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FOR OFFICIAL USE ONLY

Report No. 1882b-IN

STAFF APPRAISAL REPORT

INDIA

PUNJAB WATER SUPPLY AND SEWERAGE PROJECT

August 24, 1978

Regional Projects DepartmentSouth Asia Projects

This document has a restricted distribution and may be used by recipients only hitheir official duties. Its contents may not otherwise be disclosed without World hamn aumuouizatwli.

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INDIA

APPRAISAL OF THE


CURRENCY EQUIVALENTS

Currency Unit = Rupee (Rs)US$1.00 Rs 8.6Rs 1.00 US$0.116Rs 1 lakh (10i= US$11,628Rs 1 crore (10 ) = US$1.16 million

MEASURES AND EQUIVALENTS

1 millimeter (mm) = 0.04 inches (in)1 meter (m) = 3.28 feet (ft)1 kilometer (km) 2 = 0.62 miles (mi)1 square meter (m2) = 10.8 square feet (sq ft)1 hectare (ha) 2 = 10,000 square meters or 2.47 acres (ac)1 square kilometer (km ) = 0.386 square miles (sq mi)1 liter (1) 0.26 US gallons (gal)1 liter per capitaper day (1/cd)3 = 0.26 US gallons per capita per day (gcd)

1 cubic meter (m ) = 35.3 cubic feet (cu ft)

ABBREVIATIONS AND ACRONYMS

Three Towns Jullundur, Amritsar, LudhianaFive Towns = Moga, Patiala, Rajpura, Bhatinda

and PathankotEight Towns = The above combinedGOI = Government of IndiaGOP = State Government of PunjabIBRD/WHO CP = World Bank/World Health Organization

Cooperative ProgramLIC Life Insurance Corporation of IndiaMC Municipal Corporation/CommitteePHDGW Public Health Department, Government WorksPHDRW = Public Health Department, Rural WingPWD = Public Works DepartmentWSSB = Punjab Water Supply and Sewerage Board

FISCAL YEAR

April 1 - March 31

The project was appraised in October/November 1977 by Lars Rasmusson,Sanitary Engineer, and L. V. Smith, Financial Analyst.

FOR OFFICIAL USE ONLY

INDIA



Table of Contents

Page No.

CHAPTER I ............................................. 1

THE PUNJAB WATER SUPPLY AND SEWERAGE SECTOR ........... 1

Previous Bank Group Lending ..... ................. 1Background Data .................................. 1Service Levels ................................... 2Sector Development and Objectives .... ............ 2Sector Investment Program ........................ 3Sector Organization .............................. 4Analysis of the Sector Organization .... .......... 4The Project Area in Relation to the

Sector in Punjab State ......................... 6Present Water Supply and Sewerage Systems

in the Project Area ............................ 6

CHAPTER II ............................................ 8

PROJECT IMPLEMENTATION AND OPERATION AND MAINTENANCEAGENCIES ......................................... 8

The Water Supply and Sewerage Board (WSSB) ....... 8The Water Supply and Sewerage Departments ........ 9Consultant Assistance ............................ 9

CHAPTER III ............................................ 1

POPULATION FORECASTS AND DEMAND PROJECTIONS ........... 11

Population Forecasts ............................. 11Present and Forecast Water Demand

and Sewage Flow ................................ 11

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Page No.

CHAPTER IV ........................................... 13

THE PROJECT.13THEPROECT........................................... 1

Project Objectives and Project Composition ....... 13Project Priorities and Selection Criteria .... .... 13Project Design ................................... 14Project Description .............................. 14Cost Estimates and Amount of IDA Credit .... ...... 14Financing Plan ................................... 16Project Implementation ........................... 17Procurement ...................................... 18Disbursements .................................... 19Training .......... ............................... 19Project Impact ................................... 19

CHAPTER V ............................................. 22

FINANCIAL ANALYSIS .................................... 22

Past Performance and Present Position onUrban Water Supply and Sewerage .... ............ 22

Water and Sewerage Tariffs ....................... 22Future Finances .................................. 23Finances of WSSB - Board Operations .... .......... 25Audit ............................................ 25

CHAPTER VI ............................................ 26

ECONOMIC ANALYSIS ..................................... 26

Introduction ..................................... 26Incremental Financial Rate of Return .... ......... 26Marginal Cost Analysis ......................... 27

CHAPTER VII ........................................... 28

PROJECT JUSTIFICATION AGREEMENTS REACHED ANDRECOMMENDATIONS .................................. 28

Project Justification ................................. 28Project Risks .................... . ..................... 28Agreements Reached and Recommendations .... ............ 29

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ANNEXES

Annex I Table 1 (T ): Urban Water Supply and Sewerage sectorInvestments, Past and Projected

Table 2-5 (T2-5): Population and Water Demand Projections

Table 6-9 (T6-9): Population and Sewage Flow Projections

Table 10 (T10): Implementation Capacity and Manpower Requirements

Table 11 (Tll): Schedule for Installation of Water Meters andWater and Sewer Connections

Table 12-14 (T12-14): Cost Estimates

Table 15 (T15): Material and Equipment Requirements

Table 16 (T16): Estimated Schedule of Disbursement

Table 17 (T17): Service Levels

Table 18-23 (T18-23): Financial Statements

Table 24 (T24): Tariffs

Annex 2 Summary of Assumptions for Financial Projections

Annex 3 Additional Information Available in Project File

Chart 18363 WSSB Organization18364 Construction Implementation Schedule

MAPSIBRD 13355 The state of Punjab with the Project Towns indicatedIBRD 13356 Existing and proposed water distribution and

sewerage service areas for Jullundur, Amritsar,Ludhiana and Moga

IBRD 13357 Existing and proposed water distribution andsewerage service areas for Patiala, Rajpura, Bhatinda,and Pathankot.

INDIA



CHAPTER I

THE PUNJAB WATER SUPPLY AND SEWERAGE SECTOR

Previous Bank Group Lending

1.01 IDA has extended two credits to the Government of India (GOI) inthe water supply and sewerage sector i.e.: a credit of US$55 million madein 1973 for the Bombay Water Supply and Sewerage Project; and a credit ofUS$40 million made in 1975 for the Uttar Pradesh Water Supply and SewerageProject.

Background Data

1.02 The State of Punjab is located in the northwestern part of India2bordering Pakistan (Map IBRD 13355). It covers an area of about 50,400 kmor 1.6% of the area of India and contains 13.6 million people (1971), of whichapproximately 76% live in rural areas (12,188 villages) and 24% in urbanareas (108 townshiys). The population density (urban and rural) averages

270 persons per km ; the national average is about 200.

1.03 Punjab is located between 180 and 320 meters above sea level.The temperature varies between +45 C (May and June) and +6 C (January andFebruary). The annual rainfall ranges from 250 to more than 1,000 milli-meters, which mainly falls during the monsoon season, July to September.

1.04 There are three major perennial rivers in the state, the Beas,Sutlej and Ghaggar, and a well developed network of irrigation canals. Thegroundwater table is high and groundwater, which is abundant, is also themain source for domestic water supply. The incidence of water relateddiseases such as dysentery (4.2 per thousand) and infectious hepatitis (0.03per thousand) is lower in Punjab than the corresponding average figures forIndia, 7.0 and 0.2 respectively. In four districts of the state, however,the incidence of dental and skeletal fluorosis is severe because of the useof ground water with a high fluoride content.

1.05 The economy of the state is based primarily on agriculture, fromwhich about 52% of its total income is derived. Of the total area, 82% isunder cultivation, the highest proportion of any state in India; the nationalaverage is 43%. Industrial development is advanced with about 40,000

registered small industrial units, which, in proportion to population, is alsothe highest in India. The per capita state domestic product is considerablyhigher in Punjab than in other states of India.

Service Levels

1.06 Punjab has in recent years been relatively successful in the de-velopment of piped water supply for urban areas. Urban population servedincreased from 21% (13% connections, 8% standposts) in 1971 to 44% (32%connections and 12% standposts) in 1976, covering 59 out of 108 townships,although only partially. People without any access to piped water supply relymainly on shallow wells, which at least in smaller population centres, arereasonably well protected. Industries are either connected to the public

systems or have their own water supply.

1.07 The water supply is, however, in most cases intermittent, the pres-sure is low, and the water is unevenly distributed. The operation of thesystems is unsatisfactory and there is little control on water produced andactually used.

1.08 The development of rural water supply schemes has concentrated onwater scarcity areas or areas with groundwater containing excessive fluoride.There are about 4.6 million people living in about 3,700 such villages. Outof these about 1,700 have been provided with standpost water supplies coveringa population of around 1.6 million.

1.09 Sewerage systems have been extended to 46 urban areas with a cover-age of 7% of the total urban population in 1976 compared to 3% in 1971. Pop-ulation with access to sewerage systems is, however, larger, and even inareas where sewers have been in existence for some years the connection rateis only about 35%, mainly because of high connection costs.

1.10 The bulk of the urban population uses the conservancy (night soilcontainer) system or defecates in open drains or in the fields. Sanitaryconditions particularly in industrialized and congested urban areas are severeand are steadily deteriorating with sewage flowing in open drains or stagnat-ing in ponds. The maintenance of the sewerage systems is unsatisfactory;silting of the sewers, because of low connection rates and consequently lowflows, constitutes a major problem. In rural areas, sanitation is of a verylow standard.

Sector Development and Objectives

1.11 The budget allocations for construction of water supply and sewer-age works have always been less than the amount needed. The investments insewerage works, which have about equaled those for water supply (para 1.15),have not been entirely utilized because of uneven extension of trunk mainsand laterals and low connection rates. Charges for water supply and sewerageservices have not been sufficient to cover actual costs. The rapid indus-trialization and urbanization of the major towns, accelerated by the inflowof refugees from Pakistan, have, inter alia, highlighted the need forsignificant improvements of water supply and sewerage services.

1.12 Increasing sector investments are anticipated and the sectororganizations would be developed accordingly. The State Government of Punjab(GOP) has consequently formulated the following objectives: (i) to developan institutional framework responsive to the needs of the sector; (ii) tomake the sector financially self-sufficient to the extent possible by theintroduction of -propriate tariff structures and levels; (iii) to improveoperation and maintenance and to uprate existing water supply and seweragesystems for their optimal utilization; and (iv) to extend the services wherethey are most urgently required.

1.13 GOP has established as main criteria for immediate sector invest-ments (i) for urban areas, to concentrate on the extension of sewerage systemsand to extend water supply to congested areas or where the groundwater containsexcessive fluoride and (ii) for rural areas, to extend water supply to villagesclassified as "scarcity and hardship areas".

Sector Investment Program

1.14 Past and projected investments for urban areas through FY1981-82are shown in Annex 1, table Tl. Total sector investments in current valueshave increased almost 7 times from the period 1970/74 to 1975/79 (from Rs 4.6crores 1/ to Rs 31.3 crores). Investments for the years 1979/1982 (theproject period) are forecast to be about Rs 90 crores.

1.15 The budget for capital works for FY1977-78 was Rs 9.6 crores andannual capital investments in the sector are projected to increase to Rs 27crores by FY1982. Past investments have been about equally divided betweenwater supply and sewerage but in the coming years the main emphasis would beon sewerage.

1.16 The sector investments have been financed by about 45% equity con-tributions from Municipal Corporations/Committees (MCs) and 55% loans andgrants from the Central and State Governments. Operation and maintenanceexpenditures have been financed from revenues and supplemented by municipaltaxation as necessary.

1.17 The projected sector investments through FY1981-82 are assumed tobe financed by loans from the Central and State Governments (including theproposed IDA credit) and from local financial institutions and by continuedMCs contributions. Tariffs will be restructured and increased so that thecash generation from the water supply and sewerage services is adequateto cover part of future capital expenditures after meeting operating costs.

1.18 Past annual investments in rural water supplies increased fromabout Rs 2.2 crores (for the period 1970/74) to about Rs 4 crores (for 1975/76).The FY1977-78 budget provided about Rs 8 crores and future annual investmentsare forecast to increase to about Rs 16 crores by FY1979-80.

1/ 1 crore = 10 million

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Sector Organization

1.19 The Public Health Branch of the Punjab Public Works Department(PWD) was, up to 1976, primarily responsible for the planning and executionof urban and rural water supply and sewerage systems. The PWD operated andmaintained rural water works on behalf of the Panchayats (village councils),while the urban systems generally were operated by the MCs.

1.20 With the establishment of the Punjab Water Supply and SewerageBoard (WSSB) in November 1976, the responsibilities of the Public HealthBranch were reallocated.

1.21 WSSB is responsible for planning, design and execution of watersupply and sewerage works in urban areas with minor exceptions (para 1.24).It is administratively controlled by the Department of Local Government andits functions and duties are defined in the Punjab Water Supply and SewerageAct 1976.

1.22 The Ministry of Public Works is organized into three departmentsfor Public Health, Bridges and Roads and Irrigation. The Secretary for PublicHealth has administrative control over the Public Health Department, RuralWater Supply Wing, (PHDRW); the Public Health Department, Government Works(PHDGW); and the Punjab State Board for the Prevention and Control of WaterPollution.

1.23 PHDRW is in charge of all activities related to rural watersupply such as planning, design, construction and system operation. Fundsfor capital investments are allocated by the Ministry of Health and fundsfor operation and maintenance by the Panchayat Department (in charge of ruralareas).

1.24 PHDGW is, on behalf of the Local Government Department, interalia, responsible for the development of industrial and urban estates andhousing colonies, which includes implementation and frequently also oper-ation of related water supply and sewerage systems.

1.25 Agencies also involved in the water supply and sewerage sector are:State Irrigation Department responsible for allocation of surface water;Water Resources Directorate and the regional office of the Central GroundWater Board which regulates and provides advisory services on groundwaterdevelopment; and the Board for the Prevention and Control of Water Pollution(established in 1975) which regulates waste water disposal.

Analysis of the Sector Organization

1.26 The responsibilities of the water supply and sewerage sector (urbanand rural areas) are broadly divided between WSSB, PHDRW, PHDGW, and MCs.When WSSB was established in 1976, primarily as a project implementationagency, no analysis was made of suitable institutional arrangements foroperation and maintenance of the facilities and existing arrangements werecontinued.

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1.27 Under present arrangements in urban areas the city engineer (nor-mally on deputation to the MC from PWD) is in charge of public works includ-ing the operation and maintenance of the water supply and sewerage systems.Revenue collection and accounts for water supply and sewerage are normallymaintained in common with other municipal activities. Operation and main-tenance of the systems are generally unsatisfactory because of orginizationaland financial constraints and lack of qualified staff. Operation and main-tenance could be expected to improve by the transfer of this responsibilityto WSSB or by the establishment of separate water supply and sewerage depart-ments within respective local administrations with full responsibility forthis function.

1.28 Following a sector study by the World Bank/WHO Cooperative Program(IBRD/WHO CP) at the time of preappraisal, various organizational alternativeswere discussed with GOP such as (i) merging water supply and sewerage forboth urban and rural areas under one entity with full responsibility includ-ing operation; (ii) establishing a separate Board for rural water supply; and(iii) establishment of municipal enterprises for operation and maintenance.GOP decided to create separate water supply and sewerage departments in theMCs for operations and maintenance starting with the eight project towns(para 1.35) whilst WSSB would carry out all construction work for the MCs andwould act as a lending agency for this purpose. WSSB would, however, be giventhe function of assisting the MCs in related institutional and operationalmatters. GOP also decided to retain the present rural water supply institu-tional framework since WSSB is still in its formative stage and could not atpresent take over the added responsibility for rural water supplies. However,GOP proposes to review the position further once WSSB is adequatelystrengthened and is well established.

1.29 PHDGW would still have some responsibilities in urban areas (para1.24) giving rise to some overlap with WSSB but further organizational changesare not practicable at the present stage. WSSB should, however, be given thepower to review works carried out by PHDGW and at negotiations assuranceswere obtained from GOP to this effect.

1.30 The Punjab Water Supply and Sewerage Act 1976 covers project imple-mentation only, while the Punjab Municipal Act 1911, and the Punjab MunicipalCorporation Act 1976 provide for operation and maintenance of the systems bythe MCs. GOP has already amended this Act through a temporary ordinance toenable the transfer of these functions to WSSB in case of default or misman-agement and to empower WSSB to act as a lending agency. The formulation ofthese arrangements through appropriate action would be a condition for crediteffectiveness.

1.31 The municipal water supply and sewerage departments would be estab-lished under the following conditions: (i) appointment of a separate advisorycommittee with the authority to recommend policy relating to water supply andsewerage services; (ii) the department head reporting directly to the muni-cipal chief executive; (iii) the maintenance of a commercial accounting systemseparated from that of other municipal activities with a separate budget andbank account; (iv) retention of funds generated from water supply and sewerage

operations for use in this sector (para 5.06); (v) compliance with agreedtechnical and financial performance indicators (para 4.18); and (vi) appoint-ment of staff members with appropriate qualifications. Municipal resolutionshave been passed in the eight project towns for the establishment of watersupply and sewerage departments. Assurances were obtained during negotiationsthat such departments would be functioning in accordance with the above con-ditions by not later than March 31, 1979.

1.32 The pattern proposed for the eight project towns is expected to beextended to other urban areas.

1.33 WSSB will function as a financing agency and an agreement willbe entered into between WSSB and each MC to stipulate on-lending terms andconditions and also regulate managerial and operational matters.

The Project Area in Relation to the Sector in Punjab State

1.34 GOP has approached IDA and the Life Insurance Corporation of India(LIC) for financial assistance for urban water supply and sewerage works. GOPintends, however, to continue to finance the implementation of rural watersupply systems by regular budget allocations, which will be done entirely ona grant basis.

1.35 GOP has prepared a project package of eight urban areas includingthe three major towns, Jullundur, Amritsar and Ludhiana and five mediumsize towns Moga, Patiala, Rajpura, Bhatinda and Pathankot (referred to as"the three towns" and "the five towns" respectively). The locations of thetowns are shown on Map IBRD 13355. The total population in the eight townsis about 2.0 million representing about 62% of the State's total urban pop-ulation. The justification for the selection of the eight towns is givenin para 4.03.

Present Water Supply and Sewerage Systems in the Project Area

1.36 The existing water supply in six of the towns (including the threemajor towns) is based on groundwater and on surface water in the remainingtwo. The present coverage of the water supply systems is shown on maps IBRD13356 and 13357 and related data are shown in Annex 1, tables T2 to T5.

1.37 The towns are divided into a large number of small zones function-ing independently, and in the case of groundwater supply, are provided withtubewells, overhead tanks and distribution systems. The systems are simple,with water being pumped to the storage tanks for gravity distribution to theconsumers. The only treatment required is chlorination. In the case ofsurface water supply, the water is treated before distribution to the variouszonal reservoirs. There is little control over water production, consumptionand unaccounted for water. The supply is partially metered in the eight towns,but many meters are defective. People without access to piped water supplyuse shallow wells, which, particularly in heavily congested and industrializedareas, are subject to pollution.

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1.38 The existing sewerage systems consist mainly of a few laterals,interceptors and outfalls serving a small part of the population. Untreatedsewage diluted with ground or surface water is used for farming. The presentcoverage of sewerage services is shown on maps IBRD 13356 and 13357. Data onexisting systems and present service levels are shown in Annex 1, tablesT6 to T9.

1.39 The sewers, made of stoneware, concrete or brick laid in situ,are underutilized because of the low connection rate. The waste water fromcooking and washing in non-connected households is generally discharged tothe sewerage system through the storm water drainage system, the two systemsbeing interconnected. Properties not connected to the sewerage systems areserved mainly by the conservancy system (para 1.10), which is becomingincreasingly unacceptable as the labor turns to less offensive employment.

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CHAPTER II

PROJECT IMPLEMENTATION AND OPERATION AND MAINTENANCE AGENCIES

The Water Supply and Sewerage Board (WSSB)

2.01 WSSB, established under the Punjab Water Supply and Sewerage BoardAct 1976, has a Chairman and a Managing Director -- both appointed by GOP --and six ex-officio members, i.e., four Secretaries to Government, the Directorof Local Government and the Chief Engineer, Public Health. In addition, up tofive associate members may be co-opted by the Board from persons having expe-rience of public life; one must be a woman and one a person belonging to a"Scheduled Caste." The Board may also appoint Committees. The terms of officeof members other than the ex-officio members are to be as prescribed by GOP.The Board is required to meet at least once in every two months.

2.02 No special qualifications are prescribed for the office of Chairman.The Managing Director, however, is required by the Act to be a senior engineerof the Department of Public Health.

2.03 The functions of WSSB as prescribed by the 1976 Act are broadly con-cerned with investigating, preparing and executing water supply and sewerageschemes, subject to reimbursement of all costs by the local authority concerned(i.e. MC, panchayat, or similar entity). The Act contained no provision foroperation and maintenance of schemes by the Board (except that it may prescribethe number of operational staff which a local authority must assign to watersupply and sewer maintenance). However, GOP indicated that institutionalarrangements would be made to enable WSSB to take over operation and mainte-nance of the water supply and sewerage systems concerned in case of defaultor mis-management by any MC.

2.04 Questions of general policy are decided by the Board, with executiveresponsibility for all day-to-day activities devolving on the Managing Directorunder regulations made by the Board. The present incumbent is a decisive andcapable administrator and engineer. Under him WSSB is organized into centraldepartments or units for design and planning, finance, and administration andfour decentralized engineering circles. Each circle, headed by a superin-tending engineer, is composed of about four divisions, headed by executiveengineers, handling a varying mixture of project design, construction super-vision and operation and maintenance (though the latter has been minimalto date).

2.05 WSSB's responsibilities under the Act, like those of its predecessorthe Public Health Department, were very much construction-oriented and itsmain strengths have lain in this aspect of engineering. It was less strongin engineering design -- it had no specialized staff for this purpose, andalternatives were not adequately evaluated to ensure least cost solutions;finance and accounting have also been areas of weakness.

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2.06 WSSB will accordingly need to strengthen its staffing and expandits organization to be able to cope, not only with the added responsibilityof assisting the MCs in institutional development and systems operation, butalso with a greatly increased investment program. The organizational develop-ment would particularly concentrate on (i) the establishment of adequatecapacity in project planning and design, procurement, project appraisal andmonitoring, and project financial control and (ii) the preparation and imple-mentation of engineering and financial management information systems. WSSB'sorganization, of which the nucleus has already been established, appears onChart 18363 and its present and projected staff requirements in Annex 1, tableTIO. The precise eventual structure will depend on studies which have alreadycommenced (para. 2.10).

The Water Supply and Sewerage Departments

2.07 The water supply and sewerage departments will be self-containedentities in the municipal administrations handling all activities related tooperation and maintenance, and would broadly be organized into units forphysical operation of works, finance including billing and collection, andadministration. Staff will be transferred within the municipalities and keypersonnel would mainly be seconded from WSSB. The deputation of staff fromWSSB would ensure the provision of experienced personnel and would also enablea desirable rotation of staff to be made between various sector activities.

2.08 The department head would report to the chief executive of themunicipal administration; for recommendations on policy matters, an advisorycommittee to be composed of members of the municipal council would be estab-lished with the sole purpose of handling questions related to water supplyand sewerage services. The municipal council would decide on policy mattersand budget approval. At present the municipal councils in the project townshave been superseded by commissioners but elections are expected to takeplace shortly.

2.09 The water supply and sewerage departments will have to be properlyorganized and staffed to be able to cope with projected augmentation andimprovements in the water supply and sewerage services. Operational andmaintenance procedures will be established as well as reporting, monitoringand financial management information systems. In cases where adequate spe-cialization cannot be achieved in individual municipalities, WSSB will provideappropriate assistance. The departments would give initial priorities torehabilitation of existing systems, metering, meter maintenance and repair,leak detection and financial improvements. A close working relationship hasto be maintained between WSSB and the MCs; GOP agreed at negotiations tocause the MCs to cooperate with WSSB and its consultants (para 2.10) for thedevelopment of the water supply and sewerage departments.

Consultant Assistance

2.10 For the development of its own organization and of the municipalwater supply and sewerage departments WSSB needs consultants for: (i) man-agement, organization and staffing and the development and implementation of

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project monitoring systems and administrative procedures; (ii) the establish-ment of accounting and financial management information systems and theirimplementation; (iii) the development of tariff structures and levels basedon appropriate socio-economic research; and (iv) the preparation and imple-mentation of necessary training programs.

2.11 The organizational development is critical for the implementationof the investment program and consultants have already been appointed forservices mentioned under references (i) to (iii) of para. 2.10. IDA obtainedassurances at negotiations that a training consultant (2.10 (iv)) should beappointed not later than December 1, 1978. The training consultant cannotstart working until recommendations on organization and staffing have beenmade and training components included in other consultant services have beenidentified.

2.12 Other consultant assistance will be required in engineering fordesign of water treatment works (for two towns) and sewage treatment works(for eight towns). A consultant has been appointed for design of water treat-ment works and IDA obtained assurances during negotiations that a consultantfor sewage treatment works would be appointed not later than December 1, 1978.The consultant services including training are assumed to amount to about 500man/months, all for local consultants, at a cost of about US$0.5 millionequivalent. Furthermore, a sanitary engineer and a financial analyst attachedto the IBRD/WHO CP will, on a part-time basis, provide engineering and finan-cial advice and review technical reports for the five towns (para. 4.14). Thepossibility of bilateral technical assistance is also being explored by GOP.

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CHAPTER III

POPULATION FORECASTS AND DEMAND PROJECTIONS

Population Forecasts

3.01 The population increase in Punjab during 1961-71 was 21% (for urbanand rural areas it was 25.3% and 19.7% respectively). GOP has made futurepopulation projections for the project towns individually in the light ofmaster plans for urban development and taking account of factors such asgrowth potential and industrial development. These projections are reason-able and have been ;sed for the design of the sub-projects. 1/

3.02 Present and forecast populations in the eight project towns areshown in Annex 1, tables T2 to T5, and are summarized below:

Average AnnualCensus Estimated Projected Increase1971 1977 1982 %

…---------------000… ----- ______

Jullundur 296 360 418 4.1Amritsar 514 567 606 1.8Ludhiana 401 605 773 9.2Moga 61 74 102 6.7Patiala 151 182 197 3.0Rajpura 40 47 52 3.0Bhatinda 64 76 89 3.9Pathankot 78 121 176 12.5Total 1,605 2,032 2,413 5.0

Present and Forecast Water Demand and Sewage Flow

3.03 Water demand projections are shown in Annex 1, tables T2 to T5,individually for the three towns and consolidated for the five towns. Thepresent water consumption pattern cannot be readily established because ofthe lack of production meters and reliable customer meters. In the threetowns about 56% and in the five towns about 60% of all domestic connectionsare metered and it is believed that of these 30% to 40% are out of order(para. 2.09). The number of standposts is insignificant in Jullundur (about30) but considerable in the other towns (about 600 as a maximum). Thedomestic water consumption has been analysed on a sample basis, which hasindicated rates of 200 to 240 liter per capita per day (1/cd). These rateswould be representative for continuous water supply and for customers withrather extensive plumbing systems. The average per capita consumption isprobably much lower.

1/ The project is defined to consist of sub-projects, one for eachindividual town.

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3.04 The projection of domestic water consumption has taken into account(i) that all or most of the connections will be metered during the projectperiod; (ii) expected improvements in operation and maintenance; (iii) exten-sion of water connections to poorer sections; (iv) introduction of a steppedtariff structure; and (v) the socio-economic pattern in individual towns.Bulk water meters will be installed and a leak detection program will beimplemented. On this basis, metered water consumption has been assumed torange between 90 and 160 1/cd in the eight towns. Standpost consumptionhas been projected at 45 1/cd.

3.05 Accurate production and consumption data are not available for anyof the eight towns. Although the existing water supply systems are similarin design, the quality of operation and maintenance varies and systemlosses are expected to vary from one town to another. However, the projec-tions assume that during the project implementation period, through improvedoperation and maintenance, leak detection, use of better quality meters andadequate meter maintenance and repairs, the unaccounted-for water in allthe towns will be reduced to a reasonable level.

3.06 An inventory of industrial consumption, whether from public orprivate witer supplies, has been carried out. The actual consumption variesfrom 25 m to 60 m per hectare per day depending on the type of manufacturing.Similar rates have been applied in the projections.

3.07 The sewage flow (Annex 1, tables T6 to T9) is based on the assump-tion that 75% of water production will enter the sewerage system eitherdirectly or indirectly through the storm water drainage system. In addition,provision has been made for infiltration.

3.08 The design criteria were reviewed by the appraisal mission andare acceptable with some agreed revisions.

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CHAPTER IV

THE PROJECT

Project Objectives and Project Composition

4.01 The project constitutes about 75% of forecast sector investmentsin urban areas through FY1981-82. Its concepts are compatible with the sectorobjectives as summarized under para 1.12. The project target is to provide inthe eight towns safe and continuous water supply to the entire population andsatisfactory waste removal to the extent it is financially feasible. Imple-mentation is scheduled during the period FY1978-79 through FY1981-82 withconstruction works expected to start by end 1978.

4.02 The project would include the following major components: (a) con-sultant studies as stated under paras 2.10 and 2.12; (b) water supply andsewerage works in the eight towns and (c) specialized equipment for WSSBand provisions for training.

Project Priorities and Selection Criteria

4.03 The justification for a project package covering the eight townsmay be summarized as follows:

(a) The water supply and sewerage situation for unservedpeople in all urban areas has been broadly assessedand extension of the services is most urgently requiredin rapidly expanding, congested and industrialized areasand in areas where the groundwater contains excessivefluoride (Rajpura and Bhatinda);

(b) By concentrating the investments in major populationcenters, optimal population coverage is achieved; and

(c) In smaller population centers private water supplies aregenerally better protected and an urgent need forsewerage systems has not yet arisen.

4.04 The formulation of the water supply and sewerage schemes has beeninfluenced by the following specific project objectives:

(a) to maximize the utilization of existing water productioncapacity by (i) the revision of the zoning systems; (ii)the extension of metering to the extent economically justi-fied; (iii) the introduction of a stepped tariff structureto limit waste; (iv) changing the operational pattern; and(v) the reduction of unaccounted-for water by leak detectionand repair and other measures;

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(b) to maximize the utilization of the existing seweragesystems by the increase of sewer connection rates, theextension of laterals in areas already provided withtrunk sewers, and system rehabilitation by, inter alia,desilting; and

(c) to increase the number of water and sewerage connectionsto the economically weaker sections of the community bythe provision of credits on easy terms to cover connectioncosts and basic WC installations.

Project Design

4.05 After review of the engineering design for the three major towns(para 4.14) IDA recommended network analysis to be undertaken by consultantsto ensure least cost solutions. Various alternatives have been evaluatedusing a discount rate of 10% and the most economical extensions of the watersupply systems have been determined.

4.06 The sewerage systems, interceptors and outfalls in the three townsare basically well conceived and sites for disposal have been located.Treatment works will be extended later in stages, but the project providesfor related preliminary and detailed engineering design and, to the extentfeasible, provisional treatment arrangements.

4.07 WSSB has proposed metering of all connections; provision for thisis included in the project. This might be questionable in cases where water

source development is comparatively inexpensive and where water connectionsare given to the economically weaker sections of the society. Selectivemetering might be more economical in such cases. This matter will be furtherreviewed in the proposed tariff study (para 2.10).

Project Description

4.08 Annex 1, tables T2 to T9, show the major components which are proposedto be included in the eight urban water supply and sewerage schemes and MapsIBRD 13356 and 13357 show the extent of existing and proposed water distribu-tion and sewerage systems. The major components for water supply are tube-wells, service reservoirs, distribution mains, service connections, standposts,and (for two towns) treatment works; and for sewerage, sewer connections withWC installations, laterals, interceptors, pumping stations, outfall mains anddisposal facilities. Annex 1, table Tll, shows the number of connections to beinstalled for water supply (about 90,000) and sewerage (about 140,000).

Cost Estimates and Amount of IDA Credit

4.09 Annex 1, tables T12 to T14, show for the eight towns the cost esti-mates consolidated for water supply and sewerage. A summary project costestimate is shown below:

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US$ Million % ofRs Crores Equivalent Grand Total

Total Local Foreign Total Local Foreign

THREE TOWNS

Water SupplyCivil Works 3.4 3.4 - 4.0 4.0 - 5

Material & Equipment 6.3 4.3 2.0 7.3 5.0 2.3 9

Total 9.7 7.7 2.0 11.3 9.0 2.3 14

SewerageCivil Works 12.6 12.6 - 14.6 14.6 - 19


Total 23.5 23.1 0.4 27.3 26.8 0.5 35

FIVE TOWNS

Water SupplyCivil Works 1.0 1.0 - 1.2 1.2 - 2


Total 3.9 3.0 0.9 4.6 3.5 1.1 6

SewerageCivil Works 1.4 1.4 - 1.6 1.6 - 2


Total 3.9 3.8 0.1 4.5 4.4 0.1 6

Sub-Total 41.0 37.6 3.4 47.7 43.7 4.0 61

CONTINGENCIES

Physical 4.9 4.5 0.4 5.7 5.2 0.5 7

Price 11.2 10.4 0.8 13.0 12.1 0.9 17

Total 16.1 14.9 1.2 18.7 17.3 1.4 24

ENGINEERING 8.6 8.6 - 10.0 10.0 - 13

Specialized Equipment,Consultant Servicesand Training 1.0 0.9 0.1 1.2 1.1 0.1 2

GRAND TOTAL 66.7 62.0 4.7 77.6 72.1 5.5 100

4.10 The costs are based on preliminary (70%) and detailed (30%) engineer-ing design and on mid-1977 prices. Physical contingencies have been assumed

to average 12% and price contingencies 8% and 7% annually for civil works andmaterial and equipment respectively. The engineering costs have been assumed

at 4% for planning and design and 11% for construction supervision. The project

costs include import duties, excise and sales taxes to an estimated amount ofUS$2.5 million equivalent.

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4.11 An IDA credit of USU38.0 million is proposed, which would financeabout 50% of total project costs net of duties and taxes. About US$5.5 mil-lion equivalent or 14% of the credit is estimated to be used to finance for-eign expenditures. The balance of US$32.5 million or 86% will finance localcurrency expenditures on civil works, equipment and material, consultantservices and training.

Financing Plan

4.12 Life Insurance Corporation of India (LIC) has offered to partici-pate in financing this project and on the basis of an LIC loan of Rs 130million (US$ 15.1 million) the financing plan for the project is as follows:

Rs US$ EquivalentThousands Thousands %

Gross Internal Cash Generation 109,180 12,695 16.3Less Debt Service (76,010) (8,838) (11.4)Less Working Capital (32,970) (3,834) ( 4.9)Total Contribution to Invest-ment (Three Towns) 200 23 0.0

Investment in Project:Three Towns 533,830 62,073 80.0Five Towns & Special Items 133,420 15,514 20.0

Total Investment 667,250 77,587 100.0

BALANCE TO BE FINANCED 667,050 77,564 100.0

FINANCED BY

Municipal Contributions:Three Towns 170,900 19,872 25.6Five Towns 39,350 4,576 5.9

Total 210,250 24,448 31.5GOP Loan:Three Towns 258,800 30,093 38.8Five Towns 68,000 7,907 10.2

Total 326,800 38,000 49.0LIC Loan:

Three Towns 104,000 12,093 15.6Five Towns 26,000 3,023 3.9

Total 130,000 15,116 19.5TOTAL Loans:Three Towns 362,800 42,186 54.4Five Towns 94,000 10,930 14.1

Total 456,800 53,116 68.5TOTAL:Three Towns 533,700 62,058 80.0Five Towns 133,350 15,506 20.0

Total 667,050 77,564 100.0

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4.13 The Municipal contributions of Rs 210.3 million would theform of a capital grant. The GOP loan of Rs 326.8 million which _ludesthe equivalent of the IDA credit, will be made to WSSB at 8-1/2% for 25 yearswith a three year grace period. The LIC loan of Rs 130.0 million will belent directly to WSSB at the same terms as the GOP loan. The money wili beonlent from WSSB to the MCs on the same terms and conditions as stated above.The IDA credit will be transferred to GOP by GOI on the latter's standardterms. This financing plan would be satisfactory. GOP gave undertakings atnegotiations (i) guaranteeing the availability of the MCs contrib'itions andany other funds necessary to complete the project, and (ii) confirming thelending terms and conditions for the GOP and the WSSB loans. A draft of asubsidiary loan agreement between WSSB and the MCs was agreed during nego-tiations.

Project Implementation

4.14 The three towns' water supply and sewerage schemes comprising 80%of the total project costs, were sufficiently advanced to be appraised by IDA,but the schemes for the five towns will be appraised by WSSB. Design criteriafor the five towns have been agreed with WSSB and preliminary designs havebeen reviewed by IDA, and the cost estimates (para. 4.09) are based on these.Detailed technical reports for each sub-project will be completed and sub-mitted to IDA for approval as and when ready, which for all such reportswould be not later than December 31, 1978.

4.15 WSSB will be responsible for the preparation and implementation ofthe project. Annex 1, table TIO, shows broadly WSSB's present and projectedimplementation capacity and number of divisions, and the staff additionallyrequired for project execution. The newly established Design and PlanningDepartment has already been given five design divisions (including one forsub-project appraisal and project monitoring) and a chief engineer has beenappointed to head the Department.

4.16 The new positions of superintending and executive engineers can befilled by deputation (from PWD) and by promotion. Recruitment of engineersis not a problem because there is an adequate supply of graduate engineers.

4.17 The management consultant (para 2.10) will study in detail staffingrequirements and recruitment schedules. A final report is expected by February1979, and assurances were obtained at negotiations that WSSB and MCs will (i)submit to IDA for review, staffing proposals not later than January 1, 1979,and (ii) employ qualified staff to carry out the project and to operate thephysical and financial aspects of the systems.

4.18 The project monitoring, reporting and financial management informa-tion systems to be prepared by the accounting and management consultants willbe reviewed by IDA before their implementation. Assurances were obtained atnegotiations that such systems should be functioning for WSSB and MCs by notlater than April 1, 1979. Assurances were also obtained that technical and

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financial performance criteria and indicators on operational matters should

be established by WSSB in consultation with the MCs and IDA by not later

than October 1, 1979.

4.19 WSSB has prepared for the three towns a detailed PERT network for

project implementation including contract processing. This was reviewed

during negotiations and found acceptable. An outline project implementationschedule is shown on chart 18364.

Procurement

4.20 Annex 1, table T15, shows broadly material and equipment (M&E)requirements, cost estimates, assumed number of contracts and average con-tract sizes, and items to be put to International Competitive Bidding (ICB)

and Local Competitive Bidding (LCB). M&E contracts with an estimated valueexceeding US$100,000 would be subject to ICB except for stoneware and concrete

pipes (representing about 11% of total M&E costs i.e. about US$4.0 million

equivalent) for which LCB only is recommended. Such pipes have high trans-port costs and are subject to damage during handling.

4.21 A further 37% of total M&E costs represents the cost of WC's and

other materials for sewer connections. Related works (procurement andinstallation) would be executed through a large number of small contracts tobe awarded locally. Local procurement may include the award of contracts to

suppliers with whom the Directorate General for Supply and Disposal (DGS&D)of GOI has entered into annual rate contracts after bidding.

4.22 For ICB, a domestic preference of 15% or the import duty, whicheveris lower, is proposed to be applied in bid evaluation. At negotiations GOPinformed IDA that a system of preferences in favor of Punjab manufacturers is

no longer applicable.

4.23 The contracts (ICB and LCB) will be suitably grouped to secure theadvantages of economies of scale but for the initial requirements it isenvisaged that WSSB would enter into some smaller contracts via DGS&D proce-dures to expedite the commencement of construction works.

4.24 Because of the dispersed nature of the project and the limited pos-

sibilities of grouping the contracts there would be at least 100 civil works

contracts with an average contract value of about US$250,000 equivalent. Oneor two contracts could go up to US$1.5 million equivalent and the rest wouldbe much smaller in value. The majority of the contracts would comprise laborintensive pipe laying works. LCB would be appropriate for all civil works

contracts and is recommended. The contracting industry is well developed in

the State and works will be executed by force account only in exceptionalcases. Force account is proposed to be accepted for works with a value ofless than US$30,000 equivalent without prior approval by IDA. This will in-

clude all tubewell drilling, of which the civil works component represents a

total cost of about US$300,000 equivalent. The local procedures for biddingare satisfactory.

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4.25 IDA would carry out ex-ante reviews of (i) all documents and awardsfor material and equipment to be subject to ICB and (ii) documents and awardsfor civil works for contract values exceeding US$500,000 equivalent. Thisshould cover about 40% of M&E costs (about US$14 million equivalent) and 50%of civil works costs (about US$15 million equivalent).

Disbursements

4.26 The proposed IDA Credit would be disbursed as follows: (i) forequipment and material contracts to be awarded through ICB, 100% of foreignexpenditures or 100% of ex-factory costs; (ii) for civil works and for equip-ment and material contracts to be awarded through LCB, 45% of local costs;and (iii) 100% of consultant and training costs. The local costs excludeengineering (WSSB'- administrative costs). A quarterly disbursement forecastis shown in Alrl -x 1, table T16.

4.27 IDA agreed with LIC at negotiations that its loan would be disbursedat the rate of 28% of local costs (excluding WSSB's administrative costs) forcivil works and for equipment and material contracts to be awarded throughLCB.

4.28 Disbursement would be made against statements of expenses for pro-gress payments in respect of civil works and material and equipment not ex-ceeding Rs 100,000 (US$11,600 equivalent) and Rs 50,000 (US$5,800 equivalent)respectively. Relevant documents would be retained by WSSB and available forinspection by IDA during the course of project supervision. Retroactivefinancing amounting to about US$100,000 equivalent is recommended for con-sultant services for costs incurred after February 28, 1978.

4.29 For the physical components of the project, disbursements will bemade only against sub-projects which have been approved by IDA and whereWSSB-MCs subsidiary loan agreements have been duly executed.

Training

4.30 The engineering and operational standards are to be improved andaccounting systems on an accrual basis are to be introduced as well as projectmonitoring, reporting and financial management information systems. Assuranceswere obtained at negotiations that the implementation of an agreed trainingprogram based on the recommendations of the training consultant shall commencenot later than July 1, 1979 or such other date as may be agreed, and that,if necessary, consultant assistance will be retained.

Project Impact

4.31 The impact of the project works can most readily be measured inservice levels before and after project implementation, which are shown inAnnex 1, table T17, and summarized below for water supply and seweragerespectively.

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Total costper capita

Percentage Population Served of additionalBefore After population

Connec- Stand- Connec- Stand- served in US$tions posts Total tions posts Total equivalent

Water Supply

Jullundur 60 2 62 83 8 91 37Amritsar 65 22 87 82 12 94 41Ludhiana 50 21 71 74 9 83 30Combined 5 towns 46 25 71 80 8 88 27Combined 8 towns 55 19 74 79 9 88 32

Sewerage

Jullundur 11 63 63Amritsar 8 57 50Ludhiana 22 61 46Combined 5 towns 6 58 22Combined 8 towns 12 60 44

4.32 In the eight towns 100% of the population will have access to pipedor protected water supply after project completion since the 12% not accountedfor in the above summary are covered by private water supplies or by isolatedsystems for areas such as industrial estates and university compounds.

4.33 The additional population served by water supply (connections) andsewerage amount to about 0.8 and 1.2 million respectively, which correspondsto 22% and 32% of total urban population in the State. Furthermore the serv-ices would improve considerably for presently served population in the projecttowns: i.e. 1.1 million (water supply) and 0.3 million (sewerage). The percapita costs for additional population served are reasonable. Without thisproject the service levels combined for the eight towns would by 1982 havedeclined to 46% for water supply (connections) and 10% for sewerage.

4.34 Concentrated poverty areas in the eight project towns are shown onmaps IBRD 13356 and 13357. The poverty areas are all covered by the extendedwater supply systems, but at the present stage it has not been financiallyfeasible to cover these entirely under the extended sewerage systems. Thetotal population, however, benefits directly or indirectly from the extendedsewerage systems through a significantly improved environment and theincreased discharge of sullage waste to the sewerage systems through inter-connections with the storm water drainage systems. For people who are notin a position to connect to the sewerage systems, the project provides to alimited extent for community toilets. Outside the project, improvements arealso being made to the conservancy system as regards collection and disposal.

4.35 In order to enable the urban poor to connect to the water supplyand sewerage systems GOP has agreed to the deletion of the administrative

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fee for connections and the reduction of water meter deposits, and the pro-

ject includes provision of credit on easy terms for water supply and sewerageconnections. For each sub-project it would be a condition for disbursementthat (i) lending terms and conditions for the connection costs and selectioncriteria for credit eligibility should have been approved by IDA and (ii)an acceptable implementation program for sewer connections and WCs instal-lation should be submitted by WSSB. Assurances were obtained at negotiationsthat WSSB should be made responsible for carrying out the above program andto cooperate with MCs as appropriate.

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CHAPTER V

FINANCIAL ANALYSIS

Past Performance and Present Position on Urban Water Supply and Sewerage

5.01 The MCs keep their accounts on a simple cash basis, which does notprovide financial data adequate to judge performance. They do not prepareeither annual reports or annual financial statements and the information whichis provided in Annex 1, tables T18 to T20, on past financial performance inthe three towns has been extracted from the simple accounting records thatare presently maintained. All three towns record a history of losses onoperations particularly on sewerage operations, although Amritsar and Ludhianaare close to breaking even in FY1976-77 and FY1977-78 on their overall opera-tions. Jullundur however will meet only about 35% of its operating costs inthese two years. In every case the debt/equity ratio is satisfactory. Areview of provisional statements for the five towns indicates similar finan-cial patterns. A full review of the finances of the five towns will becarried out when the detailed technical reports are submitted (para 4.14).

Water and Sewerage Tariffs

5.02 Water and sewerage tariffs have varied from town to town but aLpresent are basicallv thee same for Auluxtsar and Ludhiana as follows:

Water flat rate Rs 8.00 per month

Water metered Rs 0.35 per m 3

Sewerage Rs 2.00 per month per seat

representing about 2% of family income for the lower income group, which isreasonable and is not expected to increase substantially in future (para5.04). Full tariff details are shown in Annex 1, table T24, and the majorityof the towns use at least part of these charges. In Jullundur the chargesare about half of these and this largely accounts for the very much poorerfinancial performance in that town when compared with the other two (Annex 1,table T18).

5.03 GOP has caused the MCs, pending the tariff study (para 5.04), tointroduce common water charges in the eight towns based on the existingtariffs for Amritsar and Ludhiana effective July 1, 1978. A sewerage chargeequivalent to the charge for water has been introduced at the same time to allpremises which have both a water and a sewer connection. GOP further proposesto introduce full sewerage charges from April 1, 1979 for premises which arenot connected, but have access to, and benefit from the sewerage system. Thiswill seek to induce people to connect to the sewerage system and thus increase

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the utilization of the system (para 1.09). The burden of the cost of con-necting to the system will be relieved by the provision of credit (para4.35). In addition, the present cost of conservancy estimated to averageabout Rs 5.00 per month will no longer be payable after connection to thesewerage system. GOP agreed at negotiations to cause the MCs to introducesuch charges.

5.04 A tariff study is to be carried out by consultants employed byWSSB to design tariffs which will seek to maximize income, minimize wastageof water and at the same time provide a reasonable level of service to theurban poor at a price that they can afford. The latter will be achieved bythe provision of free supplies of water from standposts and by the use ofa stepped tariff for metered supplies. The advantages of such a tariff arethat (a) it can be common to all consumers, domestic and industrial, largeand small; (b) the urban poor using small quantities are charged a subsidizedrate; and (c) the large consumers and high use industrial customers pay ahigher rate to discourage waste. The average levels of tariffs are notexpected to change as a result of the tariff study.

Future Finances

5.05 The future finances of the three towns are shown in the form ofConsolidated Income and Flow of Funds Statements and Balance Sheets inAnnex 1, tables T19 and T20. The assumptions used for those forecasts areshown in Annex 2. For the other five towns, future financial statements willbe included in the detailed technical reports to be submitted (para 4.14).With the introduction of common water charges and a sewerage charge inFY1978-79, there will be an overall positive rate of return in the three townsduring the construction period to FY1981-82. This will also be true of thethree towns individually, except for Jullundur in the first year FY1978-79.During this period there should be no need for any further tariff increases,provided that prices do not escalate beyond the forecast level of about 7%to 8%. In addition, the tariff study described in para 5.04 is expected torecommend additional sources of revenue such as charges for:

(a) Properties connected to the sewers but using privatewater supplies;

(b) The sale of waste water for irrigation purposes; and

(c) The private extraction of water from the aquifer.

During the construction period up to FY1981-82 it is not anticipated thatthe MCs would be in a position to make a significant contribution to futureinvestment from system revenues. However, with the increase in chargeseffective July 1, 1978, each will be required to cover annual operating ex-penses, working capital increases and debt service or depreciation whicheveris the higher. GOP agreed at negotiations to cause the MCs to comply withsuch a covenant.

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5.06 Increases in tariffs before FY1982-83 are, therefore, not anti-cipated unless the level of inflation exceeds that forecast. However, with

the improvements in service created by the project, a large increase in tariffsshould be possible in FY1982-83 in order to generate sufficient cash to financea proportion of future investment and to ensure that an adequate return on

capital investment is obtained. The actual size of this increase will dependupon the level of inflation during the intervening years, on the ability of theMCs to generate additional sources of revenue as a result of the tariff study(para 5.04) and to a lesser extent, on the level of recoveries of credits tothe poorer sections of the community for connections. To regulate the actual p

tariff levels it is proposed to require that the MCs maintain separate accountsfor the water supply and sewerage services and from FY1982-83 provide a per-centage contribution to future investment from system revenues. A cash gene-ration covenant 'has been preferred over a rate of return covenant because theschedule and values of physical assets have not been maintained by the MCs ona sound basis and only estimated values have been assessed by WSSB staff forthe purposes of the financial projections. The cash generation covenant wouldrequire the MCs to generate sufficient internal cash to finance a proportionof the annual investment taking the average of the investments in the current,the last preceding and the next following year, at the rate of at least 30%FY1982-83, 35% in FY1983-84 and 40% from FY1984-85 onwards. These percentagesare adequate. This approach has been used in other projects and has proved towork satisfactorily. However, for balance sheet purposes, WSSB proposes toinstruct consultants to properly value and record all existing assets (para2.10). This will enable a rate of return calculation to be made as a furthertest of financial viability, and this could also, as an alternative to thecash generation covenant, be used as an earnings covenant on terms acceptableto IDA, should GOP so wish. It was informally agreed that GOP would decideby March 31, 1982 if a rate of return covenant to be agreed with IDA, but ofnot less than 6% on revalued average net fixed assets is preferred to a cashgeneration covenant. GOP agreed at negotiations to cause the MCs to maintainseparate accounts for each town and to comply with such covenants. GOP alsoagreed to ensure that revenues from the water supply and sewerage serviceswould be used exclusively for operation and maintenance and development of thewater supply and sewerage systems. However, transfers could be made for othermunicipal activities taking into account the MCs ability to borrow and pro-vided such funds are not needed for the water supply and sewerage services.

5.07 In order to protect the MCs future financial viability it is proposedthat they should not, without IDA's agreement, incur any further long termdebt in respect of water supply and sewerage services unless net income beforeinterest and depreciation is at least 1.5 times the maximum debt service in anyfuture year. GOP agreed at negotiations to cause the MCs to comply with such acovenant.

5.08 On the above basis, by the end of the construction period in FY1981-82 the three towns would achieve an operating ratio of 45%, a debt/equity ratioof 57/43 and an internal cash generation of 1.0 times debt service. Thesewould improve to 32%, 55/45 and 1.7 times respectively by FY1983-84. Fromprovisional financial statements for the five towns with the water chargesstandardized and a sewerage charge introduced, it is expected that the

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finances of the five towns will remain viable throughout the project con-struction period in the same way as for the three towns (para 5.05). Thiswill be further reviewed at the time of submission of the detailed technicalreports (para 4.14).

Finances of WSSB - Board Operations

5.09 WSSB will carry out the design and supervision of construction inthe eight towns and the rest of the urban water supply sector and an engi-neering charge of 15% of total cost will be made on all construction work toreimburse WSSB for these services. The financial implications of carryingout these services are shown in the form of income statements, flow of fundsstatements and balance sheets in Annex 1, tables T21 to T23, and the assump-tions used for these forecasts are shown at Annex 2. These statements includeonly the supervisory costs of WSSB. All capital costs relating to civil worksand equipment purchases will be accumulated each year for each town with theappropriate supervision cost and the appropriate liability for these costswill be transferred to and accounted for in the financial statements for eachtown at the end of each year.

5.10 The operations of WSSB, in this supervisory context, are viablethroughout the projection period. GOP has undertaken to provide a sum ofRs 80.0 million to WSSB for working capital to enable it to finance the highlevel of expenditure that will be necessary to sustain the project and othersector work, pending receipt of loan monies from GOP and LIC and funds fromthe MCs. The original assets were taken over from the Public Health Engi-neering Department in 1977 and the additional assets forecast for futureyears are mainly specialized equipment which will be operated by WSSB for thebenefit of the whole urban sector, and which cannot be directly allocated toany particular town. GOP has agreed to cause each MC to provide its watersupply and sewerage department with an opening cash balance equivalent to notless than one-twelfth of its annual operational expenditures.

5.11 Consultants are being appointed by WSSB to establish public utilitycommercial accounting systems in two phases. These will be, first, an interimphase which will focus on improved billing and collection and basic accountingrecords, to be implemented speedily by April 1, 1979 and then a full system tobe implemented by April 1, 1980. During negotiations, assurances were obtainedthat a full public utility commercial accounting system should be implementedby April 1, 1980, for WSSB and for the eight towns.

Audit

5.12 WSSB and the MCs are subject to audit by the Examiner, Local FundAccounts. The Examiner would be capable of carrying out an audit of WSSB andthe MCs both before and after the implementation of the commercial accountingsystem to the satisfaction of IDA. Assurances were obtained during negotia-tions that WSSB and the MCs should submit statements of accounts, audited tothe satisfaction of IDA, within six months of the end of the financial year,beginning with FY1978-79.

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CHAPTER VI

ECONOMIC ANALYSIS

Introduction

6.01 The economic benefits of a water supply and sewerage project arenecessarily difficult to quantify, particularly in respect of the seweragecomponent. These benefits reflect the improved well-being of the populationthrough reduction in medical and hospital costs and increased work produc-tivity along with increases in effective nutrition due to reductions inintestinal parasites (particularly in children) and land value increasesas a result of the provision of services. The distribution of these servicesalso becomes more equitable, particularly in relation to the improved benefitsto the urban poor which are either provided free or at subsidized prices. Theproject will also create employment for about 10,000 people a year during theconstruction period.

Incremental Financial Rate of Return

6.02 The incremental financial rates of return based upon projectedactual revenues 1/ and actual project and operating costs in respect of thethree towns (see table below), for water only, are 17.4%, 12.8% and 17.9% com-pared to the opportunity cost of capital in India of about 10% and these aresatisfactory. A sensitivity analysis in which capital costs are 10% higherthan estimated, reduces these returns to 16.7%, 12.3% and 17.1% and if a de-crease of 10% in revenues is also considered the returns are further reducedto 14.6%, 10.7% and 15.2%; a still satisfactory position. If the costs andbenefits 2/ of sewerage are also taken into account, the overall internalfinancial rates of return for the three towns are 15.1%, 19.7% and 16.5%. Thenegative returns from the sewerage component in Jullundur and Ludhiana indicatethat the present allocation of the total water tariff between water and sewer-age does not reflect their marginal cost. This subject will be addressedduring the tariff review. In the meantime the total tariff compares favor-ably with the total marginal cost of water and sewerage so that the jointcharge made to the consumer who is connected to the sewerage system isappropriate. These rates of return are summarized below:

1/ No revenues are assumed in respect of standposts.

2/ "Benefits" being taken only as sewerage revenues, although charges forthis service may not of course, reflect the customers' valuation ofsewerage benefits.

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Jullundur Amritsar Ludhiana

Water only 17.4 12.8 17.9With capital costs 10% higher

than estimated 16.7 12.3 17.1With capital costs 10% higher

and benefits 10% lower 14.6 10.7 15.2Water and sewerage combined 15.1 19.7 16.5

Marginal Cost Analysis

6.03 The marginal cost of water for the three towns at 3O 10X. discount

rate and at A979 prices will vary from Rs 0.33 to 0.41 per m (U,' cents4 to 5 per m ) or an average of US cents 16.5 per 1,000 US gallons. The 3

marginal cost of the sewerage service 3will vary from Rs 0.54 to C.96 per mof water used (US cents 6 to 11 per m ) or an average of US cent<. 33 per 1,000US gallons used. The average tariff during the project construction periodwill be consistent with this estimate in the case of water supply but willbe lower in the case of the sewerage service. However, the tariff will beincreased considerably on completion of the project (para. 5.06). With theintroduction of a stepped tariff, large users could pay much more than themarginal cost and thereby subsidize the urban poor (para. 5.04). The follow-ing table gives the detailed marginal cost figures.

Jullundur Amritsar Ludhiana

NEW CONNECTIONS SERVED

Water 25,000 24,660 41,770Sewerage 19,550 38,330 27,200

NEW POPULATION SER,ED

Water 215,820 159,300 392,38CSewerage 180,360 266,360 287,660

MARGINAL COST(at 10% discount rate) Rs US$ Rs US$ Rs US$

PER CONNECTIONWater 2,041 237 2,190 255 1,998 232Sewerage 6,327 736 3,266 380 5,086 591PER mWater 0.34 0.04 0.41 0.05 0.33 0.04Sewerage 0.81 0.09 0.96 0.11 0.54 0.06Total 1.15 0.13 1.37 0.16 0.87 0.10

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CHAPTER VII

PROJECT JUSTIFICATION AGREEMENTS REACHED AND RECOMMENDATIONS

Project Justification

7.01 The project is justified on the grounds that it:

(i) is an integral part of an acceptable investment program;

(ii) covers an important first stage in institutional devel-opment;

(iii) will improve fiscal discipline and by the restructuringand increase of tariffs will provide a cash generatingcapacity for future capital investments;

(iv) covers areas where improved water supply and sewerageservices are most urgently needed;

(v) provides for optimal utilization of existing facilitiesand the extended works represent least cost solutions;

(vi) is expected to achieve considerable improvements in worksoperation initially for the eight project towns andultimately for the whole sector;

(vii) provides for 100% accessibility to safe water supply inthe project towns;

(viii) includes satisfactory provisions to benefit the poorersections of society;

(ix) has a cost per capita and an incremental financial rateof return that are satisfactory; and

(x) promotes improved health standards and subsequent increasein productivity.

Project Risks

7.02 The project involves significant institutional developments par-ticularly regarding the establishment of separate water supply and seweragedepartments. Close cooperation will be required beween WSSB and the hlCs,and delays might occur in achieving set targets despite actions takenconcerning early employment of consultants.

- 29 -

7.03 The project concentrates on investment in sewerage works despiteprevious experiences of low connection rates. However, the resistance whichis growing to the use of the old conservancy system should result in a higherconnection rate. It includes provisions for encouraging and facilitatingconnection to the sewerage systems, but these methods are untested and theprojected number of connections might not materialize as soon as envisaged.No other unusual risks are anticipated.

Agreements Reached and Recommendations

7.04 During negotiations agreement was reached on the following majorpoints:

(a) with GOI to make the proceeds of the Credit availableto GOP in accordance with GOI's standard arrangementsfor development projects (para 4.13);

(b) with GOP

(i) to cause the establishment and functioning of watersupply and sewerage departments in the eight projecttowns (para 1.31);

(ii) to empower WSSB in case of default or mismanagementby an MC to take over operation and maintenanceof its water supply and sewerage systems (para 2.03);

(iii) to guarantee the availability of the MCs capital grantsand any other funds necessary to complete the projectand to onlend the IDA Credit to WSSB at 8-1/2% for25 years with a three year grace period (para 4.13);

(iv) to cause MCs to introduce reporting and financialmanagement information systems and to establish tech-nical and financial performance criteria and indicatorson operational matters (para 4.18);

(v) to cause MCs to introduce sewerage charges from April 1,1979 equal to the water supply charges for all uncon-nected premises, which have access to and benefit fromthe sewerage systems (para 5.03);

(vi) to cause MCs through FY1981-82 to produce revenues fromthe water supply and sewerage services sufficient tocover annual operating expenses, working capital, anddebt service or depreciation whichever is higher(para 5.05);

(vii) to cause MCs to maintain separate accounts and toincrease the water and sewerage charges in the eightproject towns to generate sufficient internal cash to

- 30 -

finance a proportion of the average annual investmentat the rate of at least 30% in FY1982-83, 35% inFY1983-84 and 40% thereafter (para 5.06);

(viii) to provide WSSB and to cause MCs to provide theirwater supply and sewerage departments with workingcapital (para 5.10); and

(ix) to cause MCs to implement a full public utility com-mercial accounting system and to submit statements of

accounts, audited to the satisfaction of the Association(paras 5.11 and 5.12).

(c) with WSSB

(i) to appoint consultants for the preparation of a train-ing program and its implementation and for preliminaryand detailed engineering design for sewage treatmentworks (paras 2.11, 2.12 and 4.30).

(ii) to submit to IDA the consultants recommendations on staff-ing and recruitment proposals and employ qualified staffto carry out the project (para 4.17);

(iii) to establish project monitoring, reporting and financialmanagement information systems (para 4.18); and

(iv) to implement a full public utility commercial accountingsystem and to submit statements of accounts, audited to thesatisfaction of the Association (paras 5.11 and 5.12).

(d) with LIC to provide WSSB with a loan of Rs. 13 crores(US$15.1 million equivalent) on the same terms andconditions as the GOP-WSSB loan (para 4.13).

7.05 An additional condition for credit effectiveness would be for GOPto take appropriate action to formalize the modifications to the institutionalframework as agreed at negotiations to enable WSSB to onlend funds and takeover operation and maintenance of municipal systems in the event of mismanage-ment or default.

7.06 The following would be conditions for disbursements:

(i) IDA approval of sub-projects for the five towns(para 4.29);

(ii) execution of subsidiary loan agreements betweenWSSB and each MC (para 4.29); and

(iii) IDA approval of (a) credit terms and conditionsfor financing sewer connection costs including WCsand of selection criteria for credit eligibility;

- 31 -

and (b) the implementation program for the instal-lation of sewer connections and WCs (paras 4.35).

7.07 With the indicated assurances the project is suitable for an IDAcredit of US$38 million equivalent.

TNDIA

PUNJAB WATER SUPPLY AND SIERAGY PROJECT

Urban Water Supply and Sewerage Sector Investmnents, Past and Projected

( RsLakhs in current value)Average Per Capita Annual

Fiscal Year 1967-69 1°70-78 1075 l976 1°77 1978 1979 1980 1981 1982 Annual Investment Population (Lakhs) Average Investment (

11th 5-Year 1967 1975 1979 1967 1975 1979

(3 years) Plan - ------------- Sth 5-Yeai Plan------ thru thru thru thru thru thru

-------- Project Period---- 1974 1978 1°82 1970 1976 1980 1974 1978 1982

A. WATER SUPPLY

Jullundur 17 62 17 32 46 50 51 107 128 134 10 29 105 2.95 3.37 3.85 3.4 8.6 27.2

Amritsar 13 46 18 30 59 73 52 102 145 158 7 45 114 5.07 5.52 5.83 1.4 8.2 19.6

Ludhiana 11 75 16 40 55 50 52 198 193 203 11 40 172 3.90 5.30 6.83 2.8 7.5 25.2

5-Towns 7 20 4 15 50 125 106 200 172 147 3 459 156 3.90 4.70 5.46 0.8 10.4 28.6

Remainder 9 27 6 20 41 130 175 200 200 200 5 49 195 15.90 16.16 17.34 0.3 3.0 11.2

Total 57 230 61 137 251 1128 576 807 838 842 36 215 741 31.72 35.05 39.31 1.2 6.2 18.5

B. SEWERAGE

Jullundur 12 61 21 35 28 18 11 273 386 455 S 38 239 2.05 3.37 3.85 3.1 11.3 77.7

Amritsar 17 53 25 30 28 172 118 318 389 555 9 38 19 5.07 5.52 5.83 1.8 12.0 54.7

Ludhiana 12 87 30 46 25 60 203 380 383 368 12 40 334 3.90 5.30 6.83 3.1 7.5 48.9

5-Towns 4 12 6 15 20 80 93 174 173 196 2 30 159 3.90 4.70 5.46 0.5 6.4 29.1

Remainder 7 20 o 25 38 140 375 400 350 350 3 53 369 15.90 16.16 17.35 0.2 3.3 21.3

Total 52 233 91 151 137 532 868 1555 1655 1847 36 228 157S 31.72 35.05 39.31 1.1 6.5 37.6

C. WATER SUPPLY ANDSEWERAGE

Total A+B 108 463 252 288 388 960 1345 2352 2453 2689 71 447 2220 31.72 35.05 35.31 2.2 12.8 56.5

Note: Totals may not agree due to rounding.

INDIA


JULLUNDUR WATER SUPPLY

Population and Demand Projections

Fiscal Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1992

1. POpULATION --------- Project Period---------------

- Nos. 327,000 337,000 348,oo0 360,000 372,000 385,000 398,000 408,o0o 418,000 429,000 440,000 451,000 522,000

-% increase 3.00 3.20 3.40 3.50 3.50 3.50 3.50 2.60 2.60 2.55 2.55 2.50 16

2. POPULATION SERVED (Nos.)By Connections 185,000 196,000 209,000 215,000 228,000 261,000 289,000 319,000 348,000 370,000 375,000 390,000 500,000

- % of total population 57 58 60 60 61 68 73 78 83 86 85 86 96

- Average/connection 12 12 12 12 12 12 11 10 9 9 8 8 8

By Standposts 8,0o0 8,000 8,000 8,000 18,000 29,000 31,000 38,000 33,000 25,000 23,000 20,000 16,000


- Average/standpost 265 265 260 250 250 250 250 250 250 250 250 250 250

By other means 134,000 133,000 131,000 137,000 126,000 95,000 78,000 51,000 37,000 34,000 42,000 41,000 6,000


3. CONNECTIONS/STANDPOSTS (Nos.)Domestic- Metered 560 1,010 3,609 4,060 6,560 12,810 21,400 31,910 38,680 41,150 46,880 48,750 62,500

- Unmetered 14,838 15,327 13,815 13,815 12,440 8,980 4,840 - - - - -

- Total 15,398 16,337 17,424 17,875 19,000 21,790 26,240 31,910 38,680 41,150 46,880 48,750 62,500

Industrial/Commercial- Metered 62 201 401 572 860 1,333 1,838 2,421 2,722 3,039 3,366 3,703 6,ooo

- Unsetered 247 404 600 600 516 344 172 - - - - -

- Total 309 605 1,001 1,172 1,376 1,677 2,010 2,421 2,722 3,039 3,366 3,703 6,ooo

Others- Metered - - - - - - - -

- Urmetered-Total -Standposts 30 30 31 32 72 115 125 150 130 100 90 80 65

4. WATER DEMAND (lcd)Connections 160 160 160 160 160 160 160 160 160 160 160 160 160

Standposts 45 45 45 45 45 45 45 45 45 45 45 45 45

5. WATER DEMAND (m3/day)

Domestic- Connections 29,600 31,360 33,440 34,400 36,480 41,760 46,240 51,040 55,680 59,200 60,000 62,400 80,000

- Ctandposts 360 360 360 360 810 1,305 1,395 1,710 1,485 1,125 1,035 900 720

Industrial/Commercial 1,390 2,840 4,622 6,175 7,882 10,022 12,805 15,810 18,383 21,355 24,428 28,100 55,890

Others - - - - - - - - - - - - -

Unaccounted for 9,330 10,350 11,148 11,365 12,198 13,883 15,055 16,450 17,372 18,820 19,637 20,100 27,390

- % of total 23 23 23 22 21 21 20 19 19 19 19 18 17

TOTAL 40,680 44,910 49,570 52,300 57,370 66,970 75,495 85,010 92,920 100,500 105,100 111,500 164,000

6. WATER PRODUCTION CAPACITY (m3/day)

Boreholes- Nos. 26 27 29 32 42 42 42 46 46 46 47 48 69

- Capacity/borehole 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520

Total yield 65,520 68,040 73,080 80,640 105,840 105,840 105,840 115,920 115,920 115,920 118,640 120,960 1073,880

7. WATER SUPPLY SYSTEMBalancing Reservoirs- Nos. 1 1 1 1 5 7 9 11 11 11 11 11 15

- total capacity (a3

) 905 905 905 905 4,985 7,710 11,800 14,525 14,525 14,525 14,525 14,525 24,575

- '.of water demand 2 2 2 2 9 12 16 17 16 15 14 13 17

City area (acreages) 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287

Area covered (acreages) 2,600 2,640 2,700 2,815 3,125 3,740 4,245 4,800 5,500 6,100 6,600 7,200 9,100

Transmission mains (kin) 0.07 0.07 0.07 0.07 0.28 3.18 6.60 10.20 10.20 10.20 10.20 10.20 11.90

Distribution mains (Ice) 124 128 142 145 154 180 206 234 240 250 258 269 325

INDIA

PUNJAB WATER SUPPLY AND SEWERACE PROJECT

AMRITSAR WATER SUPPLY

Population and Demand Pro jections

Fiscal Year 1975 1976 1977 1978 19 79 1980 1981 1982 1983 1984 1985 1986 1992--------- (Project Period4)- --

I POPULATION_ Nos 545,000 552 000 560,000 567,000 575,000 583,000 591,000 598,000 606.000 614.000 621,000 629,000 688,0002 Increase 1.3 1.3 1.4 1.4 1.4 1 4 1.4 1.4 1.4 1 4 1.4 1 4 9.4

2. POPULATION SERVED (Nos)By Connections 306,000 320,000 332,000 368,000 402,000 438,000 478,000 488,000 498 000 509 000 521,000 534.000 598,000- 2 of Total Population 56 58 59 65 70 75 81 81 82 83 84 85 87- Aer-ge/Connection 8 8 8 7 7 7 7 7 7 7 7 / 7By Standposts 150,000 150,000 150,000 125,000 100,000 88,000 75,000 75,000 75,000 75,000 75,000 . ., 00 75,000- % of Total Populati'n 28 27 27 22 17 15 13 13 12 12 12 12 11- Average/Standpost 250 250 250 250 250 250 250 250 250 250 250 250 250By Other Means 89.000 82,000 78,000 75,000 73,000 57,000 38,000 35,000 33.000 30,000 25,000 20,000 15,000- 7. of Total Population 16 15 14 13 13 10 6 6 6 5 4 3 2

3. CONNECTIONS/STANDPOSTS (Nos)Domestic- Metered 6,028 9,000 12,537 29,094 41,002 53,194 65,959 69,714 71,143 72,714 74,429 76,286 85,429- Unmetered 32,252 31,010 28,952 23,477 16,427 9,377 2,327 - - - - - -- Total 38,280 40,010 41,489 52,571 57,429 62,571 68,286 69,714 71,143 72,714 74,429 76,286 85.429Industrial /Commercial_ Metered 3,500 4,000 5,500 7,800 8,000 8,200 8,400 8,600 9,000 9,500 10,000 10,500 12,000- Unmetered - - - - - - - - - - - - -_ Total 3,500 4,000 5,500 7,800 8,000 8,200 8,400 8,600 9,000 9,500 10,000 10,500 12,000Others- Metered 250 400 600 780 960 1,090 1,220 1,360 1,610 1,870 2,080 2 340 3,220- Unmetered 200 160 75 50 - - - - - - - - -- Total 450 560 675 830 96fi 1,090 1,220 1 360 1,610 1,870 2,080 2,340 3,220Standposts 600 600 600 500 400 350 300 300 300 300 300 300 300

4. WATER DEMAND (lcd)Connections 160 160 160 160 160 160 160 160 160 160 160 160 t60Standposts 45 45 45 45 45 45 45 45 45 45 45 45 45

5 WATER DEMAND (m3

/day)Domestic- Connections 48,960 51,200 53,120 58,880 64,320 70,080 76,480 78,080 79,680 81,440 83,360 85.440 95,680- Standposts 6,750 6,750 6,750 5,620 4.500 3,960 3,370 3 370 3,370 3,370 3,370 3,370 3.370Industrial/Commercial 16,250 18,570 25,530 36,200 37,150 38,100 39,000 39,930 41,800 44.100 46,400 48,750 55.700Others 4,300 5,400 6,500 8,000 9,250 10,500 11,750 13,100 15,500 18,000 20,000 22,500 31.000Unaccounted for 32,240 34,380 38,600 45,700 48,380 51,460 52,200 52,420 53.340 S4.390 55,170 53,340 46,450- 2 of tot'l 30 30 30 30 30 30 29 28 28 27 26 25 20Total 108,500 116,300 130,500 154,400 163,600 174,100 182,800 186,900 193.700 201,300 208 300 213,400 232,200

6. WATER PRODUCTIONCAACITTY (m /daj)Borehole s

Nos 52 54 54 62 62 62 67 72 72 72 73 76 86- Capacitylborehole 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880 2,880Total Yield 149,760 155,520 155,520 178,560 178,560 178,560 192,960 207,360 207,360 207,360 210,240 218,88! 247,6807 WATER SUPPLY SYSTEM. . .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~S1

Balancing Reservoirs "1Nos 34 4 4 10 12 15 17 20 21 23 25 32 38- Total Capacity (m ) 3,620 3,620 3,620 9,050 10,850 13,570 16,060 18,100 20,810 22,170 23,520 28.750 34,030- %of Water Demand 3 3 3 6 7 8 9 10 11 11 11 13 15City Area (Acr,uaky') 19,244 19,244 19,244 19,244 19,244 19,244 19,244 19,244 19,244 t9,244 19,244 19,244 19,244Area Covered (Acreages) 2,000 2,500 4,500 6,500 8,500 10,000 11,000 12,830 13,900 15,000 16,000 17,000 19,200Transmission Mains (km) 2.0 2.1 2.1 2.1 2.1 2.1 2.7 3.2 3.4 3.8 4 2 4.7 5.0Distribution Mains {km) 319 322 330 338 353 379 419 471 480 500 520 540 600

INDIAPUNJAB WATER SUPPLY AND SEWERAGE PiOJECT

LUDHIANA WATR SUPPLY

Population and Demand Pro jections

Fiscal Year 1575 1976 1977 1978 1575 1980 1981 1982 1983 198 1985 1986 1992-- --- Project Period------

1. POPULATION- Nos. 490,000 530,000 570,o0o 605,000 640,0oo 674,000 708,000 741,000 773,000 805,ooo 836,000 867,000 1,050,000- % increase 8.1 7.6 6.2 6.1 6.0 5.9 5.8 5.7 5.6 5.4 5.3 21.1

2. POPUIATION SERVED (Nos.)By Connections 238,000 263,000 279,000 303,000 343,000 396,ooo 430,000 490,000 570,000 600,000 630,000 666,000 810,000- % of total population 49 50 49 50 54 59 61 66 74 75 75 77 77- Average/connection 12 12 12 12 12, 11 10 10 10 10 10 10 9By Standposts 124,000 124,000 124,000 124,000 120,000 100,000 90,000 80,000 70,000 70,000 70,000 70,000 70,000- % of total population 25 23 22 21 18 15 12 11 9 8 9 8 7- Average/standpost 200 200 200 200 200 200 200 200 200 200 200 200 200By Other Means 128,000 143,000 167,000 178,000 177,000 178,000 188,000 171,000 133,000 135,000 136,000 131,000 170,000- % of total population 26 27 29 29 28 26 27 23 17 17 16 15 16

3. CONNECTIONS/STANDPOSTS (Nos.)Domestic- Metered 19,472 16,612 17,982 20,000 29,600 33,350 40,675 49,000 57,000 60o000 63,000 66,600 90W)000- Unrmetered 5,382 5,300 5,300 5,300 4,000 2,650 1,325 -- -- -- -_ __ __- Total 19,859 21,912 23,282 25,300 28,600 36,0oo 42,000 49,000 57,000 60,000 63,000 66,600 90,000Industrial/commercial- Metered 525 600 675 900 1,4o0 2,200 2,500 2,800 3,000 4,000 5,owo 6,ooo 11,500- Unmetered -- -- -- -- -- __ __ __ __ __ __ __ __

Total 525 600 675 900 1,900 2,200 2,500 2,800 3,000 4,000 5,0000 6,000 11,500Others- Metered- Unrmetered

TotalSStandposts 622 622 622 622 600 500 450 400 350 350 350 350 350

4. WATER DENAND (lcd)Conneations 130 140 140 140 140 140 140 140 190 140 140 140 160Standposts 45 95 45 45 45 45 45 45 45 45 45 45 95

5. WATER DENAND (m3/day)

Domestic- Connections 30,940 36,820 39,o60 42,420 48,020 55,440 60,200 68,600 75,800 84,000 88,200 93,240 129,600- Standposts 5,580 5,580 5,580 5,580 5,400 4,500 4,050 3,600 3,150 3,150 3,150 3,150 3,150Industrial/commercial 6,450 7,350 8,260 11,030 17,160 26,970 30,640 34,320 36,800 49,000 55,200 61,300 141,000O th ers -- -- -- -- -- -- -- -- -- -- -- -- --Unaccounted for 29,670 33,600 35,540 39,490 41,100 52,470 57,200 58,280 51,410 47,720 50,030 51,610 84,910- % of total 41 40 40 37 37 37 37 35 30 26 26 25 24

Total 72,640 83,350 88,440 93,520 111,68o 139,380 152,090 164,8oo 171,i6o 183,870 196,580 209,300 358,66o6. WATER PRODUCTION CAPACITY (m

3/day)

Boreholes- Nos. 32 35 37 39 41 46 5° 54 56 60 64 70 113- Capacity/borehole 3,240 3,240 3,240 3,290 3,240 3,240 3,240 3,240 3,21P 3,240 3,240 3,240 3,240- Total yield 103,680 113,400 119,880 126,360 132,840 149,040 162,000 174,96o 181,990 194,400 207,360 226,800 366,120

7. WATEPR SUPPLY SYSTEN MBalancing reservoirs- Mos. 9 9 9 10 12 17 22 26 28 30 32 34 48- Total capacity (m

3) 6,350 6,350 6,350 6,81O 8,170 12,260 17,025 22,020 23,830 25,650 27,470 29,280 37,680

- X of water demand 9 8 7 7 7 9 11 13 19 14 14 14 11City area (acreages) 10,304 10,304 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375Area covered (acreages) 5,000 5,500 6,000 6,500 7,500 8,500 10,000 10,304 12,000 19,000 16,000 18,000 25,600Transmission mnains (km) 1.7 1.7 2.0 2.5 2.7 3.0 3.9 3.9 c.1 4.3 4.5 4.7 6.7Distribution mains (km) 190 200 212 232 292 262 272 2c2 320 360 380 400 500

INDIA ANNX 1T5


FIVE TOWNS WATER SUPPLY

Consolidated Population and Demand Projections

Fiscal Year 1978 1979 1980 1981 1982 1983------------Project Period-----------

1. POPULATION- Nos. 500,000 522,000 546,000 568,000 593,000 616,000- % increase - 4.4 4.6 4.3 4.2 4.1

2. POPULATION SERVED (Nos)By connections 228,000 263,000 320,000 379,000 439,000 492,000- % of total population 46 50 59 67 74 80- Average/Connection 8 7 7 7 7 7By standposts 127,000 111,000 104,000 85,000 80,000 50,000- % of total population 25 21 19 15 13 8- Average/standpost 140 150 150 135 130 100By other means 145,000 148,000 122,000 104,000 74,000 74,000- % of total population 29 29 22 18 13 12

3. CONNECTIONS/STANDPOSTS (Nos)Domestic 30,000 37,094 45,146 53,445 62,714 69,913Industrial/commercial 505 540 580 610 640 670Others 700 900 1,125 1,325 1,525 1,760Standposts 905 723 691 627 609 496

4. WATER DEMAND (lcd)Connections -----------------------90 to 155------------------------------Standposts 45 45 45 45 45 45

35. WATER DEMAND (m /day)

Domestic- Connections 29,700 36,700 44,100 51,800 59,900 67,200- Standposts 5,700 5,000 4,700 3,800 3,600 2,300Industrial/commercial 5,300 5,700 6,300 6,500 6,900 7,100Others 2,500 3,100 3,800 4,300 4,900 5,700

Unaccounted for 17,400 20,400 22,000 23,100 24,000 24,200- % of total 29 29 27 26 24 23Total 60,600 70,900 80,900 89,500 99,300 106,500

6. WATER SUPPLY SYSTEMBoreholes (Nos) 43 44 45 45 32 24Treatment Works (Nos) - - - - 2 2Balancing reservoirs- Nos 18 18 19 20 21 21- Capacity 8,080 8,080 9,900 11,725 12,600 12,600City area (acreages) 31,617 31,617 31,617 31,617 31,617 31,617Area covered (acreages) 10,080 12,344 15,314 17,906 20,168 21,738Distribution and transmission Mains(km) 258 328 399 463 547 588

INDIA


JULLUNWUR SEWERAGE AND SEWAGE DISPOSAL

Population and Flow Projections

Fiscal Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1992------ Project Period----------------

1. POPULATION- Nos 327,000 337,000 348,ooo 360,000 372,000 385,000 398,000 408,ooo 418,000 429,ooo 440,000 451,000 522 000- % increase 3.0 3.2 3.4 3.5 3.5 3.5 3.5 2.6 2.6 2.6 2.6 2.5 1 .0

2. POPULATION SERVED (Nos)By Connections 24,000 30,000 38,ooo 39,000 53,000 100,000 189,000 250,000 262,000 282,000 298,000 313,000 500,000- %¢0 of total populetion 7 9 11 11 14 26 47 61 63 66 68 69 96- Average/connection 12 12 12 12 12 12 11 10 9 9 8 8 8By Septic Tanks 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000- % of total population 1 - - X _ -_ _ _ - _ _By Conservancy System 302,000 306,000 309,000 320,000 318,000 284,000 208,000 157,000 155,000 146,000 141,000 137,000 21,000- % of total population 92 91 89 89 86 74 53 39 37 34 32 31 4

3. CONNECTIONS (nos)Domestic 1,985 2,486 3,168 3,224 4,400 8,290 17,140 24,960 29,100 31,330 37,200 39,100 62,500Industrial/cormmercial - 24 24 182 341 500 659 841 1,037 1,249 1,471 1,703 3,200Others - -32

4. POPULATION WITN ACCESSTO TBE SEWERAGESYSTEM BUT NOT CONNECTED- Roe 32,000 33,000 36,ooo 38,000 37,000 35,000 33,000 30,000 30,000 29,000 28,000 27,000 21,000-% of total population 10 10 10 11 10 9 8 7 7 7 6 6 4J of connected

population to populationwith access to the system 43 48 51 51 59 74 85 89 90 91 91 92 96

5. SEWAGE FLOW (m3/day)

Domestic 22,200 23,520 25,080 25,800 27,360 31,320 34,680 28,280 41,760 44,400 45,00 1 46,800 60,000Industrial/commercial - 170 170 1,290 2,420 3,540 4,670 5,960 7,350 8,850 10,420 12,070 23,000Others incl. infiltration 6,700 7,760 8,360 8,520 9,150 10,400 11,290 12,340 13,030 14,120 14,730 15,970 20,540TOTAL 28,900 31,450 33,610 35,610 38,930 45,260 50,64o 56,580 62,140 67,370 70,150 73,940 103,540

6. SEWERAGE SYSTERCity area (Acreages) 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287 9,287Area covered (Acreages) 820 880 950 1,052 1,184 1,385 3,000 3,850 4,125 4,645 4,852 5,163 8,747Length of sewers- Laterals (Ism) 51 53 56 59 75 113 160 218 219 230 236 242 300- Interceptors (km) 9.5 11.7 14.4 16.6 20.4 31,6 42.8 54.0 55.5 56.o 56.0 57.5 60.o- Outfall (km) 2.5 2.5 2.5 2.5 2.5 2.5 3.0 3.5 4.0 5.0 6.2 7 4 10.5Pumping Stations (nos) 7 7 7 7 8 6 6 5 5 5 5 6

INDIA


AMRITSAR SEWERAGE AMD SEWAGE DISPOSAL


Fi scal Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1992(Project Period)--

1. POPULATION- Nos 545,000 552,000 560,000 567,000 575,000 583,000 591,000 598,000 606,000 614,000 621,000 629,000 688,000- 7, Increase 1.3 1.3 1.4 1.4 1.4 1 4 1.4 1.4 1.4 1.4 1.4 1.4 9,4

2. POPULATION SERVED (Nos)By Connections 25.000 27,000 30,000 44,000 85,000 162,000 238,000 317,000 344,000 358,000 380,000 437,000 591,000- %of Total Population 5 5 5 8 15 28 40 53 57 58 61 69 86- Average/Connections 8 8 8 7 7 7 7 7 7 7 7 7 7By Septic Tanks - - - - - - - - - - - - -- 7 of Total Population - - - - - - - - - - - - -By Conservancv System 520,000 525,000 530,000 523,000 490,000 421,000 353,000 281 000 262,000 256,000 241,000 192,000 97,000- % of Total Population 95 95 95 92 85 72 60 47 43 42 39 31 14

3. CONNECTIONS (Nos)Domestic 3,167 3,335 3,750 6,250 12,140 23,140 34,140 45,240 49,140 51,140 54,290 62.430 84,430Industrial 355 370 465 2,750 4,080 5.,40 6.780 7,760 8,630 9,210 9,870 10,400 12,000Commercial/Others 375 475 675 1,000 1,500 2,000 2,500 4,000 5,000 6,000 7.000 8,500 10,000

4. POPULATION WITH ACCESS TO THESEWERAGE SYSTEM BUT NOTCONNECTED- Nos 80,000 87,000 95,000 100,000 110,000 105,000 73,000 53,000 50,000 48,000 40,000 25.000 15,000- % of Total Population 15 16 17 18 19 18 12 9 8 8 6 4 27, of Connected Povulation toPopulation 'ith Access to theSystem 24 24 24 31 44 61 77 86 87 88 90 95 98

5. SEWERAGE FLOW (m3

/da-.)Domestic 36 750 38,400 39,840 44,160 48,240 52,560 57,360 58,560 59,760 61,080 62,520 64.080 71,260Industrial/Commercial 15.100 5.900 7 900 26,240 34,800 36,450 38,060 39,800 43,000 46 500 49,800 53.440 65.000Others including Infiltration 24,180 25.800 28.950 34,300 36,300 38,600 39,200 39,300 40,000 40,800 41,400 40.000 34.800Total 66,030 70,100 76.690 104,710 119,340 127,610 134,620 137.660 142,760 148,380 153,720 157,570 171,560

6. SEWERAGE SYSTEMCity Area (Acreages) 19,244 19,244 19,244 19,244 19,244 19,244 19,244 19,244 19,244 244 19,244 19,244 19,244Area Co-ered (Acreages) 1,000 1,500 2,000 3,000 5,000 7,000 9,000 11,530 13,530 15,330 17,530 18,530 19,010Length of Se'.era- Laterals (km) 43 45 47 69 98 145 201 257 275 290 300 330 350- Interceptors (km) 6.F 7.0 7.5 10.9 14.5 21.4 31.8 45.7 45.7 46.0 46.5 46.8 90.0- Outfall (km) 0.5 0.5 0.5 0.8 1.0 1.5 2.3 2.6 2.7 2.8 3.1 3 4 4.0Pumping Stations (Nos.) 7 7 7 7 8 8 8 8 8 8 10 10 10

INDIA

PUNJAS WATER SUPPLY AND SEWERAGE PROJ!'OT

LUDHIANA SEWERAGE AND SEWAGE DISPOSAL


Fiscal Year 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1992

-Ps'ojaot Peiriod…-------

1. POPULATION- Nos 490,000 530,000 570,000 605,000 640,ooo 674,ooo 708,000 741,000 773,000 805,000 836,000 867,000 1,050,000

- % increase 8.1 7.6 6.2 6.1 6.o 5.9 5.8 5.7 5.6 5.4 5.3 21.1

2. POPULATION SERVED (Nos)By Connections 80 000 60,000 80,000 132,000 180,000 253,OOG 310,000 81G,000 470,000 500,000 530,0oo 56o,000 810,000

- ( of total population 11 14 22 28 38 44 55 61 62 63 65 77- Average/connections 12 12 12 12 12 11 10 10 10 1G 10 10 9

By Septic tanks 20,000 40,0oo 50,000 60,000 70,000 50,000 50,000 10,000 -- - -- --

- % of total population 4 8 9 10 11 7 7 2

By Conservancy System 430,000 430,000 440,000 413,000 390,000 371,000 348,000 321,000 303,000 305,000 306,000 307,000 240,000

- % total population 88 81 77 68 61 55 49 43 39 38 37 35 23

3. CONNECTIONS (Nos)Domestic 3,333 5,000 6,666 1l,0oo 15,000 23,000 31,000 41,000 47,000 50,000 53,000 56,ooo 90,000

Tndustrial/Commercial 300 400 675 900 1,100 1,400 1,600 2,200 3,000 4,ooo 5,000 6,o0o 11,000

Others -- - - -- - -- - -- - -- - -- --- - -- ~ --- - -- -- - - -- -- -

4. POPULATION WITH ACCESS TOTHE SEWERAGE SYSTEM BUTNOT CONE CTED

- Nos 80,000 lGO,000 180,000 180,000 140,ooo 135,000 130,000 110,000 100,000 100,000 100,000 100,000 50,000


% of connected populationto population with accessto the system 33 38 36 49 56 65 70 79 82 83 84 85 94

5. S&SAGs FLow (m3/day)Domestic 23,200 27,600 29,300 31,800 36,ooo 41,600 45,100 51,450 59,850 63,000 66,150 69,900 97,200

Industrial/Commercial 4,800 5,500 6,200 8,300 12,900 20,200 23,000 25,700 27,600 36,700 41,400 45,900 100,750

Others inel.infiltration 22,200 25,200 26,600 25,900 30,900 39,300 42,900 43,700 38,500 35,800 37,500 38,700 63,600

TOTAL 50,200 58,300 62,100 66,ooo 79,800 101,100 111,000 120,850 125,950 135,500 185,050 154,500 266,550

6. SEWERAGE SYSTEMCity area (Acreages) 10,304 10,304 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375 28,375

Area Covered Acreages) 2,000 2,500 3,000 3,650 5,000 7,500 10,000 15,000 15,000 16,000 17,000 18,000 25,600

Length of sewers- Laterals (hm) 100 110 120 130 160 220 240 280 310 340 370 400 700

- Interceptors (ksm) 10.0 12.0 15.0 20.0 25.0 384. 448. 51.0 66.o 17.0 75 .O 0 20.o.o 0

- Outfall (los) -- -- -- -- 2.0 5.0 3.0 10.2 1 3. .C L5 1 o 20.0

Pumping Stations (nos) 10 10 10 10 9 8 7 6 5 5 5 5 5

ANN E( 1

T,CINDIA


FIVE TOWNS SEWERAGE AND SEWAGE DISPOSAL

Consolidated Population and Flow Projections

Fiscal Year 1978 1979 1980 1981 1982 1983----------Project Period-------------

1. POPULATION

- Nos 500,000 522,000 546,000 568,000 593,000 616,000- % increase - 4.4 4.6 4.3 4.2 4.1

2. POPULATION SERVED (Nos.)By Connections 30,000 84,000 154,000 229,000 316,000 360,000- % of total population 6 16 28 40 53 58- Average/Connection 8 7 7 7 7 7By Septic Tanks 15,000 12,000 10,000 9,000 7,000 6,000- % of total population 3 2 2 2 1 1By Conservancy System 455,000 426,000 382,000 330,000 270,000 250,000- % of total population 91 82 70 58 46 41

3. CONNECTIONS (Nos)Domestic 3,910 12,180 23,560 33,340 46,020 52,530Industrial/Commercial 140 235 355 395 500 575Others 50 275 450 650 850 1,025

4. POPULATION WITH ACCESS TO THESEWERAGE SYSTEM BUT NOT CONNECTED

- Nos 108,000 84,000 79,000 50,000 33,000 45,000- % of total population 22 16 14 9 6 7% of connected population topopulation with access to thesystem 3 21 50 66 82 90 89

5. SEWAGE FLOWS (m /day)Domestic 22,000 26,900 32,700 38,700 45,000 50,300Industrial/Commercial 4,000 4,300 4,700 4,900 5,200 5,400Others including infiltration 15,200 17,200 18,100 19,800 19,300 19,000Total 41,200 48,400 55,500 63,400 69,500 74,700

6. SEWERAGE SYSTEMCity area (acreages) 31,617 31,617 31,617 31,617 31,617 31,617Area covered (acreages) 8,673 10,520 13,037 16,010 18,730 20,680Length of sewers- Laterals (km) 117 136 204 269 320 354- Interceptors (km) 31 32 34 40 71 80- Outfalls (km) 3.5 3.5 3.5 5.5 9.6 12.6Pumping Stations (Nos) 5 5 5 6 6 6

INDIA

PUNJAB WATER SUPPLY AND SEWERAGE PE)JECT

Implementation Capacity and Manpower Requirements(Tentative)

Annual Capacity Present Required number of Divisions Divisions to be established andper division Numbers Workload (Rs Crores) and Staff Members staff to be promoted or recruited

Fiscal Year (Rs crores) 1978 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982

A. ESTABLISHMINT

1. Design Divisions 2.50 2 15.0 20.0 20.0 20.0 20.0 5 8 8 8 8 3 - - -2. Procurement Divisions - 1 - 2 - - - - 1 - - -3. Appraisal and

Monitoring Division - / -1 - - - - 1,4. Construction Divisions 0.60 to 0.901 14 9.6 13.4 23.5 24.9 26.9 14 19 29 29 29 - 5 lo _ _

B. STAFFING

Superintending Engineer 4 5 7 9 9 9 1 2 2 - _Executive Engineer 17 20 37 45 45 45 3 17 8 - _Assistant Ehgineer 60 80 148 180 180 180 20 68 32 - -

/ Erpected inflationi during the project implementation period has been taken into account.

INDIA

PUNJAB WATER SUPPLY AND SEWERAGE PROJECT -

Schedule for Installation of Water Meters and Water and Sewer Connections

Water Metersl/ Water Connections-2/ Sewer Connections3(new installations)

Fiscal Year 1979 1980 1981 1982 1979 1980 1981 1982 1979 1980 1981 1982to Mar. 31Jullundur 2,788 6,723 9,095 11,093 1,329 3,091 4,783 6,081 1,334 4,049 9,009 8,002Amritsar 12,288 12,522 13,095 4,095 5,188 5,472 6,045 1,768 7,720 12,830 12,870 13,580Ludhiana 5,100 9,550 7,625 8,625 3,800 8,200 6,300 7,300 4,200 8,300 8,200 10,600Three Towns 20,176 28,795 29,815 23,813 10,317 16,763 17,128 15,149 13,254 25,179 30,079 32,182Five Towns 7,329 8,317 8,529 9,499 8,590 11,675 10,020 12,985Eight Towns 17,646 25,080 25,657 24,648 21,844 36,854 40,099 45,167

1/ One team can install about 1,250 meters/year which combined for the three towns corresponds to maximum 24 teams.

2/ Maximum number of water connections 73/day combined for the eight towns.

3/ Maximum number of sewer connections 130/day combined for the eight towns; 75 contracts are assumed per year withabout 2 connections per day per contractor.

x

I.-

PUNJAB WATER S17PPLY AND SEWE896E PROJECT

t_ 908118TER S8PPLY _AND SUEPAC8

sWND8rV Coot 8tUo&tOO

WATER SUPPLY 1E1E88ACEPlool Y.4r 1979 1980 1981 1932 Total 1979 1980 1981 1982 rocal Parcentago 191 198B 1981 1992 3OtS3 1979 1980 1981 1982 10lt, Per- ot.g.of Tt.1a of to-al--- R. L1 . 6------------------- ^--------US$ '00 8D w1Eq.o...t -_- 8-Too - -- _________R. Lkh ----. _-______-,______ ---- S-----0----- '030 qoivalent ------- 8-ToamsJulloudur 50.6 107.1 528.2 133.7 419.6 589 7244 1490 1556 4379 19 79.0 273.0 388.9 454.8 1195.7 921 3172 4524 527.7 13906 27Aorlttor 52.5 102.4 144.6 158.3 457.8 61.0 1192 1683 1641 5326 21 118.4 3i7.6 360.4 478.2 1274.6 1374 3694 4191 5561 148320 9L.dhiana 83.4 193.3 193.2 203.2 673.1 971 2249 2246 2363 7829 31 986.4 380.0 383.1 368.5 1318.1 2169 4420 4455 4285 75329 30Suneary 3-Towvn 186.5 402.8 466.0 495.2 155D.5 2170 4685 5419 5760 15034 71 383.e 970.6 1132.4 1301.5 3788.4 4464 11286 13170 15135 44055 86

Hoga 24.1 45.8 19.2 12.2 101.3 280 533 223 142 1178 5 19.9 41.4 35 2 36.7 133-2 231 481 4og 427 1548 3Pati.1 20.8 33.0 31.6 27.4 112.8 242 384 367 319 1312 5 22.9 36.7 35,2 37.2 131.9 266 427 409 432 1534 3Rl3p... 17.6 53.9 49.5 47.3 168.3 205 627 576 550 1958 8 12.2 20.2 21.5 22.7 76.6 142 235 250 264 891 2Bhantlads 19.4 32.4 35,2 29.0 116.0 226 376 409 337 1.348 6 15.0 42.1 42.2 44.6 143.9 174 490 491 519 1674 3P.th.akot 11.5 34.8 36.8 31.0 114.1 132 403 430 361 1326 5 10.8 33.1 39 1 54.4 137.4 126 372 455 633 1587 3SO04wty 5- To... 93.4 199.9 172.3 146.9 612.6 1065 2323 2005 1709 7122 29 80.8 173.5 173.2 195.6 622.1 939 2006 2014 2275 7234 14Suary 8-Towa. 279.9 602.7 638.3 642.1 2163.1 3255 7008 7424 7469 22156 100 464.6 1144.1 1305.6 1497.1 4410.5 5403 13292 15184 17410 512b0 1too

WATER SUPPLY AND SE86148P1 oDal Y2ft 1979 1980 1981 1982 Total 1979 1980 1981 1982 T.t.S Parc...tlg tart-ot.

8ga

oIL3Total Wmater----- _ -_----R l.kh --------------- -- - ------------ US$ Eqivslant ------- ------- B-o-oal Watery Sewerege

Jullundut 129.6 380.1 517.1 588.5 1615.3 1510 4416 601.4 6845 18785 25 26 74Amnritsar 110.9 420.0 505.0 636.5 1732.4 1984 4.86 5874 7402 20146 26 26 74L.dhiana 269.8 573.3 576.3 571.7 1991.2 3140 6669 6701 6648 23158 30 34 69S3,atry 3-Tlsol 520.3 1373.4 1598.4 1796.7 5338.9 6634 15971 138589 20895 62089 81 29 71

I0gt 44.0 87.2 54.4 48.9 Z34.5 511 1014 632 569 2726 3 43 57Pttiftal 43.7 69.7 66.8 64.6 244.7 508 8.1 776 751 284 4 46 54Rejpus- 29.8 74.1 71.0 70.0 244.9 347 862 826 8114 2849 4 69 31IQatida 34.4 74.5 77.4 73.6 259.9 400 866 900 856 3022 4 45 55IathIlokot 22.3 67.9 75.9 89.4 251.5 258 775 885 994 2933 4 46 54Cswarner 5-To-. 174.2 373.4 345.5 242.5 1234.7 2024 4329 4019 39194 14356 19 50 50

Slaoory 6-_Ta.os 744.5 1746.8 1943.9 2139.2 6573.6 8658 20300 22608 24879 76445 too 33 67

PUNJAR WATER RSPLT ARID ISEWR2AGE PROJECT

B-.TURSWATPER SUPPLY

CITY----snoo.-- JU-NU -oa 99SMAYSA RYOAR - AMRSITSAR '----- ----- - LUDHIANA_________Fiscal Yea 1979 1980 1981 1982 Total 1979 190 18 1 991 t1 199 1999 11989 1982 Total 1979 1988 1981 1982 Total 1979 1990 1991 1982 Total 1979 1988 1981 196

A. EAREC CIOITS C.A 13.5 27.8 28.8 24.3 94.1 157 323 335 283 1U98 14.1 20.0 27.9 28.7 88.7 1.64 233 324 310 1032. 19.3 46.5 43 8 45.6 155.2 224 541 509 530 3804M&E ~~~~21.9 42 3 50.3 13.8 169.3 255 492 585 6Ž6 1958 22.5 47.2 61.5 61.9 197.2 2.62 549 71.5 766 2292 39.1 80.2 25 5 72.6 267.6 455 938 7978 847 t13Tetel 35.4 701.1 79.1 78.1 262.8 412 815 920 909 3056 36.6 67.2 89.4 92.8 285.9 426 78Ž 1039 1776 3323 58.4 126.7 119 3 118 4 42l.7 679 1474 1387 137

B. PHUSICAL.C8IOINSS.C.8. 1.8 3.3 3.5 2.9 11.3 19 38 41 34 132 1.7 2.4 3.4 3.2 10.7 ID 28 4o 37 3-27 2.3 1.6 9 3 5.1 19.7 27 65 62 64 21.8RilE 2.6 1.1 6.0 6.1 2U.2 3D 59 70 76 235 2.7 5.7 7.4 7.9 23.6 31 66 86 92 275 4.7 9.6 9.0 8.7 32.8 55 132 155 101 3733To-a 4.2 9.4 9.3 9.4 31.1 49 97 1.1 nIO 367 4.4 8.1 10.8 11.1 34.3 Si 9)4 1.26 1.29 400 7.8 15.2 14.3 14.2 98.7 82 173' 167 Ž65 591.

C. PRICE C8tMIDOENCIESO~C.w. t.l 6.2 9.0 9.8 26.8 21 72 105 114 312 1.9 4.1 9.8 11.8 21.9 2Ž 52 102 126 302 2.6 18.4 13.7 19.4 41.1 30 121 159 214 52486 2.6 8.3 13.8 19.0 43.7 30 97 1.60 721 308 2 .7 9.3 16.9 23.2 52.0 31 io8 197 270 606 4.6 t5 7 20.7 25.7 66.7 53 183 24i. 299 776Teto1 4.4 14.5 22.8 28.8 70.1 51 169 265 335 820 4.6 13.6 25.3 34.8 31.9 53 16o 299 39 0 7.2 26.1 34.4 44 1 Ill 8 83 304 400 5313 1300SUB-TOTAL A+R9C

CEW. 17.0 37.4 41.3 37.1 132.8 197 433 481 431 1542 17.7 26.8 40.8 4R.6 129.2 Ž06 313 466 473 1458 24 2 62.5 62.8 69.4 218.9 281 727 73 808 254689.E 27.0 15.7 70.2 79.2 232.1 315 648 815 923 2701 22.9 62.2 85.8 92.1 232.9 324 723 997 1128 31.72 48.4 105.5 105.2 L97.3 366.4 5E3 1208 1Ž2 1247 4267Total 44.0 93.1 111.1 116.3 364.9 5132 1081 1296 1354 4243 45.8 89.0 121.8 137.7 398.1 530 1036 1463 i6oi 4630 72.6 168.0 166.0 176.7 5815 3 844 1955 'gr, 2055 6801D. ENGINEERINGS V .6 14.8 16.1 17.4 54.3 77 163 194 202 636 6.9 13.4 18.9 2o.6 19.8 90 156 220 240 696 18.9 71.2 29.1 26 1 87.8 127 294 20 N 1011DEANE TOTAL A+B4+C0 18.6 107.1 128.2 133.7 419.6 589 1.244 1490 1556 4879 12.5 192.4 144.6 158.3 417.8 610 1192 1683 184i 5326 83.5 193.3 193.1 203.2 673.1 971 Sag RAIs 2363 782

TITY - TRIEM CW 1 �-7088- ..- 1ROMANY 3-TOWI8 SUK8EARY 8-70O1Fiscal Tear 1979 1989 19891 1982 Into1 1879 1988 1981 1982 Total Tetol Toto1 Tatal Total

-------- sR Lokh6--------- ---- - -011$ '990 Eqoilvuat--- ---- aR LaMe 10$ '995 Es Lobs US$ 8880A. EASIC 037T1 V Eqatelatea RqnEvalsat

T,11. 23.3 33.6 28.0 19.3 184.2 271 391 926 224 1.212 338.4 3933 442.6 5145MME 42.0 97.7 78.7 66.8 281.3 488 1136 915 777 3316 633.1 3363 918.4 10679lot Toto1 61.3 131.3 126.1 86.1 389.5 759 1577 1241 1001 4528 971.1 11.296 1361.0 158Ž4

B. FMI050L CONlTING1MClZ8s5.8. 2.8 4.0 3.4 2.3 12.3 33 4'7 4o 27 1.47 40.6 475 33.1 62288.0 1.0 11.7 9.4 8.0 34.2 58 136 3.og 93 396 75.9 883 ILR.1 1279Total 7.8 11.7 12.8 18.3 46.7 91 183 149 120 543 116.1 1,358 163.2 1921

C. PRtICE CONITINGTENICES 2Cit. 3.1 2.1 8.8 7.8 27.2 36 87 102 91 316 87.8 1138 t21.9 I-454MA&E 4.9 19.2 21.6 23.6 69.3 57 223 251 274 855 162.4 1890 231.7 2695Total 8.0 26.7 30.4 31.4 96.1 93 310 313 365 1.1.21 260.2 3028 316.7 4149

812B-TOTAL 4+8+C C.W1. 29. 49.2 40.1 29.4 143.9 340 525 468 34Ž 1675 476.9 5546 628.8 7221M468 12.8 121.6 109.8 98.3 388.8 603 1495 1275 1244 451-7 871.4 101355 1260.2 1.465ŽTotal 81.3 123.8 149.9 127.7 132.7 943 2020 1.743 1.486 61.92 1348.3 15681 1881.0 21573

D. ENGINEERING Ž 12.p 26.1 22.5 19.2 79.9 142 303 262 023 930 292.3 2353 182.2 3Ž83

'RAND T0TA1 A+BoTuD 93.4 199.9 172.4 146.8 612.6 1085 2323 2005 1709 7122 1510.1 18034 2163.1 ŽŽI.s6

CAW. =Tiril EsPIEs080 .. lt-vtaIs & Eqiotuset

V Saut o-ots a mid 1977 P.r8euoJFur phyelo. otlgaoa 12% to ppliud to b00iv eu-to/Fur prbaa csttigeastes 8% iv opplO4 for i0tl -oke usA 7%

VF-u .vgi.eeriog 4% Ia aUlpied Cur d-uigs ad 11% Cur -o-tr-tluu

INIA

PUJAB WATER SUP PRO1 SEERARRER PROJECT8-TOWNS SEWORAEO ANDO SERAGE DISPOSAL

DUM0MAR7 COST OSTD4ATOS

OJLLOBDSAMOD'AS LUDHIANAj

1979 0980 0931 0900 TOTAL 1979 1980 1981 1982 TOTAL, 1979 1900 1981 1900 TOITAL 1979 1980 1981 1982 TOTAL 1979 1980 1981 1982 TOTAL 1909 19803 1981- 1982 TOMAEsR 04kh 00$' 000 Equialent . - . #--R 1Jokhs U0$ '005 OqU-vl-t- - 0. Lakhs - 10$ 'ODD Equiv-let..

A. BASSO COSTS

OW. ~~~~~~~~~31.2 93.6 105.6 109.6 336.0 369 1088 122 1228 io 3907 43.1 126.4 129.9 15i.6 445.0 901 1470 1441 1763 5175 72.5 14* 138.9 129.1- 480.5 843 1675 1615 11*5 558923.9 84.9 134.0 099.4 4Ms.7 278 903 19558 1893 4672 39.5 80.0 97.4 129.5 343.0 459 940 1133 1499 3991 57.6 103.t 196.1 8812 345.8 670 TPW 1118 ite6 4oa

TOTAL 95.1 170.1 239.6 265.0 737.7 641 20171 2786 3081 9529 82.6 007.2 001.3 277.2 788.8 960 21*10 2574 3222 9166 130.0 248.0 235.0 213.3 026.3 1913 2884 2733 21.1 9611

R. PHSICAL CONJTINGENCIESO.W. 3.8 11.0 12.7 12.7 40.3 44 130 3i48 148 470 5.2 15.2 14.9 18.2 53.4 6 177 173 212 622 8.7 17.3 16.7 15. .y 11 21 9+ 17 60WE. 2.9 10.1 i6.i 19.1 48.2 34 117 1.87 222 560 4.7 9.7 11.7 15.1 41.2 55 113 136 176 480 6.9 2~ 1-1.5 10.6 41.5 So i45 2.34 1L23 48E0TOT4L 6.6 21.3 p28.8 31.0 88.5 78 247 335 370 1030 9.9 04.9 26.6 33. 94.6 -115 290 309 388 1120 19.6 298 28.'2 E5.6 99.2 181 346 328 2917 1152

C. PRIECODNTINGENCIESOO

O.W. 4.2 21.0 33.1 42.6 100.8 49 244 385 495 1273 5.8 28.3 38.8 6i.1 134.1 67 329 451 710 1557 9.7 32.3 43.5 50.5 136.0 113 376 506 587 1582MOE 2.8 16.7 36.8 56.2 112.5 33 194 428 653 1308 4.6 13.8 26.7 44.3 91.5 53 184 910 515 1062 6.8 20.4 26.4 31.1 84.6 79 237 307 362 965TOTAL 7.0 37.7 69.9 98.8 213.3 S2 438 813 1148 2481 10.4 44.i 65.6 105.4 225.6 120 513 761 1225 2619 16.5 52.7 69.9 81 .6 220.6 1,92 613 813 91*9 2567

Sut-Total ABC0.W. 39.2 125.8 151.4 160.8 477.2 456 1462 1761 1871 5550 54O1 169.9 177.6 231.0 632.5 628 1976 2065 2685 7354 90.9 199.6 199.1 190.6 674.2 1057 2253 2315 223 7841lIA 29.5 111.4 186.8 294.7 562.4 345 1294 2173 2728 654o) 48.8 106.3 135.8 184.9 475.8 567 1.237 1579 2150 5535 71.2 13623 134.1 129.9 471.9 829 1590) 1559 1511 5W*9TOTAL 68.7 037.2 338.2 395.5 1039.6 801 2756 3934 4599 12090 100.9 076.2 313.4 415.9 1108.3 1195 3213 3644 4835 12887 162.1 330.4 333.1 320.5 12146.1 1886 3843 3874 372 15130

2. ENGINEEJRTRO 10.3 35.8 50.7 59.3 156.i 120 4i6 590 '69c0 i8i6 15.4 41.4 47.0 62.4 166.2 179 481 547 726 1933 04.3 49,6 50.0 48.oC 171.9 083 577 58i 558 1999

GADTT4 AEsBICD 79.2 273.0 389.9 494.8 1295.7 921 3172 4524 5289 13906 118.4 317.6 3o6.4 470.2 1274.6 1374 3694 4191 5561 10800 186.4 380.0 383.1 368.5 1318.1 2169 4420 -4#*5 't5-IT3P9-

su*WART 5TOSWNS SELOOAY 3 TOM1 STEW4ART 8TOM*11

M79 1980 1981 1982 T00L410979 1980 198o 1982 TOTAL TypoS Total Tot1 Total

.-.--- R. laks.I $'0 Equivlent-. Be Lekhe US$'S00 Eq. R$ LakOs U4390000 Eq.

A.BASO000 19.6 41.4 37.7 40.3 139.0 228 481 438 469 1616 1261.5 14671 1400.5 16287M.W. 36.9 71.4 69.3 73.8 251.3 429 830 806 858 2923 1090.7 12685 1342.0 15608

TOTAL 5~~~6.5 113.8 197. 0114.1 390.3 657 1312 1244 1327 4539 2352.2 27356 2742.5 31895

Q.W.7000 2OTI3000 .4 5.1 4.5 4.8 16.8 28 59 52 56 195 151.4 1762 1-68.2 19,57

ME1 4.4 8.6 8.3 8.9 30.1 91 100 97 103 351 130.9 1522 161.o 1873TOTAL 6.8 1.3.7 12.8 13.7 46.9 79 159 149 1.59 546 282.3 3284 329.0 3832

C. PRIST CONTINGSSNCCES

C.W. 2.6 9.5 12.8 16,3 40.2 30 110 137 190 467 370.9 4312 412.1 4779MO8. 4.3 14.0 19.0 26.o 63.4 50 163 221 300 736 288.6 3355 352.0 4091TOTAL 7.0 23.5 30.8 42.3 103.6 Os 273 350 492 1203 659.5 7667 763.1 8870

Sub-Total A10100.0. 24.6 55.9 54.1 61.4 196.o 286 650 627 715 2278 1783.9 20,745 1979.9 23023

54&R ~~~~~~~45.6 94o0 96.6 100.7 344.8 530 1093 1124 1263 4010 1510.1 17562 1854.9 21572MICEAL 70.3 150.9 150.6 170.1 540.8 816 1743 1751 1978 6288 3294.0 38307 3834.8 44595

D, ENGEBSRIRG 10.6 22.6 22.6 25.5 81.3 123 263 263 297 946 494.2 5748 575.5 669s4

GRAND0 TOTAL A1B4010 8o.8 173.5 173.2 195.6 622.1 939 2006 2014 2275 7234 3788.4 4os55 4410.5 51289

0.W. 00081 W-rks1000 Mate-ialS & EquIp-et

INDIA


Material and Eqpip .. nt RaairemsontsMaterial sndnt Equipment RequirementContracis ICa Contracts LCB Contracts

Units QPuantity Estimated Basin Cots Average Total Total

3-Towns 5-Towns Total 3-Towns 5_Towss Total 3-TEs 5-T s Total stimated Costa Nos. Sizes Nos. Amount Nos. Amount

Includig Inclding Inu l. Contingencies US$001 CS$'000 0 US '000WSSB WSS3

----------------- Rs Lakhs------ ----. US$ '000 Equivalet---------- Rs Lakhs US3$ 000

A, WATtR SUPPLY1. Asbestos Cement (AC) or PVC Pipes ks 196 178 374 69.4 57.3 126.7 816 674 1,590 174.6 2,054 6 342 6 2,054

2. Cast Iron (C.l.) Pipes km 124 32 156 28'.1 84.3 373.4 3,501 S91 4,392 515.7 6,053 4 1,513 4 6,053

3. Valves and hydrants Wos. 3,515 1,750 5,205 16.0 U.9 24.9 188 105 293 34.3 404 3 135 3 404

4. Pumps Nos. 39 22 61 21.6 7.3 28.9 254 86 340 39.8 469 4 117 4659

5. Casings km 2.5 1.5 5.0 9.3 2.4 11.7 105 28 137 16.1 189 1 185 1 189

6. Strainers ks o.6 0.5 1.1 10.2 6.2 16.5 120 73 193 22.6 266 2 133 2 266

7. Balk water ceters No.. 100 19 119 8.5 1.4 9.9 100 16 116 13.6 160 1 160 1 160

d. Chlorinators Nos. 36 10 46 5.0 1.0 5.0 57 12 59 6.9 B1 2 41 2 81

9. CGstomer water metera Nos. 130,000 50,000 170,000 123.0 50.0 172.0 1,457 576 2,023 237.1 2,788 3 92S 3 2,788

10. Water connections ( lr Pipes) LS - - - 50.0 20.0 70.0 588 235 823 96.5 1,134 4 285 4 1,134

Total A 601.1 237.8 838.S 7,070 2,796 9,866 1156.2 13,598 30 28 13,517 2 81

B. SEWE3AGE1. Stone Ware (S.W.) Pipes km 492 130 622 186.8 31.6 218.4 2,198 372 2,570 301.0 3,542 25 147 24 3,542

2. R.C.C. Pipes km 0.5 82 82.5 0.5 35.6 36.0 5 b19 524 49.6 585 15 39 15 584

3. Nmps Nos. 18 3 21 9.1 1.6 10.7 10.7 19 126 15.7' 174 1 174 1 174

4. Manhole Cowers Nos. 16,200 2,800 1 r, 0 0 068.6 10.3 78.9 807 121 928 108.7 1,279 24 53 25 1,279

5. Vent Shafts Nos. 1,800 350 2,150 50.0 10.6 60.6 588 125 713 83.5 983 25 51 24 983

6. Sewe Connections(I) Sw Cith fittings Nos. 57,500 11,300 58,700 234.3 43.9 278.7 2,762 516 3,278 384.1 4,518

(ii) Connection Pipes L.S. 203.7 37.8 281.5 2,396 555 2,841 332.8 3,915 ) 300 45 300 13,505

(iii)Miscellaneous L.S. 25'.2 53.F 313.1 3,049 635 3,683 531.5 5,076

Total B 1012.6 225.3 1237.9' 11,912 2,651 15,563 1705.9 20,071 380 1 174 387 19,857

C. MISCELLANEOUS1. Drilling rigs Nos. - _ 2 - - 7.0 - - 82 9.6 113 1 113 1 113

2. Leak detection equipeet Nos. _ _ I - - 8.4 - _ 99 11.6 136 1 136 1 136

3. Sewer cleaning equipment Nos. 3 3 6 4.2 4.2 8.8 J59 49 FF 11.6 136 1 136 1 136

4. M.S. bars M.T. 1,400 400 1,800 28.3 8.0 36.3 333 95 427 50.0 588 L 147 4 5885. Vehicles LS.3 13.6 159 18.7 220 4 55 4 2206. Office and Laboratory Equipment L.S. 8.0 95 11.0 130 15 9 15 130 _7. Other ite=s L.S. 85.5 1,006 117.8 1,386 50 28 50 1,386

Total C 32.5 12.2 167.2 382 143 1,566 230.3 2,709 76 7 973 69 1,736GRAND TOTAL AdBIC 1646.2 575.3 224L.0 19,3615 5,590 26,3F5 3092.4 36,378 494 36 15,664 458 21,714

hn = kilemete-sMT = Metric tonnesLS = Lump sum

ANNEX 1T16

INDIA


Estimated Schedule of Disbursements

IDA Fiscal Year Quarterly Cumulative Disbursements % ofand Quarter Ending Disbursements at end of Quarter Total

US$ Millions US$ Millions

1979

December 31, 1978 0.1 0.1March 31, 1979 1.0 1.1 3June 30, 1979 1.9 3.0 8

1980

September 30, 1979 2.0 5.0 13December 31, 1979 2.1 7.1 19March 31, 1980 2.0 9.1 24June 30, 1980 3.2 12.3 32

1981


1982


1983

September 30, 1982 4.3 38.0 100

INDIA

PUNEJAB WATER SUPPLY AND2 SEWERAGE PROJECT

SERVICE LEVEi.0

Water Supply Se-nrge

PaIn"stion (NOs POPul.ettn. Served 1.978 PopulatiOn Served 1983 g Population Served 1978 PupuSation Servd 1983 2W7 Mean,~~~~~~~~~~~~~~~~~~~~~MasEytm.

(before project) (after project) Ro o ~ heRe Rn % Re % No. % Ro % Rs Ro %

Jallodwr 360,000 418,000 215,000 60 8,000 2 137,000 38 348,200 83 33,000 8 37,000 9 39,000 U1 321,000 89 262,000 63 156,000 37A-itts., 567,000 606,000 368,000 65 125,000 22 75,000 13 498,000 82 75,000 12 33,000 6 44,000 8 523,000 92 344,000 57 262,0oo 43L.dhi... 605,000 773,000 303,000 50 124,000 21 178,000 29 570,000 74 70,000 9 133,000 17 132,000 22 473,000 68 470,000 61 303,000 39

COubined 3 to-ns 1,532,000 1,797,000 886,000 58 237,000 17 390,000 25 1, 416,000o 79 178,000 10 203,000 la 215,000 14 1,317,000 86 1,0y76,000 60 721,000 40Mugs 74,000 102,000 30,000 41 18,000 24 26,000 35 90,000 88 3,000 3 9,00 9 '7,000) 9 66,000 91 86,000 84 16,000 16Patiala 182,000 197,000 64,000 35 52,000 29 68,000 36 177,000 90 15,000 8 5,000 2 6,000 3 172,000 97 126,000 64 71,000 36Enipura 47,000 52,000 15,000 32 00,000 43 1-2,000 25 41,000 79 10,000 19 1,000 2 2,000 4 45,000 96 39,000 75 13,000 25Bhatinda 76,000 89,000 43,000 57 24,000 32 9,000 11 79,000 89 6,000 7 4,o00 4 5,000 7 71,000C 93 68,000 76 21,000 24Pethenlkot 1-21,000 176,000 66,000 35 15,000 12 40,000 33 105,000 60 12,000 7 59,000 33 10),000 8 I21,0OM 92 42,000 24 134,000 76

Co,cbined 5 towns 500,000 616,000 228,000 46 127,000 25 145,000 29 492,000 80 50,000 8 74,000 12 30,000 6 470,000 94 360,000 58 256,000 42Co,nbined 8 towns 2,032,000 2,413,000 1,114,000 55 384,000 19 535,000 26 1,908,000 79 228,000 9 277,000 12 245,000 12 1,787,000 88 1,436,000 60 977,000 40RensJInOg urban area, 1,668,000 1,887,000 70,000 4 60,o00 4 1,537,000 92 355,000 19 80,000 4 1,452,000 77 25,000 2 1,6943,000 98 425 ,o00 23 1,462,000 77All 'Urban Area. 3,700,000 4,300,000 1,184,000 32 444,000 12 2,0C72, 000 56 2,263,000 53 308,000 7 1,729,000 40 270,000 7 3,430,000 93 1,861,000 43 2,439,000 57

Water Seupply Beverage Iveetnent Costs Per C~pit& I-setment Costs(cennected population)

water So E~~~~S.oerage Water Supply Ssr

Add. popOlsatio0 Add. equilvalst Add, population Re Lawn '000 eq. Rs Lakhs I000 sq. Uh U E 5$.s'0$(,oervd popuslation 30r1- 32 33 34 35(Cnetip) nerved 27!2served2~23(e9-3r9 24 262L5 (1915) 26 2 8 2 62 2/3. 2/4 2/ 82 925jullAunru. 133,000 216,000 223,000 419.6 4937 1195.7 14066 315 37 194 23 536 63Anritsar 130,000 198,000 300,000 457.8 5386 1274.6 14995 352 41 231 27 423 50Ludhi.na 267,000 434,000 338,000 673.1 7919 13-18.1 15506 252 30 155 18 390 46

Conbined 3 town 530,000 848,000 861,000 1550.5 18242 3788.4 44567 293 34 183 22 440 52Moga 60,000 62,000 79,000 101.3 1192 133.2 1567( 1.69 20 163 19 169 10Patiala 113,000 114,000 120,000 112.8 1327 131.9 1552 100 12 99 12 110 13RaJPura 26,000 35,000 37,000 168.3 1909 76.6 900 647 76 481 57 207 24Bh.ttoda 36,000 42,000 63,000 116.0o 1364 143.9 1691 322 38 276 32 228 27Pathankot 39,000 39,000 32,000 11i4. 1 1344 137.4 1609 293 34 293 34 429 50

Coahind 5 town 264,000 292,000 333,000 612.6 7206 622.1 7319 232 27 210 25 189 22C=ebined 8 towns 794,000 1i,140,000 1,11002163.1 25448 4410.5 51886 272 32 190 22 370 44Itenai.tng urban areas 285,000 - 4oo'ooo 775.0 9118 1475.:0 17353 272 32 2! 370 44 2/All urban area, 1,079,000 - 1~~~~~~~,5991,00w0 2938.1 34566 5885.5 69239

2!AdatiSDal Oqsleslent popUlation servedhas bee arrived at by dividing tot5al

doesatic per capita de,nand.

2]housgh the project nds March 31, 1982, thePOPulation f igwxe for 1983 ha. been ch-sebecamie of spill-or effects.

2/Sau, veerge figures have been applied nocnebieMd for the eight towns.

INDIA


COMPARATIVE PERFORMANCE OF THE THREE TOWNS

FY 1976 - FY 1978(Rs Million)

Year to March 31 1976 1977 1978 1J A L Total J A L Total J A L Total-

INCOME STATEMENTS

Revenue 1.2 2.7 2.9 6.8 1.4 4.5 3.7 9.6 1.4 5.0 4.8 11.2Expenditure 3.4 4.3 3.3 11.0 3.9 4.6 3.8 12.3 4.3 5.1 5.2 14.6Surplus (Deficit) (2.2) (1.6) (0.4) (4.2) (2.5) (0.1) (0.1) (2.7) (2.9) (0.1) (0.4) (3.4)

% Rate of Return (5.5) (4.9) (1.4) (4.3) (5.2) 1.1 0.1 (1.3) (6.0) 1.0 1.2 (1.5)

BALANCE SHEETS

Net Fixed Assets 25.8 26.7 24.1 76.6. 31.1 28.3 35.2 94.6 40.0 31.4 46.8 118.2Current Assets 0.3 0.5 0.1 0.9 0.3 0.7 0.1 1.1 0.4 0.9 1.0 2.3Total Assets 26.1 27.2 24.2 77.5 31.4 29.0 35.3 95.7 40.4 32.3 47.8 120.5

Equity 13.7 21.1 21.0 55.8 18.8 22.8 28.1 69.7 23.6 20.1 38.1 81.8Debt 10.9 5.1 3.0 19.0 9.8 5.0 5.4 20.2 13.9 11.0 7.3 32.2Current Liabilities 1.5 1.0 0.2 2.7 2.8 1.2 1.8 5.8 2.9 1.2 2.4 6.5Total Liabilities 26.1 27.2 24.2 77.5 31.4 29.0 35.3 95.7 40.4 32.3 47.8 120.5

Debt/Equity Ratio 44/56 19/81 12/88 25/75 34/66 18/82 16/84 22/78 37/63 35/65 16/84 28/72

/ J = Jullundur

A = Amritsar

L = Ludhiana

INDIAPUNJAB WATMN SUPPLY AND SCRNAGS PROJECT

JTJULLUNIR, ARIIsAR AND UDHIANA RS I ILLION18005P. AND FLOW OF FUNDS STATzmalTS

…._._ ...... _____________________________________ -_--- -- -----…---- --- - - - - ----- -,YEAR TO MARCH 31 2975 1976 1977 2978 t979 1980 1981 1982 1983 1984

RfVENUFSJtILLONOUR t.11 1.23 1,44 1,38 4,72 6,79 10,23 13,58 32,05 36,67AMRITSAR I,90 2.73 4,50 4,96 18.57 22,31 26.52 30,14 54,34 57,53LUDHIANA 1.81 2.89 3,68 4,79 13.11 t6,94 20.72 25,27 50.08 59,37

4.82 6.8S 9,62 12,13 36,40 46,04 57.47 68,99 136,47 153,57EXPENSESJULLUNDUR 1I40 t,80 e,00 2,31 4.25 4,66 5,61 7,16 10,44 12,05AMRITSAR 2.80 3,20 3,30 3,72 9.59 9,15 10.71 12, 2 16,52 18.45LUDHIANA 2.20 2.60 2,90 3,51 7,80 R,06 8,76 10,85 15.15 18,16

6,40 7.60 8,20 9,54 21,64 21,17 25,08 31,13 42,11 48,66DEPRECIATIONJULLUNDUR 0.71 0,71 0,91 1,11 1.26 1,50 2,28 3,63 5,28 6,6Q)AMRITSAR O.80 0.82 0,89 0,95 1,01 1,31 2,20 3,98 5,28 6,69LUDHIANA 0.52 0.52 o,64 0,93 1,26 J,83 3,16 4,93 6,63 8,01

2.03 2,lt 2,44 2,99 3.53 4,64 7,64 12,14 17,19 21,30INCUME BEFORL INTEREST -A.61 -2.86 -1,01 -2,40 11,23 19,53 24,75 25,7Z 77,17 83,61==-===== ====:==S: ==:==7= :===72= ==:=5=== =5z:=: :-=:=Tw ==S;mzSf ==m=;=:z ==5=::=INTERNALLY GENERATED FUNDS -1.58 -0,75 t,42 1.59 14,76 t4,17 32,S9 37,86 94,36 104,91

LUNG TERM DE8T SERVICEJULLUNDUh 0.70 0,90 1,00 2,00 2.21 3.84 6.43 12.64 17.50 20.35AMRITSAR 0.60 0,00 0,90 0,90 1.72 3.62 6.22 10.67 15.59 18.95LUDHIANA 0,40 0,30 0,40 1,30 1.96 4.45 7.60 14.65 19.25 20.8310TAL DELT SERVICE 1 . 70 1 . 80 2 .3 4. 20 - 1 Žl9 2-*3 .WORKING CAMfTAL NEEDS (4) 0.0o -0,30 -1.40 0;30 9.26 12.9 3-.OTHER ASSLTS (+) AND l IAB. -3,5R -22.75 -14,48 -15,41 0,00 0,00 0,00 0,00 0,00 0.00AVAILABIE FON INVr-SIM[NT 0. 00 9. 50 15 .00 12.50 -0,39 -0,70 -0.97 2,26 38.91 38.91

PROJECT INVESTMEN1JIULLUNDUR 0.00 0.00 0,00 0,00 12,96 37,99 51.71 581,85 0,00 0,00AMRITSAR 0.00 0.00 0.00 0,00 17,09 42,99 50,48 63,65 0,00 0.00LLIDHIANA 0.00 0,00 0,00 0,00 26,98 57,32 57,64 57,17 0.00 0,00

0,00 0,00 0,00 0,00 57.03 137,30 159,83 179,67 0,00 0,00OTHER WORKSJULLUNDUR 0.00 3,50 6,20 lO,Ou 0,00 0,00 0,00 0,00 30,70 30,70AMRITSAR 0,00 3t80 2,50 4,00 0,00 0,00 0,00 0,00 29,70 29,70LUDHIANA 0.00 7,

8j 11,80 12,50 000 0,00 0, oo 0,00 36,70 36,70

U.00 13.10 20,50 26,50 0,00 0,00 0,00 0,00 97,10 97,10…====5= ====5=5= ::u:::= :S::x :S: :::-5:== = == 5= :==::55 ::-=-==: :::==::: =55:55==TOTAL INVESTMIENT 0.90 13.20 20,50 26,5u 57,03 137,30 159,83 1/9,67 97,10 97,10

NET Tll BE FINANCLED 0.00 3.60 5.50 14.00 57.42 138.00 160,80 177,4t 58,19 50-19

LONG TERM DL8TJULLUNDUR 0,00 0,80 0,00 5,00 8,78 25,74 35,20 39t8t 18,140 1t,40AMRITSAR 0,00 1,90 0,40 6,50 11,75 28,77 34,67 42,23 17,80 17,80LUDHIANA 0.00 0,90 3,00 2,50 18.54 39,33 39,53 37,59 22,00 22,00

TOTAL BIJR4OWING 0,00 3,60 3,40 14,00 39,07 93,84 109,40 I11,63 98,20 58,20CONTRIBUTIONSJULLUNDUR o.oo o.oo 00 0,0o 0 4,17 12,22 16,63 18,92 0,00 0,00AMRITSAR 0,00 0,00 2,10 0,00 5,50 13,51 16,23 20,'7 0,00 0,00LUDHIANA 0.0o 0.00 0,00 0O00 8,6R 18,43 18,53 18,39 0,00 0,00

0°00 0.00 2,10 0,00 18.5 44,16 51,39 57,78 0,00 0,00=T====== ======== ====55== ==1===0= 5===7== ======3 = ==3=0 1 8 ===:===: ::=====: 8=======1TOTAL FINANCLD o .00 3 .6o 5.%O 14.00 S7,42 1 3&,O( 160,8o t77,41 58,19 58 .19

INflIAiPUNJAB WATER SUPPLY AND SEWRAGE PROJET

RS MILLIONJULLUNaJR, AMRITSAR AND LUDHIANA

BALANCE SHETS

YEAYR TO MARCH 31 1975 1976 1°77 1978 1979 1980 1581 1982 1983 1984

NET FIXED ASSETSJULLlUNDIJR 23.0 25,A2 31,10 37,00 3R,51 50,89 86,71 134,72 187,55 211,64AMRITSAR 25.70 2?6.6A 2R,30 29,04 30.4? 46,41 86,19 132,77 191,18 214,20LUDHIANA 16.78 1o26 23,43 34,30 43,0? 69,31 126,79 119,53 228,10 256,79

65,97 o8.76 82,83 100,34 111,95 166,61 299,69 447,02 606,83 682,63WORK IN lPRlGRESSJULLUNDUR o*oo 0 .00 0, 00 3,00 13o20 37,30 50,9u -)8,10 30,70 30,70AMRITSAR 0V00 0.00 0,00 2,30 17,00 41,70 50o20 63,70 29,70 29,70LUDHIANA 0.00 7,O0 11.80 12,50 29.50 58,70 5S,7o 55,20 36,70 36,70

0,80 70,0 1,2 17,800 297.7 P 156,8Q 177 00 97, 9 0CURRENT ASSETS 0.80 0790 1,10 2,26 17.975 34.o 52.05 5v.73 74.Y7 914

r =z=z== =M=2: ==_= *=-= = =:u:z zz==.::=: =xz=_::Z =:=X:z:2 Xz:sXZ-- sz====

TOTAL ASSETS 66,37 77,46 95,73 120,40 189,40 338.97 508.54 682.75 77b,90 871.67

EQUITY 48. 27 55.76 69.73 81. 74 107.43 161.40 219.29 213.69 315.44 158.05

LONG TERM DEBTJULLUNDUR 10Q10 10,90 9,80 13,90 21,69 4 6, 43 78,13 1J1,87 12'I,19 136,50AMRITSAR 3.70 5.10 5,00 11,00 22,15 50,32 83,29 t21,25 132,72 144,20

LUDHIANA 2.30 3.00 5,40 7,30 25.24 64,18 100,04 131,00 146,26 161,53

16.10 19.00 ?0,20 32,20 69,08 160,93 261,46 364,12 403,17 442 23CUJRR£NTJ1ALILITIES 2,-, 2,70 5,80 6,46 12.89 16,64 27.79 44,94 60429 71,39

:=_:=rc **:===== 5=:===t: =-=:= == z=3_==== =====5gS ~ Z==x==z :==::=Z= ==zz:z2= s 2t==am=

TOTAL LIAEIILlTIES 66.37 77.46 95,73 12,40 189.L40 338.97 508.54 682.75 778.90 871.67

A~ODBiPi!T0N ~ -- -- -- T - 32.21 34.27% OPERTING RATIO 132. 78 110. 95 805. 24 85. 73 59. 146 47. 51 43. 64 45. 12 30. 86 31.69

DEBT/BQUITY RATIO 25/75 25/75 22/7R 28/72 39/61 5o/5o 54/4 6 57/1 4 /55/45DEBT SERVICE RATIO (TTMES) -- -- 0:62 0. 38 2. 48 1 . .0i i. t 1.74

% RATE OF RETURN ON UNREVALUEDASSET'S 1/ - -- -- -- -14.1 29

% RATE OF RETURN1 ON REVALUED 14 .64 12 .97ASSETS / -- -- -- -- -- -- -- 9 .18 9 .16

I/ Asset base to be properly valued and recorded during project implementation (see para. 5.o6).

INDIA

PUNJAB WATER SUPPLY AND SEWERAGE PROJECTLNCuME ITAlIMEZIb - __uATU_ OPrnALuL RS MILLIONS

-------------------------------------------------------------------------__--__-----------------------------------------

YEAR TO MARCH 31 1978 1979 1980 1981 1982 1983 1984-------------------------------------------------------------------

__--------__-----------------------------------------

REVENUEEngineering costs charged to construction 10.59 20.70 30.62 32.50 35.04 30.00 30.00Storage charges recovered from contractors 0.03 0.40 4.26 4.27 4.20 4.20 4.20

Total Revenues 10.62 21.10 34.88 36.77 39.24 34.20 34.20EXPENDITUREWages, etc. 8.52 19.85 26.03 28.39 30.50 32.26 32.98Income before depreciation 2.10 1.25 8.85 8.38 8.74 1.94 1.22Depreciation 0.70 0.96 1.04 1.22 1.38 1.48 1.58,,come before interest 1.40 0.29 7.81 7.16 7.36 0.46 (0.36)I terest -- 0.04 0.15 0.30 0.38 0.37 0.35

Net Surplus 1.40 0.25 7.66 6.86 6.98 0.09 (0.71)

INDIAPUNJAB WATER SUPPLYTAND SEWERAGE PROJECT

FLOW OF FUNDS - BOARD OPERATIONS RS MILLIONS

…----------------------------------------------------------------__----------__-----------------------------------------YEAR TO MARCH 31 1978 1979 1980 1981 1982 1983 1984

…__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

SOURCES OF FUNDSIncome before depreciation 2.10 1.25 8.85 8.38 8.74 1.94 1.22Government equity contribution 17.50 20.00 20.00 22.50 -- -- --GOP loan -- 0.85 1.70 1.70 -- -- --Increase in payables 2.66 0.72 0.96 0.39 0.35 0.47 0.51

Total Sources 22.26 22.82 31.51 32.97 9.09 2.41 1.73APPLICATION OF FUNDSPurchase of assets 2.68 0.85 1.70 1.70 1.00 1.00 1.00Loan amortization -- -- -- -- 0.18 0.18 0.18Loan interest -- 0.04 0.15 0.30 0.38 0.37 0.35

Total Debt Service -- 0.04 0.15 0.30 0.56 0.55 0.53Decrease in inventories __ (0.84) (0.50) (0.50) -- -- --Increase in receivables -- 20.00 20.00 22.50 -- -- --

Total Applications 2.68 20.05 21.35 24.00 1.56 1.55 1.53Cash Balance 19.58 2.77 10.16 8.97 7.53 0.86 0.20

" B/F -- 19.58 22.35 32.51 41.48 49.01 49.87" C/F 19.58 22.35 32.51 41.48 49.01 49.87 50.07

INDIAPUNJAB WATER SUPPLY AND SEWERAGE PROJECT

BALANCE SHEETS - BOARD OPERATIONS RS MILLIONS

----------------------------------------------------------------- __----------__----------------------------------------

YEAR TO MARCH 31 1978 1979 1980 1981 1982 1983 1984------------------------------------------------------------------- __--------__----------------------------------------

ASSETSFixed assets in operation 9.63 10.48 12.18 13.88 14.88 15.88 16.88

Less: Accumulated depreciation 0.70 1.66 2.70 3.92 5.30 6.78 8.36Net Fixed Assets 8.93 8.82 9.48 9.96 9.58 9.10 8.52

CURRENT ASSETSCash and investments 19.58 22.35 32.51 41.48 49.01 49.87 50.07

Inventories 15.84 15.00 14.50 14.00 14.00 14.00 14.00Receivables -- 20.00 40.00 62.50 62.50 62.50 62.50

Total Current Assets 35.42 57.35 87.01 117.98 125.51 126.37 126.57

Total Assets 44.35 66.17 96.49 127.94 135.09 135.47 135.09

EQUITY AND LIABILITIESEquity 40.29 60.29 80.29 102.79 102.79 102.79 102.79

Operational surplus 1.40 1.65 9.31 16.17 23.15 23.24 22.53Total Equity 41.69 61.94 89.60 118.96 125.94 126.03 125.32

Long term debt -- 0.85 2.55 4.07 3.89 3.71 3.53Accounts payable 2.66 3.38 4.34 4.73 5.08 5.55 6.06Current maturities -- -- -- 0.18 0.18 0.18 0.18

Total Current Liabilities 2.66 3.38 4.34 4.91 5.26 5.73 6.24

Total Equity and Liabilities 44.35 66.17 96.49 127.94 135.09 135.47 135.09

ANNEX 1T24

INDIA


Tariffs

The tariffs vary from town to town but the majority are based on

part or all of the following:

1. Water Charge per MonthOne Tap Each Additional Tap

(a) Flat Rate Rs Rs

Domestic 1/4" Connection 5.00 1.003/8" " 6.00 1.001/2" " 8.00 2.003/4" " 17.00 3.00

III it 20.00 5.00Industrial/Commercial 3/8" 12.00 5.00

1/2" " 15.00 6.00Mosques, Temples, Hospitals Half the Domestic Rate

(b) Metered Rate Rs

Domestic per m3 0.35Industrial/Commercial " 0.50Minimum Charge per month 5.00Meter Rent 1/4" " 0.62

3/8" " 0.75

1/2" " 1.003/4" " 1.25

1" " 1.50

2. SewerageFlat Rate per Seat " 2.00

ANNEX 2Page 1

INDIA


Assumptions for Financial Projections

Inflation

1. India's rate of inflation has followed the general pattern of therest of the world, climbing to 7% in 1972 and 17% in 1973 to peak at 28% in1974 and dropping right back again to about 5% in 1975 and to a negative 5%in 1976. The present annual rate of inflation is about 8% to 10% and thefinancial projections are based on inflation rates of an average of about7.5% a year. It is upon this rate that the calculations for the proposedcash generation covenant (see para 5.06) have also been made.

Exchange Rate

2. The present exchange rate Rs 8.60 = US$1 is assumed to continuethroughout the project period.

Population and Demand

3. The population and demand figures set out in Chapter III have beenused for projection purposes.

Form of Financial Projections

4. Although the three towns Jullundur, Amritsar and Ludhiana havebeen fully appraised, for the sake of brevity the financial statements havenot been set out in their entirety in this report. Instead, the ninefinancial statements have been consolidated into two, namely, one for Incomeand Flow of Funds Statements and one for Balance Sheets. In these statementsthe detail for each of the three towns is shown separately (see Annex 1,tables T19 and T20).

INCOME AND FLOW OF FUNDS STATEMENTS - THREE TOWNS (Annex 1, table T19)

Operating Revenues - Three Towns

5. Operating revenues have been extracted from the cash records of theMCs for the three years FY1974-75, 1975-76 and 1976-77 and from the budget forFY1977-78. For the projections the revenues are based upon the population anddemand figures in Chapter III and Annex 1 (tables T2 to T9) and the tariff setout in Annex 1 (table T24) plus sewerage charges equal to water charges. In

ANNEX 2Page 2

FY1982-83 after project completion the tariffs are required to generatesufficient internal cash to meet the cash generation covenant. For projec-tion purposes various tariff increases between 50% and 100% have been assumedbut no income has been assumed for the additional sources described in para5.05 as these are undefined at the present time.

Operating Expenses - Three Towns

6. The operating expenses for FY1974-75, 1975-76 and 1976-77 have been

extracted from the cash records of the MCs. The FY1978 figures are from theMCs budgets for that year. Forecasts for FY1978-79 to FY1983-84 were made onthe following assumptions:

(i) Wages: The present levels are reasonable and are expectedto be maintained in real terms. To allow for inflation,for new staff and for existing staff wage increments, in-creases of 15% have been made in each year except FY1978-79and FY1981-82 when an additional 10% has been included. Thisis to cover the increased staff necessary for the start upof WSSB on water and sewerage operations in FY1978-79 andthe increase to full operational capacity on completionof the project in FY1981-82.

(ii) Chemicals: The FY1977-78 price of chlorine used is is 2.00

per pound and 456 pounds are used for each million m ofwater produced. The cost of chemicals is therefore basedupon the total quantity of water produced at this priceescalated at 7.5% per year.

(iii) Power: The expenditure on power is based on the FY1977-78budgeted figure increased each year in proportion to waterproduction and escalated at 7.5% per year.

(iv) Materials: These are materials used for operational main-tenance and are projected on the basis of 0.75% of thegross value of fixed assets in service.

(v) Fuel and Oil: This expenditure is escalated as for power(see (iii) above).

(vi) Other: This expenditure is escalated as for wages (see (i)above).

(vii) Bad Debts: In the past no provision has been made for baddebts and these are reported to be minimal due to the sat-isfactory powers for enforcement of payment. However, withthe considerable increase in charges that will be necessaryin the next few years it is considered prudent to make an

ANNEX 2Page 3

allowance for bad debts and this has been provided at therate of 25% of billings in FY1978-79, 15% of billings inFY1979-80 and 10% of billings in each year thereafter.

Depreciation

7. Depreciation rates varying between 0% for land to 20% for vehicleswill be used for accounting purposes. For projection purposes an overallrate of 3% is used for the total of assets in service at the beginning of theyear and one-half of this rate is used for assets brought into service duringthe year.

Long Term Debt Service

8. These are the amounts of principal and interest paid each year inrespect of the loans outstanding (see para. 11 below).

Project Investment

9. These are the amounts of project investment in the three townsduring the project period FY1978-79 to FY1981-82 as follows:

Loan AmountRs Million

Jullundur 161.51Amritsar 173.21Ludhiana 199.11

Total 533.83 (US$ 62.1 million)

Other Works

10. These are the amounts invested in the three towns both beforeand after the project.

Long Term Debt

11. Existing loans which are small, are repayable over differing periodswith various rates of interest up to 8%. The new loans for the project arefrom GOP for a total of Rs 326.8 million at 8-1/2% for 25 years with a 3 yeargrace period and Rs 130.0 million from LIC at 8-1/2% for 25 years with a3 year grace period. For the three towns the GOP loan amounts to Rs 258.8million (50% of project cost) and the LIC loan amounts to Rs 104.0 million(20% of project cost). Future loans for the three towns in FY1982-83 andFY1983-84 amounting to Rs 116.40 are expected to be provided by GOP on thesame terms as the loan for the project. Credits for the poorer sections ofthe community are to be made for connection costs. The repayment terms areyet to be agreed and no income has been included in the projections.

ANNEX 2Page 4

Contributions

12. The MCs of the three towns are expected to make capital grants tothe project work of about Rs 170.9 million or about 32% of the project cost.

BALANCE SHEETS - THREE TOWNS (Annex 1, table T20)

Net Fixed Assets

13. Net fixed assets are the historical cost of assets less the depre-ciation described in para. 7 above.

Work in Progress

14. The total of work in progress at the end of each year is thevalue of work carried out during the year and which is capitalized andbrought into service in the following year.

Current Assets

15. The items included under this head with totals shown for FY1983-84,the last projection year, are as follows:

Item Jullundur Amritsar Ludhiana Total--------------- Rs Millions ----------------

(a) Cash, banks andinvestments 1.44 12.92 15.87 30.23

(b) Accounts receivable 6.12 9.61 9.91 25.64

(c) Inventories 0.85 1.25 1.00 3.10

(d) Cash surplus -- 32.97 -- 32.97

Total 8.41 56.75 26.78 91.94

The assumptions used in respect of these headings are as follows:

(a) Cash, banks and investments are amounts generated from theoperations described earlier and are adequate. A cashdeficiency is anticipated in Jullundur but this is met bya cash advance from the MC;

(b) Accounts receivable are calculated as two months billings; and

ANNEX 2Page 5

(c) Inventories are calculated as 50% of the maintenancematerials used during the year.

Equity

16. The equity is composed of three items as follows:

(a) The net value of the assets and liabilities accumulatedup to April 1, 1978.

(b) Capital grants by the MCs to project construction (seepara. 4.13) and

(c) Accumulated surpluses less deficiencies on operations.

Long Term Debt

17. This is explained in para. 11 above.

Current Liabilities

18. These are made up of the following items:

(a) Accounts payable are assumed to be one month (1/12) of theyear's capital expenditures and of the year's operationalexpenditures before depreciation.

(b) Deposits are security deposits made by consumers whentaking a water connection. The amount is calculated fromthe number of new connections expected to be made.

(c) Current maturities are the amounts of loans due for repay-ment within the next twelve months.

INCOME STATEMENTS - BOARD OPERATIONS (Annex 1, table T21)

19. These statements along with those in Annex 1, tables T22 and T23relate to the operations of WSSB on the design and supervision of constructionin the eight towns and the rest of the urban sector in Punjab State.

REVENUE

20. (a) Engineering costs are sums charged to construction at 15% ofthe total project cost each year.

(b) Storage charges are charges made to contractors on the basisof 3% of the value of the materials which are stored forsafe keeping by WSSB on behalf of the contractor.

ANNEX 2Page 6

EXPENDITURE

21. (a) Wages are taken from WSSB budget for FY1977-78 and thenescalated on the basis of the value of the constructionprogram and the rate of inflation.

(b) Storage costs are assumed to be 60% of storage income(item 20b);

(c) Rent is the budgeted figure for FY1977-78 escalated at therate of inflation.

(d) Other expenses are the budgeted office expenses escalatedat the same rate as wages.

(e) Depreciation is taken at a rate of 10% as most of theassets are plant with an expected life of 10 years.

FLOW OF FUNDS STATEMENTS - BOARD OPERATIONS (Annex 1, table T22)

22. (a) Government Equity Contributions are amounts provided byGOP for the Board to commence operations in FY1977-78 andfor it to continue through the project implementationperiod.

(b) The GOP loan is for WSSB to purchase plant and equipment foruse within the urban water supply sector and which is notdirectly allocable to any one particular town. This plantand equipment is included in the project.

(c) Increases in payables are assumed on the basis that payableswill equal two months operating cost.

(d) Purchase of assets is the purchase of plant and equipmentdescribed in para. 22(b) above.

(e) Loan amortization and interest is the total debt servicein respect of the GOP loan described in para. 22(b) above.

(f) Decreases in inventories is due to the expected reduction ininventory levels during the construction period.

(g) Increases in receivables are for construction work in progressand equipment at the end of the year which has not yet beenpaid for by the individual MCs.

ANNEX 2Page 7

BALANCE SHEETS - BOARDS OPERATIONS (Annex 1, table T23)

23. (a) Fixed assets in operation are those taken over by WSSBin FY1977-78 plus the new plant and equipment purchasesdescribed in para. 22(b) above.

(b) Depreciation (see para 21(e)).

(c) Cash and investments are the accumulation of cash sur-pluses resulting from WSSB's construction supervisionprogram.

(d) Inventories are for the stock of materials necessary forWSSB's work on construction.

(e) Receivables (see para. 22(g) above).

(f) Equity (see para. 22(a) above).

(g) Operational surplus is the accumulation of WSSB sur-pluses from construction supervision.

(h) Long term debt (see para. 22(b)).

(i) Accounts payable (see para. 22(c)).

(j) Current maturities are the amounts of GOP loan repayablein the next twelve month period.

24. All other capital costs relating to civil works and equipment pur-chases for the eight towns and all other towns for which WSSB is carrying outconstruction work will be accumulated each year by WSSB. At the end of eachyear the accumulated costs plus the appropriate supervision cost and thecorresponding liability for all these costs will be transferred to each townand accounted for in the financial statements of each town.

ANNEX 3

INDIA


Additional Information Available in Project File

A. Legal Documents and Sector Report

Al The Punjab Water Supply and Sewerage Act 1976

A2 The Punjab Municipal Corporation Act 1976

A3 The Punjab Municipal Act 1911

A4 Punjab Water Supply and Sewerage Sector Study

B. Studies

B1 The Punjab Water Supply and Sewerage Project

Revised Project Report (January 3, 1977)

B2 Punjab Water Supply and Sewerage Project Reports for

Jullundur, Amritsar, Ludhiana, Moga, Patiala,

Rajpura, Bhatinda and Pathankot.

B3 Financial Analysis Reports for the Three Towns (November 1977)

C. Selected Working Papers and Other Documents

Cl Data Compilation prepared by WSSB (November 1977)

C2 Full financial projections for the three towns (November 14, 1977)

C3 Terms of References for consultant studies


WATER SUPPLY AND SEWERAGE BOARDTENTATIVE ORGANIZATION

BOARD ~~EXTERNALI BOARD AUDIT

I CHAIRMAN ]

E MANAGING INTERNALDIRECTOR AUDIT

DESIGN & PLANNING CONSTRUCTION& _ _

DEPARTMENT WORKS OPERATION FINANCIAL ADMINISTRATIVECHIEF ENGINEER CHIEF ENGINEER MANAGER SECRETARY

CIRCLES _

SUPERINTENDINGPROJECT EVALUATION ENGINEERS PROJECT 7

AND MONITORING PROJECT PERSONNELDIVISION jF INANCE j_________

= DESIGN 1 ACCOUNTING OFFICE= DIVISIONS _ CONSTRUCTION EXPENDITURES _ ADMINISTRATION

_ _ _ _ DIVISIONS

PROCUREMENT ACCOUNTINGDIVISIONS OPERATION INCOME LEGAL

l X DIVISONS l l

TRAINING

World Bank - 18363


CONSTRUCTION IMPLEMENTATION SCHEDULE

CALENDAR YEAR 1977 1978 1979 1980 1981 1982 83

DAFISCALYEAR 1978 1979 1980 1981 1982 1983

INDIA FISCAL YEAR 1978 1979 1980 1981 1982 1983

QUARTERS 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

DETAILED DESIGN--- m- - -----

SUB-PROJECT EVALUATION

PROCUREMENTmm------- -----

CIVIL WORKS _ _ _ _ _ _ _ _ __

INSTALLATION OFEQUIPMENT AND _ _ _ _ __ _MATERIAL

COMMISSIONING _ _ __ _

World Bank - 18364

IBR I 3355

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PUNJAB WATER SUPPLYAND SEWERAGE PROJECT

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PUNJAB WATER SUPPLY

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