DPP: India: Uttarakhand Urban Sector Development Investment … · 2014-09-29 · Nainital is a major tourist town in North India. Development related to tourism infrastructure and

The views expressed in this report are the views of the author(s) and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Directors or the governments they represent. ADB does not guarantee the source, originality, accuracy, completeness or reliability of any statement, information, data, finding, interpretation, advice, opinion, or view presented, nor does it make any representation concerning the same.

Project Number: 38272-033 June 2011

India: Uttarakhand Urban Sector Development Investment Program - Tranche 2 Sub-project Appraisal Report: Water Supply Rehabilitation and Augmentation in Nainital

UTTARAKHAND URBAN SECTOR DEVELOPMENT

INVESTMENT PROGRAM ADB LOAN NO.: UUSDIP: 2410: PROJECT NO. - 2

SUB-PROJECT APPRAISAL REPORT

WATER SUPPLY REHABILITATION AND AUGMENTATION IN NAINITAL .

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1. SUB-PROJECT NAME : Water Supply Rehabilitation and Augmentation in Nainital 2. SUB-PROJECT TOWN : Nainital 3. TRANCHE : 2 4. SUB-SECTOR : Water Supply 5. SUB-PROJECT INTRODUCTION AND RATIONALE: A. Background

The Financing Framework Agreement (FFA) between India and ADB dated 21 November 2007 is to finance Uttarakhand Urban Sector Development Investment Program (UUSDIP). The total estimated cost of program is US $500 millions, out of which $350 million will be financed by ADB. The Program is to be implemented in 4 tranches over a period of 8 years. Each tranche constitutes a separate loan. The Tranche-1 of UUSDIP (Loan 2440- IND) is under implementation. This subproject is proposed under Tranche-2 (Project-2) of UUSDIP.

The Primary objective of UUSDIP is to promote balanced regional socio-economic development and poverty reduction through improvements in urban governance, management and infrastructure and service provision in selected towns of Uttarakhand. The Investment Program is based on Multi-Tranche Financing Facility (MFF) to improve delivery of basic services such as water supply, sewerage and solid waste management in 31 towns of Uttarakhand state. UUSDIP will also improve service delivery capacity of the State urban agencies by developing an institutional development program.

Nainital is an important town in the Kumaon region and is headquarters of Nainital District. It is an important tourist destination. It is located approximately between 80°14’ and 78°80’ East longitudes and 29°00’ and 29°05’ North latitudes. It is an important tourist destination and located within most idyllic surroundings at an altitude of 1,938 m above sea level. The area of the town is approx 11.73 Sq. Km. Nainital is well connected by road network to Delhi, Dehradun and Lucknow. The nearest railway station is Kathgodam, which is approximately 34 km. As per Census 2001, the population of town is 38,639 and projected population for the year 2012 is 48,858.

Nainital, owing to its altitude, is colder than most of the hilly tracts in the Kumaon region; average temperature in summer varies from 27°C to 10°C whereas in winter it ranges between 15°C and 3°C. Nainital experiences heavy rainfall; average annual rainfall recorded is around 2,583 mm.

In Nainital, piped water supply was introduced in 1898 from Pardadhara Spring, which still continues as one of the sources of water supply. In course of time, water supply system and distribution network grew to cover the entire area of the town, but the expansion limited to adhoc arrangements and no systematic development took place.

In-spite of the adequate water sources availability (ground water within the town) and water production of level of about 15.74 MLD, the actual supply at consumer end is only 9.60 MLD due to the huge losses (39%) in the system. The average per capita supply at the consumer end is 92 lpcd. The average supply duration is 6 hours, ranging from 4 hrs to 8 hrs and the pressure is generally good except for few locations in the upper layer zone i.e. existing Tanki and Interchina zone where average water pressure at the consumer end is 5-6 m. Due to leakage in the distribution system contaminated water is likely to reach to the consumer end and quality of water is not as per GOI standard. The turbidity level is generally found high in lower zone due to leakage through defective joints and damaged pipe line.

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B. The Need of the Project A detailed assessment was carried covering the existing water supply situation, which concludes that present water production of 15.74 MLD with 39% system losses is not sufficient to fulfil the present and future demands of water supply in Nainital town. The present inadequacy is due to (i) old and leaking distribution system, (ii) inadequate water production, and (iii) poor water management. These issues need to be addressed immediately to provide water supply to the citizens of Nainital town as per the National standards. The table below shows the major demand-supply gap of different parameters. Table 1: Demand - Supply Gap

Parameters Present Status Requirement / Demand Gap 2012 2027 2042

Permanent Population Covered with city water supply system

46,177 48,858 63,329 82,065 2012: 2,68l 2027: 17,152 2042: 35,888

Floating Population covered with city water supply system per day

55,867 58,736 81,946 1,11,632 2012: 2,872 2027: 23,207 2042: 29,686

Population receiving water as per GoI standard

Nil (Quality & Quantity not conforming)

48,858 63,329 82,065 2012: 48,858 2027: 63,329 2042: 82,065

Service delivery standards at the consumer end (i) Average per capita

supply (ii) Duration (iii) Quality

92 LPD 6 Hrs Good

135 LPD 24 Hrs Good

135 LPD 24 Hrs Good

135 LPD 24 Hrs Good

2012: 43 LPCD 2027: 43 LPCD 2042: 43 LPCD

Production of potable water

(i) Surface water (ii) Ground water

Total

- 15.74 MLD 15.74 MLD

-

17.40 MLD 17.40 MLD

-

23.46 MLD 23.46 MLD

-

31.32 MLD 31.32 MLD

2012: 1.66 MLD 2027: 7.72 MLD 2042: 15.48 MLD

Water treatment 14.74 MLD (1 MLD from Parda dhara spring needs no treatment)

16.05 MLD* 22.11 MLD* 29.52 MLD* 2012: 1.31 MLD 2027: 7.37 MLD 2042: 14.78 MLD

Physical losses 39% (6.14 MLD)

15% (2.61 MLD)

15% (3.52 MLD)

15% (4.68 MLD)

Reduction by 24%

Total water available at consumer end

9.6 MLD 14.80 MLD 19.94 MLD 26.62 MLD

Transmission line:

Length: 28.60 Km Condition: Very Poor (It cannot be reused)

39.71 Km

39.71 Km

39.71 Km

2012: 39.71 km 2027: 39.71 km 2042: 39.71 km (28.6 km Replacement and 11.11 km addition)

Distribution line Length: 60 Km Condition: Very Poor (It cannot be reused)

78.8 Km 78.8 Km

78.8 Km

2012: 78.8 km 2027: 78.8 km 2042: 78.8 km (60 km Replacement and 18.8 Km addition)

Storage requirements 6 ML 14 ML 14 ML 14 ML 2012: 8 ML 2027: 8 ML 2042: 8 ML

House connection 5,875 14,720** 16,200 17,200 2012: 14,720 Nos.

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Parameters Present Status Requirement / Demand Gap 2012 2027 2042

(It cannot be reused)

2027: 16,200 Nos. 2042: 17,200 Nos.

Meter Nil 14,720*** 16,200 17,200 2012: 14,720 Nos. 2027: 16,200 Nos. 2042: 17,200 Nos.

Note: * 1.35 MLD water of infiltration well for supply in Mall road hotels for flushing purpose need not be treated. ** Including Bulk Connections *** Including Bulk Meters

C. Reasons of the Demand and Supply Gap The following are the main reasons for demand-supply gap: (a) With the increase in population, water demand has increased; (b) Resources constraints for systematic and concurrent up gradation of the system; (c) The existing transmission and distribution system suffers from huge system losses as the pipes have

outlived their design period life; and (d) There are water losses at consumer-end also due to absence of metering.

6. SUBPROJECT RATIONALE From the above assessment it is clear that additional investment is needed for water supply system of Nainital town to address the service level disparities in water supply compared to the national average and national standards and will also contribute in achieving India’s 11th Five year plan target to provide potable water supply to the entire urban population of India.

7. DESCRIPTION

A. Subproject Area Nainital is a major tourist town in North India. Development related to tourism infrastructure and influx of related manpower is creating a substantial stress on civic amenities. The present projected population is 46,177 and it is projected that population in 2027 and 2042 will become 63,329 and 82,065. The subproject will cover an area of 11.73 sq. km all of which falls within the municipal boundary. Average temperature in summer varies from 270C to 100C and in winter ranges between 150C and 30C. Average rainfall recorded is approx 2,583 mm. Nainital is situated in most idyllic surroundings at an attitude of 1938 m. Lake and forest covers a major portion of Nainital town and there is wide network of roads. Total length of road network is approx 100 km. Out of 100 km, bituminous road is 28 km and rest is cement concrete (CC) roads.

B. Assessment of Existing Situation Water Source: Groundwater is the major source abstracted through tube wells and natural springs. The ground water resources evaluation of Nainital by Central Ground Water Board reflects that in the hilly tract, structural disjunctions, viz. faults, joints, lineaments and fracture systems along with deeply weathered zones hold promising prospects for future groundwater development (Source: Central Ground Water Board, Ministry of Water Resources, Govt. of India) but no exact data is available with CGWB or any other allied organizations. Moreover, it is emphasized that no additional tapping of the ground water has been envisaged in the subproject.

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Population: Total: 46,177 Covered with city water supply: 46,177 Water is not supplied at GoI standard requirement of 135 lpcd at the consumer end. Water Quality: Test results (sampling & testing conducted by DSC-2) have revealed that quality of ground water is good but quality is impacted during transmission due to old and leaking joints. Tube Wells: Presently there are 8 tube wells, mostly located adjacent to the Naini Lake. Details are as follows: Table 2: Details of Existing Tube Wells, Nainital

Tube Well No. Location Discharge (LPM) 1 Children Park 2,000 2 Children Park 2,000 3 Children Park 2,000 4 Children Park 1,600 5 Children Park 2,400 6 Children Park 2,500 7 Children Park 2,000 8 Sukhatal 850

Total 15,350 Pumping Stations and Pumps: There are two existing pumping stations in Nainital: the Old water pumping station and the Children Park pumping station. Detail pertaining to these two pumping stations is given below: Table 3: Details of Old Water Works Pumping Station, Nainital

Pump S. No. Discharge (M3/Hr) Head (M) 1 78.6 81 2 45.0 142 3 55.0 80 4 60.0 170 5 36.0 250 6 54.0 412 7 54.0 412 8 36.6 170 9 36.6 170 10 83.3 85 11 83.3 85 12 51.3 170 13 48.0 360 14 33.75 360 15 54.0 412 16 83.0 170

Table 4: Details of Children Park Pumping Station, Nainital

Pumps S. No. Discharge (M3/Hr) Head (M) 1 126.0 200 2 126.0 200 3 96.0 80 4 96.0 80 5 36.0 250 6 120.0 300

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Pumps S. No. Discharge (M3/Hr) Head (M) 7 120.0 300 8 60.0 225 9 60.0 225

Storage Capacity: Inadequate storage is one of the major bottlenecks in Nainital water supply system. There are 19 nos. existing reservoirs (CWRs) located in different level zones to cater the entire municipal population of Nainital town. Details are shown below. Table 5: Details of Existing Storage Reservoirs, Nainital

S. No. Location of Reservoir Capacity (ML) 1 Pilgrim Compound 0.441 2 Inter China 0.535 3 Tanki 0.243 4 China Mall 0.002 5 Mangewali 0.002 6 Church Bishop 0.107 7 Hawks Dale 0.003 8 Kailash View 0.003 9 Raj Bhavan 0.060

10 Tiffin Top 0.117 11 Durga Niwas 0.135 12 Ayarpata Cemetery 0.181 13 Ramsay Hospital 0.225 14 Polytechnic 0.350 15 Birla Vidya Mandir 0.600 16 Sherwood College 0.850 17 Tanki 0.200 18 Zila Parishad 0.850 19 Ratan Cottage 0.850

Total 5.754 Stand Post: There are 105 stand posts in Nainital town. Most of them are found damaged and leaking. They will not be used in future. Transmission Mains: The existing transmission mains are of CI and MS-ERW pipe material; few are of GI. Most of them were laid in 1923 and they were replaced / repaired in piecemeal. Total length is approx. 28.6 Km; sizes varying from 80 mm to 300 mm. Physical condition of these transmission mains is very poor and leading to huge transmission losses. Most of them are inadequate to cater future demand; details are shown below. Table 6: Details of Existing Transmission Mains, Nainital S. No From Pump

House To Tank Length Dia. Year of

Installation Material Remarks

m mm 1 Children's Park Sherwood 1,563 250 Partly repaired

in 1995 MS-ERW 80% length is

underground; major portion is corroded.

2 Children's Park Polytechnic 2,210 200 1995 MS-ERW -do- 3 Children's Park Birla 2,330 200 1995 MS-ERW -do- 4 Children's Park District Board 1,571 250 Partly repaired MS-ERW -do-

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S. No From Pump House

To Tank Length Dia. Year of Installation

Material Remarks m mm

in 2000 5 Children's Park Ratan Cottage 1,776 300 Partly repaired

in 2000 MS-ERW -do-

6 Water Works Durga Niwas 615 125 Partly repaired in 2000

MS-ERW 50% length is underground. Corroded and damaged

7 Water Works Durga Niwas 615 125 Partly repaired in 2000

MS-ERW 50% length is underground. Corroded and damaged

8 Water Works Tiffin Top 2,600 125 1923 GI Corroded and damaged 9 Water Works Raj Bhavan 2,700 125 1923 GI Corroded

10 Water Works Inter China 900 100 1989 CI Corroded 11 Water Works Inter China 900 125 1923 CI Corroded and damaged 12 Water Works Inter China 900 125 1976 CI Corroded 13 Water Works Tanki MS1 & MS2 2,500 125 1923 MS-ERW Corroded and damaged 14 Water Works Tanki RCC - 125 1923 MS-ERW Defunct 15 Water Works Tanki RCC - 125 1923 MS-ERW Defunct 16 Water Works Ayarpata 615 125 1923 CI Repaired in patches 17 Water Works Ayarpata 615 80 1923 GI Repaired in patches 18 Water Works Mall Road

(Direct Supply) 1,000 150 1976 GI Corroded

19 Water Works Pilgrim 633 150 1923 CI -do- 20 Water Works Pilgrim 633 150 1923 CI -do- 21 Water Works Pilgrim 633 150 1971 GI -do- 22 Phansi Gadhera Hawks Dale 500 100 1976 GI Corroded and damaged 23 Sukhatal China Mall 1,000 200 Partly repaired

in 1992 MS-ERW Corroded at many

locations 24 TW Church 1,800 125 1923 CI Corroded at many

locations Total 28,609

Distribution Mains: The major part of the distribution system comprises of GI line which are 100 mm and below. The lines above 100 mm are generally of CI. Approximately 30% of the water supply mains were laid between 1900-1930 which are still in use and are to be replaced. Heavy leakages in the system have been observed during field survey. The zoning of the distribution system has been done along the contours of the town. The zones except gravity zone have been found to be concentric to the lake. Presently there are 5 water supply level zones. But the distribution zones are interconnected which yields to inequitable distribution of water to the consumers. Total length of existing distribution mains consisting of GI pipes is 60 km whose condition is poor and corroded and passed their useful life having leaking joints. It needs total replacement ensuring proper reticulation. System Losses: System losses are approx 39% as per survey conducted by BTA. Power Situation: Average power supply is 20 hours per day.

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Energy Consumption: At present the existing water supply system consumes approximately 1322.87 KVAH/ML of water produced. The proposed system will consume 876 KVAH/ML of water produced. Thereby, there will be a saving of 446.87 KVAH/ML of water produced, or, 34% in power consumption. Operation & Maintenance: Water supply is operated and maintained by Uttarakhand Jal Sansthan (UJS). Total annual budget of overall O&M is approx. Rs. 55.07 Million (Source: Uttarakhand Jal Sansthan, Nainital). Break-up of the budget is as follows: Table 7: Cost towards Operation and Maintenance

S. No. Items Current O&M Expenditure Rs. Million

1 Works (Civil + E&M) 2.19 2 Materials / Chemicals 2.00 3 Power 30.41 4 Human Resource 19.53 5 Fuel 0.31 6 Others 0.63 Total O&M Cost 55.07

Total collection against above cost is Rs. 35.74 million; thereby collection efficiency is 65%. O&M of Water Supply & Sewerage is being carried out by Jal Sansthan, a GoU undertaking with its HQ at Dehradun. Jal Sansthan is also responsible for billing and collection. It is headed by a Chief General Manager who is assisted by a number of senior level Engineers and Officers from other disciplines such as Procurement, Administration Accounts etc. in HQ. The Jal Sansthan in Kumaon Region is headed by General Manager whose office is located in Nainital. As per organisation chart, the SE is assisted by EE, AEs, JEs and field staff (Pump Operators and Fitters etc.). Presently only three SEs are looking after all 6 districts. SE Nainital is also looking after district of Udham Singh Nagar, SE Almora is also looking after district of Bageshwar and SE Pithoragarh is also looking after district of Champawat. Table 8: Details of Manpower

S. No.

Position Sanctioned Post

Actual Posting

Gap Contracted Manpower

Net Vacant Post

1 SE 1 1 0 0

5 2 EE 1 1 0 0 3 AE 4 1 3 2 4 JE 11 1 10 6

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C. What action government is taking to address the demand - supply gap

Table 9: Govt. Action to Address Demand-Supply Gap, Nainital

Parameters Gap in Infrastructure

UUSDIP

Other Govt. Program

Balance

Tranche-1 Tranche-2 Production of potable water -Surface water -Ground water

2012: 2027: 2042:

Nil 1.66 MLD 7.72 MLD 15.48 MLD

Nil 3.06 MLD 3.06 MLD

Nil Nil Nil

Nil 4.66 MLD 4.66 MLD

(Under JNNURM)

7.86 MLD (For 2043 demand)

Water treatment 2012: 2027: 2042:

1.31 MLD 7.37 MLD 14.78 MLD

2 MLD

Nil

10 MLD (Under

JNNURM)

2.78 MLD

(A softening plant will be required at

2027) Physical losses 24%

(To be eliminated) 10%*

14%**

Nil Nil

Transmission line

39.71 Km (28.6 Km replacement & 11.11 Km new)

39.71 Km Nil Nil Nil

Distribution line 78.8 Km (60 Km replacement & 18.8 Km new )

5.5 Km 73.3 Km Nil Nil

Storage requirements

8 ML 8 ML Nil Nil Nil

House connection 2012: 14,720 Nos. 2027: 16,200 Nos. 2042: 17,200 Nos.

640 Nos. 14,080 Nos. Nil 2027: 1,480 Nos. 2042: 2,480 Nos.

Meter 2012: 14,720 Nos. 2027: 16,200 Nos. 2042: 17,200 Nos.

Nil 14,720 Nos. Nil 2027: 1,480 Nos. 2042: 2,480 Nos.

Note: * By replacing and laying new rising / pumping mains. This will save 1.58 MLD of potable water out of present system losses of 6.14 MLD. ** By replacing and laying new distribution mains and replacing house service connections. This will save 3.78 MLD (incl. 1.58 MLD from Tranche-1 improvement) of potable water out of present system losses of 6.14 MLD.

D. Objective of the Subproject The objective of this subproject is to provide potable water at 135 lpcd to cater the need of Nainital population with proper and metered house connections. The service level shall be conforming GOI standard. This subproject also aims to reduce energy consumption per ML of water produced. Beneficiaries Total no. of beneficiaries can be summed up as: ▪ 2012 – 48,858 ▪ 2027 – 63,329 ▪ 2042 – 82,065 The floating population projected to the tune of 58,736, 81,946 and 1,11,632 in 2012, 2027 and 2042 will also be benefited. In addition, the project will also benefit the commercial and institutional establishments

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with approx. 0.30 MLD, 0.33 MLD and 0.35 MLD water demand in 2012, 2027 and 2042 respectively (approx. 4% of residential demand) by additional water production over the requirement for residential and floating population. Improved Service Level ▪ Per capita supply at consumer end, 135 LPCD; ▪ Water supply for 24 X 7; ▪ Quality of water supply as per GOI standard; ▪ Physical losses reduced from present 39% to 15%; ▪ Reduce energy consumption by 34%; ▪ Reduce commercial losses by introducing consumer meters ▪ Wholesome potable water supply to commercial and institutional units; and ▪ Adequate provisions for fire fighting. Subproject Components 1. Laying-jointing of Distribution Mains of sizes varying from 100 mm to 350 mm ▪ GI pipes 80 mm : 22,693 M ▪ GI pipes 100 mm : 8,469 M ▪ GI pipes 150 mm : 15,588 M ▪ DI pipes 200 mm : 16,798 M ▪ DI pipes 250 mm : 6,075 M ▪ DI pipes 300 mm : 3,406 M ▪ DI pipes 350 mm : 370 M 2. Providing Distribution Boxes each having 20 ferrules for house service connection: 704 Nos. 3. Laying-jointing of GI pipes for house service connection. 4. Metering of all domestic as well as commercial connections.

E. Clearances and Land Acquisition Table 10: Details of Clearances and Land Acquisition Required, Nainital

S. No.

Location Length Authority Status

1 Birla 2,600 m PWD (Provincial Division) Govt. Order has been issued 2 Snow View I & II 1,500 m

100 m PWD (Potential Division) Forest Department

Govt. Order has been issued General permission has been taken for replacement of rising/ distribution mains

3 Sherwood I & II 700 m 1,000 m

PWD Construction Division Forest Department

Govt. Order has been issued General permission

4 Existing Sherwood 700 m 1,000 m

PWD Construction Division Forest Department

Govt. Order has been issued General Permission

5 Raj Bhavan 1,500 m PWD Construction Division Govt. Order has been issued 6 Hawks Dile 1,700 m PWD Construction Division Govt. Order has been issued 7 Tank Existing 2,000 m

800 m PWD Construction Division Forest Department


8 Zila Parishad 1,500 m 200 m

PWD (Provincial Division) Nagar Palika

Govt. Order has been issued Permission obtained

9 Durga Niwas / Ayarpata 1,200 m PWD Construction Division Govt. Order has been issued 10 Tiffin Top 1,500 m

1,300 m PWD Construction Division Forest Department


11 Tanki Proposed 1,000 m 500 m

PWD (Provincial Division) Forest Department

Govt. Order has been issued Permission obtained

12 Ayarpata New 1,300 m PWD Construction Division Govt. Order has been issued 13 Inter China 1,000 m PWD Construction Division Govt. Order has been issued

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S. No.

Location Length Authority Status

14 Rattan Cottage 2,000 m PWD (Provincial Division) Govt. Order has been issued Permission for road cutting has already been granted through Government Order No. 50/111/(3)2011-905 (ADB/2011, Dated 9 Feb., 2011). Apart from above, permission from Forest Department shall be taken for laying pipe line through the forest area. Forest land permission is likely to be obtained by 15th Sept, 2011

F. Risk and Assumptions for Implementation of Subproject • Risk of potential contractor to work in Uttarakhand. • Limited availability of experienced construction agencies within the state, which might cause delay in

construction and affect the quality of work. • Resistance from local residents and shop vendors as the work will include laying of pipe lines in narrow

and congested areas. However, to mitigate the above risks, following are the assumptions provided by the implementing agency: • Business opportunity seminar. • NGOs will be deployed in the field to conduct awareness programs among the residents of the town

about the benefits of the project. • Training workshops for implementing agencies and contracting firms regarding various aspects of the

project, like quality & progress, and various safeguard policies of the Asian Development Bank. • Will obtain all necessary clearances before approval of Loan • Providing concessions and incentives to the contractors.

8. DESIGN FEATURES

a. Design period : 30 years Intermediate stage : 2027 Final Stage : 2042 b. Basis of Design Projected population for 2027 and 2042, spatial distribution of population based on possible growth of town, water demand in space and time based CPHEEO Manual, and pipe material based on Life Cycle Cost. • Present Urban Population : 46,177 • Urban population in 2012 : 48,858 • Population presently availing :

- Service of Government - Standard Water Supply : Nil (Quality aspects)

• Target additional population that will be availing service of Government Standard Water Supply upon completion of project

48,858

c. Capacity Improvement

• Production of Water

- Present : 15.74 MLD - At project completion : 23.46 MLD

• Treatment of Water - Present : 14.74 MLD (1 MLD from Natural spring

does not Require treatment) - At project completion : 23.46 MLD

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d. Service Level Improvement

• Water Supply

- Present : 92 LPCD - At project completion : 135 LPCD

9. PROJECT COST

The subproject base cost is estimated to be 367.70 Million INR, equivalent to US $ 8.17 Million (Conversion factor 1 US $ = 45 INR). The summary of cost estimate of the subproject is shown in table below. Table 11: Details of Subproject Cost, Nainital

S. No. Component / Item Amount in INR (Million)

Amount in US $ (Million)

A Civil Works 1. Providing, laying & jointing of Distribution Mains including fitting,

fixing of specials, valves etc. and Construction of chambers and distribution boxes and providing house connection. (WSS05NL)

302.70 6.73

2. Supplying and installing of domestic water meters in Nainital (WSS06NL)

65.00 1.44

Civil Works Base Cost (A) 367.70 8.17 B Contingencies - 1. Physical Contingencies @ 5% 18.39 0.41 2. Price Contingencies @ 10% 36.77 0.82 Sub Total B 55.16 1.23 Total A+B 422.86 9.40

10. IMPLEMENTATION ARRANGEMENT

A. Implementation Period

Proposed construction period for the subproject is 24 months indicative time limit of subproject is depicted in the timeline below: Table 12: Time line for the Subproject

Acceptance of SAR July 2011 Completion of Detailed Engineering Design April, 2011 Invitation of Bids August, 2011 Contract Award December, 2011 Commencement of Contract February, 2012 Completion of Contract January, 2014

B. Implementation Agency

The subproject will be implemented by the Investment Program Implementation Unit (IPIU) under direct administrative and financial control of Investment Program Monitoring Unit (IPMU), which will be the Executing Agency. The DSC-2 will assist IPIU in implementation and M/s Wilbur Smith Associates retained as IPMC will assist IPMU on overall project management.

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C. Design Construction Supervision M/s STUP Consultants & M/s SPAN Consultants JV is retained as Design and Supervision Consultant (DSC-2) under the control IPMU.

D. Asset Owner Uttarakhand Jal Sansthan will be the Asset Owner after successful completion of the subproject.

11. PROCUREMENT AND CONSULTANT SELECTION The bids for this subproject will be divided in two contract packages. The estimated cost of the each work is within threshold of NCB and package bidding will follow ADB Single Stage Two Envelope bidding procedure. Table 13: Details of Procurement Method for Water Supply Subproject Nainital

Contract Package Contract Type Notification Nature of Bidding Providing, laying & jointing of Distribution Mains including fitting, fixing of specials, valves etc. and Construction of chambers and distribution boxes and providing house connection (WSS05NL)

Item Rate-works NCB Single Stage, Two Envelope System

Supplying and Installing of domestic water meters including 5 years O & M in Nainital (WSS06NL)

Goods & Services

NCB Single Stage Two Cover System

12. OPERATION AND MAINTENANCE

Tentative annual cost estimate for Operation and Maintenance of proposed Distribution System is given in table below; it is based on 2% of capital cost and actual annual O & M cost for water meters. Table 14: Operation and Maintenance Cost

Component O&M Cost per year up to 2023

O&M Cost per year up to 2033

O&M Cost per year up to 2043

O&M cost per year (average)

INR (Million) Electric power 59.37 62.34 65.45 62.38 Civil works 4.76 5.48 6.30 5.51 WTP Chemicals & Material 15.97 18.37 21.12 18.49 Man power 26.95 29.64 32.61 29.73 Fuel 0.36 0.41 0.48 0.42 Others 1.58 1.82 2.09 1.83

Total 108.99 118.06 128.05 118.37

13. ECONOMIC AND FINANCIAL ANALYSIS

A. Economic Analysis

Estimated Economic Internal Rate of Return (EIRR) is 15.35% The main evaluation has indicated that the proposed water supply sub project under Tranche-2 for Nainital was found to be economically viable, with the calculated EIRR values exceeding the economic opportunity cost of capital. The sensitivity analysis has demonstrated the robustness of this result, with the subproject component economically viable even when the combination of changed assumptions was tested.

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Furthermore, for the proposed water supply subproject, the calculated EIRR value is considered minimum estimates of economic return, as there are a number of economic benefits of reduced pollution, a cleaner city and improved waterway environment that have not been quantified. Table 15: Results of Sensitivity Analysis for Water Supply Component (EIRR) – Nainital WS, Tranche -2

Details EIRR Switching Value c/ Main Evaluation (Base Case) a/ 15.35% Capital Cost Overrun b/ 12.10% 21.00% O&M Cost Overrun d/ 14.75% 136.00% Decrease in Project Benefits e/ 10.96% 15.00% One Year Delay in Implementation 15.03% All Four Tests Combined 7.57%

a/ From Table - “Economic Cost-Benefit Analysis for Water Supply Components (Tranche-2), Nainital”. b/ 20% increase in capital cost estimates. c/ Calculated as the percentage change in a variable required for EIRR to reduce to 12%. d/ 20% increase in O&M cost. e/ 20% decrease in project benefits

B. Financial Analysis

The main evaluation has indicated that the proposed WS sub project for Nainital under Tranche-2 is found to be not financially viable, with the calculated FIRR values below the WACC (3.4%), for the recommended user charges under FIAP. The sensitivity analysis has demonstrated this result, with the subproject component financially not viable even when different assumptions was tested. However, the project is found to be with 100% O&M cost recovery from the operation start year. Detailed report is presented in Attachment 5.

14. ENVIRONMENTAL ASSESSMENT A. Brief Description of Environmental Impact

This proposed water supply subproject includes: • Laying of distribution mains (80-350) mm; 86% of these are 200 mm or less) for a length of 73.4 km,

including distribution boxes (704 nos) and house service connections (14,080 nos). Subproject is located in Nainital Town, the district headquarter of Nainital district, in the southern part of the state. In continuation of works taken up under Tranche-1 of the program, this subproject provides/rehabilitates distribution network in the entire town. Nainital is a hilly town with most of the wooded hills under the forests. The service reservoirs are located in the upper hilly areas. Distribution mains will mostly be located along the roads and foot paths, however, it is likely that the distribution lines may also pass through forest areas in some stretches to avoid negotiating acute turns and long alignments. This cannot be avoided as the forests are located within the municipal area/habitation. Pipelines will be laid above ground, and no tree cutting will be involved. Permission from Forest Department will be taken for laying of pipelines. Proper measures to work in forest areas, such as limiting work hours to day-time, working section-wise, covering the trenches in the night, etc, will avoid any impacts. It will be ensured that pipe alignment is chosen in such a manner that it does not pass over or below the sewer lines to avoid contamination. Necessary precaution will be taken for protection of pipe line in this hilly area. Adequate protection measures for vulnerable landslide zones will also be taken.

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Since the subproject is only a rehabilitation of the existing distribution network, no design impacts anticipated. Construction impacts include, impacts associated with the site cleaning, earth works, physical construction related materials movements and works, machinery, vehicles and workers. Major impacts envisaged are dust generation, from disposal of surplus soil, silt run off, noise and air emission from construction, blockage of access to houses and commercial area, damage to other infrastructure etc. As the work is to be implemented within city area, general public is likely to be exposed to dust and noise generated during construction, access obstruction to residential/ commercial buildings and affection of temporary livelihood in some cases. Most of these are common impacts of construction in urban areas, and there are well developed methods for their mitigation such as beneficial use for waste material; dust supression; covering soil and sand during transportation; planning work to minimise disruption of traffic and communities, providing temporary access across trenches, and prior public information etc. Besides, best construction methodology will be adopted to minimize the impacts. There may be issues due to labour from other areas and also from the need for labour camps. Local workers will be employed as much as possible to avoid these. One of the important impacts will be the disturbance and inconvenience to tourists, as Nainital is a major hill station that attracts tourists from all over. Measures such as conducting work near the tourist areas/area frequented by tourists in the lean season and minimizing inconvenience by best construction method will be employed. One of the main O&M activities will be water treatment including disinfection. Necessary measures for safe handling and application of chlorine are included. Detection, and repair of leaks and pipe bursts is another main activity. These are however likely to be minimal as proper design, and selection of good quality pipe material should mean that leaks are minimal. The residual chlorine level in the distribution lines will be ensured as per the norms. The Environmental and Safety measures at WTP will be ensured through Environmental Monitoring Plan. Public consultation has been conducted to understand the local issues and public views regarding the overall project and possible impacts. The IPMU will establish a mechanism to receive and facilitate resolution of affected persons’ concerns, complaints and grievances on subproject’s environmental performance.

B. ERA Assessment

The ERA assessment on following Likely to be classified as:

Category A under the EIA Notification of 2006 of GoI Category B under the EIA Notification of 2006 of GoI No category / Environmental Clearance not required under EIA Notification, 2006

The project site is not:

Within 10 km from the boundary of protected areas, notified areas and inter-state and international boundaries as defined under EIA Notification of 2006 of GoI

A part of National Parks/Sanctuaries and Tiger Reserve areas (notified as defined under Indian Wildlife (Protection) Act, 1972)

Near to reserved forest or protected forest as defined under Forest (Conservation) Act, 1980 (amended in 1988)

The subproject does not require:

Consent for Establishment and Consent for Operation under the Water (Prevention and Control of Pollution) Act, 1974 and/or the Air (Prevention and Control of Pollution) Act, 1981

Authorization for waste processing and landfills under Municipal Solid Waste (Management and Handling) Rules, 2000 of GoI.

‐ 15 ‐

Environmental Categorization Form

A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for approval by the Chief Compliance Officer (CCO). (ii) The classification of a project is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) In addition, the project team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A projects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or environmental impacts. B. Project Data

Country/Project No./Project Title : India/Loan No-2410/UUSDIP Department/ Division : UUSDIP/IPMU Processing Stage : Draft SAR for Approval. Modality :

[ ] Project Loan [ X ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ ] Other financing modalities:

C. Environment Category [ X ] New [ ] Recategorization ― Previous Category�[ ]

Category A {X} Category B

Category C

Category FI

D. Basis for Categorization/ Recategorization (pls. attach documents): [ X ] REA Checklist as ANNEXURE A [ X ] Project and/or Site Description [ ] Other: __________________________ E. Comments Project Team Comments: The Proposed Project of water supply rehabilitation and augmentation in Nainital fall under the Environmental Category “B” as its potential adverse environmental impacts are less adverse than those of category A projects The impacts are site specific and can be mitigated readily through EMP.

RSES Comments The Project Category as per ADB Safeguard Policy ( SPS) 2009 is “B” and IEE is required.

F. Approval Proposed by: Environmental Specialist, DSC-2

Endorsed by: Team Leader, DSC-2

Project Team Leader, {Department/Division} Director, RSES Date: Date:

Approved by: Dy Program Director, IPMU

Endorsed by: Environmental Officer, IPMU

Highly Complex and Sensitive Project

Chief Compliance Officer Director, {Division}

Date: Date:

‐ 16 ‐

15. INVOLUNTARY RESETTLEMENT A. Brief Description of Resettlement Issues

This proposed subproject of water supply system for Nainital is designed in such a way so as to minimize land acquisition and resettlement impacts. Tranche-2 works involve only laying/replacement of distribution and transmission lines. This will be undertaken mainly within the existing RoW of roads while transmission mains (lines from service reservoirs located at hill tops) will pass through forest areas. Laying/replacement of pipes within existing RoW envisage temporary impacts for short periods on roadside (movable) vendors. The activity will also create short term disturbance to residents and roadside commercial activities during construction. During RP preparation, a detailed census survey will be conducted for temporarily affected people (APs) and all these will be adequately compensated based on the UUSDIP RF. Since Nainital is a famous tourist destination and have tourist flow almost throughout the year except during monsoon (July-Sept), construction work at busy market places will be undertaken during this period. Otherwise, suitable temporary alternative sites will be suggested to enable them to continue their economic activities during construction. If required, alternate routes will be suggested for easy human/vehicular movement. RP Implementing/CAPP NGO will involve officials from UPJN/IPMU/Nagar Nigam and will conduct consultations with the APs and other residents to keep them informed about the project activities, impacts and benefits extended to them. A summary of RP including the details of sub-project will also be made available to APs in local language. The proposed sub-project components and associated land acquisition and resettlement impacts are given below.

S. No. Proposed Sub-component Land Acquisition and Resettlement Impacts 3 Laying/replacement of distribution mains

(80-350 mm diameter; 86% of these are 200 mm or less) for a length of 73.4 km, including distribution boxes (704 nos.) and house service connections (14,080 nos.)

Distribution lines will be buried 1m. below in a trench on the edge of the road within the existing RoW. However, will have temporary impacts on roadside businesses. Transmission lines will be laid above ground where it passes from forest lands and permission has been obtained from the forest department.

B. ERA Assessment

The ERA Assessment on following This Sub-project is unlikely to cause:

Loss of any private land for agricultural land, homestead land or vacant plot Loss of any government land for agricultural land, homestead land or vacant plot used by

(i) legal or (ii) illegal occupants Loss of residential structure including but is not limited to walls, fences, sheds, wells used

by (i) legal or (ii) illegal occupants Loss of commercial structure used by (i) legal or (ii) illegal occupants Loss of trees and crops Temporary loss of land Temporary disruption of livelihood Loss and temporary impacts on common resources

C. Involuntary Resettlement Category

Category A Category B Category C Category FI

‐ 17 ‐

INVOLUNTARY RESETTLEMENT IMPACT CATEGORIZATION

Date: _________________ A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for approval by the Chief Compliance Officer (CCO). (ii) The classification of a project is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) In addition, the project team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A projects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or environmental impacts. B. Project Data

Country/Project No./Project Title : India: Project-2 “Uttarakhand Urban Sector Development Investment Program

Department/ Division : Urban Development Department Processing Stage : Modality :

[ ] Project Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ ] Other financing modalities: C. Involuntary Resettlement Category [ ] New [ ] Recategorization ― Previous Category [ ]

Category A

Category B

Category C Category FI

D. Comments Project Team Comments: The Sub-project involves temporary impacts on roadside (movable) vendors. A census survey and preparation of Short Resettlement Plan is under process and will be completed by May 2011. Census Survey required for preparation of Short Resettlement Plan (SRP) will be conducted in the first week of May 2011 and it will be ready by the end of May 2011.

RSES Comments: The sub – project is categorize as “ B “ as per SPS 2009, a SRP is required

E. Approval Proposed by: R & R Expert DSC – II

Reviewed by: R & R Expert, IPMC

Project Team Leader, {DSC-II} Social Safeguard Specialist, RSDD/RSES Date: Date:

Endorsed by: SCDO, IPMU

Director, RSES Date: Endorsed by: SCDO, IPMU

Approved by: Dy Program Director

Highly Complex and Sensitive Project

Director, {Division} Program Director Chief Compliance Officer Date: Date:

‐ 18 ‐

16. INDIGENOUS PEOPLE DEVELOPMENT

A. Brief Description of Indigenous People

There are no IPs/ethnic minority groups (as defined by the ADB policy and by the Indian Constitution Article 342 and 366(25)) residing within sub-project locations/activity area.

B. ERA Assessment The ERA Assessment on following This Sub-project does not envisage any permanent/temporary impacts on IPs.

C. Indigenous People Development Category

Category A Category B Category C Category FI

‐ 19 ‐

INDIGENOUS PEOPLES IMPACT CATEGORIZATION

DATE: _________________

A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for approval by the Chief Compliance Officer (CCO). (ii) The classification of a project is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) The project team indicates if the project requires broad community support (BCS) of Indigenous Peoples communities. BCS is required when project activities involve (a) commercial development of the cultural resources and knowledge of indigenous peoples, (b) physical displacement from traditional or customary lands; and (c) commercial development of natural resources within customary lands under use that would impact the livelihoods or the cultural, ceremonial, or spiritual use that define the identity and community of indigenous peoples. (iv) In addition, the project team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A projects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or environmental impacts. B. Project Data

Country/Project No./Project Title : India: Project-2 “Uttarakhand Urban Sector Development Investment Program

Department/ Division : Urban Development Department Processing Stage : Draft SAR for Approval

a) Modality c)

[ ] Project Loan [ ] Progra n [ ] Financial Intermediary [ ] Generam Loa l Corporate Finance [ ] Sector Loan [ ] MFF [ gency A

] Emer ssistance [ ] Grant

[ ] Other financing modalities: C. Indigenous Peoples Category [ ] New [ ] Recategorization ― Previous Category [ ]

[ ] Category A [ ] Category B

[ Category C ] [ ] Category FI

[ ] Yes [ ] No D rt of . Project requires the broad community suppoigenous Peoples communities. affected Ind

E. Comments Project Team Comments: The sub-project will equally benefit all the population groups and consequently not differentially or adversely affect any

RSES Comments: The sub project category is “ C “ and no IPDP is required

group. F. Approval Proposed by: SDE, DSC Reviewed by:– II CDE, IPMC

Project Tea ader, {DSC-2} m Le Social Sa d Specialist, RSDD/RSES feguarDate: Date:

Endorsed by: SC DO, IPMU Director, R ESS Date: Endorsed by: SCDO, IPMU

Approved by:

Dy Program Director

nd

Project

Highly Complex aSensitiveDirector, {Division} Program Director Chief Com liance Officerp

Date: Date:

‐ 20 ‐

17. OTHER ISSUES, if any

Nil

‐ 21 ‐

Attachment-1

INITIAL POVERTY AND SOCIAL ANALYSIS Subproject - Water Supply Rehabilitation and Augmentation in Nainital

Initial Poverty Reduction and Social Strategy (IPSA) : A. Linkages to the Country Poverty Analysis

Sector identified as a National Priority in Country Poverty Analysis?

Yes Sector identified as a National Priority in Country Poverty Partnership Agreement

Yes

Contribution of the sector/sub sector to reduce poverty in India The main objective of UUSDIP is to promote economic growth in Uttarakhand State through developments in basic infrastructure services such as water supply , sewerage , sanitation , solid waste management , urban mass transport and other municipal functions in Nainital City and other important urban centers of the state . UUSDIP will also strengthen the service delivery systems of the responsible agencies of the State and urban local bodies through management reforms, capacity building and training. Indians poverty reduction strategy explicitly recognizes that while economic growth and service delivery are crucial for poverty reduction. Infrastructure development is critical as a catalyst for generating economic activities, employment and accelerating growth and for providing better integration India's various state and regions. Increasing trade with neighboring countries facilitated amongst other means through,providing sanitation, drinking water and roads contributes to micro-economic stability and reduced risk of shocks for the vulnerable and poor.

B. National Sample Survey Organization (NSSO)

Estimate of poverty are available from two main sources, one is the large surveys undertaken by the National Sample Survey Organization (NSSO) every five years and the second is from the State Government own's surveys conducted to identify households below the poverty line for the express purpose of benefiting under poverty alleviation programs. The status of Human Development Index in Uttaranchal has been examined in the light of National Human Development Report-2001. Results for the NSSO are available, wherein two estimates have been given. One is the poverty line head count ration depending on the official poverty line and the other is as suggested by the Expert Group set up by the Planning Commission on estimates of poverty. While there is still some lack of certainty on the head count ration, the recommendations of Expert Group are used, as calculated by NSSO's special study. According to the state government of Uttaranchal about 4,16,018 persons were identified as living below the poverty line in the year 2002. Based on the total population being 84,79,562 as per Census-2001 and the percentage of people living below the poverty line notified by the Planning commission, the total number of persons living below the poverty line can be estimated around 29.28 lakh which in distinctly higher than the figures estimated by the state government of Uttaranchal and compare to neighbouring state of Himachal Pradesh. In the absence of data not being made available by NSSO on per-capita expenditure pertaining to special category state, the state government should use existing machinery to identify the exact number of persons or families living below the poverty line fixed by the Planning commission. Those not willing to believe the extent of poverty mainly in the 11 hill districts of Uttaranchal, must know that today people are surviving in this hill state because of an estimated Rs. 320.00 crores of remittances coming yearly from migrant workers all over India and abroad. Poverty issues were also discussed with the local people during public consultations. The People living in this area welcomed. The present water supply scheme of the city is implemented by Uttarakhand Pay Jal Nigam and maintained by Uttarakhand Jal Sansthan. Water and sanitation are key instruments in reducing poverty, improving livelihoods, and promoting economic growth. The project will help finance investments for pro-poor and community-based water, sanitation, and solid waste management initiatives through measures that sustain service delivery and strengthen the capacity of the government, utilities, and communities.

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People mentioned that construction and maintenance will help to raise the quality of life in the area as there will be an improvement of income and livelihoods due to the creation of direct and indirect employment opportunities due to the project. In addition to the improvement in the infrastructural facilities people perceive that educational and health facilities shall also be improved.

C. Participation Process Participation consultation and informational disseminate was incorporated at several level during planning of the project (i) while conduction poverty and social assessments in communities along the water supply project and immediate corridor of impact. (ii) validating principles on which entitlements for compensation levels specified, in the entitlement matrix for the project are based (iii) minimizing adverse impact . Uttarakhand Pay Jal Nigam and Uttarakhand Jal Sansthan will ensure that essential participation focuses to be adhered to during implementation that will involve local people in (i) preparing final listing for compensation for project affected persons (both title and non-title persons) if any, and (ii) monitoring and evaluation during implementation of resettlement plan.

D. Gender and Development Process Women will be benefited from the project through improved access to basic services like water, sanitation, health, etc. In the project areas gender balance will be ensured by means of equal women participation in various activities like women as a labour and equal wages to both the gender. The project will also sensitize them on safety and security measures and support them to develop a favorable and comfortable working culture at construction site. Therefore, project will have positive impact on women in terms of employment opportunity.

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Attachment-2

RAPID ENVIRONMENTAL ASSESSMENT (REA) CHECKLIST (REVISED) Subproject - Water Supply Rehabilitation and Augmentation in Nainital

A. Screening Questions for Impact Categorization Check the appropriate box (e.g. by double-clicking the box and selecting ‘checked’ in default vale)

Screening Questions Yes/No Remarks A. Project Siting

Is the project area…

• Densely populated? Yes No

Distribution network will extend to entire town. Nainital is densely populated hill town surrounded by hilly forest areas.

• Heavy with development activities? Yes No

There are no major development activities

• Adjacent to or within any environmentally sensitive areas?

Yes No

No; however most of the hills in and around the town are under forests. Some of the pipelines, laid from outside the town pass through these areas. No impact however is envisaged due to the proposed pipelines.

• Cultural heritage site Yes No

There is no cultural heritage site in the project area.

• Protected Area Yes No

There are forests within the town limits; some distribution lines likely pass through forests.

• Wetland Yes No

No

• Mangrove Yes No

No

• Estuarine Yes No

No

• Buffer zone of protected area Yes No

No

• Special area for protecting biodiversity Yes No

No

• Bay Yes No

No

Potential Environmental Impacts Will the Project cause…

• Pollution of raw water supply from upstream wastewater discharge from communities, industries, agriculture, and soil erosion runoff?

Yes No

Subproject involves no source development/ augmentation. There is no risk of pollution for existing sources

• Impairment of historical / cultural monuments / areas and loss / damage to these sites?

Yes No

There is no historical / cultural monument in the project location.

• Hazard of land subsidence caused by excessive ground water pumping?

Yes No

No source augmentation proposed in the subproject

• Social conflicts arising from displacement of communities?

Yes No

The subproject does not involve land acquisition or displacement.

• Conflicts in abstraction of raw water for water supply with other beneficial water uses for surface and ground waters?

Yes No

No source augmentation proposed in the subproject

• Unsatisfactory raw water supply (e.g. excessive pathogens or mineral constituents)?

Yes No

Raw water is fit for drinking after conventional treatment/disinfection. Raw water testing before and after treatment is routine practice by Jal Sansthan.

• Delivery of unsafe water to distribution system? Yes No

Raw water will be given adequate treatment prior to supply into distribution system.

• Inadequate protection of intake works or wells, leading to pollution of water supply?

Yes No

Subproject involves no source development/ augmentation. There is no risk of pollution for existing sources

• Over pumping of ground water, leading to salinization and ground subsidence?

Yes No

Subproject involves no source development/ augmentation. The extraction will be at the existing levels.

‐ 24 ‐

Screening Questions Yes/No Remarks • Excessive algal growth in storage reservoir? Yes

No Regular cleaning of storage reservoir shall be ensured to avoid algal growth in the reservoir.

• Increase in production of sewage beyond capabilities of community facilities?

Yes No

Sewerage system of adequate capacity including treatment will be developed under UUSDIP

• Inadequate disposal of sludge from water treatment plants?

Yes No

No WTP is proposed in the subproject

• Inadequate buffer zone around pumping and treatment plants to alleviate noise and other possible nuisances and protect facilities?

Yes No

No pumping stations are proposed in the subproject

• Impairments associated with transmission lines and access roads?

Yes No

Temporary impairment with access roads is anticipated during construction. Restoration of damaged roads will be ensured as soon as the work is completed. Diversions shall be provided with consultation with local people where blocking of roads is needed.

• Health hazards arising from inadequate design of facilities for receiving, storing, and handling of chlorine and other hazardous chemicals.

Yes No

No such facilities proposed in the subproject

• Health and safety hazards to workers from the management of chlorine used for disinfection and other contaminants?

Yes No

No such facilities proposed in the subproject

• Dislocation or involuntary resettlement of people Yes No

Subproject does not involve land acquisition or displacement. However, there may be temporary disturbance to business and squatters/vendors during construction. Appropriate measures will be suggested to mitigate the impact.

• Social conflicts between construction workers from other areas and community workers?

Yes No

Local workers shall be encouraged for engaging for different construction activities.

• Noise and dust from construction activities? Yes No

Short term impact on air quality due to dust generation during construction activities is anticipated. Appropriate dust suppression measures will be taken to minimize dust generation due to construction activities at site. No significant increase in noise level is anticipated due to construction. All equipment and machineries will conform to the Statutory norms.

• Continuing soil erosion / silt runoff from construction operations?

Yes No

Construction activities (pipe laying, etc.) on hill slopes may increase the chance of land slide and soil erosion. Careful stacking of excavated materials will be ensured to avoid slippage and erosion especially on hill slopes. Proper back filling followed by compaction shall be ensured. Construction work during monsoon shall be carried out with due care so that silt run off due to construction operation is prevented. No construction will be allowed during rains.

• Increased road traffic due to interference of construction activities?

Yes No

Proper traffic management and planning will be ensured during construction.

• Delivery of unsafe water due to poor O&M treatment processes (especially mud accumulations in filters) and inadequate chlorination due to lack of adequate monitoring of chlorine residuals in distribution systems?

Yes No

Trained and skilled staff will be deployed for O&M. Also, quality of treated water will be regularly monitored through water sample testing to ensure delivery of safe water to consumers.

• Delivery of water to distribution system, which is corrosive due to inadequate attention to feeding of corrective chemicals?

Yes No

GI and DI pipes will be used for distribution system and are non corrosive in nature.

• Accidental leakage of chlorine gas? Yes No

Only liquid chlorine will be used.

• Excessive abstraction of water affecting downstream water users?

Yes No

Subproject involves no source augmentation

• Competing uses of water? Yes No

No

• Increased sewage flow due to increased water supply

Yes No

Upgradation of sewerage system and sewage treatment facilities will be taken up under ADB program.

• Increased volume of sullage (wastewater from Yes Upgradation of sewerage system and sewage treatment

‐ 25 ‐

‐ 26 ‐

Screening Questions Yes/No Remarks cooking and washing) and sludge from wastewater treatment plant

No facilities will be taken up under ADB program.

Large population influx during project construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

Yes No

No such impact anticipated; local communities in the vicinity of the project would be employed as much as possible.

Risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during operation and construction?

Yes No

Not applicable. Construction will not involve use of explosives and chemicals.

Community safety risks due to both accidental and natural hazards, especially where the structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

Yes No

Operational area will be clearly demarcated and access will be controlled. Only worker and project concerned members will be allowed to visit the operational sites. During operation no such issues anticipated.

Climate Change and Disaster Risk Questions Yes No Remarks

The following questions are not for environmental categorization. They are included in this checklist to help identify potential climate and disaster risks.

Is the Project area subject to hazards such as earthquakes, floods, landslides, tropical cyclone winds, storm surges, tsunami or volcanic eruptions and climate changes (see Appendix I)?

√ According to hazard zoning in the Vulnerability Atlas of India, the whole of Uttarakhand falls under “very high” to “high” category earthquake zone.

The alignment of pipeline carrying water will pass through undulating hilly terrain. Necessary precautions are to be taken for protection of pipeline in hilly area. Adequate protection measures for vulnerable landslide zones will be taken.

Could changes in temperature, precipitation, or extreme events patterns over the Project lifespan affect technical or financial sustainability (e.g., changes in rainfall patterns disrupt reliability of water supply; sea level rise creates salinity intrusion into proposed water supply source)?

√ No such possibility within the lifespan of the project

Are there any demographic or socio-economic aspects of the Project area that are already vulnerable (e.g, high incidence of marginalized populations, rural-urban migrants, illegal settlements, ethnic minorities, women or children)?

√ No

Could the Project potentially increase the climate or disaster vulnerability of the surrounding area (e.g., by using water from a vulnerable source that is relied upon by many user groups, or encouraging settlement in earthquake zones)?

√ No such possibility of vulnerability increase of the surrounding area.

B. IPMU’s Assessment checklist, what is the IPMU’s assessment on the Categorization and Planning

Requirement for this subproject? Category A. A proposed project is classified as category A if it is likely to have significant

adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment is required.

Category B. A proposed project is classified as category B if its potential adverse

environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination is required.

Category C. A proposed project is classified as category C if it is likely to have minimal or

no adverse environmental impacts. No environmental assessment is required although environmental implications need to be reviewed.

Category FI. A proposed project is classified as category FI if it involves investment of

ADB funds to or through a FI

‐ 27 ‐

‐ 28 ‐

Attachment-3

INVOLUNTARY RESETTLEMENT IMPACT CATEGORIZATION CHECKLIST

Probable Involuntary Resettlement Effects

Yes No Not Known

Remarks

Involuntary Acquisition of Land

1. Will there be land acquisition?

- - Laying/replacement of distribution lines will be carried out within the existing RoW and no permanent land acquisition and resettlement is envisaged.

2. Is the site for land acquisition known? - - - Not Applicable 3. Is the ownership status and current usage of land to be acquired known?

- - - Not Applicable

4. Will easement be utilized within an existing Right of Way (ROW)?

- - The existing RoW will be utilized for the laying of distribution lines.

5. Will there be loss of shelter and residential land due to land acquisition?

- - -

6. Will there be loss of agricultural and other productive assets due to land acquisition?

- - -

7. Will there be losses of crops, trees, and fixed assets due to land acquisition?

- - -

8. Will there be loss of businesses or enterprises due to land acquisition?

- - Laying/replacement of distribution lines may envisage temporary disturbance to roadside commercial activities.

9. Will there be loss of income sources and means of livelihoods due to land acquisition?

- - Laying/replacement of distribution lines may envisage temporary disturbance to roadside (movable) vendors who have encroached on RoW.

Involuntary restrictions on land use or on access to legally designated parks and protected areas

10. Will people lose access to natural resources, communal facilities and services?

- - The sub-project activities may temporarily affect access to public utilities like electricity, telephone connectivity, water supply etc.

11. If land use is changed, will it have an adverse impact on social and economic activities?

- - The subproject does not envisage any permanent change in the land use, affecting socio-economic activities.

12. Will access to land and resources owned communally or by the state be restricted?

- - The sub-project activities will not affect any such access

Information on Displaced Persons: Any estimate of the likely number of persons that will be displaced by the Project? [ ] No [ ] Yes If yes, approximately how many? ______________________ Number of APs will be known after completion of Census Survey Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes Number of APs will be known after completion of Census Survey. At present it is not known if any of the APs are poor, female headed or vulnerable. Are any displaced persons from indigenous or ethnic minority groups? [ ] No [ ] Yes

Attachment-4

‐ 29 ‐

INDIGENOUS PEOPLES IMPACT SCREENING CHECKLIST

KEY CONCERNS

(Please provide elaborations on the Remarks column)

YES NO NOT KNOWN Remarks

A. Indigenous Peoples Identification

1. Are there socio-cultural groups present in or use the project area who may be considered as "tribes" (hill tribes, schedules tribes, tribal peoples), "minorities" (ethnic or national minorities), or "indigenous communities" in the project area?

- - There are no IPs (as defined by the ADB policy and the Government of India) within sub-project locations/activity area. The activities are mainly confined to urban and surrounding peri urban areas which has very small percentage of scheduled Tribe (ST) population. As per Census 2001, the STs in Uttarakhand are predominantly living in rural areas (94% in rural and just 6% in urban areas). The STs residing in sub-project area are not distinct but part of mainstream population. If such mainstreamed STs are found affected during preparation of SRP, will be treated as vulnerable category. They will be adequately compensated based on the UUSDIP RF.

2. Are there national or local laws or policies as well as anthropological researches/studies that consider these groups present in or using the project area as belonging to "ethnic minorities", scheduled tribes, tribal peoples, national minorities, or cultural communities?

- -

3. Do such groups self-identify as being part of a distinct social and cultural group?


4. Do such groups maintain collective attachments to distinct habitats or ancestral territories and/or to the natural resources in these habitats and territories?


5. Do such groups maintain cultural, economic, social, and political institutions distinct from the dominant society and culture?


6. Do such groups speak a distinct language or dialect?


7. Has such groups been historically, socially and economically marginalized, disempowered, excluded, and/or discriminated against?


8. Are such groups represented as "Indigenous Peoples" or as "ethnic minorities" or "scheduled tribes" or "tribal populations" in any formal decision-making bodies at the national or local levels?


B. Identification of Potential Impacts

9. Will the project directly or indirectly benefit or target Indigenous Peoples?

- - -

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(Please provide elaborations on the Remarks column)

YES NO NOT KNOWN Remarks

KEY CONCERNS

10. Will the project directly or indirectly affect Indigenous Peoples' traditional socio-cultural and belief practices? (e.g. child-rearing, health, education, arts, and governance)

- - -

11. Will the project affect the livelihood systems of Indigenous Peoples? (e.g., food production system, natural resource management, crafts and trade, employment status)

- - -

12. Will the project be in an area (land or territory) occupied, owned, or used by Indigenous Peoples, and/or claimed as ancestral domain?

- - -

C. Identification of Special Requirements Will the project activities include:

13. Commercial development of the cultural resources and knowledge of Indigenous Peoples?

- - -

14. Physical displacement from traditional or customary lands?

- - -

15. Commercial development of natural resources (such as minerals, hydrocarbons, forests, water, hunting or fishing grounds) within customary lands under use that would impact the livelihoods or the cultural, ceremonial, spiritual uses that define the identity and community of Indigenous Peoples?

- - -

16. Establishing legal recognition of rights to lands and territories that are traditionally owned or customarily used, occupied or claimed by indigenous peoples?

- - -

17. Acquisition of lands that are traditionally owned or customarily used, occupied or claimed by indigenous peoples?

- - -

D. Anticipated project impacts on Indigenous Peoples Not Applicable

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Attachment-5

ECONOMIC AND FINANCIAL ANALYSIS A. Economic Analysis

Considering the existing water supply problems due to the technical problems like high UFW and less water production resulting in high demand gap, the water supply sub-projects identified under various tranches have sound rationale and justification for government intervention. Under Tranche-1, water supply augmentation was taken up to fill the identified gap for the water supply system in Nainital. In Tranche-2 rationalization of the distribution system which is causing considerable system leakage is taken up. For the present analysis, the sub projects identified under Tranche- 1 and 2 are considered together. Analysis Period: The analysis period of the project is taken as 33 years from the base year 2010, with 30 years operation period, as follows: • Base Year 2010-11 • Construction period – 2011-12 to 2013-14 • Project opened start year – 2014-15 • End of the analysis period –2043-44 No. of operating years after project improvement, considered for economic analysis – 30 years. Thus, 30 years of operation, in effect, from the operation start of the proposed project i.e. 2014-15, has been considered for economic evaluation for the project road. Economic Cost: Project financial cost (Base Cost) is estimated to Rs. 749 million. Considering the contingency and allowances of additional 12%, the total project financial cost was worked out to Rs. 934 million and this is phased during the three year construction period. Considering the standard procedures recommended for economic feasibility analysis, the above financial cost was converted into economic cost for the analysis. Project Benefits: • Resource Cost Saving in non-incremental water • Reduction in house health expenditure and savings in earning loss during sick days • Reduction in time spent in water collection. Economic Feasibility Criteria: The cost – benefit analysis is carried out by using the discounted cash flow (DCF) technique to obtain the economic internal rate of return (EIRR) and economic net present value (ENPV) for the proposed investments and the likely quantified project benefits linked with the project during the defined project analysis period. Economic Opportunity Cost of Capital (EOCC): Given the complexity of estimating country-specific economic opportunity cost of capital (EOCC), a discount rate of 12% in constant economic prices is generally used as a proxy for EOCC in the economic analysis of ADB-financed projects. The EIRR must be compared with the economic opportunity cost of capital, for interpretation purpose of project feasibility. Results of the analysis are presented in below table and Appendix 1.

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Economic Cost-Benefit Analysis for Water Supply Components (Tranche- 1 & 2), Nainital Details Present Value

(Rs. million) a/ Costs Capital costs Water Supply 648 O&M costs Water Supply 534 Total costs 1182 Benefits Resource Cost savings for Non-incremental water 53 Avoided costs of -health care & earning lost due to illness 792 - reduced time in water collection 1051 Total benefits 1896 Economic Return Measures Net present value (Rs. Million) 715 EIRR (%) 22.10%

Note: a/ In 2009-10 prices. Discounted to 2010-11 at 12% real discount rate. Sensitivity Analysis: Sensitivity analysis was carried out to their economic feasibility results for the following scenarios: • Capital cost increase by 20% • O&M costs increased by 20% • Target beneficiaries reduced by 20% • Delay in accrual of benefit by 1 year • Combined adverse condition Results of the sensitivity analysis for the proposed project are summarized in below table. Sensitivity Analysis for Water Supply Component (EIRR) – Nainital Tranche- 1 & 2

Details EIRR Main Evaluation (Base Case) a/ 22.10% Capital Cost Overrun b/ 19.16% Switching Value c/ 110.00% O&M Cost Overrun d/ 20.65% Switching Valuec/ 134.00% Decrease in Project Benefits e/ 17.01% Switching Valuec/ 37.00% One Year Delay in Implementation 22.09% All Four Tests Combined 13.19%

a/ From Table - “Economic Cost-Benefit Analysis for Water Supply Components (Tranche- 1 & 2), Nainital”. b/ 20% increase in capital cost. c/ Calculated as the percentage change in a variable required for EIRR to reduce to 12%. d/ 20% increase in O&M cost. e/ Decrease in project benefits by 20%. Of the four sensitivity scenarios (cost overrun, O&M cost increase, reduced beneficiaries, delay in implementation) reduced beneficiaries is the most vulnerable to EIRR, followed cost overrun. Considering

‐ 33 ‐

the more sensitiveness of these variables, following implementation arrangements need to be focused more so as minimize the project risk: • Ensuring adequate project coverage of beneficiaries through advance commitment from HHs for

individual access or making mandatory for all individual access through project design; • Timely implementation of the project through appropriate procurement method in which incentive for

early completion may be included; • Adequate focus for LA related project components Conclusion: The main evaluation has indicated that the proposed water supply sub projects under Tranche-1 & 2 for Nainital Town was found to be economically viable, with the calculated EIRR values exceeding the economic opportunity cost of capital. The sensitivity analysis has demonstrated that this result comparatively weak when the combination of changed assumptions was tested for viability. Furthermore, for the proposed water supply subproject, the calculated EIRR value is considered minimum estimates of economic return, as there are a number of economic benefits of reduced pollution, a cleaner city and improved waterway environment that have not been quantified.

B. Financial Analysis The revenue streams for the financial analysis of sub project include connection fee for new connections and a monthly charge. As property tax based levy (Water Tax) was abolished in the state1, it was not considered for the analysis. A decision on implementing the above discussed revenue stream (monthly charge and connection fee) is critical to project sustenance. Apart from a revision on completion of the capital works, it would be necessary to revise the sewer user charges periodically so as to compensate the increasing O&M cost. The key assumptions used for analysis include: • maintaining the existing user charges for domestic and applying a differential rate for non-domestic

irrespective of above; • revision to the user charge periodically; • maintain tax collection percentages at least 80% of the demand, • implementing the project on schedule Initial project capital cost (Base Cost) is estimated to Rs. 739 million to be implanted during the three year constriction period. Project Capital Cost - Rs Million – (Tranche 1 & 2)

Details Total Base Cost 739 Landed Cost 937

Financial sustainability and viability analysis and the sensitivity analysis results in terms FIRR are presented in below table and Appendix 2. In the outset, even after implementing the proposed user charges, the project was not financially viable considering the present WACC of 3.5%. Also, the project revenue stream could not meet the 100% O&M recovery from the operation start year with the present tariff system.

1 The Uttarakhand assembly passed a bill abolishing water and sewer tax in the state in 2008 but with the

proposals to increase water price and sewer connection by 15 per cent after every two years.

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Weighted Average Cost of Capital (%) - Uttaranchal

Item

ADB Loan Counterpart Equity

WACC Govt. of India Onlending b

Govt. of India Grant a

Govt. of India Grant a

Govt. of Uttaranchal d

Amount weighting 7% 63% 20% 10% Nominal cost 4.31% 8.50% 8.50% 8.50% Tax Rate 0 0 0 0 Tax-Adjustable Nominal Cost 4.31% 8.50% 8.50% 8.50%

Inflation Rate c 0.70% 5.00% 5.00% 5.00% Real Cost 3.61% 3.50% 3.50% 3.50%

Weighted Component of WACC 0.25% 2.21% 0.70% 0.35% 3.51% WACC = weighted average cost of capital, a - Nominal cost of Government of India grant is estimated at 8.5%, based on the Government’s long-term bond rate.

b - Indicative Lending Rates for Loans under the LIBOR-Based Loan Facility & Cap/Collar Premiums for Floating Rate Loans, Treasury Department, ADB, May 2011. From this 20 year period rate is considered.

c - Global Price escalation is based on - INTERNATIONAL COST ESCALATION FACTORS 2008–2012, World Bank, Table 1.1 The global outlook in summary. Global Development Finance 2008: The Role of International Banking, page 8.

d - State terms for counterpart equity of 10% rate with 10 years repayment is considered.

Financial Viability Sensitivity Analysis Results – WS Subproject, Nainital (Tranche- 1 & 2)

Component Base Case

Capital cost increase by

10%

O&M cost increase by 10%

Project Revenue decrease by

10%

Project Revenue delay by one year

WS, Tr II, Nainital #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Note: Base Case refers to the Scenario with the assumption of implementing FIAP user charge proposals, without sensitivity test. #DIV/0! – No Result Of the four sensitivity scenarios (cost overrun, O&M cost increase, reduced beneficiaries, revenue delay by one year) Project Revenue delay by one year is the most vulnerable to FIRR, followed by reduced beneficiaries and cost overrun. Considering the more sensitiveness of these variables, following implementation arrangements need to be focused more so as minimize the project risk: • Timely implementation of the project user charges through appropriate method; • Timely implementation of the project through appropriate procurement method in which incentive for

early completion may be included; • Ensuring adequate project coverage of beneficiaries through advance commitment from HHs for

individual access or making mandatory for all individual access through project design; • Adequate focus for LA related project components Conclusion: The main evaluation has indicated that the proposed water supply sub projects for Nainital under Tranche 1 & 2 is found to be financially not viable, with the calculated FIRR values is below the WACC (3.5%), for the recommended user charges under FIAP. Also, the project could not ensure 100% O&M recovery from the operation start year.

Appendix 2: Financial Feasibility Analysis – Water Supply Component - Nainital, Uttaranchal all values in Rs. Million

Year Capital Cost O & M Cost User Charges

Connection Fee for New Connections

Total Net Revenue

2010-11 - - 0.00 0.00 0.00 0.00 2011-12 234.13 - 0.00 0.00 0.00 -234.13 2012-13 468.25 - 0.03 0.00 0.03 -468.23 2013-14 234.13 50.38 8.32 0.00 8.32 -276.19 2014-15 - 100.76 24.45 0.04 24.49 -76.27 2015-16 - 100.76 24.58 0.09 24.67 -76.09 2016-17 - 100.76 24.71 0.09 24.79 -75.97 2017-18 - 100.76 28.56 0.10 28.66 -72.10 2018-19 - 100.76 28.71 0.10 28.81 -71.95 2019-20 - 100.76 28.86 0.10 28.96 -71.80 2020-21 - 100.76 33.36 0.12 33.48 -67.28 2021-22 - 100.76 33.53 0.12 33.65 -67.11 2022-23 - 100.76 33.71 0.12 33.83 -66.93 2023-24 - 100.76 38.97 0.14 39.11 -61.65 2024-25 - 100.76 39.17 0.14 39.31 -61.45 2025-26 - 100.76 39.37 0.14 39.51 -61.25 2026-27 - 100.76 45.52 0.16 45.68 -55.08 2027-28 - 100.76 45.75 0.16 45.91 -54.85 2028-29 - 100.76 45.99 0.16 46.15 -54.61 2029-30 - 100.76 53.16 0.19 53.35 -47.41 2030-31 - 100.76 53.44 0.19 53.63 -47.13 2031-32 - 100.76 53.72 0.19 53.91 -46.85 2032-33 - 100.76 62.10 0.22 62.32 -38.44 2033-34 - 100.76 62.42 0.22 62.64 -38.12 2034-35 - 100.76 62.75 0.22 62.97 -37.79 2035-36 - 100.76 72.53 0.26 72.79 -27.97 2036-37 - 100.76 72.91 0.26 73.17 -27.59 2037-38 - 100.76 73.29 0.26 73.55 -27.21 2038-39 - 100.76 84.72 0.30 85.02 -15.74 2039-40 - 100.76 85.17 0.30 85.47 -15.29 2040-41 - 100.76 85.61 0.30 85.91 -14.85 2041-42 - 100.76 98.96 0.35 99.31 -1.45 2042-43 - 100.76 99.48 0.35 99.83 -0.93 2043-44 - 100.76 99.99 0.35 100.35 -0.41

Total 936.51 3,073.18 1,643.85 5.74 1,649.60 (2,360.09) NPV at 3.516% 844.68 1,656.18 772.94 2.67 775.61 (1,725.26)

FIRR (%) #DIV/0!

mailto:NPV@%20%204.2%25

Attachment-6

COMPLIANCE WITH THE SUBPROJECT ELIGIBILITY CRITERIA

S. No. Eligibility Criteria Compliance Item 1. Technical Criteria 1a. The subprojects are identified through the town and infrastructure

master plans and any changes thereafter are consistent with it. The subproject is technically sound and preliminary design will have been prepared.

Subproject is prepared in line with Water Supply Master Plan submitted. Subproject has been prepared considering all technical parameters and design accordingly to make them technically sound.

1b. The subprojects are designed seismic resistant in accordance with relevant Indian codes.

Yes, wherever applicable.

Large scale ground abstraction for augmenting water supply in Nainital will be undertaken only if there is adequate availability of ground water in the command area with no adverse depletion records of the water table in past 5 years to be established through a hydro-geological investigation followed by opinion of Central Groundwater Board before going for undertaking the subcomponent. For other towns as the ground water abstraction is in the lower range, a general study of ground water table shall be carried out taking experiences of the local inhabitants and report prepared and approved by GoU prior to undertaking the subcomponent.

The ground water resources evaluation of Nainital by Central Ground Water Board reflects that in the hilly tract, structural disjunctions, viz. faults, joints, lineaments and fracture systems along with deeply weathered zones hold promising prospects for future groundwater development (Source: Central Ground Water Board, Ministry of Water Resources, Govt. of India).

1c.

1d. Water supply and sewer lines are laid on two different sides of the road and water supply lines are always laid at a higher level than the sewers.

Water supply and sewer lines are proposed to be laid on two different sides of the road, However, the water supply lines will be laid at higher level than the sewers wherever they will be laid on the same side of road.

1e. Separate accounting is established by the service provider for urban water supply and sewerage prior to commencement of civil works.

Separate O&M model shall be applied for water and sewerage infrastructure.

1f. Civil works of subprojects be synchronized for least disruption in works and required quality.

QA/AC manual will be prepared for the project in line to take care of such issues.

Item 2. Financial and Institutional Criteria 2a. Subprojects for which funding was sanctioned under JNNURM or

any other program with grant funding are not eligible for funding under the Investment Program.

The subproject does not receive any funding under JNNURM or other grant funding.

2b. Subprojects must demonstrate financial and institutional sustainability.

Financial and institutional sustainability examined and found adequate.

The EA will demonstrate financial soundness of the investment into subproject by preparing a financial management assessment and analysis, in accordance with Chapter 3, 4 and 5 of Handbook for Borrowers on the Financial Management and analysis of Projects (2006). Financial Management assessment will be conducted for both each implementing body of the works and each owner of the asset created by each subproject. Financial analysis will be conducted for each subproject and owner of the asset who will be responsible for operation and maintenance (O&M)

Financial analysis is undertaken and found to be sound.

2c.

2d. The respective ULBs/utility agencies shall agree to take over O&M of infrastructure assets and facilities created under the Investment Program along with existing facilities and make sufficient provision for O&M in their budget.

It is agreed that Uttarakhand Jal Sansthan will take over the operation and maintenance.

Item 3. Economic Criteria 3a. The subprojects selected will be based on

a) consumer demand analysis indicating that people are willing to pay the connection charges and monthly tariffs to access the

a) Based in CPHEEO standards b) Based on projected needs for 30 years c) Undertaken

Eligibility Criteria Compliance S. No. improved services,

b) project rationale identification, c) project alternative identification and least cost analysis, d) cost and benefit analysis indicating the economic internal rate of

return equal or exceeding the economic opportunity cost of capital (EOCC) for the State of Uttarakhand,

e) assessment of project sustainability and sensitivity and risk analysis, and

f) tariff analysis including equity consideration in tariff structure, willingness to pay and affordability in case of a revenue generating subproject.

d) Cost benefit analysis used discounted cash flow to obtain EIRR and found above EOCC, which was taken as 12% e) Project sustainability, sensitivity and risk analysis undertaken f) Analysis considered findings based on surveys conducted

3b. The EIRR of the water supply subprojects should be at least 12%. The EIRR is 22.10% Item 4. Social Criteria 4a. All subprojects should have resettlement plan(s) in accordance with

ADB’s Resettlement Framework of the Investment Program. The Sub-project involves temporary impacts on roadside (movable) vendors and agricultural landowners. A census survey and preparation of Short Resettlement Plan is under process and will be completed by May 2011.

4b. All subprojects should have indigenous peoples development plans in accordance with the Indigenous Peoples Development Framework of the Program, wherever applicable.

There are no IPs/ethnic minority groups (as defined by the ADB policy and by the Indian Constitution Article 342 and 366(25)) residing within sub-project locations/activity area. The proposed sub-project does not require any IPDP.

Item 5. Environmental Criteria 5a. All subprojects should meet environmental subproject selection

guidelines and will have initial environmental examination (IEE) including environmental monitoring plan (EMP) in accordance with environmental assessment and review framework (EARF) as per ADB guidelines and shall have sufficient budget allocation to meet the cost.

The subproject complies with ADB guidelines.

Item 6. Procedures 6a. All necessary India and GoU approvals are in place No approval from Central Government is

necessary. Approval from State Government is already obtained.

6b. GoU will facilitate providing required land free of any encumbrances to the implementing agencies for implementation of the subprojects.

All temporarily affected people will be adequately compensated based on the SRP and informed to move to other suitable locations prior to the start of construction activity.

Attachment-7 SITE CLEARANCES TIMEFRAME

Name of the Subproject: Water Supply Rehabilitation and Augmentation in Nainital

To be obtained from Notification to be issued to competent authority

(Date)

Surveys and hearing of objection / observation

(Date) Deposit of payment,

if any (Date) Obtaining final clearances

(Date) Clearances Target Actual Target Actual Target Actual Target Actual

Environmental Clearance from forest department for laying of pipelines through forest areas Land acquisition

None NA NA April 2011 April 2011 May-June 2011

May-June 2011

NA NA Temporary Land Clearance

Utility Shifting Nil. However, utilities like telephone cables or water connection (house service connections may be encountered during execution, which will be taken care of. Right of Way Acquisition

National Highway Authority of India, Delhi National Highway

There is no National Highway in the alignment of the distribution pipeline network. NA NA NA NA State PWD Roads State Public Works Department Permission for road cutting has already been obtained through GO No. 50/111/(3)/2011-905 (ADB/2011, dated 9 Feb., 2011. City Roads Nagar Palika Parishad, Nainital Comprehensive proposal for all pipes to be laid on drawing and location is to be submitted to get a general NOC / Permission for road cutting for laying of transmission mains and distribution mains.

15 May, 2011

NA NA

NA

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