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Rajasthan Urban Sector Development Investment
Programme
1. Background :
The six major towns of Rajasthan state were successfully supported by
development of infrastructure facilities with the financial assistance
of Asian development bank. Need for similar support in remaining towns
was equally visualized and accordingly fifteen towns were selected for
taking up similar works under a new program named RUSDIP, with the financial
assistance from Asian Development Bank (ADB) under Multi Tranche Financing
Facility (MFF). The fifteen selected towns are Alwar, Baran, Barmer,
Bharatpur, Bundi, Chittorgarh, Churu, Dhaulpur, Jaisalmer, Jhalawar-Jhalarapatan,
Karauli, Nagaur, Rajsamand, Sawai Madhopur and Sikar.
2. Project Objective :
Rajasthan Urban Sector Development Investment Program (RUSDIP) vision
is to optimize social and economic development in urban Rajasthan. The
vision will be achieved through policy reforms to strengthen urban management
and support for priority investments in urban infrastructure and services
required to meet basic human needs, improve quality of life, and stimulate
sustainable economic development. RUSDIP will: (i) redress immediate
infrastructure and service deficiencies to meet basic service delivery
norms; (ii) act as a medium through which policy reforms are effectively
executed; and (iii) provide maximum demonstration effect for replication
in other cities of the State.
3. Investment Program Impact and Outcome
:
The impact of the Investment Program is improved urban infrastructure
and services in district headquarters and tourist towns to support their
growth potential and reduce poverty. The expected outcomes of the Investment
Program will be improved urban environmental and public health, and
improved living conditions for 1.6 million people (Census 2001) living
in the identified 15 towns in Rajasthan, as well as for increasing number
of tourists.
4. Sectors covered under RUSDIP:
The Investment Program, as per the agreed framework, is designed to
addresses the urban infrastructure improvement, slum improvement, civic
infrastructure, institutional strengthening and financial sustainability
by supporting the infrastructure development in following sectors;
a. Water supply
b. Waste water Management
c. Solid Waste Management
d. Urban Transport and Roads
e. Social Infrastructure
f. Support Infrastructure for Cultural Heritage
g. Urban Drainage
5.
Project Execution:
The Executing Agency (EA) for the Investment Program is Local Self
Government Department (LSGD) under the Urban Governance Department of
Government of Rajasthan. The Administrative Reform Department, GoR,
has issued order vide no. F6(45) AR/ Gr. 3/99 dated 06.10.2006 to this
effect.
6. Financing Facility, Facility Amount
& Financing Plan :
The Facility of US$273 million from the ordinary capital resources (OCR)
of ADB will be provided to the GOI. Final terms of conditions will be
determined in the context of each loan, and be based on prevailing policies
of ADB. Financing made available under each loan will be provided under
ADB's London Inter-Bank Offered Rate (LIBOR)-based. ADB also provides
flexibility in terms of repayment and interest swaps during the financing
period. Repayment schedules can also be structured for each loan, in
essence to match the needs of each batch of sub-projects with their
cost recovery and sustainability profiles. The financing plan agreed
between, ADB, GoI & GoR is as under:-
|
Source
|
Amount (US$ million) |
% Share |
|
Asian Development Bank
|
273.0 |
70 |
|
GoR and other agencies
|
117.0 |
30 |
|
Total
|
390.0 |
100 |
GOI will pass down the total loan amounts to the State of Rajasthan,
on the same terms as stated in the ADB loans. Period of Utilization
of loan amounts shall be available up to December 2014 for the last
Periodic Financing Request (PFR) and the Estimated Investment Program
Completion period shall be up to June 2014.
7. ADB's Board Approval
The Board of Directors of ADB in its meeting held on 31st Oct-07, discussed
and approved the total loan of US$ 273 million under Multi-tranche Financing
Facility (MFF) for the Investment Program with a total estimated cost
of US$ 390 million over a 7-year period to finance the infrastructure
investments and capacity development to support on-going urban institutional,
financial and service delivery reforms
Executive Director ADB Board vide letter dated 31.10.2007
addressed to Chief Secretary, GoR, conveyed this approval.
8. RUSDIP Tranche-I Loan:
The first Tranche of US$75 Million is agreed by ADB with loan component
of US$ 60 million. Loan
Agreement and Project
Agreement for RUSDIP Tranche-I loan(Loan No. 2366-IND), amounting
to US$60 million, were signed on 17th Jan-08 at DEA-GOI, New Delhi and
made effective by ADB from 28th
Feb-08.
9. RUSDIP Tranche-II loan:
The second tranche of US$ 219 M is agreed by ADB with loan component
of US$ 150 Million. Loan agreement and Project agreement for tranche-II
loan (Loan no 2506-IND) amounting to Rs. 150 Million US$ were signed
on 18-Feb-2009 and made effective by ADB from 20 April 2009..
10. RUSDIP Tranche-III loan under:
The target date for completion of loan processing is in this Calender
year. The RUIDP has preliminarily identified works for consideration
under Tranche-III and DPR preparation is in advance stage. After identification
of suitable sites proposal for acquisitions of necessary land are taken
up and processed with concerned agencies. All loan consultants are in
place and working for the completion of task. The
loan and Project Agreement has been signed on 17th March 2011.
11. Approval by State Cabinet:
The State Cabinet in its meeting held on dated 5th
March 2008 approved RUSDIP, in three tranches, with loan financing
from ADB as detailed below:
| Tranche |
Loan Amount |
State +
ULB share
|
Total Project
Cost |
Ratio
(State + ULB) : ADB |
|
US $ in M |
Rs. in Cr. |
US $ in M |
Rs. in Cr. |
US $ in M |
Rs. in Cr. |
|
| 1 |
60.00 |
240.00 |
15.00 |
60.00 |
75.00 |
300.00 |
80:20 |
| 2 |
150.00 |
600.00 |
71.83 |
287.32 |
221.83 |
887.32 |
67.62:32.38 |
| 3 |
63.00 |
252.00 |
30.17 |
120.68 |
93.17 |
372.68 |
|
| Total |
273.00 |
1092.00 |
117.00 |
468.00 |
390.00 |
1560.00 |
|
12. Responsibilities of Repayment &
on-lending agreement:
The responsibility of repayment of the loan and own contribution is
determined to the concerned line agencies on the basis of the works
proposed under the project. On-lending agreement has been signed with
the Urban Local Bodies for the acceptance to scheduled repayment of
loan and taking up mandatory reforms, necessary for respective works.
Determined responsibility for repayment of loan and payment of own contribution
is as below:
| Name of Sector |
Responsibility for repayment of
loan and own contribution |
| Water Supply Rehabilitation & Expansion |
State Govt. |
- Urban Environmental Improvements
- Waste Water Management
- Solid Waste Management
- Drainage
- Fire Fighting Services
- Historical Site & Environmental Management
(including important individual historical monuments)
- Slum Improvements
- Equipments for Waste Water, Solid Waste, Fire
Fighting Management
|
State Govt.
Municipal Body
UIT / Municipal Body
Municipal Body
State Govt./Municipal Body
UIT / Municipal Body
Municipal Body
|
Urban Transportation and Management
- Roads
- Bridges
- Bus/ Truck Terminals and Parking
|
Major outside roads- State Govt.; inside
roads- UIT / Municipal Body
State Govt. / UIT / Municipal Body
State Govt. / UIT / Municipal Body
|
| Tourism - Heritage for Employment |
State Govt. |
| Community Awareness and Participation
|
State Govt. |
|
Implementation Assistance and Capacity Building
- Incremental Administration
- Equipment and Vehicles for Implementation
- Design and Construction Supervision Services
- Project Management Services
- Interest During Construction
|
State Govt.
State Govt.
State Govt.
State Govt.
Corresponding share of State Govt. / UIT / Municipal Body
|
| Infrastructure development in new residential/commercial
schemes may also be considered for inclusion. |
UIT / Municipal Body |
13. Institutional and financial improvement
action plan:
The ADB, during the signing of Framework Financing Agreement for the
facility, has stipulated for the implementation of certain institutional
and sectoral reforms which are to made applicable in all program towns
in the given timeframe. The major reforms, as identified in different
sectors/institutions, are as follows;
a. Water Supply
Water tariff revision: Tariff implementation in all the 15 ULBs shall
follow the principle of the mandatory reforms under the JNNURM. By December
2014, the water tariff level should be sufficient to cover full operation
and maintenance of the water operation for each ULB.
Water supply coverage: By end of year 4 of each tranche, water supply
service coverage of 90% should be achieved through the water supply
investment under the Investment Program.
Water tariff collection: By the end year 3 of each tranche, water tariff
collection performance should be kept at no less than 85%.
b. Sewerage
Sewerage tariff revision: The current sewerage tariff level as prescribed
at 20% of water bill without a treatment plant and 33% of water bill
with a treatment plan should be maintained provided that the full O&M
cost is recovered for sewerage operation for each of the Investment
Program ULBs.
Sewerage asset transfer: If the PHED is to transfer sewerage assets
to ULBs, an asset transfer plan including skills/human resource transfer,
revenue sharing, and associated debt/equity transfer should be prepared
within 1 year of commencement of the Investment Program implementation.
Sewerage connection: As part of and along with sewerage services, connection
to sewer should be made mandatory in each of the Investment Program
ULBs taking up sewerage investment.
c. Solid waste management:
SWM charges should be introduced to cover no less than 50% of operation
and maintenance cost of SWM operation for each ULB within not later
than one year of related subproject completion.
d. Infrastructure Development Tax:
Infrastructure Development tax shall be so maintained by the state so
as to augment the financial stability of the ULBs.
e. Institutional Reform and Capacity Development:
Financial management: Implementation of double entry accrual accounting
systems in each ULB within 4 years of the commencement of the Investment
Program implementation.
Capacity Development Plan (CDP) Implementation: The IMPU, with assistance
from the loan consultants, will prepare a comprehensive CDP, for the
Investment Program ULBs and the State line agencies based on consultations
with all the stakeholders by December 2008. This CDP should be acceptable
to the respective City level committees, the Empowered committee, and
its implementation be completed by the IPMU, through IPIUs, by 2010.
14. Safeguards:
The RUSDIP project has provisioned for mandatory compliance of the safeguard
requirements as stipulated by Asian Development Bank, Govt. Of India
and Govt. Of Rajasthan. For all sub projects in each program town, Environmental
Management Plan, Social & Resettlement Plan and Indigenous People
Development Plans have been prepared with the help of Project Consultants
and all plans are duly approved by ADB.
15. Procurement:
All goods and services to be financed under the Facility will be procured
in accordance with ADB's Procurement Guidelines (April 2006, as amended
from time to time).
16. Advance Contracting and Retroactive
Financing:
Under each loan of the Facility, advance contracting of civil works
and equipment and materials, and recruitment of consulting services
may be requested subject to these being eligible in accordance with
agreed procedures and guidelines of ADB.
Except as otherwise agreed with ADB, the expenditures incurred for civil
works, equipment and materials and consulting service eligible for advance
contracting will be eligible for retroactive financing of up to 20%
of the proposed amount for the loans under the Facility for eligible
expenditures, including consultants, goods, and civil works, incurred
prior to effectiveness of each of the loan, but no earlier than 12 months
before the signing of the respective loan agreement for the loan under
the Facility. India and the State have been advised that ADB's approval
of advance contracting and retroactive financing does not constitute
a commitment to finance relevant projects under this Facility.GoR has
approved retroactive financing of Rs. 20 Crore from the existing plan
budget with a condition that the amount spent will be got reimbursed
from Tranche-II of ADB loan.
17. Implementation Arrangements :
(a)
Empowered Committee:
State-Level Empowered Committee has been formed to provide policy
guidance, coordination with different implementing Departments/ULBs
and taking decision on matters related to the Investment Program.
All powers of the State Government have been delegated to Empowered
committee in respect of the matters such as approval of the works
to be taken up under the Project; approval of Sectoral and City-wise
allocations; approval of the Annual Works Programme; Sanction of expenditure
within the Annual Plan ceiling for the Project; award of all contracts
and engagement of Consultants; sanction of temporary posts and contractual
services for the duration of the project only; take any other decisions
in respect of Project-implementation matters so as to ensure timely
Project implementation, within the scope of the Project as approved
by the State Government.
Administrative Reforms Department (Group-3) vide no F6(45)AR/Gr.-3/99
dated 6.10.2006 issued
order for the constitution of State-Level Empowered Committee
and further amended this vide order dated 28.10.2006.
The committee shall also monitor and review the progress of implementation
of the project; issue necessary directions for ensuring that the Project
is implemented according to schedule.
The decisions of the Empowered committee shall be complied with by
the Project Management Unit, RUIDP and the implementing Departments
as well as all agencies under the project to which they relate. Further
examination, scrutiny and approval at various levels by the concerned
Departments shall not be necessary.
The committee shall meet at least once quarterly or more frequently
if necessary. The tenure of the committee is uptill completion of
the project.
The Administrative Department for the above committee will be Local
Self Government Department (as modified vide Administrative Reform
Department order dated 28.10.2006).
(b)
Work Finalization Committee:
Methodology for identification of works and proposal of constitution
of Works Finalization Committee was approved by Empowered Committee
in its 1st meeting of RUSDIP held on 07.11.2006. Further order has
been issued by Administrative Reform Department no. F6 (45)AR/Gr.-3/99(i)
dated 10.04.2007. The Works Finalization Committee is responsible
to finalize the list of works, identified during detailed feasibility
study, considering the priority of sectors and works. Further, approval
of Hon'ble Minister, Urban Development & LSG is required on file
before taking up of any work under RUIDP Phase-II. Three meeting of
WFC has been held so far.
(c)
City Level Committees:
City Level Committee under the chairmanship of District Collector
of each town has been constituted for implementation of RUSDIP (RUIDP
Phase- II). Order for the constitution of CLC was issued by Administrative
Reforms Department (Group-3) vide no F6(45)AR/Gr.-3/99 dated 2.1.2007.
Later on Hon'ble Chief Minister instructed to involve concerned MLA's
& MP's in the city level committees. In compliance RUIDP requested
Parliamentary Affairs Department, GoR for inclusion of Hon'ble MLAs
& MPs as member in the City Level Committee of the program towns.
The CLC is being represented by the district/region level officers/functionaries
of concerned departments, chairpersons & Officers of ULBs, NGOs
and CBOs of town to discharge the following duties;
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to
provide overall subproject guidance;
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to
develop an effective mechanism for coordinating the local Project
activities among different line agencies;
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to
assist in planning and programming of Project activities;
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serve
as a coordinating agency among different line agencies;
-
serve
as a mechanism for ensuring that the public is represented in the
Project activities;
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monitor
the Project progress and activities;
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to
sort out issues & remove hindrances, if any;
CLC will also act as Grievance Re-Dressal Committee for the implementation
of resettlement plan by monitoring grievances re-dressal, determining
merit of each grievance and taking action for resolve of each grievance
with in one month of receipt.
(d) Investment Program Management Unit (IPMU):
The IPMU headed by a Project Director is assisted by competent, qualified
and experienced officers from various Engineering (PWD, PHED &
ULBs), Finance and other departments as agreed by the Finance Department.
The IPMU is responsible for Project execution, implementation, management
and supervision of sub-projects. IPMU is also responsible for; submission
of matters for decision of Empowered Committee & ensuring compliance;
submission of periodic reports to the Asian Development Bank (ADB);
obtaining necessary approvals from the ADB; issue of bid documents;
evaluation of bids received; supervision over and release of funds
to IPIUs; submission of reimbursement claims; ensuring compliance
of the loan covenants and supervision over the IPIUs. IPMU functions
under the supervision and control of LSGD as Administrative Department.
(e) Investment Program Management Consultant
(IPMC):
IPMC is based at Jaipur and the scope of services includes; (i) to
prepare detailed feasibility of remaining twelve towns; (ii) to assist
Investment Program Management Unit (IPMU) and Investment Program Implementation
Units (IPIUs) in project management activities in checking & review
of engineering designs and procurement documents and assist in Contract
Administration; (iii) issue guidelines for preparation of sub-projects
and carrying out appraisal of subprojects (iv) policy framing and
planning; (v) training for capacity building and (vi) to oversee the
work of the three DSC's and provide necessary guidance to them in
implementation of the project.
(f) Investment Program Implementation Units
(IPIU):
Fifteen Investment Program Implementation Units (IPIUs) are established
and a full-time representative of the IPIUs is appointed in each program
towns to carry out daily implementation activities required under
the Investment Program. The IPMU and IPIUs will be assisted in preparation
of design documents, management of tendering for award of work contracts,
construction supervision and overall management of the Investment
Program by the Design and Supervision Consultants (DSCs) and IPMC
as well.
IPIU's are headed by Executive Engineers in the towns.
(g) Design & Construction Supervision
Consultants: The DSCs headquarters are located in three
regions to assist the IPMU and IPIUs in preparing design documents,
management of tendering for award of work contracts, construction
supervision and overall management of the Investment Program. The
3 DSCs have following offices; (i) Headquarter office at Bharatpur
and sub-head quarters at Alwar, Bharatpur, Dholpur, Karauli and Sawai
Madhopur; (ii) Headquarter office at Nagaur and sub-head quarters
at Barmer, Churu, Jaisalmer, Nagaur and Sikar; and (iii) Headquarter
office at Jhalawar and sub-head quarters at Baran, Bundi, Chittaurgarh,
Jhalawar-Jhalarapatan and Rajsamand.
(h) The scope of consulting services for
the DSCs include (i) carrying out all detail surveys, studies
and site investigations; (ii) update feasibility study findings wherever
available; (iii) prepare conceptual, preliminary and detailed designs;
(iv) prepare detailed technical specifications, bill of quantities,
drawings and bid documents (v) to assist IPIUs in Contract supervision
& administration of sub-projects etc.
18. City Level Investment Plans:
The City Level Investment Plans (CLIP) of Baran, Barmer, Bharatpur,
Bundi, Chittorgarh, Churu, Dholpur, Karauli, Nagaur, Rajsamand, Sawai
Madhopur and Sikar town are prepared by Consultants (IPMC) in co-ordination
with the DSCs & city in-charges after conducting visits and meetings
with different stakeholders. The CLIPs are endorsed by the City Level
Committees of respective town.
The infrastructure plan of the town, prepared by Consultants, mainly
comments the urban infrastructure improvement, slum improvement, civic
infrastructure, institutional strengthening and financial sustainability
with background information, data analysis, and financial model and
focus group discussions supporting the infrastructure development. Team
of consultants has also studied the Initial Environmental Examinations
(IEEs), providing the environmental assessment and mitigation plan for
identified sub-projects, Resettlement Plan, providing details on the
land acquisition and involuntary resettlement process to provide for
sub-project implementation. City Level Committees approved the CLIPs
for these towns.
19. Subproject works under tranche-I:
The works has been identified for the sample representative towns namely
Alwar, Jhalawar-Jhalarapatan and jaisalmer under the Tranche-I for 22
sub-projects. The bids have been invited and are in process of evaluation
/ under receipt.
20. Subproject works under tranche-II:
Considering the detailed feasibility and early compliance of social
& environmental safeguards the ADB Loan Appraisal Mission appraised
34 sub-projects in Tranche-II .
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