::Welcome to Kerala State Urban Development Project ::



		KERALA SUSTAINABLE URBAN DEVELOPMENT PROJECT

ABOUT KERALA SUSTAINABLE URBAN DEVELOPMENT PROJECT

PROJECT AGREEMENT between ADB and Government OF KERALA

LOAN AGREEMENT betweenGovernment INDIA and ADB

KERALA STATE URBAN DEVELOPMENT PROJECT PERFORMS THE MAJOR FUNCTIONS OF

Executing Agency for ADB funded Project

State level Agency for JNNURM

Executing Agency for ADB funded Project

KSUDP

Objectives and Scope

The objectives of the Project are to improve urban environment, economy, and living conditions for people living in the five Project cities under the Project. To this end, the Project will aim to support the State to (i) improve and expand urban infrastructure and services; (ii) enhance livelihoods; and (iii) improve urban management, planning, and financing capacity of the sector institutions specially the MCs for sustainable provision of urban infrastructure and services in the five Project cities.

C. Project Components

1. Part A: Urban Infrastructure and Services Improvement

The component will target urban infrastructure development and will be implemented in close partnership with State Line Utilities. The Design and Supervision Consultants (DSCs) will prepare detailed engineering designs to implement the components identified through the feasibility study. Detailed engineering designs for the Solid Waste Management and Urban Roads and Transport components will be undertaken through the Bridging TA (TA 4518-IND: Capacity Building for KSUDP).

a)Water Supply. This component will include (i) improvements to water treatment plants and rehabilitation of existing transmission mains and pumping machinery in Kollam; (ii) rehabilitation of the trunk water transmissions in Kochi; (iii) rehabilitation of transmission mains and pumping machinery in Thrissur; (iv) a leak detection program with rehabilitation and strengthening of the existing distribution network in Kochi, Kollam, and Thrissur; and (v) an increase in and metering of house service connections (including repairs to damaged meters) and installation of bulk water meters in Kochi, Kollam and Thrissur.

b) Sewerage and Sanitation. In all municipal corporations except Thrissur, sewerage networks will be rehabilitated and expanded and sewage treatment plants constructed. Equipment for sewer maintenance will be supplied. In Thrissur, where it is uneconomical to develop a sewerage system, the Project will provide facilities for drying and digestion of septic tank sludge.

(i) Rehabilitation of existing culverts and construction of new ones; (ii) improvements to main drains and secondary drains; and (iii) construction of new drains to improve the storm water drainage network.

(d) Solid Waste Management. In all municipal corporations, except Thiruvananthapuram, the solid waste collection and treatment capacity will be increased. This will include (i) the provision of dumpers, refuse collectors and compactors; (ii) provision of community waste collection containers; and (iii) civil works to develop sanitary landfill sites in Kochi, Kollam, Kozhikode, and Thrissur. Compost plants will be installed by the municipal corporations in Kochi and Kollam.

(e) Roads and Transport. In all municipal corporations, traffic congestion will be reduced and road safety improved through (i) improvements to critical roads and junctions by providing pedestrian footpaths, off-street parking, and bus-bays; (ii) improvements to street lighting on major roads in all cities except Thiruvanathapuram; (iii) road safety improvements in Kochi and Thrissur through construction of footpaths, traffic islands, and signals; (iv) construction of an underpass in Kollam; (v) construction of pedestrian subways under busy roads in Thrissur, and (vi) construction of a flyover in Kozhikode to enable effective and smooth traffic interchange.

2. Part B: Urban Community Upgrading

The component will target the poor by combining improvements to basic infrastructure and services with livelihood promotion. It will be implemented in close partnership with civil society organizations (CSOs).

(a) Community Infrastructure and Services. Funds will be available to poor communities in the five municipal corporations for improvements to basic infrastructure (including water supply, sanitation, local drainage, narrow road paving, street lighting) and services for women and children slum dwellers.
(b) Livelihood Promotion. Funds will be available to finance programs for income generation, for confederations of self-help groups, and for micro-enterprise development.

3. Part C: Local Government Infrastructure Development

The component will help ULBs to develop and finance sub-projects on water supply, sanitation, solid waste management, roads (including street lighting), transportation, sites and services, area development, and other urban infrastructure. The Local Self Government Department (LSGD) of GoK will provide ULBs with technical assistance to develop sub-projects and select sub-projects for financing.

4. Part D: Support for Capacity Building and Project Management

The component will improve the State and Municipal Officials’ capacity to implement and monitor the Project, and improve ULB’s governance and management practices regarding ULB functions and long-term Project component sustainability. It will also provide Project management and implementation support to ensure appropriate execution of the Project.

(a) Capacity Building for Improved Urban Management. Capacity building activities will be designed to improve the sustainability of investments made under the Project. At the state level, these activities will be directed at institutionalizing systems to enable the LSGD to monitor the performance of and oversee service delivery by ULBs and municipal corporations through databases for municipal services, assets and human resources.

(b) Support for Project Management and Implementation. Consulting services will be provided to help the PMU and PIUs in each municipal corporation to (i) strengthen their project management and implementation capabilities; (ii) prepare detailed engineering designs for investment components of each municipal corporation; (iii) support construction supervision and quality control of civil works under the Project; (iv) help in the appraisal, implementation and monitoring of ULB sub-projects; and (v) contribute to benefit monitoring and evaluation by generating baseline data and assessing the impact of the Project and by providing feedback to the PMU to enable adjustments.

(c) Community Awareness and Participation. PMU will assist GoK to promote community awareness of the Project, including an understanding of its long-term benefits. This will strengthen the support to Project beneficiaries and stimulate demand for better urban infrastructure and services.

Detailed cost estimate

Component	Foreign Exchange	Local Currency	Total Cost
	(INR cr)	(INR cr)	(INR cr)
A. Base Cost
Part A. Urban Infrastructure Improvement	284.0	373.1	657.0
Part B. Community Upgrading	19.8	81.5	101.3
Part C. Local Government Infrastructure Development	-	243.5	243.5
Part D. Capacity Building and Implementation Assistance	11.3	67.5	78.8
Subtotal (A)	315.0	765.9	1,080.5
B. Contingencies 1. Physical Contingency / Price Contingency	15.8 22.5	37.4 40.1	53.1 62.6
Subtotal (B)	38.3	77.4	115.7
C. Taxes and Duties	0.0	94.5	94.5
D. Interest During Construction 1. Interest during Construction c/	122.0	0.0	122.0
2. Commitment Charges	9.9	0.0	9.9
Subtotal (C)	131.9	0.0
Total Percentage			131.9
	484.7	937.8	1,422.5
	34%	66%	100%

Allocation of Loan Proceeds

Item	Amount	Amount		Percentage	Basis for
	Allocated -	Allocated -			Withdrawal
	Category	Subcategory			from Loan
	(INR)	(INR)			Account
1. Civil works	5,785,127,545		-	82%	Of Total Expenditure
2. Equipment, Materials, Vehicle	434,212,577		-	80%	Of Total
and Furniture					Expenditure
Local Training, Workshops, Surveys	68,541,185		-	73%	Of Total
and Studies					Expenditure
3. Livelihood Promotion Programs	441,000,000		-	70%	Of Total Expenditure
4. Local Government Infrastructure	675,000,000		-	70%	Of Total
Development					Expenditure
5. Consulting Services and	461,935,000		-	100%	Of Total
Incremental Administration					Expenditure *
Costs
6. Interest and Commitment	1,316,655,802		-	100%	Of amount Dues
Charges
7. Unallocated Total	774,209,532		-
7. Unallocated Total	9,956,681,640	-

Implementation Arrangements

LSGD of GoK is the Executing Agency of the Project and will be responsible for overall strategic guidance, technical supervision, and implementation of the Project, and for ensuring compliance with ADB’s loan covenants. A state-level Project Management Unit(PMU), led by a full-time Project Director, is responsible for overall project implementation, monitoring and supervision, and will report directly to the Secretary, LSGD.

PMU Roles & Responsibilities

A state-level E Appointing the TSU, two DSCs, and PPMS Consultants
Approving the design of the investment components prepared by the PIUs
Selection of subprojects, obtaining necessary approvals for subproject finance, assisting and monitoring subproject implementation
Pre-qualifying contractors
Preparing standard bid documents
Monitoring the tendering process and reviewing the bid evaluation and preparing bid evaluation reports for approval
Procuring equipment and services at the State-level
Ensuring Project compliance
Coordinating on matters related to disbursements
Undertaking Institutional Development and Capacity Building programs
Maintaining Project documents

An Empowered Committee (EC) was set up with the Minister for Local Self Government (Chairman), State Chief Secretary (Vice Chairman), Additional Chief Secretary, Secretaries of LSGD, Finance, Planning, Water Resources, Irrigation, and Public Works, and MGP; the Executive Director of Kudumbashree; Mayors of the Project municipal corporations; and the Project Director, as Member Secretary. The EC will also include the Director of Urban Affairs and the Chief Town Planner.

      A state-level Coordination Committee(CC) comprising Principal Secretaries of LSGD, Finance, Planning, Secretary LSGD and the Project Director, as Convener, will meet at regular intervals to ensure smooth functioning of the Project.

      Municipal corporations are the Implementing Agencies for the Project. In each municipal corporation, a Project Implementation Unit (PIU) headed by a Project Manager, and supported by specialists in water supply, sewerage, civil engineering, solid waste management, urban planning, procurement, environment, finance and accounting, and social and community development for the successful implementation of the Project.

      In each municipal corporation, PIUs will be guided by a city-level Steering Committee . The city level Monitoring Committee consists of Mayor is Chairperson, District Collector, Representative of Line Departments – Member, Chairpersons of ALL Standing Committee, Representatives of community based organizations (CBOs); and Corporation Secretary.

PIU Roles & Responsibilities

Carrying out detailed surveys, investigations and engineering designs including estimates
Tendering, evaluating bids and awarding works, contract administration, supervision and quality control
Measuring works carried out by the contractors and certifying payments
Ensuring respective MCs’ compliance with loan covenants
For the water supply component of the Project, will obtain clearance/no objection from the KWA before tendering the works
Each PIUs shall also be responsible for detailed engineering, procurement, construction supervision and quality control for the community infrastructure and livelihood promotion activities.

:: Site Designed and Maintained by Keltron ::