World Bank assisted Karnataka Urban Water Sector Improvement Project (KUWASIP) by S.Poornachandra
description
Transcript of World Bank assisted Karnataka Urban Water Sector Improvement Project (KUWASIP) by S.Poornachandra
11
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
World Bank assisted
Karnataka Urban Water Sector Improvement
Project
(KUWASIP)by
S.Poornachandra AEE (UWS),
KUIDFC, BANGALORE.
22
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
W.B. Loan No.4730-0-IN
Project Cities in KarnatakaProject Cities in Karnataka
33
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Objectives of the Project: Reforms & service improvements through Private Sector
Participation (PSP) in the water sector in Karnataka. Implement the strategy enunciated in the Urban Drinking
Water & Sanitation Policy of GoK. Phased approach.
Towns selected: Belgaum, Gulbarga & Hubli-Dharwad (Phase I). Continuous water supply in selected Demonstration Zones
of Phase I cities. Scaling up to the rest of the areas in the three cities and also
to more cities.
Introduction Introduction
44
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Project DetailsProject Details
Project Cost: World Bank loan -Rs. 182.00 crores GoK contribution -Rs. 55.00 crores Total project cost -Rs. 237.00 crores
Component wise cost:• Technical Assistance studies -Rs. 11.75 crores• Investments [P.I + D.Z + Others] -Rs. 217.40 crores• Incremental operating costs -Rs. 8.15 crores
All amount passed on to the beneficiary cities as grant by GoK, due to pilot nature of the project.
Project period: Four years: 2004-2008 (proposed to be extended up to March
2010).
55
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Project DetailsProject Details Project Components:
Technical Assistance (TA) studies Investments: (a) demonstrating continuous (24x7) water supply
through initial PSP in selected demonstration zones [D.Z] of the three ULBs ; (b) Bulk water improvement related investments (Priority Investments [P.I]) including critical/urgent works to improve supply frequency.
Executing Agencies: Technical Assistance studies-consultancy firms selected by
competitive bidding. Priority Investments-KUWS & DB. Demonstration project-private entity called ‘Operator’. Quality Certification:
• All Works & Operator’s performance: Technical Auditor; • Priority Investments: Third Party Inspection Agency.
66
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
1. Establishment of Karnataka State Urban Water Supply & Sanitation Council (KSUWSC)
2. Review and Establishment of Regulatory and Legal Framework
3. Water and Sanitation Sector Investment & Tariff Frameworks
4. Strengthening of Urban Water Supply and Sanitation (UWSS) Service Delivery in ULBs
5. Creation of Water and Sanitation Information System (WASIS) and Benchmarking of Service Provision
6. Tariff Design for Continuous Water Supply
Technical Assistance Studies
77
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Key aspects of ProjectKey aspects of Project
Core of the project is a performance based contract with private sector firm for rehabilitation, operation and management of water service in small areas in Belgaum, Gulbarga and Hubli-Dharwad (called Demonstration Zones).
The role of private sector is limited to demonstration of improved service. Assets remain with ULBs, staff continue on ULB rolls though working under PSP, no investment risk to PSP, no role in tariff fixation & bill collection (though the PSP would develop a computerized billing & collection software system)
Fee based contract.
88
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Key aspects of ProjectKey aspects of Project
This is the first such structured initiative in India, coming to fruition after several years of work.
Extensive consultations with all stake holders during project preparation; ULB support by resolutions already passed.
Extensive consultations and reviews for drafting the contract/bid document; no previous model document, even with Bank, to follow.
First service improvement, then tariff hike.
99
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Operator Contract period: 3 ½ years Single contract for all three ULBs Single contract between five parties Vs Operator Distinct obligations for all parties Vs the Operator KUIDFC authorized to act on their behalf vis-à- vis the Operator Prime contractual responsibility – Operator
Contract DetailsContract Details
1010
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Performance based contract. Total contract price Rs. 28 crore (Rs. 22.40 crore Remuneration;
Rs. 5.60 crore Max. Bonus). 60% of Rs. 22.40 crore i.e., Rs. 13.50 crore Fixed Remuneration: 40% of Rs.22.40 crore i.e., Rs.8.90 crore Performance
Remuneration. Fixed Remuneration: 15 equal quarters 12% of Performance Remuneration, if all targets achieved, 18
months after effective date; 28% of Performance Remuneration spread over two year Operation & Management Period, if targets achieved.
Penalties (max. 10%) for failure; termination.
Contract Price DetailsContract Price Details
1111
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Preparatory Period A - Survey, Design, Estimation; Preparation of Draft/Final Investment Programme.
Preparatory Period B - Selection of sub-contractors (contract document preparation, tender process management); meeting performance targets for Preparatory Period B.
Demonstration of performance targets in preparatory period B and O & M period.
Customer grievance redressal.
What the Operator will do?What the Operator will do?
1212
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Operator Performance TargetsOperator Performance Targets
At the end of Implementation Period:
To demonstrate Continuous Pressured Water Supply to every Customer in each Demonstration Zone. Metering of minimum of 90% property connections. Maintenance of computerized records of readings. Reduction of the losses to 30 litre / connection / day / metre pressure in each Demonstration Zone. Operation on a 24 hour basis of the Customer service centers established at Demonstration Zone.
1313
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Operator Performance TargetsOperator Performance Targets
During O&M Period: Continuous Pressured Water Supply must be provided to every
connected property and stand-post. Emergency stoppages shall not exceed twelve hours and no more than an average of four emergency stoppages in a period of 12
months. 100% of all property connections and public stand-posts must be metered. 100% of Customer meters must be read and billed every month. Losses must be reduced to 20 litres per connection / day / metre
pressure by the end of 24 months. System connection requests must be fulfilled within 7 days. All Customer complaints to be responded to within 24 hours and redressed within 7 days of such complaint. Leaks appearing at the surface must be repaired within 24 hours of notification/observance.
1414
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Services to the Urban PoorServices to the Urban Poor
Defined as those living in houses < 600 Sq. ft. built up area. No deposit for water connection. Minimum lifeline supply of 8000 litres per household. Provide water free of charge through public kiosks to
vulnerable sections with involvement of NGOs and / CBOs.
1515
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
8 Priority Investment works for augmenting bulk water supply completed and commissioned.
Laying of distribution network in 5 Demo Zones – completed. House service connections - completed. All the five DZs operationalised and O&M phase commenced on
3rd April 2008. Technical Assistance Studies - two completed, four in progress. Social Intermediation & Communication activities are being
conducted. Expenditure as on 31st January 2009 – Rs 172 Crores.
Status of the Project Status of the Project
1616
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Demonstration ProjectDemonstration Project
Sl.No.
Demo Zone No. of Wards. HSCs Target
(Nos.)HSCs Achievement
(Nos.)
1.1. Belgaum (South) 5 3610 4216
2.2. Belgaum (North) 5 3510 3909
3.3. Hubli 4 6410 7258
4.4. Dharwad 4 4900 5581
5.5. Gulbarga 11 4020 3201
6.6. Total 29 22450 24165
1717
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
First instance of a new model of PSP in water service -challenge & opportunity.
Pressures of differing expectations - even of partner agencies. Impatience / unrest of non demo zone residents in chosen cities. Contract model & document format chosen - grey areas. Conservative mindset of client staff to many issues, differing
from conventional contracts. Curbing un-authorized / illegal connections and transition from
flat to volumetric tariff.
ChallengesChallenges
1818
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
1919
KUWASIPKUWASIP
Karnataka Urban Infrastructure Development & Finance CorporationWorking towards better urban living
Thank you