UTTARAKHAND URBAN SECTOR DEVELOPMENT INVESTMENT PROGRAM

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

SUB-PROJECT APPRAISAL REPORT

REHABILITATION AND AUGMENTATION OF WATER SUPPLY SYSTEM IN RAMNAGAR

.

‐ 1 ‐ 

      

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

The Financing Framework Agreement (FFA) between India and ADB dated 21 November 2007 is to finance Uttarakhand Urban Sector Development Investment Program (UUSDIP). The total estimated cost of program is US $500 millions, out of which $350 million will be financed by ADB. The program is to be implemented in 4 tranches over a period of 8 years. Each tranche constitutes a separate loan. The Tranche-1 of UUSDIP (Loan 2410-IND) is under implementation. This subproject is proposed under Tranche-2 (Project-2) of UUSDIP. Ramnagar is an important town in the Kumaon region of Uttarakhand, and is one of the project towns. The town is situated between 29°24’ to 29°40’ North latitude and 79°07’ to 79°12’ East longitude. Areal extent of the town is 2.46 sq. km. The town is located at the foot of the Himalayan sub-mountainous tract on the bank of River Kosi. The population as per 2001 Census is 47,099 and present projected population is 65,626 and the average yearly growth rate is 4.05%. First piped water supply in Ramnagar was introduced in the year 1957 using tube wells, and was upgraded in two phases. Source augmentation from River Kosi was completed in 1984 and Banga Jhala gravity main was completed in 2007. With passage of time and due to reduction in efficiency of pumping plants, the present yield from all the sources is only 67% of design yield. The existing water supply system in Ramnagar town, dating over 50 years old, is not well organized. The town consists of two water supply zones - (i) urban zone (covering whole of the municipal area), and (ii) peri-urban zone (a semi-developed suburban area). Clear Water Reservoir (CWR) located at Thapli is the main service reservoir serving entire urban zone, while peri-urban zone is served by a separate reservoir located at Lakhanpur. Water produced from Kosi River (49% of overall water production in the town) is pumped to the CWR at Thapli from where it is distributed by gravity to the entire municipal area of the town. Banga Jhala gravity source (40%) and tube wells (11%) join the above distribution system in-between and cater a large portion of municipal area. A separate transmission mains feeds peri-urban CWR from water works at Kosi River source from where the water is distributed to peri-urban area using a separate distribution mains. All water supply scheme of the town is implemented by Uttarakhand Pey Jal Nigam (UPJN) and maintained by Uttarakhand Jal Sansthan (UJS). In spite of the availability of adequate water sources (Kosi and Banga Jhala rivers) and water production level of 11.27 MLD, the actual supply at the consumer end is only 6.76 MLD due to huge system losses; resulting in average service level of 103 lpcd. Average supply duration is 5 hr, ranging from 4 hr to 6 hr, and average water pressure at consumer end is 0.6 kg/cm2, varying from 0.3 kg/cm2 to 0.9 kg/cm2, which is due to the unreasonably large command area of the CWR and poor design of reticulation system. Quality of the water at consumer end is not satisfactory; particularly during the rainy season when surface run-off easily finds way into the old & dilapidated distribution pipes. Banga Jhala gravity source is practically shut-down during the rains due to high ingress of silt.

‐ 2 ‐ 

      

B. The Need of the Project A detailed assessment of existing situation was carried out, which concludes that the present water production of 11.27 MLD is sufficient for present population, but insufficient for the base year (2013) and afterwards. Present demand-supply gap in the water supply system is due to (i) non-zoning of the town, (ii) poor water supply reticulation system, (iii) old and leaking distribution pipes, and (ii) inadequate water treatment facility. These issues need to be addressed immediately to provide water supply to the citizens of Ramnagar town as per the National standards. The table below shows the major demand-supply gap with respect to water supply benchmarks. Table 1: Demand - Supply Gap

Parameters Present Status Requirement / Demand Gap 2013 2028 2043

Permanent population covered with city water supply system

65,626 70,128 1,15,343 1,89,709 2013: 4,502 2028: 49,717 2043: 1,24,083

Floating population covered with city water supply system per day

1800 2000 3000 4500 2013: 200 2028: 1200 2043: 2700

Population receiving water as per GoI standard

0 (Quality not conforming)

70,128 1,15,343 1,89,709 2013: 70,128 2028: 1,15,343 2043: 1,89,709

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

capita supply

(2) Duration (3) Quality

103 lpcd

5 hrs Poor

135 lpcd

24 hrs As per GoI Standard

135 lpcd

24 hrs As per GoI Standard

135 lpcd

24 hrs As per GoI Standard

2013: 32 lpcd 2028: 32 lpcd 2043: 32 lpcd

Production of potable water (i) Surface water (ii) Ground water

Total

10.0 MLD 1.27 MLD

11.27 MLD

12.38 MLD 0.94 MLD 13.32 MLD

20.34 MLD 0.94 MLD 21.28 MLD

34.07 MLD 0.25 MLD 34.32 MLD

2013: 2.05 MLD 2028: 10.01 MLD 2043: 23.05 MLD

Physical losses 40% (4.51 MLD)

15% (1.99 MLD)

15% (3.19 MLD)

15% (5.15 MLD)

To be reduced by 25%

Total water available at consumer end

6.76 MLD 11.33 MLD 18.09 MLD 29.17 MLD 2013: 4.57 MLD 2028: 11.33 MLD 2043: 22.41 MLD

Transmission line:

Length: 4.38 km Condition: Poor (It cannot be reused)

5.19 km Good

5.19 km Good

5.19 km Good

2013: 5.19 km 2028: 5.19 km 2043: 5.19 km (Existing transmission mains need replacement; hence, actual gap is 5.19 km)

Distribution line Length: 34.27 km Condition: Poor (It cannot be reused)

58.55 km Good

58.55 km Good

58.55 km Good

2013: 58.55 km 2028: 58.55 km 2043: 58.55 km (Existing distribution mains of 34.27 km, need replacement; hence, actual gap is 58.55 km)

Storage 4.225 ML 10.725 ML 10.725 ML 10.725 ML 2013: 6.5 ML

‐ 3 ‐ 

      

Parameters Present Status Requirement / Demand Gap 2013 2028 2043

requirements 2028: 6.5 ML 2043: 6.5 ML

House connection 6482 (It cannot be

reused)

7,025* 7,700 8,100 2013: 7,025 2028: 7,700 2043: 8,100

Meter 0 7,025** 7,700 8,100 2013: 7,025 2028: 7,700 2043: 8,100

Note: * Including Bulk Connections also ** Including Bulk meters also

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 upgradation of the system; (c) The existing water transmission and distribution system suffers from defects and huge sytem losses

as these have also outlived their design life and have become insufficient to cope with increased water demand of the town;

(d) WTP has outlived its design life and therefore is not functioning at its full capacity; and (e) There is no water metering system at consumer end resulting indiscriminate usage of water and

revenue.

6. SUBPROJECT RATIONALE Investment for Water Supply System of Ramnagar town is evident from above reasons. Hence, it is essential to address the service level disparities in water supply compared to the national average and national standard and will also contribute in achieving India’s 11th Five year plan target to provide potable water supply to the entire urban population of India.

7. DESCRIPTION

D. Subproject Area Ramnagar is developing more rapidly than before. The haphazard development and reckless construction activities created more stress on the civic amenities. The present (projected) population of the town is 65,626 and it is projected that the population of Ramnagar will become 1,15,343 and 1,89,709 by 2028 and 2043 respectively. The subproject will cover an area of 2.46 sq km. The key features of the subproject area are as under: Climate: Ramnagar experiences a relatively moderate temperature; average annual temperature varies from 15°C to 30°C. Average annual rainfall recoded is approx. 2,560 mm. Topography: Ramnagar town has a gentle slope from north to south; it also slopes eastwardly (towards river Kosi) in the northern part. Difference between highest and lowest ground levels is 50 m. Soil Conditions: Ramnagar is a part of Bhabhar zone. The soil strata of town generally constitute clay, mixed with bajri and boulders. The ground water table level is below 70 m. Road: Total road length of the town is 70 km out of which about 60% (42 km) is concrete road and rest is black top, i.e., bituminous. Width of cement concrete roads varies from 2 m to 6 m, and that of bituminous roads varies from 5 m to 7.5 m.

‐ 4 ‐ 

      

E. Assessment of Existing Situation

Water Source: The source of water is combination of ground water and surface water (from Kosi River and Banga Jhala). Ground Water: Data pertaining to availability of ground water in Ramnagar town was not available with Central Ground Water Board. However, present abstraction of groundwater in Ramnagar town for water supply purposes is 1.27 MLD from 2 tube wells. Past record (maintained by UPJN) has not shown decline in the discharge of the tube wells. The existing tube wells need to be redeveloped and appurtenant works to be renovated. Surface Water: The surface water sources are Kosi River and Banga Jhala. The minimum availability of raw water in the lean period in above two sources is as follows: Kosi: 83 MLD (Source: Discharge measurement data obtained from Uttarakhand Irrigation Deptt.) Banga Jhala: 50 MLD (Source: Discharge measurement done by DSC-2). Population: Total: 65,626 Covered with city water supply: 65,626 However, the supply level is much below stipulated level of @ 135 lpcd at the consumer end and not as per the quality standards of GoI. Water Quality: Ground Water: Test results (sampling & testing conducted by DSC) have revealed that water quality parameters are well within permissible limits and ground water does not require any specific treatment except chlorination. Surface Water: Raw water of Kosi River source needs proper treatment (sampling & testing conducted by DSC). Intakes: Existing Intake at Kosi River has a design capacity of 10 MLD; however, the present yield is only 5.5 MLD. The intake was damaged during floods in 2010 and abandoned afterwards. Intake at river Banga Jhala has a design capacity of 5 MLD, but present yield is 4.5 MLD. Physical / structural condition of the Intake is good; only minor repair in inlet arrangement is required. Transmission Mains: Except for two transmission mains (one laid in 1957 and later in 1971), all other lines were laid in 1983. Total length of transmission mains in Ramnagar is 4.38 km; sizes varying from 150 mm to 400 mm; all of CI. Physical condition of the transmission mains is very poor leading to huge transmission losses. Except for one transmission mains (400 mm dia.), all other sizes are inadequate for future demand. Details of existing transmission mains are shown below: Table 2: Details of Existing Transmission Mains

S. No. From To Length Dia. Year of Laying

Material m mm

1 Raw water pumping station

WTP 80 400 1983 CI

2 Clear water pumping station

2500-KL GLSR at Thapli 740 400 1983 CI

3 Clear water pumping station

1500-KL GLSR, Lakhanpur, Ward 14

1000 150 1983 CI

4 Clear water 225-KL OHSR, Paith 1,415 150 1983 CI

‐ 5 ‐ 

      

S. No. From To Length Dia. Year of Laying

Material m mm

pumping station Padao, Ward 5 5 TW1 Defunct - - - - 6 TW2 Direct supply 300 150 1957 CI 7 TW3 1500 KL GLSR, Ward

No. 14 850 150 1971 CI

Total 4385 Water Treatment Plants: There is one water treatment plant (WTP) located at Baldiya Padao water works and the detailed are as below: Table 3: Details of WTP

WTP Location Age (Years) Installed Capacity (MLD)

Present Production (MLD)

Baldiya Padao 27 10 5.5 Physical condition of the WTP is very poor; particularly the clariflocculator is not functioning well. Filter units and disinfection systems are also in very poor condition. Tube Wells: Total number : 2 Average life : 40 years Size : 150 mm Total design yield : 2.31 MLD Total present yield : 1.27 MLD Quality and treatment : Good, Only chlorination Hours running per day : 16 hrs No. of tube wells needs redevelopment : 2 Pumps and Pumping Equipment: There is one raw water pump house having five pumps, and one clear water pump house having seven pumps. Both these pump houses were constructed in 1983. Physical condition of the raw water pump house is very poor, but that of clear water pump house is satisfactory. Storage Capacity: Inadequate storage capacity is one of the major bottlenecks in the existing water supply system. Presently there are 4 service reservoirs in Ramnagar town, two are being used and two are non-operational. Total storage capacity of all 4 service reservoirs is 4.45 ML, but capacity in use at present is 4.0 ML only. One of the two working reservoirs serves entire municipal area while the other serves the peri-urban area of the town. Physical condition of these two reservoirs and one non-working reservoir is good, but requires minor repairs. One of the two non-working reservoirs of 0.225 ML capacity needs to be discarded; hence additional 6.5 ML storage capacity is required to be developed. Distribution System. The total distribution network is about 34.27 km, laid periodically. Most of these pipelines are very old and have out lived their service life. In many stretches these pipelines have gone to deeper depths due to improvements made in the road surface and have become inaccessible for repairs. The pipe material used in the existing distribution lines is GI and CI. The pipe diameters are varying from 50 mm to 400 mm and the age of the pipeline is on average above 50 years except few higher diameter sizes, the age of which is about 27 years; but the total length needs to be replaced so as to ensure proper zoning and good reticulation system. Stand Posts: There are no Stand Posts in Ramnagar town.

‐ 6 ‐ 

      

House Connections: Presently there are 6,482 house service connections using GI pipes of 15/20 mm sizes without ferrules; condition of house service connections is extremely poor. System Losses: Study has revealed that approx. 40% system losses are taking place at present. Power Situation: Availability of electric power in Ramnagar is erratic and intermittent; on average 16 hours power supply is available in the town. Energy Consumption: At present the existing water supply system consumes approximately 230 KVAH/ML of water produced. The proposed system will consume 198 KVAH/ML of water produced. Thereby, there will be a saving of 32 KVAH/ML of water produced, or, 14% in power consumption. Operation and Maintenance: Water supply is operated and maintained by Uttarakhand Jal Sansthan (UJS). Total annual budget of overall O&M is approx. INR. 11.0 million (Source: Uttarakhand Jal Sansthan, Ramnagar). Break-up of the budget is as follows: Table 4: Details of O&M Cost

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

1 Works (Civil + E&M) 0.14 2 Materials / Chemicals 1.26 3 Power 3.00 4 Human Resource 6.60 5 Fuel - 6 Others - Total O&M Cost 11.00

Total collection against above cost is Rs.11.0 million, thereby collection efficiency is 100%. O&M of Water Supply & Sewerage is being carried out by Jal Sansthan, a GoU undertaking with its HQ at Dehradun. Jal Sansthan is also responsible for billing and collection. It is headed by a Chief General Manager who is assisted by a number of senior level Engineers and Officers from other disciplines such as Procurement, Administration Accounts etc. in HQ. The Jal Sansthan in Kumaon Region is headed by General Manager whose office is located in Nainital. At Ramnagar, it is headed by respective EE whose office is located in Ramnagar town. As per organisation chart, the EE is assisted by AEs, JEs and Field Staff (Pump Operators and Fitters etc.). Presently only three SEs are looking after all 6 districts. SE Nainital is also looking after district of Udham Singh Nagar, SE Almora is also looking after district of Bageshwar and SE Pithoragarh is also looking after district of Champawat. Table 5: Details of Manpower

S. No.

Position Sanctioned Post

Actual Posting

Gap Contracted Manpower

Net Vacant Post

1 SE (Nainital) 1 1 0 0

Nil 2 EE 1 1 0 0 3 AE 1 1 0 0 4 JE 1 1 0 0

‐ 7 ‐ 

      

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

Table 6: Govt. Action to Address Demand-Supply Gap

Parameters Gap in Infrastructure Tranche-2 Other Government Program

Balance

Production of potable water

2013: 2.05 MLD 2028: 10.01 MLD 2043: 23.05 MLD

Augmentation by 23.05 MLD

Nil Nil

Physical losses

2013: 25% 2028: 25% 2043: 25% (Physical losses are 40% at present; thus, 25% on higher side)

Reduction of losses in system by 25% from 40% to 15%

Nil Nil

Transmission line

2013: 5.19 km 2028: 5.19 km 2043: 5.19 km (Existing transmission mains of 4.38 Km length need replacement; hence, actual Gap is 5.19 km)

5.19 km Nil Nil

Distribution line

2013: 58.55 km 2028: 58.55 km 2043: 58.55 km (Existing distribution mains of 34.27 km length need replacement; hence, actual Gap is 58.55 km)

58.55 km Nil Nil

Storage requirements

2013: 6.5 ML 2028: 6.5 ML 2043: 6.5 ML (1 CWR of 0.225 ML capacity is damaged; hence, actual Gap is 6.5 ML)

6.5 ML Nil Nil

House connection

2013: 7,025 nos. 2028: 7,700 nos. 2043: 8,100 nos. (Existing house connections need total replacement; hence, actual Gap is 7,025, 7,700 and 8,100)

7,025 nos. Will be taken up periodically

2028: 675 nos. 2043: 1,075 nos.

Meter 2013: 7,025 nos. 2028: 7,700 nos. 2043: 8,100 nos.

7,025 nos. Will be taken up periodically

2028: 675 nos. 2043: 1,075 nos.

G. Objective of the Subproject

The objective of this subproject is to provide potable water at 135 lpcd to 100% population of Ramnagar at approximately 17 m head except in specific cases having higher ground elevation where it will be minimum of 12 m. This subproject also aims to reduce energy consumption per ML of water produced. Beneficiaries: Total Design Population (beneficiaries) for Ramnagar town can be summed up as: ▪ 2013 – 70,128 ▪ 2028 – 1,15,343

‐ 8 ‐ 

      

▪ 2043 – 1,89,709 The floating population, which is 2,000, 3,000 and 4,500 respectively at above three stages, will also be benefited from the subproject. In addition, the project will also benefit the commercial and institutional establishments with approx. 4% water demand by additional water production over the requirement for resident and floating population. Improved Service Level: ▪ Per capita supply at consumer end – 135 lpcd; ▪ 24x7 water supply; ▪ Quality of the potable water as per GOI standard; ▪ Physical losses: reduced from present 40% to 15%; ▪ Reduce energy consumption by 14%; ▪ Reduce commercial losses by introducing consumer meters; ▪ Wholesome potable water supply to commercial and institutional units and all residents

H. Subproject Components Intake Works: River Kosi: An intake well will be constructed in Kosi River to withdraw 25 MLD of raw water in place of existing intake well, which is to be abandoned. It will feed proposed WTPs (two nos.) at Baldiya Padao (existing water works campus). The highest flood level recorded in river Kosi was in the year 2010, which was recorded as 356.25 m RL. Height of the existing Kosi barrage; constructed and maintained by Irrigation Dept. (approx. 500 m downstream from the intake well), is 358.5 m RL. Thus, the height of the proposed intake well will be kept above 358.5 m RL. Proper protection measures will be taken to safeguard the intake well against the flood. It is proposed to construct an RCC protection wall and reflecting spurs (controls the direction of river flows) upstream of the proposed intake well, which will reduce the direct flood-impact on the proposed structure and protect the structure against flood. An infiltration well of 5 MLD discharge will also be constructed at Banga Jhala. It will feed one of the water supply zones after chlorination. Transmission Mains: (i) Existing raw water and clear water transmission mains will be discarded. (ii) New raw water transmission mains, 2 nos., size 400 mm each (total length 100 m), DI K-9 material,

will be laid from proposed Intake Well at Kosi River to the proposed WTPs at existing water works campus. These transmission mains will augment raw water withdrawal from present 5.5 MLD to 25 MLD at the end of design year.

(iii) New clear water transmission mains will be laid from proposed WTPs (at existing Water Works campus, Baldiya Padao) to feed different CWRs; details are below:

Table 7: Details of Proposed Clear Water Transmission Mains

S. No.

From To Length Prop. Dia Remarks m mm

1 WTP, Existing Water Works campus, Baldiya Padao

Existing GLSR at Thapli (Zone-II)

720 300 DI K-9

2 WTP, Existing Water Works campus, Baldiya Padao

Junction 1 (Lakhanpur Chungi)

890 300 DI K-9; Common rising mains for Lakhanpur OHSR, Lakhanpur GLSR (Bulk demand of Periurban) and Paith

‐ 9 ‐ 

      

S. No.

From To Length Prop. Dia Remarks m mm

Padao OHSR 3 Junction 1

(Lakhanpur Chungi) Proposed OHSR at Lakhanpur (Zone-III)

175 300 DI K-9; First branch of common rising mains: for Lakhanpur OHSR and Lakhanpur GLSR (Bulk demand of Periurban)

4 Junction 1 (Lakhanpur Chungi)

Existing OHSR at Paith Padao (Zone-V)

530 100 DI K-9; Second branch of common rising mains for Paith Padao OHSR

5 WTP, Existing water works campus, Baldiya Padao

Proposed OHSR at Lakhanpur Chungi (Zone-IV)

960 300 DI K-9

6 WTP, Existing water works campus, Baldiya Padao

Proposed OHSR at Tehsil (GIC) (Zone-VI)

1,865 300 DI K-9

7 Raw water sump WTP, Jal Sansthan

50 400 DI K-9

Total 5,190 As clear from the above table, there are 4 clear water transmission mains: one feeding existing Thapli CWR, one feeding existing Paith Padao and proposed Lakhanpur CWRs, one feeding proposed Lakhan Chungi CWR, and one feeding proposed GIC CWR. Except for the one feeding existing Thapli CWR, all other transmission mains have common route from the WTP to Lakhanpur Chungi junction. As suggested by the ADB during their Mission visit (9-21 May, 2011), these transmission mains should be designed as single transmission main from the WTP to Lakhanpur Chungi junction to avoid laying & jointing complications. Revised hydraulics has been worked out, and the size of such common transmission main is 500 mm dia. (Attachment 8). It is, however, submitted here that providing a single transmission main instead of three separate ones may result in difficulties in the crisis management. In the event of failure of this pipeline for any reason, it will disrupt the water supply of 5 zones covering nearly 80% of the town’s population. As far as inconveniences in laying of three separate transmission mains is concerned, different routes have been identified, which do not bring about much difference in the pipeline length. Hence, it is recommended that separate transmission mains be laid. The transmission main leading to the existing Thapli CWR (situated inside Jim Corbett National Park) will be passing through the Jim Corbett National Park to join the above CWR. The existing transmission main (CI, 400 mm dia.) is approx. 27 year old and is in very poor physical condition. At present, it is leaking heavily, which causes soil erosion inside the National Park. Therefore, it is essential to replace this pipeline. Corbett National Park authorities have been contacted for the NOC, and as suggested by them, the case has been submitted to them. The authorities have assured to give the NOC by June 15, 2011. (iv) A gravity main of MS-ERW material, 350 mm dia. will be laid from proposed Banga Jhala Infiltration

Well to Lakhanpur Chungi, Ramnagar. Length of the gravity main will be 11.5 km. The gravity main will be passing through reserve forest, and NOC will be required for laying of the pipeline in the forest land. In this regard, several meeting have been held with the DFO, Ramnagar, and the issue has been properly discussed. The DFO has also discussed the matter with their Head Office at Dehradun who have clarified that they have no objection as the total RoW area is only 0.862 ha (< 1 ha). The Forest Deptt. has suggested to submit the case in appropriate format (already provided by them). The application has been submitted, and NOC will be obtained by June 15, 2011.

‐ 10 ‐ 

      

Water Treatment Plants: (i) Replacement of Existing WTP: Existing WTP will be dismantled and new WTP will be constructed;

details are shown below: Table 8: Details of Replacement of Existing WTP

Existing WTP New WTP as Replacement

Location Year of Construction

Design Capacity

Present Capacity

Present Quality

Major Defect Location Capacity

Existing water works, near Kosi River, Baldiya Padao, Ramnagar

1983 10 MLD 5.5 MLD Poor Clariflocculator and filter units not functioning well. Physical condition is very poor.

Same location

14 MLD

(ii) New WTP: Construction of new WTP of 11 MLD capacity in the same campus, i.e., existing water

works campus at Baldiya Padao. Distribution System: (i) Replacement of 34.27 km existing distribution pipe lines of size varying from 50 mm to 400 mm dia.

New distribution pipe lines will be of DI K-7 / GI material of different sizes from 100 mm to 400 mm. It will reduce distribution losses by 10% and also ensure rational zoning and equitable distribution of water.

(ii) Laying of new distribution pipe lines of 24.28 km length, sizes varying from 100 mm to 450 mm. Pipe material will be DI K-7 / GI. The new distribution system will cover entire municipal area of Ramnagar town (divided in 6 water supply zones).

House Connections and Water Meters: (i) Replacement of 6,482 nos. existing house service connections by new house service connections.

Total no. of house service connections will be about 7,025. (ii) Installation of 7,025 nos. manual water meters.

Table 9: Details of Existing and Proposed OHSR/GLSR

S. No.

CWR/Zone CWR Location Capacity (KL)

RL of CWR Location, m

Max./Min. RLs of Command

Area, m

Owner of Land

1 Existing Thapli GLSR, Zone-II

Near PWD Office

2500 413.00 384.8/357.24 Jal Sansthan

2 Proposed Lakhanpur OHSR, Zone-III

Existing 225-KL OHSR, ward 14.

1600 385.60 386.16/356.66 Jal Sansthan. (Existing 225 KL OHSR to be dismantled and new OHSR of 1600 KL capacity to be constructed).

3 Proposed Lakhanpur Chungi OHSR, Zone-IV

Lakhanpur Chungi junction.

2600 378.00 362.56/343.52 Jal Sansthan.

4 Paith Padao, Zone-V

Near Pey Jal Nigam Office, Ward 5.

225 364.64 370.46/358.72 Jal Sansthan.

5 Tehsil (GIC) Zone-VI

Near Tehsil, Ward 5 Primary

2300 358.23 360.64/336.73 Nagar Palika NOC Obtained

‐ 11 ‐ 

      

S. No.

CWR/Zone CWR Location Capacity (KL)

RL of CWR Location, m

Max./Min. RLs of Command

Area, m

Owner of Land

School Campus Khatadi

6 Lakhanpur GLSR Periurban

Lakhanpur, ward 14

1500 383.42 - Jal Sansthan

10725

Installation of SCADA System: SCADA system will be installed for better control on O&M, rendering information and revenue generation.

I. Clearances and Land Acquisition

No land acquisition is required. Permission for road cutting has already been granted through Government Order No. 50/111/(3)2011-905 (ADB/2011, Dated 9 Feb., 2011). NOC/ clearance from Forest Department for laying of pipeline through reserve Forest (from Banga Jhala intake to town). Permission from Irrigation Department for construction of Infiltration Well and Intake. No Objection Certification (NOC) and Consent for Establishment (CFE) for construction of WTP from Uttarakhand Environmental Protection & Pollution Control Board (UEPPCB). Risk and Assumptions for Implementation of Subproject: ▪ Risk of potential contractors to work in Uttarakhand. ▪ Limited availability of experienced construction agencies within the state, which might cause delay in

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

and congested areas. ▪ 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. Forest land permission is likely to be obtained by 15th June, 2011

8. DESIGN FEATURES

A. Design Period The design period is 30 years after implementation; Base Year is 2013, Intermediate Year 2028 and Ultimate Design Year 2043.

B. Design Basis The works under the subproject are proposed to be designed as per the norms recommended in CPHEEO Manual of Govt. of India. The coverage of the population is given below. Urban Population Coverage: - Present urban population (2011) 65,626 - Urban population in base year (2013) 70,128

‐ 12 ‐ 

      

- Urban population at intermediate year (2028) 1,15,343 - Urban population in ultimate stage (2043) 1,89,709 Population Presently availing services as per the GoI standards: - Population presently availing service of - Government standard Water supply Nil (Quality aspect)

Targeted additional population that will avail services as per the GoI standards: - Target additional population that will be 2013 70,128 - Availing service of Government standard 2028 1,15,343 - Water supply on completion of project 2043 1,89,709 Capacity Improvement: Production of Water - Production of water at present (2011) 11.27 MLD - At project completion (2013) 21.94 MLD

Water available at the consumer end - Present 6.76 MLD - At project completion

- By source augmentation 10.50 MLD - By reduction in physical losses 2.82 MLD

Service level of water supply: - Present quantity 103 lpcd - Targeted quantity 135 lpcd - Present residual head 3 to 9 m. - Targeted residual head 17 m - Present quality Contaminated, High turbidity,

Poor to taste in most areas - Targeted quality As per GoI Standard

System Storage Capacity: - Present 4,225 KL - Targeted 10,725 KL Other design features to be considered are:

Pipe materials : DI K-9/ DI K-7/MS-ERW/GI pipe material Head loss calculation based on : Hazen William / Darcy Weisbach formula Pipe roughness coefficient : C = 140, f = 0.024 WTP design criteria : As per CPHEEO Manual. Distribution network design : EPANET software

‐ 13 ‐ 

      

9. PROJECT COST

A. Subproject Estimated Cost

Table 10: Cost of Subproject S. No. Component / Item Amount in INR (Million) Amount in US $ (Million)

A Civil Works 1. Rehabilitation & augmentation of water supply

system including house service connection (WSS01RM)

410.3 9.12

Civil Work Base Cost (A) 410.3 9.12 B Contingencies 1. Physical contingencies @ 5% 20.52 0.46 2. Price contingencies @ 10% 41.03 0.91 Sub Total B 61.55 1.37 Total A+B 471.85 10.49

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

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

11. PROCUREMENT AND CONSULTANT SELECTION

A. Procurement Method There will be a single package under item rate contract to be floated under NCB package. Bidding will follow ADB Single Stage Two Envelope Bidding procedure.

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.

‐ 14 ‐ 

      

B. Estimated Annual O&M Cost The O&M cost for the work under this subproject worked as follows: Table 11: Details of O&M Expenditure for Water Supply Subproject, Ramnagar

Component O&M Cost per

year up to 2023 O&M Cost per year up

to 2033 O&M Cost per

year up to 2043 O&M cost per year (average)

INR (Million) Electric power 6.93 7.28 7.64 7.28 Civil works 0.86 0.99 1.14 1.00 WTP Chemicals and material 3.54 4.07 4.68 4.10

Man power 10.81 11.89 13.08 11.93 Fuel - - - - Others - - - - Total 22.15 24.23 26.55 24.31

13. ECONOMIC AND FINANCIAL ANALYSIS

A. Economic Analysis

Estimated Economic Internal Rate of Return (EIRR) is 17.70% The main evaluation has indicated that the proposed water supply sub projects under Tranche-2 for Ramnagar 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 Financial sustainability and viability analysis and the sensitivity analysis results in terms of FIRR are presented below. Table 12: Financial Viability Sensitivity Analysis Results – WS Subproject, Ramnagar (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, Ramnagar

5.8% 5.3% 5.5% 4.9% 5.0%

Source: Analysis The main evaluation has indicated that the proposed water supply sub projects for Ramnagar 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 on economic and financial analysis is presented in Attachment 5.

‐ 15 ‐ 

      

14. ENVIRONMENTAL ASSESSMENT

A. Brief Description of Environmental Impact

This proposed water supply subproject in Ramnagar includes: ▪ Replacement of distribution network (34.27 km of 50-400 mm diameter) and laying of new network

(24.28 km of 100-400 mm diameter) in the town ▪ Construction of an new infiltration well in Kosi River adjacent to the existing infiltration well (capacity

augmentation from present 5.5 MLD to 25 MLD for ultimate design year 2043) ▪ Construction of intake in Banga Jhala stream adjacent to the existing intake (capacity augmentation

from present 5 MLD to 10 MLD) ▪ Construction of a new WTP of 11 MLD capacity at existing Water Works campus, Baldiya Padao on

the bank of Kosi River. ▪ Laying of pipeline from infiltration well in Kosi River to Baldiya Padao WTP (50 m length of 400 mm

diameter pipes - 2 nos) ▪ Laying of Gravity Main from Banga Jhala to Ramnagar (11.5 km) ▪ House service connections (7,025 nos) Subproject is located in Ramnagar Town of Nainital District in the southern part of the state. The Town is situated near the foothills of Shivalik Ranges and shares its northern boundary with Jim Corbett National Park. The Park is spread over an area of 521 sq. km, consists mainly of Patlidoon Valley drained by Ram Ganga River (Map 1). Owing to the town location, all the subproject sites fall within 2-5 km distance from the boundary of the National Park. However, part of pipeline work (about 200 m length each of rising mains and distribution mains for existing Thapli CWR) are situated within the National Park due to the location of existing Thapli CWR. National Park related permissions or clearance will be required from the Forest Department for the above. No other interference with the Park is envisaged. The proposed infiltration well in Kosi River bed will be constructed adjacent to the existing inflitration well. This site is located within the municipal area. Permission would be required from the Irrigation Department / UPJN. The new intake in Banga Jhala will be constructed near the existing intake in the stream. This site is located in the Ram Nagar Reserve Forest, and is accessible by road. The existing intake was constructed / commissioned in 2007, for which no permission from Irrigation Department was required or obtained. The Pey Jal Nigam has constructed a low-level anicut to allow withdrawal of water for supply to Ramnagar Town. Permission from Irrigation Department / Pey Jal Nigam will be obtained for increase in abstraction and construction of new intake. The Pey Jal Nigam in principle agreed for the augmentation. However, as the stream in general and anicut in particular is under the Pey Jal Nigam, no permission will be required from Forest Department. The proposed augmentation of water extraction from Kosi River, from the existing 5 MLD to 10 MLD, is not likely to have negative impacts (lean season flow is in the range of 109 MLD to 156 MLD). There is adequate flow in the river and the water extraction is permitted by the Irrigation Department, which owns and maintains the barrage across the river, 500 m downstream of the proposed infiltration well site. The new infiltration well will be constructed in the river adjacent to the existing one, and the WTP will be constructed within the existing facility on the banks of the river. Similarly, no impacts envisaged from increase of water extraction from Banga Jhala (from 5 MLD to 10 MLD), as this stream also carries considerable flow (lean season flow is more than 50 MLD). As there is no major water abstraction, down steam impacts are unlikely. Moreover, the water is abstracted with the permission of Irrigation Department. There is no pollution source upstream, and there is no risk of raw water pollution / contamination. The proposed water network will be developed mostly within the town 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

‐ 16 ‐ 

      

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. The proposed gravity main from Banga Jhala to the town will be mostly located outside the town in Ramnagar Reserve Forest. This will be laid along the stream for about 1 km and along the existing road for about 10 km. The pipeline will be laid within the right of way of an existing pipeline (this was laid in 2007). Permission/NOC from the Forest Department will be required for laying of this additional pipeline. Although park has significance presence of wildlife, no major impact is envisaged as the pipeline will be laid along the road, which carries considerable traffic. This will involve no tree cutting, and the pipeline will be laid parallel to the existing one. The measures such as limiting work hours to day-time and scheduling the work when traffic on the road, working section-wise, covering the trenches in the night, etc, will avoid any impacts. Construction impacts include, impacts associated with the site cleaning, earth works, physical construction related materials movements and works, machinery, vehicles and workers. Major impacts envisaged are dust generation, from disposal of surplus soil, silt run off, noise and air emission from construction, blockage of access to houses and commercial area, damage to other infrastructure etc. As the work is to be implemented within city area, general public is likely to be exposed to dust and noise generated during construction, access obstruction to residential. However, adequate precisions will be taken to avoid the impacts. 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. The sites of infiltration well/intake construction in the river bed will be confined/protected so that the flow of river is separated from the construction work. Work will be conducted in the lean season and no major impacts envisaged. One of the main O&M activities will be water treatment including disinfection. Necessary measures for safe handling and application of chlorine are included. Detection, and repair of leaks and pipe bursts is another main activity. These are however likely to be minimal as proper design, and selection of good quality pipe material should mean that leaks are minimal. The residual chlorine level in the distribution lines will be ensured as per the norms. The Environmental and Safety measures at WTP will be ensured through Environmental Monitoring Plan. Although Banga Jhala intake is situated in Reserve Forest, since the system is gravity-based, no day-to-day operation will be required. Public consultation is being 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.

‐ 17 ‐ 

      

Map 1: Location of Subproject

‐ 18 ‐ 

      

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

‐ 19 ‐ 

      

Environmental Categorization Form

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

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

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

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

Category A {X} Category B

Category C

Category FI

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

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

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

Endorsed by: Team Leader, DSC-2

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

Approved by: Dy Program Director, IPMU

Endorsed by: Environmental Officer, IPMU

Highly Complex and Sensitive Project

Director, {Division} Chief Compliance Officer

Date: Date:

‐ 20 ‐ 

      

15. INVOLUNTARY RESETTLEMENT

A. Brief Description of Resettlement Issues

This proposed subproject of water supply system is for the entire Ramnagar town and designed in such a way so as to minimize land acquisition and resettlement impacts. Tranche-2 sub-project components such as source augmentation and construction of new WTP will be accommodated within the existing facilities’ premises and will not involve any permanent/temporary land acquisition and resettlement. Laying of connecting/gravity mains will also be accommodated within the existing RoW and UPJN premises and does not envisage any permanent/ temporary land acquisition and resettlement. However, forest department permission is required wherever gravity main from Banga Jhala passes through reserved forest areas of Ramnagar. Laying/replacement of distribution lines will also be undertaken within the existing RoW, however envisages temporary impacts for short periods on residents (who have extended household activities on roads and have built small structures like sitting platforms/steps) and 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. Construction activity will avoid disturbance of such structures wherever possible, however contractor need to demolish and reconstruct the same where is can be avoided. 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 Construction of infiltration well in Kosi River

The proposed sub-project component location is in the Kosi river bed and no land acquisition is required. There are no structures/activities in the vicinity that will be disturbed during construction activity.

2 Laying of pipeline from infiltration well in Kosi River to Baldiya Padao WTP (50 m. length)

Existing WTP at Baldiya Padao is situated adjacent to the proposed infiltration well along Kosi river. The pipeline will be laid within the existing campus of WTP which is under UJS ownership.

3 Construction of a new WTP (11 MLD capacity), Installation of clear water pumps in existing pumping station, and construction of 3,125 KL capacity clear water sump

Construction of new WTP will be undertaken within the existing campus of UJS at Baldiya Padao. Adequate land is available for expansion and no land acquisition is required. Construction of sump and pumping station will also be undertaken within the existing premises of WTP.

4 Rehabilitation of existing intake at Banga Jhala

The proposed sub-project component location is in the Kosi river bed (upstream of WTP location at Baldiya Padao) and no land acquisition is required. There are no structures/activities in the vicinity that will be disturbed during construction activity.

5 Laying of Gravity Mains from Banga Jhala to Ramnagar (11.5 Km)

The existing alternate source of water supply at Banga Jhala is situated almost 11.5 Km. from the town in the Ramnagar reserved forest. The source can be approached by pucca road constructed by forest department and existing gravity main

‐ 21 ‐ 

      

Sl. No.

Proposed Sub-component Land Acquisition and Resettlement Impacts

follows the similar alignment. A new gravity main will be laid alongside within the existing RoW and will not involve any additional land acquisition. However, forest department permission will be required for laying of new pipeline. The process for obtaining NOC for pipelaying has been initiated. The pipeline will be laid above ground over RCC pedestals to avoid root cutting of forest trees.

6 Construction of three CWRs - total capacity 6,500 KL)

First CWR - At the location of existing 225-KL capacity OHSR, Lakhanpur (after dismantling the existing tank). Land is under UJS ownership

Second CWR – At Ramnagar Nagar Nigam land near government Girls Inter College campus. NOC provided by the Nagar Nigam for construction of CWR.

Third CWR - At UPJN land in Lakhanpur Chungi. Requires NOC; the process for obtaining NOC has been initiated.

7 Laying of clear water rising mains (6.19 km), replacement of existing distribution pipelines (14.27 km) and laying of new distribution lines (44.3 km.) in the town- all of size varying from 100 mm to 400 mm

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. A part of rising main (Thapli CWR) passes through Jim Corbett National Park. Forest department permission will be required for pipelaying. The process for obtaining NOC for pipelaying has been initiated. These pipes will be laid above ground over RCC pedestals to avoid root cutting of forest trees.

B. ERA Assessment

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

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

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

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

C. Involuntary Resettlement Category

Category A Category B Category C Category FI

‐ 22 ‐ 

      

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 May 2011.

RSES Comments: The sub project category is “ B “ and SRP is required

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

Reviewed by: R & R Expert, IPMC

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

Endorsed by: SCDO, IPMU Director, RSES Date: Endorsed by: SCDO, IPMU

Approved by: Dy Program Director

Highly Complex and Sensitive Project

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

‐ 23 ‐ 

      

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. 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

‐ 24 ‐ 

      

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: Sub-project will equally benefit all the population groups and consequently not differentially or adversely affect any group.

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

F. Approval Proposed by: SDE, DSC - II

Reviewed by: CDE, IPMC

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

Endorsed by: SCDO, IPMU Director, RSES Date: Endorsed by: SCDO, IPMU

Approved by: Dy Program Director

Highly Complex and Sensitive Project

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

‐ 25 ‐ 

      

17. OTHER ISSUES, if any

Nil

‐ 26 ‐ 

      

Attachment-1

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

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 Ramnagar 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's surveys conducted to identify households below the poverty line for the express purpose of benefiting under poverty alleviation programs. The status of Human Development Index in Uttaranchal has been examined in the light of National Human Development Report-2001. Results for the NSSO are available, wherein two estimates have been given. One is the poverty line head count ration depending on the official poverty line and the other is as suggested by the Expert Group set up by the Planning Commission on estimates of poverty. While there is still some lack of certainty on the head count ration, the recommendations of Expert Group are used, as calculated by NSSO's special study. According to the state government of Uttaranchal about 4,16,018 persons were identified as living below the poverty line in the year 2002. Based on the total population being 84,79,562 as per Census-2001 and the percentage of people living below the poverty line notified by the Planning commission, the total number of persons living below the poverty line can be estimated around 2.93 million which in distinctly higher than the figures estimated by the state government of Uttaranchal and compare to neighbouring state of Himachal Pradesh. In the absence of data not being made available by NSSO on per-capita expenditure pertaining to special category state, the state government should use existing machinery to identify the exact number of persons or families living below the poverty line fixed by the Planning commission. Those not willing to believe the extent of poverty mainly in the 11 hill districts of Uttaranchal, must know that today people are surviving in this hill state because of an estimated Rs. 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.

‐ 27 ‐ 

      

Water and sanitation are key instruments in reducing poverty, improving livelihoods, and promoting economic growth. The project will help finance investments for pro-poor and community-based water, sanitation, and solid waste management initiatives through measures that sustain service delivery and strengthen the capacity of the government, utilities, and communities. 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.

‐ 28 ‐ 

      

Attachment-2

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

A. Screening Questions for Impact Categorization

Check the appropriate box (e.g. by double-clicking the box and selecting ‘checked’ in default vale) Screening Questions Yes/No Remarks

A. Project Siting Is the project area

• Densely populated? Yes No

The project is proposed within the town limit of Ramnagar, which is a congested town having population density 28,507 Persons / Sq. Km.

• Heavy with development activities? Yes No

There are no major development activities in the town

• Adjacent to or within any environmentally sensitive areas?

Yes No

The site is located 2 to 5 km from the boundary of the park.

• Cultural heritage site Yes No

No

• Protected area Yes No

Town is located adjacent to Jim Corbett National Park. Components are situated in 2-5 km from the boundary of park, however are situated within the inhibited area of the town

• Wetland Yes No

No

• Mangrove Yes No

No

• Estuarine Yes No

No

• Buffer zone of protected area Yes No

Outside the buffer zone

• Special area for protecting biodiversity Yes No

No

• Bay Yes No

No

Potential Environmental Impacts Will the Project cause…

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

Yes No

There is no pollution risk for existing resources. The Ram Ganga River and Banga Jhala stream flows from the hilly forested areas, where there are no pollution sources.

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

Yes No

There are no historical / cultural monuments in the project area.

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

Yes No

The source of water supply is surface sources (rivers).

• Social conflicts arising from displacement of communities?

Yes No

The subproject does not involve land acquisition or displacement.

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

Yes No

River carries considerable flow. Necessary permissions is being obtained from irrigation department for abstracting raw water; hence, no conflicts.

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

Yes No

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

• Delivery of unsafe water to distribution Yes Water will be treated in WTP before distribution.

‐ 29 ‐ 

      

Screening Questions Yes/No Remarks system? No

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

Yes No

Source are located away from human habitations, and as such infiltration wells are well protected

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

Yes No

Only surface water sources have been proposed in the subproject.

• Excessive algal growth in storage reservoir?

Yes No

Regular cleaning of storage reservoir shall be ensured to avoid algal growth in the reservoir.

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

Yes No

Sewerage system will be improved and augmented to adequate capacity including treatment under the UUSDIP

• Inadequate disposal of sludge from water treatment plants?

Yes No

Only nominal quantity of sludge is anticipated from WTP. There will be provision of proper sludge disposal from water treatment plant.

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

Yes No

The proposed Pump Houses & WTP will be constructed in the existing Water Works Campus. There will be adequate buffer.

• Impairments associated with transmission lines and access roads?

Yes No

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

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

Yes No

Liquid chlorine has been proposed to be used for disinfection of water. Proper facility for storing and handling of chlorine shall be maintained all around to avoid such hazards.

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

Yes No

Only Trained operator will operate the chlorination system. Proper precautionary measures will be taken during handling of chlorine

• Dislocation or involuntary resettlement of people

Yes No

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

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

Yes No

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

• Noise and dust from construction activities?

Yes No

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

• Continuing soil erosion / silt runoff from construction operations?

Yes No

Construction work during monsoon shall be carried out with due care so that silt run off due to construction operation is prevented. No construction will be allowed during rains. Immediate back filling followed by compaction shall be ensured at the site.

• Increased road traffic due to interference of construction activities?

Yes No

Proper traffic management and planning will be ensured during construction.

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

Yes No

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

‐ 30 ‐ 

      

Screening Questions Yes/No Remarks • Delivery of water to distribution system,

which is corrosive due to inadequate attention to feeding of corrective chemicals?

Yes No

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

• Accidental leakage of chlorine gas? Yes No

Only liquid chlorine will be used.

• Excessive abstraction of water affecting downstream water users?

Yes No

Abstraction of water will be as per agreement with Regulatory Authority, i.e., Uttarakhand Irrigation Department. Nevertheless, the extraction is only a fraction of total water availability in lean season too.

• Competing uses of water? Yes No

Irrigation Department. and Pey Jal Nigam both withdraws water from river Kosi. The extraction will be within the allocation; no conflicts envisaged

• Increased sewage flow due to increased water supply

Yes No

Upgradation of sewerage system and sewage treatment facilities has been taken up under ADB program.

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

Yes No

Sewerage system will be improved and augmented to adequate capacity including treatment under the UUSDIP

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

Yes No

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

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

Yes No

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

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

Yes No

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

‐ 31 ‐ 

      

‐ 32 ‐ 

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.

      

‐ 33 ‐ 

Attachment-3

INVOLUNTARY RESETTLEMENT IMPACT CATEGORIZATION CHECKLIST Probable Involuntary Resettlement Effects

Yes No Not Known Remarks

Involuntary Acquisition of Land

1. Will there be land acquisition?

- - 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.

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

- - - Not Applicable

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

- - The existing RoW will be utilized for the laying of clear water mains and distribution lines.

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

- - At few congested places in Ramnagar, residents have extended household activities (encroached) on roads and have built small structures like sitting platforms/steps. Laying of distribution lines may envisage impacts on these.

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?

- - There are no fixed assets attached to extended residential structures such as sitting platforms/steps.

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

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

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

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

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

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

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

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

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

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

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

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

      

‐ 34 ‐ 

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

- - There are no IPs (as defined by the ADB policy and the Government of India) within sub-project locations/activity area. The activities are mainly confined to urban and surrounding peri urban areas which has very small percentage of scheduled Tribe (ST) population. As per Census 2001, the STs in 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.

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?

- - -

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)

- - -

      

‐ 35 ‐ 

(Please provide elaborations on the Remarks column)

YES NO NOT KNOWN Remarks

KEY CONCERNS

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?

- - -

      

‐ 36 ‐ 

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 Ramnagar 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. 410 million. Considering the contingency and allowances of additional 12%, the total project financial cost was worked out to Rs 513 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.

      

‐ 37 ‐ 

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

(Rs. million) a/ Costs Capital costs Water Supply 355 O&M costs Water Supply 107 Total costs 462 Benefits Resource Cost savings for Non-incremental water 36 Avoided costs of -health care & earning lost due to illness 239 - reduced time in water collection 413 Total benefits 688 Economic Return Measures Net present value (Rs. Million) 226 EIRR (%) 17.70%

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) – Ramnagar Tranche-2

Details EIRR Main Evaluation (Base Case) a/ 17.70% Capital Cost Overrun b/ 15.40% Switching Value c/ 64.00% O&M Cost Overrun d/ 17.12% Switching Valuec/ 207.00% Decrease in Project Benefits e/ 14.35% Switching Valuec/ 33.00% One Year Delay in Implementation 17.66% All Four Tests Combined 11.82%

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

      

‐ 38 ‐ 

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

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

early completion may be included; • Adequate focus for LA related project components Conclusion: The main evaluation has indicated that the proposed water supply sub projects under Tranche-2 for Ramnagar 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. 410 million to be implanted during the three year constriction period. Project Capital Cost - Rs Million – (Tranche 2)

Details Total Base Cost 410 Landed Cost 513

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.

      

‐ 39 ‐ 

Weighted Average Cost of Capital (%) - Uttaranchal

Item

ADB Loan Counterpart Equity

WACC Govt. of India Onlending b

Govt. of India Grant a

Govt. of India Grant a

Govt. of Uttaranchal d

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

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

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

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

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

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

Financial Viability Sensitivity Analysis Results – WS Subproject, Ramnagar (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, Ramnagar 5.8% 5.3% 5.5% 4.9% 5.0% Note: Base Case refers to the Scenario with the assumption of implementing FIAP user charge proposals, without sensitivity test. 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 Ramnagar 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.

      

‐ 40 ‐ 

Appendix 1: Economic Cost-Benefit Analysis of Water Supply Component - Ramnagar Town

 

Appendix 2: Financial Feasibility Analysis – Water Supply Component - Ramnagar 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 2011-12 128.19 - 0.00 0.00 0.00 -128.19 2012-13 256.38 - 0.03 0.00 0.03 -256.35 2013-14 128.19 - 13.34 0.00 13.34 -114.85 2014-15 - 20.26 29.71 0.38 30.09 9.83 2015-16 - 20.26 30.27 0.08 30.36 10.10 2016-17 - 20.26 30.58 0.08 30.66 10.40 2017-18 - 20.26 35.52 0.10 35.61 15.35 2018-19 - 20.26 35.87 0.10 35.97 15.71 2019-20 - 20.26 36.23 0.10 36.33 16.07 2020-21 - 20.26 42.08 0.12 42.20 21.94 2021-22 - 20.26 42.50 0.12 42.62 22.36 2022-23 - 20.26 42.93 0.12 43.04 22.79 2023-24 - 20.26 49.86 0.14 49.99 29.74 2024-25 - 20.26 50.36 0.14 50.49 30.24 2025-26 - 20.26 50.86 0.14 51.00 30.74 2026-27 - 20.26 59.07 0.16 59.24 38.98 2027-28 - 20.26 59.67 0.16 59.83 39.57 2028-29 - 20.26 60.26 0.17 60.43 40.17 2029-30 - 20.26 69.99 0.19 70.19 49.93 2030-31 - 20.26 70.69 0.19 70.89 50.63 2031-32 - 20.26 71.40 0.20 71.60 51.34 2032-33 - 20.26 82.93 0.23 83.16 62.90 2033-34 - 20.26 83.76 0.23 83.99 63.73 2034-35 - 20.26 84.60 0.23 84.83 64.57 2035-36 - 20.26 98.26 0.27 98.53 78.27 2036-37 - 20.26 99.24 0.27 99.52 79.26 2037-38 - 20.26 100.24 0.27 100.51 80.25 2038-39 - 20.26 116.43 0.32 116.74 96.49 2039-40 - 20.26 117.59 0.32 117.91 97.65 2040-41 - 20.26 118.77 0.33 119.09 98.83 2041-42 - 20.26 137.95 0.38 138.32 118.07 2042-43 - 20.26 139.33 0.38 139.71 119.45 2043-44 - 20.26 140.72 0.39 141.10 120.85

Total 512.76 607.74 2,201.02 6.30 2,207.31 1,086.82 NPV at 3.51% 462.48 324.16 1,023.95 3.03 1,026.98 240.34

FIRR (%) 5.8%

 

 

Attachment-6

COMPLIANCE WITH THE SUBPROJECT ELIGIBILITY CRITERIA

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

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

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

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

Yes, wherever applicable.

Large scale ground abstraction for augmenting water supply in Ramnagar 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.

Subproject has proposed to use only 2 nos. existing tube wells, which are already in operation, for 0.94 MLD discharge. Balance raw water requirement will be met from Kosi and Banga Jhala rivers.

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 they will be laid on the same side of road.

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

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

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

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

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

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

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

2b. Subprojects must demonstrate financial and institutional sustainability.

Financial and institutional sustainability examined and found adequate.

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

Financial analysis is undertaken and found to be sound.

2c.

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

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

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

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

b) project rationale identification,

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

 

 

 

Eligibility Criteria Compliance S. No. c) project alternative identification and least cost analysis, d) cost and benefit analysis indicating the economic internal rate of

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

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

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

EOCC, which was taken as 12% e) Project sustainability, sensitivity and risk analysis undertaken f) Analysis considered findings based on surveys conducted

3b. The EIRR of the water supply subprojects should be at least 12%. The EIRR is 17.70% Item 4. Social Criteria 4a. All subprojects should have resettlement plan(s) in accordance with

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

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

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

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

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

The subproject complies with ADB guidelines.

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

necessary. Approval from State Government is already obtained.

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

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

 

Attachment-7

SITE CLEARANCES TIMEFRAME

Name of the Subproject: Rehabilitation and Augmentation of Water Supply System in Ramnagar

To be obtained from

Notification to be issued to competent

authority (Date)

Surveys and hearing of objection / observation

(Date)

Deposit of payment, if any

(Date) Obtaining final clearances

(Date) Clearances

Target Actual Target Actual Target Actual Target Actual Environmental NOC/ clearance from Forest Department for laying of pipeline through reserve Forest (from Banga Jhala intake to town). Permission from Irrigation Department for construction of Infiltration Well and Intake. No Objection Certification (NOC) and Consent for Establishment (CFE) for construction of WTP from Uttarakhand Environmental Protection & Pollution Control Board (UEPPCB). Land acquisition For the proposed sub-project no permanent land acquisition or resettlement is envisaged.

None NA NA April 2011 April 2011

May-June 2011

May-June 2011

NA NA Temporary Land Clearance

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

National Highway Authority of India, Delhi National Highway

Permission required for laying of transmission mains and distribution mains along NH-121 (Ranikhet road) from PWD to Bhagat Singh Chowk (approx. 2 Km): 300-450 mm dia pipe

1-May-11 NA NA NA

State PWD Roads State Public Works Department Permission for road cutting has already been obtained through GO No. 50/111/(3)/2011-905 (ADB/2011, dated 9 Feb., 2011.

 

 

 

To be obtained from

Notification to be issued to competent

authority (Date)

Surveys and hearing of

Clearances

objection / observation

(Date)

Deposit of payment, if any

(Date) Obtaining final clearances

(Date)

Target Actual Target Actual Target Actual Target Actual City Roads Nagar Palika Parishad, Ramnagar Comprehensive proposal for all pipes to be laid on drawing and location is to be submitted to get a general NOC / Permission for road cutting for laying of transmission mains and distribution mains.

1-May-11

NA NA

NA