits which are proportional to their population. On this basis, Annex 29 indicates that of the total project investment of US$162 million, US$49 million or 31% is allocated to the urban poor. The urban poor component of the IDA credit would be about US$25 million.  -47- Least-Cost Solution 6.11 The engineering studies have examined all feasbile alternatives and have costed options at discount rates of 8%, 10%, and 12% to determine the least cost solutions. The design of water distribution and sewage collection systems has been done by computer, programmed to define the most economic network having regard to configuration and pipe size. Project Risks 6.12 The project is complex and extensive and its execution will require a considerable amount of management and coordination input on the part of the implementing agency. GWSSB is a newly formed Board and, although it is staffed largely by personnel who have worked together in the former PHES, it may be subjected to additional stress during project implementation on account of its organizational development. Some anticipatory measures have been taken to offset these factors by the early appointment of consultants who will share in project related responsibilities, but nevertheless some delays in achieving set targets may be expected. VII. AGREEMENTS REACHED AND RECOMMENDATION Agreements Reached 7.01 Agreement was reached during negotiations on the following: (a) with AMC on the implementation of the findings of the organization and management study (para 3.08); (b) with GOG on the practices relating to rural water supply (para 3.10); (c) with GWSSB on a sector training program (para 3.15); (d) with GWSSB on the conduct of an organization and management study for RMC and the implementation of its findings (para 4.11); (e) with GOG on the acquisition of land (para 4.19); (f) GWSSB will furnish regulations, by-laws, and loan-fund arrangements for sewer connections (para 4.20); (g) with AMC and GWSSB relative to its review of the feasibility of metering (para 4.21 and 6.05);  -48- (h) with GWSSB on the formation of a leak detection unit and the initiations of a leak detection program (para 4.22); (i) with GWSSB on the establishment of a project cell for low-cost sanitation (para 4.26); (j) with GOG on the method for obtaining funds to cover the operating and maintenance costs in rural water supply schemes (para 5.03); (k) with AMC, and GOG on the urban water supply and sewerage tariff revisions (para 5.05); (1) with AMC, and GOG on the establishment of a standard debt limitation covenant (para 5.15); (m) with GOG, and GWSSB on the on-lending terms (para 5.18); (n) with GOG, AMC, and GWSSB on confirmation of the schedule for installing the commercial accounting systems (para 5.21); (o) with GOG, AMC, and GWSSB on annual audit requirement (paras 5.22 and 5.23); (p) with AMC, and GOG on the goals for billing and collection (para 5.24); (q) with AMC on agreement of the tariff study (para 6.07). Conditions of Disbursement 7.03 The following action should be completed before funds are disbursed against expenditures of the related sub-projects: (a) with GOG on the regulations governing low-cost sanitation (para. 4.27); (b) signing of subsidiary loan agreements (para 5.19). Recommendation 7.04 With the indicated agreement of the items noted above, the project is suitable for an IDA credit of US$72 million equivalent.  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT Sector Investments 1974-1978 1980-1985 Subsector 1966-1976 (5th Plan) 1978-1979 (6th Plan) Total Annual Average Total Annual Average Total Total Annual Average Rs Rs Rs/Capita Rs Rs Rs Rs Rs Rs Rs Million Million (a) Million Million Capita (b) Million Million Million Capita (b) Urban Water Supply 103 10.3 2.20 37.90 7.58 0.86 59.85 48.7 9.74 NA Urban Sewerage 14 1.4 0.30 11.05 2.21 0.25 5.049 27.0 5.40 Rural Water Supply 171 17.1 0.89 186.00 37.20 1.70 107.385 350.8 70.16 Rural Sanitation 2 0.2 Negl. 1.78 0.36 0.02 0.009 2.60 0.52 Public Latrines - - - - - - - - - Latrine Conversion Program - - - 3.37 0.67 NA NA 8.0 1.60 Research and Development - - - 0.74 0.15 NA 1.920 0.5 0.10 Water and Air Pollution - - - 3.40 0.68 NA NA 5.0 1.00 Government Contribution to GWSSB - - - - - - 5.0 2.50 Total Government Allocation 920 29.0 1.09 244.24 48.85 1.59 174.221 447.6 91.02 LIC Loans NA 112.00 33.100 250.0 50.00 Commercial Bank Loans NA 109.72 24.500 150.0 30.00 World Bank Loans - - 660.0 132.00 Total Investments NA 465.96 231.821 1507.6 303.02 Note: (i) Sector Investments of the four corporations (BRAS) are not included in the above figures. (ii) Sector Investments of Urban Water Supply and Sewerage are i4cluded only for Government Grant and Loan Channeled through GWSSB, but not those investments financed by the Municipalities' own funds. (a) Based on 1971 population in the sectors concerned, or total population, respectively. (b) Based on 1978 population in the sectors concerned, or total population, respectively.  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT Urban Water Supply Service Levels - Summary Present Service Levels Future Service Levels (1980/81) (1990/91) Consumption Consumption Consusiption Consumption House Standposts Other (lcd) for (lcd) for House Standposts Other (lcd) for (lcd) for Connection (Municipal Sources Population Population Connections (Municipal Sources Population Population Town (Municipal Water) Water) (Non Municipal) Served by Served by (Municipal Water) Water) (Non Served by Served by X Z % House Connection Standpost % Municipal) House Connection Standpost Nadiad 68 15 17 137 40 75 15 10 129 40 Godhra 56 22 22 42 15 71 15 14 79 30 Anand 64 21 15 87 33 66 21 13 115 SO Jamnagar 75 14 11 51 31 81 10 9 69 35 Bhavnagar 74 22 4 74 22 81 18 1 124 40  INDIA GUJARAT WATER StPPLY AND SEWERAGE PROJECT URBAN AREAS SEWERAGE Salient Data and Service Levels AWSEDABAD RAJKOT NADIAD ANAND S 7ARK1INDLA 1980/81 1985/86 1989/90 t980/81 1985/86 S990/91 1980/81 1986/87 1990/91 1980/81 1986/87 1990/91 1980/81 1986/87 1990/91 i. PepulaLion (Nss.) 2202000 2547000 2830000 500000 590000 690000 138841 161693 178478 91300 114849 133122 49239 53454 57085 2. Population in.Areas to be provided with Sewerage System (Nos.) 2092000 2354000 2830000 395000 466000 566000 138841 161693 178478 53000 91259 102459 49239 53454 57085 3. Population Served 3.01 By Connections -nos 2092000 2354000 2830000 Nil 373000 487000 91635 134205 151706 22825 45939 59905 Nil 42763 48522 -%of (2) 100 100 100 - 80 86 66 83 85 43 50 58 - 80 85 -% of (1) 95 92.4 100 - 63.22 70.58 66 83 85 25 40 45 - 80 85 -persons per -onnection 10 11 13 - 26 26 12 12 12 12 12 12 - 12 12 3.02 By septic tanks -nos Nil Nil Nil 298000 125000 130000 4165 1617 1785 24651 22970 19968 13294 4811 2854 -% of (1) - - - 59.6 21.19 18.84 3 1 1 27 20 15 27 9 5 3.03 By conservancy system -non Nil Nil Nil 63000 20000 10000 Nil Nil Nil 913 Nil Nil 985 Nil Nil -X of (1) - - _ 12.6 3.39 1.45 Nil Nil Nil 1 Nil Nil 2 Nil Nil 3.04 By other means -non 110000 193000 Nil 139000 72000 63000 43041 25871 24987 42911 45940 53249 34f0 5880 5709 -X of (1) 5 7.6 - 27.8 12.20 9.13 31 16 14 47 40 40 71 11 10 4. Connections (Nos.) -domestic 178695 182970 186390 Nil 12194 15925 9000 11184 12642 1902 3924 4992 - 3564 4044 -commercial 19855 20330 20710 Nil 1435 1873 80 100 125 56 130 148 - 5 6 -industrial 10450 10700 10900 Nil 717 933 3 3 3 - - - - - -Total 209000 214000 218000 Nil 14346 18731 8083 11287 12770 1958 4054 5140 - 3569 4050 5. Sewerage Systems -laterals (kns) 950 950 950 Nil 150.54 150.54 56.5 148.1 148.1 14.08 35.9 35.9 Nil 31.2 31.2 -intercepters (kma) 110 129 160 Nil 44.14 44.14 14.2 39.2 39.2 3.69 9.42 9.42 Nil 6.8 6.8 -outfalls (kms) 15 22 22 Nil 6.85 6.85 1.25 1.4 1.4 2.5 4.4 4.4 Nil 3.53 3.53 -pumping stations (Nos) 19 23 29 Nil 10 10 3 7 7 1 2 2 Nil 1 1 -treatment works (Nos) 2 4 4 Nil I I I I I 1 2 2 Nil 1 1 Note: Totals may not agree doe to rounding. Data for intervening years are available in the Project File. *: One property connection shown as Domestic connection, consists of two house connections. * Force Mains.  IDWIA GWd8NAT WATER SIWPeLY AD SEhERaCE PROJECT LoW cOsr SAITATION iEcistitq ado Pnloedi Facilities URSTiNG FACILITIES (1980) PI90080 1UJ1: STAGE I OF THE PIOJECT NaSe Poppl.tio- Popolatio- Served Per-cotage of Popolatloo Servd Percentage of Percentage of e of PoppS PtloP PropoNed Perent6 ge of 16,4-e.- Population Percentage of Total in Ser-ci- Lenel of in Thro-gh Private Total Throogh ftitiog Total Total wt.is To be Servd Tot.1 of Served Total Perenta.e at eod of T- ~~~~~~~~~~~~~~~~ ~~~~~~~~~~(Ba-ijas Ppop give oolto Seats PopoIrtico 985-86 ToO,, 1980 WaterReal Latrlses Population Waterseal Corooity Popolation poplatloo Proposed (i pop. (1980) (1980) SePat aa (1980) Latrloe. (1980) Ser-ed Pin beocaet)f Totaa Anreli 51,459 11.671 22.46 2,220 4.31 26.77 1,362 8,897 (800) 17.29 60 1.200 2.33 19.62 46.39 Bansada 9,242 2,843 30.76 320 3.46 34.22 293 1,617 (160) 17.49 -- -- __ 17.49 51.71 Bharoch 120,690 54,608 45.24 - -- 45.24 3,163 25,719 (4,000) 21.31 220 4,400 3.65 24.96 70.20 D.esa 35,200 10,192 14.13 5,640 16.02 30.15 1,779 10,641 (3,500) 30.23 100 2,000 5.68 35.91 66.06 Dh.oraji 72,123 8,186 16.95 2,380 3.30 20.25 5.005 27,850 (1,100) 38.61 -- - - 38.61 58.31 Dhrangadhra 48,280 7,280 20.65 2,080 4.31 24.96 1.665 12.089 (1,200) 25.04 60 1,200 2.48 25.04 50.00 Godhra 83,849 25,728 30.69 4,160 4.96 35.65 4,449 22,215 (700) 26.49 -- - 26.49 62.14 Baij 11,604 2,728 23.51 -- - 23.51 640 3,466 (350) 29.87 - __ _ 29.87 53.38 MHadvi 29,847 8,994 30.14 10,080 33-77 63.91 1,720 8,174 (1,000) 27.39 - -- - 27.39 91.30 Maogrol 39,357 13,117 33.32 400 1.01 34.33 1,245 9,697 (700) 24.64 -- -- - 24.64 58.63 Pra-tij 15,360 2,031 13.23 - -- 13.23 1.173 7,567 (550) 49.26 -- - -- 49.26 62.86 Radhanpur 20,521 4.850 23.63 1,960 9.55 33.18 1,163 7.430 (1,100) 36.21 - -- 36.21 69.39 Vijap-r 16,603 5,077 30.58 1,600 9.64 40.22 584 3,294 (330) 15.71 -- - -- 15.71 55.93 Vyara 20,966 9,358 44.64 1,320 6.29 50.93 725 3,655 (1,430) )7-43 -- - 17.43 68.36 Wadhwan 36,276 7,659 21.13 1,040 2.87 24.00 1,814 10,137 (850) 27.94 _ 27.94 51.94 Total 611,930 174,322 28.49 33,200 5.42 33.91 26,780 162,448 (17,770) 26.55 440 8,800 1.43 27.98 61.89  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT Urban Water Supply Demands - Summary Total Supply (Gross) Present Supply (1980/81) Proposed Water Supply (1990/91) Design Present Design Total (Mld) Domestic (Mld) Total (Mld) Domestic (Mld) Town Year (Mld) (Mld) (Net) 1/ (Net) (Net)l/ (Net) Nadiad 2001 21.10 37.9 15.82 13.73 21.16 18.47 Godhra 1996 3.50 9.5 2.66 2.20 6.94 6.29 Anand 2001 9.00 19.00 6.02 5.6 12.29 11.55 Jamnagar 1990 30.50 55.00 22.15 12.92 43.67 2/ 24.05 Bhavnagar 1996 35.14 73.65 25.65 18.00 48.87 38.08 1/ Unaccounted for water assumed to be 22% of gross demand. 2/ Includes Military supply.  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT URBAN AREAS WATER SUPPLY Salient Data and Service levels JAMNAGAR BHAVNAGAR NADOAD ANAND GODHRA 1980/81 1985/86 1990/91 1980/81 1986/87 1990/91 1980/81 1986/87 19 1980/S1 195/86 1990/91 R190/81 1985/86 1990/9t 1. Population (Nos.) 301816 350572 406414 300000 336325 362953 138841 161693 178478 91300 110555 133722 82000 92989 104184 2. Population served 2.01 by connections -nos 226362 273446 329195 222000 262333 293992 94412 116419 133858 58432 70755 88256 45920 60443 73971 -% of total population 75 78 81 74 78 81 68 72 75 64 64 66 56 65 71 -average no/ connection 9 9 9 9 9 9 7 7 7 8 8 8 9 9 a 2.02 by standpoats -nos 42254 38563 40641 66000 63902 65332 20826 24254 26772 19173 23216 28082 18040 17668 156!8 -X of total population 14 11 10 22 19 18 15 15 15 21 21 21 22 19 3 -average no/ connection 36 31 27 65 .73 50 68 34 35 109 77 82 170 120 85 2.03 by other means2 -nos 33200 38563 36578 12000 10090 3629 23603 21020 17848 13695 16584 17384 18040 14878 1,5685 -% of total population it 1i 9 4 3 1 17 13 10 15 15 13 22 16 14 3. Connections/Stand- posts (Nos.) 3.01 Domestic -metered 1500 5203 11397 2451 5551 9068 Nil Nil Nil Nil Nil Nil Nil Nil Nil -unmetered 23500 25180 25180 22522 23597 23597 13343 16631 19123 7141 8844 11032 5467 6715 8219 -total 25000 30383 36577 24973 29148 32665 13343 16631 19123 7141 8844 11032 5467 6715 8219 3.02 Commercial (metered) - 50 50 6907 7500 9600 167* 210* 250* 112* 160* 295* 110* 115* 140- 3.03 Industrisl (metered) 200 225 270 92 97 139 Nil Nil Nil Nil Nil Nil 100 105 13' a 3.04 Total no connections 25200 30658 36897 31972 36745 42404 13510 16841 19373 7253 9004 11327 5677 6935 849n. 3.05 Standposts 1190 1240 1524 780 874 1300 315 (taps) 715 (taps) 765 176 300 342 106 147 IF, 4. Water Demand Max Day (lcd) -domestic 51 83 69 74 124 124 137 130 130 87 115 115 42 97 70 -standpost 31 35 35 22 40 40 40 40 40 33 50 50 15 30 10 5. Water Demand (m 3/day) 5.01 Domestic consumption 11613 22638 22632 16500 32624 35470 12900 15134 17402 4967 8137 10149 1928 5900 5826 5.02 Standpost coesumpto. 1310 1350 1422 1500 2556 2613 833 970 1071 633 1161 1404 270 530 469 5.03 Commercial consumptn. - 1000 1000 650 900 1280 1410 1642 1813 251 380 452 110 115 140 5.04 Industrial consumptn. 4250 4250 4250 6640 8180 8500 - - - - - - 300 310 410 5.05 Others 4980 LI 14371 LI 14371 Ll 362 1000 1011 682 925 875 170 240 287 52 80 90 5.06 Unaccoonted for 8193 11789 11814 9488 16740 18076 5275 6224 7054 1698 2797 3467 840 2565 2565 5.07 Total Demand 30346 55398 55489 35140 62000 66950 21100 24895 28215 7719 12715 15759 3500 9500 95(1,5 6. Water Production Capacity (m3/day) 6.01 Surface Water 28250 53200 53200 35140 73648 73648 10000 10000 10000 - - - - 6000 6000 6.02 Ground Water 2250 2340 2340 - - - 11100 27900 27900 9000 19000 19000 3500 3500 3500 -nos of bore holes 1 1 1 - - - 6 15 15 * 6 11 11 - - - 6.03 Total 30500 55540 55540 .35140 73648 73648 21100 37900 37900 9000 19000 19000 3500 9500 9500 7. Water Supply Systems 7.0L Balancing Reservoirs -nos. 1 5 5 8 12 12 3 7 7 1 3 3 2 3 3 -capacity (m3/) 6300 9990 9990 17500 24300 24300 3845 9235 9235 900 4100 4100 1543 2380 2380 -% of demand 21 25 L2 24 L2 49.8 39.19 36.29 19.78 39.8 35.00 11 32.2 29.22 44 25 25 7.02 Transmission Mains(km)29.3 75.2 75.2 18.5 69.7 69.7 4.99 16.6 16.6 0.4 1.97 1.97 0.45 16 16 7.03 Distribution Mains(km) 27 60.3 60.3 27.65 43.33 43.33 5.03 31.38 31.38 - 40 40 38.15 38.15 38,15 LI includes bulk water sopply to military. L2 % of demand excluding military demand. * (unmetered) Totals may not agree due to, roundings. Data for interv.cing and succeedin8 years arc available icx the Project File. c  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT Rural Water Supply Demands (i) Regional Rural Villages 1980/81 1985/86 1990/91 2000/01 Region Net Net Net Net Type (No. of Population Demand Population Demand Population Demand Population Demand of Villages) X 1,000 (Mld) X 1,000 (Mld) X 1,000 (Mld) X 1,000 (Mld) Source 1/ Zamp (18) 27.8 1.11 31.0 1.24 33.8 1.35 42.1 1.68 TW Panshina (36) 70.8 2.83 81.0 3.23 89.9 3.58 116.1 4.64 TW Lakhpat (76). 30.1 2.10 33.0 2.32 36.0 2.51 43.8 3.07 TW Sabarnati (45 98.3 4.92 108.0 5.39 116.0 5.80 140.0 6.99 TW Banni (28) 20.1 2.20 22.0 2.44 24.0 2.63 29.0 3.21 TWv Deodar (42) 37.8 2.08 42.0 2.29 45.0 2.48 55.0 3.02 TWl Tharad (10) 10.1 0.56 11.0 0.61 12.0 0.67 15.0 0.82 TW Total (255) 295.0 15.80 328.0 17.52 355.8 19.02 441.0 23.43 (ii) Individual Villages (No. of Villages) (54) 55.0 2.73 61.0 3.03 65.8 3.29 81.1 4.05 TWi (57) 61.5 3.07 70.0 3.51 78.2 3.91 101.9 5.09 DW Total (11i 116.5 5.8 131.0 6.54 144.0 7.20 183.0 9.14 1/ TW = Deep Tube Wells 2/ DW - Shallow Dug Wells   INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT ORGANIZATION CHART OF GUJARAT WATER SUPPLY AND SERERAGE ROARD GANDHINAGAR [FI BCTBBBCBBCC SCBCBB BCUC. BBBBBCBCBBBT. L E2C L L ~~~~~~~~~~~~~~~~~~~~~~~~~~I'l'A _= T.'T p- r X T - r_r_- WATER IuPPLY EDO LEC I.,On ?77112 W BTBA C KCCCM N- TrWENAG .....RUrNON mn sOARDA:D S RUg'ON (UW AN DEveLop 2t MACIs/NARE z.ND ELCTReCAL oweHA F: rs SCCFLBB BNCNDE.IGNS I C AND OICEP _TIGN AND NAlNTENANCE GoVERNMF: r OFERA1ION NG EOUIPMENT EoulPMEwT vePlcut S GE JPISR_C __ FI< C.BTNB CIBCBCCBCBCRCCIBCLB L ACBBLBE-BB ,ECC CB CC.C"B CC,CBAC r 1 L BB L IT"~~~~~~~~~CCBB~B~ CNBSB TCC..CBBC 7 NBJ BBCCB____   INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT ORGANIZATION CHART OP ARRAEDARAD MUNICIPAL CORPORATION ENGINEERING DEPARTMENT .. .IA - lll UTD<TIEJGUEE IUE I CTODDH |IT X DRNUE PEP[L |;r ETENCPEEER - ~~~~~~~~~~~~~~~~~~~~~~~~~~~ _ T~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~EDEU IU-ED. EDUDECT EUROJECTND rI I. ECDIUN EEUTEICU CC OUTED SAUD UT ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ S--A OTTLTTUIED UCYTCTUE CD,UDTDUIVDDAnY, ETUEISHEET fl,TU - TU.. DECIDE UDIDTUDYTCTCYUDC DPEUEDUPDTIDEDDEEI_ TUEUWYUD UCUEEYYNT UDDDIUCUYTESUEPICTNDEY PNITDETCU DIDUIDUU DLDTNTTUUD, ~ EEEYYCDCTIIPEII.TCUUIT.   INDIA GUJARAT WATER SUPPLY AND SEWERAGE BOARD- MANPOWER FORECAST AI)4 RECRUITMENT RATE - 1981-1990 NIf__inum St _ Estimted Serial Staff Category Pre-Entry Establishment 1981 Vacancies Recruitment Rate Strength _________ Qualification Sanctioned Actual at 1981 98 198. = 1 90 1990 a Operators Nil 146 103 43 57 62 70 550 b Craftsmen Trade Certificate 284 252 32 110 120 140 1,100 c > Junior School Certificate 1,339 1,084 255 400 450 500 5,000 d __r - ntr col etfct dJ Inter- School Certificate 400 324' 76 154 172 187 1,500 O 0 c u mediate Higher Diploma . _ ~H W:S__..._ _ e A > Senior Higher Diploma 773 599 174 298 333 380 2,900 . _ ~~~Degree _. _ Promotions from_(el f Management New Appointments 254 233 21 90 100 116 900 I _ -_ I _ -It Totals 3,196 2,595 601 1,009 1,237 1,393 11,950 Unskilled 600 600 _ Security 200 200 _ Grand Total 3,996 3,395 601 1 Note: Recruitment rate calculation incorporates estimated labor turnover of 5Z per annum.  IUDIA GUJARAT WATER SUPPLY AND SEWERAGE SECTOR FORECAST TRAINING REQUIREMENTS - 1982-1990 Staff Training Requirements (Persons/Year) Serial Staff Category 1982 1983 to 1985 1987 1990 _______________._____,,__ (X) (Y+Z) (per Year) (Y+Z) (Y+Z) a Operators 43 99 + 36 104 + 60 112 + 100 b Craftsmen 32 152 + 64. 162 + 120 182 + 200: c O Junior 255 442 + 260 492 + 320 542 + 500 $ e Inter- d X . a mediate 76 186 + 80 204 + 110 219 + 150 e H X Senior 174 230 + 156 365 + 200 412 + 290 f Management 21 110 + 54 120 + 70 136 + 90 TOTAL: Persons to be 601 1,119 + 650 1,447 + 880 1,630 + 1,230 Trained . __.__ COMBINED TOTAL 601 1,769 2,327 2,833 Note: X Existing vacancies (GWSSB) Y - Annual recruitment for sector Z - Refresher/updating training at 20% per year of estimated sector manpower strength  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT PROJECT DESCRIPTION WATER SUPPLY (USBAN) Component Location Description Capacity/si-e F-nct In NADIAD TOWN Intake., Tran.nisnio, & Treatmt Tube wells (9 N-o.) To the ost)Lh of Nine bores with M.S. camisg 16.8 Mid. A. the soure oF water. Nadiad tow. pipes and strainers. South Panpiog otations (12 Non.) O-er enah trobe wel1 Sboem-ible pumps 32.7 MId. To pomp ester fr tobewe11s - 9 Non. no new tubewells 2 Nov. 33.3 LPS 78M 62 HP op on rho rerfo-ir tsbe lthe and 3 Nos. -o eeisting each. uomt- tubeweillos. 3 Nos. 16.7 LPS 60 M 20 N!P e.ch. 4 NSo. 32 LPS 62 M 50 INP each 3 Non. 70 LPS 32 M 5 HP each. North Pumping station. To the -orth of Nadiad 3 Non. centriftgal pumps !5 Mld. To hnnnt wotar -- the Shedhi 70 LPS, 32 M 50 HP each. river infiltera nsi -es1e. Nate Tranvinsi-s mains. Prom pseping srstion to CEI. class. LA pipo Iioes. T.tni 7.6 En vacyini irne T,, coo-ywotL- froc eah tnhe woEi the reservoir in the town. CI5Omm to 400mm din to tho reservoi-s in the town. Chl-rinat-rs On the pumping main-. Sin prenvore feed type 3 kg/hr. total To disniofct the water before sopply. Sisr-ibotion System 8ervice Reser- irs. Within the towL. Fose reinforced co-nrete 5.39 ML total. To provide stora-e d naitein elevated revervoirn. pre,r thrnhoor the prjeor ae Dintribhotion network. Thrasghost the s-pply ares AC and C.i. LA l.as pipes. !08 kh of m-in- varying in To strengthen and extend the nine from 80 - to 500 on din distributinn y.tem. Stand pipes In -rban poor areas of the town 400 sos. taps nopported on 12 tm si-e of each tap. To provide ateL, to the rbs poo connrete/nasosaty posts. popoiotinu- GODHRA TOWN Entahe, Trsnsmission, N Treat_ent Betia Intake works and At Betia o Pans- Canal A reinforced cncretentrurt . re ..t.7 Mid. pop ..pcer c.. P4.7 Can t pumping station. with 3 ce-rrifuaal pomps eah of Kc I, l,ect-rag t-ok and-1 jilt-tl-n 85 LPS 58 M ulot, Codhra i-rake sump and pump hoose. At Godhrs nes- the A reinforced coerrete str..t-re sod 6 Mld Soop to -ptlr to iltroti- filtrartio plonL. three centrifugal pumps each of 38 pl-nt hy pronisa eod o o sasht-k LPS, 14M head. by py gpitg. Kanelao tank intake and pump ho1-e. At K-anlian task A reinforced conrLt t -toe and 6 Mld. bo -PPlY wte Ic fiiumpiti- pino thre ce.tritagal pon ech of d-rg the period oF clao-re of canal. 35 LfS, 6.4M. It Meshri river intake. Meshri River Reinforced concrete c-iio-ti-n 10.8 Mld. To vpplem t the eate qosotity in > chonher. jnok wanl and pomp h--oe. K-oe.ao -t ank doi ng oo Thrin t-rbine pumpo oach of 62.5 LPS, op for e-opor-ti-n loon after monsoon. 25 N. Raw Water Tranvt isin main f ltretian pomp one to tow Rising ai-s of C.l. Clans LA 500 mm din., 9 kh 1ong nod 350 on T- conveY waIte f Ps anal t filtrotion plant and f-rther din. 2.8 km long, the filtrati-n plant and to, KEa..In to R-.a.en cank. Ot-k. Rao Water Tronmiosion maim Meshrl J-ck-ell to K-n1fan A rising tmi of CI. IA 450 on din., 2.6 km 1-o. To oo-v-e water fro- Mtehri river Lank. tn-nolo tn for torane Clear Watcr Tran-mission main Pilrtation plant to A rising vain of C.I. LA 350 on- din.. 1.2 ho lon,k in convey ,Arar w-tcr torho Water Troatmcnt Plant Codhra tows. A conventionll rapid sa-d b Md.n -oyl, fcl] t-e-e -ot filtratio- plant. Service Rsoetvoir Within Codhra town. A reinforced coneost llelntod I8fi4 M1 Mn n-plPn- "t f,ren t-t- rspe rovervnsr. coyno~~~~~~~~~"pity.  Component Location Description Capacity/size F-nction OAND TOWN Intake., Tr-ennision & Treatment Tobe wells Ineonresidential areas Three borewells with M.S. 5.28 Mld. As the norce of water af Amnad toEo. easntg pipe and strainers. Pomp hteses Deer the borewelis Beisfocced ce-onetet n5trncries 5.2a Mld. To pomp ares ftrot the ttbe with submersible pumps: wells fot 'iciry into the - 2 Nes. 22.2 LPS, 90 M and reservoiro. INo. 33.3 LPS. 67 M en three existig tobewo ls and 3 Non . 33.3 LPS, 67 M on three ev tote wells. Tra.nsmission eiatn. From tubeneils to two Riniseg sian of C.l. 1A 250mm dia.l.4 kh log To convey ater from the tuhe sereice reservoirs. 250 mm dta.O.4 he toeg wellts to the sereice reserveirs. 200 ss dia.O.l km tong Chliornator Os the rising mai-n. Two pre-n-re teed type Total 1.3 kg/hr. To disimfect the raw water chlorinators. beforen apply. Service Reservoir Within Anaod tEo. A reinfor-ed roncrete elevated 0.53 ML To store w-ete aed maintain reservoir. pressure rhroogheut the perject Distribhtionnertwrk Throughont the supply A.C. and C.I. LA steis and Total 39.4 kh of pipes in To s-pply water threogheut the area. tranches. varying dia. from 100 - to project area. 600 - Stand pipes. Is urtan poor areas of 112 Non. taps sapporeed n 12 nsn tap mice. Ta provide water en the srhan Aamnd town. concrete/sasonary pants. year popuaities. NhIAVNAGAR TOWN Tranmtsmiain and Tceatme-t Raw Water Transmission maia Fros hifurcation paint on A gravity eati If R.t.C. 500 - dia., 2.7 kh long To con-ey raw water te the SheLruEJi saeinto r thep-p-d fitrtion plant. filtratios plant at Chitta. ttesotos of ezisting treatment Takhteshwar. Additional onits of ranventional 0.02 Mid. To angeeme the eapacit of piant. raptd sand filtration piant. etstItng a.ter tteat-ent piant. Treat- ent piant Chitra village Cneventional tepid nand 17 Mld. To suppleme-- the capaeity of filtration piant water treatment plant. Cle-r Wnter Trasn-ission saies Chitra filtration plant A gravity sai of roncrete,pumping 600 m. die., 5.8 kh Sang Ta eonvey cleat water to the to service reservoirs. saeis of C.. LA romcrere pipe; 400 - die. service resersoirs. 1.4 km loeg C.I pipe and two short pipes of 50 M length pach. Puapineg Sattons At Chitra and ot Dilbttatar A -eiorced concrete struErure Total 10.5 Mld. To pomp treated water to th sump. ith centrifugal pumps servi t:ervairs - 2 Non. 24.3 LPS, 18.2 M each 2 Non. 46.9 LPS, 21.7 M eaeh 2 Non. 61.3 LPS, 18.5 M eaeh Sistritatins System t Sersice Ri.ervoirn Varloas places within thc town Reinforced concrete resereoirn Total 6.27 ML Ta provide ntorage and maintain thre - ted ad presnare thro-gha-t the prnjeet Disttibutrio netork Thrnughoat the supply area nintribhtion salin and branches Total 182.5 km of pipes To supply water thro gho-t ef AG ad C.I. LA in vying die, from SD the project area. to 750 ma Stand pipes In urban poor areas af the town 500 Non. taps stppocted on Tops of 12 ens. To provide water to the thar coscrere/mosonary po-ts. poor popiltian.a iAMNAGMA TOWN Intake, TransmlsniOn, 6 Treatment USd intoks works and pompin5 Ud Left bSok caa. S cirfsccd c30 'Aid Ta ptp wte fr the c Onto station. w e an can . vith foant centreirugaS pumps of the -rwes r min threanglinrt 173.6 LPS, 30 M each. torgs chin-ey. Ran Wator Transmission sates. oUd-I intake to Jamlagar city. Aran carte transmission sale of Concrete sati 700 me T, -y r t- p to t prestressed concrete pipe. dia., 39.5 kh long. lam-g-ar city. Water Treatment ploL NSear entering trEatment plant. A cone-ti-Iel rapid nand filter 12.5 Mid. T, -e-t the wate type treatment plant capacity of the owe.r  Component Location Description Capacity/size Function (JAMNAGAR cont.) Clear Water Transmission mains From treatment plant to service Rising mains of C.I. LA 250 mm dia., 2.7 km To convey clear water to reservoirs. long t 400 mm dia., 3.7 the service reservoirs. km long Pumping stations Within Jamnagar town Two Reinforced concrete 20.3 Mld. To pump clear water to the structure with centrifugal service reservoirs. puMPS - 3 Nos. 35.3 LPS, 17.5 M each. 3 Nos. 106 LPS, 17.5 M each. Service Reservoirs Within Jamnagar town Four reinforced concrete 3.69 ML To provide storage and maintain elevated reservoirs pressure throughout the supply area. Distribution network Throughout the supply area Distribution mains and branches Varying diameters from 150 - To strengthen and extend the of A.C. Class I and C.I. Class LA to 400 mm. Total length 29.3 distribution system. km A.C. pipes and 41.6 km C.1. pipes. Stand pipes in urban poor areas of the town 324 Nos. of taps supported on Tap size 12 mi To provide water to the urban poor concrete/masonary posts. population of the town. o  Component Location Description Capacity/size Fsection REGIONAL RURAL WATER (Zamp, Panshina. Sabarnati, Lakhput, B.anf. Drodhar, Tharsd) . Intake, Transmission Tube wells Average 4 Non per M.S. casing pipes and strainers 30 Nos total Source of Supply region. Tube well pumIping uLafions Average 4 Nun per Turbine pumps 30 Nun pumps. Tutal Capacity Pump into system region 26.4 Mld. Booster Stati.o.s U traun.ission mains Centrifugal pumps ever concrete 12 Nos stations. 42 Nus To boost pressure on sumps. pumps. Total capacity 25 Mld. trunseissiun mains. Transmission mains From pumping stations to AC/PVC/CI. pipes 949 km. 80 - to 450 ms village cisterns Treatment, Distribution Treatment On village cistern Drip feed chlorinator 195 Non Treatment of water Cistern At each village R.C.C. Circular tanks 195 Non varying from 0.02 ML storage tu 0.11 ML. Stand pipes At each village 3224 taps on concrete poets 12 -m size Village water suppply INDIVIDUAL RURAL FOR VILLAGES WITH TUBE WELL, AS SOURCF OF SUPPLY Tube wells (54 Nun.) one at eoch of the 54 54 bores with M.S. casin,g pipe 5 Mld. An source of water supply. villages and strainer. Tube well pumping stations On each tube weli Turbine pumps 5 Mld. To pump water from tube wells - 49 No. 2 UP each to village cisterns. 5 No. 5 HP each Water Trsansissiun mains iron tube welis to village AC pressure ar-d Cl pipes Total 97.2 km of 80 ma dia. To convey water from pumping cisterns. ufatioe to village cisterns. Treatmcnt, Distribution Tre-tment At village cistern Drip feed typo chlorinati-o 54 No. - 00 each Rort Ta treat the wates before upply. 54 villages. Cistern At each village RCC circular tonks. 54 Nos. each of 0.05 ML capacity. To, provide sforage 'of wuter. -e Stood pipe At each village 2160 taps supported n concrret 12 ma siz each tap To supply water to the villagers mo nasonary posts. INDIVIDUAL RURAL FOR VlI.IAGESE WITH DUGWELLS AS SOURCE OF SUPPI.Y m Dug weils 4 No. at each of the 57 OpeL wel1 with stone masonary 6.15 Mld. An source of water supply. village const ructios. 228 NBus. Pumping stations At each dug well Submersible pumps 228 NRu 6.15 Mld. To Pomp water from dug wells to 2 HP -ch. village cisterns. Treant, Distribution Treatment At village cistern Drip feed type chlurination 1 14 Ni. two numbers each fo.r Tn treat the water refore supply. earl, fur the 57 villages. Cistern At each village RCC Circular tamk 114 NErs. 0.02 ML capacity earh Villge water eupply. Stand pipe At eaeh village 2280 taps supported on coecrete 12 rnm siat each tap uasonary posts.  Component Location Description Capacity/size Function SEWERAGE AMIMEDABAD Caliuctios System Trunk Sewers East City Rectanlar trin R.C.C. duet 1.8 a a 1.8 s - 2.5 kh Relief Siews West City Rectagnglar twin R.C.C. duct 2.4 u c 2.4 m - Y.55 km Relief Sloers 1.2 us 1.7 3 - 5.95 km 1.8 r u 1.8 m -1.96 km 1.9 c x 1.9 = - 1.32 km 2.5 = a 2.5 s - 2.50 km Ter-inal Pu=piog statio-s 1 No. lEst City (Pirana) R.C.C. ircctare Peak fltc capacity 621 Mid. Cono-ying sewage to tremtment plantr. S No. Went City (Vasa) R.C.C. Structace Peak flow capacity 795 Mld. C-onvying newage to treet=ent plants. Tonatne..t Plots I Na. Cast City (Picau-) A.eratd lagoo. intearls, 227 Mld. Ac. Flow Treat-unt prior to disposal to ri-a-. I No. West City (Vasna) grit chauhcro. screans, nettling 155 MId. Av. FPow tanks RAJKOT Collection Synten City area. Scout pipe. Stcneware/R.C.C. 195 km in sien ranging from Collect se-age and convey to lift 15. um to 1100 ee. stations. Lift Stations night eonal stations Circular/Wat gull/Diy Well Total of 22 No., hori=nntal u amps Lift sewge for onward conveyance. R.C.C. Construction varying fSom 40m3/H to 820m /H. Covepyauce City area C.I. pip. 3.4 km is si.e. rsnging from 150 Pm rom lift tsttion- to trunk sewers. to 800 -. Raw Sewage Treatment plant site Rectangulac/Wet Well/ Pa=piag Statics Diy Well R.C.C. cousteuction 3 pumps each 2340=3/hr. Ts pump nesoge to treatment plaur. Treteid uffl.uet pumping stati-n Treatment plant site Rectangulat/Wet Well/Diy Well 3 pumps each 2340s3/hr. To pump treated effluent to irrigatian Treattet Pialrt Northern city linits Aerated lagoons 4 days riettion. Ta treat sewage. West Buck Aji River 24 No. 25HP ficed aerators. NADIAD TOWN Collectiotn 4 ConveSa ystem Collection Systrm Throughout the project area. Stoneware pipes fron 150 me to Stoneware laterals up to To augment the enistieg newerage system 350 - 0 and R.C.C. NP2 damn 200 me 0 92 km pipes frau 400 me to 1100 n 0 Lift utrtions 3 No is drainage Scation A R.C.C. Sty Well/Wet Well Average flow capacity at To life cewage flows at on Soatr-Went sid' of railway coosiructoon with a bSick nasonary lift stations vary betweun intermediate points in the syste=. track and 2 No in drainage pump house. 0.39 Mld. and 10.24 Mld. unction B. on North-lost side of railtay track. Main pumping utation. Total 2 No of which E.C.C. Dty Well/Wet WelS Average flow capacity of the exinting To convey the sewage iafl ta thu existing pumping otation cc constcuctionaith a brick pumping station augeented to ID MId. new treat=ent plant situ. the North side near Nee Shorrocik asanary paup house. Now pueping station 37.2 Mld. Mills and new pumping station near the treatment plant Treat_-nt Plant 1 So. one truatmn.t plant near Osidatioc Ponds facoltativo type The average dry weather flow design To troet ewage bhfore final the eisting treat=ent plact capacity 40.607 Mld. (1991) disposal. SAVARKLUNDLA Collectian 4 Cocvayance iyste= DIevloped areas of Savarkundla Storntare pip.. far 150 = Stonewore laItrals up ti 200 mm Introduction of watur carriage sysLem Colliectica Systc=s town 0 to 350 e 0 R i.C.C. pipes 0 31.2 km and stonew=re sod R..C. for d-=estic suwage. from hO me 0 to 600 ea- e. onion 6.8 kh. P-mping station and force main North of toYn and cc Wert Biak S.C. Dry Well/Wct Bull Average flow capacity 7.66 Mld. To pump the entire flow to thu proposed d of River. conatruction C.l, Force main Force main 450 ea 0 3.53 kn oith treat-ent plant. cacrying capacity of 24.51 Mld. Treat=ent plast Sooth-West side of the city Oxidation PFod of faul-tative typc The overage dry weather flow design To treat Do=oetic sewage before final 3.5 ki capacity 7.06 Mild. (1991) disposal. ANAND SEWERAGE Collectinn 4 Convayanca System Collection Systen Town Planning Scheme nh=bers 2,4, stoware pipes 150 to to 350 = Stonecare latecals 21 ki stonewsre & To augment the existing .e.eage system and 5 0. R.C.C. pip.s 400 - to 800 e 0. R;C.C. Mais swters 5.73 kh Total 421 ahuc  Component Location Description Capacity/size Function ANAND SEWERAGE (Cont.) Pumping Stations and force umin 1 No. on South side of R.C.C. Dry Well/et Well South - Average dry weather South P. S. to convey the waste construction. C.I. Force in flow capaiAty = 8.18 Mid. water of T-P. Scheme 2 4 &I 5 1 No. on North side of (nev) prestressed concrete (Existing) Worth - Average dry weather to new treatment plant. North the town flov capacity = 7.19 Mid. P. S. to convey the Waste water of (present) 14.5 Dld. (future) T. P. Sches 1. 3 6, 4 7 to the 450 a 0 x 1.98 km force existing treatmnt plant. =ai (existing) wlth carrying capacity of 46.66 Mid. Treatment Plant 1 No. treatment plant on Oxidation Ponds Average dry weather capacity Treatment of the town waste water south side of the city of 4.76 lmd. (1991) before disposal. a  ANNEX 13 -66- INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT Summary of Estimated Costs of GWSSB Components Percentage of URBAN AREAS Local Foreign Total Local Foreign Total Total Project Cost -- US$ Million- ----R5 Million--- Equivalent Water Supply Civil Works 8.45 - 8.4531 71.87 - 71.871 6.48 Equipment 2.64 5.13 7.77 22.45 43.68 66.13 6.02 Subtotal 11.09 5.13 16.22 94.32 43.68 138.00 12.50 I/ Sewerage-/ Civil Works 17.66 - 17.66 150.14 - 150.14 13.53 Equipment 7.20 1.93 9.13 61.22 16.43 77.65 7.01 Subtotal 24.86 1.93 26.79 211.36 16.43 227.79 20.54 Low-Cost Sanitation-/ Labor 1.60 - 1.60 13.64 - 13.64 1.33 Material 5.45 - 5.45 46.36 - 46.36 4.51 Subtotal 7.05 - 7.05 60.00 - 60.00 5.84 RURAL AREAS Water Supply Civil Works 7.92 - 7.92 67.36 - 67.36 6.07 Material & Equipment 9.73 0.61 10.34 82.73 5.21 87.94 7.93 Subtotal 17.65 0.61 18.26 150.09 5.21 155.30 14.00 COMMON SERVICES Stores, Workshops & Depots 0.35 - 0.35 3.00 - 3.00 0.04 Vehicles & Miscellaneous Equipment 0.47 - 0.47 4.00 - 4.00 0.05 Subtotal 0.82 - 0.82 7.00 - 7.00 0.09 OTHERS Hydrological Investigations 0.13 - 0.13 1.15 - 1.15 0.11 Engineering: Consultants 1.31 - 1.31 11.12 - 11.12 1.08 GWSSB (ETP) 9.21 - 9.21 78.30 - 78.30 7.63 Training 0.73 0.18 0.91 6.20 1.50 7.70 0.75 Land Acquiaition 0.77 - 0.77 6.53 - 6.53 0.64 Loan Fund-House Connections 2.35 - 2.35 20.00 - 20.00 1.95 Subtotal 14.50 0.18 14.68 123.30 1.50 124.80 12.16 TAXES & CUSTOM DUTY2/ Subtotal 10.67 - 10.67 90.67 - 90.67 5.98 Total before Contingencies 86.64 7.85 94.49 736.74 66.82 803.56 71.11 CONTINGENCIES Physical 5.87 1.01 6.88 49.90 8.56 58.46 5.98 Price 17.74 2.95 20.69 150.52 24.98 175.50 23.00 Subtotal 23.61 3.96 27.57 200.42 33.54 233.96 28.89 Total Project Cost 110.25 11.81 122.06 937.16 100.36 L037.52-/ 100.00 1/ Includes Rajkot Sewerage Project but does not include Ahmedabad Sewerage Project. 2/ Includes Contingencies. 3/ Includes contributions to IDA financed irrigation projects amounting to US$4.0 million.  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECT AHMEDAbAD MUNICIPAL CORPORATION SEWERAGE PROJECT Summary of Estimated Project Cost Percentage of Local Foreign Total Local Foreign Total Total Project Cost -----------------US $ Million ------------- -----------------Rs Million--------------- CIVIL WORKS Equivalent Collection and Conveyance 11.79 - 11.79 100.22 - 100.22 27.9 System Extensions and Improvements - - Pumping Stations 4.56 - 4.56 38.79 - 38.73 10.8 Pumping Mains 0.08 - 0.08 0.69 - 0.69 0.2 Treatment and Disposal 3.94 - -- 33.52 - 33.52 9.3 3.94 T7_3__ Subtotal 2077 20.37 173.16- 173.166 48.2 MECHANICAL & ELECTRICAL Pumping Stations 1.48 1.24 2,72 12.61 10.54 23.15 Pumping Stations 6.99 ~~~~~~~.7221.66 28.65 6.5 Treatment and Disposal 0.82 2.55 3.37 6.99 321.2 28. 6. Subtotal 2.30 3.79 6.09 32.20 51.80 19. OTHERS Investigation and Survey 0.47 - 0.47 3.97 - 3.97 1.1 Consulting 0.93 0.93 7.88 - 7.88 2.2 Sup vision 0.93 - 0,93 7.88 - 7.88 2.2 1 Sdbtotal 2.33 2.3 19.73 - 19.73. CUSTOMS DT 1! 2.47 2.47 21.04 - 21.04 4,4 CONTINGENCIES Physical 2.31 0.52 2.83 19.66 4.42 24.08 6.7 Price 4.69 0.96 5.65 39.93 8.16 48.09 20.7 TOTAL 34.48 5.27 39.75 293.12 44.78 337.90 100.0 1/ Includes contingencies  INDIA GUJARAT WATER SUPPLY AND SEWERAGE PROJECI RURAL AND U1RBAN AREAS - WATER SUPPLY AND SEWERAGE Summ2ry tosr Estimates of Grand Total Fisca] Year 1981/8'2 1982/83 1983/84 1984/85 1985/86 Total 1981/82 1982/83 1983/84 1984/85 1985/86 _ o ta Sply Scweraq