| | KARNATAKA URBAN WATER SECTOR IMPROVEMENT PROJECT (KUWASIP)Objectives of the Project:
Launch GoK’s UWS reform process based on “Urban Drinking Water And Sanitation Policy Statement of GoK”
Improve UWS services and demonstrate that sustainable, efficient and commercially oriented service provision can be achieved
The project mainly seeks to implement the strategy enunciated in the Urban Drinking Water & Sanitation Policy of GoK. It will be implemented in phases. GoK and World Bank have approved the first phase.
Towns selected:
The three towns selected for investments in the first phase are Belgaum, Gulbarga & Hubli-Dharwad. Subsequent phases of the Project will involve scaling up to the rest of the areas in the three cities and also to more cities.
Project Components:
The project has two main components:
Technical Assistance (TA) studies for water and sanitation sector reforms at the State and ULB levels.
Investments in selected demonstration zones of the three ULBs for improving water service delivery through initial PSP, for demonstrating continuous (24x7) water supply Bulk water improvement related investments to ensure that the availability of water to other citizens in the ULBs continues to be at the current level, at least. Other critical/urgent works to improve supply frequency.
Technical Assistance (TA) studies:
Establishment of Karnataka State Urban Water Supply & Sanitation Council (KSUWSC):
To oversee and be responsible for policy implementation, technical assistance, development of information system / norms and certain regulatory functions.
Review and Establishment of Regulatory and Legal Framework:
To design the regulation strategy, legal basis and action plan for starting up of basic regulatory functions.
Water and Sanitation Sector Investment & Tariff Frameworks:
To establish an integrated state UWS sector financial policy and to develop a frame work for WSS pricing through tariffs
Strengthening of Urban Water Supply and Sanitation (UWSS) Service Delivery in ULBs:
To explore institutional options for service provision and to prepare action plan for UWS reform / revenue collection.
Creation of Water and Sanitation Information System (WASIS) and Benchmarking of Service Provision:
To develop an information system, collection of data, periodic updating of information and Benchmarking of service provision levels.
Tariff Design for Continuous Water Supply
To recommend a structure and level of tariffs for cost recovery, and consumer preferences and affordability.
The above studies taken up by the consultants hired for the purpose are under various stages of completion. Additional studies included in the project are for scaling up the project in the next phases .
The Investment component consists of:
- Critical minimum/Priority investments (PIs) in bulk supply systems of all the three ULBs named above, aimed at reducing transmission leaks/losses. This helps increase the overall availability of water so that while Demonstration Zones are provided continuous water, the water supply to other areas is not affected.
- Demonstration projects in selected areas (called Demonstration Zones) in each of the ULBs, to upgrade the service to continuous water supply (24x7). Five demonstration zones have been selected employing objective criteria: two in Belgaum, one each in Hubli, Dharwad & Gulbarga.
- Limited capital investment for urgent works in cities’ distribution net works (mainly Hubli-Dharwad) to improve supply frequency to minimize possible adverse impact due to difference in levels of service between Demo Zones & the rest of the city during implementation of continuous water supply in Demo Zones.
Executing Agencies:
The Technical Assistance studies are carried out through consultancy firms selected by competitive bidding as per procurement norms of World Bank.
Priority Investments are executed under the supervision of KUWS & DB. Reputed Third Party Inspection Agencies will certify the quality of materials and Technical Auditor (selected by competitive bidding) monitors the quality of materials and workmanship.
Demonstration project is executed by a private entity called ‘operator’, who in turn employ’s contractors for works, goods & services. The operator is responsible to demonstrate performance targets during a two year operation & management period. The Technical Auditor monitors the quality of works of the contractors as well as performance of the operator.
Project cost:
The total project cost is about Rs. 237 crores. The World Bank loan is Rs. 182 crores and GoK contribution is Rs. 55 crores. The entire loan amount will be passed on to the beneficiary towns as grant by GoK, due to the pilot nature of the project. A brief break up of component wise costs is given below:
Sl.
No. | Component | Amount, Rs in crores |
 | Technical Assistance Studies | 11.75 |
| Investments:
Priority Investments and related costs: | 124.90 |
| Demonstration project (including operator’ Remuneration) | 65.60 |
| Urgent works (including Quick Fix) | 26.60 |
| Project implementation support (training, Monitoring & Evaluation, retroactive financing, incremental Operating costs, front end fee etc) | 8.15 |
Project period:
The project period, according to World Bank’s Project Appraisal Document, is four years. Initially, it was indicated as 2004-2008, with Bank Board approval for the project in April 2004. However, the GoK took time to sign the agreement with the Bank to ensure that the Bank cleared all bid documents & there was sufficient progress made towards implementing the project. As a result of this, there is a corresponding shift in timeline, retaining the overall project period of four years.
Status of the Project (December 2009):
The Cabinet approved the Project on 21/10/2003
Government Order sanctioning the Project was issued on 07/02/2004 and a supplementary GO detailing the implementation arrangements was issued on 13/07/2004
The Project was cleared by the World Bank on 08/04/ 2004.
Agreement with World Bank was signed on 18th February 2005. Loan was declared effective by the World Bank, from 18th May 2005.
Six TA studies have been taken up, of which three are completed. The remaining studies are in different stages of progress.
Contracts for eight Priority Investment Works (PI Works) are completed and commissioned except certain additional works taken up in Belgaum and one pipeline work in Gulbarga. Contracts for procurement and installation of pumping machineries under two goods packages and the works are completed and commissioned.
The private sector Operator has been selected. Contract signed on 25th April 2005 and works of laying pipelines are completed in Demonstration Zones. The works of House Service Connections in 5 Demonstration Zone are completed and continuous water supply operationalised in all five Demonstration Zones from 1.4.2008.
The Technical Audit firm and third party inspection agencies monitor quality of works.
Social Intermediation and Communication Strategy (SICS) cell has been set up at the Regional office, KUIDFC, Dharwad. Social Intermediation and Communication Activities are being implemented with the assistance of local NGOs.
Further it is envisaged to upscale 24/7 water supply covering entire corporation areas of Hubli-Dharwad, Belagum and Gulbarga on PPP basis.
Selection of consultant for preparation of project report and transactions support is in process.
RFQ issued for the selection of operator for O &M of the Demonstration Zones from 1/4/2010 to 31/3/2012
National Urban Water Awards 2009
Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), Bangalore has received the “National Urban Water Awards 2009” under Public-Private Partnership category for the “Karnataka Urban Water Sector Improvement Project (KUWASIP)”. Her Excellency the President of India Smt. Pratibha Devisingh Patil presented the award at Vigyan Bhavan, New Delhi on 13th August 2009
Updated on 02-01-2010
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