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: Rehabilitation and Augmentation of Water Supply in Roorkee

      

UTTARAKHAND URBAN SECTOR DEVELOPMENT

INVESTMENT PROGRAM ADB LOAN No. 2410-IND Tranche 2

SUB-PROJECT APPRAISAL REPORT

REHABILITATION AND AUGMENTATION OF WATER SUPPLY IN ROORKEE

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. 1. SUB-PROJECT NAME : Rehabilitation and Augmentation of Water Supply in Roorkee

2. SUB-PROJECT TOWN : Roorkee

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 US$ 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 municipality of Roorkee was created in 1868, when it was already home to the Bengal Sappers and Miners since 1853, and two artillery units were stationed here. Today, the Roorkee Cantonment has a large army base with headquarters for Bengal Engineering Group and Centre (BEG&C), also known as Bengal Sappers, established in 1803. Later in 1901, when the city had a population of 17,197, it was made headquarters of the Roorkee Tehsil, in Saharanpur district of the United Province of the British Rule; the tehsil included in it 426 villages (of the parganas of Jwalapur, Manglaur and Bhagwanpur) and six towns, most important among them being Haridwar and Manglaur. The old cemetery in the city is today a protected monument, by Archaeological Survey of India. The city has been utilizing ground water as its primary source of water supply since 1948. The first water supply scheme for providing piped water supply was executed in year 1948 for a population of 30,000, with supply level of 112 lpcd. Two tube wells each having a yield of 2,150 lpm and 1,350 lpm, and one over head tank of 450 KL capacity was constructed in this scheme at Gandhi Vatika. In addition to the water distribution system for the town, staff quarter and other connected works were also executed under this scheme. During the year 1966, it was felt that most of the new areas were without adequate drinking water supply facility. In view of this a plan for augmentation of Roorkee Water Supply was prepared with an estimated cost of INR 1.101 million. This water supply scheme was prepared for a population of 66,000. In reorganization plan, Roorkee town was divided in to two distribution zones, Zone I comprising eastern part to the Ganga Canal and some portion of western side of canal. Second zone consisting of the rest of the town was proposed to be benefited by new water works proposed at Maqtoolpuri with new areas being covered by new pipe line in this zone. Third reorganization scheme amounting to INR 1.082 million was prepared in the year 1984-85 for design period of 2014 and design population of 1,12,600. Under this scheme the town was divided into three zones for the mixed utilization of water facilities Further to the above reorganization scheme some piece meal works were taken as and when required on emergency basis. This includes construction of tube-wells for replacing the failed tube-wells and adding new tube-wells and over head tanks to meet the water requirements. However, after 1984-85 no planned water supply reorganization scheme has been implemented for Roorkee Town.

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In the year 2004 Uttarakhand Pey Jal Nigam prepared a detailed project report for reorganization of water supply for Roorkee Town with an estimated cost of INR 12.28 million, however it has not been implemented. The total population as per 2001 census is 97,064 and the average yearly growth rate is about 3.1%. The existing water supply system in Roorkee city is more than 30 years old. A condition survey was carried out with the help of line agency staff wherein the assessment of existing pipelines was done. It was found that the existing pipeline is majorly of PVC and AC. In the areas of old Roorkee the condition of existing water supply pipes is not good as presence of coliforms was found in the samples collected from the end users indicating chances of contamination. The samples were analyzed by the PCRI, BHEL. In-spite of the adequate water sources availability (for the present population) and assessed water production of about 28.42 MLD, the actual supply at the consumer end is only 11.37 MLD, this is mainly due to the huge losses in the system, poor condition of pumping machinery and erratic electricity supply. The per capita supply at the consumer end 85 lpcd varies from 70 lpcd to 100 lpcd. Average supply duration is 3 hours, ranging from 2- 4 hours and average water pressure at the ferrule end is 6 m head varying from 2 m head to 10 m head. The present source of water supply for Roorkee town is through 16 tube-wells which are in operation and another 4 additional Tube-wells constructed by Uttarakhand Jal Sansthan will be put to operation very soon. After the analysis of tube-well data provided by UPJN, it is found that almost 8 tube wells are discharging near to half of their original yield. This may be due to many reasons such as proximity of tube wells with each other, failure of screen, old pumping machinery, drawdown in ground water table etc. To clearly identify the reason for drop in yield and methods to rehabilitate these tube wells, a hydro-geological study is proposed to be taken up in parallel to this proposed package of water distribution system through another package. After the recommendations of this study a package for new tube wells, rehabilitation of existing tube wells and rising mains from tube wells to OHT shall be finalized and taken up in Tranche-3 of UUSDIP. In order to check the flow from various tube-wells of Roorkee, and authenticate the tube-well data provided by line agency an exercise was carried out to calculate the flow measurement from various tube-wells of Roorkee. The instrument available with IPMU for this purpose was used which is an ultrasonic flow measuring device. This device as per its manual requires clear distance of 20 D in upstream and 10 D in downstream flows. This required distance was not available at the site at the time when the flow measurement was tried to be calculated. Moreover, this type of flow measurement unit only provides instantaneous flow from the tube-well rather than the yield. In view of this to ascertain the capacity of the source yield of the tube-well is of more importance then the flow. However, this flow measurement or yield measurement of various tube-wells is not going to affect the outcomes of this package as water supply distribution network is being designed for 2043 and as per the assessment water from the present tube-wells of UJS as per the reported flow will be able to serve the population of Roorkee town till 2020. The source augmentation including installation of proper pumping machinery and collection system from tube-wells to over head tanks is proposed to be taken up in separate packages of Tranche-3.

B. The Need of the Project A detailed assessment of existing situation was carried out, which concludes that the present water production of 28.42 MLD, is sufficient to meet water demand of Roorkee till the year 2020, and the present inadequacy in the water supply system, is due to (i) poor water management, (ii) old and leaking distribution system and (ii) inadequate water treatment facility. These issues need to be addressed immediately to provide water supply to the citizens of Roorkee as per the National standards. The table below shows the major demand and supply gap of different parameters.

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Table 1: Demand -Supply Gap Parameters Present

Status Requirement/Demand Gap

2013 2028 2043 Population covered with city water supply system

1,07,555 1,34,444 2,02,020 3,03,561 2013: 2,68,89 2028: 94,465 2043: 1,96,006

Population receiving water as per GOI standard

nil (Quality & quantity not conforming)

1,34,444 2,02,020 3,03,561 2013: 1,34,444 2028: 2,020,20 2043: 3,03,561

Service delivery standards at the consumer end (1) Average per capita

supply (2) Duration (3) Quality

85 lpcd 2-4 hours Presence of coliform reported at consumer end

135 lpcd 24x7 As per GoI standards

135 lpcd 24x7 As per GoI standards

135 lpcd 24x7 As per GoI standards

2013: 50 lpcd 2028: 50 lpcd 2043: 50 lpcd

Production of potable water

(i) Surface water (ii) Ground water

Total

nil 28.42

23.90

34.12

49.32

2013: nil 2028: 5.7 2043: 20.9

28.42 Physical losses 60% (17.05

MLD) 15% (4.26 MLD)

15% (4.26 MLD)

15% (4.26 MLD)

45% (12.79 MLD) Reduction

Consumer end supply 11.37 MLD 24.16 MLD 24.16 MLD 24.16 MLD 2013: Nil 2028: 9.96 MLD 2043: 25.16 MLD

Transmission line: Length: 1.97 km Poor condition and needs replacement

3.67 3.67* To be assessed after detailed study to identify new sources

2013: 3.67 km 2028: 3.67 km 2043: 3.67 km

Distribution Line Length: 160 km Poor condition and needs replacement

215 km 215 km 215 km 2013: 215 km 2028: 215 km 2043: 215 km

Storage requirements 5.9 ML 4.53 ML 6.49 ML 9.42 ML 2013: nil 2028: 0.59 ML 2043: 3.52 ML

House Connection 12,655 (+10% additional for 2013) 100% replacement needed

26889 40,404 60,712 2013: 14,234 2028: 27,749 2043: 48,057

Meter nil 12,655 40,404 60,712 2013: 14,234 2028: 27,749 2043: 48,057

Note: * The length of transmission mains is assessed based on assumption that present tube-wells after redevelopment will meet out the demand of 2028.

C. Reasons of the Demand and Supply Gap The following are the main reasons for demand supply gap: (a) With the increase in population, demand has increased (b) Resource constraints for systematic up-gradation of the system

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(c) The existing water transmission and distribution system suffers from defects and huge system losses as these have also outlived their design period life and have become insufficient to cope with increased demands of the city.

(d) Non existence of scientific treatment facility. (e) There is no water metering system at consumer end and therefore, there is indiscriminate usage of water

and losses in water supply and revenue.

6. SUBPROJECT RATIONALE From the above assessment it is clear that additional investment is needed for water supply system of Roorkee to address the service level disparities in water supply compared to the national average and national standard and will also contribute in achieving India 11th Five year plan target- to provide portable water supply to the entire urban population of India by the plan period.

7. DESCRIPTION

A. Subproject Area Roorkee is developing more rapidly than before. The haphazard development and reckless construction activities created more stress on the civic amenities. The present population of the city based on 2001 census and projected for 2013 is 1,34,444 and it is projected that the population of the Roorkee will become 2,02,020 and 3,03,561 by 2028 and 2043 respectively. The subproject will cover an area of 10.77 sq km of which 8.24 sq km falls within the municipal boundary limits and remaining are the peri urban areas which are likely to be part of municipal boundary in the near future. The key features of the subprojects area are as below: Climate: Summers start in late March and continue till early July, with average temperatures around 280C (830F) and maximum reaching up to 420C. The monsoon season starts in July and goes on till October, with torrential rainfall, due to the blocking of the monsoon clouds by the Himalayas. The post monsoon season starts in October and goes on till late November, with average temperatures sliding from 210C (700F) to 150C (580F). Winters start in December, with lows close to freezing and frequent cold waves due to the cold winds blowing from the Himalayas. The total annual rainfall is about 2,600 mm. Topography: The town has a gently sloping topography, with slope from south to north towards Solani River, however, the Ganga Canal slopes towards the southwest. The difference in the highest and lowest ground level of the town is of the order of 18.5 meters. Ground water is accessible at a depth of-10 m. The town lies in the Tarai belt and experience tropical climate. Social Conditions: The western part of Ganga canal area is thickly populated and generally comprises of service class, business men and other work force and the Eastern part of Ganga canal generally comprises of intellectuals and service class peoples. Financial condition of most of the people of Roorkee is quite satisfactory and they can pay for utility charges. Road: Total road length in the city is 215 km out of this 161.25 km road length has black top and 53.75 km of road length is concrete top. In general the width of these roads is ranging from 3.0 m to 10 m.

B. Assessment of Existing Situation Water Source: The present source of water supply for Roorkee town is Tube-wells only, with 16 in operation and 4 additional tube-wells being proposed by Jal Sansthan. Ground Water: Presently the water supply of Roorkee is dependent on 16 existing tube-well which will be added by 4 numbers which are under execution by Uttarakhand Jal Sansthan. The yield of these tube-wells is estimated to 28.42 MLD. Vigorous efforts were made to obtain the quantum of ground water availability, extraction and re-charge, from Ground Water Board and other related organisations. However no information

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could be made available by these organisations, thus DSC-1 has proposed a hydro-geological study of Roorkee, which will be carried out in parallel to this sub-project of water supply. The result of this study will be obtained in due course of time. However this is to emphasise that during enquiry from various organisations including UPJN/UJS, it was informed that the ground water table at Roorkee is good. Surface Water: The city does not have any surface water source. Population: Total : 1, 27,339 Covered with city water supply : 1,07,555 Receiving water 135 lpcd at the consumer end and as per the quality standards of GOI : nil Water Quality: Ground Water: During site visits and discussions with stakeholders it was reported that majority of the area of town is receiving non-potable water. This could be due to the old damaged pipes in distribution system. However an effort was made to check the water quality of different water source (tube-wells) as well as at the end user. An expert agency ‘Pollution Control Research Institute (PCRI), government of India undertaking’ was engaged to carry out the water sampling and analysis. The findings of this are detailed below: ▪ Alkalinity, Iron, Manganese, Calcium, Total Dissolved Solids (TDS), Nitrate, pH, Sulphates, Chloride,

Fluorides are found to be within acceptable limits. ▪ There is a presence of total coliforms 4 out of 6 samples collected from end users. This clearly indicates

that water supply lines are old and contamination of sewage may be the reason for presence of total coliforms at consumer end.

Intakes: Tube-wells only. Transmission Mains: The details of transmission mains are tabulated below: Table 2: Details of Transmission Mains

Sl. No Alignment Diameter (mm) From To Existing Most Economic

Size required for present

condition

Most Economic Size Required

for 2028

1 Gandhi Vatika-1 Gandhi Vatika OHT (New) 300 150 150 2 Gandhi Vatika-2 Gandhi Vatika OHT (New) 250 200 200 3 Civil Lines Gandhi Vatika OHT (Old) 250 200 200 4 Adarsh Nagar Solanipuram OHT (Proposed) 200 200 200 5 Ram Nagar-1 Ram Nagar OHT 250 200 200 6 Ram Nagar-2 Ram Nagar OHT 250 150 150 7 Ram Nagar-3 Ram Nagar OHT 250 200 200 8 Ram Nagar-4 Ram Nagar OHT 250 200 200 9 Chanderpuri Maqtoolpuri OHT 250 150 150 10 Maqtoolpuri Maqtoolpuri OHT 250 150 150 11 Passiyan Maqtoolpuri OHT 250 200 200 12 Sabzi Mandi Indra Park OHT (Proposed) 150 150 150 13 Ganeshpur-1 Ganeshpur OHT (Proposed) 150 200 200 14 Padav Padav OHT (Proposed) 150 200 200 15 Awas Vikas-1 Awas Vikas OHT 200 150 150 16 Awas Vikas-2 Awas Vikas OHT 200 200 200

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Note: The most economic section for 2028 calculated is based on assumption that the discharging capacity of tube-wells will come to its original capacity after redevelopment of tube-wells planned in Tranche-3, however it will require to be reassessed based on the findings of hydro-geological study proposed to be undertaken for obtaining optimum discharges from tube-wells. This is the prime reason for considering replacement of transmission main and rehabilitation of pumping machineries in Tranche-3. Water Treatment Plants: In Roorkee town, the only source of water supply is groundwater and its quality is comparatively good requiring only disinfection. Online chlorination arrangement is made for disinfection of ground water. Presently no water treatment plants are in operation. Tube Wells: The details of tube-wells are tabulated below: Table 3: Details of Transmission Mains

S. No. Location Serving to Zone

Year of Installation

Installed Capacity (lpm)

Present Capacity (lpm)

1 Gandhi Vatika-1 1 1989 2,255 1,000 2 Gandhi Vatika-2 1 1985 2,543 1,200 3 Civil Lines 1 2010 2,000 1,800 4 Adarsh Nagar 1 2006 2,000 1,800 5 Sabzi Mandi 5 N.A N.A 600 6 Padav 3 & 5 2006 2,000 1,800 7 Maqtoolpuri 4 N.A N.A 1,100 8 Chanderpuri 4 1983 3,000 1,000 9 Passiyan 4 2010 2,000 1,800 10 Awas Vikas 2 N.A N.A 600 11 Awas Vikas-New 2 2010 2,000 1,800 12 Ram Nagar-1 2 N.A N.A 1,500 13 Ram Nagar-2 2 1985 4,320 1,000 14 Ram Nagar-3 2 2006 2,000 1,800 15 Ram Nagar-4 2 2006 2,000 1,800 16 Ganeshpur 6 2006 2,000 1,800

N.A: Not available In addition to above four (4) new tube-wells are being executed by Uttarakhand Jal Sansthan with an average discharge of 1800lpm. Out of 16 existing tube-wells, 7 tube-wells are discharging water less than 50% of their installed capacity. There could be various reasons for such as: ▪ Use of incorrect size of screen and gravel pack ▪ Improper site selection for well resulting in interference ▪ Improper construction of tube-well such as bore not vertical, leaky joints, etc. ▪ Corrosion of screens due to chemical action of water ▪ Over pumping, poor maintenance ▪ Lowering of water table and deterioration in water quality ▪ Incrustations due to chemical action of water ▪ Inadequate development of well. Looking into the fact, it is the requirement for redevelopment of all existing tube-wells. Pumps and Pumping Equipments: There are 16 pumps, with discharges from tube wells ranging from 600 lpm to 1,800 lpm. Average head of pumps is 40 m.

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In absence of proper record available with line agency each pump house was inspected in person and the condition was assessed. During these visit it is found that pumping machineries are required to be replaced as most of these are old & in operation since more than the life period. During site visits to pump houses, frequent break down were observed. However, it is suggested to take up the work of replacement of pumping machinery after the hydro-geological study, as this study would suggest the actual discharge from the bore-wells, and accordingly the pumping machinery can be designed and installed. Hence this work is proposed in Tranche-3. Storage Capacity: Existing and required storages for Roorkee Water Supply Scheme after rezoning and streamlining the water management system is tabulated below: Table 4: Details of Existing and Proposed Storage Tanks

Zone No.

Water Demand (2043)

MLD

Storage (KL) Remarks Required

(2043) Existing Balance Proposed

(2043) 1 2 3 4 5 6 7

1A 11.88 2,160 1,700 460 - As the existing storage is sufficient upto 2028 no OHT is proposed in this package. A new OHT can be proposed after 2028 in the same campus.

1B 5.78 1,080 - 1,080 1,100 Proposed in this subproject at BHEL Bus stand opposite Jain Dharamshala.

2 6.92 1,670 2,500 -1,370 - Present storage is sufficient 3A 3.73 610 - 610 700 Proposed in this subproject at

Padav (existing tube well campus)

3B 2.66 430 750 -320 - Present storage is sufficient 4 5.85 950 450 500 1,000 Present OHT in very bad

condition, New OHT proposed in place of existing in this subproject at Maqtoolpuri.

5 5.95 970 - 970 1,100 Proposed in this subproject at Indra Park, Mohalla Satti.

6 8.17 1,550 - 1,550 1,600 Proposed in this subproject at Ganeshpur Talaab.

As per table above out of 5 proposed OHTs, 4 OHT are proposed on new locations while one OHT is proposed to be constructed after demolishing existing OHT in the water works campus. The area required for 4 OHT was 25m X 25m each. Out of four locations two locations are under the authority of Roorkee Nagar Palika, while other two are under the state revenue department. The executive officer of Roorkee Nagar Palika has issued a letter (letter no. 280 dated 23/09/2010) stating that the land for 4 OHT is identified and concerned department shall start the procedure of transferring the land. Moreover, during a joint inspection by Joint Magistrate/SDM of Roorkee, Chairman Nagar Palika, Executive officer Roorkee Nagar Palika and programme officials the 4 pieces of land were identified and approved by the concerned officers of Nagar Palika and Revenue Department. Distribution System: The total distribution network at present is about 160 km laid periodically. Most of these pipelines are very old and have out lived their service life. Moreover, in many stretches these pipelines have gone to deeper depths due to improvements made in road surface and now become inaccessible for repairs. The pipe material used in the existing distribution lines are detailed below:

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Table 5: Details of Distribution Pipe Lines

Distribution Pipes Total (in km) PVC (90-160 mm dia.) 140 AC (200-450 mm dia.) 20 Total length 160

Stand Posts: There are 700 stand posts in Roorkee town but water supply to these stand posts shall be stopped as water shall be supplied through house service connection. However 30 stand posts are proposed in this sub-project as per the requirement of UPJN all along the Kanwar Patri along the canal to cater to the kanwaryas and other people making religious tours. House Connections: House service connections as provided by UJS are 11,500 (approximately) including domestic and commercial. During the site investigation it was found that most of the house service connections are not proper. The service connection pipes are either crossing the road side drains which are full of sewage flowing from the houses or through manholes. Peoples were also complaining about the contaminated water to their houses which could be the result of leakage in house connections. Hence, in this subproject a proper house connection is proposed to be installed up-to the property boundary of the existing consumer as well as anticipated consumer, so that future excavation of the roads would be avoided. System Losses: Public consultation was conducted to identify the problems and issues in the existing water supply system of Roorkee. The ward members and public were contacted and discussed the problems being faced by the people in the town. The findings of consultation are detailed below: ▪ Low water pressure- use of suction pumps to draw water by users is common. ▪ The existing connections are disconnected by the public itself due to non-availability of good quality and

quantity of water. ▪ It is reported that, water borne diseases are common due to water contamination. ▪ No proper arrangements for house connections, many pipes are crossing drains and manholes. ▪ Water supply timing is not uniform and supply is for about 2-3 hours. In addition to the stakeholders meeting and discussions, a joint meeting was held in the conference hall of Municipal Council to discuss the master planning of Roorkee town. The meeting was chaired by the Chairman of Municipal Council and was attended by the officials of Investment Program Monitoring Unit, Investment Program Implementing Unit, Uttarakhand Pey Jal Nigam, Uttarakhand Jal Sansthan and other officials and ward members of Municipal Council. In the meeting discussion and deliberations regarding water supply improvement works were held and the following decisions were taken: ▪ The existing distribution network mainly consists of AC pipes, PVC pipes, GI pipes, and many of these

pipelines have outlived and completed design period. Hence a new water supply distribution network shall be planned.

▪ The existing pumping mains have many house connections; which is not standard practice and many of these lines are very old and have leakages. These rising mains shall also have to be laid new as per the design requirement of 2043.

Against the total water production of 28.42 MLD, as described above 17.05 MLD (60 %) are the Water losses. The remaining 11.37 MLD (40 %) which is being supplied to the consumer is not totally revenue generating because of unbilled authorised consumption of water.

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There is no billed Metered Consumption, as the bills being generated is on flat rate per connection basis, thus authorised consumption is bifurcated in billed unmetered and unbilled unmetered consumption. Following matrix gives the picture of water balance in the Roorkee, where Non Revenue of Water is about 19.1 MLD. Table 6: Water Balancing

System Input Volume 28.42

MLD

Authorised Consumption 9.67

MLD

Billed Authorised Consumption

9.32 MLD

Billed Metered Consumption

NIL Revenue Water 9.32 MLD Billed Unmetered

Consumption 9.32 MLD

Unbilled Authorised Consumption

0.35 MLD

Unbilled Metered Consumption

NIL

Non Revenue Water 19.10 MLD

Unbilled Unmetered Consumption

0.35 MLD

Water Losses 18.75 MLD

Commercial Losses 1.7 MLD

Unauthorised Consumption

1.7 MLD Customer Meter

Inaccuracies and Data Handling Errors

NIL

Physical Losses 17.05 MLD

Leakage on Transmission and Distribution Mains

10.23 MLD Leakage and overflow

from the Utilities Storage Tank

2.56 MLD Leakage on Service

Connections up to the Customer Meter

4.26 MLD In general after consulting with the public and stake holders in person, it is concluded that water supply system specifically distribution system of Roorkee town is almost collapsed which required complete revamping, However, the water production is sufficient from the existing tube-wells till 2020, hence immediate requirement is complete revamping of water supply distribution system including sufficient storage, is the immediate need, hence in this subproject the water supply distribution system including enhancement of storage system and disinfection is planned. Power Situation: Power supply to the town is irregular. Hence procurement of diesel generator units is proposed in Tranche-3 parallel to the installation of pumping machineries which are also proposed in Tranche-3. Operation and Maintenance: Operation and maintenance of the water distribution system is being done by Uttarakhand Jal Sansthan department. Annual budget for the city is INR 21.58 million which includes the cost under following three categories: i) Power : INR 9.0 million ii) Materials : INR 2.82 million

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iii) Human resources : INR 9.75 million

C. What action government is taking to address the demand supply gap Table 7: Government Action to Address Demand-Supply Gap, Roorkee

Parameters Gap in infrastructure (last column of the

Table 1)

Tranche 2 Other Government

Program

Balance

Production of potable water

(i) Surface water (ii) Ground water

nil 2028: 5.7 ML 2043: 20.9 ML

Detailed study is proposed to assess the optimum yield of tube-wells and to identify potential sources.

nil nil 2028: 5.7 ML 2043: 20.9 ML

Physical losses Up to 45% (12.79 MLD) Reduction

40% ( 11.37 MLD) reduction by replacement of distribution line

nil 5% (1.42 MLD) reduction

Transmission Line 3.67 km nil nil 3.67 km Distribution Line 215 km 215 km which includes

160 km replacement nil nil

Storage requirements 3.52 ML 3.52 ML nil nil House Connection 60,712 12,655 nil 48,057 Meter 60,712 12,655 nil 48,057

D. Objective of the Subproject

The objective of this sub-project is to provide potable water at 135 lpcd to 100% of Roorkee population at 17 m head except in specific cases where limitation of staging height of existing OHT limits the residual head to 12 m. Beneficiaries: Total Design Population (beneficiaries) for Roorkee can be summed up as: ▪ 2013: 1,34,444 ▪ 2028: 2,02,020 ▪ 2043: 3,03,561 The floating population at every stages considered to the tune of 8.6 % of the resident population will also be benefited from the project. Improved Service Level: ▪ Per capita supply at consumer end – 135 lpcd; ▪ Supply hours – per day; 24 hours ▪ Quality of the potable water as per GOI standard ▪ Physical losses: Less than 15% ▪ Wholesome potable water supply to commercial and institutional units ▪ Adequate fire fighting provisions; Yes

E. Subproject Components Distribution System (215 km): Distribution network including replacement of 160 km distribution pipe lines as detailed below:

110 mm (OD) HDPE PE 100 PN8 : 1,75,657 m 160 mm (OD) HDPE PE 100 PN8 : 3,777 m 180 mm (OD) HDPE PE 100 PN8 : 18,427 m 200 mm (DN) DI K7 : 9,144 m 250 mm (DN) DI K7 : 5,122 m 300 mm (DN) DI K7 : 1,795 m

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350 mm (DN) DI K7 : 704 m 400 mm (DN) DI K7 : 384 m

As distribution system is old and new areas have developed the proposed distribution length is more than the present distribution system length. ▪ After replacement of distribution system it is expected that water losses in distribution system will be

restricted to less than 15%. ▪ 5 new OHT are proposed to be taken up. 1 OHT will be constructed after demolishing the existing OHT

and 4 OHT will be constructed in new locations. Land is identified and available for these 4 OHT. Existing OHTs will be renovated/repaired.

▪ Stand post for the stretch of road used during Kanwar Mela in Haridwar-30 nos. ▪ Online chlorination arrangement. ▪ Providing house service connections up to property line ▪ Laying of new distribution pipe lines of 215 km. of 100-400 mm diameter with HDPE material for less than

200 mm dia pipes and DI-K7 for 200 mm and above dia pipes. Zones Covered: All six existing zones. House Connections and Water Meters: House connections at present as per UJS data is 11,500. Water meters installation is proposed in the package of this sub-project with multi-jet magnetically coupled AMR compatible meters for size up to 25 mm and helical type for sizes beyond that. Installation of SCADA System: Proposed in later tranches wherein all tube wells stations and OHT shall be covered by SCADA.

F. Clearances and Land Acquisition In water supply sub-project land is required for only construction of OHT. As out of 5 OHT 4 are proposed in new locations the land is required for 4 OHT. The land is acquired and transferred to the respective agency. Social Related: For the proposed sub-project no permanent land acquisition or resettlement is envisaged. Environment Related: None

G. Risk and Assumptions for Implementation of Subprojects • Social - Resistance from local residents, shop vendors, adjacent private agricultural landowners if they

are not adequately compensated before the start of construction activity. • Environment related: None However, to mitigate the above risks following are the assumptions that will be provided by the implementing agency: • 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 SRP including the details of sub-project will also be made available to APs in local language.

• APs will be adequately compensated based on SRP before the start of construction activity.

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8. DESIGN FEATURES

A. Design Period

The design period is 30 years after implementation. The base year is 2013 and intermediate stage is up to 2028 and ultimate stage is 2043. However, the augmentation of water production capacity is not envisaged immediately as the present capacity will be sufficient to meet the water requirement till 2020.

B. Design Basis The works under the project are proposed to be designed as per the norms recommended in CPHEEO manual of Govt. of India. The coverage of the population is given as below. Urban Population Coverage: Present population: 1,27,339 (Year 2011) projected based on 2001 census figure. At project completion (2013) : 1,34,444 2028 : 2,02,020 2043 : 3,03,561 Population presently availing services as per the GOI standards: Nil Targeted additional population that will avail services as per the GOI standards: 100% Capacity Improvement: Production of Water Augmentation of water production is not taken up in the water supply sub-project WSS01RK Water available at the consumer end : Present : 11.37 MLD At project completion : 23.90 MLD Service Level of Water Supply: Present rate of supply : 85 lpcd Targeted rate of supply : 135 lpcd to all Present residual head : 6 m Targeted residual head : 17 m at the ferrule point. Present quality : Relatively good, presence of coliform in some areas at end

user Targeted : Potable water to projected entire future population meeting the

desired quality norms. System Storage Capacity: Present : 5,900 KL Targeted : 10,450 KL Table 8: Other Design Features to be Considered

Pipe materials Ductile Iron pipes / HDPE Head loss calculation based on Hazen William’s Pipe roughness coefficient C = 140 for DI /145 for HDPE WTP design criteria As per CPHEEO Manual. Distribution network Modelling Water CAD V8i software

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9. PROJECT COST

C. Subproject Estimated Cost Table 9: Details of Subproject Cost, Roorkee

Item Amount (INR Millions)

Amount in US$ Million

A. Base Cost 1. Supply, laying, jointing, testing and commissioning of water supply

distribution network in Roorkee with construction of new OHT (WSS01RK)

389.22 8.65

2. Hydro-geological study of the Roorkee Town (WSS02RK) 5.00 0.11 3. Supply and installation of water meters (WSS03RK) 40.00 0.89 Sub-Total (A) 434.22 9.65 B. Contingencies 1. Price contingencies @10% 43.42 0.96 2. Physical contingency @5% 21.71 0.48 Sub-Total (B) 65.13 1.45 Total (A + B) 499.35 11.10

Note: Conversion rate is considered at INR 45 = 1US$

10. IMPLEMENTATION ARRANGEMENT

A. Implementation Period

Approval of this SAR July 2011 Completion of detailed engineering design April, 2011 Issuance of tender documents 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-1 will assist IPIU in implementation; and M/s Wilbur Smith Associates retained as IPMC will assist IPMU on overall project management.

C. Design and Construction Supervision Agency M/s Mott MacDonald-STC consortium is retained as Design and Construction Supervision Consultant (DSC-1) reporting to IPMU- UUSDIP, Government of Uttarakhand.

11. Procurement and Consultant Selection

A. Procurement Method For procurement and execution purposes, the subproject will be divided into various contract packages. The tender documents will be prepared based on Asian Development Bank guidelines and will follow the following set guidelines.

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Table 10: Details of Contract Packages, Roorkee

Contract Package Type Notification Nature of Bidding 1. Supply, laying, jointing, testing and commissioning of

water supply distribution network in Roorkee with construction of new OHT (WSS01RK)

Item rate NCB Single Stage Two Envelope System

2. Hydro-geological Study of the Roorkee Town (WSS02RK)

Service Contract (QCBS)

NCB QCBS System as per ADB procedure

3. Supply and Installation of Water Meters (WSS03RK) Item rate NCB Single Stage Two Envelope System

12. OPERATION AND MAINTENANCE

A. Asset Owner after Completion

Uttarakhand Jal Sansthan (UJS) will be the asset owner after completion of construction of the subproject.

B. Estimated Yearly O&M Cost The O&M cost for the work under this subproject worked as follows: Table 11: Proposed O&M Cost for this Subproject

Component O&M Cost per year up to 2013

O&M Cost per year up to 2028

O&M Cost per year up to 2043

O&M Cost per year (average)

INR (Million) Civil works 0.97 1.95 2.92 1.95 Water meters 0.30 0.40 0.50 0.60 Total 1.27 2.35 3.42 2.55

13. ECONOMIC AND FINANCIAL ANALYSIS

A. Economic Analysis

Estimated Economic Internal Rate of Return (EIRR) is 29.78% The main evaluation has indicated that the proposed water supply sub projects under Tranche-2 for Roorkee 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. Table 12: Sensitivity Analysis for Water Supply Component (EIRR) – Roorkee Tranche-2

Details EIRR Main Evaluation (Base Case) a/ 29.78% Capital Cost Overrun b/ 25.84% Switching Value c/ 219.00% O&M Cost Overrun d/ 29.24% Switching Valuec/ 1148.00% Decrease in Project Benefits e/ 24.46% Switching Valuec/ 64.00% One Year Delay in Implementation 29.77% All Four Tests Combined 20.64%

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a/ From Table - “Economic Cost-Benefit Analysis for Water Supply Components (Tranche-2), Roorkee”. 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/ 20% decrease in project benefits

B. Financial Analysis Financial sustainability and viability analysis and the sensitivity analysis results in terms FIRR are presented below. Table 13: Financial Viability Sensitivity Analysis Results – WS Subproject, Roorkee (Tranche-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 2, Roorkee 9.4% 6.9% 7.9% 6.8% 6.7% The main evaluation has indicated that the proposed water supply sub projects for Roorkee under Tranche 2 is found to be financially viable, with the calculated FIRR values is above the WACC (3.5%), for the recommended user charges under FIAP. Also, the project ensures 100% O&M 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 in Roorkee includes: • Replacement/laying of new distribution pipe lines of 215 km of 100-400 mm diameter with HDPE material

for less than 200 mm dia pipes (92% of total) and DI-K7 for 200 mm and above dia pipes. • Construction 5 overhead tanks and rehabilitation of existing tanks • House service connections and stand posts • Chlorination facility The proposed water network will be developed within the city area where there are no sensitive natural habitats and the pipe line will be buried in the un-used vacant adjacent to the roads within the Right of Way (RoW). 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. Proposed overhead tanks will be constructed on government owned land parcels where there are no sensitive environmental features. Therefore it is unlikely to have any major location impacts. There are AC (Asbestos Cement) pipes in the existing distribution network. These will be left as it is in the ground and a new pipeline will be laid. Since the sub-project is only an optimisation of the existing water supply network, no major design impacts anticipated. The subproject is designed in such a way that the supply demand gap will be met through reduction of losses by measures such as replacement of old, damaged and profusely leaking distribution lines. The subproject does not involve any source augmentation measures and therefore no major impacts envisaged. All the service reservoirs will be designed according to seismic zoning guidelines. 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

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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. Construction impacts are likely to be significant as most of the roads are narrow. 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 suppression; 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 main O&M activities will be chlorination. 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.

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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 [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ ] Sector Loan [ X ] 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 rehabilitation and augmentation of water supply in Roorkee 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-I

Endorsed by: Team Leader, DSC-I

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:

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15. INVOLUNTARY RESETTLEMENT

A. Brief Description of Resettlement Issues

This proposed subproject of water supply system for Roorkee is designed in such a way so as to minimize land acquisition and resettlement impacts. In Tranche-2 sub-project components, rehabilitation of existing OHTs will be accommodated within the existing facilities’ premises and will not involve any permanent/temporary land acquisition and resettlement while government land is been identified for the construction of five new OHTs. Laying/replacement of lines will also be undertaken within the existing RoW, however envisages temporary impacts for short periods on roadside (movable) vendors. 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. Additionally, suitable temporary alternative sites will also be suggested to movable vendors 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.

Sl. No.

Proposed Sub-component Land Acquisition and Resettlement Impacts

1 Providing, Laying, testing and commissioning of water supply distribution system in all 8 zones (215 km.)

Pipelines 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.

2 Construction 5 overhead tanks (OHTs) and rehabilitation of existing tanks

Rehabilitation of existing OHTs will be undertaken within the existing campus and additional land acquisition is not required. For construction of new OHTs, UPJN/Nagar Nigam land has been identified and no private land acquisition is required. Indentified lands are free of encroachers/ squatters. NOC for construction of OHTs has been obtained.

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

‐ 19 ‐ 

      

C. Involuntary Resettlement Category

Category A Category B Category C Category FI

‐ 20 ‐ 

      

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 : Draft SAR Approval 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 April 2011.

RSES Comments: IR category is “ B “ and a SRP is needed

E. Approval Proposed by: R & R Expert, DSC -I

Reviewed by: R & R Expert, IPMC

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

Endorsed by: SCDO, IPMC

Director, RSES Date: Endorsed by: SCDO, IPMC

Approved by: Dy Program Director

Highly Complex and Sensitive Project

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

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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

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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 Modality :

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

[ ] Category A

[ ] Category B

[ ] Category C [ ] Category FI

D. Project requires the broad community support of affected Indigenous Peoples communities.

[ ] Yes [ ] No

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

RSES Comments: Category “ C “ and no IPDP is required

F. Approval Proposed by: SDE, DSC – I

Reviewed by: CDE, IPMC

Project Team Leader, {DSC-I} 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:

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17. OTHER ISSUES, if any

Nil

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Attachment-1

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

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 Roorkee 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 neighbouring 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 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 INR 3,200.00 million 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

‐ 25 ‐ 

      

solid waste management initiatives through measures that sustain service delivery and strengthen the capacity of the government, utilities, and communities. 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 - Rehabilitation and Augmentation of Water Supply in Roorkee 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 Water supply distribution system to be implemented in entire Roorkee city area where centrally located core zones are densely populated

No

Heavy with development activities? Yes No

Adjacent to or within any environmentally sensitive areas?

Yes No No

Cultural heritage site Yes No No

Protected Area Yes No No

Wetland Yes There are no wetland or notable water bodies within the project area No

Mangrove Yes Not a coastal area No

Esturine Yes Not a coastal area 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 There is no major pollution risk for existing sources. No

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

Yes There are no such notified sites within project area hence no impacts envisaged. No

Hazard of land subsidence caused by excessive ground water pumping?

Yes Subproject does not involve augmentation of source; the extraction of ground water will remain at existing level. Augmentation is mainly through reduction in losses, plugging leaks, etc

No

Social conflicts arising from displacement of communities?

Yes Subproject does not involve land acquisition or displacement. No

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

Yes The subproject does not involve augmentation of supply from existing levels. The demand supply gap is to be met through reduction of losses in distribution system

No

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Screening Questions Yes/No Remarks Unsatisfactory raw water supply (e.g. excessive pathogens or mineral constituents)?

Yes The raw water has excessive hardness (>500 ppm) for some sources. Appropriate treatment works is proposed in the subproject.

No

Delivery of unsafe water to distribution system? Yes Raw water quality is good as being drawn from ground water. Water will be disinfected and supplied.. No

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

Yes Subproject only includes improvement in water supply network. The subproject does not involve augmentation of supply from existing levels. There are no notable pollution risks for existing groundwater sources; the proposed sewerage system improvement in Roorkee under the UUSDIP, parallely implemented with water supply subproject, will further protect the groundwater.

No

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

Yes The subproject does not involve augmentation of supply from existing levels No

Excessive algal growth in storage reservoir? Yes Treated and disinfected water will be stored in the overhead tanks which are covered, so the problem will be minimal. Regular cleaning during operation will mitigate the problem.

No

Increase in production of sewage beyond capabilities of community facilities?

Yes Sewerage system of adequate capacity including treatment is being developed under the UUSDIP No

Inadequate disposal of sludge from water treatment plants?

Yes No water treatment plants proposed in the subproject. Groundwater is fit for drinking; water will be supplied after disinfection

No

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

Yes There are no pumping stations proposed under the subproject No

Impairments associate with transmission lines and access roads?

Yes No such possibilities as proper precautions will be taken. No

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

Yes Liquid chlorine/chlorine gas is proposed to be used for disinfection of water. Proper facility for storing and handling of chlorine will be maintained, and all safety precautions will be provided.

No

health and safety hazards to workers from handling and management of chlorine used for disinfection, other contaminants, and biological and physical hazards during project construction and operation?

Yes Only trained personal will operate the chlorination system. Proper safety/precautionary measures will be taken during handling of chlorine.

No

Dislocation or involuntary resettlement of people?

Yes 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.

No

Social conflicts if workers from other regions or countries are hired?

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

No

Noise and dust from construction activities? Yes Best construction management practice will be adopted during construction activity to minimize dust and noise generation.

No

continuing soil erosion/silt runoff from construction operations?

Yes Work will mostly be conducted in dry season; during rains necessary appropriate measures will be implemented.

No

increased road traffic due to interference of Yes Proper traffic management and planning will be ensured

‐ 28 ‐ 

      

Screening Questions Yes/No Remarks construction activities? No during construction.

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

Yes Subproject involves no treatment facilities. Groundwater is fit for drinking and as such supplied after disinfection. Chlorine dosage will be as per the requirement and regular monitoring will be carried out to ensure that chlorination is adequate and also not overdosed.

No

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

Yes Distribution system is not corrosive. There are no corrective chemicals fed. Dosing of chlorine will be as per the raw water analysis. Pipes used for distribution system will be non corrosive in nature.

No

Accidental leakage of chlorine gas? Yes All standard safety equipment will be provided and procedure will be followed. No

Excessive abstraction of water affecting downstream water users?

Yes The subproject does not involve augmentation of supply from existing levels. No

Competing uses of water? Yes The subproject does not involve augmentation of supply from existing levels. No

Increased sewage flow due to increased water supply?

Yes Sewerage system of adequate capacity including treatment is being developed under the UUSDIP. No

Increased volume of sullage (wastewater from cooking and washing) and sludge from wastewater treatment plant

Yes As above No

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 such impact anticipated; local communities in the vicinity of the project would be employed as much as possible.

No

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 Not applicable. Construction will not involve use of explosives and chemicals. During operation, chlorine will be used as disinfectant, and all necessary safety measures are included

No

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

No

‐ 29 ‐ 

      

‐ 30 ‐ 

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. All the structure designs confirm to seismic design, where applicable.

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.

 

Attachment-3

INVOLUNTARY RESETTLEMENT IMPACT CATEGORIZATION CHECKLIST Probable Involuntary Resettlement Effects

Yes No Not Known Remarks

Involuntary Acquisition of Land - - All sub-project replacement/new

works will be accommodated within the existing facility premises, on government/UPJN land and within the existing RoW and no permanent land acquisition and resettlement is envisaged.

1. Will there be land acquisition?

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

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

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

- - - 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?

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

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

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

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

Involuntary restrictions on land use or on access to legally designated parks and protected areas - - The sub-project activities may

temporarily affect access to public utilities like electricity, telephone connectivity, water supply etc.

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

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

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

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

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

  ‐ 31 ‐ 

 

Attachment-4

INDIGENOUS PEOPLES IMPACT SCREENING CHECKLIST KEY CONCERNS

(Please provide elaborations on the Remarks column)

YES NO NOT KNOWN

Remarks

A. Indigenous Peoples Identification - - 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 Uttaranchal 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.

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?

- -

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?

- - - Not Applicable

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

- - - Not Applicable

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

- - - Not Applicable

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

- - - Not Applicable

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

- - - Not Applicable

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?

- - - Not Applicable

B. Identification of Potential Impacts

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

- - -

  ‐ 32 ‐ 

 

KEY CONCERNS (Please provide elaborations

on the Remarks column)

YES NO NOT KNOWN

Remarks

- - - 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?

  ‐ 33 ‐ 

 

Attachment-5

ECONOMIC AND FINANCIAL ANALYSIS A. Economic Analysis 

Considering the existing water supply problems due to the increase in demand, increased level of UFW and inadequate infrastructure, resulting in high demand gap, the water supply sub-project identified under Tranche-2 in Roorkee town have sound rationale and justification for government intervention. For the present analysis, the sub projects identified under Tranches-2 was considered. 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 Number 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. 434 million. Considering the contingency and allowances of additional 12%, the total project financial cost was worked out to Rs 543 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.

  ‐ 34 ‐ 

 

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

(Rs. million) a/ Costs Capital costs Water Supply 354 O&M costs Water Supply 111 Total costs 465 Benefits Resource Cost savings for Non-incremental water 13 Avoided costs of -health care & earning lost due to illness 391 - reduced time in water collection 790 Total benefits 1193 Economic Return Measures Net present value (Rs. Million) 729

29.78% EIRR (%) 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) – Roorkee Tranche-2

Details EIRR Main Evaluation (Base Case) a/ 29.78% Capital Cost Overrun b/ 25.84% Switching Value c/ 219.00% O&M Cost Overrun d/ 29.24% Switching Valuec/ 1148.00% Decrease in Project Benefits e/ 24.46% Switching Valuec/ 64.00% One Year Delay in Implementation 29.77% All Four Tests Combined 20.64%

a/ From Table - “Economic Cost-Benefit Analysis for Water Supply Components (Tranche-2), Roorkee”. 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/ 20% decrease in project benefits 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 the

  ‐ 35 ‐ 

 

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-2 for Roorkee 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. 434 million to be implanted during the three year constriction period. Project Capital Cost - Rs Million – (Tranche-2)

Details Total Base Cost 434 Landed Cost 543

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 financially viable considering the present WACC of 3.5%. Also, the project revenue stream will meet the 100% O&M recovery from the operation start year.

                                                            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.

  ‐ 36 ‐ 

 

Weighted Average Cost of Capital (%) - Uttaranchal

ADB Loan Counterpart Equity

WACC Govt. of India Onlending b

Govt. of India Grant a

Govt. of India Grant a

Govt. of Uttaranchal d Item

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, Roorkee (Tranche-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 2, Roorkee 9.4% 6.9% 7.9% 6.8% 6.7% Note: Base Case refers to the Scenario with the assumption of implementing FIAP user charge proposals, without sensitivity test. In general the project is viable under financial feasibility with respect to recovering the WACC along with 100% O&M cost recovery. 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 Roorkee under Tranche 2 is found to be financially viable, with the calculated FIRR values is above the WACC (3.5%), for the recommended user charges under FIAP. Also, the project ensures 100% O&M recovery from the operation start year.

  ‐ 37 ‐ 

 

  ‐ 39 ‐ 

Appendix 2: Financial Feasibility Analysis - Water Supply Component - Roorkee Town - Tranche 2

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 54.27 - 0.00 0.00 0.00 -54.27 2012-13 271.33 - 0.00 0.00 0.00 -271.33 2013-14 217.06 - 0.00 0.00 0.00 -217.06 2014-15 - 22.13 37.15 0.54 37.69 15.56 2015-16 - 22.13 43.33 0.15 43.48 21.35 2016-17 - 22.13 43.77 0.15 43.92 21.79 2017-18 - 22.13 50.83 0.18 51.01 28.88 2018-19 - 22.13 51.34 0.18 51.52 29.39 2019-20 - 22.13 51.85 0.18 52.04 29.91 2020-21 - 22.13 60.23 0.21 60.44 38.31 2021-22 - 22.13 60.83 0.21 61.05 38.92 2022-23 - 22.13 61.44 0.22 61.66 39.53 2023-24 - 22.13 71.36 0.25 71.61 49.48 2024-25 - 22.13 72.08 0.25 72.33 50.20 2025-26 - 22.13 72.80 0.26 73.05 50.92 2026-27 - 22.13 84.55 0.30 84.85 62.72 2027-28 - 22.13 85.40 0.30 85.70 63.57 2028-29 - 22.13 86.25 0.30 86.56 64.43 2029-30 - 22.13 100.18 0.35 100.54 78.41 2030-31 - 22.13 101.18 0.36 101.54 79.41 2031-32 - 22.13 102.20 0.36 102.56 80.43 2032-33 - 22.13 118.70 0.42 119.12 96.99 2033-34 - 22.13 119.89 0.42 120.31 98.18 2034-35 - 22.13 121.09 0.43 121.51 99.38 2035-36 - 22.13 140.64 0.49 141.14 119.01 2036-37 - 22.13 142.05 0.50 142.55 120.42 2037-38 - 22.13 143.47 0.50 143.97 121.84 2038-39 - 22.13 166.64 0.59 167.23 145.10 2039-40 - 22.13 168.31 0.59 168.90 146.77 2040-41 - 22.13 169.99 0.60 170.59 148.46 2041-42 - 22.13 197.44 0.69 198.14 176.01 2042-43 - 22.13 199.42 0.70 200.12 177.99 2043-44 - 22.13 201.41 0.71 202.12 179.99 Total 542.65 663.90 3,125.83 11.40 3,137.24 1,930.68 NPV at 3.51% 484.38 354.11 1,444.40 5.43 1,449.83 611.34 FIRR (%) 8.4%

 

Attachment-6

COMPLIANCE WITH THE SUBPROJECT ELIGIBILITY CRITERIA Sl. 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.

Subprojects are prepared in line with Master Plan submitted. Subprojects are being 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.

Being considered wherever applicable.

Large scale ground abstraction for augmenting water supply in Roorkee 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.

Detailed Hydro-geological study is being carried out engaging well experience institution. However Master planning is done considering surface as well as ground water sources and optimal use is calculated to take care of not to over exploit the ground water.

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 lay on two different sides of the road, However the water supply lines will be laid at higher level than the sewers, wherever has to be laid on 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 accounting is established and being maintained for the project.

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

QA/AC manual 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 is not eligible for funding under the Investment Program.

The Sub-Project 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 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

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

  ‐ 40 ‐ 

 

  ‐ 41 ‐ 

Eligibility Criteria Compliance Sl. No (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.

f) Analysis considered findings based on surveys conducted

3b. The EIRR of the water supply subprojects should be at least 12%. The EIRR is 29.78%, which is well above stipulated level

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 sub project 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: Rehabilitation and Augmentation of Water Supply in Roorkee Clearances 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)

Target Actual Target Actual Target Actual Target Actual Environmental Nil

Land acquisition Nil Temporary Land Clearance None NA NA April 2011 April 2011 May-June 2011 May-June 2011 NA NA Utility Shifting Right of Way acquisition National Highway National Highway Authority of India Delhi June 2011 June 2011 July 2011 State Public Works Roads State Public Works Department June 2011 June 2011 July 2011

City Roads Nagar Palika Parishad-Roorkee June 2011 June 2011 July 2011

 

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