Document of

The World Bank

FOR OFFICIAL USE ONLY

A?v 3hf I- i#/4Z 2 / I/ /A/ Report No. 7501-IN

STAFF APPRAISAL REPORT

INDIA

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

JANUARY 4, 1990

Population, Human Resources, Urban and Water DivisionIndia Department

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

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EOUIVALENTS

Currency Unit - Indian Rupee (Rs)US$ 1.00 - Rs 16.00Rs 1.00 - US$ 0.077

MEASURES AND EOUIVALENTS

mm - millimeter (1 millimeter - 0.03 inches)m - meter (1 meter - 3.28 feet)km - kilometer (1 kilometer - 0.62 miles)km2 - square kilometer (1 km2 _ 0.368 square miles)ha - hectare (1 hectare - 10,000 square meters - 2.47 acres)1 - liter (0.22 Imperial gallons or 0.264 US gallons)lcd - liters per capita per dayms3 - cubic meters (220 Imperial gallons or 264.2 US gallons)Ml - million litersMld - million liters per day (0.220 million Imperial gallons

per day or 0.264 million US gallons per day)mgd - million (Imperial) gallons per day (1 mgd - 4,545 m3 per day)TMC - thousand million cubic feet (per year):lTMC-28.317MCM-77.58MldMCM - million cubic meters (per year):l MCM - 0.0353 THC - 2.74 Mld

ABBREVIATIONS AND ACRONYMS

AC - Asbestos CementAIC - Average Incremental CostCI - Cast IronCPHEEO - GOI's Central Environmental Engineering Organization in MUDDHMAUD - GOAP's Department of Housing, Municipal Administration and

Urban DevelopmentGI - Galvanized Iron (Steel)GOAP - Government of Andhra PradeshGOI - Government of IndiaHMWW - Hyderabad Metropolitan Water WorksHMWSSB - Hyderabad Metropolitan Water Supply and Sewerage BoardLCS - Low Cost SanitationMCH - Municipal Corporation of HyderabadMS - Mild SteelMUD - GOI's Ministry of Urban DevelopmentOAP - Operational Action PlanODA - Overseas Development Administration of the United KingdomPHED - GOAP's Public Health Engineering Department within DHMAUDPSC - Prestressed ConcreteRCC - Reinforced Cement ConcreteRRP - Resettlement and Rehabilitation ProgramSPS - Sewage Pumping StationSTP - Sewage Treatment PlantUCDD - MCH's Urbar. Community Development DepartmentUNDP - United Nations Development ProgramWHO - World Health OrganizationWPS - Water Pumping StationWTP - Water Treatment Plant

FISCAL YEAR

April 1 - March 31

International Bank for Reconstruction and DevelopmentIntemational Development Association

FOR OFFICIAL USE ONLY'

FOREXECUTIVE SPECIAL PROCEDUR For consideration on

DIRECTORS' Tuesday, March 27, 1990MEETING

R90-41/1IDA/R90-31/1

FROM: Vice President and Secretary March 8, 1990

INDIA: Hyderabad Water Supply and Sanitation Project

Staff Appraisal Report (Report No. 7501-IN)

CORRIGENDUM

The President's Memorandum and Recommendation (R90-41[IDA/R90-31]datedMarch 7, 1990) on a proposed loan and credit to India for the Hyderabad WaterSupply and lanltation Droject, together with the Staff Appraisal Report,wasdistributed for consideration by the Executive Directors on March 27, 1990.

Please note the following revisions to the Staff Appraisal Report:

Pages Paragraphs Change

45, 51 5.07 and 7.01(5) Date from March 31, 1990 to June 30, 1990

47, 52 5.15 and 7.01(10)(b) Date from March 31, 1990 to Sept. 30, 1990

Distribution:

Executive Directors and AlternatesPresidentSenior Vice PresidentsSenior Management CouncilVice Presidents, IFCDirectors and Department Heads, Bank and IFC

This doc Li iment has a restriced disIh ultil anl d n In-I he ut ed )s rcL cI nl ' I, Ie t : l )rnbmn X

ot t'il oi tth ial dutics. 1t\ ciltClit 11.1\ not othcrn1 i. c di1 < , ' ' \\ od Id I Bnk SLihOri/ati01l.

10 OFFICmaAL WI ONLY

IND

HYLERABAD WATER SUPPLY AND SANITATION PROJECT

STAFF APPRAISAL REPORT

Table of Contents

,Page No.

CREDIT AND PROJECT SUMMARY ................................ iv-v

I. THE WATER SUPPLY AND SANITATION SECTOR IN INDIA ........... 1

Sector Context ............................................ 1

II. THE SECTOR IN ANDHRA PRADESH AND HYDERABAD .... ............ 3

The State of Andhra Pradesh ............................... 3The Hyderabad Metropolitan Area ........................... 5

The Existing Water System and Level of Service ...... 5The Existing Sewerage System and Level of Service ... 7Prior and Ongoing Sanitation Programs .... .......... 8

Issues and Government Strategy ........................... 9Water Supply ....................................... 9Sanitary Sewerage and Sanitation .... ............... 10Financial Issues ................................... 12Institutional Tssties ..................... ill

The Bank's Sector Role and Assistance Strategy in India 13

III. THE PROJECT .15

Project Origin and Ratiotnale for Bank Support .15Project Objectives .21Project Description .21Dam Safety .26Singur Drinking Water Supply Reliability .27Project Costs and Financing Plan .28Project Financing .29Status of Preparation .30Land Acquisition for the Project .31Procurement .32Disbursements .34Implementation Schedules .35Supervision and Monitoring .36Accounts and Audits .37

This report is based on the findings of an appraisal mission whicl. visitedHyderabad in March 1988. This mission comprised Messrs. Christophe, Couzens(Senior Sanitary Engineer and Mission Leader), Norihiro Noda (SanitaryEngineer), Albert Kennefick (Financial Analyst), Lakshman Mahapatra(Consultant - Relocation and Resettlement Specialist) and Sunil Bhattacharya(Procurement Specialist).

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.

-ii -

Page No.

IV. PROJECT ORGANIZAT N AND ......................... 37

Overview .................................................... 37Operational Action Plans ............... .. ................... 38Hyderabad Metropolitan Water Supply and Sewerage

Board (HMWSSB) ........ ............. ....................... 38Present Organization ... 38Project Management: The World Bank Project Cell .......... 39Finance and Accounts ............... .. .................. 41Operations ........ ............. ....................... 41

Resettlement and Rehabilitation - Project Component 5 ........ 42

V. FINANCIAL ASPECTS ..................... ...................... 43

HMWW Revenue and Expenditure Trends .......... .. ............. 43Water Tariffs ....................... ........................ 44Water Billing and Collection ............. .. ................. 45Capital Receipts and Expenditures ........... .. .............. 45Materials Accounting and Management .......... .. ............. 46ProjeCted Financial Performance ............ .. ............... 46Sewerage Service ........ ............. ....................... 47

VI. PROJECT BENEFITS AND RISKS .............. .. .................. 48

General .......................... ........................... 48Impact and Benefits for the Urban Poor ........ .. ............ 48Economic Analysis ..................... ...................... 49Project Risks ....................... ........................ 50

VII. AGREEMENTS REACHED AND RECOMMENDATION ....................... 50

Conditions ........................ .......................... 50Recommendation ...................... ........................ 52

Pag2 No.

1. The Sector Context in Andhra Pradesh and in Hyderabad 532. Bank Financed Water Supply-Sanitation, Urban and Urban

Transport Projects in India .. 603. The Existing Water System - Rehabilitation (Component 2) 614. The Existing Sewerage System - Rehabilitation (Component 3) 715. Sanitation - Past Program Experience Component 4 . .so6. Dam Safety at Singur .. 837. Resettlement and Rehabilitation Program (RRP) (Component 5) 898. Technical Assistance - Outline Terms of Reference Component 6 989. Persormel Training - Costs - Component 6 . .11110. The Project Description (Costs, Schedules, Procurement) 11511. Land Acquisition (Requirements, Status, Procedures) . .13612. Drinking Water Yield Reliability from the Singur Reservoir 13813. Local Procurement Procedures .. 14814. Operational Action Plan .. 15015. MCH Property Tax Structure .. 15416. HMWSSB Financial Projections .. 15517. Economic Aspects - Rates of Return .. 15818. List of Selected Documents on the Project File .159

IBRD No. 20971 Water Supply and Transmission Systems (existing/proposed)

IBRD No. 20972 Water Supply - Trunk Distribution System (existing/proposed)IBRD No. 20973 Sewerage System (existing/proposed)

- iv -

INDIA

HMD&gW) W!, &TER SUPPLY ApD SEWERAGE PROJECT

LOAN, CREDIT AND PROJECT SUMMARY

Borrower: India, acting by its President.

Beneficiaries: Government of Andhra Pradesh (GOAP), Hyderabad MetropolitanWater Supply and Sewerage Board (HMWSSB).

: Amount: IBRD Loan : US$10.0 million.IDA Credit: SDR 63.9 million (US$79.9 million equivalent).

Terms: IBRD Loan : 20 years including 5 years of grace at standardvariable interest rate.

IDA Credit: Standard terms with 35 years maturity.

On-LendingTerms: Government of India (GOI) to GOAP: As part of the central

assistance to States for development projects on terms andconditions applicable at the time.

GOAP tu HMWSSB: Not less than 10.25% p.a. rate of interest,with repayment over 25 years, including five years of grace.

CI * cU] bear the foreign exehange risks.ProjectDescriRtion: The project would increase Hyderabad's water supply by 135 Mld,

or about 23%, and would reduce the vulnerability of the supplyto drought. The project would help realize more benefits fromprior investments in water supply and sanitary sewerage, andexpand capacities to meet future needs, through tlerehabilitation and strengthening of the existing water supplyand sewerage systems. The latter is seriously overloaded andthis causes environmental pollution and health risks. Theproject would also address the safe excreta disposal needs ofthe community through a low-cost sanitation program which wouldprovide 20,000 household latrines. During project preparation,GOAP appointed a Dam Review Panel to assess measures to assurethe safety of the Singur Dam - the source of the additionalwater for the project. The project will implement an equitableresettlement and rehabilitation program for thon.e peopledisplaced by the Singur Dam Reservoir. It would alsostrengthen HMWSSB's management, financial and operationalperformance through the project's technical assistance andpersonnel training components.

ProjectRisks: The major risks likely to face the project are: (i) an

unproven planning and execution capacity in HMWSSB in the areasof water supply rehabilitation and strengthening and ofsanitary sewerage; and (ii) a possible lack of the long-termpolitical will to sustain tariffs at adequate levels. Theserisks would be addressed by the project's provision ofconsultant technical assistance to aid the planning and designof the rehabilitation of the water supply system and the

sewerage components. Project implementation would also beenhanced by the project's provlsion of consultant technicalassistance to design and introduce a computer-based projectmanagement system along the lines of successful experienceselsewhere in India. The tariff risk would be addressed throughsystematic annual reviews of HMWSSB's medium term financialposition, as provided in the Operational Action Plan for theproject.

Local Foreign TOTALEstimated Costs -----US$ Million-----

Kanjira Phase III Stage 1 Water Supply 24.0 11.7 35.7Strengthen Rehab. Existing Water System 19.2 8.2 27.4Strengthen Rehab. Existing Sewerage System 23.9 3.1 27.0Low-Cost Sanitation 2.6 0.0 2.6Resettlement and Rehabilitation 6.0 1.3 7.3Institutional Strengthening 2.9 1.1 4.0Engineering and Supervision 7.7 0.0 7.7Land 0.6 0.0 _0.6TOTAL BASE COSTS 86.9 25.4 112.3Physical Contingencies 9.4 3.7 13.1Price Contingencies 9.3 5.9 15.2TOTAL PROJECT COSTS 105.6 35.0 140.6

Note: The above costs include an estimated US$12.3 million in taxes and duties.

Financing Plan

IDA Credit 1/ 47.4 32.5 79.9IBRD Loan 1/ 7.5 2.5 10.0GOAP Loans to HMWSSB 41.0 - 41.0GOAP Other Contribution 9.0 - 9.0Householder Contribution 0.7 - 0.7

(Low-Cost Sanitation)TOTAL PROJECT COSTS 105.6 35.0 140.6

2./ The Loan and Credit would be made available to GOI, who would makethe proceeds available to GOAP in accordance with GOI's standardarrangements for development assistance to the states of India.

Estimated Disbursements

UIIY..U 1990 1991 1992 1993 1994 1995 1996 197 1998-_________---------------- US$ millions ----------------------------

IDA Crodit 4.0 1.7 7.8 11.1 16.4 16.2 18.1 4.6 0.0IBRD Loan 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.6 3.4Total Annual 4.0 1.7 7.8 11.1 16.4 16.2 18.1 11.2 3.4CusultiWe 4.0 5.7 13.5 24.6 41.0 57.2 75.3 86.5 89.9

Economic Rate of Return: 9.9%

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

I. THE WATER SUPPLY AND CANITATION SECTOR IN INDIA

Sector Context

1.01 Economic Structure and Trends: The Indian economy is becomingincreasingly industrialized and urbanized. Progressively larger shares ofdomestic product are being generated by the secondary and tertiary sectors,while the share of agriculture and other primary activities diminishes.By 1989 secondary and tertiary activities are expected to account for two-thirds of GDP.

1.02 Urbanization Irends: There are parallel and related trends in thepopulation structure, with the urban population growing more rapidly than therural population. According to the 1985-90 Seventh Five Year Plan, the urbanshare of India's total population was expected to grow from 1981 to 2001 from23% to 32%. MoreovAr, these projections indicate that over that period halfof all population growth will be urban, that the urban population will morethan double with an increase of 170 million, and the urban population at theend of the century will be about 330 million.

1.03 There is a growing recognition and acceptance in India of thesetrends. There is also a growing realization that urban and economicdevelopment are linked, and that past efforts to contain urban growth were notonly unsuccessful but may have been counter-productive. However, sustaining ahealthy urban economy in this context will require very substantialinvestments in public infrastructure, such as water supply and sanitation, onwhich urban areas are absolutely dependent.

1.04 Sector Investments and Development: Between 1961 and 198,, thewater supply and sanitation sector - urban and rural - has received everincreasing allocations under successive development plans. This is true inabsolute terms and also, except for the Fifth Plan 1974-79, as a proportion oftotal plan outlays. Under the current 1985-90 Seventh Plan, the proportion oftotal plan outlays declined from the 4.0% of the Sixth Plan to 3.6%, but theamount inereased by some 67% from the Sixth Plan sector allocation of Rs 39billion to the Seventh Plan allocation of Rs 65 billion. In fact, in nominalterms, the Seventh Plan allocation alone almost equals the sum of all planallocations in the period 1961 to 1985. Further detail is in the followingTable 1.1.

- 2-

TA.L 1.1 INDIAN HISTORY OFWATER SUPPLY AND SANITATION SECTOR INVESTMENS

TAT!R StPPLY-SAN!?ATIO SZCTODEVELOflENT PLAO OUTLAY OUTLAY PfRCZNT PZRCUN?

PLAN P-ROD eu Craze K Crere TOTAL PM, PLAN

ThLrd 1961-64 6,576.!0 105.70 1.231Anaual 1966-69 6,625 40 102.70 1.551 1621Fourth 1969-74 15,752.50 458.90 2.91X 2641FIfth 1974-79 39,426.20 1,091.60 2.77X 23$XAnnual 1979-S0 12,178.50 387.60 3.10X 170XSLxth 1980-85 as LINIAZ 3907.0 4X01X 202X

TOTAL 18f0-087.10 6054.30 3,361

Seventh 195-90 100.000.J0 6.522.47 I.62S 167Z

Sourc: CP8EO, New D.lhl

1.05 India responded with a plan to the UN-declared InternationalDrinking Water Supply and Sanitation Decade 1981-90 (IDWSSD). This DecadePlan set targets of 100% coverage of water supply for both the urban and ruralpopulations and of 81% and 25% for the urban and rural population,respectively, for sanitation. A mid-decade review, however, in light ofachievements to 1985, reduced the 1990 coverage targets for water supply to86% and 75% and for sanitation to 45% and 2% for the urban and ruralpopulations, respectively.

1.06 In the period 1981 to 1985, in fact, about 12 million additionalurban people were provided with water supply. However, the total urbanpopulation grew by an estimated 15 million people during this same period, andthe proportion of the urban population provided with water supply increased bya mere 0.6% from 72.3%. Also during this period, some 9 million additionalurban people were provided with sewerage service or sanitation facilities, andthe proportion of the urban population so served increased from 25.1% toA8.4%. A significant proportion of this achievement has been realized throughthe use of low-cost sanitation technologies, for which programs in urban areashave achieved a substantial momentum and widespread public acceptance.

1.07 However, 'population served" or "coverage' figures alone are aninadequate indicator of sector status, and mask the issue of "level ofservice". In most Indian cities, some combination of inadequate supplyquantities, excessive water use uncontrolled by consumer metering andvolumetric charges for water, illicit connections and high water systemleakage rates, forces the provision of an intermittent supply to the consumer.This has implications for the quality of water received by the consumer, forconsumer convenience, for economy and for equity (see para 2.35). InHyderabad, for example, while virtually all the population is "servedw withwater supply, the domestic supply was limited to a period of two hours everysecond day for the years 1984 through 1987. Such a grossly inadequate levelof service is only partly a result of a less than normal rainfall in thisfour-year period. This example demonstrates the need for investments toimprove the level of service, in addition to those needed to expand coverage.However, where the principal cause of intermittent service is high systemleakage, which is frequently the case, the provision of continuous service

- 3

may. of necessity, be a longer term goal, in view of the time requirements,logistical difficulties and costs of comprehensive unaczounted-for watermanagement programs, which include leak detection and repair programs.

1.08 The water supply and sanitation sector also faces a range of otherinter-related issues. These can be sa-rized as the need for improvedgeneral management, operational efficiency and maintenance, cost recovery,financial management and information systems, including accounting. However,these are achieving increasing recognition and attention. There is increasingacceptance, in urban areas, of the practice of consumer metering andvolumetric water charges, as a means of both controlling the wastage of waterand of providing for equitable resource mobilization. There is likewise, forurban areas, increasing acceptance of the principle of full cost-recoveryexcept in the case of some low-cost sanitation programs which are explicitlytargeted toward the poor.

1.09 Sector Organization: Under India's federal constitution, heprimary responsibility for both water supply and sanitation and for localgovernment, which is the primary channel for urban management, rests with thestates However, the Center has considerable influence through the approvalprocess for state development plans and through several Central levelinstitutions. In recognition of the need for an urban policy focal point atthe Center, the former Central Ministry of Works and Housing was renamed theMinistry of Urban Development in September 1985. Other urban-oriented Centralagencies ineli-de the Housing dan U7rban nle h,9nmpnt nornnration ef Tneia(HUDCO) and the recently-formed National Housing Bank.

1.10 The Central Public Health and Environmental Engineering Organization(CPHEEO) under the Ministry of Urban Development is the central agencyspecifically concerned with urban water supply and sanitation. It provides amainly technical review of major investment proposals from the states,provides certain guidance and publications on design standards, and assistswith the coordination of some aspects of personnel training for the sector ona nation-wide basis. Additionally, GOI is in the process of forming aNational Infrastructure Finance Corporation to provide financial and policysupport to state governments and sector agencies.

II. THE SECTOR IN ANDHRA PRADESH AND HYDERABAD

The State of Andhra Pradesh

2.01 The proposed project would be the first for the Bank in this sectorin the state of Andhra Pradesh (AP), which is India's fifth largest in area(277,000 kM2) and fifth largest in population (53.6 million - 1981 Census).

2.02 AP is in south-east India and borders the Bay of Bengal. Thestate's boundaries have been largely determined by linguistic considerations;the dominant language is Telugu. About 67% of the mean annual rainfal of 894m is received during the June-to-September south-west monsoon and a further25% in the October-to-December north-east monsoon. AP is drained by the twomajor river systems of south-east India, the Godavari and the Krishna.

Together, these account for an estimated 84% of the utilizable surface waterof AP. The Musi River, which flows through Hyderabad, is a tributary of theKrishna. The Manjira River, the source of the additional water to be suppliedunder the proposed project, is a tributary of the Godavari. Nearly half thestate (47%) is considered to be chronically drought-affected.

2.03 In the period 1971-81, AP's average annual total population growthrate of 2.1% was slightly less than that for India as a whole - 2.3%.However, AP's urban population growth rate between 1971 and 1981 was 4.1%,compared to 3.9% for India's urban population as a whole. AP's level ofurbanizatlo in 1981 was 23.3% of the state's population, or 12.5 millionpeople. This proportion of urbanized population equalled that which prevailedfor India as a whole. There are 234 urban areas in AP. However, the 20 ClassI cities - which, by definition, have a population of more than 100,000 -account for 50%, and the Hyderabad Metropolitan Area alone accounts for 23% ofthis urban population.

2.04 Within the state government, the Department of Housing, MunicipalAdministration and Urban Developwent (DHMAUD) has the general responsibilityfor urbgn local government and urban develooment. Within DHMAUD, a PublicHealth Engineering Department (PHED) has a general responsibility foroversight, planning and sometimes also the engineering and implementation ofurban projects in the water supply and sanitation sector.

2.05 Urban local government is organized, by decreasing community size,as 14;LWiWl4pa. Corporations, Municipalities, and Panchayats. Within a MunicipalCorporation, there are three statutory levels of authoritv. The first is theelected Council (often referred to as the 'General Body"), presided over by ahayor, elected at large. The second is the Standing Committee (of the GeneralBody) and the third is the Commissioner - the Chief Administrative Ofticer ofthe Corporation and a state government appointee. The largest source offinance of municipal corporations and municipalities Is their authority to taxreal property; the second source is compensation under the Entertainment TaxAct. There are modest annual state grants. The provision of urban watersuo2ly. sewerage and sanitation services is usual'ly within the localgovernment mandate in AP. However, this has not been the case in Hyderabadwith respect to water supply for some time (para 2.12), and GOAP has recAntlychanged the municipal responsibility with respect to sewerage in Hyderabad(para 2.15).

2.06 AP's Seventh Plan for 1985-90 totals Rs 7500 crores (aboutUS$5.8 billior). The water supply and sanitation and the housing and urbansectors account together for some 13% of the total plan allocation, orRs 982 crores (about US$755 million). The water supplv and sanitation sectoralone accounts for 6% of the total plan allocation; this is a high proportionand indicative of the importance the AP government attributes to the sector.

2.07 A comparison of AP's achievements under the UN-declaredInternational Drinking Water Supply and Sanitation Decade 1981-90 (IDWSSD)with those of India as a whole reveals:

(a) the proportion of the urban population served by water supply in1981 in AP (55.3%) was much lower than for India as whole (72.3%);

- 5 -

(b) the proportion of the urban population served by sanitation in 1981in AP (11.2%) was less than half of that for India as a whole(25.1%);

(c) between 1981 and 1985, achievements in urban water supply andsanitation did not keep pace with population growth in AP. By 1985,the urban population served with water supply in AP had declined to52.1% and with sanitation to 10.9%, whereas modest gains wereachieved in India as a whole (para 1.06).

The Hyderabad MetroRolitan Area

2.08 Hyderabad is located about 300 km west of the Bay of Bengal, in aninland upland area on the Deccan Plateau. The elevation is about 540 m abovemean sea level and the terrain is undulating with some exposed rock outcropsand bolder-strewn areas. The average annual rainfall is about 800 am,concentrated in the June-to-September south-west monsoon. The city is drainedby the Musi River, a tributary of the Krishna, and by numerous small tributarydrainage courses.

2.09 The boundaries of the Municipal Corporationi of Hyderabad (MCH)enclose an area of 169 km 2 . Since 1964, the municipal boundaries enclose thepreviously separate city of Secunderabad. However, there is considerablecontiguous urbanized area outside the MCH boundaries, which includes most ofthe area's industrial development but also significant residential, commercialand institutional development.

2.10 Hyderabad is India's sixth largest city. In 1981, the RoRulation ofthe total urbanized area and that of MCH was 2.9 million and 2.2 millionrespectively. It is estimated that these figures will grow to 3.3 million and2.8 million by 1991 and to 6.0 and 4.8 million respectively by 2011.

2.11 Further information on the sector context in Andhra Pradesh and in! Hyderabad is given in Annex 1.

The Existing Water System and Level of Service

2.12 Water supply in Hyderabad has been managed by the HyderabadMetropolitan Water Works (HMWW). While water supply is usually within themunicipal government mandate in AP (para 2.05), HMWW was constituted as a"Board under the AP Hyderabad Metropolitan Water Supply and Sewerage Act of1982. That part of this act giving HMWW sanitary sewerage responsibility wasnever declared effective and this responsibility remained with the MunicipalCorporation of Hyderabad (MCH). This act was repealed, following a chainge ofgovernment in 1983. The institutional name has survived, but HMWW'sprofessional technical staff are PHED officers on deputation, and theorganizational form became that of an agency of GOAP. In fall 1988, thesanitary sewerage responsibility was transferred by GOAP to HMWW.

2.13 However, GOAP has decided to reconstitute a "Board", with acorporate status, to be known as the Hyderabad Metropolitan Water Supply andSewerage Board (HMWSSB), by the Hyderabad Metropolitan Water Supply and

Sewerage Act, 1989, which became effective November 1, 1989. This new Boardhas assumed the responsibility for the management, planning, design,construction, operation and maintenance of wate:: supply and sanitary sewerageand has absorbed HMWW's staff. An important aspect of the concept of HMWSSBis that of financial self-sufficiency. Recent tariff increases (para 5.04)demonstrate some determination on the part of GOAP in this regard, especiallyin light of some public opposition which was compounded by the poor waterservice available (para 2.18).

2.14 The main changes resulting from this new organizational form are:(i) management's reporting to a Board of Directors, who will be mainly or allelected or appointed public officials, rather than directly to GOAP; (ii) agreater degree of operational autonomy; and (iii) the opportunity to develop amore commercial approach to management of the water supply and sewerageservices.

2.15 In fact, HMWW assumed the responsibility for all aspects ofHyderabad's sewerage system in fall 1988. At that time HKWW, as aninstitution, did not have prior experience with sewerage. However, theprofessional technical staff of both HMWW and those of MCH concerned withsewerage were all PHED engineers on deputation, and GOAP transferred staffappropriately from MCH to HMWW, to provide the experienced resourcescommensurate with HHWW's new sewerage responsibilities.

2.16 The water service area is the 169 km2 within the boundaries of MCH,together with an adjoining urbanized area, which includes the SangareddiMunicipality, 3 industrial townships, 9 villages, 2 university campuses, theHyderabad Cantonment, and miscellaneous other developments. The proposedproject does not include an expansion of the service area for water supply.The population to be served in 1991 is estimated by HMWW to be 3.4 million.

2.17 Hyderabad's present water system dates back to 1923. Presentsurface water sources provide about 450 Mld in non-drought years. This issupplemented by about 40 Mld of groundwater. However, it is believed thatpresent private and public groundwater withdrawals approach, or may evenexceed, the annual reliable recharge. Surface water is supplied by gravityfrom an impoundment on the Musi River, by gravity from an impoundment on theMusi s Esi River tributary, both about 10 km from Hyderabad, and by pumpingfrom a third impoundment on the Manjira River, some 56 km from Hyderabad.Water from these sources is treated and transmitted to mainly surface servicereservoirs located on hills within Hyderabad and distributed through aconventional distribution network to 174,000 private connections and 3400public standposts. Additionally, there are 'bulk' supplies to 31 industrialconsumers and a further 25 'bulk' consumers including other municipalities andvillages, housing developments and institutions. About 90% of HMWW's privateconnections are metered. Water charges are made under volumetric basisaccording to a progressive tariff structure. Tariffs have recently beenrevised upwards substantially (para 5.04); this indicates AP's support for theprinciple of cost-recovery.

2.18 In normal years, these sources would viel a gross supply to MCH ofonly 102 liters per capita per day (lcd) for the estimated 1991 population ofMCH, which is quite inadequate. This amount must meet the city's

institutional, industrial, commercial, and domestic demands, as well as systemleakage losses. Thus, the inadequacy has implications for the city's economyas well as for the health and convenience of its residents. This figure canbe compared to the 218 lcd available in Delhi, the 191 lcd available inCalcutta and the 158 lcd available in Bombay. However, Hyderabad is in adrought-prone area, and the successive droughts of the years 1984 through 1987exacerbated the problems of inadequate water supply. This has had aparticularly marked effect on the supplies available from the impoundments onthe Musi and Esi Rivers. One consequence was to reduce the gross supply forHyderabad to a mere 44 lcd. Another was the curtailment of the domesticsupply within MCH to a period of two hours every second day.

2.19 In these conditions, there has been much public and private effortto develop gXn%ndwater in the Hyderabad area. However, it has been concludedthat the groundwater resources of the area are limited, and that presentlevels of exploitation are approaching the full potential. Accordingly,groundwater is expected to play only a small, albeit significant, role inwater supply for Hyderabad in the future.

2.20 The Rroposed proiect, together with ongoing works, will increase thetotal availabile supply from 490 Mld to 760 Mld, and yield only about 87% ofHHWW's estimate of the 1991 demands within MCH. Preliminary studies have beenmade by a GOAP-appointed expert committee of possible sources of furthersupply beyond this vroiect. Various schemes have been outlined. All involveabstraction from either the Godavari or the Krishna rivers. All have highinvestment costs in the range of Rs 438 to Rs 1421 crores (US$273 to US$888million) and have high operating costs resulting from pumping lifts in therange of 300 m to 500 m. Thus, there is a particularly strong case inHyderabad for sharply progressive water tariffs not only to permit a basicsupply at a reasonable cost but also to provide a strong deterrent to waterwastage. Similarly, there is a need for aggressive unaccounted-for watermanagement, including leak detection and repair.

2.21 Annex 3 describes the existing water system in more ditail, anddescribes the basis for the definition of the component of the proposedproject which will deal with rehabilitation and strengthening of the existingwater system.

The Existing Sewerage System and Level of Service

2.22 Since inception until Fall 1988, Hyderabad's separate sanitarysewerage system has been the resRonsibilitv of the Municipal Corporation ofHyderabad (MCH). It is now the responsibility of HMWSSB (paras 2.13 to 2.15).

2.23 The existing sewerage system in Hyderabad extends over about 60% ofthe area of MCH and includes localized extensions outside the MCH area, mainlyto serve industries. The sewerage service area has an estimated population of2.1 million. The proposed project does not include an expansion of thissewerage service area. Both within and outside the sewerage service area ofMCH, there are dwellings without latrine facilities. The low-cost sanitationprogram of the project will address the needs of these people through theconstruction of low-cost, pour-flush, water-seal latrines connected to thesewers where available and otherwise using twin-pit technology.

-8-

2.24 Since the original system's construction in 1931, the collectionsystem has been extended considerably as the city has grown. The originalsystem was designed to serve a population of 468,000 over an area of about 87km2. The present system serves an estimated population of 1.3 million over anarea of 105 km2 . This growth has resulted in severe overloading of some partsof the system, and the surcharge overflows to open surface drains and naturalwater courses. This results in serious and evident pollution, and risk topublic health. The system is almost entirely within MCH boundaries, exceptfor some localized extensions outside to serve mainly industrial development.

2.25 There are now about 180,000 sewer system connectiona to branch andtrunk sewers in the 15 drainage districts dictated by topography. The trunksewers connect to interceRtor sewers on each of the north and south banks ofthe Musi River. The south interceptor eventually connects to the northinterceptor through an inverted syphon crossing the river, and from thisjunction the flows are easterly for some 3 km to an existinz sewage treatmentplant at Amberpet. This treatment plant is defunct, but a rehabilitationproject has been initiated by MCH, and the capacity is being increased from 53Mild to 114 Mld. At present, untreated raw sewage is disposed of by irrigationuse on a reserved area of 200 ha, where cattle fodder is grown.

2.26 Although the existing system is overloaded, it is, in another sense,under-utilized in so far as many dwp ings within the sewered area are notconnected to the system. Within tbF sewered area, there is widespreade-id"nce of direct sanitary waste eischarges to natural water courses and openstorm water drains, which is compounding the pollution problem and healthrisks noted in para 2.24.

2.27 Annex 4 contains a more detailed description of the existingsewerage system and the review which has led to the definition of thecomponent of the proposed project which is concerned with rehabilitation andstrengthening of the existing sewerage system. This will address the twinproblems of inadequate capacity and of under-utilization of the existingsewerage system.

Prior and Ongoinz Sanitation Programs

2.28 Prior experience in Hyderabad with low-cost sanitation has beeninstitutionally concentrated in the Urban Community Development Department(UCDD) of MCH. UCDD was created in 1967 and, through its more than 20 yearsof experience and its "people-oriented" community participation approach, hasgained a substantial reputation for its work and, moreover, gained theconfidence of poorer groups and slum dwellers.

2.29 In India, the low-cost sanitation technology of choice in both urbanand rural application has been the twin-pit, pour-flush, water-seal latrine.With vigorous promotion and financial support from GOI, there have beensubstantial gains in the acceptance and adoption of this technology,especially in urban areas. This technology provides a low-cost alternativefor safe excreta disposal as compared to conventional water-borne sewerage.

- 9

2.30 In the period FY 1983/84 to FY 1987/88, UCDD has executed a broadly-based slum iMorovement project including a low-cost sanitation component,which has received support from ODA-UK. The original target for this phase ofthe project was the construction of 20,000 latrines. By November 1987, 8000had been completed and a further 4000 were under construction. This programincludes the conversion to pour-flush, water-seal technology of what are knownlocally as 'basket-type" latrines. Waste material from Obasket-type latrinesis removed manually by 'scavengers', and this latrine type is most unhygienicfor the users, the scavengers and the general public. It is estimated thatthere remain about 16,000 'basket-typew latrines in MCH. A further phase ofthis ODA-supported project is anticipated, including, inter alia, a further20,000 low-cost sanitation units.

2.31 In MCH, there are about 500 designated slums with a population ofabout 100,000 households, or more than half a million people, which is nearly20% of the total population of MCH. Many of these slum-dwellers and someoutside these designated slum areas do not have a household latrine. Thesepeople must resort to open-air defecation, which contributes further to theunsanitary environmental conditions described in para 2.24. it alsocontributes to the apparent under-utilization of the existing sewerage systemdescribed above in para 2.26.

2.32 Annex 5 describes past low-cost sanitation program experience inHyderabad in more detail, and the basis for thLe definition of the low-costsanitation component of the proposed project, which will be managed by HMWSSB.

Issues and Government Strategy

Water SUPD1_Y

2.33 Level of Service: The major issues in Hyderabad's water supplyrelate to the level of service (para 2.18), which has several aspects: (i) thequantity of water available to consumers; (ii) the vulnerability of thesupply to drought conditions; and (iii) the provision of an intermittentservice, which has implications for the reliability of water quality. Anywater wastage and all leakage from the water supply and distribution systemscompound the level of service problem in all these aspects.

2.34 GOAP has started to address these issues through the ongoing ManjiraPhase III, Stage 1 project, which is planned for completion in 1989, andthrough initiatives related to the proposed project. GOAP has also initiatedstudies of the works requirements to meet Hyderabad's longer-term water needs(para 2.20). The works envisaged through each of these measures will all bothincrease the fundamental supply available and reduce the vulnerability of thesupply to drought conditions.

2.35 Intermittent Water Distribution: The inadequacy of Hyderabad'sbasic water supply quantity, compounded by system leakage, which couldeconomically be reduced, forces an operationpl procedure which gives only anintermittent provision of water through the distribution system. This, whilenot unusual in India, nor indeed in South Asia, is nonetheless mostundesirable on several counts. Firstly, when parts of the distribution systemare not under pressure, there is the risk of the ingress of polluted shallow

- 10

groundwater into the system. This brings obvious health risks and potentiallynegates the benefits of the water treatment processes carried out prior todistribution. Intermittent supply also encourages a highly uneconomic privateinvestment in on-premises water storage by those who can afford it, but thismeans of realizing the convenience of a continuous household supply is notavailable to the poor.

2.36 Water Wastage: In India, high levels of water use, which are beyondreasonable needs and can therefore be considered water wasted, are a conmoncontributor to the causes of the intermittent distribution practice describedabove. However, in Hyderabad, some 90% of Hyderabad's water connections aremetered, and the charges to consumers for water are based on the volume ofwater consumed. HMWW also maintains a meter testing and repair workshop andall meters are tested prior to their installation. For domestic consumers thetariffs are progressive - the charges per unit volume increase with increasingamounts consumed. These policies and practices are critically important inpromoting the conservation of water and in minimizing wastage.

2.37 System Leak Detection and Repair: To control system leakage, HMWWhas for several years had a leak detection and repair cell within itsorganization. However, its efforts were diluted during the 1984 through 1987drought years, when the staff resources were diverted to drought mitigationefforts. Furthermore, although there is the apprehension that the leakageproblem may be substantial, the resources to fully quantify the problem and todevelop a systematic approach to its resolution have not been available toHMWW. Accordingly, and apart from prompt measures to repair visible leakswhere possible, HMWW's leak detection and repair efforts to date have beenlargely ineffective.

2.38 Other Unaccounted-for Water Management: Apart from the control ofmeter accuracy (para 2.36) and system leakage (para 2.37), the other aspectsof 'unaccounted-for' water can include inaccurate or corrupt meter reading andillicit connections. Efforts to come to grips with these issues are hamperedby a cumbersome manual billing and collection system, by a lack of internalaudit procedures related to meter readings and by inadequate system maps andrecords.

2.39 Operation and Maintenance: There is a need for a more systematicapproach to some aspects of water system operation and maintenance. Theseaspects include, for example, the operation and maintenance of water treatmentplants and of pumping scations, as well as leak detection and repair in thedistribution system, and the replacement and repair of leaking serviceconnections. This issue is linked to the lack of any systematic personneltraining program and to the lack of management information systems which linkoperational and financial data and produce information in a timely manner foruse as a tool in management decision-making.

Sanitarv Sewerage and Sanitation

2.40 Inadeguate Sanitary Sewerage System Ca2acity: The present sanitarysewerage collection system capacity is inadequate, and sewage flows in excessof the capacity discharge to open surface water drains and to natural watercourses; this results in serious environmental pollution and risks to public

- 11 -

health. MCH has prepared a 'Master Plan' for the rehabilitation,strengthening and extension of this collection system, including therehabilitation of a treatment works which has been defunct for many years,which has resulted in untreated raw sewage being presently used forirrigation; this situation has also brought some health risk. Fundingconstraints have seriously impaired progress with the implementation of theMaster Plan, but some improvements to the collection system and thereconstruction of the defunct treatment works are ongoing.

2.41 Sanitarv Sewerage System Under-utilization: Although overloaded,the sanitary sewerage collection system is at the same time under-utilized inthe sense that many buildings within the sewered area are not connected to thesystem, but discharge their wastewater directly to open surface water drainsand to natural watercourses, further compounding the health risk andenvironmental pollution problems referred to in para 2.40.

2.42 Lack of Household Latrines: Both inside and outside the seweredarea of Hyderabad there are many households, generally concentrated in slumareas, which are without household latrines. The residents of such householdshave no alternative but to resort to open-air defecation in public streets andlanes and vacant urban lands, which still further compounds the problems ofenvironmental pollution and risks to public health (paras 2.40 and 2.41).MCH, through its Urban Community Development Department, is implementing alow-cost sanitation program under the auspices of an ODA-assisted slumimprovement project. These efforts represent an important step in theresolution of this problem and have permitted the accumulation of relevantexperience in MCH. However, because of their scale, they represent only apartial solution to the total problem.

2.43 Regulation of Sewer Use: Industrial pollution control in Hyderabadand environs is institutionally the responsibility of GOAP's Pollution ControlBoard, but the processes for the administration of regulations are in anevolving phase. Meanwhile, there is evidence that some industrial wastes,because of their chemical and physical characteristics, are causing corrosionto the pipes of the municipal sewerage system. There is, therefore, a needfor regulations concerning sewer use, which, as a minimum, would require thepretreatment of those industrial effluerzs which may cause damage to the sewersystem or impair the sewage treatment processes downstream, but which wouldalso control the discharge of wastes which may cause hazardous conditions forthe general public or for workers in the sewerage system.

2.44 Operation and Maintenance: While under the jurisdiction of MCH,operation and maintenance of the sewerage system, and especially the treatmentfacilities, have not been adequately funded. This may be partly a result ofthe way priorities have been set, but it is no doubt also the consequence ofthe more general weakness of the financial resource base and taxing authorityof MCH. As with the water system, there is also a lack of any systematicpersonnel training program, and a lack of management information systems toprovide operational and financial data and analysis in a timely manner to aidmanagement decision-making.

- 12 -

Financial Issues

2.45 CaRital Financing: In recent times, the financing of capitalimprovements to Hyderabad's water supply and sewerage systems has been largelythrough GOAP grants to H1WW and MCH, although there has been some financingthrough loans from the Life Insurance Company of India to MCH in the case ofsewerage system improvements. With this dominantly grant-financing mechanism,the principle of capital cost recovery has been essentially overlooked.

2.46 ODeration and Maintenance Financing: Over the past few years untilrecently, in the case of water supply, HMWW's revenues from the sale of waterand other consumer charges have not met the costs of operation andmaintenance. This has been partly the result of the drought conditions andthe shortage of water available for sale. It has also been partly the resultof tariffs which were previously too low and of a level of revenue collectionwhich leaves room for improvement.

2.47 However, in Hyderabad, GOAP instituted water tariff increases ofover 100 percent for industrial and commercial users effective December 1,1986, and of some 150 percent for residential users were instituted December1, 1987 (para 5.04). Furthermore, about ninety percent of Hyderabad's waterconnections are metered, and the charges for domestic water consumption areaccording to a progressive tariff structure. The overall tariff structureprovides for some cross-subsidy from commercial-industrial users and from themore well-to-do larger domestic consumers to the poorer groups, who obtain amodest but adequate quantity of water for small and affordable charges. InAndhra Pradesh but outside Hyderabad, GOAP has, since early 1986, instituted aseries of policies related to urban local government participation in thefinancing of new investments in public water supply s'jstems in forty of thelarger urban areas of the state.

Institutional Issues

2.48 The organizational form of HMWW, which was that of an agency of GOAP(para 2.12), has hampered the development of a corporate morale and loyalty.In addition, the reliance on GOAP grant funding has constrained thedevelopment of a sense of autonomy and full responsibility for the managementof all aspects of the provision of a safe, reliable water supply forHyderabad. Accounting systems in HMWW follow traditional government cashaccounting practice, whereas a more "commercial" approach, including themaintenance of full capital accounts and the preparation of balance sheets, ismore appropriate to the needs of what is essentially a utility organization.

2.49 The responsibility for sanitary sewerage has been with MCH, wherethis service's claims for manpower and funds have had to compete with thewhole array of other municipal government services, and within an organizationwhose funds and fund-raising capacity have been inadequate for its manifoldpurposes (para 2.44).

2.50 The institutional rearrangements (paras 2.12 to 2.15) will providethe opportunity for increased institutional and personnel accountability, andfor increased autonomy and commercial orientation.

- 13 -

The Bank's Sector Role and Assistance Stratery in India

2.51 The Bank's strategy in the water supply and sanitation sector hasbeen to seek: (a) the efficient utilization of resources through appropriatetechnology choices and sound engineering design and construction; (b) animnrovement in institutional cayacity in relation to (a) and also in relationto the managenent of operation and maintenance and of finance, including theintroduction of 'coumerciall accounting; and (c) oricing nolicies whichencourage water conservation, render the services affordable to as many of thepoor as practicable, ensure adequate financing of current expenditures andproduce internally generated funds for further investment.

2.52 The Bank Group began supporting water supply-sanitation projects inIndia in 1974 and through the end of FY 1989 had approved eleven projects inthis field, which account for US$804 million in IDA Credits and US$93 millionin World Bank Loans. Most of the further eleven urban projects, accountingfor US$990 million and US$44 million respectively in Credits and Loans, havecontained substantial components of water supply and sanitation investments,not only for on-site infrastructure to serve slum-upgrading, area developmentand sites and services components, but also for off-site and city-wideinfrastructure improvements. A schedule of these projects is in Annex 2.

2.53 Of the twenty-two water-sanitation and urban projects, eleven havebeen single-city projects, of which ten have been in the metropolitan citiesof Calcutta, Bombay and Madras, which together account for about 15% of thetotal urban population of India; the remaining single-city project was inKanpur. In more recent years, there has been some shift of focus to includestate projects for a selected group of towns in a state. To date, eleven suchprojects have been approved in eight states; these states together account forabout 60% of the urban population of India.

2.54 Five of the urban and six of the water supply-sanitation projects,which were Bombay I, Uttar Pradesh, Bombay II, Punjab, Maharashtra andRajasthan, have been completed. A review of the project completion reports I/indicates that the physical works financed by the Bank Group have beenimplemented largely satisfactorily, although some implementation delay hasbeen experienced in most projects. Delays have been variously the result offailures to provide local currency funding, delays in procurement approval,difficulties in obtaining scarce commodities, land acquisition and relateddelays in the courts, inadequately detailed project preparation and undulyoptimistic scheduling. However, efforts to reduce costs through the judiciousselection of service standards, through the assessment and comparison ofalternatives during project preparation, and through the use of lower-costtechnical options have been increasingly successful. More recent projectshave included programs to develop, test and promote low-cost sanitationtechnologies with assistance from the World Bank/UNDP Technical AssistanceGroup (TAG). The major concern on the physical side has been the

1/ These are Nos. 5875 (October, 1985), 6242 (June, 1986), 6935 (September,1987) and 7202 (AprJl 1988) f3r four of these projects. Those forBombay II (June, 1989) and Rajasthan (April, 1989) are not yet formallyissued.

- 14 -

unsatisfactory standards in the operation and maintenance of the completedfacilities; this problem in directly linked to institutional and financialissues.

2.55 Past groiects have been less than fully successful in achievinginstitutional, financial or economic goals. These goals generally havefocussed on improving project and operational management information systems,improving financial accounting and reporting systems, and achieving full orsubstantial cost recovery on capital investments. The Government of Indiashares the Bank's concern over this and collaborated with IDA through theerstwhile Central Ministry of Works and Housing and the relevant stategovernments in a review of past performance and in the preparation of theX22= 'Water Supply and Sewerage Projects Financed by the World Bank in India- Financ4al and Institutional Performance"; 1986: Bank Report (046-IN. Thisreport reviews five aspects of Bank-assisted projects which had the objectiveof increasing operational efficiency. These were: (i) Leak Detection, (ii)Billing and Collection, (iii) Tariff Setting, (iv) Accounting, and(v) Management Information Systems. Under the broad heading of "InstitutionalStrengthening' this report also reviews achievements in relation to the threegoals of (i) increasing the accountability of sector agencies and theircomponent organizational units and individual personnel, (ii) enlarging thesector organizations' capacity to recruit and develop staff and (iii)encouraging greater initiative in the sector organizations by greater autonomyand a more commercial orientation.

2.56 This review revealed that failure to implement some agreedinitiatives has contributed to inefficiency and to inadequate cost recoveryand thus under-financing of operations and maintenance. The difficultiesappear to have resulted from several inter-related problems. First, theinitiatives themselves were often too ambitious. Second, the reforms and thedetailed operating procedures needed to implement them have not always beenthoroughly developed or adequately presented. Third, realistic schedulesneeded for implementing new procedures have not always been planned orcoordinated with the training and technical assistance needed to facilitatedesired changes.

2.57 Moreover, there has been some history of opposition to water tariffincreases and the metering of consuoption, arising in part from a traditionalview that water services are a "public good" which should be provided free ofcharge. In some cases, politicians have been reluctant to approve watertariff increases before service improvements have been fully realized.However, there is a growing recognition among policy makers and the publicthat, in order to extend water and sanitation services to the majority of thepopulation, a large proportion of the needed funds must be generated throughdirect user charges. This principle is now well recognized in AP and inHyderabad.

2.58 This review also pointed out, however, that there is a growingacceptance by the Government of India and state governments of the fundamentalobjectives incorporated in the Bank's sector program, and that there are goodprospects of achieving improved sector performance over the medium to longterm. To move in this direction, however, a number of measures are needed.First, legal covenants should be used only if the action is critical to

-15 -

project success. Second, the Bank can realize greater practicability andflexibility by placing greater reliance upon 'Operational Action Plans",agreed from time to time, and revised in the light of experience and changingconditions. Third, persistent supervision of ongoing projects andstrengthened sector policy work will be required to achieve this performance.Fourth, the attitudinal and institutional adjustments under way in the sectorwill take time and project objectives need to be formulated accordingly. Inaddition, follow-up projects and the extension of projects to other states areneeded to maintain continuity and consistency in the sector policy dialogueand to pursue the issues now being identified in more detail. At the sametime, the Bank will have to seek more active participation by centralgovernment agencies as policy intermediaries for dissemination of sectorpolicies and experiences to the different state governments.

2.59 The proposed Hyderabad Water Supply and Sanitation project has beenprepared and appraised with these lessons of experience in view (paras 2.54 to2.58). To aid efficient and prompt procurement, the Bank reviewed beforenegotiations bid documents for project elements on the critical path andmodel documents for use throughout the project. The technical assistance,included in the project, addresses the issues of investment and operationalefficiency. To further aid prompt commencement, outline terms of referencehave been prepared for all the technical assistance included in the project(Annex 8). The technical assistance in the areas of management informationand accounting systems includes operational assistance in the implementationof the findings and recommendations of studies. The terms of reference forunaccounted-for water management, including water system leak detection andrepair, include the analytical framework for the prioritization of parts oftie system for attention, and the basis for justification of repair.

IIII THE PROJECT

Project Origin and Rationale for Bank Supoort

3.01 The project, as originally presented to the Bank Group forconsideration, was the "Manjira Phase III Stage 2" project, which essentiallytwins the corresponding Stage 1 project, now under construction and scheduledfor completion in 1989. Each stage is planned to provide an additional135 Mld of treated water to various points on the outskirts of Hyderabad. Thesource of water for both Stages 1 and 2 is the Singur Dam, which has beenfinanced separately by GOAP and whose construction by GOAP's IrrigationDepartment was substantially completed by June 1989. During projectpreparation the project scope has expanded to include complementaryinvestments in the rehabilitation and strengthening of the existing watersupply and sewerage systems and a low-cost sanitation program, and technicalassistance and training for institutional strengthening. The scope of theproject has also been expanded to include the resettlement and rehabilitationof those people displaced by the Singur Dam and Reservoir. For the sake ofassurances regarding the structural safety of the Singur Dam, GOAP hasappointed a Dam Review Panel (DRP).

- 16 -

3.02 The proposed project would improve the water supply and sewerage*ervices provided in Hyderabad, the sanitary conditions, and the environmentwith their associated risks to health. 'hus, it would address the lendingissues described in Section II. The Bank's involvement would: (a) assist thefinancing of the works, (b) help develop needed policy and financialdiscipline, and (c) introduce personnel development and training on asystematic basis to improve operational and administrative efficiency. Theproject will have a useful demonstration effect because Hyderabad is the statecapital and an important city. The project, therefore, fits well with theBank's and government's overall aims of promoting efficiency, improvedresource mobilization and allocation, and institutional development.Additionally, the Bank's involvement will assist measures to ensure thepresent and future safety of the Singur Dam, and the equitable treatment ofthose whose property and livelihood are affected by the flooding of Singur DamReservoir. The following table summarizes the planned impact of the project.

-17-

TAILE 3.1 PRESENT SITUATIoN AUD PROECT IPIOVEMENTS

PRESENT SITUATION POST-PROJECT CONDITION

WATL3ER "L1 WithOngoing

1. * ross sUPPlY Presen .cJa..a) Total service area J/

rnon-dc-ousht ytea 14 led 18 Led 224 lcd- droumht years tapprox.) 96 led 137 led 177 lcd

b) Within MCII Area °/n rwn-drouomt years 102 Led 152 Lcd 201 led

-drought yers (approx.) 44 td 94 lcd 143 led

2. Vulnerobility of Very vulnroble. within MCH the Le vurwlnrablo. Within NCH thesupply to drought drought year supply is only about dreuaht year supply mitl be about

402 of the supply avoilabLe in non 70X of the supply evailable In non-drought years. drought years.

3. Distribution Inadequate capacity to distribute WILL be adequate, and also capableSystem future supply quantities at adequa te of inter-zonal transfers of water

pressures. within the system, which reduces thedrought vulnerability of soa_ partsof the system.

4. Maps and Records Very inade"uate for good mintenance Cooplete omps and records of theand for unaccounted-for water system will be prepared with TAmanagement purposes. included in the project. These will

also be helpful in reducing there.er of illicit connections.

S. Leek Detection n,d Lack of bulk m_ters and aggregated With TA included in the project, aRepair consumption records make it long-term progrem will be developed

fopossible to quantify the amo4nt of for ureccounted-for waterwater lost. Inadequate maps nd management, including leek detectionrecords of the system make it and repair. The highest prioritydifficult to effect repairs. components of this program witl bePresently only visible Leaks are effected during the implementationrepaired where practicable, of the project.

6. Operation and Needs strengthening, especilLy with O&h will be improved by the strongerMaintenance (OIN) respect to water treatment plants, financial position of IlWNSSS,

pumping stations nd sonme apets arising from the rew cost-recoveryof the distribution system. policy, and its more efficient

mwaement urder the neworganizational arrengement, bothsupported by the project during itsImplementation. OIN will also beinprowved through a systematicpersormel training progrm avnd thepreparation of ONM mnuwals for useas a day-to-day reference guide andin the personnel training providedunder TA of the project andsupported by the project during itsimplementation.

1I Estimated 1991 population of the total service area ls 3.40 million.

3/ Estim_ted 1991 popuLation within the MCM area is 2.n3 million.

i Is -

TABLE 3.1 PRESENT SITUATION ASD PiOJECT I Ml'E S (CONT6D)

KEY TOPIC PRESENT SITUATION POST-PROJECT CONDITON

SAITARY hWE SITATIN

7. Collection System Quite inadeuate. The systo is Poet-project capacity will beCapacity overLoaded *nd overtfLows to open adse te, allowing for fuLl system

surface wter dramn sid to natural utilization within tho souwrad areawatercoursas, causing nwirr ivntal and for further system and urbanpollution and health risks, growth. Redaed pollution nrd

hoelth risks.

8. Collection Systsm Many buildings within the scwerod A mach iigher level of utilizationUtilization *rea ro not cormvectad to the system through the provision of 22,000

wd discharge wastewater dir etly to additiornl sewer cormoctionr uderopen srface water drains and to the project. Reduced wnvirowA_ntelnatural watercourse, canuing pollution and health risks.erwirnmenrtal pollution id healthrisks.

9. Treatment The existing sewg treatment plant The provision of additional(53 MId) has become defunct duo to treatment capacity (180 MId) widerinadbquate maintenance. Rw sewage the project and the ongoingis uaed for irrigation. There are rehabilitation of the existing planthealth risks involved, by MCH (114 Mid) witl give adequate

treatment capacity, aLlowing forfull system utilization and for

further system and urban growth.Treated effluent will be used for

irrigation. Reduced health risks.

10. Household Latrines aNwy of the poorer households are Most of the poorer households will

without househo;d Istrine". The have a household latrine, provided

reidents must resort to open-air under the ODA-assisted Slumdefecation. Environmental pollution loprovement project or by the 4C,000

and health risks result, latrines included in this project.Significant reduction inenvironmental pollution and healthrisks.

11. Sewr-use At present, there are no sewer-use Sewer-use reguLations will beRewulation regulations. So*.. of the industriaL prepared with TA included in the

w"ates being discharged to the project. The objective i' tosewerage system are causing control the discharge into the

corrosion of the sewrs. sewers of wastes which corrode thesewers or which have a deleteriouseffect on sewage treatment or on thesafe disposal of treated effluent,or cause conditions in the sawersthat may be hazardous zo thoseworking on sewer system maintenanceor the general public.

12. Operation and aIM ha ben under-funded and OL will be improved by the strongerMaintenance (OIM) inadequate and on consequence is financial position of HNWSSB,

the defunct existing sewage arising froem the new cost-recovery

treatment plant. policy, and its more efficientmanagement under the neworganizational arrangement, both

supported by the project. OSM wilL

also improve through a systeemticpersonnel training progrm and thepreparation of MMN manuals for useas a day-to-day reference guide and

in the personnet training providedunder TA of the project.

- 19 -

TAILE 3.1 PRESENT SITUATION AND PROJECT IMPROVEMENTS (CONT O)

1AMAGEMENT. FINANCE.ACCOJNTING ANO PERSONNEL

13. Accounting System Cah bsd nd m_intained miutlly. WiLL be mad more efficient by aCamrot gnerate financial computerized syst_m and personnelinformation for use in management training, designed wnd introduceddecision-making in a t:eely miner. with TA included in the project. (A

copa nent of an Ipproved manwapeontinform_tion system.)

14. iLLing *nd The billing systm and the cansuomr A computerized system for theCaollction receivable records are maintained maintnawice of conmser accounts,

mansutly. Collectiono are about and persoelmt training In its use,70X. An aggregte picture of the witl be designed and introduced withposition w* trends Is not 9gnerated TA provided under the project. Thisby present system. will permit morc efficient retrievat

and ag9regtion of key data, whichwiIt aid a better levwi ofcollection.

15. reneral "anagewhret dlnpered tm the tack of timely data 'ilt be iDrovel bf a covnpiterizedw'd analysis of nge'tioral and nqogement into "tioe system andfirncial data personrel traininq In its use,

designed and intrx$u:rd withi rAincluded in the prv e*t,

16. Tariff Reviews Current tariffs are at an Reviews of the level 2nd structureappropriate Level because of of tariffs will be condictedsubstantial recant increaes. annually in context of mediun-termNowever, the review process has been financial projectiors (pars 5.12 andad-hoc and at sbout three to four Operational Action Plan - Arnnex 14).year intervals.

17. Cost Recovery In recent years there has boen only There will be full cost-recovery ofpartial recovery of the OIN costs both the irvestment and O&L costsfor both water supply and sewerage. for both water supply and sewerage.

There will be partial cost-recoveryfor household latrines providedunder the project.

18. Project Management Effectiveness and efficiency are Increased effectiveness andhaepered by the use of simple manual efficiency achieved through the useproject monagement system. of a comprehensive computerized

project management system andpersonnel training, designed andintroduced with TA included in theproject.

19. hateriaeLs Uraystemetic and weak. WilL be strengthened through the useKMnagement of a computerized system andStores Control personnel training designed and

introduced with TA included in theproject.

20. Personnel Training There is no training program or There will be a comprehensive andpolicy. Very Little training is ongoing training program foravailable to personnel. personnel at all levels, desigred

with TA included in the project andsupported by the project during itsimplementation.

. 20 -

TABLE 3.1 PRESEhT SITUTION AND PROJECT IMPROEMENTS CCONT'O)

SINGUE OM SAfETY

21. Dm Review Panel An Independ nt DaM Review Ponel The DORP will be mintoind until the(DIP) hao boen appointed by GOAP in dma is ready to be turned over forcon uttatirn with the ank. operation and m_intenwnce.

22. Dm Safety The DIP has recomnmnded a number of Measures recomwbeded by the DIP willMeasures physical mestureo rlotated to dam be inplmented.

safety NW a ner ofinvetigtion. studies *d testswitch art expected to lead to thedefinition of further physicalmlesures.

RESETTLEMENT AMREHAIILITATION (RSA)

23. Resettle_nt The tUR Progrm Is inrliud.d here as Displaced households will beArrx 7. An stimatod 4,120 reosttled in new villoags providedhauseholds are being displced by with Internrl Infrastructuwe endthe Sinlpmr dam reservoir. access roacsi

24. Rehabilitation As well as those displaced (above), Those affected will be bonefittingadd1itfoal 2,000 ho.a,solds are frm either ir.igation borewlt

having srbrged a part of their sches provided ur'wer the projectlwr but not thei- dweteings. or frm eeployment/eelf-voplayment

training schews provided under theproject.

- 21 -

Project Objectives

3.03 The major project objectives are:

(a) to provide health, economic efficiency and environmental benefitsthrough (i) an increase in the quantity and an improvement in thereliability of the water supply, (ii) an improvement in both thecapacity and the utilization of facilities for the collection,treatment and disposal of wastewater, and (ii'! achieving a majorreduction on the number of households not having safe vjxcretadisposal facilities;

(b) to strengthen the management, technical. and financial performance ofsector institutions;

(c) ensuring that those people involuntarily displaced by the Singur Damand Reservoir have a reasonable opportunity to improve, or at leastma'ntain, their productive base and income-earning capacity, asmembers of a sccially integr:.ced community having social, religiousand physical infrastructure; and

(d) the preparation of future urban and water supply-sanitationprojects.

Project DescriDtion

3.04 The project has six components: (1) the Manjira Phase III Stage 2scheme to transmit, treat, store, and pump 135 Mld of water from the SingurDam Reservoir; (2) the rehabilitation and strengthening of the existing watersystem; (3) the rehabilitation and strengthening (but not extension) of theexisting sewerage system including the provision of additional sewagetreatment works; (4) a household latrine (low-cost sanitation) program;(5) resettlement and rehabilitation of the people involuntarily displaced bythe Singur Dam and Reservoir; and (6) institutional strengthening throughtechnical assistance to and personnel training in HMWSSB. Details of costestimates and implementation schedules are given in Annex 10.

3.05 Component 1 - Manjira Phase III Stage 2. I/ (Base costUS$34.0 million - Rs 543.9 million.) The Singur Dam, located some 67 kmnorth-west from Hyderabad and impounding the Manjira River, is under

1/ Certain works in the Manjira Phase III Stage 2 project have beeninitiated by HMWW prior to appraisal under LCB procedures. These worksare not included in either the detailed project descriptions or theproject cost estimates presented in this report, and are not proposedfor Bank project financing. These prior commitments are for: (i) steelplates from which to fabricate the Peddapur to Singapur pumping main,(ii) 23 km of 1200 mm dia PSC gravity main from Singapur to Osmansagar,(iii) 8.7 km of 1200 mm dia PSC gravity main from Osmansagar toShaikpet, and (iv) a 5.5 Ml surface service reservoir at Shaikpet. Thecost of these goods and works is Rs 18.95 million.

- 22 -

construction by the Irrigation Department of GOAP. It was substantiallycompleted in June 1989, except for the installation of electric powergenerating equipment, which is planned for 1990. This project component willprovide an additional 135 Mld of treated water from the Singur Dam throughabout 83 km of transmission main, of diameter ranging down from about 2000 mmto about 1050 mm, to several existing reservoirs, and to two reservoirsincluded in this project component, of about 12 Ml and 3.6 Ml respectively, onthe outskirts of Hyderabad. Treatment, clear water storage and pumping willbe provided along the main transmission main and the provision of about 14bulk flow meters, to provide information for improved system monitoring andmanagement, is included. This scheme essentially 'twins' the correspondingStage 1 scheme, which is now under construction and planned for completion in1989.

3.06 This component of the proposed project would increase the normallyavailable water supply from 72% to 87% of the 1991 demands of the estimated3.4 million people to be served by the system by tnat time, and o' theconcurrent demands from commercial, iristituitiornal and industrXal consumers.It will also improve the fundamental reliability of the sltpply by increasingthe proportion of the total water produced from a major river basin, whichwill have a proportionally lesser year-to-year variation in flow than thatfrom a smaller basin, and provide seasonal and carry-over storage for theexisting sources for the Manjira Phase I and Phase II schemes on the ManjiraRiver downstream of Singur at the Manjira Barrage. This Component 1 willaddress the water quantity and quality improvement objective described in para3.03(a).

3.07 Component 2 - Rehabilitation and Strengthening of the Existing WaterSystem. (Base costs US$27.2 million - Rs 434.4 million.) The main itemsincluded are: (a) four distribution reservoirs having an aggregate capacityof about 32 Ml and related connection mains; (b) about 22.5 km of trunkdistribution mains ranging down from 1000 to 400 mm diameter to facilitateinter-zcnal transfers of water and improve distribution system reliability indrought years; (c) replacement of 4.5 km of leaking transmission main with1570 mm diameter main from Ramchandrapuram to Bharat Heavy Electrical Limited(BHEL); (d) rehabilitation measures at the four existing treatment plants andseveral pumping stations; (e) provision of three new distribution pumpingstations of about 7, 21 and 35 Mld capacity; (f) distribution systemrehabilitation and strengthening by the repair of existing reservoirs, by thetwinning or replacement or repair of existing distribution mains and serviceconnections and meters of inadequate capacity or in poor condition;(g) provision of 48 bulk flow meters to provide information with which toimprove system monitoring and management; and (h) provision of leak detection,laboratory and other miscellaneous equipment to aid operation and maintenance.More detail of the existing system and this Component is in Annex 3.

3.08 This component of the project will improve the reliability of thewater supply by including means whereby water can be transferred, within thetrunk distribution system, from areas normally supplied by a less drought-vulnerable source to areas served by a more drought-vulnerable source. Itwill also enhance the benefits derived from prior water supply investments andprovide equipment to aid effective and efficient management of operation andmaintenance. This component will address the water supply reliability

- 23 -

improvement objective described in para 3.03(a), and institutional performsnceimprovement objective described in para 3.03(b).

3.09 Component 3 - Rehabilitation and Strengthening of the ExistingSewerage System. (Base Costs: US$24.8 million - Rs 395.7 million.) Thiscomponent is for the purpose of rehabilitation and strengthening (but notextension) of the existing sewerage system. It includes: (a) connection tothe sewerage system of about 20,000 sanitary building drains now discharginginto open storm drainage channels; (b) about 26 km of branch sewers of 200 to300 mm diameter, mostly to twin or replace existing sewers of inadequatecapacity or in unsatisfactory condition; (c) about 43 km of trunk sewers of300 mm and more diameter to an 1850 x 1850 mm box conduit or approximatelyequivalent circular pipe, mostly to twin or relieve existing sewers ofinadequate capacity; (d) up to two large (about 6700 and 1500 lit/s) and up totwo small (about 280 and 80 lit/s) pumping stations: (e) up to four pumpingmains of total length 925 m and ranging in diameter from 250 to 1350 mm; (f) asewage treatment plant comprising an anaerobic followed by aerated lagoonsystem with a terminal settling zone at Amberpet, of about 180 Mld capacity,including its power supply and the provision of laboratorv equipment;(g) equipment for the maintenance of the sewerage system including sewercleaning equipment (one jetting machine and 4 bucket-type machines), vehiclesand closed circuit TV equipment for sewer inspection. More detail on theexisting system and this component is in Annex 4.

3.10 This component will address the objective described inpara 3.03 (a). It will: (a) enhance the benefits derived from prior seweralgesystem investments, including the improved utilization of the exist';.gsewerage system; (b) improve sanitary and environmental conditions; and (c)reduce health risks.

3.11 Component 4 - Low-Cost Sanitation. (Base costs US$2.8 million -Rs 45.0 million.) This component is for the construction of about 20,000pour-flush water-seal household latrines, which would serve about 120,000mostly low-income people, inside and outside of the sewered areas within themunicipal limits of MCH. Some of these latrines may substitute for existingbut unsanitary bucket or dry pit latrines. In sewered areas, these latrineswill be connected to the public sewers. Elsewhere, twin-pit pour-flush water-seal technology will be used; the soil conditions are generally suitable. Ineither case, the costs are similar. There is a need for this number oflatrines, in addition to those provided under the recent and the impendingODA-assisted program (para 2.30). More information on this component is inAnnex 5.

3.12 This component will provide a low-cost means of safe excretadisposal for many of those in Hyderabad, concentrated in the poorer groups.,who do not have satisfactory private household latrines or any latrines at:all. It will address the health risk reduction and environmentai improvementobjectives described in para 3.03(a).

3.13 Component 5 - Resettlement and Rehabilitation. (Base costs US$7.4million - Rs 117.7 million.) This component is to provide for theresettlement of the estimated 4,120 households whose dwellings will besubmerged by the filling of the Singur Dam Reservoir, and rehabilitation,

- 24 -

where required, of these and an estimated further 2,000 households, a part ofwhose lands, but not their dwellings, will be flooded. This componentaddresses the objective given in para 3.03(c). Its definition is based on aRelocation and Resettlement Plan prepared by GOAP with consulting assistancefrom the Centre for Economic and Social Studies (CESS) of Hyderabad, andsubsequent discussion between GOAP and the Bank leading to the agreedResettlement and Rehabilitation Program (Annex 7). The physical works to aidresettlement may be subject to some modification in scope, to be agreed withthe Bank, as a result of evaluation during implementation [para 3.16(c)]. Aspresently estimated, they comprise: (a) the construction, includingmetalling, of about 70 km village approach roads and the metalling of about afurther 20 km of such roads; (b) the construction, including metalling, ofabout 59 km of internal roads in new village sites being and to beestablished; (c) the provision of about 89 borewells and about 20 piped watersupply schemes for village drinking water supply; (d) tha provision of schoolbuildings, includirng about 190 classrooms; (e) rh-. provision of about 23community ha.ls, about 29 general purpose buildings, about 7 primary healthcenters, and about 16 veterinary clinics to serve the resettled population;and (f) the provision of electricity to the new settlements through theconstruction of about 34 km of electric power transmission lines and theinstallation of about 14 transformers.

3.14 The rehabilitation program may also be subject to modification, tobe agreed with the Bank, as a result of evaluation during implementation. Aspresently estimated, it includes self-employment and employment trainingschemes, to be administered on a grant basis, for the benefit of an estimated1524 and 270 families respectively. These are small and marg.nal farmers,previously holding 2 ha or less, who were at or below the poverty line, andwhom it is judged would have difficulty re-establishing a livelihood inagriculture. The rehabilitation program also includes, as present]yestimated, the provision of about 315 irrigation borewells to assist those whoboth were and will be farmers, and free housing for the Scheduled Caste andScheduled Tribe families among the affected population, who have worked asagricultural laborers and who are expected to continue in this employment.

3.15 Further details of the Resettlement and Rehabilitation Program (RRP)included in the project are in Annex 7. In brief, the construction of theSingur Dam is approaching completion; it has been constructed and financedseparately from the project. The reservoir, when filled to the full reservoirlevel (FRL) 523.60 m msl (meters above mean sea level), will flood 13,122 hain AP and a further 736 ha in Karnataka upstream. The filling will take placein two phases. During Phase 1 the reservoir was to be filled to El 520.00during the June to September 1989 monsoon season; in Phase 2 the reservoirwill be filled to the FRL during the 1990 monsoon. Within the area to beflooded there are 27 village sites - all in AP - having 4120 households, ofwhich 15 villages with a population of 1695 households will be submergedduring Phase 1 filling. In AP, a further 42 villages and an estimated 2,000households will be affacted by the submergence of a part of the agriculturaliands on which these villages depend. No village sites will be submerged inKarnataka.

3.16 Agreement was obtained at negotiations that GOAP will:(a) implement the RRP in accordance with a three-year timetable commencing

25 -

April 1, 1989; (b) monitor all activity and problems arising in theimplementation of the RRP through the office of the District Collector, MedakDistrict; (c) engage, as a Consultant before March 31, 1990, an independentsocial science research organization, acceptable to the Bank, to undertake asupplementary monitoring of RRP implementation progress and provide anindependent evaluation of implementation effectiveness, in relation to agreedRRP objectives, according to terms of reference to be agreed with the Bankwhich, inter alia, will provide for the preparation and submission to GOAP ofmonitoring and evaluation reports at six-monthly intervals; and (d) determinepromptly, after the receipt of each such monitoring and evaluation report, andin consultation with the Bank, revisions to the RRP, taking account ofimplementation progress and the findings and recommendations of theindependent monitoring and evaluation reports.

3.17 ,I titutional Strengthening oent 6. (Base Costs: 13U3.9million - Rs 61.9 million.) This componert comprises both technicalassistance - to both GOAP and to HMWSSB - and personnl3 training elements. Itaddresses the objectives given in paras 3,03 (a), (b), (c), and (d). ThLetechnical assistance eler'ent to GOAP comprises: (a) the services of the DamReview Pasiel (DRP - para 3.24 and Annex 6); (b) the services of an independertsocial science research institution to conduct independent monitoring andevaluation of the Resettlement and Rehabilitation Component (RRP - para 3.16(c) and Annex 7).

3.18 Further detail of the technical assistance to HMWSSB, includingoutline terms of reference for the consultant-assisted studies, is provided inAnnex 8, and further detail of the studies to assist HMWSSB with theformulation of a Training Action Plan are in Annex 9. The concepts of thesestudies have been developed in close consultation with HMWW and theconsultants who assisted project preparation. Included are: (a) surveys andinfrastructure mapping; (b) unaccounted-for water management studies;(c) detailed water distribution analysis and the final design of ProjectComponent 2; (d) studies leading to the preparation of water and seweragesystem operation and maintenance manuals; (e) sewer condition assessmentstudies; (f) the final design of Project Component 3; and (g) studies,including studies to prepare future urban and/or water supply-sanitationprojects, yet to be identified. In the management, finance and accountingarea are included the development of, and related implementation of personneltraining for: (h) accounting and management information systems; (i) projectplanning and control systems; (j) improved revenue billing and collectionsystems; and (k) materials management and stores inventory systems.

3.19 During negotations, assurances were obtained that studies to preparea comprehensive Training Action Plan be conducted jointly by AP's DHMAUD andHMWSSB; outline terms of reference are in Annex 8. AP's Pollution ControlBoard, working in collaboration with HMWSSB, will take measures to control theadverse effects of industrial wastes in the sewerage system.

3.20 Assurances were obtained at negotiations that HMWSSB will, asprovided in the Operational Action Plan, before the dates prescribed below,engage consultants, in accordance with the Bank's Guidelines for the Use ofConsultants, to work with suitably qualified teams deputed by HMWSSB, to

- 26 -

undertake the work identified in para 3.18, generally in accordance with theoutline terms of reference given in Annex 8:

Engaged_bv Description Referelnc

June 30, 1990 para 3.18 (h), (i), and (j);September 30, 1990 para 3.18 (a),(b),(c),(e),(f), and (k);June 30, 1991 para 3.18 (d).

3.21 Personnel Training. An outline of the consultant-assisted studiesneeded to develop the training elements [para 3.19 (ii)] of this component areprovided in Annex 9. These studies will define and quantify the trainingneeds for various categories of sector personnel in RKWSSB and in other sectorinstitutions in the state of Andhra Pradesh. The linkages to the trainingaspects of the project's technical assistance will be reviewed and the basisfor setting training classifications and priorities will be determined. Thestudy will, review alternative ways of meeting these training needs and thestudy reports will present recommendations as to a systematic approach topersonnel training, initially in HMDWSSB but with a view to later expansion toembrace other sector institutions on a state-wide basis.

3.22 A July 1988 Bank sector training mission to India has recommendedthat: (i) the training study should identify opportunities for beneficialcollaboration with other sector training institutions in India, and reviewsector training study reports prepared for other Indiam water supplyinstitutions, to avoid duplication of effort; (ii) the training study reportshould not recommend investments in permanent training facilities unless thesecould be clearly justified; (iii) HKWSSB should appoint a Training Advisor, ofnot lower grade than Superintending Engineer; and (iv) the Training Advisorshould be nominated for suitable overseas training (training of trainers) andthen play a key role during the execution of the consultant-assisted trainingstudies.

3.23 An understanding was reached at negotiations that the preparation ofa personnel training plan was essential to the development of HMWSSB (para3.19 (ii)3. HMWSSB's formal adoption of a Training Action Plan, developed inconsultation with the Bank, will be a condition for disbursements againstHMWSSB training expendit'ires.

Dam SAfety

3.24 The Singur Dam (para 3.05) is the source of the additional water tobe supplied to Hyderabad under Project Component 1, and has been constructedand financed separately from the project by COAP's Irrigation Department (ID).GOAP, in consultation with the Bank, on October 12, 1988, appointed anindependent DRP to: (a) review the safety of the Singur Dam and makerecommendations as to the measures necessary of desirable to assure the safetyof this dam; and (b) to review and report on the reliability of the drinkingwater supply planned from the Singur Dam. Since appointment, the DRP has heldthree substantive meetings; minutes of these meetings have been provided byGOAP to the Bank. Some background on the DRP, a summary of the DRP'srecommendations in the minutes of each of these three meetings and the TOR ofthe DRP are provided in Annex 6,

- 27 -

3.25 The DRP has recorded its opinion that the Singur Dam is safe,subject to certain measures. Some of these measures are physical, and a largenumber of others are investigations, studies, tests and reports which may inturn lead to recommendations as to additional physical measures. Most ofthese investigative measures are ongoing and some are yet to be initiated,either by or on behalf of GOAP's ID. In these circumstances, the availablecost estimates, provided by GOAP are largely indicative estimates prepared byengineering judgement. GOAP has indicated its intent to finance these costsfrom its own budgetary resources.

3.26 The physical measures identified to date include: (a) theconstruction of relief wells; (b) the installation of piezometers; (c) theinstallation of surface settlement points and slope indicators; (d) theprovision of devices for masonry dam uplift pressure monitoring; (e) theinstallation of IV'-Notch weirs for toe drain flow measurements; (f) thedrilling of varJous test holes and sampling and testing therefrcm; (g) repairof the earth dam near the irrigation sliices: (h) repair of 1_he stone pitchingon the earth dam and the possible provision of wave treakers; (i) thecompletior, and extension of curtain grouting: (j) the provision of adeflection-type parapet wall. k) the guniting (with wire mesh) of the upstreammasonry training walls; (1) the construction of an apron downstream of thespillway roller bucket; (m) the provision of stand-by power for gateoperation; (n) the provision of an air vent for the left bank irrigationsluice; (o) the provision of an emergency gate to avoid the need for a watersupply intake air vent; (o) measures to contain leakage from the retaining-cum-training walls at the junctions of the masonry and earth dams. Uponconclusion of ongoing probable maximum flood (PMF) and reservoir routingstudies, it is possible that (p) provision of an emergency spillway may berecommended; an apparently suitable site for a fuse-plug type of spillway hasbeen identified.

3.27 During negotiations, agreement was obtained that GOAP will:(a) maintain the DRP until all construction and remedial work is completed andthe Singur Dam is ready for operation and maintenance; and (b) subsequentlyensure regular inspection and evaluation of this dam in accordance with soundengineering practice.

Sin2ur Drinking Water Suoplv Reliability

3.28 The utilization of water from the Manjira River is controlled by anagreement among the riparian states of Maharashtra, Karnataka and AP. Theagreement for the Singur Dam is specifically for imp-oved water supply forHyderabad, although there are other benefits, incluting the improvedreliability of the Hyderabad supply from the Manjira Barrage immediatelydownstream from Singur, the downstream irrigation use of surplus flows andpower generation from the monsoon flood flows which cannot be stored. It is amatter of AP State policy, which reflects India's National Water Policy, andagreed by GOAP's ID, that the first priority for the available water isHyderabad's water supply. The planned supply water from the Manjira is thesum of the 300 Mld for the Manjira Phase III schemes Stages 1 and 2, to bewithdrawn from Singur and the 245 Mld withdrawn from the Manjira barrage bythe existing Manjira Phases I and II schemes. The total of 545 Mld is

- 28

equivalent to 7.0 TMC (thousand million cubic f6et per year). The DRP hasexpressed the opinion this amount can be supplied with a 92 per centreliability; in other words, a lesser supply will be available, on theaverage, in only eight out of one hundred years. Higher levels of supplyreliability are usually sought in public water supply practice; but the levelavailable does not threaten the project justification in the circumstancesprevailing in Hyderabad, because of the very high capital and operating costsof alternative supply sources (para 2.20).

3.29 The DRP's opinion, cited in para 3.28, is subject to the reservoirbeing operated with 2.0 TMC "carry-over" storage to accomodate the periodicoccurrence of successive years of less than normal rainfall in the tributarywatershed. To give practical effect to the AP policy on water allocationpriorities, there is a need for 'Reservoir Operating Rules'. These, accordingto GOAP's Order No 190 MA of April 4, 1989, are to be formulated jointly bythe Chief Engineers of Mlajor Irrigation and of HMWW. Accordingly, GOAP has:

(a) furxn5shed to the Bank drart operating rules for the Singur Dam,satisfactory to the Bank, together withl the dsta and analysisdocumenting the justification for and the effectiveness of theserules, which will accord the first priority for the allocation ofthe available water to water supply for Hyderabad, up to andincluding an annual amount equivalent to 300 million liters per dayfrom Singur Reservoir and up to and including an additional 245million liters per day from the Manjira barrage; and

(b) taken measures to give legal effect, satisfactory to the Bank, tothe agreed operating rules.

3.30 Agreement was obtained at negotiations that GOAP will operate theSingur Dam in accordance with the operating rules approved by the Bank.

Proiect Costs and Financine Plan

3.31 Cost estimates for the project are summarized in Table 3.2 below andpresented in more detail in Annex 10. The overall project costs are estimatedat US$140.6 million (Rs 2,570.6 million), including US$13.1 million forphysical contingencies, US$15.2 million for price contingencies and US$12.3million for duties and taxes. The foreign exchange component is about US$35.0million, or 254 of the total project cost.

3.32 The cost estimates, including estimates of the foreign exchangecosts, are based on the findings of consultant-assisted project preparationstudies, whieh reviewed the cost experience with similar works in Hyderabad.The foreign exchange component estimates rely on the consultant's judgement,based on experience, and include both the direct and indirect foreign exchangeelements. With rare exception, the equipment and materials required areavailable from Indian manufacturers. The average base cost estimate forconsulting services is considered reasonable; more than 95 percent of theperson-months required are expected to be sourced in India. The physicalcontingency allowances throughout are at the rate of 15% for goods and 10% forworks and services. The higher allowance for goods is used because certainsmall items of materials were not specifically accounted for in the estimates.

- 29 -

Price escalation has been calculated on the basis of the followinginternational and local inflation rates by calendar year:

_LM 19U 159 1990 1991 UM 22 1221 112 199715Zmtezutional .03 7.2S 7.2X 4.43 4.41 4.43 *4X *X 4.43 4.4 4.4XLocl 3 .23 $.Ss 7.SX 7.01 7.0X 6.6S 6.53 X.5X 6.13 6.03

TABLE 3.2 PR 'ECT COST ESTIMATES

i---- n RS milLon --- --- in USA *1llon ---S-r- Coats are In Oct 1, Sass Costs are in Oct 1,1989 Prices and include 1989 Price'j and include

Dutiea and Taxes S S XTOTAL BASS r02TIGN

Laca har*n TOTAL i"kLWA rOAIA co, 0s, o

CPT 1 Kanjira Phase I1IStags 1 Water Supply 38.33 18t71 565.10 24.03 11.67 35.70 22X 313 332

CPI 2 Strengthen Relab.ExlstLng Water System 316.26 130.80 447.06 19.25 d.17 27.42 175 25S 29X

CPT 3 Strengthen Rehab.Existing Sewerage System 392.67 49.34 442.01 23.93 3.08 27.01 173 243 113

CPT 4 Low-Cost Sanitation 42.19 0.00 42.19 2.60 0.00 2.60 21 23 O0

CPT 5 Resettlement andRehabilitation 96.71 20.91 117.62 5.99 1.33 7.32 53 7S 183

CPT 6 Institutional Strengthening 46.29 17.15 63.44 2.90 1.08 3,98 2X JS 27X

SUBTOTAL (excluding land) 1272.45 404.97 1677.42 78.70 25.33 104.03 65X 93X 24X

CPT 8 Engineering and Supervision 1;2.90 ^.00 122.90 7.68 0.00 7.68 5S 73 0X

CPT 9 Land 9.10 0.00 9.10 0.56 0.00 0.56 Ot 1X 03

TOTAL RASE COSTS 1404.45 404.97 1809.42 86.94 25.33 112.27 70X 1003 223Physical Contingencies 150.75 59.88 210.63 9.38 3.75 13.13 83 - 283Price ContLngencies 371.30 179.25 55L.55 9.31 .93 15.24 21X 33X

PROJECT COST.INCLUDING TAXES AND DUTIES 1926.50 644.10 2570.60 505.63 35.01 140.64 1003 253

Note: The above costs include an estimated Rs 210.84 million (US$12.28 mllion) in Taxes and Duties.

Project Financing

3.33 An IDA Credit of US$79.9 million and an IBRD Loan of $10.0 millionare recommended for the proposed project. This would provide about 70% oftotal project costs, net of taxes and duties, and would finance all theforeign currency costs, and nearly 58% of the local costs before taxes andduties. The Credit and Loan would be made to the Government of India, whowould make the proceeds available to the Government of Andhra Pradesh inaccordance with GOI's standard arrangements for developmental assistance tothe states of India. Agreement was obtained during negotiations that the GOAPwill: (a) lend all the funds required by HMWSSB to finance the cost of the

- 30 -

water supply and sewerage physical works included in the project at aninterest rate of not less than 10.25% per annum over a 25-year term, with a 5-year grace period on principal and interest; (b) provide, as grants, thebalance of the funds required by HMWSSB for the low-cost sanitation programincluded in the project; and (c) provide, as grants, the funds for thetechnical assistance and training components of the project. On this basis,the project financing plan is as follows:

TABLE 3. 3 PROJECT FINA4CING PLAN

USS millionLocal EForeiLn TOTAL I

IDA Credit 47.4 32.5 79.9 56.8IBRD loan 1.1 51 2i2 _i1SUB TOTAL 1/ 54.9 35.0 89.9 63.9

GOAP Loans to HMWSSB 41.0 - 41.0 29.2GOAP Other CGntribattiotn 9.0 - 9.0 6.4Householder Contribution(Low-Cost Sanitation) Q0.7 - 0.7 015.

TOTAL PROJECT COSTS 105.6 35.0 140.6 100.0

3.34 GOAP has requested the Bank's retroactive financing of emergencywork carried out under the RRP (para 3.38). Subject to compliance ofprocurement procedures with the Bank's Guidelines (see also para 3.45), thisis recommended for expenditures incurred after December 31, 1988, up to US$3.0million equivalent.

Status of PreRaration

3.35 The Manjira Phase III Stage 1 component of the project (para 3.05),representing over one quarter of the project costs, is developed to the stageof final design and bid documents, except that the bid documents are beingfinalized to conform to the Bank's Guidelines for Procurement. The consultingassistance obtained for this bid document revision has included a technicalreview of the design and specifications for the water treatment plant and forthe pumps and motors for the pumping station at Peddapur. These are both onthe critical path. It also included a review of the design and specificationsfor the air vessel to serve as a surge absorption device at Peddapur, which inturn included the computer modelling of the pumping system and thedetermination of the peak transient pressures which can occur under a variety

1/ Made available to the Government of India, who would make the proceedsavailable to the Government of Andhra Pradesh in accordance with itsstandard arrangements for development assistance to the states of India.

- 31 -

of actual conditions. Prequalification and bid documents for the twocontracts on the critical path and model documents for use throughout theproject have been furnished for Bank review, and the Bank has provided comentwhich is being accommodated.

3.36 The components of the project concerned with the rehabilitation andstrengthening of the existing water system (para 3.07), and sewerage system(para 3.09) and the low cost sanitation component (para 3.11) were developedonly to the level of preliminary engineering during project preparation, forwhich some funding assistance for lc¶.al consulting services was provided byUNDP. The preparation of the final designs, drawings and bid documents forComponent 2 - Rehabilitation and Strengthening of the Existing Water System -'-11 proceed in stages with technical assistance scheduled for completion inMarch 1993 and included in the project. Similarly, the preparation of thefinal designs, drawings and bid documents for Component 3 - Rehabilitation andStrengthening of the Existing Sewerage System - will proceed in stages withtechnical assistance scheduled for completion in March 1993 and included inthe project. However, for both these components, bidding and implementationwill proceed as stages of the final designs, drawings and bid documents arecompleted for the various sub-components; schedules are irt. Annex 20. TheImplementation of Ceoponent 4 - Low-Cost Sanitation Program - wll' be precededby a study conducted by HMWSSB, which will elaborate detai'ls of the program,and its organizational and staffing arrangements and its operational methods.

3.37 The preparation of Component 5 - Resettlement and Rehabilitation ofthose affected by the filling of the Singur Dam Reservoir (para 3.13) wascompleted prior to negotiations. GOAP has prepared a plan and has issuedGovernment Orders to establish satisfactory institutional arrangements andappoint adequate personnel for implementation. Th' agreed RRP is given inAnnex 7. Work on the implementation of the RRP, Project Component 5,commenced about March 1989. The payment of compensation for the property tobe submerged in the Phase 1 filling is completed. Detailed site layouts often of the eleven new village sites to receive those displaced under the Phase1 reservoir filling have been prepared and plots have been allocated byvillage level committees. Drinking water boreholes and approach roads havebeen provided for the first fifteen resettlement sites.

3.38 For Component 6 - Institutional Strengthening - outline terms ofreference have been prepared and are included here in Annex 8; for thestudies, to be conducted by GOAP and HMWSSB, to prepare the Personnel Trainingsubcomponent, the outline terms of reference are in Annex 9.

Land Acquisition for the Project

3.39 Component 1 of the project - the Manjira Phase III Stage 2 scheme -largely "twins' the corresponding Stage 1 scheme, which is now inimplementation and planned for completion in 1989. However, land acquisitionfor both stages was almost entirely completed in the Stage 1 scheme. InComponents 2 and 3 - the rehabilitation and strengthening of the existingwater and sewerage systems respectively, the works to be done are largely onpublic streets or on the sites of existing facilities which were acquired atthe time of their initial construction. Thus, the land acquisition for the

- 32 -

water supply and sewerage components of the project is completed except asfollows:

Compt. 1: Land for Staff Quarters along transmission mains 17.57 ha

Compt. 2: Land for W.iter Pump St'ns at Hussainsagar 0.15 haat ksojagutta 1.00 haat Jubilee Res. 0.80 ha 1.95 ha

Compt. 3: Land for Sewage P/St'n at Mosarambagh 0.25 ha

On the basis of the land acquisition experience with the Manjira Phase IIIStage 1 scheme, no delays in project implementation as a result of theseremaining land acquisition requirements are anticipated. Some details of therelevant land acquisition regulations and procedures are in Annex 11. Thereare no land acquisition requirements for Project Component 4 - Low CostSanitation.

3.40 Land for the new village seLtlemernts to be provided under theresettlement and rehabilitati4n Component 5 comprises 210 ha of governmexatland and 83 'aa of private land which has recently been acqured by GOAP. Landacquisition of t%.e area to be flooded by the Singur Reservoir has beencompleted for the Phase 1 (para 3.15) of the reservoir filling and is inprocess for the remainder.

Procurement

3.41 Table 3.4 summarizes the procurement arrangements. Further detailsare in Annex 10. The figures in parenthesis are the amounts financed by theproposed Credit and Loan.

3.42 All major goods and eguiRment suRDlY contracts would be awarded onthe basis of international competitive bidding (ICB) in accordance with BankGroup guidelines. In evaluation of the bids for goods and equipment, localmanufacturers participating in international bidding would be given apreferential margin equal to 15% of the c.i.f. costs of the competing imports,or the existing rate of customs duty, whichever is less. It is likely thatthe majority oi contracts for goods and equipment contracts would be won bylocal bidders. The value of ICB goods and equipment supply contracts is aboutUS$28.9 million. For small contracts for materials and eguiDment, notexceeding US$200,000 individually nor aggregating to more than US$3.0 million,LCB procedures will also be acceptable. LCB procedures have been reviewed,and are acceptable to Bank, subject to the revisions described in Annex 13.Contracts for the supply of small items of equipment, estimated to cost lessthan US$25,000 equivalent, and not exceeding US$1.5 million equivalent in theaggregate, oay be awarded on the basis of prudent shopping, with solicitationof price quotations fr,m not less than three suppliers.

3.43 The Peddapur water treatment plant contract (estimated costUS$2.77 million, net of taxes and duties) would be bid as an ICB turnkeycontract against design criteria and performance specifications, permitting anevaluation of the costs of civil works and equipment together to determine theleast cost. This is the usual method of procurement of such plants in India.

- 33 -

HMWW/HMWSSB is familiar with such water treatment plant bidding pro-idures,having previously awarded such a contract for the Kanjira Stage 1 scheme. Forthe turnkey contract, a domestic preference of 15% of the c.i.f. costs ofcompeting imports or the applicable customs tariff, whichever is less, on theequipment and goods components of the contract price will be given.

TABLE 3.4 PROCURMENT TABLE(Cost in US$ millions)

Procurement MethodTotal

Project Elements ICB LCB Other NA L/ Cost

Civil Works 88.1 2.7 - 90.8(53.7) (1.3) (55.0)

Equipment and Materials 28.9 0.4 1.5 - 30.8(25.8) (0.4) (1.0) (27.2)

Water Treatment Plant (Turnkey) 2.6 - - - 2.6(2.1) (2.1)

Rehabilitation Services - - - 1.0 1.0(0.8) (0.8)

Consulting Services - - - 3.2 3.2(3.2) (3.2)

Training - - - 1.6 1.6(1.6) (1.6)

Engineering and Supervision - - - 10.0 10.0(0.0) (0.0)

Land - - 0.6 0.6_ (O0.0 (0.0)

TOTAL 31.5 88.5 4.2 16.4 140.6(27.9) (54.1) (2.3) (5.6) ( 89.9)

Figures in parenthesis are the amounts financed by the Loan and Credit.1/ NA: Not applicable

3.44 Civil works contracts with an aggregate value of US$105.4 million,would be awarded on the basis of local competitive bidding (LCB) proceduresacceptable to IDA. All these contracts are less than US$15.0 million each andall except one less than US$4.0 million; these contracts would not attractinternational interest. However, where possible, works contracts will bepackaged to allow competition for larger contracts following the 'slice and

. 34 - I

package' approach. The installation of telephone and electric power systems,required by the project are estimated to cost about US$1.0 million, and willbe undertaken on a force account basis by the respective public utilityorganizations. Also, some of the civil works involved in the rehabilitationand resettlement program, which are now being undertaken on an emergencybasis, and which are estimated to cost $1.5 million or about 20 percent of thetotal of such works, may also be undertaken on a force account basis. This isjustified by the emergency nature of work, by the small and scattered natureof its elements, and the difficult location access.

3.45 Consulting studies for provision of technical assistance (par& 3.21)are to be procured in accordance with the Bank's 'Guidelines on the Use ofConsultants", and will be subject to the Bank's review of terms of reference,of short-lists, and of proposed contract terms prior to an invitation forconsulting services proposals, and subject to the Bank's approval ofconsultant selection and final contract before formal appointment.

3.46 Review by the Bank would be required of prequalificatiori eocumentsprior to an invitation to prequalify, prequalification evaluation reportsprior to prequalification, bid documents prior to bid invitation and bidevaluation reports prior to contract award for: (a) all ICB contracts,(b) materials and equipment supply LCB contracts, and (c) all civil works LCBcontracts over US$1.0 million. Thus, some 44 contracts, representing about70% of the total estimated contract value, would be subject to the Bank'sreview. However, effort will be made to group contracts to obtain the maximumbidder interest and to enhance project management efficiency. Model biddocuments for use throughout the project have been prepared, and furnished tothe Bank for review (para 3,35).

Disbursements

3.47 The amounts of disbursements by category are shown in Table 3.5.The estimated quarterly disbursements schedule, as shown in Table 3.6, isbased on the standard disbursement profile for the water supply and seweragesector for India. No disbursements would be made against the costs of land,administration or taxes and duties in India. Disbursements would be fullydocumented except for those on civil works contracts of lesser value thanUS$1.0 million and except for equipment and materials contracts and trainingand service contracts of lesser value than US$200,000, and those on theemployment schemes under the RRP Plan for which disbursements would be madeagainst statements of expenditures (SOE). Supporting documentation for itemsdisbursed against SOEs would be retained by GOAP and HMWSSB and made availableto the Bank staff for review on request. Such expenditures would be auditedannually by auditors acceptable to IDA (para 3.52 and 3.53).

3.48 To facilitate disbursement under this project, a special uiccountwill be established in US dollars, with an authorized allocation in theReserve Bank of India, of US$6.0 million equivalent. Replenishment will bemade quarterly or whenever the specia' account is drawn down by about 50% ofits initial deposit, whichever comes earlier. Retroactive financirg, up toSDR 2.4 million equivalent, is recommended (para 3.34). The closir.g date isMarch 31, 1998.

- 35 -

TABLE 3.5 DISBURSEMENT BY CATEGORY

Disbursement % of expendituresCategprz Amount to be disbursed

( US$ Million)

(1) Civil works 55.0 61% of expenditures

(2) Equipment and Materials 27.2 100% of foreignexpenditures, 100% oflocal expenditures(ex-factory) and 65%of local expendituresfor other itemsprocured locally.

(3) Water Treatment Plant 2.1 80% of expenditures

(4) Rehabilitation Services (RRP) 0.8 80% of expenditures

(5) Consulting Services 3.2 100% of expenditures

(6) Training 1.6 100% of expenditures

TOTAL 89.9

ImDlementation Schedules

3.49 Schedules for the design, procurement, construction andcommissioning of the project are given in Annex 10. The project is scheduledto be substantially completed by the end of March 1996 - one year after theend of the Eighth Five-Year Plan. Commissioning of the augmentation of watersupply (Project Component 1) is expected in 1993. For Components 2 and 3 -the rehabilitation and strengthening of the existing water and seweragesystems - the schedules indicate that studies and the design work (para 3.36)will be sufficiently advanced for some bidding to commence in the firstquarter of 1991, and most of the bidding will be completed for these twocomponents by the first quarter of 1993. The Low-Cost Sanitation program -Component 4 is scheduled over a five-year period following a six-month studyand a further six-month period for organizational matters and for tenderingand contract awards. The Resettlement and Rehabilitation Program--Component 5is planned for completion by the end of March, 1992, for an overall elapsedtime of 3 years (para 3.16).

- 36 -

TABLE 3.6 ESTIMATED SCHEDULE OF DISBURSEMENTS

1DA EDIT DRD LOAS tOTAL P.rcentTotal

ak ----- illio ---------- - CreitQuarter linal C4l- C mL- CR_.ma- and

SNLM S"Xog g9M atL atv urt-r 1tv _dM

1990March 31, 190 4.0 4.0 - - 4.0 4.0 4.4ZJu so, 1t" 0.0 4.0 - - 0.0 4.0 4.42

1"1September 30.1990 0.4 4.4 - - 0.4 4.4 4.92December 31, 190 0.5 4.9 - - 0.5 4.9 5.52March 31, 1991 0.3 5.2 - - 0.3 5.2 5.82Ju 30, 1991 0.5 !i.7 - - 0.5 5.7 6.31

1992September 30,1991 1.7 7.4 - - 1.7 7.4 5.21Dec_r 31, 1991 1.8 9.2 - - 1.8 9.2 10.22March 31, 1992 2.1 11.3 - - 2.1 11.3 12.62Jun s0, 1992 2.2 13.5 - - 2.2 13.5 15.02

1993September 30,1992 2.5 16.0 - - 2.5 16.0 17.61December 31, 1992 2.6 18.6 - - 2.6 18.6 20.72March 31, 1993 3.0 21.6 - - 3.0 21.6 24.02June 30, 1993 3.0 24.6 - - 3.0 24.6 27.42

1994September 30,1993 4.3 28.9 - - 4.3 28.9 32.12Dec_er 31, 1993 4.3 33.2 - - 4.3 33.2 36.92March 31, 1994 3.9 37.1 - - 3.9 37.1 41.32

un 30, 1994 3.9 41.0 - - 3.9 41.0 45.62

1995September 30,1994 3.8 44.8 - - 3.8 44.8 49.82December 31, 1994 3.8 48.6 - - 3.8 48.6 54.12March 31, 1995 4.3 52.9 - - 4.3 52.9 58.82June 30, 1995 4.3 57.2 - - 4.3 57.2 63.62

1996September 30,1995 6.0 63.2 - - 6.0 63.2 70.32December 31, 1995 6.1 60.3 - - 6.1 69.3 77.12March 31, 1996 3.0 2.3 - - 3.0 72.3 80.42Ju- 30, 1996 3.0 75.3 - - 3.0 75.3 83.82

1997September 30,1996 2.6 77.9 - - 2.6 77 9 86.72December 31, 1996 2.0 79.9 0.5 0.5 2.5 80.4 89.42March 31, 1997 - 79.9 3.1 3.6 3.1 83.5 92.92Jne 30, 1997 - 79.9 3.0 6.6 3.0 86.5 96.22

1998September 30,1997 - 79.9 1.7 8.3 1.7 88.2 98.12Decseb r 31, 1997 - 79.9 1.6 9.9 1.6 89.8 99.92Match 31, 1998 - 79.9 0.1 10.0 0.1 89.9 100.O0

Supervision and Monitoring

3.50 Project supervision coefficients are not expected to besubstantially different from the average for water-sanitation projects in theregion. The project is expected to require about 14 staff-weeks per year ofsupervision, or about 104 staff-weeks over the 8-year project implementationperiod. This estimate is slightly higher than the average water-sanitationsupervision coefficient in the region of 12 weeks per year because GOAP'sDHKAUD and HKWSSB are dealing with Bank procedures for the first time, and

- 37

because of the supervision requirements of the Dam Safety Measures and theResettlement and Rehabilitation Program components, which are not typically apart of such projects. Supervision effort will be more heavily concentratedduring the first three years of implementation than subsequently. During thisperiod, the implementation of Component 1 will be initiated, the final designsof Components 2 and 3 will be completed and then implementation initiated, andimplementation of Component 5--Resettlement and Rehabilitation should becompleted.

Accounts and Audits

3.51 The financial accounts for HKWW have followed the Public WorksDepartment Code, which is essentially a cash-basis system. While anmualstatements are prepared giving details of revenue and expenditure items, nostatements of financial position are prepared. Also, no provisions are madefor fixed asset accounting. To provide for more reliable and meaningfulfinancial reporting, as part of an operational action plan (Annex 14), HMWSSBwill replace this system with an accrual-basis commercial-type accountingsystem. This system will include appropriate ledgers and records for fixedasset and loan accounting. Technical assistance will be provided under theproject for the design and implementation of the required accounting systemsand procedures. Outline Terms of Reference for this assistance are in Annex 8and relevant assurances obtained in negotiations are described in para 3.27.

3.52 Agreement was obtained during negotiations that the accountingrecords of HMWSSB will be audited annually by independent auditors acceptableto the Bank. The report of the auditors on the financial position of HMWSSBat the close of each fiscal year, and the results of operations for thatfiscal year, will be submitted to the Bank within nine months of the close ofeach fiscal year. Such reports will also include the results of audits ofproject expenditures for which IDA Credit and Bank Loan withdrawals were madebased upon Statements of Expenditures during each fiscal year.

3.53 For the RRP, which will be ..mplemented directly by GOAP, and therelated technical assistance, agreement was obtained at negotiations that GOAPwill: (i) maintain separate project accounts; (ii) have these accountsaudited annually by independent auditors satisfactory to the Bank, (iii) haveincluded in such audit an examination of project expenditures for which Creditand Loan withdrawals were made on the basis of Statements of Expenditure; and(iv) submit the reports of such audits to the Bank within nine months of theend oZ each fiscal year.

IV. PROJECT ORGANIZATION AND MANAGEMENT

Overview

4.01 HMWSSB (paras 2.13 and 2.14), the successor to HMWW (para 2.12),will have the responsibility for the implementation of all the water supply,sanitary sewerage, and low-cost sanitation components of the project and fortne operation and maintenance of the water and sewerage systems. The works inthese components, together with related land acquisition and technical

- 38 -

assistance and training, will account for about 93 percent of the totalproject costs.

4.02 GOAP through its District Collector in Medak, will assumeresponsibility for the Resettlement and Rehabilitation Program - Component 5(para 4.18).

4.03 The Project Cell, established in HMWSSB, will assume the overalladministrative and accounting coordination of all aspects of the project.

gperational Action Plans

4.04 An initial Operational Action Plan (OAP) for the project, coveringthe first two years subsequent to project appraisal in March 1988, ispresented in Annex 14. Agreement was obtained at negotiations that GOAP andHMWSSB will carry out the project in accordance with the two-year OperationalAction Plan agreed at negotiations (Annex 14). This plan provides that GOAPand HMWSSB will, by March 31, 3.990, and at annual intervals thereafter untilcompletion of the project, prepare an updated Operational Action Plan,satisfactory to the Bank, for the subsequent two-year period. The OAP alsoprovides for the furnishing to the Bank of quarterly progress reports.Although a single integrated OAP and a single progress report is envisaged, itis expected that the District Collector, Medak (Resettlement andRehabilitation) will provide their inputs to the World Bank Project Ceil(para 4.10) in HMWSSB, who will prepare the final documents for circulationand use, and for submission to the Bank.

Hyderabad MetroDolitan Water Supolv and Sewerage Board (HMWSSB)

Present Orzanization

4.05 All the provisions of the Act constituting HMWSSB (para 2.13)according to the October 5, 1989 *notification" in the Andhra Pradesh Gazette,became effective November 1, 1989.

4.06 The Act establishing HMWSSB 1/ provides for an eleven-person Boardof Directors including a Managing Director of HMWSSB - an IAS officer and aChief Engineer of HMWSSB. The Board is to be chaired by AP's Cl.ief Minister,ex-officio, and the Vice Chairman is the Minister for MunicipalAdministration, ex-officio. Six of the seven remaining members are appointedpublic officials, all ex-officio, including the Commissioner of the iHyderabadMunicipal Corporation and the Chairman of the Andhra Pradesh State PollutionControl Board. The remaining Board member is to be a Chartered Accountant, orsomeone with equivalent qualifications, and having not less than twenty yearsof experience in the field of finance and accounts.

4.07 HMWW had a total staff of about 3,000 people; these have beenabsorbed by the new HMWSSB. This is a reasonable staffing level in thecontext of the Indian environment.

1/ The Hyderabad Metropolitan Water Supply and Sewerage Act, 1989 whichconstitutes HMWSSB (para 2.13).

- 39 -

4.08 Apart from the statutory positions noted in para 4.06, the detailsof HMWSSB's organizational structure are not known and will be determined bythe new Board. However, GOAP expects that, at least initially, it will followthe organizational form of HMWW. HMWW's chief executive officer (CEO) had therank of Chief Engineer who reported to the Secretary of DHMAUD. Reporting tothe CEO are:

Superintending Engineer Construction Circle I - 3 DivisionsSuperintending Engineer Construction Circle II - 5 DivisionsSuperintending Engineer Maintenance - 6 DivisionsExecutive Engineer DesignExecutive Engineer Quality ControlSecretaryDirector of Finance and Accounts

- Superintendent - Revenue and Budget- Accounts Officer - Expenditures Wing

A 'Division' is headed by an Executive Engineer.

4.09 The general organizational structure of HMWW was consideredsatisfactory, except that steps are needed to fill out the details of theorganization and staffing of the 'World Bank Project Cell' (para 4.10) and theorganization and staffing under the recently-appointed 'Director of Financeand Accounts' (para 4.14).

Proiect Management : The World Bank Proiect Cell

4.10 During project preparation HMWW established a "World Bank ProjectCell", led by a superintending engineer - the Project Manager - to monitor,manage and coordinate activity on the proposed project. The diagram belowdepicts an organization plan ag.eed for this cell. Agreement was obtained atnegotiations that HMWSSB will maintain, throughout the implementation periodof the project, a Project Cell staffed and organized in a manner satisfactoryto the Bank. The Project Manager (PM) would have authority for theoperational aspects of the project. He would report to the Chief Engineer ofthe Board, who would advise on policy issues. Besides having overalloperational responsibility for the project, the PM also would assume directresponsibility for the approval of tender documents, loan withdrawalapplications, and other reports to be sent to the Bank for review or action.Since the PM would have three superintending engineers reporting to him, thePM will be designated as a Deputy Chief Engineer, or equivalent, to ensure hisoperational authority.

HYDERABAD METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD (HMWSSB)

World Bank Project CellORGANIZATION AND RESPONSIBILMES

BOARDOFI~~~~~~DIRECTORS

ChiefEngineer

Proect Manager t^ ( santII | , .~~~~Adkin l CE

Procurement SSWater SupplyI4* **e$ mgl Planning & Control Dx pof

EE t-+ *--t: *+ ++ftt* SE &F Od N, Treatrnent Plant & > Treatnent Plant & Planring & Control HMWW

Pu-l Sns(M- &E) Pumping Stns(E) Systems Operation ( P "g

3. ,. s 2s Istribution . Maine* *n Colt

*".""".* ~~~~~~~~~~(Accountant]*Bridges, Reservoirs, li, Branich Sewers*

Pumping Stn & Connectlons*Structures EE** ***

4 ~~~~~~~~~~~~~~~~~~~~~~ALA

^= CE -CHIEF ENGINEER

SE -SUPERINTENDING ENGINEER

EE -EXECUTIVE ENGINEER

E - Operations Departments

- 40 -

-"o =WOMNUV WAiW .WAL An -m @iNM(i_-_OUMACWs WU

cow!

CNm

4.11 The physical works of the project will be planned and supervised bytwo superintending engineers, one for water supply and one for sewerage. Theywill supervise and coordinate the work of executive engineers responsible forspecific project contracts. They will manage all aspects of work under theirassigned contracts, from the preparation of tender documents throughcompletion of contractors' work.

4.12 The work of the water supply and sewerage engineers will besupported and monitored by a project planning and control group. This groupwill be headed by a superintending engineer reporting to the PM, It will usecomputerized project management techniques to help with planning andconitrolling project schedules, costs and technical performance. The groupwill also maintain separate project cost accounts, and prepare applicationsfor withdrawing Bank loan/credit proceeds, to be approved and forwarded by thePM. HMWSSB will retain consultants to assist in the design and implementation

- 41 -

of the required project planning and control systems (para 3.26). Outlineterms of reference for this technical assistance are in Annex 8.

4.13 The PM will also receive administrative support from an assistantmanager, and procurement support from an executive engineer, who will becomefully familiar with the Bank's procurement guidelines. This procurementspecialist will work closely with the various water supply and sewerageengineers on the project to ensure that tender documents uniformly meet theBank's requirements before they are submitted to the PH for final review andapproval, and subsequently submitted to the Bank for approval.

Finance and Accounts

4.14 Toward strengthening its financial management, the HMWW hasappointed a Director of Finance and Accounts (DFA); The DFA will usetechnical assistance and training under the project to design and implementimproved accounting and management information syRtems (para 3.18 andAnnex 8). Agreement was obtained at negotiations that HMWSSB will, before May31, 1990 establish, staff and maintain a new financial unit within itsorganization, to support the DFA and the new systems, in a manner satisfactoryto the Bank.

4.15 Within the organizational structure below, which will be under thedirection of the DFA, two managers will report to the DFA, and will beresponsible for the accounting and finance functions, respectively. TheManager of Accounts generally will be responsible for the posting of routinetransactions and maintaining the books of accounts. This responsibility willfurther be divided into areas of general financial accounting and worksaccounting. In this way the more repetitive financial accounting functionswill be separated from the accounting for the more specialized transactions ofcapital works.

4.16 The Manager of Finance will be responsible for customer billing andcollections, and the important related function of cash management. A deputymanager will support him with automated billing and collection systems. Healso will be supported by two other deputy managers. One will be responsiblefor maintaining the management information system, and for doing continualfinancial analyses of available financial and operational data. The otherdeputy manager will be responsible for budget preparations, analyses andrevisions.

Operations

4.17 Good management of HMWSS3's resources, facilities and staff would beaided by better information systems. In the operational areas, the projectincludes over fifty bulk meters to help track water losses and to provide aninformation base to aid efficient and effective operational practices. Italso includes technical assistance to prepare operation and maintenancemanuals, for use as a day-to-day reference and also in some of the personneltraining to be designed and implemented under the project. Improved operationand maintenance will include the maintenance of better records, and systemsand procedures for the monitoring and analysis of the information so gathered,and the use of such information and analyses in decision-making. Technical

HYDERABAD METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD (HMWSSB)Department of Finance

ORGANIZATION AND RESPONSIBILITIES

BOARD ODIRECTORS

ManagingDirectPr

|Director of Finance &|Account

|Accounior Accounts ManagerA M D MAN

Fnancial Works Bilng Financial Budgets World r Account.ng Accounting Jollectior Analysis Bank HMWW 0

cm cm, cm cm CM ",:-Project iDePts 0

Payroll AMaterials CeLlt e

a6 .........

C Clerks DM - DEPUTY MANAGERDA - DIVISIONAL ACCOUNTANTS

- 42 -

assistance to develop such systems and provide training in their use is alsoitncluded in the project.

OepuWuS d Pbwi

pi~~~~ Diel ga AM A0009 aS umatio

JueWr Amswwwta M AM- MSDT MANAG.

J~ DM -oWup1 MANIADA- ONMONAL. ACOUNTaNTS

Resettlement and Rehabilitation

4.18 This component will be directly managed by the ofiice of the MedakDistrict Collector, the senior GOAP officer in the District containing theSingur Dam reservoir. Both state level and local level ccmmittees of seniorappointed officials have been established to guide the implementation. TheDistrict Collector's office has been strengthened by the appointment of aRehabilitation Division of 23 people. Further, an Engineering Unit of some, 51people has been appointed by the GOA2's Panchayat Raj Engineering Departientto assist with the management of the construction of infrastructure to servethe new villages to be escablished and their residents. The allocation of new"residential plots is undertaken in consultation with the villagers. Furthlev-detail is in Annex 7.

- 43 -

V. FINANCIAL ASPECTS

HOWW Revenue and Exnnditure Trends

5.01 Over the three years prior to appraisal in March 1988, HMWW hadbeen experiencing increasing operating losses, which have been covered by GOAPgranits. These losses can be largely attributed to reductions in saleablewater due to drought conditions, but they also have been the result of risingoperating costs in face of fairly static water tariif revenue, as follows:

TABLE 5.1: HKWW RLVENUE AND EXPENDITURES (RS NILLION5)

1982-83 1983-84 1914-§5 1985-06 1986-87

Revenue Income 67.42 81.32 82.15 77.68 70.18Revenue Expenditure 52.47 74.25 85.07 95.51 101.93Surplus (Deficit) 14.95 6.37 ( 2.92) (17.83) (31.75)Grant-in-Aid 10.00 13.03 14.48 14.48 14.48Net Surplus (Deficit) 24.95 19.40 11.56 ( 3.35) (17.27)

In FY 1986 and FY 1987, the grant-in-aid provided by GOAP was insufficient tocover the operating deficits. The shortfalls were met by diverting other GOAPgrant funds that were provided to HMWW for capital works.

5.02 The relatively depressed level of revenues over these three yearswas a direct result of droughts. About 90% of HHWW revenue varies directlywith the amount of water delivered to consumers. The quantity of waterdistributed declined from 320 Mld in FY 1983 to drought-related levels of 222Mld in FY 1986 and 144 Mld in FY 1987. Hence, even with tariff increases inFY 1984, the revenue from the sale of water of Rs 65 million in FY 1987 onlyabout equalled the Rs 66 million in FY 1983.

5.03 The structure and trends in HMWW's operating and maintenanceexpenditures over the past five years are set out in the following table.Salaries, power, and repairs and maintenance have represented about 908 of thetotal expenditures. Overall, annual expenditures have been increasing, eventhough declines in the volume of water sold have been experienced. Theunderlying difficulty has been that annual expenditures for salaries, repairsand maintenance, and establishment expenses are largely fixed costs; and theycomprise about 60 to 65% of the total costs. In addition, the reduced volumeof water in impounding reservoirs during drought years produces lowerreservoir levels; this results in increased pumping lifts, and correspondinglyhigher power costs for water supplied to consumers. Because of this costbehavior, even if HKWW continued to set tariffs to cover normal operating andmaintenance costs, GOAP's providing grant funds to offset operating deficitsmay continue to be justified in drought years.

- 44-Z

TABLE 5.2: H1WW OPERATING AND NAINTENACE EXPENDITURS (RS,- MILLION)

1982 - 83 1983 - 84 1984 - 85 1985 - 86 1986 - 87RsA k- RsLL 1- Rn I Rs _AA Rs

SalarLes & Wages 17.63 34 28.24 38 34.19 40 39.70 42 41.03 40Power 18.18 35 23.32 31 31.87 37 32.33 34 30.82 30Repairs/Kaintenance 11.13 21 12.29 16 13.21 16 18.25 19 24.24 24Chemicals 2.24 4 2.57 3 3.18 4 2.12 2 2.97 3Establishment Expenses 1.49 3 1.75 2 2.05 2 2.23 2 2.07 2Others 1.80 3 6.78 10 0.57 1 O.88 1 0.80 1

Total 52.47 74.95 85.27 95.51 101.93

War Tariffs

5.04 Water is supplied through some 174,000 private connections, about90% of which are metered. In addition, water is supplied through 4,500 publicstandposts. Water tariffs have been revised periodically to cover the costsof operations. Commercial and industrial tariffs were revised in December,1986, and domestic tariffs were revised in December, 1987. These increasesshould allow HMWSSB to operate on a sound financial footing until about 1993,assuming normal rainfalls. The present and recent tariffs are as follows:

TABLE 5.3: HMWW : WATER TARIFFS

Category Rates for 1.000 liters (Rs)

1985 1985to to Subsequent

Nov 30 Nov 30 toDOMESTIC: 1986 1987 Present

(a) Up to 25,000 liters per month 0.60 1.50(b) From 25,001 to 50,000 0.70 1.75(c) From 50,001 to 100,000 0.80 2.00(d) Above 100,000 0.90 2.25

Minimum Charge per month 10.00 30.00Unmetered Connection (1/2") per month 30.00 60.00

COMMERCIAL 1.30 2.75INDUSTRIAL AND FOR CONSTRUCTION PURPOSES 2.20 5.50CHARGE TO MCH PER PUBLIC STANDPOST PER MONTH 150.00 150.00

5.05 During years with normal rainfall, the average monthly domesticwater bill amounts to about Rs 30. This amounts to no more than 2% - 3% ofmonthly income for households receiving water bills, which suggests that thetariffs are affordable. The lowest income consumers typically receive waterfree of charge from public standposts.

45 -

Water Billina and Collection

5.06 Water customers are required to purchase a water meter at theirown expense, and then to have it tested by HMWW/HMWSSB. The responsibilityfor maintaining the water moters is that of the consumer. Meters are readonce a month, and a bill is issued on the spot by the meter reader. If themeter is not in working condition, the bill is prepared on the basis ofaverage consumption for the previous three months. A separate notice also isissued to the consumer to have the meter repaired within a period of twomonths. Similarly, bills for commercial and industrial connections are issuedevery month. MCH was also billed monthly by HMWW for the municipalstandposts. The bills are required to be paid by the consumers within 30 daysfrom the date of billing. In case of default, water supply is liable to bedisconnected. The water connection is restored only after the consumer makesthe payment of the bill and the reconnection charges.

5.07 Over the past five years, the collection efficiency for billsgiven to metered consumers has ranged between 71% and 77%. While thisperformance is relatively good in India, it could and should be improved.Collections from MCH for municipal standposts, however, have been a seriousproblem. These charges have been amounting to about Rs 6 million per year,and represent about 8% of HMWW's operating revenues. The arr'ars currentlyamount to about Rs 40 million. GOAP has decided that, effect ve April 1,1989, HMWW/HMWSSB will not recover the costs of standpost service from MCH;rather these costs will, in effect, be borne by other water consumers ofHMWW/HMWSSB. However, GOAP has also decided that the arrears of standpostcharges due from MCH wili be remitted by GOAP to HMWSSB. Agreement wasobtained at negotiations that GOAP will remit the arrears in payments forstandpost charges due from MCH in five equal annual installments, with thefirst such payment to be made prior to March 31, 1990.

5.08 The efficiency of billing can be improved, and overall revenueenhanced, through improvements ill billing syatems and procedures. Hence, aspart of the Operational Action Plan (Annex 14) agreed during negotiations,HMWSSB will, before March 31, 1990, retain consultants to assist in the designand implementation of computerized billing and collection systems andprocedures [3.18 (j)]. Outline Terms of Reference for this technicalassistance are included in Annex 8.

Capital ReceiRts and ExRenditures

5.09 Capital expenditures for the planzpd schemes of HMWW have beenfinanced by grants from GOAP. This project would be the first time that GOAPfunds will be provided on a loan basis for water supply and sewerageinvestments. The table below summarizes HMWW capital receipts andexpenditures over the past five years. The surpluses shown were used largelyto cover operating deficits caused by reductions in water revenue duringdrought years.

- 46 -

TABLE 5.4 HKWW CAPITAL RECEIPTS AND EXPENDITURES (RS MILLION)

1982-83 1983-84 1984-85 1985-8 1986-87CaRital ReceiRtsReceipts from GOAP:Planned Schemes 30.78 44.50 88.79 120.00 199.46Drought Relief 3.50 8.60 1.70 32.30 29.10

Deposit Works 2.00 - 3.15 10.06 30.65Others 0.70

36.28 53.10 93.64 162.36 259.91

CaRital ExRenditure

Planned Schemes 33.48 40.66 85.73 125.24 166.14Drought Relief Works 2.40 9.09 1.70 22.02 37.74Deposit Works 0.33 3.56 3.79 8 Q, 19.14

36.21 53.31 91.22 iaa 223.02

Surplus (Deficit)in Capital Account 0.07 (0.21) 2.42 7.08 36.89

Materials Accounting and Management

5.10 Materials have accounted for some 60 to 80% of the zosts of majorworks undertaken by HMWW. In addition, materials must be purchased, storedand controlled for on-going repairs and rehabilitation programs. Currentsystems of stock accounting and control are seriously deficitent. Theypreclude the achievement of planned ordering, optimum stock levels, andeffective physical verifications of stocks on hand. To improve the situation,as part of the Operational Action Plan (Annex 14) agreed during negotiations,HMWSSB will retain consultants to assist in the design and implementation ofcomputerized materials management and stores inventory accounting systems andprocedures [para 3.18(k)]. Outline Terms of Reference for this technicalassistance are included in Annex 8.

Projected Financial Performance

5.11 Annex 16 presents a summary of projected operating statements forHMWSSB, extending through FY 1998. Included are projected statements ofrevenue and expenditures, and cash flow. The assumptions underlying theprojections also are included.

5.12 The recent water tariff increases have put HMWSSB on a soundfinancial footing. Under conditions of normal rainfall, HMWSSB should be ableto maintain a sound financial position. If future tariff increases areproperly anticipated and effected, revenues will be sufficient to cover annualoperating and maintenance costs, plus debt service. The past practice of GOAPhas been to have water tariff increases at three to five-year intervals. Thepzjojections show that this practice can create wide divergence betweenrevenues and expenditures. This in turn can cause cash flow problems, and can

- 47 -

result in relatively high steps in tariff adjustments. Indeed, the domestictariff increase in December, 1987, represented an increase of 150% over theprevious rates set in 1984. The financial projections also sugeest thateffective tariff increases of about 80% in 1993-94 and 15% in e.ih yearthereafter would be needed for HMWSSB to sustain a satisfactory financialperformance, acceptable to the Bank (para 5.14). Although the timing andextent of the actual increases needed will depend largely on when newwaterworks are commissioned to provide added increments of water and on actualprice inflation in India. However, instead of HMWSSB raising tariffs at threeto five year intervals, a better practice, from a financial managementviewpoint, would be to analyze the situation annually, and have more frequentbut smaller tariff increases. Accordingly, the agreed Operational Action Plan(Annex 14), provides that HMWSSB will annually review the adequacy of thetariff level and structure, in the context of medium-term financialprojections, as part of an overall improved financial management program.

5.13 In view of the foregoing appraisal of the historical and projectedfinancial performance of HMWSSB, agreement was obtained at negotiations that,except as the Bank shall otherwise agree, HMWSSB shall, with effect from itsfinancial year commencing April 1, 1990, produce total revenues equivalent tonot less than the sum of its (i) total operating expenses; and (ii) the amountby which debt service requirements exceed the provision for depreciation.

Sewerage Service

5.14 Subsequent to the appraisal of this project in March, 1988, GOAP hasdecided to transfer the responsibility for the operation and maintenance ofsanitary sewerage works from the Municipal Corporation of Hyderabad (MCH) toHMWW. Over the past three years, MCH has posted direct charges for surfacewater drainage and sanitary sewerage maintenance averaging Rs 8.5 million peryear. However, this level of expenditure has only served to correct day-to-day crisis situations such as severely blocked drains and sewers, which occurthroughout the city. The need to strengthen and enlarge sanitary seweragemaintenance programs is recognized and this was planned with the transfer ofsewerage service responsibility to HMWW (para 2.15). Based upon the natureand extent of surface water drainage and sanitary sewerage systems inHyderabad, it is estimated that about 70% of the maintenance costs of thesesystems could reasonably be allocated to sewerage works. Recent MCH annualexpenditures for sanitary sewerage have been about Rs 6 million. Allowing fora 50% increase to strengthen the maintenance program, some Rs 9 million peryear would be a reasonable initial budget for HY'WSSB's sanitary sewerageoperation and maintenance. This would increase projected FY 1989 operatingcosts by only some 7%.

5.15 The additional costs to HMWSSB for maintaining sewerage service willbe covered by a water tariff surcharge. Agreement was obtained atnegotiations that HMWSSB will, before March 31, 1990 and thereafter, levy asewerage service charge, as a surcharge of not less than 20 percent on chargesfor water service, to be payable by all water consumers who are served by aprivate water connection, and whose property abuts a street at a point alongits length at which a public sanitary sewer is previded. This approach leviescharges against those who derive benefit from having their property within asewered area, except for the poor who obtain water from public standposts. It

- 48 -

also removes the deterrent, which is implicit in direct user charges, toconnection to and use of the system, and thus addresses the problem of under-utilization of the system, which is noted in para 2.26. This is a commonproblem with sewerage systems in India.

VI. PROJECT BENEFITS AND RISKS

6.01 The major direct oenefits of the proposed project would be theprovision of: (i) an improved level of water supply service; (ii) wastewatercollection and treatment facilities of adequate capacity and an increase oftheir utilization; (iii) safe excreta disposal facilities for those, mainlyamong the poor, who do not have household latrines; and (iv) the improvedmanagement of these services.

6.02 These direct benefits would yield secondary benefits. Hyderabad'seconomy and employment opportunities depend on industry, commerce andinstitutions which are, in turn, mostly dependent on the public water supply,since private supplies are not usually a feasible alternative. Greaterdomestic supply quantities and longer hours of service would provide bothhealth improvement and convenience benefits to the general public andespecially to the poor (para 6.06).

6.03 There would also be health improvement, as well as environmentalbenefits, from the sanitary sewerage and low-cost sanitation components of theproject, and the pervasive pollution arising from the inadequacy of existingfacilities would be substantially curtailed.

6.04 As this is the first Bank Group-assisted project in this sector inAndhra Pradesh, and since Hyderabad is the capital and an important city - thesixth most populous urban area in India - the project would also yield ademonstration benefit through its integrated approach to its technical,management and financial aspects. Thus, the project may indirectly aid sectordevelopment elsewhere in the State.

6.05 A more detailed schedule of project impacts follows para 3.02.

Impact and Benefits for the Urban Poor

6.06 Within MCH boundaries, there are about 500 designated slums having apopulation of about 100,000 households or about one quarter of the totalpopulation. The adverse impact on health and convenience of inadequate watersupply, sewerage and sanitation services falls most heavily on the poor. Theyare less able to afford privately-owned tube or bore wells, private tankerdelivery of water, water storage tanks or pumping systems, fuel for theboiling of drinking water for disinfection, and on-site wastewater disposal,to compensate for deficiencies in the public systems. Thus, although thebenefits of the project will be realized by all residents of MetropolitanHyderabad, there will be particular benefits to the poor. These will beenhanced by GOAP's policy of providing water supply free at public standposts

- 49 -

to those who cannot afford a private connection, and by the progressivestructure of the water tariffs, which provide an effective cross-subsidy fromindustrial, commercial and the more well-to-do high volume domestic waterconsumer, to the poorer low volume domestic water consumer. Further, the low-cost sanitation program included in the project provides substantial subsidiesand is specifically targeted toward the poor.

Economic Analysis

6.07 The economic rate-of-return calculations were carried out usingconstant 1988/89 prices. The analysis used both market prices, and pricesobtained after applying a standard conversion factor of 0.8 to the foreignexchange element of the investment costs. The long-term cost of water hasbeen estimated using the long-run average incremental cost (AIC). Annex 17provides some details of the analysis. The revenue streams in thecalculations include the projected changes in tariffs (para 5.12), in realterms, which are needed for revenues to cover annual operating costs and debtservice. Some results of the calculations are summarized in the followingtable.

Water Supply Components Economic InternalRate of Return

AIC of Water Average Market AdjustedRs/m3 Incremental: Prices Prices

Discount Market Adjusted RevenuesRate Prices Prices Rs/m3 :

:Water SuDDl and Sewerage10% 3.80 4.01 4.65 10.6% 9.9%12% 4.23 4.48 4.59 Water SuDRlY only14% 4.68 4.96 4.j2 13.4% 12.4%

6.08 The AIC of water from this project ranges between Rs 4.01 andRs 4.96 per cubic meter, using discount rates of from 10% to 14% to representthe opportunity cost of capital. Presently, the HMWW tariff has meteredrates of Rs 1.50 to Rs 2.20 per cubic meter for domestic consumers and from Rs2.70 to Rs 5.50 per cubic meter for commercial and industrial users. With thetariff increases which have been projected (para 5.12) the average incrementalrevenues from water supply correspond to the AIC at a discount rate of 12.4%.Considering the water supply and sewerage components together, the internalrate of return is 9.9% The effects of a two-year delay in projectcompletion, and the concomitant implications for the timing of operating costsand revenues have also been assessed. The consequences are to reduce therates of return to 11.0% and 8.8% for water supply only and for water supplyand sewerage together respectively.

6.09 The project can be justified on the basis of its quantifiableeconomic returns, - using revenues as a measure of benefits. The economicrates of return for this project compare favorably with other projects in thewater supply sector.

6.10 The calculated rates of return actually tend to understate the realeconomic rate of return for the project, since no account is made for benefits

- 50 -

such as health and environmental improvements, which are difficult to quantifyin economic terms.

Projegt Risks

6.11 The major risks likely to face the project are: (i) the unprovenplanning and execution capacity of HMWSSB in the areas of water supply systemrehabilitation and of sanitary sewerage; and (ii) a possible lack of politicalwill to sustain tariffs at adequate levels.

6.12 These risks would be addressed by the project's provision ofconsultant technical assistance to aid the planning and design of the watersupply system rehabilitation and the sewerage components, such that HNWSSB canconcentrate its efforts on its essential management role, and by the project'sprovision of consultant technical assistance to design and introduce acomputer-based project management system. The tariff risk will be addressedthrough systematic annual tariff reviews (para 5.12) as provided in the agreedOperational Action Plan (Annex 14).

6.13 Having regard to the objectives of the Resettlement andRehabilitation Program Component 5 (para 3.03(c)], there is some risk, underthe program as conceived (Annex 7), that farmers who previously owned morethan 2 hectares will not regain or improve their former standard of living.This risk arises from the prospect of an increase in land prices in responseto the anticipation of borewell irrigation benefits.

6.14 As a safeguard against this risk, and the more general riskassociated with execution of socially-oriented programs of this kind, the RRPimplementation will be continuously evaluated by an independent social scienceresearch institution, which will report at six-month intervals. Upon receiptof these reports, GOAP will determine, in consultation with the Bank,appropriate revisions to the RRP [paras 3.16(c) and (d)].

VII. AGREEMENTS REACHED AND RECOMMENDATION

7.01 During negotiations, agreement was obtained on the following:

(1) that GOAP will (para 3.27):

(a) maintain the DRP until all construction of the Singur Dam,including remedial work, is completed and the Singur Dam isready for operation and maintenance; and

(b) subsequently ensure regular inspection and evaluation of thisdam in accordance with sound engineering practice;

(2) that GOAP will operate the Singur Reservoir in accordance with theoperating rules approved by the Bank (para 3.30):

- 51 -

(3) that GOAP will (par, 3.16):

(a) implement the agreed Resettlement and Rehabillitation Program(RIP) according to a three year timetable satisfactory to theBank;

(b) monitor all activity and problems arising in the implementationof the RRP through the office of the Collector - Kodak District;

(c) engage consultants acceptable to the Bank before March 31, 1990,to undertake the supplementary monitoring ofi, and theevaluation of, the RRP;

(d)promptly revise, as necessary, the RRP on the basis ofevaluation reports, in consultation with the Bank;

(4) that GOAP will (para 3.33):

(a) lend all the funds required by HKWSSB to finance the cost of thewater supply and sewerage physical works included in the projectat an interest rate of not less than 10.25% per annum over a 25-year term, with a 5-year grace period on principal and interest;

(b) provide, as grants, the balance of the funds required byHKWSSB for the low-cost sanitation program included in theproject; and

(c) provide, as grants, the funds for the technical assistanceand training components of the project;

(5) that GOAP will remit to HMWSSB the arrears in payments for standpostcharges due froos MCH in five equal annual installments, with thefirst payment to be made prior to March 31, 1990 (para 5.07):

(6) that GOAP will, with respect to the Resettlement and RehabilitationProgram, Project Component 5, and the related technical assistancein Project Component 6 (para 3.53), furnish audited accounts withinnine months of the end of each fiscal year:

(7) that GOAP and HKWSSB will carry out the Project in accordance withthe Operational Action Plan agreed during negotiations (Annex 14),as such Plan shall be updated from time to time in agreeoment withthe Bank (par& 4.04);

(8) that HMWSSB will furnish audited accounts within nine months of theend of each fiscal year (par& 3.52):

(9) that HMWSSB will:

(a) maintain until completion of the project a Project Cell staffedand organized in a manner satisfactory to the Bank (par& 4.10);and

- 52

(b)before May 31, 1990, establish, staff and maintain anorganization under HMWSSB's Director of Finance and Accounts,for budgeting, accounting and financial analysis, in a smnnersatisfactory to the Bank (pars 4.14):

(10) that HOWSSB will:

(&)except as the Bank may othorwise agree, with effect from itsfinancial year comm neing April 1, 1990, produce total revenuesequivalent to not less than the sun of its (i) total operatingexpenses; and (ii) the amount by which debt service requirementsexceed the provision for depreciation (para 5.13);

(b)before Karch 31, 1990 and thereafter, levy a sewerage servicecharge, as a surcharge of not less than 20 percent on chargesfor water service, to be payable by all water consumers who areserved by a private water connection, and whose property abuts astreet at a point along its length at which a public sanitarysever is provided (para 5.15).

7.02 The execution of a Subsidiary Loan Agreeomnt between GOAP and HKWSSBis being made an additional condition of effectiveness.

7.03 A condition for disbursemont (para 3.23) is that HKWSSB willformally adopt a Training Action Plan, agreed to by the Bank, before loan orcredit disbursements will be made against expenditures for personnel training.

Reco=mendation

7.04 Subject to the above conditions and assurances, the proposed projectconstitutes a suitable basis for a Bank Loan to India of US$10.0 millionequivalent for 20 years, including 5 years of grace, at the standard variableinterest rate, and an IDA Credit of SDR 63.9 million (US$79.9 millionequivalent) to India at standard IDA terms with 35 years maturity.

- 53 -

Page 1 of 7INDIA

HYDERAD WATER SUPPLY AND SANITATION PROJECT

The Sector Context in Andhra pradesh and in Hyderabad

Andhra Pradesh - Urbanization - Institutional Arrangements

1. Hyderabad is the capital of the State of Andhra Pradesh (AP). TheHyderabad Water Supply and Sanitation Project would be the first Bank-supported project in this sector in this state.

2. AP was formally constituted as a separate state in 1953 and itspresent boundaries were determined largely on linguistic grounds decided in1956, apart from some subsequent adjustments along the border with Tamil Naduin 1960. The dominant language is Telugu. Earlier, much of AP and some partsof some adjoining states were ruled by the Nizam of Hyderabad.

3. AP is in south-east India, and is India's fifth largest state inarea (277,000 ko2) and fifth largest in Ropulation with 53.6 million people,according to the 1981 Census. Its south-easterly border is the Bay of Bengal.In sequence from the north, through the west to the south, AP borders thestates of Orissa, Madhya Pradesh, Maharashtra, Karnataka arid Tamil Nadu.

4. AP receives about 67% of its 894 mm mean rainfall from the June-to-September south-west monsoon and a further 25% from the October-to-Decembernorth-east monsoon.

5. AP is drained by the two major river systems of south-east India,the Godavari and Krishna 1/ Rivers. The Musi River, which flows throughHyderabad, is a tributary of the Krishna. The Manjira River, the source ofthe additional water to be supplied under this project, is a tributary of theGodavari. The Godavari and Krishna river systems together account for anestimated 84% of the utilizable surface water of AP.

6. AP has three distinct phvsionraghic regions: (i) the coastalplain with elevations to 200 m, (ii) the Eastern Ghats and (iii) the PenePlain, which is part of the Deccan Plateau, and in which Hyderabad is located.Nearly half the state (47%) is considered to be chronically drought-affected.

7. Population trends, compared with those of India as a whole, are asfollows (MG is annual average growth rate):

Population in millions1961 MG% 1971 AAG% 1981

INDIA 439.1 2.24 547.9 2.26 685.2Andhra Pradesh 36.0 1.91 43.5 2.11 53.6

1/ The Godavari has a total catchment of 312,811 sq. km. over part of thefive states of Orissa, Madhya Pradesh, Maharashtra, Karnataka and AP. TheKrishna has a total catchment of 258,948 km sq over part of the three statesof Maharashtra, Karnataka and AP.

- 54

AEX 1Page 2 of 7

Thus, population grovth rates have been somewhat below the India averages.

8. AP's urban population in 1981 was 12.5 million, or 23.3% of thestate's total population. This is exactly the same proportion of urbanizedpopulation which prevailed for India as a whole.

9. There are 234 urban areas in AP. These are organized as 3Municipal Corporations and 93 Municipalities; the remaining 138 arePanchayats. However, in 1981, 50% of the urban population was in the 20 ClassI cities having a population of more than 100,000. The urban population isfairly evenly distributed in the three major regions of AP. Between 1961 and1971, the annual urban population growth rate was 3.0%; this increased to 4.1%in the period 1971 to 1981, which is slightly higher than the 3.9% urbanpopulation growth rate that provided for India as a whole in this period.

10. Within the state government, a Department of Housing, MunicipalAdministration and Urban Development (DHMAUD) has the general resRonsibilitYfo.r urban local government and urban development. (A Panchayat Raj Departmenthas corresponding responsibilities in rural areas.)

11. Other state-level institutions of some relevance to this projectare the Irrigation Department, which has a broad water resource planning,management and development role, the State of AP Ground Water Board, and aState Pollution Control Board, having a standard setting and regulatory role,especially in relation to industry.

12. Within DHMAUD, a Public Health Engineering Department (PHED) hasthe responsibility for the oversight, planning and sometimes engineering andimplementation of urban projects in the water supply and sanitation sector.The professional technical staff of both HMWW and MCH are PHED officers ondeputation.

13. Within the Municipal CorRorations (para 9), there are threestatutory levels of authority. The first is the elected Council (oftenreferred to as the 'General Body'), presided over by a Mayor, elected atlarge. The second is the 'Standing Committee' (of the General Body) and thethird is the Commissioner, - the Chief Administrative Officer of theCorporation and a state government appointee. The arrangements in theMunicipalities are similar. The municipal mandate generally includes watersupply, sewerage, sanitation, roads, drainage, solid wastes collection anddisposal, preventive health care, slum improvement and parks-recreation. InHyderabad, this list has excluded water supply since 1982, and now excludessewerage (para 30).

14. The largest source of finance of MuniciDal Corporations andMunicipalities is their authority to tax real property; the second source iscompensation under the Entertainment Tax Act. There is also an annual stategrant.

- 55 -

ANNEX1Page 3 of 7

15. In five of the 93 Hunicipalities and in all the threeCorporations, there are altogether nine "Urban Development Authorities" (UDAs)(Hyderabad has two), headed by a state-appointed Board and formed under the APUrban Areas Act, 1975. Their area of authority may extend beyond municipalboundaries and their authority includes land-use planning and control. TheseUDAs receive an annual AP grant of Rs 10 million each but supplement theseresources through surpluses from land development projects and through feesfrom land-owners when their land is rezoned by the UDA to a higher use-classification.

16. AP's Seventh Plan 1985-90 allocates resources to water supply-sanitation (WSS) and housing and urban development as follows:

AP's Seventh Plan 1985-90Rs Crore S WSS % WSS Total Elan

Urb Total

TOTAL PLAN 7,500 100%of which:

WSS, Housing Urban 982 13%of which:

WSS - Hyderabad 75 38% 17%- Other Urban .k2% 27S

Total WSS Urban 195 1900% 44%

Add WSS Rural 250 56STOTAL WSS 445 100% 6%

17. Thus, Hyderabad's WSS sector allocation is 38% of the total urbanallocation; this can be compared with Hyderabad's 25% of AP's urbanpopulation. The allocation for the WSS urban sub-sector is 44% of the totalsector allocation. This can be compared with the (1981) 23% of the AP'spopulation in urban areas, and possibly accounted for by the typically m 'higher per capita investment costs of WSS services in urban as compared torural areas.

18. Of particular note is the 6% of total plan allocation to the WSSsector; this is high by general comparison with other countries andsignificantly higher than the 3.6% in India's Seventh National Plan.

19. A comparison of AP's achievements and targets under the UN-declared International Drinking Water Supply and Sanitation Decade 1981-90(IDWSSD) with those of India as a whole is on Table Al.l. Of particular note:

(i) The proportion of the urban population served by water supply in1981 in AP (55.3%) was much lower than for India as a whole(72.3S);

- 56 -

ANNEX 1Page 4 of 7

TABI A.

INDI.A: INTMNATIONAL DRINKING WATER SUPPLY AND SANITATION DECADE

INDIA A NXIX A PPADESNTotal Population (milltrons) --------------------------------------------------.............. --............. Urban urol Total Urban mural Total

...... ...... . ....... ...... . .. ...... ........ .................. ...

1961 Cenma) 1¶59.73 525.46 65.19 12.49 41.06 53.551985 174.55 557.66 732.41 13.61 43.11 56.751990 196.84 601.94 798.78 15.36 45.86 61.22

Populetion served - ister Supply (milLions)...........................................

1961 Actual 115.48 162.07 277.55 6.91 16.74 23.65

1985 Origfint Target 133.81 295.58 429.39 7.42 27.98 35.401965 ActuaL 127.23 313.56 440.79 7.10 30.80 37.90

1991 Origifrl Target 190.55 608.59 799.14 14.27 45.72 59.991990 Revised Target 169.96 452.38 622.34 11.58 35.50 47.08

Population Served - Wter Supply (percent)

1981 ActuaL 72.3S 30.8X 40.5X 55.3S 40.8X 44.2X

1985 Original Target 81.1X 53.0X 58.6X 54.4X 64.9X 62.4X1965 ActuaL 72.9% 56.2X 60.2X 52.1X 71.4X 66.8X

1991 Original Target 100.0K 100.0X 100.0K 100.0X 100.0X 100.0K1990 Revised Target 86.3X 75.2K 77.9K 75.4X 77.4% 76.9K

Population Served - Sanitation (milLions)... ... .... ...... ... . . . . ... . . .

1961 Actual 40.u5 2.80 42.83 1.40 1.40

1985 Original Target 54.34 5.26 59.60 1.40 0.75 2.151985 Actual 49.56 4.03 53.59 1.48 0.73 2.21

1991 Original Target 154.36 152.17 306.53 11.42 11.43 22.851990 Revised Target 87.91 12.06 99.97 5.47 2.12 7.59

Population Served - Sanitation (percent)......... .................................................................

1981 Actual 25.1X 0.5X 6.3X 11.2% 0.0% 2.6K

1985 Original Target 33.0K 0.9° 8.1% 10.3% 1.7% 3.8%1985 Actual 28.4% 0.7K 7.3% 10.9% 1.7% 3.9%

1991 Original Target 81.0% 25.0% 38.4X 80.0% 25.0% 38.1%1990 Revised Target 44.7% 2.0% 12.5% 35.6% 4.6% 12.4X

Sources: Original Targets from "National Master Plan-India; International Drinking WaterSupply and Sanitation Decade"; Ministry of Works and Housing, New DeLhi; July, 1983

All other information from "Mid-Decade Review - 1986"

-57

ANNEX_1Page 5 of 7

(ii) The proportion of the urban population served by sanitation in1981 in AP (11.2%) WEs less than half of that in India &a a whole(25.1%);

(iii) Between 1981 and 1985, achievements in urban water supply andsanitation did not keep pace with population growth in AP. By1985, the urban population served with vater supply in AP haddeclined to 52.1% and with sanitation to 10.9%, whereas modestgains were achieved in India as a whole.

20. India's IDWSSD Plan notes that a high proportion of the populationof AP is economically backward (42.3%), that the per capita income of theState is among the lowest in India, and that a high proportion of AP's area ischronically drought-affected (47.1%). In consequence, the Plan concludes thata high priority should be accorded to AP in the IDWSSD program.

Hyderabad - the City and Environs - Institutions

21. Hyderabad is located about 300 km west from the Bay of Bengal inthe 'Telengana Region of AP, which is the inland upland area on the DeccanPlateau. The elevation is about 540 m above mean sea level. The terrain isundulating with some exposed rock outcrops and boulder-strewn areas. Theaverage annual rainfall is about 800 mm, concentrated in the June-to-Septembersouth-west monsoon. The city is drained by the Musi River, a tributary of the*Krishna (para 5), and by numerous small tributary drainage courses.

22. The bountaries of the Municipal Corporation of Hyderabad (MCH)enclose an area of 169.3 km 2 , of which 45.1 km2 is to the south and 124.2 km2

is to the north of the Musi River. Since 1964, these municipal boundariesenclose the previously separate city of Secunderabad. At the 1981 Census, thepopulation of MCH was 2.18 million.

23. However, there is a considerable contiguous urbanized area outsidethe MCH boundaries, including most of the area's industrial development, butalso considerable residential, commercial and institutional development.

24. Population data for Hyderabad is available for three distinctareas:

(i) The Hyderabad Metropolitan Area (HMA); an area of 1534 km2 , allunder the land-use planning and control of the Hyderabad UrbanDevelopment Authority (HUDA). This area extends into threeDistricts (Hyderabad, Rangareddy and Medak).

(ii) The Hyderabad Urban Agglomerate (HUA); an area of 309 km2,including all of the area if MCH (169 km2 ) and an additional140 km2 of contiguous urban area, which in turn includes the40 km2 of the Hyderabad Cantonment.

- 58 -

AN1EPage 6 of 7

(iii) The Munici al Cornoration of Hvderabad (MCH) area of 169 km2. Intabular form, these areas, together with the historic populationsas reported by HUDA together with computed average annual growth(AAG) rates are:

AREA Population in millions

HMA 1534 1.39 3.71 2.00 3.64 2.86HUA 309 1.25 3.71 1.80 3.71 2.59MCH 169 1.11 3.79 1.61 3.08 2.18

From the above, the population of the outskirts is growing more rapidly thanthat within MCH boundaries. The above growth rates are somewhat less than the1971 to 1981 urban population growth rates of 3.9% for India as a whole, and4.1% for AP as a whole.

25. Various estimates have been made of the future RoRulation ofHyderabad and the adjoining urbanized area. HMWW has estimated the 1991 waterservice area population as 3.39 million, of which 2.73 million are in the MCHarea. A report on future water supply for Hyderabad 1/ adopts an estimate of4.80 million for the MCH area by Year 2011, which is consistent with theestimates of the Hyderabad Urban Development Authority (HUDA). However, thesame report adopts an estimate of 1.20 million for the adjoining urbanizingarea, which is much lower than HUDA's estimate of 3.85 million for the samearea. The report on future water supply t/ estimates:

1981 Population in millionrHUDA 191 00 2011

HKA 2.86 3.30 4.50 6.00MCH 2.18 2.84* 3.69* 4.80

* By exponential interpolation.

26. Hyderabad's economy is no doubt partly assisted by its location inrelation to transportation infrastructure. It is well connected by rail, roadand air to the important centers of India.

27. Most of the Hyderabad area's large industries are outside the MCHarea. There are 31 such industries served by HMWW's water system. These areconcentrated in the production of chemicals, pharmaceuticals and ordinance.

28. Local government for Hyderabad proper is by the MuniciRalCoXroration of Hyderabad (MCH) (paras 9 and 13), which operates under theauthority of the Hyderabad Municipal Corporation Act 1954, as amended. Ofrelevance to this project, MCH has had the responsibility for the

1/ 'Report of the Expert Committee on Augmentation of Drinking Water Supplyto Twin Cities of Hyderabad and Secunderabad from Krishna/Godavar'River"; Hyderabad, May 1987.

- 59

ANEN B Page 7 of 7

construction, operation and maintenance of the city's sanitary sewerage systemuntil fall 1988 (see para 30), and its Community Development Department hasaccumulated experience with the implementation of low-cost sanitationprograms.

29. In Hyderabad, there are also two Urban Development Authorities(para 15): HUDA (para 24(i) above) and the Quli-Qutub Shah DA. The latteris concerned with preserving and enhancing areas of historic importance inHyderabad.

30. Water sugnX is usually within the municipal government mandate inAP. However, in Hyderabad, the Hyderabad Hetropolitan Water Works wasconstituted as a Board' under the AP Hyderabad Metropolitan Water Supply andSewerage Act, 1982. That part of this Act giving HMWW a sewerageresponsibility was never declared effective; sewerage remained at that time aresponsibility of the Municipal Corporation. In 1983, following a change inGovernment, this Act was repealed. The institutional name has survived, butthe organizational form became that of an agency of GOAP. In fall 1988, theinstitutional responsibility for sewerage in Hyderabad was transferred toHMW;.

31. At appraisal in March 1988, GOAP advised the Bank of its intentionto constitute a new wBoard' by special legislation, to be known as theHHyderabad Metropolitan Water SuRply and Sewerage Board" (HMWSSB) which wouldassume the full responsibility tor the management, planning, design,construction, operation and maintenance of both water supply and sewerageservices in Metropolitan Hyderabad. This legislation, the HyderabadMetropolitan Water Supply and Sewerage Act, 1989, was introduced into the APlegislature or, March 11, 1989, was passed and received the assent of thePresident of India - as required by its impinging on 'concurrent" topics underIndia's constitution - on June 30, 1989. All provisions of this Act becameeffective November 1, 1989 following an October 5, 1989 notification to thiseffect in the Andhra Pradesh Gazette.

32. The Act provides Aor a financially viable water supply andsewerage utility organization, and gives the Board the authority to settariffs, including a sewerage service tariff 'not exceeding 35% of the billcharging for the water consumed.. .

- 60 -

ANNEX 2

HYDERAkAD WATER SUPPLY AMr, SANITATION PROJECT

Bank Financed Water Sunoly-Sanitation. Urban and Urban Transport Projects in India

DATE$ (FMD/TV)

SIqI. PROJe 0 I C * Lam CLOSI

Prl" wtow t U_| a AAt16I CE STl PoetenJ WtCF tMeUT at O S

. .... ! Is CITY ttAy uro.. Trinup P7 uCU me Una so u55 mS PUTMIU6l I1~~~~~~~............. .................................. ........................... . .......... ............ ....... ........ ...... ....... ....... ....... NOW... ....... V 0..1...L A.....

I 41U _5 __ti _ -t 73 116.2 55.0 - 1/SI/S 3/13/74 ;3la

41M36 Ut_Utt Pr~ 76 n wt so ln1t/4 1.0/2C3 4ISI Mm sq`Clet EEl 7 94.9 4*7 31.0 6/14/73 1/10174 12131/79 cLaiiii3 4 560186 INW $411111" E T 76 130 6 0. . /19/73 2106/74 1231/U2 CLO4 41a013f TEP.t SO SE EA 7 1. 13 25.0 10/2076 3/10/77 4/310/64 CLOSE

1 41513 ws o_I U m E 77 52.0 0r 24.0 3/0/7 4/01/77 o2./3U CLOS4 41560154 MmI Sueis Calaitta 06-11 76 13.? 716 67.0 12/13/77 4/0 7/n 4/30/84 CLOWS

7 416901? *Ueetra "ew Wu-it 79 411.6 IQ* 196.0 7/25/71 6/11/79 3/31/6? 3n/31/ CLOSE2 69166 P TV 6 _ 9 76. 0 64 3.0 912170 1/25/1,9 3,131/7 CLOS

41MM169en _ u cE5 t5nolJ7/1*2o xseo

90 41160169wa ~e mb e 06VM T 79A 100.0 19 44.0 5/01/79 11/09/79 4m/30 CLOSE

10 41590164 Mmt Stt ut Catafiltt t J"-t ila sa TEA 50 121.7 I 60 /0/ 12 126/30/ 1l2/s/

11 4 1mis tlt 21 tr 1 1.03 Sao noV062vttes17 ~~~~~the T _t i u tI 2 5 s 0 WI2<t5 C2Xt5 /5/b

11 41=MI11 Tlwjat Now "on S ni 60I 16.0 1046 680.0 6/19/SO 6/05/SO 12/31/67 12/31/Ut CLOSEl

1bXlm xJ un a tso s 1X^s o2 o 1V17/tt 1*/ovX 1VIVon

12 410116 tt Po4 Usla N.e.. LE- U61 67.9 IU 42.0g 12/16/12 3/21/SI 3/31/67 3131/01 CLOUD13 414P021 lwn Pr* £a, 0 6 1. 1 25.0 - 0/27/61 4/22/62 4/30/67 CLOSE¶4 41660126 Mmt Suqal Calcutt 6-ll 63 303.1 1369 147.0 - /19/83 10/07/f0 3/31/69Is 41690224 md'*u praw LE as s0.1 I - 2329 24.1 6/26/3 1/16/84 4/30/69

IT 41 2 2 Tt Lat W6 83 141.6 1260 72 .0 La 7 7/06/r 2/06/63 3/31/017 4160A246 T41 wajtr 06 153.3 1454 73.0 3/29/64 2/22/65 6/30/69IS 4169*2C4 Xaru.Iltr,f 6y 136 216.7 1a4b U 6S 7 1.0 1/20/65 6/22/U 9/30/0

419 PA259 `*1 ujwaet ULIE 86 130.5 1643 62.0 . 2/17/U9 I1/06/86 12/3'/9220 4150272 agnrm.More kob 01s-l 6 7 304.3 ¶7SO 145.0 27169 40.0 ¶2/16/SO 1/29/Ut 6/3/921 419027n Kwarl Wal 86 61. 21622 41.0 7/16/U5 9/24/8U 3/31/9122 41SPAM Uttwr Pwgdm LEE 67 237.6 I7M 130.0t 2797 20.0 4/21/67 2126/U11 3/31/9023 42560349 T I OR& Macie. Wu 67 ¶12.2 1322 14.0 281.6 53.0 6/17/87 3/17/55 12/31/9024 4150867 Tmfl now UNE al6 43.7 1923 300.2 - */ig,U *ot Y*t 9/30/9025 42039 .0TIL "INGt FlMC 86 640.5 -* 2929 250.0 3/31/U 5/16U/ 3/31/91

TOTAL......... A.................... ...... s......n ....... .......... ... ............ ................

TOTAL M.tlU USE *t$tLrt 4,710.7 1,850.2 412.1 13 PEtJECTS CLOSED................ ~~~~~~~~~~~~....... ....... . .............. ....... ......... ..... ........ ... ........ .............

PROJECT CCEDIT LOU PLUSme of COST Amount Amont LOU0

PIOJCTS lilt1. liSt Unal us%t........ ........ ....... ........ .................

"ATIOm" Nam I F I miom 1 840. 250.0 250.0........ ....... . .... . ........ . ....... .................

STATS 'OPECTS Watwr 9t&y-Sawer 7 817.3 392.0 0.0 392.0urban 4 162.1 492.2 ". I36.3Truuet 0 0.0 0.0 0.0 0.0

I..... ....... ..... ....... ....... ............ ........

SLTOTn L STATE 11 1,679. 8".2 4.1 M26.3.... ........ ........ ....... ..... ..... ..... . .......

sIuL CIe Water SUItP-S.w0fe. 4 906.3 412.0 93.0 S05.0P0JCTS urAmA 7 1,032.0 '10.0 0.0 491t.0

Traeupmn 2 172.2 16.0 25.0 81.0.... ........ ........ ........ ....... ...... ;.....

SATOTAL CITY ¶3 2,190. 96.0 11.0 1,064.0........ ....... . ....... ....... . ....... .................

........ ....... . ....... ....... . ....... .................

Get TOTAL 25 4*710.7 16 50.2 412.1 2,262.3.*** *. **e....s"....... .......

BS 9*-ECTOS Water sOPty-SIWfs. 11 1,803.6 804.0 93.0 897.0urtn 11 189.1 990.2 44.1 10.Truwrt 2 172.2 56.0 25.0 81.0Haous Firwnce 1 840.8 250.0 250.0

T 1...... ....... ....... ...... . .......

CItANt TOTAL Z5 *,210,7 1,850.2 0t2.1 2,262.3............ ....... ....... . ....... ........ ... .... ...

- 61 -

ABUE 3PaSe 1 of 10

INDI

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

The Existing Water System - Rehabilitation (Proiect CouDonent 2)

Introduction

1. This annex suarizes the project preparation review of theexisting water system, which has led to the definition of Project Component 2,"Rehabilitation and Strengthening of Existing Water Systems', and parts of theproject's technical assistance. It is organized in five parts:(i) Introduction, (ii) Water Sources and Transmission, (iii) Water Treatment,(iv) Water Distribution, Connections and Standposts and (v) Workshops,Laboratories and Offices. The institutional arrangements and the acronymsHMWW and HMWSSB are described in Annex 1 paras 30 to 32.

Water Sources and Transmission

2. The existing water system obtains water from three surface waterimpoundments. Two are upstream of Hyderabad on each of the Musi River and its.ributary, the Esi River. The Musi River flows through Hyderabad and is atributary of the Krishna River. These sources provide a gravity supply. Athird existing source is the barrage on the Manjira River, which is atributary of the Godavari, which has been developed in two schemes referred toas the Manjira Phase I and Phase II sources. In both, water is pumped firstto the respective treatment plant and then, in two stages, to the city.

3. Groundwater. Hyderabad is underlain by ancient rocks of volcanicorigin. Such rock formations are not normally good groundwater sources.However, the groundwater prospects have been studied both by the CentralGround Water Board of GOI in 1982 and by HMWW in 1986, who consultedextensively with the State Ground Water Board. The quantity of groundwaterwithdrawal by private sources, mainly industries and hotels but not includingthe general public, is estimated to have increased from 15 Mld in 1982 toabout 80 Mld in 1987. This is no doubt one consequence of the 1984-87 droughtconditions and the inadequacy of the public water supply.

4. HMWW itself has constructed some 4500 borewells in the GreaterHyderabad area. Some 3920 of these are of 100 mm diameter and fitted withhandpumps and are used by the general public. The remaining 580 borewells areof 150 mm diameter and fitted with submersible pumps. Of these, 425 are inworking order and have yields of about 4500 liters/hour each, and yield in theaggregate an estimated 40 Mld. Most are connected directly to thedistribution system, but others are used as filling stations for mobiletankers which are operated by HMWW.

- 62 - ANNEX 3Page 2 of 10

TABLE A3.1

INDIA: HYDERABAD WATER SUPPLY AND SANITATION PROJECT

HYDERABAD: EXISTING SURFACE WATER SOURCES AND TRANSMISSION SYSTEMS

PFMR ECISTING SURFACE DMPOUNUDXT SOURCES

SOURCE -- Oa nsagar HLyathsagar ManjLra I ManjLra II

Year Co issm oned 1923 1927 1965 19S1River Must EZs Manjira ManjiraCatebment (km2) 738 1311 --------- 16,770 -------Spillway Level (m) 545.59 537.51 --------- 503.45 -------Storage CapacLty(MCM) 124.6 104.8 --------- 42.50 -------Nominal Yield (Mld) 114 Mld 90 Mid 62 Mld 164 MidDrought Yield (Mld) 23 Mld 23 Mld 82 Mld 164 MldDistance to City (km) 9.6 km 9.6 km --------- 56 km -------

TRANSMISSION TO TREATMENT PLANT_______________________________

Pumped or Gravity Gravity Gravity Pumped PumpedPump Capac. (Mld) 86.36 Mld 166.30 Mld

Head (a) 40.50 m 22.50 m

Start Elev'n (m) 545.59 m 537.52 m 493.78 m 493.78 mLength (m) 14,200 m 9,600 m 5,000 m 1,000 mDiameter (mm) Channel * 1524 an 1016 mm 1067 mmMaterial Hume CI CIEnd Elevation (m) 533.70 m 528.00 m 522.68 m 504.22 m

TREATMENT PLANT (WTP)

Name** Asifnagar Miralam Rajampet KalabgurCapacity (Mld) 123 Mld 90 Mid 82 Mld 164 MldClear W Storage (MI) 1.95 Ml 0.91 Ml 1.23 Ml 15.46 Ml

TRANSMISSION TO CITY

WTP to Pattencheru - - Pumped PumpedPump Capac. (Mld) - - 90.32 Mld 164.09 Mld

Head (m) - - 68.00 m 65.00 m

Start Elev'n (m) - - 519.68 m 501.24 mLength (m) - - 24,000 m 30,000 mDiameter (mm) - - 990 mm 1500 mmMaterial - - PSC PSCEnd Elevation (m) - - 544.85 m 544.85 m

Pattencheru to Lingampally (Manjira I) Pumped -Pattencheru to Sydernagar (Manjira II) - PumpedPump Capac. (Mld) - - 88.00 Mld 164.16 Mld

Head (m) - - 73.00 m 80.00 m

Start Elev'n (m) - - 541.85 m 541.85 mLength (m) - - 11,000 m 11,000 mDiameter (mm) - - 914 mm 1500 mmMaterial - - PSC PSCEnd Elevation (m) - - 592.23 m 605.56 m

* The water cross-section of the channel Is a semi-circular bottom section of 2.5 ft radius wLth an upperrectangular section 5.0 ft wide by 4.5 ft deep. The aqueduct 1s of stone masonry constructlon.

*T There is also 9.0 km of 750 mm RCC gravity main connecting the Osmansagar source to an old and smalltreatment plant at Sh-lkpet, from whieh the water is pumped to the Golconda reservoir on a nearbyhillock from whence lt is delivered to a nearby milItary area and the Golconda distribution zone. It isproposed that thLs Sh-lkpet plant be abandoned and the raw water diverted to Asifnagar through exLstingpipelLnes.

NOTE The total nominal source yield above Ls 450 Mld. STh 1987 actual yield, because of drought,was about 292 Mld.

- 63 -

ANNEX 3Page 3 of 10

5. The State Ground Water Bcard is of the opinion that the presentpublic and private withdrawals approach, and may even exceed, the annualreliable recharge levels. Thus, it has been concluded that the groundwaterwill continue to play only a very limited role in the provision of publicwater supply in Hyderabad.

6. The total of these surface and groundwater supplies to HKWW innormal and non-drought years is 490 Mld. Of this total, some 69 Mld is"committed" in the aggregate to 31 industrial consumers outside the MCHboundaries. A further 142 Mld is 'committed' to 25 bulk consumers, alsooutside the MCH boundaries. These bulk consumers include other municipalitiesand villages, the Central and Osmania Universities, the Railways (housing) andthe Cantonment. The net supply for MCH then is some 279 Mld. On a grosssupply basis, this is a mere 102 lcd (liters per capita per day) for theestimated 2.73 million people to be served within MCH by the year 1991, andthe concurrent demands of commerce, industry and institutions. This figurecan be compared to the 218 lcd available in Delhi, the 191 lcd available inCalcutta and the 158 lcd available in Bombay. Under drought conditions, thetotal supply available reduces to 332 Mld. Under these conditions, if the"committed" supplies are deducted, the remaining gross supply for Hyderabadreduces to a mere 44 lcd.

7. Such drought conditions prevailed for the four years 1984 through1987. One consequence was the restriction of domestic water supply within MCHto a period of two hours every second day.

8. Elements of the source transmission systems in need ofstrengthening, replacement or rehabilitation and which are included inComponent 2 of the proposed project are: (i) provision of bulk meters, and(ii) the replacement of 4.5 km of the existing Kalibgur to Pattencheru(Manjira II) PSC transmission main, which is leaking severely, with MS pipes.The open channel masonry acqueduct on the Osmasagar system, which was leakingseverely, was repaired during the 1984-87 drought. The provision of: (i)standby motors for the raw water intake at the Manjira Barrage; and (ii)replacement pumps and motors for the pumping plants at each of the Rajampetand Pattencheru pumping stations (Manjira I), is being undertaken separatelyand outside the project.

Water Treatment

9. On Table A3.2, four water treatment plants are listed,corresponding to the four water sources for Table A3.1. It is noted that theold and small water treatment plant at Shaikpet is to be abandoned as it hasoutlived its useful life, as explained in the footnote to the Table A3.1.

10. The Asifnagar plant is the oldest and the one in the poorestcondition. Here, some of the structures are in need of repairs. Furtherstudy is required, and technical assistance is included in the project todetermine whether replacement of substantial parts of this plant would be

- 64 -

ANNEX 3Page 4 of 10

TABLE A3.2

INDIA: HYDERABAD WATER SUPPLY AND SANITATION PROJECT

EXISTING WATER TREATMENT PLANTS*

Asifnsger Waer Trestment Plant MiraIse Rajampet Kainbgur---- --------- ---- ----------- ---------- Water Water wakter

P;ttere; n Candy Pneumatic Treateent TrVatent TreatmrtTOTAL Plant Piont Plant Plant Plant Plant

Wan oure - - - ---- --- G-mOineaga7- - - - HimayathBagar Manj ira I Manj; a IICeomiseioned 1921 1931-64 1974 1957 1965 1981Capacity in Mtid 123 Mid 41 Mid 55 Mid 27 Mid 90 Mld 82 Mld 164 Mid

Water to Plant By: - - Open Channel - - RCC Pipe Hus Pipe CI Pipe CI Pipe- Lenth (a) - - 14,200 m - - - - 14.200 * 90600 a 5.000 * 1.000 a

Raw Vater Turbiditie*- Monmoon 500 ppm 500 ppe 5.000 up to 50,000 ppm- Other 20-50 pp 10-200 ppe 30 - 100 pp.

Prechlorination ? Yes ? Yes at present Yes

Preettling No of T nk - 9 Tank - - 1 4 Vert.-Moriz. or Vert. Vsrt. Horiz. Clarifiers-Detention (Houra) 1-1.5 Hours 4 Hours 4 Hour.

Sedimentation No Of Tanks 2 Tank. 4 Tanks 1 Clari- 36 2 Clar;- 4 Cla,i--Moria. or Vert. Horiz. Vert. flocculator Vert. flocculators flocculatora-Ostention (Hours) 2-3 Hours 1.5-2 Hours 0.5 Hours 2.5 Hou,& 2.0 Hours 2.5 Hour,

Filters (Rap Sand Oran) 12 Filters 9 Filters 3 Filtera 10 Filteor 9 Filters 18 Filter.- Lose of Heed Meters Nne Not Working t Need Repl't Need R*pl't Need Repl't-ate of Flow Contr None Not Working t Need Repl't Need Repl't Need Repl't

Backeash Interval 48-72 Hours 48-72 Hour. 48-72 Houra 48-72 Hours 24 Hours 24 Hours

Poet Chlorination - - 1-Chlirinator - - 1 Chlorinator 1 Chlorinator 2 Chlorinat's 2 Chlorinat'

Clear Water Reservoir - - - - 1.56 Ml - - - 0.46 Ml Smell 8lTerk 1.36 Ml 3.2 Ml and.4.5 Mi Diet'n

12 3 MlOutflow (Oravity or Pueped) - - - - - - - Cravity - - - - - - - - Crovity Pumped Pwmped

(Pump to (4 p 0 45 Mid (4 p 6 82 MIdJahnnuma) 68 a Head) 65 a Head)

Oeckw sh Recycling - - - - - - - Y - - - - - - - -a-None Yea None

Laboresory Yea-the main and aoet coeplete H4dv lab V. Sals V. small Norio

Workshop Yea but eoee of the equip-ent needs None None Nonereplacement

Ceneral Acoeaeeent Condition feirly poor Condition Condition Condiiton Conditionsomewhat Fairly Fairly Fsirlybetter Cood Cood Cood

Eatimted Coete Rehb'n Re 14.48 million - - - - - - - - - - - - - - - - - - Rs 2.03 mill. Re 1.60 mill. Re 2.68 ill.(Jen 1, 1988 Base Coat)

* Note:There is also en old (built in stages between 1922 and 1950) end "aell Water Treatomnt Plant at Sheikpet.This plant haa 3.04 Mld slow sand filter , a ̀ 34 Mld rapid snd gravity filter end a 0.9 Mid pressure filter ahihi out of order. The plant's total capacity is 7.7 Mid and only 1.7V of the total e.ieting treatment capacity.

This is up plied from the Omonaeaaer source through 9.0 km of 750 m RCC gravity min. The treated ter apumped to the Golconda resrvoir on a neary hillock fro whene it is delived by gravity to a neat ry militaryarea and the Colconds diatribution rone. This plent hae outlived ite useful life and is proposed to be abandonded.The raw water will be transmitted through ecieting Pipeline* to the Aeifnagar plant which has adequate capacity.

- 65 -

ANNEX 3Page 5 of 10

justified, as compared to the repair of the existing facilities. Thereplacement of parts of the plant would reduce the logistical complicationsresulting from having to take parts of the plant out of service on a piecemealbasis, which would be required if the repair alternative were to be chosen.

11. The structures in the remaining three plants at Hiralam, Rajampetand Kalabgur are essentially in good condition. However, the projectpreparation studies have identified in these and in the Asifnagar plant alarge number of fairly small items of piping and mechanical and electricalequipment replacement and repair needs. Further, none of the plants haveproper inflow and outflow metering, which is essential for proper plantoperation, and also to provide useful information for the management of thewater system.

12. The estimates for existing water system rehabilitation (ProjectComponent 2) include a base cost estimate of Rs 20.79 mill'on for therehabilitation of all these plants, including the provision of 7 Ml clearwater storage at the Rajampet plant; also included are separate allowancesfor the provision of bulk flow meters.

13. There is considerable room for improvement in the currentoperation of these plants. The project's technical assistance includes thework required to prepare complete operation manuals. It is planned that thesewill be also used as a tool in the personnel training included in the project.

Water Storage. Distribution. Connections and Standposts

14. Apart from clear water storage at treatment plants (Table A3.2),and the project improvements (para 12), the existing water system has some200 Ml of 'master balancing" and/or service reservoirs located on hillsoutside the city. With one exception these are surface reservoirs of stonemasonry or RCC construction; the exception is an elevated tank. The ongoingStage 1 and the proposed Stage 2 (which is Component 1 of the Project) of theManjira Phase III schemes will add a further 27 Ml to this storage.

15. Water from these "master balancing" reservoirs flows to"Rrincipal" and "secondary' reservoirs through the trunk and localdistribution systems. There are 38 "principal" reservoirs at 18 sites; 9 ofthese reservoirs are elevated, two of them are essentially "sumps" fordistribution pumping stations, and the remaining 27 are surface reservoirs onhills, strategically located and elevated with respect to the distributionarea. Their aggregate capacity is 167 Ml.

16. Together the "master balancing' and "principal" reservoirs willprovide 394 Ml of storage; this is more than 12 hours of supply aftercompletion of the Manjira Phase III schemes and is adecuate in the aggregate.However, because of the location of the existing storage, some additionalstorage is required to effect proper and efficient distribution of the wateravailable after completion of the Manjira Phase III schemes. Such works are

- 66 -

Page 6 of 10

included in the project's rehabilitation and strengthening of the existingwater system (Project Component 2) as follows:

Resource Zone Location CaRacity Elevation (m)

1. Prakashnagar Nr Prakashnagar El. Tk 3.0 Ml 525.02. Hussainsagar Nr Slaughter House 6.0 Ml 525.03. Asifnagar Bojagutta Hill 13.0 Ml 540.04. Jubilee Hill Jubilee Hill 10.0 Ml 620.0

: ~~~~~~~~~~~~~~~32.0 Ml

17. There is a further 33 Ml of 'secondary' distribution storage in 75small local reservoirs within the city's distribution system: 31 of thesetanks are elevated, 21 are "sumps" for local pumping stations, and theremaining 23 are surface reservoirs.

18. Twelve major booster uipning stations at eleven sites. typicallyhaving installed power in the range 60 to 125 hp, exist within the city andoperate intermittently as required. The use of some of these will bediscontinued after the completion of Project Component 1. There are anadditional 40 small booster pumping stations (5 to 50 hp) within thedistribution system.

19. However, the four additional service reservoirs identified inpara 16 require the provision of three additional pumping stations a. follows:

Reservoir Pumning Purpose Supply Pumos Head1. Prakashnagar Local Distribution 7.15 Mld 3 @ 65 hp 25 m2. Hussainsagar Local Distribution 20.70 Mld 3 @ 200 hp 25 m3. Bojagutta -- None required - -- - - - - - - -4. Jubilee Hill Supply to Reservoir 35.00 Mld 5 @ 950 hp 80 m

20. The consultant-assisted project preparation studies haveconsidered the tr distribution system as comprising major ("masterbalancing' or service) reservoirs, trunk distribution pipelines and the largerbooster pumping stations. Analysis has considered this system divided intofive 'regions" and also into 27 "zones'. The analysis has determined theimprovements needed to: (i) properly distribute the water which will becomeavailable upon completion of the Manjira Phase III Stage 1 (underconstruction) and Stage 2 (Project Component 1) supply improvement schemes and(ii) give a measure of flexibility in the distribution of water from thevarious supply sources, having regard to the vulnerability of the Osmansagarand Himayathsagar sources to drought.

- 67 -

ASlEK 3Page 7 of 10

21. Regions 1 through 3 are areas within MCH, and Regions 4 and 5 areoutside MCH but within the water system service area as follows:

Region 1 Region 2 Regiion 3 Resgion 4 Region SS. of Musi R. N. of Musi R. N. of Region 2 N. & E. of Upstream of

S. of Hussainsagar MCH LingampallyN. & W. ofMCH

Within MCH Within MCH Within MCH Outside MCH Outside MCH

22. After assessing various levels of water availability, giving dueconsideration to the possibility of reoccurrence of recent drought conditions,the studies identify the need for additional trunk distribution mains toeffect "north-south transfers"; ie. to direct water from the less droughtvulnerable Manjira sources to areas normally served by the Osmansagar andHimayathsagar sources. The studies consider the cost and practicality aspects(including traffic disruption) of three alternative ways of effecting these"transfers', and conclude in favor of some 22.3 km of trunk main, in 9 sub-components, ranging in diameter from 400 mm to 900 mm. These works areincluded in Project Component 2.

23. The analysis of the local distribution network has beencomplicated by the inadequacy of existing maps and records which lack thedetails of exactly what the system comprises.l/ Howevet, three zones havebeen analyzed using a computer. The analysis co.usiders various categories ofconsumer in the zone, assumes a peak-hour factor of 3.0, which is reasonable,and assesses the works requirements such that the system can actually deliverthe demands. On the basis of the findings in these three zones, therequirements for the remainder of the local distribution system have beenestimated.

24. Hyderabad's water distribution system has been historicallyplanned for a minimum distribution pressure of 7 meters. This is low butcannot be changed across the board without a major reconfigurration of thesystem, which may involve abandonment of many of the existing distributionreservoirs. A minimum distribution pressure of 17 meters is now used in manyof the larger cities of India. This higher pressure tends to reduce the levelof highly uneconomic private investment in on-premises sumps and pumps topermit water delivery to the upper floors of, say, three-story buildings.Under the project, distribution pipeline design will be aimed at distributionpressures of 17 m, where this can be achieved without implications forexisting service reservoirs or major implications for the existing trunkdistribution pipelines.

25. Further studies of the existing distribution network, making useof the maps (para 23) and linked to leakage and wastage studies, are includedin the project's technical assistance. However, provisioral estimates are

J/ Complete mapping of the existing system is also included in the project'stechnical assistance.

- 68 -

Page 8 of 10

included in Project Component 2 for both distribution strengthening and forthe replacement of mains found beyond repair in the unaccounted-for waterstudies (para 29-32). These strengthening/replacement works will be designedfor the estimated local demands in the year 2011.

26. Metropolitan Hyderabad's Water system has about 174,000 privateconnections, divided into three categories: domestic, non-domestic (coomercialand institutional) and industrial. No new connections have been providedsince late 1986 because of the 1984-87 drought situation. A 1/2-inch domesticconnection is normally provided to dwellings having a plinth area of under 500square feet and a 3/4-inch connection to provided larger dwellings.

27. Some 92% (about 162,000) of the water system's connections aremetered. This is a very important aspect of the system in the context of theneed to encourage water conservation and deter wastage. To a large extent,water consumption beyond reasonable needs can be constrained by a sharplyprogressive tariff structure. In Hyderabad, each consumer must purchase hisown meter - selected from an HMWW short-list of approved manufacturers - whichis tested by HMWW before installation. HMWW has a meter testing workshop;from the records it appears that between 10 and 145 meters are tested daily,(Testing all the 162,000 meters at an average interval of five years wouldrequire a daily testing rate of about 130.)

28. There are 3400 unmetered public standposts, mainly to providewater for the poor, for which an annual charge (for which payment is manyyears in arrears) has been levied against MCH. HMWW has estimated that thesestandposts average a delivery of about 5400 liters per day during the normaldaily service period of eight hours. This is equivalent to a discharge rateof about 0.19 liters/s which is only a little less than 0.25 liters/s which isoften considered to be a reasonable estimate of the full discharge of an opentap. Accordingly, it would appear that many of the public standposts arerunning full for most of the water service period.

Hours of Service - Leakage Control

29. In normal times, the practice has been to provide domestic waterservice for two periods of four hours per day. During much of the 1984-87drought period, it was necessary to give a severely curtailed service of twohours every second day. A most desirable objective is to provide continuousservice. This avoids the risk of ingress into the water system ofcontaminated shallow groundwater when the pipes are not under pressure. Italso removes the incentive for inefficient private investments in on-premisessumps and pumps and storage tanks, by those who can afford them, such thatpeople provide for themselves a twenty-four hour supply. Such investments areinefficient because the same funds invested in the public water system couldprovide far greater benefits.

30. Apart from the recently prevailing drought conditions and from thefundamental inadequacy of the present supply capacity, the major obstacle tomuch improved hours of service may be high leakage rates. The absence of bulkmeters (or of bulk meters in working order) and the fact that the records ofmetered consumer consumption are not aggregated, make it impossible to make an

- 69 -

ANNEX 3Page 9 of 10

assessment of unaccounted-for water, including leakage, at this time.However, increased supplies and the provision of bulk moeters under theproject, together vith computerized billing system proposed to be introducedwith technical assistance provided under the project, will make it possible toquantify the problem and initiate some studies on the optimal strategy to beadopted for its resolution, and to commence the implementacion of thisstrategy.

31. The general form of these studies will be to: (i) quantify theproblem and identify priority areas for attention on the basis of an analysisof bulk meter records and consumption records (para 30); (ii) preparecomprehensive maps and records of the system (para 23) based on physicalsurveys, (including excavation and spot checking of pipelines as required);and (iii) determine and resolve anomalies through a computer network model ofcomponents (zones) of the system and some field testing of pressures andflows. (Such anomalies may be the result of large but previously undetectedleaks but may also be the result of erroneous system records or of valves openor closed but thought to be otherwise).

32. It seems probable that a large part of any leakage problem may befound in service connections, of which in Hyderabad there are 172,000. These,as in most of India, are made of galvanized iron (steel) pipe, which issusceptible to corrosion in some circumstances from inside, depending on thecharacteristics of the water, and in any event from the outside. Such leaksmay be small individually, but there may be many of them. HMWW staff believethe useful life of such a service connection is a mere 10 to 15 years. Thepresent approach is to request the consumer connected by a known leakyconnection to replace the connection. However, HMWW finds it difficult, inpractice, to discontinue water service if such a request is not acted upon bythe consumer. Thus, some investigation and pilot-scale installation ofalternative non-corrodible pipe materials for service connections are alsoincluded in the project's technical assistance.

WorkshoRs - Laboratories - Offices

33. The Asifnagar water treatment plant has a suitably-staffed and,for the most part, an adequately-equipped laboratory for the purposes ofmanaging the water treatment processes and of surveillance of treated waterquality. Certain minor improvements, and the laboratory needs of the otherlarge treatment plants (Miralam, Rajampet and Kalabgur), have been assessedduring the project preparation studies, and the costs are included in theestimates for the project (Component 2).

34. In addition to these laboratories, HMWW maintains a chlorineresidual testing capability and a regular distribution point sampling programat various depots in the distribution system.

35. There is a workshop at the Asifnagar treatment plant, butreplacement of equipment which is worn out or obsolete and the provision ofadditional tools are also included in the project (Component 2).

- 70 -

Page 10 of 10

36. The main offices of aHWU are inadequate as to the amount of space,and further organizational growth can be anticipated. One consequence is thata certain amount of additional office space is rented, - but this hampers goodinternal coordination. There are plans to construct additional office spaceat the site of the present main offices; this work is also included inComponent 2 of the proposed project.

- 71 -

ANNEX 4Page 1 of 9

INDIA

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

The Existing Sewerage Svstem - Rehabilitation (Proiect CoMRonent 31

Introductign

1. This annex summarizes the project preparation review of theexisting sewerage system, %,hich has led to the definition of Project Component3, "Rehabilitation and Strengthening of the Existing Sewerage System', andparts of Project's Techr.ical Assistance. This overall assessment of sanitarywaste disposal has also led to the definition of Project Component 4, 'Low-Cost Sanitation Program", described in more detail in Annex 5. This annex isorganized as follows: (i) Introduction, (ii) System Overview, (iii) ServiceConnections, (iv) Branch Sewers, (v) Trunk Sewers and (vi) Sewage Treatmentand Effluent Disposal. The institutional arrangements and the acronyms HMWWand HMWSSB are described in Annex 1 paras 30 through 32.

System Overview

2. The original separate sanitary sewerage scheme for Hyderabad wasplanned in 1921 and designed to serve a population of 468,000 at 110 lcd overan area of about 87 km 2 . The system went into operation in 1931 and the firsthouse connections were made in that year. A sewerage system for Secunderabadwas constructed separately, but the two systems were joined when the citieswere amalgamated in 1964.

3. The configuration of the system is dictated by topography. TheMusi River, flowing more or less west to east, divides the city (MCH area)into a north area of 124.2 km2 and a south area of 45.1 km2. An interceptorsewer follows each of the north and south banks of the river. The southinterceptor eventually connects to the north interceptor through an invertedsyphon, and from this junction the flows are easterly for some 3 km to theexisting sewage treatment plant at Amberpet, which became defunct but iscurrently being rehabilitated by MCH (para 7).

4. The main sewers of the 15 drainage districts (north - 7; south8) follow the principal drainage courses of the district and join one of thetwo interceptor sewers. Branch sewers extend from 1hese main sewers and localsewers extend from the branches. The collection system is almost entirely agravity system, but three small pumping stations have permitted its extensioninto low-lying areas.

5. Since the original system construction in 1931, the collectionsystem has been extended considerably as the city has grown. This hasresulted in severe overloading of some parts of the system, and the surchargeoverflows to open surface drains. (There are some 40 such drains, or"nullahs", on the north side of the river and 25 on the south side.) The

- 72 -

ANNEX 4Page 2 of 9

system has been extended outside the boundaries of HCH to the north, mainly tocollect industrial wastes. Hussainsagar, an artificial lake near the centerof Hyderabad, is severely polluted as a result of industrial waste dischargesand the inflow of domestic sewage from surface drains and overloaded sewers.All of the nullahs show evidence of severe pollution. The Musi River haslittle more than a trickle of flow outside the monsoon season despite its verylarge channel, which may be full vhen carrying monsoon flood flows. As may beexpected, it also shows evidence of severe pollution.

6. Following severe floods in 1970, GOAP established a committee toinvestigate, which recommended a 'remodelling of the sewerage system and theprovision of additional sewage treatment capacity. A second study group wasalso constituted to examine the strengthening of the surface water drainagesystem. In 1981, formal proposals were submitted to GOI for a three-phaserenovation and extension of the sewerage system and the prevision of sewagetreatment. The planned sewered area included all the 169 km2 of MCH, some100 km2 of contiguous urbanizing areas and 40 km2 of the Hyderabad Cantonment.The planned ultimate population for this area was 4.0 million.

7. MCH's estimated cost of these works, as revised in 1987, is PhaseI Rs 28.7 crores, Phase II Rs 48.4 crores and Phase TII 47.9 crores, for atotal of Rs 1.3.0 crores (US$ 96 million), which includes Rs 0.7 crore forescalation. To date only works to a value of Rs 9.6 crores, or less than 10%of the total, have been approved for construction. 1/

8. The following table summarizes available information concerningthe existing sewerage system and its utilization. The area considered is onlythe MCH area, since the very limited sewer extensions outside this area arelargely for the purpose of receiving industrial effluents.

1/ This program is ongoing and comprises: (i) laying duplicate "K & S" Main(Rs 5.6 crore), (ii) laying duplicate 'A' main south of the Musi River(Rs 0.6 crore), (iii) laying Khalasiguda main (Rs 0.3 crore), (iv) laying anextension of the "H' and 'L' mains up to the south interceptor sewer (Rs 0.4crore) and (v) rehabilitation of the existing sewage treatment plant (Rs 2.7crore)including an increase In its capacity from 53 to 114 Mld. Completionwas planned for 1989.

- 73 -

ANNEX 4Page 3 of 9

TA NORTH SOUTH

Total Area of MCH (Oa2 ) 169.3 124.2 45.1Sewered Area (k2) 105.2 73.6 31.6

Population in MCH area ('000) 2700 1850 850

Pop'n in sewered area ('000) 2100 1480 620

No. of sewer connections 180,000 115,000 65,000

Population served ('000) 1260 455 805@ 7 people per connection

Population served as percent 60% 54% 73%population in sewered area

This indicates that, given the capacity improvements (para 12(c)) to thecollection system to alleviate the overloading (para 5), it is possible toincrease considerably the utilization of the existing system. From the abovetable, even with the generous assumption of 7 people served per connection,there remain 840,000 people within the sewered area not connected to thesewerage system. A further 600,000 people are outside the sewered area butwithin MCH boundaries.

9. Part of this under-utilization is accounted for by the estimated60,000 to 70,000 instances of direct sanitary waste discharge to natural watercourses and open storm-water drains, of which about two-thirds, say 40,000 to45,000, are estimated to be within the sewered area. The total of suchdischarges represents the wastewater from some 300,000 to 400,000 people andcontributes in a major way to the evidence of pollution noted in para 5.

10. Another part of this under-utilization is accounted for by thelack in many households of any facility, such as a private latrine, to connectto the sewer. The occupants of such households must resort to open-airdefecation, in the streets or in vacant urban lands.

11. In some parts of the unsewered areas, sanitary waste disposal isthrough privately-constructed septic tanks or through communal septic tanks,conscructed by MCH and connected to the houses by a small local sewer system.In each case. septic tank effluent is discharged to natural water courses oropen surface-wa er drains. Sanitary waste disposal may also be through low-cost sanitation latrine facilities. However, in these unsewered areas also,there are many without household latrine facilities, who must therefore resortto open-air defecation.

12. The preceding has indicated the strategy for a definition of theproject components for sewerage and for sanitation (see Annex 5)

* 74 -

ANNEX 4Page 4 of 9

(a) A program to effect sewer connections where the present sanitarywaste discharge is to a drainage channel and where a sewer isavailable (Component 3);

(b) A program to provide pour-flush water-seal latrines for householdswithout such facilities. These will be connected to the sewerwhere one is available; otherwise, the twin-pit technology will bedeployed (Component 4 - more detail in Annex 5);

(c) A program to rehabilitate (where in poor condition) and strengthen(where of insufficient capacity) the exLating sewerage collectionsystem (Component 3);

(d) The provision of treatment for all sewage flows (Component 3).

13. Concerning (c) above, it is note4 chat some of the existing sewersare in poor condition, and in some cases this is the result of corrosion fromindustrial waste flows. Industrial wastes may need pre-treatment to avoid:Mi) the risk of sewer pipe corrosion, (ii) detrimental effects on themuaicipal treatment process and (iii) undesirable effects on acceptable landuse or effluent-receiving streams, according to whether the final disposal ofthe treated effluent is on land or to a stream.

14. Furthermore, the appropriate basis for charging industries forsewerage service in-volves considerations not applicahle to domestic wastes.High flow volumes may require larger investments for flow conveyance and bothinvestment and operating costs at pumping stations. Moreover, characteristicsof the wastes may require higher investment and/or operating costs atmunicipal treatment plants. This issue in Hyderabad has been complicated bythe fact that much of the larger industries are outside MCH boundaries andwere therefore outside MCH's jurisdiction. However, there has been a recentchange in the institutional responsibility for sewerage (Annex 1, para 30).Moreover, under its recently-approved constitutional legislation (Annex 1,para 31), HMWSSB will have the authority to regulate sewer-use.

15. GOAP and HMWSSB have indicated their intent, in collaboration withAP's Pollution Control Board, to execute studies on industrial wastes, on theneed for pre-treatment before discharge to municipal sewers, on theappropriate regulatory approach to sewer use, on the abatement of liquidindustrial pollution generally and on an assessment of a suitable basis forcalculating the sewer use revenue due from industries. The matter ofpollution control is of increasing national, state and popular concern at thistime.

Service Connections

16. The procedure for obtaining a new sewer connection has been torequire an application through a licensed plumber to MCH, together with a feeof Rs 10 and a sketch of the connection details and a deposit to cover thecost of road restoration. Upon approval, the plumber constructs the

- 75 -

ANNEX 4Page 5 of 9

connec'Aon at the expense of the applicant. The total cost of a connection isin the range Rs 400 to Rs 2000, depending mainly upon the length and the roadreinstatement costs. Under recent policy, a sewer connection is provided to ahouseholder's property line without charge in designated slum areas. However,elsewhere the procedure and the costs of arranging a sewer connection mayaccount for the large number of illicit wastewater connections to surfacewater drains (para 9). The project includes the transfer of 20,000 suchconnections to the sewers.

17. Sewer connections are typically of glazed stoneware (GSW) of 100mm or 150 mm diameter and are effected both by "wye. branches in the sewer andby connection to sewer manholes.

Branch Sewers

18. Branch sewers have been defined as those of lesser diameter than300 mm. The records of these sewers are incomplete, but their total lengthis estimated to be 1100 km. They are constructed of both GSW and RCC pipe.In recent years, rubber gasket RCC sewer pipe has been manufactured in India;this better controls the undesirable infiltration of groundwater into thesewerage system, and will be used in the project.

19. Manholes of various shapes and sizes are provided in the branchsewer system. There is no apparent relationship between the size, shape andspacing of manholes and the diameter of the sewer. Good standard designs formanholes and proper criteria for their location and spacing will be developedin the studies under the technical assistance included in the project.Manholes have been constructed of cement mortar bricks, manufactured at themunicipal workshop. The frame and cover of the manholes are of cast-iron orof pre-cast concrete and some are fitted with a locking arrangement. Cast-iron access steps are provided.

20. Detailed mapping of the existing branch sewers and a sewercondition assessment survey are included in Project Component 6 - TechnicalAssistance. From the information provided by the responses to a questionnairecirculated to the sewer maintenance staff, it has been estimated that about 13km of branch sewer are in need of replacement as a result of settlement,corrosion, or deficient structural condition, and a further 5 km are in needof replacement (or twinning) because of hydraulic overloading.

21. The project includes a total of 26 km of branch sewer. The 8 kmadditional to the replacement needs identified in para 20 is for localextensions within the existing sewered area, as required, to maximize theutilization of prior investments in the system, and for branch sewerstrengthening and/or replacement not yet identified by questionnaire processdescribed in para 20.

22. Although almost entirely a gravity sewerage system, it includes atpresent three small Dumping stations - Malakpet, Somajiguda and Puranapul.All these stations are circular in plan shape and a diametric wall separatesthe wet and dry wells. The pumps are electrically-driven vertical shaft

- 76 -

ANNEX 4Page 6 of 9

centrifugal pumps installed at the dry well floor for positive suctionconditions.

23. Under the project, the use of the existing pumping station atMalakpet will be discontinued: the flows will be diverted to a main sewerafter its strengthening. New stations will be constructed at Somajiguda andPuranapul with a capacity of about triple the capacity of the existingstations and equal to 83 and 280 liters/s respectively; the installed powerwill be about 40 and 90 hp respectively in the two stations.

Trunk Sewers

24. A north interceptor sewer (NIS) on the left bank of the Musi Riverreceives the flow from six tributary sewers, and a south interceptor sewer(SIS) on the right bank receives the flow from eight tributary sewers. TheSIS flows cross the Musi through the Chaderghat inverted syphon 1/ and jointhose from NIS; the joint flow continues through some 3.5 km of "outfall"sewer to the sewage treatment plant site at Amberpet. This "outfall" crossesthe drainage course carrying the overspill from Hussainsagar - a manmade lakein Hyderabad (para 5) - through a second inverted syphon at Lingampally 2/.There are three additional trunk sewers tributary to the outfall before thesyphon and three more after it. Finally, a duplicate "K & S" main is directlytributary to the treatment plant.

25. The trunk sewers are those linking the branch sewers to thetreatment plant site and have been defined as those of diameter 300 mm ormore, including the NIS, the SIS and the outfall. Their total length is 81 kmon the north side of the Musi, and 36 km on the south side, for a total of 117km, or about 10% of the length of the branch sewers. The NIS and SIS bothhave a maximum diameter of 1050 mm; the outfall is from 1425 mm to 1650 mmdiameter. Most trunk sewers are of RCC pipe, but the outfall is constructedin brick masonry.

26. The nomenclature used to describe trunk mains in Hyderabad isconfusing; the initial concept involved using the first letter of the name ofthe major area where the sewer started from; however, there are now five "Almains in Hyderabad.

27. The unsatisfactory condition of the existing sewers (paras 13 and20) is mostly concentrated in the branch sewers. However, there areexceptions, notably where the sewer is carrying industrial effluent. Thepreparation studies for this project have concluded sewer corrosion in the OK& S' main is attributable to industrial wastes. Information assembled in theproject preparation studies indicates that much industrial waste exceeds the

.1/ 2 No. 530 mm pipes and 1 No. 600 mm pipes: Capacity 1 m3/s.

2.! 5 No. 600 mm pipes: Capacity 2 m3/s. This is a different Lingampallyfrom that being the site of a major water reservoir.

- 77 -

ANNEX 4Page 7 of 9

limits set by IS 2490, "Tolerance for Industrial Wastes Discharged to aMunicipal Sewerff.

28. In general, however, the condition of the trunk *ewers is good,but the interceptors seem somewhat prone to silting; the theoretical full flowvelocities are in the range of 0.7 to 1.2 a/s. The lower end of this rangemay not be sufficient to convey the typically high grit content of sewage inIndia. The main problem, then, is one of hydraulic capacity.

29. The assessment of the trunk sewer capacity improvementrequirements, undertaken in the preparation of this project, has consideredthe relative merits of "twinning" of the existing sewers, which is the mainconcept in MCH's ongoing program (para 6), and the alternative of providingrelief sewers by alternative routes, and concluded in favor of the reliefalternative, where possible. The capacity of trunk sewer improvements takesaccount of prospective longer-term needs, including areal expansion of thesystem, but the areal scope under the project is limited to that of theexisting sewerage system.

30. The proposed project includes some 27.65 km of trunk sewers tostrengthen and/or relieve existing sewers, which are either hydraulicallyoverloaded presently, or which will be, given an increased utilization bythose in the sewered area and by some modest future expansion of this area.In summary, the works include strengthening both the NIS, the SIS and theoutfall sewers and extending the SIS easterly beyond the Chaderghat syphon toa new pumping station at Mosarambagh, which will pump across the river to theAmberpet treatment plant. It includes the strengthening of some of the sewerstributary to the SIS, and the provision of a major relief sewer, - the"Errgadda Main", extending north-westerly from the NIS and commencingimmediately west of the Lingampally syphon.

31. The trunk system improvements also include two major Rumpingstations additional to the small pumping stations noted in paras 22 and 23.The first is at Mosarambagh (para 30) to convey sewage from new SIS extensionto the Amberpet treatment plant site. It is planned for a nominal capacity of1500 liters/s and an installed power of 360 hp. The discharge forcemain willcross the Musi River.

32. The secon is the 'Amberpet I' sewage pumping station for pumpingthe inlet chamber of the Amberpet sewage treatment plant. Its nominalcapacity will be 6700 liters/s and the installed power about 1600 hp.

Sewage Treatment and Effluent Disoosal

33. The existing sewage treatment plant at Amberpet is not operational(para 3) but is being rehabilitated by MCH with increased capacity (para 7).The project preparation studies have determined that, given sewer systemstrengthening, increased sewer system utilization in the existing sewered areaand improved water supply, the treatment capacity available will still be

- 78 -

ANNEX 4Page 8 of 9

inadequate. The provision of additional treatment capacity is included in theproject.

34. The existing Rlant dates to the original sewerage system, whichwent into operation in 1931. It -was designed to provide primary treatment foran average flow of 53 Mld, or about one sixth of the design flows developed inproject preparation. The original plant comprised: (i) grit chambers andscreens, (ii) preliminary settling tanks, (iii) a subsequent and larger set ofsettling tanks, referred to locally as "septic tanks". A clamshell buckettravelling along the grit chambers removed grit and loaded it to rail-mounted hand-towed wagons. Settled sludge was hydraulically conveyed to a"sludge elevator", which lifted the sludge to hand-towed wagons. Both thegrit and sludge were disposed of by land fill.

35. From this plant there is a treated effluent discharge channelrunning parallel to the Musi River, and also parallel to a second clear waterchannel fed from an upstream weir across the Musi. Both channels flow to theNallacheru Tank, and the mixed flow is available for irrigation of a reservedarea of about 209 ha, where "Thowla' and "Paragrass" are grown for use ascattle fodder. However, because the plant is not now operational, untreatedraw sewage is being used for irrigation.

36. The civil works and piping of the existing plant are generally ingood condition, but equipment, such as the screens, grit elevator, sludgeelevator and the clear water pump set, used to pump water from the Musi forplant use, are all in disrepair, and the small laboratory needs new equipmentand an inventory of supplies.

37. The 'remodelling" of this plant, n3w in execution by MCH andplanned for completion in 1989, is based on De:ember 1981 studies by theNational Environmental Engineering Research Institute (NEERI). It expands theprimary treatment capacity of the existing plant from 53 Mld to 114 Mld, andcomprises screens, grit chambers, settling tanks and digesters, a gas holder,a sludge pump house and sludge drying beds. The overall layout anticipatesthe provision of full activated sludge treatment at a later stage.

38. The preparation studies for this project have considered thetreatment flow capacity requirements, (in addition to that of the remodelledexisting plant - para 37), the degree of treatment requirements, andalternative treatment methods and sites. On the basis of an economiccomparison of alternatives, the conclusion is in favor of additional treatmentcapacity by facultative aerated lagoons. Thus, included in the project is anadditional 180 Mld treatment capacity, first by aerobic then by facultativeaerated lagoons at the Amberpet site. A supplementary benefit of this methodof treatment is the relatively high level of pathogen reduction achieved,which is appropriate for effluent use for irrigation as is proposed tocontinue (see para 35). Effluent of better quality than 100 mgl biochemicaloxygen demand and 200 mgl suspended solids is expected.

39. The consultants assisting in the preparation of this projectrelied much on their earlier experience in developing proposals for the Bank-

79 -

AMUE 4Page 9 of 9

assisted sewage treatment plant for Abmedabad in Gujarat and certain relatedpilot studies conducted by NEERI.

40. The land area requirement for this plant of about 25 ha isavailable at the Amberpet site, where about 50 ha is owned by MCH. No peoplewill be displaced by the use of this land for sewage treatment.

- 80 -

ANNEX 5Page 1 of 3

INQIA

HYDERABAD WATEP SUPPLY AND SANITATION PROJECT

Sanitation - Past Program ExDerience and Proiect Component 4

Introducti

1. The purpose of this annex is to summarize the project preparationreview of prior low-cost sanitation program experience in Hyderabad. Thisreview, together with the overview of sanitation conditions and prospects inHyderabad (Annex 4), has led to the definition of Project Component 4 - Low-Cost Sanitation, and parts of Project Component 6 - rechnical Assistance. ItIs organized as follows: (i) Introduction, (ii) Prior Low-Cost SanitationExperience, and (iii) Low-Cost Sanitation in the Proposed Project.

2. In the late 1970s, in preparation for the UN-declaredInternational Drinking Water Supply and Sanitation Decade 1981-90 (IDWSSD), aconsiderable UNDP-funded, Bank-executed research effort explored alternativesto conventional water-borne sewerage for safe excreta disposal. This effortwas launched in recognition of the scale of the needs for improved sanitation,the high investment and annual costs for conventional water-borne sewerage,and the fact that conventional water-borne sewerage itself induces substantialwater demands, which further add to the total costs.

3. In India, the low-cost sanitation technology of choice, (on thebasis of benefit-cost principles), for both urban and rural application hasbeen the twin-pit, pour-flush, water-seal latrine. With vigorous promotionand financial support from GOI, there have been substantial gains in theacceptance and adoption of this technology, especially in urban areas. Bankurban and water supply-sanitation projects since 1981 have included a low-costsanitation component.

Prior Low-Cost Sanitation Experience

4. Prior low-cost sanitation program experiencc in Hyderabad has beeninstitutionally concentrated in the Urban Community Development Department(UCDD) of the Municipal Corporation of Hyderabad (MCH).

5. UCDD was created in 1967 to execute a pilot social welfare projectin Hyderabad, which received financing support from GOI, as well as from GOAPand MCH. In 1976, a "HabitatR scheme of self-help slum housing was launchedwith the parallel objectives of environmental improvement and socio-economicdevelopment, which realized UNICEF support in 1977.

6. Through more than 20 years of experience, UCDD has gained asubstantial reputation for its work. Moreover, through a "people-oriented"community participation approach, UCDD has gained the confidence of poorergroups and slum dwellers, who may be otherwise apprehensive of those holdingpublic office.

- 81 -

ANNEX 5Page 2 of 3

7. More recently, in the period 1983/84 to 1987/88, UCDD has beenexecuting a project which has received support from ODA-UK. The project is abroadly-based slum improvement project, which includes a low-cost sanitationcomponent. The original target for this phase of the project was theconstruction of 20,000 latrines. These were intended to be mainly individuallatrines for individual households but the experience has included some public(multi-user) latrines (paras 9 and 10). At November 1987, 8000 latrines hadbeen completed and a further 4000 were under constroction. The physicalimplementation was partly by the Sulabh Internationil organization, which isan NGO based in Patna, Bihar, with very considerable sanitation programimplementation experience in many states of India.

8. Included in the 20,000 latrines in the above project is theconversion of some of what are locally-known as 'basket-type' latrines topour-flush, water-seal latrines. The wastes in 'basket-type' latrines areremoved manually by 'scavengers' and this latrine type is most unhygienic forthe user, for the scavenger and for the general public. It is estimated thereremain about 16,000 "basket-type" latrines in MCH.

9. The financing arrangements for household latrines under the aboveproject required a householder contribution of 20% (about Rs 320) of thelatrine cost of about Rs 1600 per latrine; the remaining costs were met as apublic grant. The experience with public (multi-user) latrines in slum areasunder this project was poor. Problems included vandalism and difficulties ofmaintaining hygienic conditions; no more are being constructed in slum areas.

10. However, in other areas, such as near shopping areas and busstops, the experience with public latrines, often linked with bathingfacilities, and charging a small user fee, which are maintained by SulabhInternational, has been good. The user fees meet Sulabh's charges for theircleaning and maintenance services, but not the investment costs. Such publicfacilities provide a very beneficial and affordable service to much of thepublic in such areas as shopping areas and near bus stops. This element ofthe public is usually only temporarily ir such an area, and comprises a cross-section of the population rather than a concentration of the poorer groups.

11. Despite this positive experience with some public latri.nes, thisconcept and its concomitant user fee does not represent a solution to theexcreta disposal problem of the poor. The user fee is typically a modestRs 0.10. However, assuming three uses per day for each member of a householdof six people, the monthly cost becomes more than ten percent of tne Rs 500which is estimated to be more than the monthly household income of about fiftypercent of the slum dwellers. Further, the investment costs per capita areusually higher than for individual household latrines, which are the provensolution for slum dwellers, albeit with a substantial grant element in theprogram for the sake of affordability.

12. A further phase of the above project is anticipated including,inter alia, a further 20,000 low-cost househeld sanitation units.

- 82 -

ANNEX 5Page 3 of 3

Low-Cost Sanitation in the ProRosed Proiect

13. Within MCH, there are about 500 designated slums with a populationof about 100,000 households, or more than half a million people, which isnearly 20% of the total population of MCH. Apart from the ongoing programdescribed in para 8, while it is not necessarily true that those in designatedslum areas are without household latrines or have 'basket-type" latrines,informed local opinion is that this is largely the case. Moreover, it isbelieved that there are many who are outside designated slum areas, but whoare also without household latrines. Thus, assuming the slum population isindicative of the households without latrines or having "basket-type"latrines, there is an indicated need for sowe 60,000 latrines additional tothe 40,000 provided or to be provided under ongoing and impending programs.

14. Project Component 4 includes 20,000 pour-flush water-seal (orequivalent) individual household latrines. These are expected to be acombination of 'basket-type" latrine conversions and new latrines; the costsare similar. The latrines under the project will be connected to a sanitarysewer, if available, and twin-pit disposal technology will be used otherwise;again, the costs of these two alternatives are similar.

15. Since a financing pattern has been established in the earlierprogram (para 9), the same arrangements will be adopted under this project.

16. The low-cost sanitation program included in the project will bemanaged by HMWSSB, who will: (i) review earlier programs in more detail,(ii) develop details of the physical design of latrines to suit varyingcircumstances, (iii) develop a promotion program, (iv) develop aids toimplementation and (v) develop and implement a monitoring and evaluationsystem.

- 83 -

ANNEX 6Page 1 of 6

INDIA

HYDERABAD WATER SUPPLY AND SANITATIgN PROJECT

I. DAr SafetX at Singur

1. The Singur Dam on the Manjira River is located some 60 km to thewest of Hyderabad. Construction of this dam is approaching completion. Thepurpose includes irrigation, electric power generation and drinking watersupply for the Manjira Phase III Stages 1 and 2 schemes, which will supplementthe supply for Metropolitan Hyderabad. The Singur Dam has been planned,designed and constructed by the Irrigation Department (ID) of the Governmentof Andhra Pradesh (GOAP), and financed by GOAP.

2. In response to a request from the Bank, GOAP appointed a DamReview Panel (DRP) 1/ by Government Order No 459 MA dated October 12, 1988,with terms of reference as suggested by the Bank, . These terms of referenceare given in Section III of this Annex 6. In addition to dam safety, theseterms of reference also provide for the DRP's assessment of the reliability ofthe water supply yield (see Annex 12).

3. To July, 1989, the DRP had held four meetings in the periods: (1)November 16-17, 1989; (2) December 12-16, 1988; (3) January 16-19, 1989; and(4) May 30 - June 3, 1989. Minutes of these meetings have been provided tothe Bank.

4. On Dam Safety, the DRP has made a large number of requests forinvestigations, studies and physical measures related to a determination of,or assurance of the safety of the Dam. A summary of the recommendations ofthe DRP from their first through fourth meeting minutes is given on Section IIof this Annex 6. Subject to the implementation of these measures, and thosearising from the findings of the investigations and studies, the DRP is of theopinion that the Dam will be safe.

5. GOAP will finance the costs of implementing the physical worksrecommended by the DRP. Pending the completion of the investigations andstudies (para 4), the costs cannot be reliably estimated. However, it isbelieved they will not exceed Rs 120 million (US$7.5 million).

6. The project costs also include the estimated fees and expenses ofthe DRP in the Technical Assistance (Component 6) of the project.

1/ This panel comprises seven Indian nationals whose appointment has beenagreed with the Bank. Their names and specialties: (i) Dr. Y. K.Murthy, Chairman; Mr. Pritim Singh, Dam Design; Mr. N. K. Sharma,Hydololgy; Mr. R. Ramaswamy, Dam Construction; Mr. V. A. Prakash, DamConstruction; Dr Iqbal Ali. Foundation Engineering, Concrete and MasonryTechnology, Stress Analysis and Dam Instrumentation; and Mr. R. V.Chalapathi Rao, Geology.

- 84 -

ANNEX 6Page 2 of 6

II. Summary of DRP Recoaendations of Second Meeting December 12-16, 1988

iA ~ie PM-: S TiD S em TD

1ION IV: PUi3TW4 IMTIINTPT 1 2 12 Extenaon et! dyke downstream of Block No S roqui roe to bo prebed to seom "hater further remdial *ree aro

reIr d.Or 2 2 12 r"rP ld*X11dPA" On **&40iO tA0tSt C*rl_*d OUte IN 001100M re" ^1to _oB m "**la.FI 3 2 is 11l S M. W .. brtl t.H : one in onh"vot: a" i1w- rie e: loo gmai1a ows: eary

emit aster lees teeta'.no ee tPr 4 2 15 Waote see tat to be done In the curtain grutgla hol" yiet to b greud to deterel prm eilPT * 2 15 in on" of excutive gromt ewnmetien. _eeendary wcrtein greet hol" to be drilled and greeted.PT I 2 1S One tet hole to be drilled in each block free tho gallery t gurpy eut wetor lees tests ro curtain efficay.PT 7 2 17 Prepare note : erth da removed for power de black 1 toe proportin f f atriels used for fill.

#ITION V HfVOROLO0ICAAL STlDIO - M 0IR OTATION - DWATION!ho-; Aa & § *" a v

WA * 2 2 1 C6 rtar uwsl utillzatien in ohaerelhtra (uaed 27.1 T"C ve 34.75 poe Tribunal) and K(rrntaka (17.4 TlZ vw 17.0Triual).

VA 10 2 21 Make adjustments to motly brook up for upetroae allocations.WA 11 2 21 Conoider we of 1924/40 to 19141/7 diecharge date.WA 12 2 22 prepare comprehensive moe for next meting.

C Soi so r inPff 13 2 2J 5 en .i] -.0' iPW 14 2 2S 5ii) Confiretien of atorm selection and trmnepoeition by D) and ISltPe Is 2 2S (iii) Confirmetion throuh DM and 11IT that rainfall distributieon is baed on S0 at Aurangaebd.r If 2 2t Revise PW of e44,000 euerca after clarifyinabove.

PW 17 2 2 Revise flood routing studies :(Reoervoir et per IS Code NOT Spillway Crest as uood).Pt 1S 2 24 Carry our flood routing studlie considering 100 years siltation.

RD 1 2 24 n i0.r:Cstien oil ef .aOL (especially re liited epillway capacity et Niameger).RO 20 2 24 Work out esergency operation schedul: Indicate praesnt/proepsctive flood for eo-tin, arrangements.RO 21 2 24 Carry out downotream flood hazard evaluation study (i) Moximum spillasy diechlrs; ( i) Au_ied Dos break.

w i n tt i en Stu j SE 22 2 25 No o nm eSE 20 2 25 (iv Check ai?l leval of sluice barrel: considering 100 year's siltation.SE 24 2 25 (iN Con-ier effect of spillway discharge on siltation near sluices : consider lt4yroulic Model by APRL

VI. DESIIN ASPiSDA 2S 2 20 Prepare see : paresetare asumd for chocking dan stability confirmtory field elb tste t stroese and esfety

fetors.DA 26 2 90 Recheck s*ie.ic coefficient with Seiseic Standing Coaittee of CYC.DA 27 2 31 Prepare memo : quality control tste during construction of rtr da : properties of hearting, casing aoil- and

filter _trriels.DA 26 2 32 Preare aeso summry of teat result. of foundation and borrow area _tarials.DA 29 2 32 lab coneolidation test. eo black cotton soils calculation of sand drain specing.DA 30 2 32 Install surface settl_mrt point. : obearve regularly.DA S1 2 32 Install Casgrande type porus tube piezosetar- and slope indicators.DA 32 2 00 Monitor **epage in toe drains : Install V-Notches at suitable intervals.DA 33 2 3S Prepare seeo re freeboardOA 34 2 3S gi Conai4er two or three trial fetches.OA S5 2 S3 (i Consier wind velocity dote in consultation with DODA 04 2 33 (ii Provide details of upstream slope protection for s ing rougn efficient.DA 37 2 33 (iv Provide detailed drawing of proposed parapet wall consider future ebanbment/foundltion ssttlew.nt.?A SS 2 04 Transition Filters Provide all avilable date

DA 39 2 35 Seisic De.ign Propare detailed note on factor of * f-ty sportiesl after checking *eiiec coefficient with CC.DA 40 2 37 Spilway 3uekt Hava examined on a priority basis by an Engineering Geologist dee cour i.Pact on stabilityTDA 41 2 07 Meanwnile construct an RC pad anchored in hard rock and extending for 10 a donatreas of

bucket.DA 42 2 37 Monitor debrie accumltion after each spillway discharge sasmon carry out remedial measures.

VII UALXTY CONTROL ANO INFTRIP4TATIONQC 43 2 39 Prepare mo quantitias of earthwork placed frequency of seapling inatence" of strengths lees than

specifiedi.QC 44 2 09 Extract (1-left flank, 1-right flank) undisturbed eeples from earth dae: teat for density and sheer strength:

compare basia for desin.QC 40 2 40 Conduct in-situ p:rmesbility tosta in meonry before and after grouting.QC 46 2 41 Conduct statistical analysis of morter strengthl : few random period. of 100 test values.QC 47 2 41 Prepare stnte_mnt rquentity of mortar used : frequency of sampling : instences of strengths lee. than specifie.

IN 48 2 42 rivThfeD Perfirmnee MonitoringIN 49 2 42 gi) Peizosater for phrestic line monitoring (ag simple Ceeprande type).IN 50 2 42 (ii) A series of standpipso i ndiataly below the roci toe at 00 a intervals for mnitoring downstream

groundwater levels.IN S1 2 42 (iii) onumnt in the earth dam for sonitofing surface settlements.IN S2 2 42 (iv5 Slope indicators for mnitering internal sovement. in the dam.IN 53 2 42 (v) Suitaile devies (et V-Notch) : Msure discharge from formed drain and foundation drainage hole. in

_sonry dam and from rock toe in eath dam.IN 54 2 42 (vi) Suitable devices for onitoring uplift preaur-e under the *eonry dam.

VIII. LiANDL SLtVEY - EVOIR AREA - WATWTIGTNSS OF TME RESVOIRLS0 50 2 44Provide for Meat "eeting LSi 56 2 44 i5) eologiel p otf *ub_ergnce area (1:26.000 OR 1:0,000 bringing out, Karstificetion).LS 57 2 44 ii) Aerial photo interpreted o of the reervoir area.LS 5 2 44 (ii Slope Claesification p of the submrnce area.LS 59 2 44 (iv) Mop of Land-Use and Terrain Classification of submersgece area.

_ 85 -

ANNEX 6Page 3 of 6

11. Sumary of DRP Recoimndatione of Third Meeting January 16-19, 1989

;9 M saw c _ TIDIF a f i ID SI 101 1n1 ao 6 car., out foB le int aadgier a reprt e Panel:Pr II 3 to trial pi a ce si C 40 40 ad 58 upotros sad downstream: conduct In-*ltS permebi liIt Mat.Orr u a 7 (13 GSa=.11t trial plea at 0. 18& 18 ad 318 s the upetrwwe (where ne Impend n) and an thed.e,e.

wadugt in-eitu Ierae It, toote.PT u1 8 7 (1 I Lo toeleolly all 1 1 l ete for sel cloolflcXolen an4 eanngalne proeperles.PT 84 a 7 (tv Frepe 1an ahowing resas : o *nse*vatl_n depth w ohe If lash tenliel *I petrees he ben

punetweed.PT i J 7 (W) beteroine If wetraam eo pl*ehing key ha, punctured black e_ttem mal.Pr as 3 7 CI) stai eo dug sell lovelo d1w1etreer at C 73 an Ch U In in ville I ik re ir levels.PT 8? II Mat Jb oftl f eting 2 re Masonry Dos greting and arouting. flco$ evalertie.nPT a 8 J P h re dtha1 whe4 greUting GSmpi abe. hllery she rd be d 1eWatred forPT *t a (1) Obeervatiene of see e meesrenbe frea *h drainage hole fer aesee-_t of acrtain greutig

PT 70 8 * rlner;IQ Ptereinon ofd ea redWial _sar_ rer irod.

LS 71 8 6 ' r eirtrs :"_la s'TmI' er n p with O;l egel Survey of IlAIa (111).II HDOLOICAL STUDS IVORaTIONS NO S1D4TATION

WA 72 S 14 Feet areasz in to werk out reevair operating tablee coneidaring carry-ever and giving everriding proerityto w*ter supply.

WA 7i 5 14 nm tee re upstrea utiliatsion: Mcharmehbtrs rePr" SATNC Fut 22.0TIC. TOT 27.1TiC. Karnateke Free 2.ST4C 1ute. 2T1fC. TOT 17.4OTIC

WA 74 8 14 Tao caouto of re-yenrtion froe the usetresa pro;jct, in Maharashtra and Karnotews.

Pf 78 5 14 acki re for computing soiliHry diecharge curves.

FO 76 8 186Is Operating Schedule for noral and emergency operations shuld be morked out andprovidd to CAP

NO 77 8 10 AdJitions lly r*Oaseem on the arrangement for operation of the ert and the standby srrang.eent in the event ofro t)failure -y als e psrsnted,

Rti 78i 8 10 Further, flood haard evaluation otudies are n.ceeIrE Ralsvant USI Manual providld by iP to ID).III. OPSIN SIETl

DA 79 3 17 ThrloT ing itema repeated:DA 80 8 17 i) ote presented to U oT recheck Seiemic Coefficient with Seismic Standing Comittee of lC.

A 81 S 17 (i Prere meO on te relevant itee, of juids;io in the form of note for guidance of constructionorgoeni*tion for iAP Prviea.

DA ii2 17 (ii) Memo in (ii): suimry bet reulits foundation and borrow: lob tests cearried out, whether per IStendirde, design para"ter testing procedures

Ds - 8 17 - ccounting for pore presurem in lab triavial tests, method of stability analysis end esaplecomputation.

Ds S4 a 17 (iv A ResuIts of lab consolidation tste carried out and calculations rearding spacing of esnd drains.Ds 8s a 17 (v? Froeboerd: 2 to 3 trial fetche; wind speed date from DO; eurface roughnesa coeff. *or upotream slope

pret n details of prop. parapet wall.Os " a 1S (vi) Transitien filters: prouce neat meting all available date including grading analysis of dar

construction mterial with control teat date.Ds 67 8 1i mem on teatin, procedures, design parameters _Uthod of anslyeie needs to be oupplamentei by confirmtory testeoOs as 8 19 (i) Hearting Soils: Coneol Undrained triauial ahear taste at 100l esturation on undisturibed s*aple AN

reolded *seg lee from borrow are surce.Os 89 8 19 (li) Casing Soils: Conol Undrained trismial shear tet at 100*e sturation on undisturbed semples AN

remolded esaples from borroe area source.Os 90 a 19 (iii) Foundation Material: Coneol Undrainedl trios;al sheer tests at lOOi esturation on undist. eseplee taken

from outaide don base for soils in foundation.Os 91 8 20 Send Drains: Determine if pe;iometars (vibrating-wira type) can be provided to determine any locked up pore

pra" "e reaining.DA 92 8 20 Send Drain: Carry out lab consoHlidtion taste with _e*suresants of perisebility : calculate rate of

consolidation ard diseipation of pore proeauree.DO 93 3 20 FreIoerd: - conei,er roughing of the hani-placed rip-rap by addition of wave breakers in places where rip-rap

amegd.0A 94 8 20 Preeboerd: - Prepre tentative design or deflector-typ* parapet wall.Ds 98 8 21 Transition Filter:: devise simple lab te in consult'n APERL. to determine if and to what extant fines my

igirste from, harting soils and choke filter.

DA 9 3 22 sts of tt en _seonry density : if not done APSE.. to recomend value.DA 97 3 23 Neulte of serse end Foeg calculation will bes onained agin by A after sore exact determination of the

density, sheor and sliding fectore and of esi eic coeff.DA 98 3 28 Provide reults of stability anal yei on uptree nd den-treew reteining-cus-trainine walls on L and e (which

acco* the water-supply conduit) abutmntseisr Su- vi an n ri-nCion SluiceI

Os 9 28 rrovide air ventdwtrneohe svc gte for the water-suppl naeDA es J2 rv4i et tee-roo of th: "rviesct on t IV-*o- wY intake.DA lO0 8 2t Check stability of upotream -pill ay training wal 1wd te nsile srs in emty condition,OA 101 J 28 Fill water-supply intake Jack-well froe re gate irotDA 102 3 27 knk Irrigation Sluice:DA 10 8 27 pi) Check required air vent size downetres aof servia toe.DA 104 3 27 (ii) Check suitebility of foundation for the Is a 10eIICC duct poesing through dion.sA 106 8 27 L8snk Irritien Sluice:

DA 106 8 27 i , e) n and provide air vent donstreas of service gate.DA 107 J 27n (f) Checsuitability of foundation for the 4No 2.1, a 2.0, RCC vents comprising the sluice baorrel.Os 10 8 26 (li i) Check unevennes on upstrsam slope of serth die near sluice.

IV SPILLWAY AND i1Y DISSIPATIOiNDA 109 8 29 With APSA. dletarain e;illmay pretsure distribution (especially nsegtive presure) with parti.l gate opeartion

and rearvoir r t FNLDA 110 8 81 With APSL sxamine efficiency of roller bucket energy dissipation and proepr mosw for oW.DA Ill J 81 Par Mtg 2 evalute impect of dep ecour occurring dmnstrere e epillway bucketOA 112 a 81 menwhile conetruct an RC pd anchored in hard rock end extending for 15 * domnstrena of bucket.

V. ASNOD IR OWEPLErION bINtANM08ETR 1 a a Preparge seem for neat meeting on ergoncy depletion of the resrvoir taking account of the inflows during such

depletion.VI. .LALITY CONTROL A0O I1STRUJ4ATION

QC 114 8 34 PerF ng 2 : with APL tke ani teat undisturbed hesrting end oeoing soil m_les for check on easumptions smde*nd otability analysis.

'C 11 a 8O Urgntly reuirod, as agreed: peix ters : series of standpipes : surface settlesnt aonitoring inotrumentseloe indicators roeh too drain V-notches : -

ReC 116 a S - deIces for oeonry dam uplift rseaure sonitoring.V' SSTc- DSPWTICM HIGHLIGHTS

55 117 87 VAcertar. caus of leakag from f* ese o- f rdetining-cue-training wil at jur-tioe of earth and *esonry damSS 118 8 V, Twice remedil a eI sro e wel Il BE NEXT W-WAION se*as.JS 11U 8 37 Repir upstream and downstream rip-roa where da=mage by aXineater floes E4 NWT MONSOCN.SI 190 A 3J Clean ewnerrt lump on mpillway glaci to aoid cavitation.St 121 2 Jf Cleen epi l way bucket (remoe temporary construction acess roed).01 122 J 8 DP reiterste : construct an RC pad anchored in hard rock and extending for 1 a dmnatrese of bucket.01 12 S 08 W : Site for orgency epillwey identified (need to be determined by PF studies).

- S6 -

ANNEX 6Page 4 of 6

II. Sumiary of DRP Recomendations of Fourth Meeting May 30-June 3, 1989

-~~I Dl81 1ln -FT U4 4 0 Conduct ln-litul p*.eawblll te"at in teat pit as dmal ed zxiat hmad in ae reservoir.FT UNt 4 0 1 "_"" 11 8%X1 w |-e_1_ig rA rws_PT 185 4 9 La gealgleall all Ita. a m et aml lamfeta . nie mpeaprtiew.nT IN 4 t0 Cdue tel IrsInif l* l lItI mp d wl l kgt llol ln t ret "too dae (re recharge fr

eaoecl r).tII fVDSCAULCAL SIWIM

VA 12 4 12 n uet_ alt revlaaid ln.flae and ZN carey ever storag thee deifAkla mate. auly reliability I' M.

U 1HO 4 1U W9

UIM ma_mauy re lo Secti... v.28 189 4 18PIed' ae tuI..g% be .. pedited.'i n 4 Mi said W"i Alee * Z rzi

28 180 4 or 18 IwoPR ori?ll 11 1Mg Paarvoel r Opioting G.ldel lies to be prepared.181 4 18 b.ege aepaatlag guldetles anald ala ae preared.

Ill. 701B12 A3rSUS III 4 14 S.imleltp pr.adAre uaed in deal Is, aeaptble to tha _W.

CA 18 4 14 Nei arate reaionedatian aeerninrlg racoke of oatbilIits after carryilng out conf'i rtory teate on undiaturbadgaleof haa..ti, C"inemaend -

DA 184 4 14 - fedien e la me reasulded *alea of borrow _tarial.DA 184 4 14 .padlta thea intallatioat tmo agred one or two pies te aen thee utraa wide.DA 18i 4 14 Carry out lob coneatidmtiee tt end calculationa to maoaa the rote of coneolidatian med diasipation of pore

DA 1N 4 1t k dequate arrangaat and pracautiona to prevent overtopping using freeboar4 of 6.4a we Slia us" earlierfter A and flawd routine

DA 18 4 1 - cooplated.DA IU 4 1U Action to be taken an two Brd Nating raco 4aamadtiona:DA 18 4 15 li) addition of wave-breaek-a in plaoea whore the rip-rap hoe beh damaged;DA 140 4 15 (i work out tentativa dsigna for a 4dflector-type of parapet well.DA 141 4 14 Transition Filt re rC i trerta simple lab t_te to be carried out to cteck mhe.hear and to what actant any

fina frem te heertin aoil - migrate or tend to -DA 142 4 16 - choke thea filter aeterial.DA 14i 4 1g Stability Anmlyala : recheck sliding/eheae FoS using phei *n 'c' factor. adted for othe-r AP demo in om*;iar

geologic forintiona.DA 144 4 16 SpilIIey Energy Dieaipetion: APE.L mo requested reviewed : coaputation sheould oleo be hmada pr USB ManualDA 145 4 1S Awaril of contract for and construction of ISg side aron ahould a ap*ditWd -Jnere innitad.)DA 146 4 19 Water-aupply inetak air went ID propor_ operation of aeargancy gate to avoi naed guidel inea and operating

criteria need to raflect thie.DA 147 4 19 Riet bank irrigtion aluica ir watt SCCA 148 4 19 Left aink irrigation aluic 0R reiterate that ir vant of approprite siz ia roquired.

V. QUALM CWt4RDL AN IND JU14WTATISNQC 149 4 20 Reiterates racoatdation concerning recheck of stability after carrying out confireatory tet- on indiaturbed

amp les af heartin caaiag nd _qC 15 4 20 - foundation moi a nd *eoum d pca4 of her.. mteialIN 151 4 21 Instrumentation fOr note plane prepared by ID but reiteratee and note ure ncy - capcially (i) and (iii)

IN 152 4 20 gi) OtITICAL : Piasoactere for monitoring the phreatic line in the 6erth one;IN 1Si 4 20 (ii) Seri of atandpipes helow the rock too. all along the carth d, at suitable intervals for monitoring

the grund water levels downstream;IN 154 4 21 (iii) Devicc for monitoring thee urface sttlet nt in the earth dam;IN I 4 21 (iv SloP indictora fOr mnitorin intrnal t I nt on the earth dam;IN 15b 4 21 (v 'V'-Notchea for "*eureents of iiicheres fror the rock toe in the e arth dam;IN 157 4 21 (vi) Devices for monitoring umlift preauras under the _ry de.

V PRlAINAA If AS-AM MiD URC 156 4 22 Drr notes dam in quite *ofe oubj-ct to the folloaing meauree which ars eaaetial and ehould bh carriad out o" an

urtent end triority basis:

LRC 159 4 23 inamy ontruct'ion of reli*f wells at donatrsec too of L and M bank earth dame initial spacing 50C reduceif hid pore ,ater preaurea persist.

lAO 160 4 28 (ii) IntelltTon of Caagrande-typ, peiaoaetere along the downatreas elope of the flanking carth down and atthe toe of the earth dea between relief wello;

LW. 161 4 2S (iii) If pore preaaurea and relief wall discharge found *xce ive during filling then toe loading accordingto pranioualy developwi plan (including -

UIO 162 4 2 - horroe aources) on euitable designed inverte filter ied should be underteken;UO0 IU 4 28 (iv d Earte m portion nser irrigation aluic_ aneod special attention;ULO 164 4 2t (v Cohlete repair work (in prorae) orn mnm pitching on upstream and donotream alopaa of the oarth idm;UP* 1&t 4 28 (vi Instel I V'-Notches for toe drain di chergoe aewau-nte on L and A earth does;

UC U66 4 24 lt curtein grouting in reaining reaches : complete drainage hole imedistely after cu,tein*rout U a.

URO 167 4 24 (ii) Etend dril ing and grouting of monry eecially in the key wal I t junction with both earth dame;U10 I6t 4 24 (1ii) .unite with wire m_*h the upatream ourfac. of the upstream amaary trcininj wallit on both flanks

(tendere lled).LAO 169 4 4 (iv; Mke aran to for aeasurement of seepwge diecherge in the foundation gal leryLAO 170 4 24 (v Construct aC apron lSo wide domntroem of the roller bukeot ftandeeo inwvted);UO 171 4 24 iArrane1a1otnti-b' poe for eate operatian : tet for rel iabi I ity

Reeqrv ,~Ftll,aa flInto maInjt to fiI to El g20 durins June-S_et. Ile een on )LIO 172 4 2 Conduct folooing etudi_a prior to rearvoir filling : ome__ further precautionary measur- on completion

d eida eeleted cervtoir filling levelUO 173 4 28 (C) AW etudie, at lacat to prelicinary leval using date from IM and available unit hydroGraphLO 174 4 25 (Ii Flood routing studies guaing various inflow diechereeo from historic floods up to estited PMF) Ume

we bmai- for deciding roarvoie filling Iev1;ULA 175 4 25 (Ill) Study on up t'rom flood foracasting stetions in coneultetion with CWC to enable pre-dopetion of the

r ervol when nece_m_ry.

-87 -

ANNE 6Page 5 of 6

XIX. DMN RVXIW PANEL (DRPI - TUM 0 RIEIMNCE ;1

1. The Singur Dam on the anjure River is located some 60 km to the wear of Ryderabad.Construction of this d- is approaching completion. The purpose includes irrigation, electric powergeneration and drinking water supply for the Manjira Phase III Stages 1 and 2 schemes, which will supplementthe supply for hetropolLtan Hyderabad. The Singur Da_ has been planned, deslgned and constructed by theIrrigatlon Departm_nt (ID) of the Covernment of Andhra Pradesh (0OAP).

2. The Government of Andhra Pradesh (GOAP) will establish a Dem Review Panel (DRP) andmaintain it until all fcilties are placed In finaL operation.

3. The DIP will have the responsibility to; (C) exanmi. the adequacy of investigations,desLgn, quallty control and constructLon of the dam and appurtenant works and propose any modificationsrequired to ensure the safety and integrity of the structures, and (Li) evaluate the reliability of theavailabillty of the planned 270 old for drLnking water supply for Hyderabad and (iiL) report Its findings inwriting. The DRP will not be relied upon by ID-GOA? to serve as technical advLsor for optimizing the designof the project or its components.

4. The DRP will identify existing and potential problems and make recommendations as toremedial actLons to ID-GOAP and/or request ID-GOAP to make avallable additLonal date or to carry out, orcause to be carrLed out, further studies to resolve questions.

5. The DRP will be headed by a chairman, who has the responsibillty for coordinating DRPactivitles and ensurLng the objectivity and technical qualilty of its review and recommendatLons.

6. ID-GOAP will be represented by two individuals to be nominated by GOAP, vho will attend DRPmeetings, as approprlate, arrange for representatlon of ID-GOAP unLts and consultants to participate Ln DRPmeetings, provide data, Information, analysis, studies, documents, plans and specifications, etc.,pertaining to the project, and secure such other materials, clarificat0ons and relevant data as requested byttu DRP, but who are not members .f the DRP. ID-GOAP wll arrange tbh necessary loglstical andadminlstrative support to allow preper functioning of the DRP.

17. The Central Water CommLsslon (CWC) shall attend DRP meetings in strLct accordance with Itsrole as the central technical authority for monitoring the Implementation of the review panel'srecommendatLons to the extent ti-at the DRP recommendatLons pertain to dam safety. The only exception willbe those instances when CWC is called upon to attend in its unrelated capacity as a consultant to ID-GOAP.

8. The DRP shall conslst of a minimum of four permanent members, all hignly regarded expertswith at least twenty-five years of active experience in the type of facilitles comprLsing the project, atleast ten of which shall have been In a position of final responsibLlity for the technical adequacy of worksof the nature and magnltude comparable to the SLngur Dsm Project. The fields of expertLse tn which thepermanent members jointly shall possess high internation,l reputation shall include;

(a) hydrology, including the assessment of spillway design floods;

(b) design of large dams and spillways;

(c) design of hydropower plants;

(d) design of large gxcavation and rock reinforcement;

(e) construction management and methods for large dams, power plants and appurtenant works; and

(f) geotechnical engLneerlng.

All members shall be acceptable to the Bank. The crlteria for membershLp cannot be compromLsed. AnyexpertLse of the qualificatLons stated which cannot be fully met by nationals will be provlded by securingthe additional necessary members from outside India. No member may have been previously in the full-timeemploy of GOAP.

9. ID-GOAP will maintaLn a list of and arrangements with consultants and specialists havingqualification standards equal to the DRP, Identlfied by ard acceptable to the DRP and the Bank, who may becalled upon on very short notice by the DRP to partLcipate in its work. The fields of expertise to beprovided by selected consultants and speclilists shall include, but not be limlted to:

(a) design, fabrication and erection of gates, valves and hoists;

(b) design and installation of instrumentation and control equipment for dams, plants and largerock cuts;

I/ ott This is the actual text of the Dam Review Panel Terms of Reference provided by the Bank tothe Governments of India and Andhra Pradesh under cover of the Bank's letter of December30, 1987.

- 88 -

ANNEX6Page 6 of 6

() des ign, fabricatLon and erection of hydropowe r machlnery end .- purtenant equipment;

(d) conerete design and pleo_mnta

(0) Materials tstig.a

(f) operetion ead m_internane of d-m, hydro power plants and related works and

($) eSnAnering gology.

10. The list of eonsultants ond speciallsts may be modified, added to or deleted at the initiLatve ofthe DRl in collaboratton with 1D0-'OA followin agreement with the eank.

11. The DRP shall met at times and frequenees that the DRP judges necessary to carry out itsresponibiLitiLs or at the request of GOl. The DRP shall met with suffLeLunt frequency to iLsue its firstreport (i) on the safety of the dam nd (i) on lts evaluation of the rellability of the availability of theplanned wator supply for Hyderabad. before June 30, 196f, The D0P shall be free to engage consultants andexperts from the established List (pars 9) to assist lt in the conduct of Lts work.

12. Meotings shall, Ln general, be held in the flold or Ln the headquarters of ID-GOAP. as judged bestby the Chairman, DRP with all permanent mmbers in attendance. Inspections by individuzL -bers shall bediscouraged exeept under special cirCUmstances. In such exceptional cases, the individual shAll submit areport to the other DRP sombersa however, final recommendations on any issues shall be made jointly by theDRP at a meting.

13. Meetings shall be scheduled ln advance to the extent possible to facilltate logistics and thepartieipation of Bank observers, if desired. Exceptlons to advance scheduling shall be meetLngs judged bythe Chairman or Sovernment entity to be necessary on short notice due to special ecrcumstances.

14. The DRP shall submit to GOAP a minim of three copLes of the minutes of its meetinas inmediacelyafter the meeting is concluded. WLthin two weeks thereafter, the DRP shall submit to GOAP three copLes ofIts report of finding-s and recommendations and of the actions taken by GOAP on prior DRP recommendations. Acopy of each document shall be forwarded by ID-GOAP to th- Rank and CWC imediately upon Lts recelpt.

15. Whenever the DRP recoamends changes or actions, the ID-GOAP will respond vithix two weeks to theChairman, DRP and CWC with a copy to the Bank, descrLbing its decisions and actions taken. CWC will monitorexecution of the actions in strict accordance with its role concerning the safety of dams.

16. GOAP vill exercise final decision on all matters, as provided within the establLshedresponsibilLties rospectively of state and central governments.

17. ID-GOAP vill estabiLsh the DRP not later than February 15, 1988, and convene Lts first meetingbefore March 1, 1988.

18. ID-GOAP will malsk all arrangemnts for the list of consultants and specLalLsts to be available tothe DRP no later than February 15, 1988.

- 89 -

INDIZ ANNEX 7Page 1 of 9

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

Resettlement and Rehabilitation Program (RRP): (CoM2onent 5)

,Backzround

1. The Singur Dam on the Manjira River is located some 60 km to thewest of Hyderabad. Construction of this dam is approaching completion. Thepurpose includes irrigation, electric power generation and drinking watersupply for the Manjira Phase III Stages 1 and 2 schemes, which will supplementthe supply for Metropolitan Hyderabad. The Manjira Phase III Stage 2 schemeis Component 1 of the project. The Singur Dam has been planned, designed andconstructed by the Irrigation Department (ID) of the Government of AndhraPradesh (GOAP), and financed by GOAP. The reservoir will be filled in twophases : (i) Phase 1 during the 1989 June to September monsoon season toEl 520.00; and (ii) Phase 2 during the 1990 monsoon to the full reservoirlevel of El 523.60.

2. In Andhra Pradesh, the reservoir, when full, will flood anestimated 13,122 ha. Within this area 27 village sites - including housing,schools, temples and other buildirngs and infrastructure - will be submerged.Fifteen of these, with a population of 1,695 households, will be submerged inPhase 1 during the 1989 monsoon; the remaining 12 villages with a populationof 2,425 households, will be submerged in 1990. A further 42 villages areaffected by the submergence of the lands - but not the village settlements -on which an estimated 2,000 households depend. Some of these will requirerehabilitation, but not resettlement, since their village settlements are notaffected.

3. In Karnataka upstream, a further 736 ha will be submerged in 1990during the second phase of the reservoir filling. However, here, no villagesites will be submerged.

4. The area, number of villages, number of households, and populationaffected are summarized in the following table.

VILLAGESETTLEMNT SUBMERGED LANDS ONLY SUBMERGED

LEFT RIGHT LEFT RIGHTANDHRA PRADESH TOTAL BANK BANK TOTAL BANK BANK TOTAL

Are- Submerged (Ha) 8,796 3,779 5,017 4,326 2,447 1,879 13,122

No. of Villages Affected-Phase I (to Eln 520.0 m) 15-Phase II (to Eln 523.6 m) 12

TOTAL 27 10 17 42 23 19 69

No. of Households Affected-Phase I (to Eln 520.0 m) 1,695-Phase II (to Eln 523.6 m) 2.425

TOTAL 4.120 1,811 2,309 2,000 1,134 866 6,120

Population Affected 23,540 10,270 13,270 11,600 6,580 5,020 35,140

KARNeA(- H

Area Submersed (Ha) 0 786 786

- 90 -

ANNEX 7Page 2 of 9

5. GOAP's payment of monetary compensation for the farmlands,structures, wells, trees and other property to be submerged is completed forthe villages to be submerged in the first 1989 phase of the reservoir fillingand is in progress for the remainoer. Compensation is determined according tothe provisions and procedures of the Land Acq'aisition Act of 1894 as amendedin 1984. Submergence and acquisition will reduce cultivable land and theincome of farmers; there will be a corresponding decrease in employmentopportunity for agricultural laborers, who are mostly of the scheduled castes(SC) and scheduled tribes (ST), and also for artisans and other workers suchas carpenters, blacksmiths, barbers, washermen who provide services toagriculturalists.

6. About 75 percent of the affected population Lerive theirlivelihood directly from farming; the remaining 25 percent are supported bywork as agricultural laborers, artisans and service workars. About 20 percentof affected population, generally the wealthier lpndowning families, havealready purchased new farmlands or businesses and moved to new locations oftheir own accord; this group does not require R&R assistance. TheResettlement and Rehabilitation Program (RRP below) is designed to assist thepopulation remaining in the vicirity through rehabilitation programs invillages for the displaced, which are to be newly-created under the Program,and those villagers suffering a loss of agricultural lands.

The Resettlement and Rehabilitation Program (RRP)

7. GOAP has prepared a 'Relocation and Resettlement Plan for ProiectAffected Persons under the Singur Project" dated March 1989 with theassistance of a non-governmental organization (NGO) - the Centre for Economicand Social Studies (CESS) of Hyderabad. The preparation of this plan involvedcomprehensive social surveys in the affected area and was carried outaccording to terms of reference drafted by the Bank at appraisal. This planwas adopted as GOAP policy by Government Order (GO) No 191 MA of April 12,1989. Subsequently, additional GO's 1/ relate to the implementation of theRRP; these establish the organizational framework, define responsibility,provide mechanisms for the rapid acquisition of lands for new settlementsites, which are to include a 20 percent allowance for future expansion, andfor expediting the completion of new village infrastructure. The RRP isplanned for implementation over a three year period.

8. Additional GOs have been issued to strengthen the RRPimplementation capacity of the Medak District Collector's office. Themeasures include the appointment of a 'Rehabilitation Officer" - with the rankof Deputy Collector - who will head a division responsible for theimplementation of rehabilitation. programs (para 24). They also include the

1J These are GO's: PT 617 MA; Ms 297 MA; Ms 298 MA; Ms 299 MA; and Ils 300MA which are all dated June 2, 1989.

- 91 -

ANNEX ZPage 3 of 9

provision of an engineering division responsible for the physical worksassociated with resettlement (para 14). ./

9. The Plan and the subsequent GOs providing the organizational andadministrative framework have been reviewed subsequent to appraisal and areconsidered generally satisfactory. However, greemnt was obtained atnegotiations that GOAP will (i) engage an indboendent social scienceresearch institution to evaluate the RRP implenentation and its effectivenessin the context of RRP objectives (nara 10 and prepare renorts at six-monthlyintervals: and (ii) determine promptly, after the receint of each such report,and in consultation with the Bank, revisions to the RRP. taking account of thefindings and recommendations of the reports.

10. The objectives of the RRP are that all Project Affected Familias(PAFs), after a reasonable transition period, shall:

(i) improve, or at least regain, the standard of living which they hadprior to displacement, through the restoration of their economicproductivity;

(ii) be relocated in village units, village sections or families inaccordance with their preference;

(iii) be fully integrated into the community to which they areresettled; and

(iv) be provided with appropriate compensation and adequate social andphysical rehabilitation infrastructure, including communityservices and facilities.

Resettlement

11. The number of households (HH) expected to settle in villages to becreated under the RRP is 3,630; this is made up as follows:

Village Lands onlyTOTAL Submer Submerged

TOTAL Project Affected HH 6120 4120 2000No for Resettlement 3630 3296 334Percent for Resettlement 59% 80%* 17%

* See para 6

.3./ GO No 410 MA of July 27, 1989 appoints an Engineering Unit of GOAP'sPanchayat Raj Engineering Establishment comprising: 1-Division (19persons); 2-Sub Divisions (12 persons each); and 8 Sections (1 personeach) for a total of 51 persons and authorized 3 Jeeps for their use.

GO No 438 of August 8, 1989 appoints a 23 person Rehabilitation Unit,led by a Rehabilitation Officer, working under the Medak DistrictCollector, and authorizes 1 Jeep for their use.

- 92 -

ANEX 7Page 4 of 9

12. A total of 21 YjllAgLesites have been identified on about 210 haof government land and 83 ha of private land which has been recently purchasedby COAP for this purpose. At July, 1989, eleven of these sites are beingprepared to receive those displaced by the 1989 monsoon Phase 1 of thereservoir filling; the remaining ten will be prepared before the 1990 Phase 2of the reservoir filling (para 1). The new settlements are usually withinexisting village boundaries or adjacent village boundaries. Accordingly,transport distances are short and livestock are transferred on foot.

13. GOAP's Town Planning Department is preparing the site layout1 s forthe new villages; at July, 1989 the plans for ten of the eleven village sitesrequired for Phase 1 had been completed. Each resettled family will receivefree a 200 m2 housejot. The allocation of these plots is by a village-levelcommittee, established under the RRP, to facilitate participation of theaffected families. Plots have already been allocated for those displaced byPhase 1 of the reservoir filling (para 1).

14. Infrastructure for these new villages will include approach roads,internal roads, drinking water borewells, primary schools, community halls,primary health care centers, veterinary clinics and electricity. Tocoordinate this work an Engineering Division, to be headed by an ExecutiveEngineer and including a staff of ten other engineers and support staff is tobe established, for the purpose of the RRP, at the Medak District Collector'soffice. In the interim, drinking water borewells and approach roads have beenprovided for the first fifteen resettlement sites. The provision of permanentinfrastructure will commence in September 1989 or when the 1989 monsoon seasonends.

15. In general, each resettled family will be responsible forconstructing its reolacement dwelling utilizing salvaged material from theirformer houses (for which free transport is provided, as well as for theirother belongings) and new materials purchased with compensation monies. Inthe interim, temporary shelters have been provided at the first fifteensettlement sites noted in para 14. Special arrangements are made under theRRP for the Scheduled Caste (SC) and Scheduled Tribe (ST) households displacedby the Singur reservoir. These represent a socio-economically disadvantagedsegment of the population and their original dwellings were of low value.Hence, their compensation monies are inadequate to construct acceptable newdwellings. Under the RRP, 1,150 SC/ST households will be provided with newhouses free of charge which are consistent with state-wide housing norms andprograms for the SC/STs. All the PAFs from villages below the 1989 monsoonPhase 1 reservoir filling level of El 520. have been evacuated, and plots havebeen allocated (para 13). The construction of permanent housing will commencein September, 1989 or when the 1989 monsoon season ends.

16. In addition to compensation for the public acquisition of landsand structures, those displaced are given resettlement grants which are Rs5,000 in the case of those losing lands and houses and Rs 1,000 in the case ofthose losing either only their lands or only their houses. These resettlementgrants are considered sufficient to provide interim subsistence during theperiod of new house construction and the acquisition of replacement farmlandor employment.

- 93 -

AMNEX 7Page 5 of 9

Re-establishing Economic Productivity (Rehabilitation).

17. The total of 6,120 affected families (see table in para 4) is madeup as follows:

Not Requiring Rehabilitation Assistance* 1,492 25%Medium Farmers (more than 2ha less than 4ha) 1,684 28%Small or Marginal Farmers (less than 2ha) 1,794 29%SC/ST (agricultural laborers) 1.150 liTOTAL for assistance 4.628TOTAL affected families 6.120 1Q01

* Absentee and large landowners, or those whose farms are onlymarginally affected.

The programs to assist the 4,628 families requiring assistance are: (i) theprovision of irrigation to replacement farmlands purchased by those who choosethis course; (ii) self-employment schemes; and (iii) the expansion ofagricultural labor opportunity.

18. It is expected that about 1,684 medium farmers (previously holdingmore than 2 ha but less than 4 ha) will purchase replacement farmlands neartheir new villages with the compensation received for their propertyacquisition. The RRP will provide some 300 irrigation borewells throughoutthe region for the purpose ot irrigating the remaining village farmiands,including those replacement lands purchased by the large and medium farmers.One such well can serve between 3 and 5 farms. The execution ofhydrogeological surveys will commence in 1989 and well consLruction willcommence thereafter, also in 1989. This work will be coordinated by the MedakDistrict Collector's offi'ce and executed by the AP Rural IrrigationDevelopment Corporation.

19. The estimated 1,794 small and marginal farmers (previously holdingless than 2 ha) were mostly living at or below the official poverty incomelevel of Rs 6,400 per year. The annual income from rainfed agriculture onsuch farms averaged only Rs 3,000 per ha. Such farmers are to be assistedwith self-emDlovment schemes of their choice, from which the incomes areexpected to be better than their prior earnings from agriculture. The self-employment schemes will include such endeavors as poultry-raising, dairycattle, sheep production, cycle shop, carpenter's shop and so forth. Thosewho are literate, who number about 270 persons among the 1,794 families, willhave the opportunity to receive training in skilled trades such as mechanic,electrician and so forth. These schemes are the same as those provided by theIntegrated Rural Development Program (IRDP), which are generally availablethroughout India, and administered by Banks at subsidized interest rates.However, under the RRP, the total cost of establishing a family in one of theavailable occupations will be met by GOAP, and the affected family will nothave to become indebted in order to re-establish their livelihood.

20. The 1,150 scheduled caste (SC) and scheduled tribe (ST) familieswork as agricultural labor and are expected to continue in this occupation.The special housing benefit for this group was noted in para 15.

- 94 -

ANNEX 7Page 6 of 9

The irrigation to be provided under the RRP (para 18) is expected to maintainthe demand for agricultural labor at pre Singur reservoir levels, even thoughthe area under cultivation will decrease.

RRP Manaeement and Administration.

21. Government Order (GO) Ms No 300 o' June 2, 1989 establishes thedetails of the administrative arrangements. At the State level, RRPimplementation supervision and guidance will be provided by a committeecomprising:

Department of HMAUD I/ : Secretary and Additional Secretary• Irrigation : Secretaryn Finance : Secretaryof Revenue : Secretary

Hyderabad Metro WSSB 2/ : Chief Engineer (CE)Medak District : Collector

22. The same GO also establishes a supervision and guidance commitveeat the District level comprising:

Medak District Collector (Chairman)Medak District Joint CollectorMedak District Education OfficerMedak District Executive EngineerRepresentative of the Chief Engineer of HMWSSBRehabilitation OfficerCommunity Development Officers responsible for the affected

villagesRepresentatives of the District to the AP legislature

23. The day-to-day RRP management responsibility will rest with theoffice of the Medak District Collector, who is the chief GOAP officialrepresentative in the District. All the affected villages are in MedakDistrict. This office will be strengthened by the addition of an engineeringdivision (para 14).

24. It will also be strengthened by the establishment of arehabilitation division. This will involve the appointment of aRehabilitation Officer, with the rank of Joint Collector, to be supported byfour development officers and other support staff (para 8). This divisionwill be responsible for the implementation of the self-employment and trainingprograms as well as for monitoring overall RRP progress. Quarterly progressreports on RRP implementation will be prepared and consolidated with HMWSSB'squarterly progress reports for submission to the Bank. Two desk-top computers

1/ Department of Housing Municipal Administration and Urban Development

2/ Hyderabad Metropolitan Water Supply and Sewerage Board - the mainproject agency.

- 95 -

Page 7 of 9

for the use of the rehabilitation division in the management and monitoring ofthe RRP are included in the project.

25. The role of COAP's Town Planning Department was described in para13 and that of the AP Rural Irrigation Development Corporation was describedin para 18. The provision of electricity (para 14) and household connectionswill be undertaken by the AP Electricity Board.

Imniementation Schedule

26. The following table summArizes the planned RRP implementationtimetable.

RESETTLMENT AND REHABILITATION PHYSICAL SCHEDULES

Indian Fiscal Years

1989- 1990- 1991-RRP COMPONENT Units TOTAL 1990 1991 1992

Families Relocated No 4,120 1,695 2,425 -

RESETTL NT INFRASTRUCTURE

Approach Roads - Formation km 69 69 - -- Metalling km S8 19 69 -

Internal Roads - Formation km 59 22 37 -- Metalling km 59 - 22 37

Drlnking Water - Borevells No 89 89- Piped Systems No 20 - 8 12

Schools Rooms 179 22 84 73

Common Buildings - Community Halls No 23 - 17 6General Purpose Bldgs. No 29 17 6 6Primary Health Centers No 7 - 2 5

Veterinary Clinics No 16 - 6 10

Electricity - Power Llnes km 34 17 17 -- Transformers No 14 8 6 -

REHABILITATION

Self-Employment Schemes Families 1524 380 610 534Employment Training Families 270 90 90 90

SUBTOTAL Families 1794 470 700 624

Irrlgation Borevells No 315 60 100 155

Housing for SC/ST No 1150 375 400 375

- 96 -

AME 7Page 8 of 9

Cost Estimates

27. GOAP s gross estimate of the costs fo. RRP implementation,including physical and price contingencies, duties, taxes and land acquisitionis:

s MiLlion USSmlllioNew village development and infrastructure 89.89 5.36Rehabilitation 72.09 4.29

TOTAL 161.98 2.U

The details of the cost estimates are presented in Annex 10. These estimatesdo not include the costs of the independent monitoring and evaluation (paras 9and 29), nor the cost of the two desk top personal computers to aid projectmanagement (para 24); these costs are included in the technical assistancecomponent of the project.

Risk Management. Monitoring and Evaluation

28. While it is likely that the economically weaker segments of theaffected families, including the small and marginal farmers and the SC/STgroups, will be able to regain or improve their previous standard of living,there exists some risk that other former farming families who owned mora than2 ha will not. This risk arises from the prospect of an increase in landprices in response to t'he inc-reased Liuwber of buyers ana in response to theanticipation of borewell irrigation benefits.

29. Accordingly, and as a safeguard, RRP implementation will bemonitored and evaluated by an independent social research institution(para 9). Evaluation reports 11/ on the effectiveness of the RRP's content andimplementation, in the ccntext of the RRP's objectives, will be prepared atsix-monthly intervals for GOAP. Upon receipt of these reports, GOAP 'willdeteimine promptly, and in consultacion with the Bank, revisions to the RRPtaking account of implementation progress and the findings and recommendationsof these independent monitoring and evaluation reports.

Procurement and Disbursements

30. For the most part, the procurement for the implementation of theinfrastructure construction, the construction of the irrigation borewells andthe housing for SC/ST (see table in para 26) will be local competitive bidding(LCB), conducted in accordance with procedures acceptable to the Bank.However, it is expected that there will be circumstances during the urgentrelocation program prior to the 1989 monsoon when direct contracting and workby force account may be Justified.

J/ These reports are in addition to the quarterly RRP progress reports tobe prepared by the Medak District Collector's office (pera 24).

- 97 -

ANNEX 7Page 9 of 9

31. Disburseents will be made againmt the expenditures for thepurposes described in para 30 will be made at the agreed percentage for LCBworks expenditures. Disbursements will also be made against expenditures forthe self-employment and employment training schemes. For the purpose ofdisbursements, expenditures for independent monitoring and evaluation (para29) will be classified as technical assistance.

Retroactive Financing.

32. GOAP has requested retroactive financing, to the amount ofUS$3.00 million, for expenditures of the RRP; this is recommended.

- 98 -

ANNEX 8Page 1 of 13

INDIA

HYDERAJAD WATER SUPPLY AND SANITATION PROJECT

Technical Assistance - Outline Terms of Reference - Component 6

coo"e IA ct 11 " Pricsand I aee M" ili e an

Po vnned"M" KVMWMS CIST To CeneIa ten

ierW MAL UP A.o*iet'Lii. POSfi LOCAL S ON C0T COSiT 1C Date

VATS MLY

6.21 Survey. and Infrestructure lping 100 - a.00 - 0.60 8.80 Ann S S" 0, 906.22 Unmecoun"td-for Water lhnagmnt tsJdiee 40 12 1.20 2.32 2.60 6.S2 Ann S S" 60. 606.2Si Detile Di ributien Aseijele antd Oeiw. 10 - 1.20 - 0.80 8.50 Ann S Sp SO. 06.2 sytem operation and Ibintnance a so 5 1.30 1.06 _ 2.56 Ann 6 Jun So, 60

mfhTAL VATS SDPTY 260 1? 8.70 8.57 8.60 18.6?

#S EA3 AND SANTATION

6.81 Project Preparation Stdiee 1 - 0.45 - - 0.45 Work Done ce N/A6.32 Induetrial Waste anag t Stui - - - - - - Ann ! CoQAP/APPCS[HMW86.88 Sewer Condition Ae st Studies S0 5 1.SO 1.06 0.60 8.15 AAn 8 Sept 30, 906.34 Dt :!aJ Deeign S00 10 9.00 2.10 2.90 14.00 Ann 6 Sept 80, 606.41 Law Cost Senitetion Studies - - - - - - Anna S S

- - -- --- -- - -- - - - - -- - -- - -- -- - -- - -- -- -- -- -- -- -- - -- - -- -- - -- - -- - - - -- :

SUEtTTAL S CL AND SANITATION 865 1S 10.95 8.15 8.50 17. 0

6.00 DA--- N R PADEL 40 - 1.20 - - 1.20 Ann COct 192, SO

ERc 6ENT APO R48ILITATION (RM)

:S51 RAR Plan Freearation 12 - 0. s 0.15 Work Don eec6.52 RR Program Evaluation J6 0.45 - 0.10 0.55 Nag Nr 51, 90

SU.TOTAL E@TTLOT DO Ri8ILrTATIBF 48i 0.60 0.10 0.70

6.61 TRA---- ii STUDlfS - - - - - - Ann 9 COAP/H64558

6.81 571.015 TO 8f itOTIFID 16 - 0.48 - - 0 48 Ann 8 N/A

FINACIAL ADO iW4tONT STUDIeS

6.91 Accounting anfd aneg't Infora'n System 60 _ 60 _ 0 50 2.80 Ann 8 June 30, 906.92 Project Planning and ControI Syst 40 - 1.20 - 0 10 1. 0 Ann 8 June 30, 906.98 Revenue Billin and ColleCtion SyaSe 30 8 0.60 0 S6 - 1.58 Ann 8 June 80, 906,94 Materici PHnc t and Store. Inventory 80 - 0.60 - - 0.60 Ann 8 Sept 80, 90

ShETOTAL FDi Cl4DAL AND tMM EOT STWIES 160 8 4.80 0.8 06 O 6iO 0 8 O

TOTALS 919 85 26.75 7.85 7.80 41.68

c Water Suppl rd Seserege.cc Identifiction miseeon eide-eoir*ae Appraisel aiseeon aidie_-eeire which give. coneilerable detail of the background.

Mote: The oeuiesent under the Finenclal and Nanagsent Studies and In the Resettisaent andRehehiIiteion Evalustion St,udie. is for 14 Micro-Coputere, software end acceesories ma follows.Additional micro-coeputers for tchnical uee, iill be provided with ceeeorie, softwareand training to 1,161 etef in their u-, unr the ater supply and ew*roge etudies.

Finance and Accounting 0b538) Project Cell I S#) Col lector (Model)

Payrol 1 Project Planning - Control 1 For RARP lo_leG-General Loer 1 Word Proeceing 1 entetien MonitoringWorh- Accounting 1 --- ---Financial Anaiysei I SUTtOTAL 2 SUBTOTAL 2K"II ing 2 --- ---Director of Finance 1Internal Audit 1Word Proe"eing 1Nte-isale Monegeent I

SI1TOTAL 10

-99-

Page 2 of 13

1. WAE SUPY

6 21 SURVM S AND !U1R ASTUCTUNI NAPP"NC

1. The existing water supply transission nd distributien system. d:te back about 65 years, to thecemlasi@ntmg of the supply from Osmansegar in 1922, although an earlier schm dates Uack to 1690, _n thesupply was obtalned from Husaainsagar. However, this is now polluted sad no longer used a a s*ource ofsupply.

2. The total length of the existing trunk diatrLbution system is about 230 ke vith pipe Lois varyingfroe 225 to 1200 _ in di-mter. The system hs been progressively extendd over the years And various pipematerials have been used Lieluding cast iron, asbestos e_nst, reinfored and prestressed eacrete.

3. A major portion of the distribution systm is 40-60 years old, although somc portion of the systemen the outskirts of the city l1imts have been laid since 19S, at which tLe the fist supply wms take. frmthe NanjLra source. A total storage capacity of 430 Mid is provided throughout the city and surrountdingareas at 82 locations there are also 14 pumping stations.

4. There Ls no existing comprehensive set of records and drawings of these system facilities. In fact,the first map of the trunk distribution systm -as produced during the preparation of this project for WorldBank assistance. Such information is esnentLal for HMWSSB to properly execute its responsibilitLes as autility undertaking particularly o area3 of! (1) operation and naLnitazanca; (ii) for:ard planning anddevelopment. (iii) leakage assessment and rontroll (Lv) syste_ operation and controls (v) serviceLmprovement, and so forth. This situation ill be addressed vithin the project and specifically under thistechnical assistance component, which has the following objectives.

Obiectives

3. To provide HMWSSB vith a comprehensive set of records and maps of the existing water supply systemincluding intake and transmLssion, treatment, storage, pumping and distribution Lncluding valves andhydrants, for operational, planning and executing leakage control, maintenance management and planningpurposes,

assembled information.

Scope of Work

7. Three main Items are involved in the scope of work: (A) - Development of Maps, (B) - Field Surveysand (C) - Preparatlon of Layout Drawings.

(A) Develooment of faos

(a) Obtain available maps from HMWSSB/HUDA/GOAP/Town Planning Departmentlany other agency forreview.

(b) Develop maps to required scales, as lndicated below.

(c) These maps shall indicate road layouts, all important geographical features and contours at 1 minterval.

SCHEDULE OF MAPS AND DRAWINGS

Type Area (Grid) No. ofNo. Puroose Scale Coverag g raiL (cm) Maps

1 Local and Trunk 1:2500 RUA (80 x 80) 80Distribution 309 Sq km

2 Local and Trunk 1:500 Old CLty (80 x 80) 100Distribution 15 Sq km

3 Trunk 1:20000 bUA Free Size 2DistrLbution 309 Sq km

* Index Nape - - - 1Campus Drawings

5 Service To be All SRs/ As 100Reservoirs decided MDR& required

6 Pumping To be All PSs As 75StatLons decided required

7 Water Treatment 1:200 All WTPs 80 x 60 6Plants

TOTAL 364*Showing sources and transmission systems. -

-100-

Page 3 of 13

(3) E.&aii..z(a) Aligzment surveys for local and trunk distribution maims with eleetre=Lo pipo leoatorc.

(b) Prepare location sketches to show junctLos details aid alLaigmut of m_ins with ref re_ topermanent structures a"d rcod *de 4

(a) Leoatie eurweye for all types of valves exiatiat in the syste_. Asc"rtain divetLeo ofoperating each valve for _penln/closin .

(4) Semple field oheekJ wherever reqaired for verifieatiem of plpelvelve *lces materials.

(e) Levellip4lourvey for verification of elevatoln. at all the weter supply installatieos La tebitSA's service area. Fixing of temprary bench mark. e connected to OTS bench m_rks) at

about 50 locations In the city as advLsed by UWIS3.

(C) Preparation of Layout Drawinas

Transfer data collected from field surveys and those collected frem avaLlable system record. dulyupdated and corrected, on the maps devloped as in (A) aboye. The layout drawings to indicate thefollowing:

(a) For local and trunk distribution system

- Local and trunk distribution mains to be shown by distinct legend.

- Alignment of mains with reference to peranent structures, whete possible, and to road edgesand locations of all valves and connections.

- Pipe siaes, materials and approximate year of installation.

-Valv, types and sizes.

-Status of valves - open. closed, throttled, daily-operated, or otherwise, rnd the directionof operation viz., clockwLse or anticlockvise.

(b) Campus (Site) Drawings to show

- Layout of all civil structures and main dimnsions.

- Important elevations.

- Layout of pimping stations and their piping.

- Layout of piping, pipe, size, valves, interconnect.ons nd their ,perational status.

- Salient featuros/data to be indicated on each sheot (in tabular form) such as capacitiesand elevations of service reservoirs, nam plate details for pumps and motors, year ofconstructionlinstallation, etc.

General

S. Layout drawings for all types except for Type 3 to be prepared on tracing paper of approved qualityarn size and submitted in o-'- ii to HEHSSB vith one extra set on *ylar. For trunk distribution system asper Type 3 Map a draving to be prepared for color printing, according to an agreed color system, and 300copies to be furnished to HMWSSB.

Cost of Services

Cost (Rs milLon)Man Months Local ForeLan

Local 100 3.0Equipment L 5 _

6.22 UVACCOUWTED-FOR WATER MAMAGDMUT STUDY

Background

1. The presently available water supply to the twvn cities of Hyderabad and Secunderabad is estimtedto be about 450 Mld during years of normal rainfall. On completion of the Manjira phase III Stage I schm ,which is currently under implementation, and the Manjira Phase III Stage 2 schemo uader the Bank project,this ftgure would increase to about 720 Mld after alloving for groundwater production. The 1991 grossdemand including domestic. comercial, iadustrical, leakage and committed supplies ba been eatimatd around823 Mld. After subtracting the 211 Mld supplies comitted outsLds the NCR boundary for bulk supplies, theavailable gross per capita supply will be about 179 lpd at that time. This is a mod"et supply by coMparlsonvith other ecties in India and elsewhere in the developing world.

-101-

ANNE:X 8Page 4 of 13

2. The project therefore has a short tLme horison of bare adequacy and GOAP is already taking steps toaugment supplies in the future. An initial report entitled 'Augmentation of Drinaing Water Supply to TwlnCL,.s. of Hyderabad nd Secunderabad from Krishna I Godavari River' has been prepared by en expert eomLtteend submitted to GOAP in Kay, 1987. Various alternatve sch es are proposed with very high investment

costs estLated Ln the range Rs 438-1421 crares (USS 337-1093 millon).

3. Water ccn-ervation policies and practices, whilh reduce wastage and leakage, and an unaccounted-forwater managment strategy, will bece _ ncreasLngly Leportant m ad ln tho future *a an integral part ofd"WSSb's operational activitles. At this tLmo the smoumt of wster lost through the transmission anddistribution systm , through treatment plant and water storage structures, or treatment operations is notknown since ISSI does not have bulk meters in operation. An overall figure of 20S loss from thetransmaision and distribution systm hMa been adopted in the water dmand calculations, howevevr, s*evidence appears to indicate that system losses could be substantially higher than the assumed fiXures.Specifically, two sections of transmission which are known to leak severely are being replaced under thlsproject. HHSSB'o eyste_ has about 174,000 connections, mot of which are *etered and water charges arebased oan consumptlon. Water conservation can be (and ls) ncouraged by the progressively rising tariffstructure.

4. However, this practice does not address the underlyLng problem of system losses before re4chLng theconsumer's premises.

5. The present practice in Hyderabad is that consumers have to purchase the water mater and areresponsible for the connecting service from the HMWSSt distributlon main in the street. The connections areusually m-ad of galvanized piping, vhich has a short effective life of 10-15 years. It ls reliably believedthat a substantlal leakage occurs th,ough these service connections, many of vhich were installed severaldecades ago. A major program of replacement (possibly usilng plastic pipe materials) needs to be considered.Although HMWSSB has recently set up a leakage control cell to undertake control of unaccounted vater, thiscell has not yet become effectLve due to the emergency drought works, vhlch are also entrusted to the sameteem. Although hours of service of supply have been severely restrLcted in recent years due to droughtconditions (2 hours every second day) a major obstacle to Lproved servlce delivery could be the highleakage and unaccounted water which is lost from the system. There is therefore an urgent need for HMWSSBto address this issue of unaccounted water management, with the broader context of its overall operationalactlvities as a water utility organization. This study would begin to quantify the problem and develop astrategy to guide IMDSSB with the following objectives:

Obiectives

6. The objectives of these studLes are:

(a) To review existing practices of HMWSSB with regard to unaccounted water management, recosmendany necessary changes and develop a strategy for HMWSSB for future operatLonal and controlpractices including legal, management, charglng policies and a1! relevant aspects;

(b) To make an overall water audlt of the system using records of the bulk meters to be Lnstalledmeter the project, and using estimates of the consumption from consumer mater records andotherwise. Large meters shall be calibrated in the field. Estimates of losses shall beprepared for *ech major transmission/treatment system and each major distribution zones

(c) To undertake systematic leakage surveys in selected areas on a demonstration basis, to assessunaccounted water and develop a program for routine leakage control surveys for hMWSSB toadopt in the future;

(d) On the basis of the information obtained from the demonstration surveys, and elsewhere,prepare time bound implementation progrsms, indicating equipment needs, logistical arran-gements and budgetary costs to rectify the apparent system deficiencies throughout the HMWSSBsupply area;

(e) To provide training for HMWSSB persoeinl in unaccounted water management and in appropriateleakage control technology both in India and, if appropriate, elsewhere;

(f) To identify, develop and put in place management reporting systems pertaining to unaccountedwater management of HMWSSB.

Scope of Work

7. The activities and outputs under this consultancy service are interlinked vith other activitiesbeing undertaken under the project. The scope of vork in thls component therefore assumes that thefolloving will be carried out/supplied/installed under parallel or prior activities.

(a) Bulk meters will be supplied and installed under a separate contract.

(b) BMWSSB will engage consulting servLces to undertake surveys and mapping of the waterdistribution network systems. This information vill be made available as a data base.

(c) hMVSSB will undertake with consultant assistance a computer netwcrk analysis of thedistribution systems.

(d) Improved billing/collection procedures vill be introduced.

-102-

ANNEX8Page 5 of 13

(e) UIDSSS leakage control cell will work on a full-tine b-ais as a counterpart teem for thisstudy.

8. The ctLLtileg are:

(a) Review existing data, procedures. etc. for ueaccounted water management end recoomed anynecessary chaoses sad an operational strategy for WSS ln the future. This will include atleast:

(L) Recording and analysis of bulk water flow records.

(Lt) Analysis of water treatment operational practices

(LiL) Regulatory practices regarding (L) "ter ownership, testing, replacement; (ii) serviceconnection pipe ownership, replacement construction miaterials , (CiL) disconnectionpoliciest (iv) billing/collection procedures.

(b) Undertake leakage assessmnt surveys on a demonstration basis at three areas covering thewidest possible range of service supply. Each area should include about 200-250 property con-nections. On the basis of the assessewnts determine the unaccounted water, identify endrectify major leaks (undertaken by E*WSSB labor) and re-assess the resulting benefits infinancial and economic terms,

(c) Provide 'hands-on' training for BMWSSI counterpart personnel on the use of leakage detectionand pipe location equipment and interpretation of the resulting informatlon.

Cd) Advise HMWSSB on the approprlate equipment to be purchased and prepare technicalspecificatLons suitable for international competitive bidding procedures.

(e) Identify a long-term leakage control policy for HMWSSB to implemnt throughout the wholesupply area. This shall include the identification of sub-areas, staff needs, records,plumbing materials, training, recruitment in sufficient detail to enable HMWSSB undertake theprogram (with technical asaistance if necessary) in whiL,n case terms of reference And costestimates shall be provided.

(f) Identify an7 specific local/overseas training requirements.

(C) Pi-pare an Lmplementation plan together with budgetary costs and logistical arranSements forNMW4SSB to rectify the identified system deficiencies e.g., replacement of service connections,etc.

(h) Identify, develop and put in place a management and reporting system relating to unaccountedwater management aspects of the HMWSSB operations. This system would provide basicinformation for the overall Management Informatlon System (MIS) to be installed by HBWSSB.This should include hardware, software, etc. and personnel training.

Cost of Services

9. The budget cost of the above services is estimated as follovs

Cgst (Rs million)Man Months Local ForLU2gn Total

Local Consultant 40 1.2 - 1.2Foreign Consultant 12 - 2.5 2.5Vehicles end Equipment 0 2 2.4 2.6

TOTAL 1 4 4. 92

6.23 DETAILED ENGINEERING STUDIES - FINAL DESIGN - DISTRIBUTION ANALYSIS

Backaround

1. Final design and tid docum nt preparation for the Mnjira Phase III Stage 1 (Component 1 of theP'-ject) has been largely completed by 1*WSSB, but work is required to revLse the prequalification and hiddocuments for eompliance with the World Bank's 'Guidelines for Procuremnt". Also, the designs for theselected components need reviev. Secondly, Component 2 of the Project, - Rehabilitation of ExLsting WaterSystems - has been developed only to the stage of determination of the preferred conc*pts, the scope of thework, and preliminary cost astimates. The preparation of final designs for thLs component vill includedetailed network Analysis by computer, utilizing the information obtained in technical assistance Component1.1 above - Surveys and Infrastructure Mapping.

Obiectives

2. The objectives of this sasistence *re to (i) enable HMWSSB to proceed expeditLously with theexecution of the water supply components of the project and CLi) hilp ensure the utilization of optLaltechnical solutions Ln the vater supply components of the project.

-10 3-

ANNE 8Page 6 of 13

Scout of Work

Comoonent 1+2 - Preaualification and Bid Documents

3. Prepare, using word-processing, sets of model documnts for use throughout the project:

(a) Prequalifieation documnts.tb) ICB bid documents (International Competitive Bidding) for the procurement of works.(c) ICB bid documnts for the procuremnt of goods.(d) LCB (Local Competitive Blidding) bld documnts for the procurement of gooda.(e) LCB bld documnts for the procuremnt of works.

4. These documnts shall be in conformity with the World Bank's 'Guidelines for Procuremnt'. The blddocuments shell comprise:

(a) Invitation to Bid(b) Instructions to Bidders(c) General Conditions of Contract(d) Form of Bid Security(e) Form of Performance Security(f) Form of Agreemnt

5. Prepare specific bid documents for those items in Project Component (1) which are on the criticalpath, i.e. (i) the 135 Mld water treatment plant at Peddapur and (ii) the pumps and motors for the pumpiagstation at Peddapur. In addition to the documents identified In (4.) above these shall also include.

(a) Special Conditions of Contract(b) Technical Specifications(c) Schedules of Supplementary Information to be provided by Bidders(d) Drawings(e) Form of Tender - Bill of Quantities

Final Design and Bid Documents - Proiect Comvonent (2)

6. Project Component (2) includes:

(a) 4S No. bulk flow meters - supply and install(b) Pumping stations at i rakashnagar, Hussainsaga: and Jubilee Tower(c) Distribution reservoirs at Prakashnagar (3 Ml), HussaLnsagar (6 Ml), Bojagutta (13 Ml) and

Jubilee Tower (lO Ml)(d) Construct retaining wall along portions of the MKnjlra Phase II main for 12 km re agricultural

encroachment(e) Transmission and trunk mains - 22.5 km of 400 mm to 1000 mm di&.(f) The supply of leak detection equipment(a) Repair to Rajampet clear water reservoir(h) Replacement of Ramchandrapuram - BHEL, 4.5 km 1570 mm dia.(i) Replacement of valves in existing Manjira Phase I Main 4 No. - 1050 mm and 2 No. - 900 mm(j) Supply 2 No. standby motors at Manjira raw water intake - 750 hp, and supply and install 3 No,

replacement pumps and motors at each of Rajamp-t and Pattenche,J together with autotransformer starters and control panels, and with the related electrical wiring.

(k) Supply and install 30 T capacity weigh bridge.(l) Supply and install 4 chlorinators.(m) Replace 15 km of Osmansagar to Asifnagar PSC pipe with 2000 nrn dia.(n) Construct office buildings at thairatabad (extensions and improvements).(o) Strengthen existing distributing system - about 100 km.(p) Rehabilitation of existing water treatment plants at Asiftagar, Miralam, Rajampet and

Kalabgur.

7. For the final design of Item (o) above, the strenSthening of the existing distribution system, thework includes a network analysis by computer. caking due account of the effects of other system improvementsplanned under both Components (1) and (2) of the project and based on the record to be generated under theTechnical Assistance Component in Item 1.1 above. The analysis shall be based on the estimated demands inthe year 2011, and shall consider all mains of 100 mm diameter and larger. The details of the distributionmodel shall be documented for use in the unaccounted-for water management studies described in Item 1.2above.

S. For both the distribution system improvements (para 9) and for larger mains, the work includes thepresentation of recommendations, and the rationale for pipe mateiLal, including service connections.

9. For all items, the work includes detailed engineering design, the preparation of drawings,specifications and bid documents.

10. Within three months of coemencement, a report shall be prepared indicating the grouping of bothequipment and materials supply and civil works for tendering purposes and providing schedules for completionof the engineering work and the implementation. This report will be used as a Work Plan to assist themanagement of the ongoing engineering and implementation and shall be updated, from time to tim, asappropriate.

11. All documents produced shall be first produced in draft for review and comnents by BW4SSI nd thenproduced in final form to reflect the co mments received.

-104-

ANNEX 8Page 7 of 13

Coat of Services January 1, 198Base Coats (Us m1llon)

Man month Teg; ore n Total

Local Services .00 3.0 - 3.0qutip nt and Vohiclls 0.3 - 0.3Slte Investigations -

TOTAL 5

6.24 SYSTD4S OPUATIO Afl XNThL&MCI

bgacksoun4

1. HiSSI's existing water supply syste_ consists of 2 dams snd one barrage, five vater treatm_ntplants, about 400 km of transmilsion and trunk distrlbution mains, about JO puping 3yatems and 100 servicereservoirs in addition to the local distribution system covering a 170 km area. These facillties will befurther increased vhen the anjira Phase III project is commenced. HWSSB's Sanitary SeWerage Systemcomprised a mainly gravity collection system drainage to a treatment plant under rehabilitatLon at Ambrpet.The collection system vill be stengthened under the project end addLLonal treatment capacLty provided atAmberpet. In addLtion H4SSB operates a vehicle fleet vorkshops, laboratory facilitLes. Efficientoperation and maintenance is essential to ensure a reliable and cost-effective level of vater supply andseverage service to the consurors. HWSSB therefore wishes to engage consultants to underteke a review ofthe present operational practLces vith the following objectLves.

ObAectives

2. To reviev the existing operational practices of HMWSSB, carry out an operation and maintenancedeficiency analysis having regard to benefit-cost prLnciples, and make recommendatLons for a program ofimprovements, including any recemnendations on organizational arrangements, personnel policies and personneltraining.

3. To prepare guidelines and operation manuals for efficient operation and maintenance of the systems.

Scope of Work

4. The scope of work Is to:

(a) Reviev current HMWSSB operation and maintenance practices.

(b) Review the orgxanlational requirements, personnel polLcLes and training practices forefficient operation and maJntenance and, as appropriate, recoamend any necessary changes.

(c) Prepare operational manuals end maintenance SuLdelines for;Treatment Plants (Water and Sewage)Pumping Stations (Water end Sevage)Water distribution system icludLng connectLonsSewerage collection system including connectionsBulk and Consumer Water Meter MaintenanceVehicle MaintenanceWater Quality Monitoring

(d) Review organizational structure and staffing needs.

(ea Identify equipment needs *nd prepare cost estimates.

Cost of Services

5. The budget cost of the above services is estLmated as follows:

Costs fRs millionlLoc9l Forelcn Total

Local Consultant - 50 HH 1.5 - 1.5Foreign Consultant - 5 M_ 1.1 1

TOTAL 1 5 1 2

II. SEWERAGE AND SANITATION

6.31 INDUST!RIAL WASTE MANAGEMENT STUDIES

Backzround

1. There are about 14 industrial estates in the project area extending over about 40 km2 end a varietyof Lndustrios ncluding textiles, pharmaceuticals, chemicals, electroplating actLvities. Most estates arelocated around tne boundary of monicipal limits. Many dLscharge vaste directly into open drains and1hssaLnsagar Lake is grossly polluted as a consequence. Others dLscharge mostly untreated effluent lnto thesewer system vhich is overloaded. There is no systematic and comprehenaLve data on industrial wastes atthis tLme. Very fev industrles treat the wastes before discharge although standards exLst setting tolerancelmits for industrial effluents for discharge lnto pubilc sewers end other dLsposal systems such as surface

-105-

AMEXG 8Page 8 of 13

vw&ters, i.ri4ation ure and marine coastal areas (see IS 2490 Part-I, 1961). Further, GOAl's PollutionControl board has certain regulatory authority. There is therefore an urgent need for effectlve overallindustrial waste management in the twin cities of Hyderabad and Secunderabad. This study would provideadvice on this lssue.

Ob10xtives

2. The objectives of this study are

(a) To review the industrial waste effluent situation ln the tvin cities with regard to quantitynd characteristics of effluent discharges taking account of present snd planned developmenta

(b) To review the sewer use regulations for industrLal waste discharges and the existing tariffstructure and recomend any alternative strategy if considered appropriate. This should tskelnto account the need and cost and tLe requirements for any pre-treatmanta end

(c) Recomend a policy, regulatory and physical Lplementation progrm and provide estLmtes ofthe public and private (industrial) costs for implementation of the recommendations in (b)above.

Scope of Work

3. The scope of the work is to;

(a) Review existing data.

(b) Prepare an inventory of all industrLes by location, size, type of activity, effluent quantityand characterlstics, pre-treatment, existing discharge arrangements.

(c) Prepare location maps susnariting the tabulated information in (b) above.

(d) Assess sewer-use tariffs and resulting revenues, present and future.

(e) Review existing regulations and identify/recowmend any needed changes.

(f) Review pre-treatment practices at present and recommend any needed changes. Consider majorand minor industries separately if considered approprLate.

(g) Prepare an Liplementation plan and budget costs to Lsplement the recomnendations.

(h) Prepare a clear, concLse report documenting all the findings and recommendatLons.

Execution

4. These studies are estimated to require 50 manmon.hs of professional tLme and access to laboratoryservices. They will be undertaken jointly by GOAP's Pollution Control Board and by HMWSSB with their ownstaff.

6.33 SEWER CONDITION ASSESSMENT STUDIES

Bckaround

1. The older parts of the sewerage system in the city date back almost 60 years with a total length ofabout 1200 km in sizes varying between 200 and 1650 mm diameter. Construction materials used in thecollection system include glazed stone ware for smaller diameters up to about 375 mm sle, reinforcedconcrete pipes for larger sizes and brick masonry for the main outfalls which are 1425 to 1650 mm in size.Pumplng mains are of cast Iron material with lead joLnts. The main sewer lines presently under constructionare reinforced concrete pipes with rubber ring joints.

2. Some of the older lines are damaged and in poor conditlon; others are silted up and surcharge due toinadequate routlne maintenance. MCE has in the past had the responsibility for operation and maintenance ofthe system, but for various rtasons (nainly inadequate budgetary allocations) was not able to undertake allnecessary routine maintenance work. There are no adequate records or inventories and the condition of theexisting facilities is not documented.

3. To rectify this situation a sever condition assessment survey is necessary. This will be undertakenas part of the World Bank-assisted project with the following objectives.

Obiectives

4. To inventory and document the existlng sewer system, assess sewer conditions, determine therehabilitation needs and prepare rehabilitation Lmplementation progran together with cost estimates.

SCOpe of Work

5. The scope of the work is to:

(a) Review existing data.

-106-

MNEXX 8Page 9 of 13

(b) Prepare record drawings for the existLng system (200 m di_mter and above) ts a scale of1:5000 or largeT appropriate seale, identifyLng all sewvr by &is*, material, appurt-enacesmanholes, references, etc.

(c) Prepre an inventory of al* lines, manholes, ete.

(4) Inspect all lines systematically and report on the cndittio* assessent, blockages,rehabilitation nee"d and all pertinent data. Thls survey should include physieal Lnspectionsto the extent possible supple_nted by TV camera. survey as appropriate.

(e) The survey reporting formt shall be designed as a m*aboleIline by line basis by agreementwith UHWSSI prior to the cammenc mnt of inspections.

(f) A progrem of inspections shall be determined Jointly vith BWSSI. This shall be adhered toand reports and record drawings shall be progressively turned aver to ISSB on en area byarea basis.

(a) Based on the overall findings of the survey outlined above, rehabilitatLon needs shall beassessd and an implementation progrsa shall be determined together vith cost estLmtes forcarrying out the works.

(h) The rehbilitation program shall fully consider: (1) appropriate available technologies forseevr renovations (2) their applicability to the Hyderabad situation and (3) the capability oflocal contracting industry.

(i) To the extent appropriate, HHSSB personnel shall be trained in the use snd interpretation ofthe adopted survey technology.

(j) The data, records, invento es, drawings, reco andations, plans, etc. shall be presented in aclear, conciso report.

Cost of Services

6. The budget cost of the above services is estimated as follovs

Cost (Rs million)Kan Month Local Foreg iotal

Local Consultant 50 1.5 - 1.5Foreign Spcialists 5 - 1.1 1.1Vehicles - 0.2 - 0.2Equipment _- 0.4 0.4

TOTAL 1.7 152

6.34 ENGINEERING DESIGN. DRAWINGS A 'D BID DOCUIENTS - PROJECT COMPONENT 3 - SEWERAGEBackaround

1. This consultancy service covers the detailed engineering design, the preparation of technic*lspecificatLons and tender documents, topographical survey and geotechnical investlgation for the sewerageproject which is Ldentified as Component (3) of the project.

2. This component comprises the following major items:

(a) Sevage treatment plant (STP) of 180 Mld capacity.

(b) Sevage pumping statlons (SPS) - 4 aos.; capacity varying from 300 m3/hr to 24,000 m31hr.

(c) Main severs of about 43 km length (diameter varying from 300 me to 1800 m and 1.85 . x 1.85 .RCC duct).

(d) Transfer of *bout 20,000 connectLons from storm water drains to sanitary severs.

(e) Branch severs of about 26 km length and dLmeoter varying from 200 o to 300 mm.

(f) Rehabilitation of damaged RCC mains.

(S) Procurement of equlpment for sewer cleaning, laboratory etc.

Oblectives

3. The objectives of this technical assistance is to prepare detailed engineering studies, technicalspecifications and tender documents for the ewverage component of the project, as outlLned above, to enableHMWSSB to invite tenders to execute the works.

Scope of Works

4. The scope of the vork is:

(a) RevLv exlsting data.

j -107-

Page 10 of 13

(b) Carry out all necessary topographical surveys.

(c) Identify geotechnical investigatlon work to be carried out and prepare tender docuesnts canasslst ln selection of agencies. Review and interpret the data and results of theseinvestigations.

(d) Prepare detailed design and constructlon drawings for sewers, SPS end STP.

(c) Prepare pr-qualLfication docum_ nts for sewage treatment plant snd aerators.

(f) Prepare tender douemnts for trunk sewre, sewage pumpin stations and treatment plent bothfor goods and works contracts.

(g) Prepare tender evaluation end recmmendation report.

(h) Revlev vendor drawings for mchanical end electrical equipment and for civil/structuraldrawings for the treatment plant.

(i) Conduct factory inspection of equipmnt and coordination activities.

Cost of Services

5. The budget cost of the above services is estLmated as follows:

Cost (Rs millionLocal ForeLein Total

Local Consultant - 300 MM 9.00 - 9.00Forelgn Consultant - 10 MM - 2.10 2.10Misc. and Equipment 0.60 1.30 1.90Topographical Surveys,Geotechr.ical Investigations 1.00 -1.00

TOTAL 10.60 3.40 14.00

6.41 LOW COST SANITATION STUDIES

Background

1. The present severage system covers about 62X of the area vithin the MCH municipal limits, wherethere are also about 500 slum areas. Many households still rely on dry latrines for excreta dlsposal, andsome households are without latrines of any kind. GOAP has coamenced a progren of construction of water-seal, pour-flush l1&rines and for the conversion of dry latrines to water-seal, pour-flush latrines. These*re either connected to existing sewers, where those exist, or to soak pits in unsewered areas. Thisprogram is being executed by the Urban Community Development Department (UCDD) of MCH with financialassistance from GOI end the Overseas Development Administration (ODA) of United Kingdom. Through 1992, aprogram of 40,000 units is planned; about 8000 have been completed so far.

2. Under this World Bank project, a further 20,000 water-seal units are progreamed (10,000 conversionsand 30,000 new lnstallations). In order for 8MUSSB to implement this additional program expeditiously,studies are proposed vith the following objectives.

Obiectives

3. The objectives of these studles are:

(a) To undertake local surveys to identify the most appropriate designs and installation detailsto sult the specific needs of different urban development and housing conditions in differentareas of the city, end

(b) To provide assistance ln all aspects of the Lmplementation of the program, Lncluding planning,financing, prioritisatLon, health education and related aspects.

Scope of Works

4. The scope of the work is to:

(a) Review existing programs and data and identify all areas vhere dry latrines are not yetconverted or where a significant number of people do not have latrines.

(b) Assist MWSSB to develop health education program to increase the avareness of slu dwellersto the benefits of improved sanitation.

- 108 -

ANNEX 8Page 11 of 13

(c) Assess the oemmIty ac ptcaee Of sanitation improveents in relation to soeial back4roundand affordability apectr with regard to the arrangements for cost sharing by thebinficiarLes.

(4) Advie an the appropriate type of Lnstallation to suLt specific ite conditions, consideringsuch aspoets spa"e availabillty, the location of *xisting severs and drinking water wvels,the ned for on-site diLposal the configuration of pLt d*signs, shapes, the superstructuredaa-gn, *te. Thls .eomideratien should allow a flexible approach adaptable to localsituations .

(e) Documnt all areas already _vred by existing proegrm and prepore an implementation plan forun rvd areas by _mbr tpd to of Lnstallation.

(f) Determine a prioritLsed installation program.

(g) Relate the Liplems_tatLon program to priorities, available resources and financial andexecuting capaeities of MSSM and other aencies, as appropriate, including suitablyidentified ad experiend _ontractors.

(h) Recommend a monitoring system, ineluding softvare, for completed installations and set up sucha system on a demonstration basis, covering about 2000 units and including software, thetrainiga of HNUSS5 staff end the proviaLon of equipment.

Execution

5. These studies are estimated to require 25 nan-months of lnput. They will be undertaken by BMISSB,Ln consultatLon vith UCDD, with their own wn staff resources.

6.81 IATE SU PLY AND SANITATION STUDIES - PROJECT PREPARATION ACTIVITIES TO 31 IDENTIFIED

1. ThLs service component would include water and sanitation master planning studLes and projectpreparatLon activities not yet identified ln datail.

Cost of Srvtices

2. The national budget included ln the project costs for such services is as follows:

Cost (Rs illion)Loel ForeL n Total

Local Consultant - 16 MH 0.5 - 0.5Foreign Consultant - - -

Vehicles, Equip_at _- _ _

TOTAL O

III. IACIA ADAAGMNT

6.91 FI---CL AC -O--T!C AND MAJIACGENT IlRORMNATION SYSTEMS (DEWSSB)

1. Tchnical assistance and training will be provided for the design and ImplementatLon of adouble-entry, ccrual-based finanLal accounting system Ln the DMWSSI. The system design will includepollcy formulation records design ad detailed proeadure proparation for the posting of all journals andledger accounts, with the *xception of subsidiary lodgers for oustamer receivables and stores inventorles.The three latter system would be designed and implemented vith technLeal assistaneo under separate terms ofreforene.

2. The systems and procedures will be deaLgned to provide bWSSB management monthly statements of: (1)financial position (Balance Sheet), (2) results of operations (Income and Expenditure Statement). (3)sources and applications of funds (Cash flow Statement) and (4) key indicators of both financial and opera-tional performance.

3. The systm and procedures will e docu_ented in a Financial Accounting and Management InformationMaHnul. This manual will be organlsed accordLng to general ledger accounts and selected accountingfunctions. For each account end function the manual will provide: (1) the related 8WSSB policy, and (2)detailed procedures coopriSing flow diagrams and step-by-stop procedures keyed to specific HWdSSB staffpositLons. The manual will be designed for perlodlc updating.

-109-

LNEEK 8Page 12 of 13

4 The accountin systsems and procedures will be des igned in accordance with gens rally accept-eaccounting prineLples. They also vill reflect sound systems of internal control, and will provide pwleteaudit trails.

S. Upon completion of the PLaiaeLl Accounting and Managemont Information Manual, relevant BISS5accounting staff Will be trained in the use of the systems and procedures. Using the manual as a basic textand working reference, the training vill consist of classroin sesaLons followed up by on-the-job assistance.In addition, basin finsacial analyrls traiLnng will be given to UHSSB engineering staff to enable them to

assess and use the information presented ln the onthly financial stat_ent.

Esti-mted Level of Effort - Design : 20 NM months- Implementation: 40 Man Months

Estimated Base Costs: Rs 2.30 iLliLon

6.92 PROJECT PLANNIG ASD C-)TROL SYST24S (3WSS3}

1. Tochnieal assistance snd trainLng will be provided for the deslgn and implementation of a PERT-basedproject planning and control system. The system will be mLero-computer based, using readily available andproven software. Concurrent with the installation of the systm, all project staff engineers will be givenclassroom training in project planning and control techniques, PERT networking techniques and basic micro-computer operations.

2. During the implementatLon of the system, technical assistance and on-the-job training vill beprovided to project superintending and executive engineers in the f^lloving key project managementfunctions:

(a) Developing project vork breakdown structures (WBS) to arrive at controllable work packages:

(b) Developing a project cost accounting system linked to the WBS;

(c) Developing PERT networks for controlling project schedules to be used as a basis for projectmonltoring, reporting and control:

(d) Selecting milestone wvents or the PERT networks to facilitate project reporting and controll

(e) Developing forms and procedures for monitoring project schedules, costs and technicalperformance;

(f) Updating PERT networks periodically and re-identifyLng critical path activitLes: and

(S) Preparing periodic progress reports, and assessing alternative courses of action to be takenby project engineers.

3. Under this technical assistance the consultants also vill refine the financial forecasting modelused in project appraisal, for use by the new HMWSSB finance manager. Assistance vill be given to thefinance manager in using the model for various financial planning purposes.

Estimated Level of Effort: 40 Man MonthsEstLmated Base Costs: Rs 1.30 million

6.93 REVENUE BILLING AND COLLECTION SYSTEMS (tWSSB)

1. Technical assistance and training will be provided in the d&sign and implementation of acomputerised revenue billing end collection system. It is expected that such a system will utilise two orthree micro-computers, and will make use of existing software systems to the extent feasible. Theeonsultant assistance vill include the following key activities.

(a) Develop general systems requirements based upon an analysis of existing customr records, andbilling and collection procedures.

(b) Design improved biling and collection procedures with sound internal controls and audittrailsl

(c) Research existing bilLing software packages, and select or modify one as required for use atBMWSSB.

(d) Documant a final billing arA collection system, including flow charts, step-by-stepprocedures, and manageimnt reporting formats nd procedures,

(e) Supervise the conversion of customer records to the nev systems. and

-110-

ANNEX 8Page 13 of 13

(f) Provide on-the-job traLnLng and technical assistance In the implementation and operation ofthe nev systems and procedures.

Estimated Level of Effort - Design: 21 Man Months- Implementatlon: 12 Man Months

EstLmated Base Cost - Local: Rs 0.90 million- Forelgn: US$ 39.000

6.94 MA MSRALS MANAGDHZYT AND SSCRS !NYSTY ACCOUNTING (ISSE)

1. Technical assistaene and trainLng will be provIded to strengthen materials Management and storeslnventory accountLng. A mLero-computer based accounting end control system vill be designed andimplemented. The overall system vill have two Interrelated sub-system s one for aLdLng In orderLng and

maintaining optia.- stock levels and one for accountLng for prices and quantities on a lne Item basls.

2. The ordering sub-system essentially wlll be capable of analyiLng needs requlremnts, historicalusage, stocks on hnd, purchase lead tLmes and acceptable stock-out rLsks. On the basis of this enslysis,thLs system would Automatically calculate recomnended order points and quantities. The accounting sub-system would maintaLn stock flles by storage location and line Item. For each Item, the file Will lncludeidentlflceatlon number, Item descrLptLon, and wlll stratify stocks on hand by unlt costs, It wlll adjustline Item quantities and costs on a first-Ln first-out basis, The system would be designed to be compatiblevith the HKWSSB general accountlng and works accountLng systems. Output reports will include stock levelsand costs by llne item.

3. The system also will use the ABC system of classifying stock items for purposes of physical controland perLodical counts. Accordingly, A items of high cost or critical nature will be subject to maximumcontrol and frequent counts: C ltems of small, low cost, high volume nature will be subject to mlniLumcontrol and rarely counted in details and R items would be the large majorLty of stocks subjected to normalcontrols and cycllc physLcal counts.

4. The ma crslIs management and inventory systems and procedures would be documented, and HMWSSB staffvould receive on-the-job training and asssxtance In their use.

Estimated Level of Effort: 30 Man MonthsEstimated Base Cost: Rs 0.90 million

ANNEX 9Page 1 of 4

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

Personnel Training - Costs - Comnonent 6

Background and Organizational Arrangements

1. The Government of Andhra Pradesh (GOAP) has, effective November 1,1989, established a Hyderabad Metropolitan Water Supply and Sewerage Board(HMWSSB). It has assumed the prior water supply responsibilities of HyderabadMetro Water Works (HMWW) and taken over the responsibility for sanitarysewerage services from the Municipal Corporation of Hyderabad (MCH), and willassume responsibility for the implementation of the low-cost sanitationprogram under the project. In summary then, HMWWSSB will be charged with thefollowing responsibilities:

(a) planning, design and construction of capital works for watersupply;

(b) planning, design and construction of capital works for sewerage;

(c) maintenance and operation of both water supply and seweragefacilities in the Hyderabad urban area;

(d) the collection of revenues for water supply and sewerageservices, the maintenance of 'commercial" accounts, and themaintenance of HMWSSB as a financially viable organization.

(e) the implementation of the low-cost sanitation program under thisproject.

2. Uwnder this arrangement, Hyderabad Metro Water Works' (HMWW's)prior organization has become part of HMWSSB; additional staff will be postedas required.

3. In addition to the agencies mentioned above, che Public HealthEngineering Department (PHED) is responsible for providing water supply andsanitation facilities to about 90 municipal corporations. Operation andmaintenance of these systems is handled by the local bodies in some instancesand otherwise by the Public Health Engineering Department (PHED) of theDepartment of Housing, Municipal Administration and Urban Development (DHMAUD)of GOAP.

4. Statewide there are about 3000 engineering staff in the water andsanitation sector with about 80% at junior levels. Of particular note, theprofessional engineering staff of both HMWWSSB and those in MCH who have beenconcerned with sewerage and drainage are PHED staff on secondment.

The Need for Training

5. In Andhra Pradesh, schemes for water supply have been completedcovering about 40 million people throughout the state. The investments

- 112 -

ANNEX 2Page 2 of 4

anticipated in GOAP's Seventh Plan 1985-90 alone are Rs 445 crores. The scaleof these investments, and the ever-growing requirement for cost-effectiveoperation and maintenance, warrant effort towards assisting all sector person-nel to attain their performance potential, with a view to optimizing thebenefit-cost relationship in sector endeavour. While educational institutionsprovide basic skills to permit career commencement, many skills need to beacquired through in-service training designed to complement on-the-jobexperience, and there is a need to maintain awareness of new technical andother developments which may affect work and the way it is done in the sector.

Linkages to Technical Assistance

6. There are important linkages between the technical assistanceoutlined in Annex 8 and the subject of training. Indeed, it is not the intentthat external advisors Odom all the work outlined for technical assistance.Rather, it is the intent that external advisors and some staff of HMWSSB willbe organized in task teams such that HMWWSSB staff have every opportunity todevelop the skills of the advisors, as well as having the responsibility ofimparting more detailed local knowledge and sensitivity to the issues beingaddressed in the particular technical assistance component. In some of theinstances of technical assistlace proposed, personnel training is the mainpurpose, but it is important in all of them.

Training Classifications

7. The nature of the training needs of particular personnel dependsupon both their basic skills (eg., engineering, accounting, plumbing, pumpingstation operation) and on their supervisory responsibilities in the managementhierarchy, for which specific management skills should be developed. However,basic orientation training for all personnel is most desirable, although itsnature may vary substantially with the basic skills of the individual and withthe extent of his supervisory re5oonsibility, if any.

The Present Training Situation in HMWWSSB

8. There is not a systematic strategy and ongoing practice related topersonznel training in either HMWWSSB nor in other sector agencies in AndhraPradesh. However, the need for such an approach is acknowledged by the seniormanagement of HMWWSSB and at the Stcte level in the DHMAUD.

Training Study

9. It is necessary to conduct a training study to evaluate thetraining needs, to assess the best way of meeting them, and to recommend asystematic approach to training and a detailed training program for HMWSSBpersonnel, and to estimate the costs.

10. This study will undertake a detailed review of the organizationand its staff complement by category, and prospective changes in thecomplement by staff category over the next 10 years, and the turnover rates bystaff category, and having regard to the training elements in the technicalassistance component of the project, assess the training and orientation needsof the various categories of officials and staff, not excluding the Board ofDirectors, if judged appropriate.

- 113 -

ANNEX 9Page 3 of 4

11. While it is conceived that the initial training program effortwill be launched in HKWSSB, and that adjustments may be made to the program onthe basis of initial lessons of experience, it is also conceived that theprogram may later be broadened to embrace, as appropriate, the training needsof other sector personnel in Andhra Pradesh. Accordingly, the training studyshall proceed with this broader future context in view.

12. The study will also assess management, technical finance andaccounting, artisan and sector operating training resources in Andhra Pradeshand in India, and assess the availability and adequacy and cost of using theseexisting training resources to meet the training needs, identified in thestudies described in paras 10 and 11. In particular this work includes areview of: (i) the training programs of the sector agencies in Madras, Bombayand Calcutta; (ii) the report of the 1985 ODA UK-financed study for the TamilNadu Water Supply and Drainage Board (TWAD); and (iii) WHO's 1984 "HuminResources Development Handbook - Guidelines for Ministries and AgenciesResponsible for Water Supply and Sanitation'. Two copies of this latterdocument shall be obtained and provided to HMWSSB to aid dialogue on thetraining subject as the study work proceeds.

13. The study will also consider 'in-house' training through bothinformal on-the-job training by the guidance of supervisors and more formaltraining in which senior and supervisory staff of HMWSSB or other sectoragencies may, by lecture and/or field visits or other methods, develop skillsin and impart knowledge to the less experienced staff.

14. The study will also assess the prospective utility of overseastraining on a selective basis for more senior management and technical person-nel by participation in international seminars on relevant topics, or by studytours or in-service work experience with foreign water and sewerage utilityorganizations, or otherwise. International and bilateral agencies, active inthe sector in India, should be consulted.

15. On the basis of the preceding assessments, the study woulddocument the findings and present recommendations in a draft report to besubmitted in six copies to HMWSSB. The recommendations would include trainingpolicy, linkages to general personnel policy, training strategy, and adetailed training program with cost estimates. Following presentation of thisdraft report, discussions with GOAP and HMWSSB, and the provision of commentson the draft, the final report would be prepared and submitted to HMWSSB intwenty five copies.

16. The training study outlined above (paras 9 to 15) will beundertaken by the staff of GOAP's DHMAUD and of HMWSSB. The time requirementfor the study, through to the preparation and submission of the final report,is estimated to be 9 months.

- 114 -

Page 4 of 4

Iterim Training Iudyets Under the Proiect

17. Pending completion of the studies described above, a notionalbudget of 1.44 of the estimated project base costs, or Rs 20 millior (aboutUSS 1.3 million), has becia provided in the project cost estimates.

- 115 -

Page 1 of 21

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

THE PROJECT DESCRIPTION - COSTS - SCHEDULES - PROCUREMENT

1. This annex first gives: Page

Summary of Costs by Project Component in Rs million ard US$ million 2Annual Project Expenditure Summary in Rs million and US$ million 3Annual Project Expenditure by Project Component in Rs million 4Summary of Costs by Procurement Mode in US$ million 5

2. This annex then gives implementation schedules and cost estimatesin Rs million for each Project Component as follows:

CostSchedule Estimate

CPT 1 Manjira III Stage 2 Page 6 Page 7CPT 2 Screngthen and Rehabilitate Ex. Water System 8 9CPT 3 Strengthen and Rehabilitate Ex. Sewerage System 10 11CPT 4 Low-Cost Sanitation 12 13CPT 5 Resettlement and Rehabilitation (R&R) - The Singur Dam 14 15CPT 6 Institutional Strengthening - TA and Training 16 17

3. This annex finally gives details of the costs of the project, bycontract, for each procurement made, in US$ million:

Goods ICB : Goods LCB : Turnkey Works ICB 18Works LCB (Part) 19Works LCB (Cont'd) 20Works by Force Account : Technical Assistance : Training : 21Employment Schemes under R&R : Engineering and Supervision : Land

- 116

A0NNEI1Page 2 of 21

SUMMARY OF COSTS BY PROJECT COMPONENT IN Rs KILLION AND USS MILLION

ur U 1P" 51 mU

km -b TM kw

rqm UW sm.q43 IM infTu - hum) fthsmlMt Rml, b IM . W

(U) (() (C) IC) IC) C m ((C) ( C m (C)

to %m _A 11.

gr "# -4- sin 13.329*301.1310 Uji U. U-rI 31.32 u.i w.s1U. I I 1;iarph UIII Iaw 3.f77 M .S 3LN iL43 77.t2 6.1 1.2 5 60.2 4 Li ! 72 .

ami t i1 ) sbwq'f- 13.1A MA* .L. 2 1 1. * 16 .M * .1 . 61.1 2 . 5. *.D

WIll rit ad tONl *4.97141. SA . * J 109.7 27. 17 I29 27 210. 13L 61.37.24*

O' 3 m q ~vs 312.3 0*.a .17 2 .l 0. 3 1.2 42.21 0.6 432.1 9.6 (E*I 0R.0 3p42

WI, LaO 9.0 L. _9 0a _.00 0. 11013 11t93.61lIWA 404.97146.9 12.11 5u 216.43 371.2 139.3 30.3 21051111 tA *44410 zm*

CM I EC fsmv l T ay is 2.X OA .1 0 I& . W L10. .1 to M.9 0. J3ftyr1c1 2m1 mE1 I*r 7.75 " 2 21 137 3 M.3 J - - - - 6- -t 2 u.Prxm C.tqi~in 371.20 139.231 .35

pow - lU U 1 1 Me * T a 0 U 644.14 23.7JIJN htiu 210.4 0.0 0. 04. .o1

--

la U hIl 011

M I Ibirs F%w III KW I 19.77 11.61 31.44 2.20 1.75 3.9) 1.97 2.36 4.32 4.t o:e 4WI 2 Itvq1 bh. Emig" jaq ta lats 16.41 Li? 24.3 2.11 1.24 3.23 2.10 2.3 5.10 2.44 3*L U.91 2.9WY 3 Stswqt0 M46* Euamti bwqp 9yst 19.A 3.03 22A 2.09 0.47 3.1U 2.62 0.76 3.31 4.5 21.2 4.24 32.3CPT 4 Lrcut Imtatim 2.34 0.30 2.34 0.24 0.00 0.5 0.3 0.6 0.24 0.21 Ll 3 .3 0. 3.10

WY S buttIint hiitjtiu 5.21 1.32 6.54 0.3 0.19 0."9 0.3 OXU 0.3' 0.24 7.07 143 L.2CP 6 WIttml Str u9 ?.U 1.3 31 0.2 0.10 0. 0.5 0.3 0.45 0.09 43 1.3 4.3

YAM (.KIva (1.) 64.42 2.33 91.7 1.3 3.75 12.13 1.6 5.9r 13.93 12._ 95A 3.43 13.0CM I I I~u NW 9*lwsiu 7.10 0.00 7.10 1.0 0.00 1.c 1.24 0.00 1.24 0.00 9.97 0.3 9.97CPT LAW 0.30 0.00 0.56 0.00 0.00 0.00 0.4 0.46 0.4 0.6 0.3 .0* 0.3

WLu. '4.4 A 5.2 9.9 9.3 3.5 ~13.13 9.31 ~5.931524 1.3 1603A 3t 16.44P9'71caCmtMq.caa 9.31 3.75 13.13 --- -Friac Cataaq.CA 9.31 5.93 15.24

575 W NM tA703 KRWIS 93.75 35.01, 12.34Tm, NW htzu 12.3 0.00 12.3

- POWY MP (01.3 35.01 16.64

- 117 -

ANNE 10Page 3 of 21

ANNUAL PROJECT EXPENDITUlRE SlJMMARY IN Rs MILLION AND USS MILLION

153 a w vAi 515 NO~ ASMIRATIOW PMT

c*u M1is kAn file hkum rap z r470.0517

MM CW!TIl EW1IrE AUK CWPITL EIIIIE(hoo llillio}) 1gw IUS 0ellar lilliol

(kt ofTa VW hutia) O0L Mid-Yr (bt of To ai htm) OL- PEIX EwJ"| POW1_ _ _ _ _ _ ~~- - __ NUll FY IC FC TOTAL I TOTAL TOTAL Ratse I FC TOTALI 2TOTM. TOTA.

0 1967/ 0.45 0.00 0.45 0.02 0.02 12.5 0.04 0.00 0.04 0.02 0.02I 19/ 0.61 0.01 0.6? 0.02 0.02 14.4 0.04 0.00 0.04 0.0, 0.022 1/90M 43.10 7.20 50.30 2.11 212 16.0 2.71 0.45 3.1& 2.52 2.513 19/ %.% M9. 11.55 4I 7,02 16.7 5.82 1.09 6.91 5.42 ,.914 1I91/M 411.95 lU.95 600.90 25.52 32.52 17.5 75.52 10.60 34.72 26.71 34.6151990/3 42.45 173.37 601.82 25.52 5B.02 18.2 2355 9.12 35.10 2.7 60.426 1993/94 3.15 110.52 490.67 20.82 78.82 19.0 19.97 5.82 25.79 20.12 6.527 199/ 250923s 1 151 9 9 12 71 20 1 1. 147 9t 2 99199/97 16.89 0.00 16.89 0.72 100.02 21.2 0.tO 0.00 0.tO 0.62 100.02

1715.66 6.10 2359.76 100.02 93.35 35.01 128.36 100.

Tax aw Dty 210.94 0.00 210.84 12.3 0.00 12.3

NMAIO CWITAL EXPDSITK MM CWITML EWiSlm(Rup Million) P_E (Us Dollar Millim)

(including Tax aNd utiu) mmIL Mid-Yr (Includirq Tx aia1utiK) Cli-I. Excp P

lOlWIFY lC FC TOTA S T0L TOTIL Rate LC FC TUL I TO1TL TOTAT

0 1967/U 0.51 0.00 0.51 0.02 0.02 12.5 0.05 0.00 0.05 0.02 0.02I 1968/19 0.68 0.01 0.69 0.02 0.02 14.4 0.05 0.00 0.05 0.02 0.122 1"9/90 48.40 7.20 55.60 2.22 2.22 16.0 3.07 0.45 3.52 2.52 2.623 1990/91 109.U 19.59 127.47 5.02 7.21 16.7 6.59 1.09 7.68 5.52 8.024 191/92 462.51 8 1.95 651.53 25.3 32. 17.5 26.61 10.92 37.43 26.62 34.625 1990/93 481.0 173.37 654.45 25.51 56.02 19.2 '6.61 9.52 36.13 25.72 60.3261993/4 426.87 110.52 537.39 20.91 78.92 19.0 22.60 5.82 28.42 20.22 80.5Z71994M 21.53 121.83 403.36 15.72 94.62 19.8 14.38 6.16 20.54 14.62 95.219 195/96 97,00 23.63 120.63 4.7l 99.32 20.5 4.76 1.15 5.91 4.22 99.429 1996/97 19.97 0.00 18.97 0.72 100.02 21.2 0.91 0.00 0.91 0.62 100.02

' = _2 _ = _= 2

1926.50 644.10 2570.60 100.02 105.63 35.01 140.64 100.02

l ~ ~ ~ ==

(InI : iff1D m7ii gmv as SmrITAIm PPwrCIESAAEI CO0ST7S AY YE AR I IC I U I 16 PHYIS ICEA LSUET OF NMf EWIUIIISA WCOIPUMNT PhsCal Cuttioqay .

V-15!f ulds costs usalatuo, Rates -- , 170 I.CT7 1.011 1.073 1.091 1.07 1.072 1.061CM1 NE 1M Ps MILLIMI WA COISTS AMI As 16.00 (581.00 -10!I' of urs costs Escalation factors -- 0.8412, 0.04 0.2.18 0.722 1.020 1.018 (.099 1.0

EdCMLNS idisk 470 fLie 4vanewri.tAt - 02 ani Laid E7chmWq Rates RsUSO1-- i2.; 14.4 16.0 16.7rays:. cptamlt qA3,6.a403; cpt,mrt as366.t403;

Taxes ad v LA 0S A RE I NPIIA F I SC ALRose tosts we in Buttes linescalatfi ------Octl,IlS9 Prices an kw Costs plus YEAF 0 9E181I EM? 2VW33

I4t of Tax"NWDhtieu!she Cost PhyIcaltomtonqemy Physical toltioqiscy 1 907 I 1 9 80 1 58 0 1 i9 09 1 9809 /19 90 9 90 1I9 9 1

it Ft TOT1. Ik mtlILE Ft TOTAL LE FE TOTAL Lt Ft TV-AL Lt I TOAL it Ft TOfiL. iC FE VWl_______________________ I~~~~~~~~~c) (E) (E) (C) (El (CI It) IC) IC) lCI (CI ILl iCI (I IEl IC) 1 IL IC: (it IC) (El (cI IC) ic)

CPT I Nm;ora Plies III Staqe I 316.04 196.7? 7502.91 9 44.27 12 35.40 M9.D 63.40 3151.44 214.1?7 566.21 0.00 0.00 0.00 (1.00 ('), 0.00 0.00 0.00 0.00 19.62 2.36 21.910PT 2 S"thmqtu firbal. E.xiting Hater System 262.05 130.80 39.85 9 36.25 14 34.20 19.651 53.91 296.25 1%0.41 046.66 0. 000~ l.30O 0.00 51.0 0 .)) 0.00 4.00 0.00 2.90 1.94 4.90CPT 3 Strengthen 0,6. Existing Seiai'e System 3,17.69 49.34 3267.03 14 49.59 14 42.9? 7.41 53. 38 2 60.66 56.25 411.41 0.0 (, A~.j 0.001 0.00 Z3( 00 ¶. 60 0.00 0.00 0.00 3.66 0.00 3.06

CPI 6 Institutioasl Strerqthenisg 04.73 17.15 61.00 2 D61.2 0 4.49 1.72 6.21 4P.2 10.8 60.09 ). 45 6M.06 0.45 .l ~ 1 6 .62 0.62 0.04 0.66 10.57 3.64 14.21

1IMAL lExcludang Laidi 1061.61 400.97 1466.50 10 144.92 13 134.47, 59.80 194.35 1196.5E 404.0 1060.92 1.45 0.0 A.4 (.61 0.01 (o.62 29.31 7.20 36.53 94.9 14.59 (03.56tIP a Engineeing aid Suwvrisi,on 123.90 0. 00 122.90 0 0.01) 1 3 16.20 0.00 16.29 139.19 0.06 179.18 4.0c,0 vk.0' ',.00 0.7'.' OM06 4.50 0.00 4.50 11.99 0.M (1.9"UIT Lad 9. 10 0.00 9.10 0 0.(,) 0 '. .0 w U.00 5.10 03'! 9.10 0.0 6 .~:. 2.0 0.1)) 6.00 M,.a'? 9.2 0.00 9.217 0.00 0.00 0.00t

1071t MEEIT 4 11 S NILIL 13 1193.61 404.97 159.59 9 144.93 13 150.7 5 59.00 210.6.3 1344.36 464.815 109M.2! 0.45 6A .45 0.61 Ml0 0.63 47.16 7.20 50.30 9.6 1.9115.55

F¶A9I TOTL WMil -: 0.0 M 0.02 0.0! 0.0! 0.02 0.02 2.51 1.11 2.11 5.71 2.92 4.92MlfAT1M - 0.01 0.01 0.01 0.02 ('-f2 0.0 M. 2.52 1.12 2.11 8.21 4.02 7.0!

91171. P00U IN (ME MfIS OIlaim 74.66 25.77 99.99 lO 9.72 I-" 9.8 3.75 13.12 04.07 29.07 113.14 A.4 (l 0.04M 0.04 0.M 0.04 2.71 0.45 3. 10 5.62 1.1 6.91

AA P R I CE COMTIN6ENCIES AMNAD ME I OF D TIlES AA D I TA I S-- - ------- !a ) 'alC.'oIm phfsKial i

1.070 1.044 1.669 1.044 1.006 1.044 1.065 1.044 1.064 1.044 1.061 1.9044 pd!rice cinito ieis1.176 1.147 1.259 1.197 1.1113 1.250 1.430 1.305 1.3,23 1.363 1.618 1.423 E tLn

17.5 16.2 19.0 19.9 20.5 21.2

YE A RS : APRI L IST TO MAP CM 11ST----- - ------------- ~~~~~~Total Esuilataio Costs Yaxai Total Exalatui Casts

VW34 VW 5 VIM 6 VW 7VW539 YEAR9 uxc lalrn aidoncuiiqIq991 119 9 2 1 9 92/i19 93 19 9 3 /19 94 1 99 4 / 19 9 5 195/i199 6 19 9 6/ 19 9 7 Pls1CM AutknqINY Duaties Paice Canti~ron Iain mdhltia

iC FE 9011. it Ft TO0AL LE FC 19(11 LC FC TOTAL it Ft TOTI. 1.: FC TOTAL it Ol 11111 i LC FC TO11L iC Ft hAl.

199.16 (28.10 M3262 161.10 M2.. 0.44 05.84 31.10 26.94 4.10 0.8 4.92 0.00 0.00 0.001 0.09 0.00 0.0(M 420.82 23~. 72 712'.4 621.29 77..U 8.95 146.33 491.11 M3.72 774.02lI ~~ ll:~~ '~9 q ~ ~ 5:9141 142:g 103:? 245.4 59.77le 24 77 01I453 0.00 14.53 406.922P. 57 63E.48 54.21 110.66 70:16 1111:612 401L12 2:.51 41969 CM9 2114 9.00 11.46 15.46 0.00 15.46 13.09 010 13.09 6.07 0.00 6.0,7 0.00 0.0f0 o.06' 0.00 0.00, 0.00 53.05 6.00 51.05 4.70 10.68 0.0) 110.61 57.75 0.00 57.75 CP 4

33.1.9 9.59 45.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0'- 0.,P 0. f., 0.00 105.17 27.39 133.16 13.10 9.631 3.34 12.97 118.37 27.39 146.26 (PT 20.13 8.56 29.69 14.97 6.7 2MAY) 6.34 3.55 9.89 5.92) 2.2 8. 12 0.00 0.00 0.00 0.00 0.01) 0.06 59.59 24.85 34.44 1.56 (0.37 5.98 16.35 01.15 24.85 0.400' CP

346.69 (010.95 557.64 185.49 173.37 559.85 344.61 110.52 455.13 220.91 VIM.8 342.74 74.44 23.63 98.0i (4.53 ('.00 14.53 (54.00 6,44.10 2L68. i0 210.04 327.92 (79.25 507.17 1734.84 044.10 73191.94 30.43.20 0.00 43.20 42.99 0.A 42.99 !5.54 0.09 7.5 29.01 0.00 29.81. 11.94 0.00 11.94 2. 30 0.00 2.36 182.39 I* L082.39 0.00 43.21 0.00 43.21 1112.39 0.00 10.39 tIPS80.00 0.00 0.00 0.M 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 M000 9.27 0.0 9.27 0.00 0.17 v.W'0 0.17 9.27 0.00 9.27 CPT 9

411.95 100.95 6M.96 470.47 (73.27 601.84 38.I15 (10.52 490.67 250.721 121.83 372.55 86.38 223.63 ((0.01 16.05 0.00 16.09 (75.66 $4.10 2359.76 110.911 3'1. 30 179.25 510.55 1926.50 644.1 2510.0 TIML. R0%

24.02 29 32 5.5! 2.0 26.92 K~.St 22.22 17.22 20.91 14.6 18.92 15.82 5.02 9.0! 6.32 (.02 0.02 0.72 632.2! 33.32 321.52 57.22 66.22 580.9 79.4! 77.41 78.02 94.02 96.3 94.61 99.02 105.32 200.9 ( Z00.02 105.3!1 101.61

at a =- == - -a t - t= t a t a t ~=223.52 51.00 34.32 271.50 Q52' 33.10 19.97 5.02 215.79 12.71 6.16 (9.87 4.21 1.15 5.36 0.00 0.00 0.00 93.37 3490 128.36 !2.29 9.I 5.93 15.24 105.63 31.01 140.64 TOT MB

IMIA: H ERM WATER Sf?Y AD SITTATIE PlOOIJECT

!W11 OF COTS BY PROINT NWk

COSTS NE IN US DIIMS nILLI : MSE STS ASI( Rs 16.00 x U;l1.00

cdcoLzens Mdisk kaypro file hyprocus.kl rap paq5

Bawe Costs net ot Taxes Total Esxalted Castsad Duties Taxm lncluiiq Contiapuaes

(IOctober 1, 1909 Prices) Physical Continmncies Price Cmtinqmncies Wd Tas and Dutes

No of -6ties - _

Contracts PRMD P MODE LE FC TOTPL IC FC TOTIL IC FE TOTAL iC UC C TOMAL~= =-S =Sa

17 TOTL 60005G C 10.16 9.90 1.96 1.49 1.49 2.99 1.39 2.79 4,17 3.26 16.30 14.07 30.37

6 TOTAL GM0 LCO 0.24 0.05 0.29 0.04 0.01 0.05 0.02 0.02 0.04 0.04 0.34 0.08 0.42

SJUTOTAL G00M5 10.40 9.95 20.25 1.53 1.50 3.03 1.41 2.90 4,21 3.30 16.64 14.15 30.79ALL(L 9G 0.46 0.49 0.94 0.08 0.07 0.15 0.0? 0.14 (.21 0.20 0.81 0.69 1.50

NET BY B1DDIMB 9." 9.37 19.31 1.45 1.43 2.08 1.34 2.66 4.00 3.10 15.93 13.46 29.29

I TOTAL 1IJIEY IEB 1.62 0.29 1.90 0.17 0.04 0.21 0.17 0.05 0.22 0.23 2.19 0.37 2.56

92 TOTAL WOKS LCB 49.07 13.72 62.79 6.03 2.06 8.09 6.01 2.83 84 8.50 6.61 16.61 *.22

2 TOTAL IIIS BY OEPT + FORCE AIUT 1.84 0.23 2.07 0.25 0.03 0.28 0.14 0.02 0.16 0.16 2.39 0.28 2.67

18 TOTAL TEWOICAL ASSISITANE 1.E 0.76 2.64 0.19 0.07 0.26 0.13 0.11 0.24 0.10 2.30 O.94 3.24

n/a TOTPL TRAINIGi 0.94 0.31 1.25 0.09 0.03 0.12 0.13 0.09 0.21 0.00 1.16 0.42 1.59

n/a TOIPL EMtOYMENT SflES 0.68 0.17 0.95 0.11 0.02 0.13 0.02 0.03 0.05 0.00 0.31 0.22 1.03

n/a TOTAL EN6INEERING U SAN 'ERYISION 7.69 0.00 7.69 1.00 0.00 1.00 1.29 0.00 1.29 0.00 9.97 0.00 9.97

nla TOTAL LAND 0.56 0.00 0.56 0.00 0.00 0.00 0.02 0.00 0.02 0.00 0.58 0.00 0.59= _ __ ___ === = = =X= _sm _s

136 OM TUTAL 74.67 25.32 99.99 9.37 3.75 13.12 9.32 S.92 15.24 12.29 105.65 34.9 140.64_ - __ __-__ == = __ = = _ - w _ s S _ _= .

I-'~ ~

ANNEX 10

-120 - Page 6 of 21

SCHEDULE - MANJIRA III STAGE 2 - COMPONENT I

W l ,_,~~~~~~..*...........

*1 -. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~6

E _ -. ,.I -- ' .Bt t W t t_~~~~~~a - t Sttt -, w t -

i 5 ~ _..:~~-~~ ~-

Fl 5- : _o . , .-..t._3,6t,-. _t _ t- _ '

*~ ~~~~~~ - - S - ,t._t.j_tt ' t

IU3 } -- >- -t tn .gt Ck 2". ~.la I I t

s *'usF 4 . . , E Tal -itt r El U1M It1

afii; , - l- 'i-i«'i'}X'XX-.......... ......... ... --------

s F b t n ''' - '' - '- --------------------- - -- ----

-t F ' we--- --.-

-_n_ W _------ -----*& -

------------------------

I i 1 } _- it gi > F'§ . x -j k~~~~~J - -f2 i. ~ -e S e t

8 - 1 ± - i I v

I 1a FU

_ I t ;P! jj c e o! l S E rc E ! S ~f r-e 4 ~ l e ° gI

a[ff4twm win SMY No SMITATIOI PROCT W s 0 L Local titive DiddingDewtmtsl D 0 Depirtmpn W"inq or Fwte kcamtCMPOW I : TNE NJUIM MM III STW 2 SDM Enginwing *W Sup n t T Ccpsultait Pfrical CmtirWK-.LaW t

-151 of ocim& rwiOM MF M k RUM OU CMTS ASRW Ps th.'k) r wfl.fq) Turrkey Tt -I-'YZ of swis cnslsRIR Yraining S

01 Lo Land(C) IS CALCILATED

Po Tans Tolit com

ot Daw rmts are in Oct 1 1%9 Prices aw (Inc[ Phys. SW Price

t of014-0 OR Slices INP i Tim NW kit.es) PMical Contir4mv Pricip ContimmLoq Outin Cotuq. Tax I DutimiCmt FPO TO LEWIN fkm)(Mrfumsl PIPE MT'L GOMW Struct pro or ---------- -------------------- ---------- - - -- -- -----------

lb (Structure) (1110 (CaWjtvp ("aterial) I Total WI la heal I Arm �2 post Cmtr. Goods Works LE FE MTAI LE i, 01k LC FC IDTOL LC LC FC 7MAL(1) (1) ill (1) (E) 11) lEi (E) (El 1) 11) Ill 11) IC) it) iEl (E) I'll fcl (C) IC) (C) lci (Cl1.01 Sg PWdaFw 26 km 2MO.es XI aW Liv prr 4 N L 9' 3. 36 47. 40 09.73 27.03 115.76 14-19 M-5 la.14 27.77 9.% 17.68 18.22 IV.% 41.04 7M.

(W d ni for Pipplifw in Cant. No I f.1 , t

1.01, SP- &3m mid 55* pre 2 V L 0.00 11. III 11.38 O.M 11.111 IM f. (W) 1.14 22.62 0.00 2.62 0.11111 16.02 0.00 16.02ffil ll'oddipir) 1150 Nld) pre I tV 1 7.56 1.8D 25.93 4.43 30.36 2.75 t'.46 i-41 1.73 0.50 3.39 3.91, 6.82 45.74

1.01

1 6.851.04 ICIVit RosIfFoddepur) 113.6 MI I imil pre I 0 L (,.gB -i.64 9.62 fi. r* 9. 1.01 (,. li". !.01 �.45 0.00 2.4% 1.17 14.25 0.00 14.25LaW Acquisition for Poddapmr PK�Tlinq Plant 2.43 hd. Na - L D - - -0. I I O. fio 4.14 Ofy %th 0.01; 0.00 0.00 0.0k) 0.00 0.14 0.00 0.141.05 (Pump-Notl(PoOdwr) (42 M!dl 16 No PumpIII'M hp) (1'�5 *I Pr I 6 1 14.10 (. Ofl 6.5d, 7 78 14-18 g, 1.17 '. 14 I 1.68 2.16 4.54 3.06 1.2.19 11.81 24.001.06 1AirV#%seII(P�dd*r)

pre I G 1 1.54 (.47 4.01 0.00 4.01 o. -.36 ).% mr) c..% o. r. &.37 mo ix1.07 lW t'n) (Peddaldir) (5110K 1 701 post I V L Om I. 54 3.4 0.00 -54 MA) A.!5 0.61 0. V) t.01 0.26 4.% 0.00 4.%1.4111 Pedd*v slnw le ke 10 a W. Lintrig aW tay pre 2 N L 0.0f) 4' .71 14. SI 2Q..!0 43.'I 4.18 4. ',� ' .37, 10.93 14.Z6 7.95 21.79 44.51 70.3DI.-19 Sir4w Ljnqmpllv,6 km 12M m PSE Suppiv and La) ort- 1 V L 74.7, 9. 6' I.St Q. 77 84.35 21. 7S 9.4-. 1,17 5.47 233. 13 18.6o) 12.82 42.60 95. �'4 137 941.10 (11psemirDamnswar L2 Ml (PM) pre I 0 L '. 59 �. 4i 6.03 OM 6.11' , 0.73 ) -1. uO 0.73 I.% Q.00 I.% 1.45 1.57 0.00 9,571.11 Shaikprt jahanumm 13 km ION m Tollebterb'dSupply oW liv p(p 2 0 L 4B. 59 11-11 9. 7-1, 50.15 S9.117 A.90 7.s-, a. 4, 7.44 18.79 21.23 6.10 19.16 76.46 95.62IX itrLdrI P. Ani in contract I 11 - 'r 160 s pre I 0 L 00, -'I ,."I M* MI 1) 22 O. �k ". m (,.F o.00 0.53 0.17 1.13 0.00 3.131.13 (Newmir I (Jaharmul 3.6 N RC I pre I W L 6.70 I.,,,l 1.01 O. (* I.il u.r C. Vt ). 7i 0.44 (1.00 0.44 0.36 2.83 0.00 2.11111.14 fiCrm Brainap W s: SingW to Lingapily ad to Jahmuwi fNm 10 N L MO B.," 8.27 O.M 11.27 5.83 0.00 0.93 I.Wj 0.00 1.90 0.63 11.63 0.00 11.6i1.15 A h*:PM. to Sing. at Yediumailaram-, Sing.ta Dumns. ow Sirq.) n" , 0 L -1.(0 9. i2 q. 4' 0.00 9.42 0.94 4.00 O." '. 17 0.00 2.17 0.00 12.53 0.00 12.53 1

1.16 (Service PaMs 109.97 is. iGprov't-in ww casn 4ptil I 9 aW isphilt'ql raw 7o V MA F.49 27.48 0.00 77.49 2.15 0.00 -. 7% 1.22 0.00 6.22 0.00 36.43 0.00 36.451.17 (Staff llu-174 tkiits.-Cmt Rm Stores Offirv-Come'l Wall-I'mKine0il: nont, V, N L �. 0f, 23.47 2' , 47, 0.00 23.47 2.!5 t.01) '. 35 5.32 0.00 5.32 1.82 32.% 0.00 32ALaW kqiiisitim for Staff Qwters 17.57 la I D 3.27 0. (0) 3.27 0.00 0.4- 0.00 0.07 (1.00 0.07 0.00 3.311 0.00 3.341.19 Lmkiapirq ad Ptstoyaois none 2 V L OAKI 1.88 1.98 0.00 1.88 0.19 0.011 0.19 0.45 0.00 0.45 0.00 2.52 0.00 2.521.19 Telephw Lim by FST : 53 ke now I D 0 0. -)j 9.07 9.07 0.00 9.117 0.9; 0.00 0.91 1.17 0.00 2.17 0.00 12.15 6.6D 12.151. 70 Bult FloN lbtin - 14 lb : Sim 450 a to M a pre I 6 I .I 0.43 1.91 1. 80 3.71 0.27 0.27 6,54 0.32 0.44 0.76 U6 3.16 2.51 5.671.21 Laboratory Equi t at Peddaw nww I 6 1 2.89 2.06 US 2.139 0.31 0.!2 0 43 0.63 0.35 0.11111 0.67 3.0 1. 30 4.97IM

pre 6 1 9.69 U10 6.93 2.76 9.69 1.04 O.il 1 �45 1.34 0. 76 2.10 2.06 11.37 3.91 15.30-=z-

- f = 2===== -Zx

-

--

.-- -

-- -

--

UMTk MM (Excludifq Land) 124 262.'& '4A. 55 1,16.04 106.77 502.81 A4 21.00 V.40 77.31 66.95 1,14.33 4L29 411.11 M.72 TNAS8.01 Emlinwirq aiW Swpwvisicm

37.71 0.00 V.71 413 0.4 4.M 11.20 0.111 11.20 0.00 U." 0.0 M."9.01 Led

3.41 0.00 3.41 0.00 0.00 0.00 0.07 0.00 0.17 0.00 5.41 0.40 3.41Tgtft Mm. MM iiwi I 35-1.16 106.77 543M 31,93 21.00 67,93 0.65 60.95 ISMO 62.29 $6.03 M.72 61.75

010%

- 122 - Page 8 of 21

SCHEDULE - STRENGTHEN AND REHABILITATE EXISTING WATER SYSTE- COMPONENT 2

. .-, ... . . . .. .. ..

* e - _ o -, ~~~~~~. .. . ._ . ... ... ., . . . . . . ., ., . .. . . . . . -. . .

- - o O; ~.. ... .. . ... .... ........... ..................... ...................................

,, o -_ ~.. b.. ............... ..................... ............... ............... .... ...._ _ , ~~~.. , .. .. . .. . ... .... ......

s : - : - ~~---------- ---------- -------------- -

* q - S - -I

i~~~~~~~~~~~~~~~~~~~~~J fi - -*^s fi e ~ i----

- -. v i - , w _, - - @ - ---_ $ --t vff MO$ V!,ti t a

t~~~~~~~~~~~~~~~~~~~~........ .......... -------;itg gjt §gjfi

O r,~~~~~~~~~ §~~~~~- E~ j E .o I aa fi

h~~~~~ I 3 ooJbXQXlXl

io | ~ ~ _ m : _ > ~ .. . ........ ........

_ n _ ,= e . ~~~~~~....... .... ......... ......... ..... .-

~ ... . . . . . . . ..

:Z u;I.. ....... ....... ...... ...... ... ..

,,_ _I - - - , .. - - - -

.~~

Il~~~~~~~~I_~ ~ ~~~~3 a . .,, .. .: . . . . . . .: .:: .::: .::, . .. .

' F v! 2 -, - i ls i

-°. I: b-- . _ 2 n ! _

~~~~~to # JI li- t{ IIj8 C- i e. ;-

fi~~~~~~ i - F ~gt^&'a1}4j gi"}^ %zSl-

4~~~~~ -l 1oc¢s_F - rt s frju**4 4_4_sterrr

49100006ATE6 8191 NO Y127AT290 P3OI

tIIYXll 2 : RINL1141u111 IS SlT8lEU1l6B OF £11STING WATER 33ST1N Gomk 6 I Initernational Cowlitive htddiniVN*O U L Lhal Cointitive B10di00

OMSIS NEO0Rs MLLI0N: M ES3S AM81 Rs 16.00 lS0IM0 Departmfntal I D Departamotal 9uiino or Force kcmamtEngineering aid Siin F T Casultait Physical (vmtvqLovv

fli. Its range: C3129.3 faX90adW) Land L. L Local Cioltitive Biddinq -150 of g9006 cosf~

RN4 lraininq S 00e LandTA-Traininq T

IN COLU3 NM90 : (El IS DOM61IC) IS CLOLAlEDl la lam. 100t&ODTS

of IV 109 Sien Costs Are to art I 1909 Priieo and (lio! Pbys. ad OnceDi"- U.A Slices 6 I (Net of Taxtes aid IlDtos I Ptlrsical CGtLF0~.,Wriv Prlce C.tinqKIaM hUtIai Ctwifi. liz 11 WitM)

Cu FMI TO LBET Iksl(ND-40psi PIPE 9T'L ff&191W Stnrct preor N L .------ __

lb lStrKlxr,( (At)( L;aparityl iliataiall (total 4P)(a. hwOl) kAr .2 post Cotl. D0 Goouds NDl:s It FE TOTAL LIt FE VIA'. LC Ft T)294 LE LE Ft 711911(ElI(El 1£) IF) (El (El (El (E)lu IF) (El (El() (El IEI (Cl (El (E) (LI (El (C. iCl (Cl (Cl (Cl (Cl (Cl (Cl

2.01 G.lcWda Rt lbjatta 2.5 k. 600 - CI Lav now I V L 0.00 0.40 0.40 0.00 0.40 0.04 0).) 03ij. 0.12 0.00 0.12 0.00 0.5b 0.00 0.56,.P2 baoara Jubil 9. 1.0 is 600.a El Lav rehe I U L 0.00 0.21 0.21 0.0 0.77 ,.o: v.04 0.0 0.1 (1.00 0.6 0.00 0.20 0.00 .3.28,.03 246i).S Juiihl.lrs 3.0 km 90O C l LAY nowe I 0 L 0.00 1.59? 1.59 0.00 1.59 1.16 ).OQ 0.16 0.35 0.00 0.55 0.00 2.30 0.00 2.302.04 0mpla Or dAaia 5.5 kg 600 E l Law owe I U L 0.00 1.49 1.49 D.00, 1.49 0.15 o.00 t. 15 0.49 0.00 0.49 0.00 2.13 0.00 2.1.32.05 9612l IS la,n9iaakpwt 0.5 km 450.a El Lay raw I U L. 0.00 0.09 0.09 0.00 0.49 ('.01 0.4u6 U.01 0.02 0.00 0.02 0.00 0.12 0.00 0.122.06 Ctrl lb hredpally 1.60 ra 700.o Cl Lay rawe 1 U 1 0.00 0.30 0.30 0.00 0.30 0.06 0.00 0.06 0.11 0.00 0.17 0.00 Oil1 0.00 0512.07 Crli lb hatlC lbs 1.78 km 700. a CI Lay foe I 0 L. 0.00 0.61 0.61 0.00 0.61 0.06 0.00Y ('.0 0.19s 0.00 0. 18 0.00 0.15 0.00 'u.S2.06 TwO N bud lzint 4.63 km 600. a cl Lao FM" 1 0 L 0.00 1.26 1.26 0.00 1.26 0.13, 0.00 0 I' 0.42 0.00 0.42 0.00 1.81 0.00 1.312.09 lank ba 0arayauqia.7 I I 400.a CI La amI I I 0.DD 0.30B 0.38 0.00 0.30 l.04 3.0'.' 11.(0 u.12 0.00 0.12 0.00 0.54 0.00 0.542.10 9jly of materials for 2.01 tInu 2.09 ClVlalves4itlhnqs prto 1 6 1 54.91 0.0 39.08 15.09 54.91 5.6? 2.36 6 25 11.07 6.34 11.41 13.30 69.35 24.61 93.9162.1 8a,ixa/SaAh I lbs)Wlbls1ls 6.2k&-I0(I* 3.Srae-90 Suvl ad Lay r I I L I122 2.56 2.15 10.13 20.-8 .1.1Il 2J.73 2.91 0.70 8.83 9.13 3.44 4.48 BA.N U t2.12 (11eoosir)Pralashm.q. 3.0 HII AM PMo I U I 0.12 0.90 1. 60 0.00 1.60 U.20 0.M" G. Xi 0.56 0.00 0.5 0.13 2.14 0.00 2.542.13 (lbwsemrflksaonsa. 6.0 RII RCE pre I U L 1.43, 1.16 3.19 0.00 3.19 13.3 0.0 0.34 1.15s 0.00 1.15 0.30 5.019 0.00 5.49LOWd kqisuition for 2.13 0.15 Ila n/a n/a L D - - 0.03 o.0 0.03 0.0o 0.M 40 IV 0.00 0.00 0.00 0.00 0.60.3 0.00 0.032.10 (Asrvonor)hjmputt.a 13.01 NI P pre I U L 3.06 3.91 6.99 0O10 6.99 5.0 2. 0 0.95b 1.13 0.00 1.03 0.65 10I.32 0.00 10.32LaW kqisiititn for' 2.14 1.00 h n/a n/a L II - - 0.19 u.00 0.19 0.00 0.00 O.OD 0.00 0.00 0.00 0.00 0.19 0.00 0.192.15 (Fburseir(Mulfle 10.00 WI A pro I W L 2.19 2.92 5.11 0.00 5.11 li.62 0.011 0.62 1.74 0.00 .1.4 0.87 8.34 0.00 8.34Lad kpiuxisitinpfo 2.15; 0.00 ha nla n/a L D - - 0.15 0.00 0.15 0.00) 0.00) M.D 0.00 0.00 0.00 0.00 0.25 0.00 0.15 -2.16I (tln) Pt*alleas . 7.15 Old Civil 4Work now I I I 0.A 0.69 ('.69 0.00 0,69 0.'. 00 f! (,f7 0.24 0.00 0.24 0.00 2.00 0.00 2.00 1.2.17 IPSn) Prakaisg. 1.15 Old 3 lb Pump 65 lhp ci 25. a had pre I 6 1 0.76 0.00 0.16 ('.Ou 0.16 0.11 *,.0 ' 1.1l 0.22 0.00 0.32 0.24 1.33 0.00 1.332.181 ( tn) Nisainsal.20.70 Olid Civil bttri now I U L 0.00 0.69 0.69 0.00 0.69 DM.0 1,00 0.07 0.24 0.00 0.24 0.00 2.00 0.00 1.002.19I -PtIlAala.07 l bP~20lpc 5 ed po 16 I 22 (.00 -2.22 0.00 2.22 C. 33 0.00 0.22 0.4 0.00 0.446 0.41 3.412 0.00 3.172.24 9I a J,dii1 350 OdCvi rI o 1 4 L 0.00 2.32 1.32 0.00 1.32 5.13 0.00 Q.i3 0.44 0.00 0.44 0.00 1JA9 0.00 1.P92.22 9W1n Mil.. 3.0Od5l 6q20lpo 0a a pre 1 6 1 4.04 0.00 4.04 0.00 0.04 0.73 0.010 1.7 1.47 0.00) 1.47 1.19V 8.23 0.M 1.232.22Lia rib.ht,o Stwlwuja Bpain edigCes-1I pr 1 6 I 136.65 0.00 61.20 15.55 136.65 Q.17 21.22 20.0 29.34 51.73 81.07 20.37 109R.11 130.61 261.592.23toa Distaiti.Srqtnn dRpac) ekn at- now I a L 0.00 %683 56063 0.00 56.83 5.60( 0.00 5.68 29.04 0.00 29.00 0.00 92.35 0.00 92.352.20 Dtr IuligEtwi dlrn. tOartbd pro I U L 3.84 5.76 7.60 1.92 9.60 lii6 0.29 i.:5 1.26 1.21 4.47 0.00 21.100 3.421 15.222.25 tooI N IU1E3IIaS5l n/a - - 0.00 0.00 0.00 0.00 0.00 C.00 0.00 0.00 0.00 0.00) 0.00 0.00 0.00 0.00 0.002.26 lkFo tr - 48 lb Sime 225. to 2400 mand Miter Lev. Indic's pre I 6 1 10.69 2.00 6.54 5.95 12.49 0.1,0 0.09 ;-.1(1 .72 1.61 2.83 1.4.5 10.30 8.45 28.752.27 Leak bI'n Epipt - Pipt Locn Erip't (Iltails to be aswessed ixide IAI prt I 6 1 0.52 I.i6 1.10 Q.00 1.68 '.19 0.00 0.i5 u.31 0.00 C.3 0.73 2.00 0.0 2.882.39 IAmalid II .5 km 1510 uU5l fi ia,r-plIA 1. exo )GMD pro I I 1 29..) 0.M 16.17123.36 29.11 i4l 2.00 4.4i 7.20 8.44 15.64 13.0P 39.00 23.110 63.492.29 Ramadmi. NE1 4.5 km 1570.OD (PSE ainj Phil OainlUWS pre I I 1 0.06 6.26 6.26 0. 92 6.26 0.63 0.00 2.5 A, .775 0.00 2.75 0.01) 9.64 0.40 9.642.30 14.1S (ffr 2 29 621100. a d IV a OuiNj Phi min20l05001f?00 1(501 pre I 6 L 1.37 0.00 1.31 0.0 2m .317 A.2, 0.00 0.12? 1.42 0.00 0.42 0.10 2.20 0.00 2.102.32 ArtalIing Vli2 alop raji FM1 rain 12.2 km nowe I U L I) E LI El El 0.00 0.0& 0.0 0 .00 0.00 0.00 0.01) 0.00 0.00 0.002.32 Oneaa uflg'150k 00 Crp.osr.eahq aqiadoti PMo I U L 40(10 (188111: EBIW 0.00. 0.00 u.111 0.00 0.00 0.00 0.00 0.00 0.00 0.002.9 X0sroi)a3 7"02 IIEo120 inadeilutel pre 1 I L 1.68 2.10 3.18 0.00 3.70 0.46 0.00 0. 41 1.19 0.00 2.19 0.3 4.41 0.00 6.422.34 0.oiaw 1l Ptadmu(pre 1 6 L 0.55 0.06 0.61 0.00 0.61 0.09 0.00 0.N 0.25 0.00 0.25 0.03 0.90 0.00 0.II2.35 b:68ip0.~'llp(pro 1 6 L 0.60 0.01 0.67 0.00 0.61 0.10 0.00 0.20 0.2" 0.00 0.21 0.03 1.07 0.00 1.072.36 PisadOr 111(I123pro I 6 L. RAW0 CIUIEl :110 MM.00 0.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.002.37 lbauiaiio osigWlrloln liSEE( iEX (21 BELO0 none 20' V 126.03 7.22 24.05 0.00 24.05 3.25 0.00 3.2~i 11.57 0.00 11.51 6.16 45.03 0.00 45.03

817014 LIE (Eicludin; LadI '71 240).1I1202.68 262.05 130.00 3912.85 340 10.)461 V3.91 210.46 18.16 1J8.M 54.21 461.12 228.57 0896918.02 nqaawerini ad 8qmrvisx. 41.15 0.00 41.15 5.31 6. 06 5.5? (01.93 0.00 10.93 0.00 65.65 0.00 65.659.02 Lad 0.37 0.00 0.37 0.0C0 0.00 A.00P 0.00 0.00 0.06 0.00 0.37 0.00 0.37 g

1900 COSTS: FILSCT 09082 303.51 130.90 434.37 3V.7.129.61 50.36 O2." 78.26 207.75 54.21 527.14 Z3785 750.71

NW1 1: Soply af tom 750 hip staddby slip ra wtors for Raijara PaM UAter Intakel S3aivstallation ad rxzsstiming of 3 lb pAs m 6106 W aiors at aoth tO R;p and Pattomuicw.ON1 2: ksifna (Rs 14.4001, Oiralm (Rs 2.4.,.), Riajmo (list.6h002 Kald ... Rs ,. Ic - 06w Costs.

SST 3 : 51611sr4m a WUILIIATION If 6U10116 SME Sij Ink £ I Iatuatia.au C3.anii Iad91iaa - - ai atio7Mq: whtAill.13rd: sOrt IaS.coilA ta U I. Lwit Csrttawe hiAium as - % .at, ofatarials: al s do - In'clIotati af 6ttlat

huttaatl I 3 hawuIetl Sasa'c ar frcre kram't crc - CewsrLctimau Com.ssaarrc(llrriuur NW So % s f WI Mpatit I Lwi cd trsitim

ltn 6 TV 5(fUfTA PLAN -- --------------- 5;6Wi5N Pt - ---- ---- IN PLAN

l4-IPrinimtq mi -iql* :: I st o :: l jtp :! Io90 2 9~~ S1 li9q , 9 19 94 :1 59 lqt, Jill7

lb. COO ON [it e : iQS 198 2q39a 9 i9Q 19 0142 1: 1Q91 2: 1 9 94 :: Ile! IjAcof

P24-S fSlices V296A443 254 I A I IIPA 92*5' :9964 "iE,9' m EAlS A 4447 - (44 a dm49lSSFRgn LKT klbPM I(11IW I m pr lOlICA IV : I 9 8 / SB I ISa Pt a . I 9S I C . 14q 9 j9 '0 I 9 9 9 ':It qq q 2 j 9 94 @3 5 9~ 9% '

i. "l C! , bI` i4tm las mw I c C c:c:

,.A P 4 CAKrt ASPuIOWA nI, 1% 1159w A SaI :tdde a ad541AM VA:-I, ct;(i cC;c.C(i;.cr:ca:C:C:c:CC:r:c:114' Ins Cairt (m iSth! SW VA Om S .NW t a 555 d W: aedd!b.j a a C(r>r.ta- '(cc, trtCccc-cC:cccccccX1frshVIVO ram 'NbPSi', V 21.15 A3tteS - a,dd P S I ftbb Cid cf' (n~ E ,t *9 CCc.c'( cL. :cc-cr;E:tccfcc agcr:ccc:rrc: (f C C 1ak.c4 Sue'sC f SOt's S " "W ND I 1aw I A I dl- MA1 ddClib:P4-ISc *clC-C'c.tCc CEU C" C C!C

'1 xhSinger39aa :8.I"8" M 9 Offer) a ON"Ge U h s at*t44rr(C a

3I Swaq'ieS. PlauilaeSbd !.Al V"-'r a AM . SKAd. be's new I N 1 :5 it a 355 : ( cc 4 cc.cccc:rc CCCI S r,'pe

3q SmrUls 6P13 14(w-6l293 U Wt . Seas's. SPrs new I h I Adw dAdl iII :E e1*d/tCS t'ccC.CCtcrcca

O1 Arld,W,rtruttrqfllv a'IC.-tia I ta. ,r It 4 1 te S a IA c C ''C CCL CC(:'c:CCE:ErcCCC 2I' c A 11oudledrAel 4.614 lIiw -Isio N. I'wd ml o.W Ge I I WOdd dd ada a .tt; r.c' .a 'u '. ccc:.7 c- , L: -CCccc ChsswivalfwrwtoTiP S. 5 !M.19

5.)w N. Si,a,,N InS gaip a, N 4 1 ft .a 6W55b "As : 4-r' U. ccL C r IcC C CC C..

11 l1stipr : Ia 5 u11 km. 91a W'4-S - Cl S. Owe's- Sew's 'm I A CStSt*W dAJ;A5 414449 ( -ccEa:c:'c .

'.leIAr,mri. 515 Am w. 0 L'49-l2 n CCl S. SMrs. bSpw new N .~r di:d StA t bt: C9345 ccc:TC itcc.

N 'r"apl ChuirrVaa 4.IA l41," lW.W S. r.-flI Sew. ncew 1 St 1aWa aM a sr SaMW..~C ct S --APe t 54 t titCC-Disirghat lbwaawo '. le 16N. a WI S. -Wlt 1" S-w chP i 0 I dm:tm''''::dC m:mt C Cit, JiU tv u,

!.I 'IWI Str I&wagqdo tlpsi '?No, "Vt5 , to) H '- . i-u 'ciw I N '.Sa s a.'cPaa St.. llPom'apalSIp)lo tnlr il9q IO 5% 29r Ile nW. I Itta t dwd.bbbtea , v.l

'Pru NIS 40mg. LII5 A'~ IN El cag, nw u.a aa si

tWUbrC,n 9.36

ol"Los 115-rn I9V. Fcto, r new I CrI.St-.a si n-s AC rf

I4~WIp:Iatt lIW-Iwi MS `K'lS ne ::addda.a a '%bftaf'ir :w C C C i c;cIS w biwPS*hbwW kv 9a.16Ii a r Fm'EOW,n e e s 1m C C

;.9I terusSO wtriA* tfim 7p ,I I N,a a' aPa ar11 pat "r 'n* Ic C'/'C C'Ii cr : ccc ,czcc c (CCC'C--%hOWh I o f ktEi t frit' Rw wha "iw tPS Am I I I a S:,l' all a et t *-s as199

2be.psS4S AWimr A.tIv t.I,P 0 0 a ttdd;sss

I.S sew "mIf* . P'.a SotaSis's n:I jrfraMNhm Wa d C I cIl idd: IId'.. - -!%zVA, CI~ A~ = fAI.r 'A. m & O b Sws w -La,,d +or Fm lmw Puspiq Satim W-, a2I

Wz? is 1:~~~~~~~~~~~~~~~~~~~~~~~~

IlVum rNirp 9uffLY 0g YMllA3Il0 FowlE 6a 6 I Iotwo.tiuaal Cmeetitive Didioolyrks 0 L Loca Cotitiae Baddinq

EI3'IJIN 3 : N48BITTITt48 Il ST11S111E16 OFE [STING1 %WM~55 S eparetuetal 0 0 hpart.eetal 9miopaq or forc- kacm'tfile hndkast rmW: CS31204 27

60.m131) Eoqneerinq ami Sup o E 9 Cioj(tut fh0voral 0-vm)io-ci

(dk Oi-96v-59 11:30 uIXI L L Local Cmpetitie 9iddinq :15 300 eoodslan*ey III 0 Departmental Slixeaoq or Force krcowt !10 c-f aor-k r-to

C016NE IN hs1iilUN: NK iF 0o1 R 6.00 = U$1.00 PUlTrainieq S '3 4 ' LMldIN CIUM WM : (E) 13 gem ~ ~~~~~~TO-Trainioq T

(C) Is CACLULTEl NO lamn tOTS CO1STof Base Coslts are in (kt I I99 Prieman (tlacIPhys..dW Price

DIA-. 3A SI ices (Det of laoe " mid tieols)ia Lmtlntwr'~ P'icp, CbotoiWcoes Duties Cwti.u Tax 0 hutoenlCmt 119! M L E"I 10a196-Pups) PFPE 4AT'1 100J/W Strut pre' or ------------ '------------ -- - _- -----

96 (st0Kwtvl ) (E Iapaity) ll.terial( Ttl 00 6 ) I* Ova) Area e.2 post Camtr. Guds Vorks LE FC TOTALS.F '(01 LE Ic Tlt LE3. I IC FC JTS.I(El (Cl (El (El IF1 (C) !C El (E l f IEl E (El IC) El (C) (C) (C) (E El 'i ~i (Cl IC) (C l (C l (Cl (Cl (ClIC

3.01IOnCainwt'ns iWt 140)9 100.O u 6 ow 0 1.10 0.29 1.,30 0.00 1.3B ~ .k 'J' V Q(; x2Q 0.00 0.29 0.29 2.15 0.00) 2.153.02 96. Camet ns (Soitll 000 No 100 m 66 Io V L 0.47 0.12 (.'.5 0.00 0.59 060 .00 0.1? 0.00 0.12 0.12 0.91 0.00) 0.913.03 IrmsjI CoW1 Os lNotthlI2000) No 100.o G nOrie 4 0 L 10.41 1.39 11.00 0.00 11.00 I0 L (.701 4.39 0.00 4.39 2.74 20.62 0.00 20.62;.04 Iraynf Connes (SoitO I000MD 100. 0ge 20 0 67 .3 78 .0 79 .. 0. L 1iLl 2.91 t'.00 2.91 1.03 13.74 0.00 13.74

.OSlr.chSws l~~~~~~t6l 704v0-390.~~~~~~' ninem 4 193 .06 10.44 0.00 (0.44 '4. Vl 11.46 400 .0 490 23 1.1 A 1.33.06 Braic Stwrs (Soujl , 6.00 200-r00 - 0 11 4 0 1 2.31 0.591 2.90 0,00 2.99 4 o. o(. 0 .o5 o.00 0.95 0.51 4.53 0.40 4.503.07 Bidi OiI1.K~r 1.00) 45l-a. n 0C . Sernd. Sewso we 1 0 1 5.72 0.76 6.48 0.0 6.408 (. /' 1,i.9 21.61 ('.0 2.61 1.54 11.56 0.00 11.563.111 Suapoada ha,aritabad 1.69 400-5 a PMt M. Serood. Siers noe 1 0 L 3.927 0. 50 4.32 0. 00 4.32 o.C .. , 1.74 0.00 1.74 1.03 7.71 0.00 7.713.09 bAirget Secretariat 4.05 900-1200 N. Serand.. Scuer now I 0 1 9.53 2.34 11.07 0. 00 (1.07 nO6 t'.66 4.14 0.00 4.24 2.49 20.26 0.00 20.263.10 Stcretaraat1.eqially 6.10 1I600-1oRCt N. Seconi. Sewus nwr 1 N L 10.96 2.69 13.54 (O.00C 13. 54 X l t i.Vr 4.26 0.00 4.20 2.45 22.15 01.00 22.153.11 96t,abloito 1 V s Fain 2.50 0" N .L .50 ",.90 7.39 0.M 7.39 01 A Or, :% 2. 76 0.00) 2.76 1.72 12.9 0.00 12.931.12 0arva, usudbdoDI 4.69 l1wI00-Ih U N. mnink Iot Sewura Iw N L 23.79 3,.19 26.97 0.00 2t.33 u 0 0 90. 8.51 0.00 9.51 6.02 45.39 0.00 45.39Y3.13 Owm*dlaIderpptSTP 5.25 l9 150n191 N. Miunt Iot Scaw nwv I 0 3 7.06 9.15 46.21 0.00 46.21 04 YM 1 .4?' 14.54 0.00 14.54 9.39 76.61 0.00 76.6L3.14 Emtolpira SIS Jsec. 1.91 30-400. NDI PC . Secood. Scowrs nom I N L 1.74 1.23 1.97 MU04 1.97 " .20 4 ' 'O 7 .79 0.00 '. N 0.47 3.51 0.00 3. 513.15 FatcWhDraz0saizfmlaz 1.71 400-700. o C S. Secoid. SEers none 1 0 L 2.54 1.3;4 22.48 0.00 2.84. 00q4- .O 0.43 1.16 (.01) 1.16 0.d5 5.14 0.00 5.143.16 Chareonrv Vlu:opLira 1.418 300-450 em Ott S. Spromil. Scous now I N L I.", or11 .2f, 0.0 2.20 ", 7,, o.92 0.89 ('.00 0.89 0.51 3.92 0.96 3.923.17 thauzioa SIS Jyo. 1.31 450-120 tAC S. Secrid. Sewrs nowi 1 N L 1.0 A.2 22.20 0.O 2.20 1; -22 0.89 0.00 0.09 0.51 3.92 0.00 3.923.10 malaliopt SIS Join. 1.70 WM-00 fCC 5 . Srcoi. Souws now I W L 2. 0 0.27 2.30 0.00 2.30 0. 1u 333 0.93 0.00 0.93 0.54 4.10 0.00 4.1')3.19 Pwarmapl Chader#ot 4.18 I400,-190mWC S. Irunl Jnt Sewer ow I N L 26.17 3.51 29.6e 0.00 29.69 0S M.C 4 28 11-95 0.00 1.95 7.01 52.9 0.00 52 .0921.20 Chmbru6at 96nrmbs6 2.291 1600 - RCC S. Trui inOTt Scouraow 1 0 L 16.3o 2.2( 19.59 0.06 19.50 ,.n .N., 2.14 6.16 0.00 6.66 4.2? 32.)) 0.00 32.20

3.22I (Pop, Stn) Saaa7pedo (00 Ips) (3 96) ('32.5 h'p) (10.) ( 10 x1 ogo 1 N L. 1.oS 0.71 1.76 0.00 1.26 ~ )2- 0.2 , '.' 4,.3 i; (.44 0.00 0.46 0.217 2.72 0.00 2.723.2.2 Swinpuota A 3ain 0.48 250. a l Forcelain snew 1 0 0 0.115 k".02 0.07 0.00 0.07 0).01 0.0 m.i 0.01 0.00 0.01 0.43 0.12 0.00 0.123.23 (Pump Still lPhanapIll129D Ips) (6Nol (90 h'p) (Oi 19 K II. nowi 1 N L 2.51 1.59 4.10 0.00 4.10 0.3' 1. 10) 0.34 1.07 0.00 1.07 0.62 0.33 0.00 6.333.24 --40th ad Elect Eqpiip't for Sa;m'puda and Purmoail POtos oraw I S 1 2.3' 0.5 .37, 0.00 2. 32 0.36 0.00 0.311 0.50 0.00 0.00 0.34 3.57 0.00 3.573.25 Purmapil M1S Jim. 0.15 400 a cl Foricflain owM 1 N L 0.09 0. 16 0.25 0.00 0.25 0.03S -.00 r.0 .06 0.00 0.00 0.00 0.34 0.00 0.343.26(PoumpStnl96na'maol15401uol 169ND) (360 hp! (201 774 e12m nowi I N L 3.95 2.76 6.71 0.00 6.71 0.57, (0.0 '..! 2.21 0.00 2.21 1.20 I0.99 0.00 10."9

3.27 YmaondaI= re 0.50*90. IS Forcellajo 'nin I 0 0 1.59B 0.93 2.51 0.00 2.51 (0.33 0 5 0. 13 0.53 0.00 0.53 0.45 5 .42 ('.00 3.123. 20 Fwop Stl 67t 070 1ps) 16 961 (100 bpi (Oil 36 n 156 owe I N 1 6.99 5.19 12.07 0.00 12.07 1.!5 0.60 1. 50 3.001 0.00 3.95 2.27 19.57 0.00 19.173.29 -4hch aid Elect Epiot for 96eambah aid Aerpet PStns now I & I 726. M 0.00 4.43 21.61i 26.04 0.67 1.11 S. C J.%4 6.59 7. S3 3.73 9.7 31.44 41.213.30 mwerpe@ = =etl 0. 10 251350 I S inrceRaia fewn 1 0 L 1.42 0.35 1.77 0.00 1.77 0.25 0.ie O.2 ( 0.37 0.00 0.37 0.23 2.62 0.00 2.6.23.31 Aerpetsll'Cm,twtrn, p, 1 N L 26.95 50.13 61.62 15.46 77.130 6.19 2.22 9.06 22.00 0.47 31.45 13.40 I04. 26.25 131.053.32 bcrpetSYP%Wly of AOrators Ih PM0 hp pre 1 6 1 l(,.57 0.00 0.00 10.57 10.57 .40 1.5 4 7 0.00 6.92 6.92 4.51 4.51 19.43 23.593.33 berpetSpPow ly - 0 5.19 0.00 5.79 0.00 5.79 0.07 0.00 ('.7, 0.92 0.00 0.92 0.00 7.1 0.00 7.33.34 Laboatory E* 9aor (,. lPIt Iw 6 1 0.97 0.00 0.12 0.05 0.97 0.37 0.13 A,?, 0.00 0.15 0.64 0.49 0.9 I.50 2.253.35 Scou Clean'n fwpipi 14-1irke TYPe.; I-Jett"n IKlecul ow I 6 1 2.47 0.00 1.62 0.95 2.47 O..4 0.13 0.7 0.34 0.3 0.60 0.45 2.3 1.24 4.123.36 *bkmcls awlhua= Ewpit ow I 6 L 0.903 0.00 0.93 0.00 0.93 0.1i 0.00 O. 14 0.19 0.48 0.19l 0.27 1.53 0.00 1.13LIW for Forqem*Phqn Sfato is4 400a~2 L 0 - - 1.16 0.00 1.16 0. 00 , 5 .00O 0.02 0.00) 0.42 0.00 1.13 0.00 1.13

W3UAL. CMT (EvElvngu LandI 32, 27.25 93.70 317.69 49.3;4 367.03 42. 77 7.41 50,V 105.20 22.42 132.02 74.0011 504.341 79.57 0241.415.03 EfqUfmuering and hpeVflOLO 271.53 0.0 27.53 03. 6. 10 31.61 9.5 0.001 9.83 0.00 61.21 0.00 41.21 9.03 Laid 1. 0.00 1. 16 V.00 v.0 % .50k 0.0 0.00 0.02 0.00 1.15 0.00 1.13

TOTAL.COSMS: MMT 0593(33 346.39 49.34 395.72 4,592 7.41 `4.77 119.01 22.42 141.17 74.00 37.23 79.17 136.5

0

INa

111 S Wl R YAM 5 mtYV TItr ft4'lAt dId PrvarNatimr of fiNl tma sc cr.. nt&so tiaf.r we tAs 'rasC F7sslsIsatOrW AMlszstISw . Ok:wor M. Acrc'.is

srs f = *I 51^JW P~~~~~~~~~~~~~~~~~~~~~~~~~~~~~slmsX JI:or .e dtco o us? - bt M tr 4 tLOE LF IfliFiMiA 'CS,. fink S I ln Iw a W',orl tap'iss Pildfm P_ I*,I-:fiarD

r.qn: scnil b55M: 1ctengrt ts C-p5

s 1t to6l w1 L, fr p FiXi:5 'ss S uis of pla!eials: S ud 'flc O 3bgwrtwrti! D D Dartf'.l Spovog 2c Form torf (c C sstrt'or MId ,_ asnij

Euitgww:q aM Su a n F I CssItnl 1I. Inr kqc-isuor,trd A-adrA n Ti if FA I P Aft - - -. i 6 I I f M Pr t Al

16Trsri.rct ' flf. 1 19S: I99 ' F I I t. 1 9'1 :' : 1 i le !'5 !9c 1P'-

9r U6 VP 1 9 : i919 : 9 9 h I 9 I'l 9 * I *9'

Pt41iShU19it-fk AI9MF al Slacns f 1 A R c A RF I if F V r A F if A V 9 A ' 5 1fA : : Ftil F: tb F F * tA b 9C- -(oWnt,d to Saitao S_w im aaiIdIble. fro, r 2* r I - 9 9 ' .9 P I ° '99 41 ' 9 ' , I . 9 -I 9* 9 , 1 9 / 9I :. I 9 ' ' 5 I A99 0 i 9o C -.

tl t96 bxr pit Iff tlcy eis.h.- osl cstirr F trFot ol aimes -r! ' 'fIi '1n b J JS O-: D J--a- 'i D 0-:-1 -: J-S r- ie. ! - as I -J a 5 - :> J i-J:, T -:.- ! -s.n-ca-D c sw ;-:-S:Hn4 Jit -J J-5 P-:: JC:J-SJ-J4 -4F J l-i- :J -!uJ

t1 bIt' IhSa of Isis S. e tau rs t,sr It N I i .o of I55s s555- 0 (Ca ls- c( :0(s .((: f:ra.t(ccc:c7t::t::c('t0:.C( C' C tCC a4.* biftr Silo :t mIs. f. (user' rr'ii. f usl t Avows ta-wi tsr. * A I -0 sic sss 01 '55 '' 3: -i-. -c'c - I: -c: c0.c CS 0 tc A0: ttttc: 0JJ:-- so.s: trz

t99 th ISfraft 1ss It. |tttanir A.5'Xt i I h i iii ca- s-s ca5 -:ctt- L:.Cu:: Co t .•occuc :ucm.a ttl ->5[['t cr 0CtnC- C :: ('C -0 -Cr .- t

4.4 S.O ,id ,1 .s , lb tA, :w = = ,4.6 SpithNSb of Ihis P. Aaot Nmit. lash,' WaILMS W i 6.. isso 5~5 (3 c,. rie((c-cc'c -'c crcctC)EC.sE!tE-oV '':0n:'MIc x

0-

9-

file t o scut raW: CST5Mi (al4k.adIl6Ocd 27-&t-1 16:20

wd 6 I Internatimujl Ela titive Bidding-m as~ IFRy a WIIATIOl Pwtt Iimi N L. Liicdl C&Wtitive Bid1ioqkpwtmetal 8 0 beWtwntamtil ¶nm*rinq or Force Account

CO ti 4' LJG*- SUI4UISt ttM Enq±E ruiw ai S,on f T Comsuitwnt PtiLuCl LaitmngencLaw L L Local Codtitive lbddinq -152 of goods costst

C011 N IIN Rs INI(3 WYE COISTS ASJM Rs 16.00 US11.40 Tri&ty It 0 Departuntal SNipoirn or Force kcowit -19Z Y'f s cos.r b4R lrammg S - P l an L.A

IN MMlOI NMS . (El IS EOEMIC is CllLCIlEO b l1s 101. cmIS

of Bn Costs te in tkt I, 19 Prn1l ai fiac1Phy.m PricePll'-fLttS IR-SlE-I LAiRIIES Oit Slices (Nrt of Taxes aid iutirl PI'- ,J: LortitIw ies Pnrce otor'qcm bbts CEmtq. lta I timl strt - ect, to Sautwy Sir arwe available. Pre or -- ---- ------------- -----b - UImsig twof-t tecuioloo ottlse. pot t(rir. Goos Works LC FE 1011 LE Ft TAlI LE fC 10.L tC It FCt IOT A.rIEI NEI IIG of Latrones (El IEl I() (El (El (CI (Cl (EI IEI tt (t: (rl Irl I) ICCI IE) IC) (ll I_I

4.01 arth Sid Of G1l P. Wu Litroes ti .5 none I t I 9.56 6.38 15.94 0.00 15.94 :.08 )JA O .. 4.52 0.90 4.52 1.9 24.00 0.00 21.52q a rtjh st of 1, R. i^rt rEmis5t. BaAe Larm 3:O 1Gn ;K i -3764ia5 >#w ',,! ii;~ ' w tc7 ':o : °M 1: :o 1

4.4 South Sod. at ItgSI R. CaRvwr Exist. Wsxet Latrl.es ,! * V L 2'2 P 1.50 ,. h o.r US v4q f .f C.4 1.2 '.4 i.o.i 5.3 Q.OO 3.3

3305 .COS 0 f5 luCiUio LOA)) 200% 1 .4Q 15.00 '7.49 fi. (A -,.4 4.) .( O -00 If'j* 0.00 10.611 4.70 57.75 O.OQ 57.n58.04 qeei ogrS and id Soeruisin 7.5i k,.9 ',S(. ? J !. .1 :.1;3 0.40r 2.13 O.m0 10.61 0.40 10.619.04 Lid 0,(* 0.00 ('(% ('. ( I. ( ".0 . O.QO 4.40 0.o0 0.00 0.40 0.o0

lUll (5MR: P%EiEO Ci OW 4 4409 oq 44.09 SOc c'. % .2-81 0.00 12.31 4.70 18.36 0.O0 18.36

0MO

tf

- 128 -

Page 14 of 21

SC REFTTLEMEN~T AND RREILITATION - COMPCNENT 5

IAdian Fiscal Years

1989- 1990- 1991-RRP COUPONENT Units TOTAL 1990 1991 1992

Families Relorated No 4,120 1t695 2,425 -

RESMStEKENT INFRAMUCIUVRE

Approach Roads - Formation km 69 69 - -- itallirg kflm a8 19 69 -

Internal Roads - Formation km 59 22 37 -M Netalling km 59 - 22 37

Drinking Water - Boreowlls No 89 89 - -- Piped Systems No 20 - 8 12

Schools Rooms 179 22 84 73

Common Buildings - Community Halls No 23 - 17 6Ceneral Purposo Bldss. No 29 17 6 6Primary Health Centers No 7 - 2 5

Vetorinary Clinics No 16 - 6 10

Eloctricity - Power Lines km 34 17 17 -- Transformers No 14 8 6 -

REHABILITATION

Self-Employment Schemes Families 1524 380 610 534Employmont Training Families 270 90 90 90

SUBTOTAL Families 1794 470 700 624

Irrigation Borowells No 315 bO 100 155

HousinS for Scheduled No:S No ;0 375 400 375and Sch-duled r:.

129 -

aEX 1Page 15 of 21

COSTS RESETTLLk4ENT AND REHABILITATION COMPONENT 5

i~ ~ ~ ~~~~~~~~~~~~i

]X I 2 1 tF-2 4 i I-i 3

_i .- ,- 1 8t@*P- < ' I *eS

---gl ws-"---- -- °

Ft ast b O O C OOS

I I E y|o o o o _ _ o o o o|_ o o I_I

|~~~~~~~~~~ Y i -1_|BSW_,Z_ -

ILK;

Si i i|oSosx°i _

Ell

a = t- 0 IIt5 0 ; 1t

IH I " ~i

- 130 -

ANNX 10Page 16 of 21

SCH DULES - lSTITUTIONAL STRENGTHENING - TA AND TRAINING

-- - ---. ! .-.-.-.-...-.-.-.-.-.... :.

- --- T-------------__,E_--------

_ . ._.. ___,___E_,_,

t~~~~~~

- '' ' -:;*----------- E

- _,til. _ _ El3i

I ~El

-- -- ._.i j -- ---

- l|it.$,$ 1 E 3"il _sj--- t*-1 '- -,1 -3. 'i--ii!I 'I--~HjI I Tj U I I ,......

. - iii - I i :: j 3

,~~~~~. . ........;; ,,;;,,;.......................................... ; . . . .U d i ~ Iiu - 1 . . ..... ...........J i!~~~~~~~ ..... ------------- ----

ii:i a, ; :L

- a _m , , 2 a a-,

-! - , I _ 5g, *8R-' F

WMIM SIR My M SMITATMN FMUI

OMPOW 6: ImITWIMK SPMMING

MIS Nil IN Ps NILL IM : MW CES NM Ps 16.00: 101.00

io atto i(w, : t , is cmxqulkw Cnts am lfl (kt I IIIR Prices ad 11K 111114S. no prim

sub EIFLPWt Nmftttn flbt of Tom ad imlini ""[Cal Contimmy Prim CatimpKin btin ork". to IT 1111*10111

LC K Lot Fw ["ti't Swvacos LC FE MIIL LC K WIL a K im c a n iftiff D(SrRipilgo III III IE) 11) IC (Cl IC) IC) (El (C) IC) ici IC) IC) IC) (Co 91 8.0 ci

&A water: Sur.r.s &W Inf-astrxtwe Kwing 0.50 - 140 - 0.50 1.00 310 0.00 3.50 0.35 0.00 0.35 OX 6.0 CA2 LIS 4.V #A 4.516.2� Miter: " C"tt-d for 161rr AaWpWt Studies 0.20 2.0 40 12 7.60 3.72 1.40 4.92 6.32 0.14 O." 0.63 0.34 1.67 2A 6.12 2.0 1.41 ITA6.,! Mile,: gPtdLl�d DiSt n Andl. OW flndl OftigM 0.50 - 100 - 0.30 3.00 1.50 0.00 3.50 .0tian *4 PainteNKe

-so 5 -

2.55 1.50 1.05 2.35

O' -I'S ': '11 :11 M '636

6. A lkter: sroes 0 el LA ',A6.31 Smwaw: projKttelmation - OAS 0.45 0.00 0.45 0.05 0.40 4.45 4.0 0.0 $A Om L31 Lo 4.3t6.3.- SawaW: lndntrial te PAmqmmf Studin 1. 00 0.00 0.0 6.40 4.0 Lo Lfe $A Lo 4.0b.'l SOWAV: SFW COWLtiOR kW%SMI StUdICS 0.20 0.40 50 5 0.60 2.55 1.70 IAS 3.15 0.17 0.15 0.32 4.3 0.31 LY LU LP LR 4.136. A Sewar: btailed Dn:r frsu ld laimmoh 1.60 1.30 300 10 2.90 11.10 10.60 3.0 14.00 1.06 0.34 1.0 2.46 S." LIIIII Lg U.8 4A 11.976.41 Sanit n: Low-cas, San a ion P% - - 0.00 OA GA 1.0 4.0 OA 0.4 L111111 OA 0.06 00 Sir so Pev," Pawl - 0 1.20 1.20 0.00 1.20 0.12 0.40 6.12 4.43 0.0 OA 0.4 1.35 OA 1.336:51 m M Plan Prewatim - 12 0.15 0.15 0.00 0.15 4.02 0.00 0.02 0.41 4.0 LO OA 4.0 LO 4.176.57 AIR: Frogras fuluation 0.00 0.10 36 0.10 0.45 0.45 0.10 0.55 0.0 4.41 0.16 0.6 LO OA OM LN 4.11111 $A6.61 Trateirq: Studifi-dmlop Innning Plan &W Pal,cy - - 0.40 0.0 6.46 0.41 Lo OA Lo LO IA 0.406.6' Traimirq: Eptemal Training-fres. fravel,Subsist. - - 20.00 15.00 5.00 20.00 1,30 0.39 2.09 4.11 2.35 im #A 21.4 IA 29.336.61 Wwdi: la bp adent i t ted m 1. fut Prop. Prep fi. th - 0.4 0.4 0.00 0.4 0.05 0.01 1.0 0.0 6.0 6.0 LN OA OA 44?6.91 t: kcawit NW " t 'Ware f. %St�% 0.00 0.14 fie 0. Y) 1.80 1.0 0.50 2.10 0.18 0.15 0.23 0.0 6.9 #Al LU LE LIS LO6.1r = .t: PMOKII Plaminq ed 'antrot Svitm 0.00 0.10 40 0.10 1.20 1.20 0.10 1.10 0.12 0.0! 1.1111 1.2 $A L31 LIS LS LO IA&6.93 " 'I: lbter Billing aM CollectioN Svstm - - 30 3 - 1.53 0.90 0.63 1.53 O." 0.06 0.15 0.17 LO 0-M Lb 1.16 LA 2.126.94 PA"'t: Patertals Mmiq t ind Stgrn Invmtory 3D O." 0.90 4.40 O.% 0.0 0.41 0.0 6.11 6.0 LIP LO 1.16 LO 11.114

2MIDTIt CEIS 1f,cluding Lane) 3.00 4.90 919 35 7.11111 54.01 44.73 17.15 MA q-49 1.72 La 1111111.2 LS WU Ub W S NA ILIIIII8.06 Eminwinq md *er,islan 0.00 0.00 0 0 0.00 6.40 0.00 0.00 0.00 0.0 0.0 LIP! #A 0.0 LO LO OA LO 0.409A Lalid 0.00 0.00 0 0 0.00 0.00 0.0 0.40 1.0 6.60 0.0 LO 6.00 0.0 $A LO LO $A 0.49

7CIAL [MYS: PPM T CMPWV 6 3.00 4.00 919 35 7.80 54.46 44.13 17.11 61A 4.49 1.72 6.21 10.37 I" 1.26 1111.15 24A IlL*

Oa

0

ISa WIU~~~ 0019 g3~~~~i mm ~~na~~iu sal b11111 I KI tammln tieu (aphtaw OiMiqqOpAai

------- Ln wjq ad Sops E IEomdtat MMaul at

C&uzpK Iwdisiklivporafl lowriu'.1 (amLo 4. OmLai

Costs4$ m Iniso pit la so wDSS AMJ R.. 10.00 s 00.00 5 Oraiau S

kw Cints am sA m:t I IW0 PrICK4 iKWiq bitmmhi

01*.u RR SIIac lbt of ta n - is) Fphical C4mtvry fvt-i C.tainoo WMo o"imiTami

Cm "om 'o LE0 lt&olo .b+W0 29 sft. m ntL WI SIngt p, or_______

MM ND tStr.%isvi iAl. iCqiit)I PtI lottcklioiltal WI494 *9 1o0d km 0 .o(.o.CIM " e.oo mwos LE FE wito I ,L FE WLOU IL FC VWn LC IC IC U

-K (El EtI (E ill Atl I(1 Ill il4 1 4(4 Ill4( 114 t 4(1 4E1 40 IE) IE4 4(t IE) M( M1 IE4 (E) KiC IC) lEO 1C

I II 0~~~~~~ ~ ~ ~ 142 211 (600 0frh )1a40100 1~ (1330f pro 1 6 1 0*4 0.00 0.40 0.49 0.51 12 0.06 0.01 0.13 0.03 0.10 0.15 5.73 0.13 0.0 1.29

2 11.06 111jrVeseiit'rddiliwl pu I IS 2 0.22 0.03 0.23 0.00 0.23 11 0.00 0.00 .4 0.00 0.0 SM 0.02 5.06 0.31 0.00 0.31

I 1.20 Bulk Flom 0ters : 14 lb Size 450. a t 200 a Pu 2£ I 0.21 0.02 0.12 0.11 0.23 It 0.01 C.0 0.01 0.01 O.M 0.03 0.A 0.09 0.15 0.30

O 1.2,I laatwry (enipe1 It Pfe04aw : 1 Is I 0.20 0.00 0.13 0.05 0.13 14 0.02 0.01 0.03 0.42 0.01 0.03 0A 0.73 0.07 0.29

5 L2 (tptrap 1cr:e7V m-iryUr:PbI0~f4t Pu 6 I 0.61 0.00 0.44 0.17 0.40 12 0.00 0.03 0.A 0.02 0.02 0.00 0.10 0.06 0.22 0A

I tmnlse als, 440 2.01 the'f 1ivl"Ftm pre 0 34 .00) 2.45 0."0 3.04413 0.3 0.1 0.2 0j10 C31 :. O

I (w t n pr*vAwq. ~~PM I 1 . :0 0.00 0.03 0.00 0.401) 0.01 '0.00 0.01 0.0 0.0 .0 * . I

0 I 2,20 iftt " ioi) 0isaa". q2.0I 0Ap249 3h4 lpro I S I 0.04 0.00 0.10 0.40 0.10 12 0.02 0.00 0.02 0.02 040 0.02 0.0 Om7 0OA 0.m

I 1','I (W~It ni JAhil.%l. 330063fit 31wU0 I pue I £ I 0.10 0.00 0.10 0.00 0.3104 0.05 0.00 0.40 0.03 0.00 0.03 o 0 60.40 0.A 0*6

10 I 2.22 Lao] Distributim Strintsag iOMi~i #il5~LS P I 6 1 0.10 0.00 3.02 4.12 0.34 M4 0.51 0.11 .23 0.01 1.42 2.20 0. 53 .0 i.e 02A4

II 1 2.76 Dili fImA 00ters 00Si t100e iiL, la we Pu 6 I 0.41 0.11 0.41 0.17 Oil 13 0.40 0.0 0.tt 0.03 0.06 0.09 0.00 0.3 0.09 0.0

1ll 12.2771Ld Ortn (u at -PapIwL E419 ' ht kto I wta 1 t pr P 6 I 0.03 0.00 0.12 0.00 0.21 7 0.00 0.00 0.01 0.0 0A .00 0.0 0.04 0.11 GAO 0.11

13 12.29 Pn~~~hanj. 0.~~~ A. 1510m3li4or~ e~uJIU p 0 6 I 0.40 0.00 1.02 0.04 0.40 12 0.03 0.13 0.5 0.01 0.5 0.43 0.70 2* 1.3 3.V

10 23.24 --Imo adho ElK quip 04fo Ssiolloda am PuruprSmMM 1 6 1 0.13 0.00 0.23 0.00 0.25 12 0.02 0.00 0.02 0.02 0.00 v.2 0.53 0.273 L 0 40 .V

IS t1.79 -Wh Au(IKt q ip t for Aa& aid MoPt P%n raw 1 0 1 1.63 0.00 0.3 1.35 1.4313 0.04 0.10 0.20 !.03 0.20 01 0.21 0* 0101 LA

26 11.1 MarwpittS up91t ol AatWrs lb 0r pre I 9 I 0.146 0.00 0.00 0.4 0.4 02 0.40 0.10 0.10 0.40 0.73 0.73 0.0 0.110 0.0 1.73

11 03.33 Far C1aw92 (quiaat Wl-Ss&.t Iypi; 1et-kttaq ItKmiuf mm I 6 I 0.13 0.00 0.10 0.03 0.15 It 0.011 0.00 0.02 0.02 0.01 0.02 0.04 0.110 A0 0.23

1019000 am ic 19.12 0.24 10.11 9.40 I19.11 1.09 1.09 2.34 1.39 2.3 .0.1 3.a 065 14*5.31

I 2 2.30000.05(for 2.29. 402100 Pa1 aid es Kaj 9211 imin 10103610 b WWI0 pu 2 6 L 0.09 0.00 0.09 0.00 0.0901 0.01 .0 0. 00 0.01 .0 .00 U.t 0.0 4U 0* OLi

2 2.34 thloraeatms 11.0.I6?W;14tijaot;2-~PattaxteruI Pu 6 L 0.53 0.00 0.04 0.0 0.04 73 0.00 0.40 O.pa 0.40 0.A 0.410 L 0 A CIO 0 40 .6

2?1.35 NighBrib',t10 T at Pa4qW Ipre I U I L0.0 0.00 0.04 0.40 0.04 73 0.01 0.0 0.04 0.0 0.00 0.01 LO4 0.06 US0 0.01

227.36 pwu ad ;;tr Pu 1 6 4. AWN OI1: lai 0 0.40 0.0 0.00 .40 0.40 0.0 0.00 0* 0A 0.00

4 2 134 Uiatori Equupwnt lir SWIM 10Mm 0 6 4. 0.06 0.4 0.01 0.03 0.0603 0.00 0.00 0.01 0.40 0.A 0.02 L.03 0* OA 0.12

23ZZ .36 4e00uItn aid Niauuwc- q 49ii t mm 6 L 0.06 0.00 0.00 0.40 0.0614 0.K 0.00 0.01 0.00 OA OA 0.01 0A 0.00 0.00

a.- .-- a a - a~~~~~~~~~~~~~~~~~~~~~ssw a - - -sss~ssss,- sssssssssisssO,sssssIUsD sIsil100

10 llS GM .03 0.3 0.02 0.20 0.05 0.3 0.04 0.0 it .LI 0.02 0* 0.04 0.0 0.2 L.0 04

I 32.021 0200 10900 20D OM11?4 iPudi.pwi 1130 IRId) Pu I I 00 1.43 1.02 0.3 1.4010 0.07 0.04 I 0.2 .0.1 0.03 0.3 02 300 01

00

g01

ISIA : WMVM WATER Stfft� X SMIM11% F�UIECI 6 1 International Comptiti.? eiddtrqlbrts I L Lv-al Cmptitive giddvq Physical Cmtitqmv Yms I iKltdvq O"ical aml

ItL FRUM RMWIS 9MTED Ly PRERW RK oppwtmtal 0 0 D�lartmental 9winq or Force Accart -151 of goods costs ad I ":I amtirgm In- ---- - ------------- - ------ - -------- - ----- Eqinwriq oW Sup n f T rfisultent -11A of owts (es's bties)ckouzim hardis1lawn file Inrprocus.41 raW LEW L - C-7. cm Land

turrikey 4MO Nt IN JJSI PILLHIN MS[ CVS AR91t Rs 16.06 101.00 M Training S

111-Yrainirq T I&M %W EKIIAW COthhw Cats are in (kt 1 1909 Prices MW Isclidtaq CmtiapKtfl

DIA-M 11111. Sjir� twi of 1"Ps am Auties) Ph-sical Contingency Frire Com�irqmmcin btin Butm ad Tomrmt FM TO LEKTH 0s)(Na-Pumps) PIPE MT'L OWIRW Stnict pre or - ------------------------ - - - -- - -- - ------ - ------ - - - ----- -----

FNE 6 (Strurture) I At) !UPK00 Materiall iTatai HP) to NWi Arri �2 pmt Contr. CAT VW Goods lbrks LC Ft TOTIL Z LE FC TOTPL LE FE TOTAL LE LC n TNALNW (1) (1) f[) IF) (f) (El (E) (E. (E) (E) (E) (El if) (E) (1) IF) IF] lci (r.) (c) 11) ici IEI IC? (C) ic) IC) ici

I 01 SLriapr Peddipr 26 km lw a RCC %Mlv and Lav pre 4 L 5.04 2.65 6.11D 49 N, 0.89 0 3 1.14 q. 71 0.34 1.05 1.24 9A4 2.3 11.92ir (or idgm I for Pipelim in Cant. No I ':' OI.'a and 55m pre L O.iO 0.71 O.-,I 00 .719 0.07 0 OO 0.07 O.Ozol Span c O 0 OD 0 07 0 46 0.91 0 911'4 tclwat Aes�jpeddw i It' IOM, -.54 0. M 'I. 10 0-6 0 0. 06 (1:00 4:07 O: (A 0.81 0,20 0:9113 41 '.6 "I) L 0.4 ( O .669 .1 0.0

(P*3t n I I Peddapur 1 (5411761 post I N t P.Ok, 0 12 0 222 0 w 0.71,9 0 O, 0 9n (I O, 0 OO 0 02 0 01 0.27 0 00 0.27I 0 L 0. 00 73 0 99 3 :A41 00 PEMAW S140aw la to Q5 a RS Lining aW Lav OM 1:9, 2.7 9 C M 0 Zi 0-27 0 (09 0 37 0 46 0 .53 2 47 .00

Llfwimwl 7m m P9[ 94*Iv iM Lay ort, 4.67 r 60 35 3 Ir 5_7; 0 17 0 59 (I.76 0 14 0.86, O." 0.8 2.54 5.31 7.11511: N i LUsBA-psior prp I N 1 6.16 '.2" 0.38 1.00 ','a 11 f,.M -).-J( 0.05 0. 03 'Mlo ). .0 0.09 0.55 O.A.D 0.55

We IWO o Tolle&ters dSwiv apd Liv pre 11 v t (A -.?O 0.61 3.1, 7. ', 4I' O.O6 11.41 4.5, 0. Ob 0.65 6.71 0.41 1.14 4.7 25 5.391.12 P. fkmi in contract 1.11 160 a prp I N t 10 14 0.14 -).(W, La jah'a"e'a I' -1 0.02 4,-.uO 4. 0.1 0.01 0.16 6.0

In Ro-re'. vair) fjahamm 1 7.6 R] tRrl pre I v t 6.05 % I I u.0f, (.11R Ox) (M-1 MI O.* 0.01 0.02 0.15 0.0 0.15I 1 41.14 ir-rcss Drairace Owts: Stmoow to Linqampallv JM to Jahiremia) fome 10 N L 9, 5, 0. o)5 O.Y. J.,5 0.05 ).,)A Q.05 0.05 0.67 9.00 0.671 2 1.15 IW Imis:Pedd tr, Sirtq. a! Veddnaitaria: Sinq.ta Osms. War Sing.) raw 2 b L 0. Ou i-. 53 9. (KI 0.59D 0.116 0.0�- uxb (.O(- 0.0 0.00 0.70 0.00 i0o1 3 1.16 ServLce ia lf'9.?7 We; twov t-in sm cmm metall a iM asphalt a. nw 30 It L fl. �wj !. 72 1. 7' (.OA 1. Y, 10 0.17 0.11 0.16 -).M 0. 16 0. 10 2.05 OM 2.05t 4 41.17 (Staff W-11 UAItS:CMt RWO. Stores. 0!ficr:1w d Wj1I4�mLnQ:L1t& raw 91 W L u. fkt 1. 4' 1.47 1.47 it, b. I' 0.,,6 O.I5 0.17 O. * 0. 1, 0.12 I.V P.OD 1.8715 41.19 Landscaping aid Pnetoo, faw ' N L 0. III) U.. I 11 2 ,.(n 12 a ().Q O.-p (,. I! O.Oi 0.0(, p.01 O.O,) 0.14 0.00 6.1416 42.01 fialEwwa P 00; ta Ir 0 0 00 A V

ke 6m a Cl Lay R" I L P. b) I- 3 -00 3-) u.00 0.00 O.* (.O(' MKI 10.00I 0.011 0.43 0. . , I-I 42.02 Paplara JubTS'ump 1.0 Is 6M m cl Lay rww I w L 0.0f) 0.021 0.02 -,.Ofj .(r0 0.00 0.00 O.-* 0. (O A.00 'j.00 MO 4.02 100 v-92 wla 2.63 JubiI.Sump Jubil.Res M ke WI!) a 11 Lay rxm I v L 0.00 i-.Jo 0.10 0. o., (1.10 10 OM 0.00 0.01 0.01 6. N, 0.01 0.00 0.12 0. (A 0. 1219 .1 64 PA Ulhr Asmqadtf. 5.5 It Wi a El Lay none I 9 L Mi. 9.09 �,.Oo O. (q I I 0.01 0.00 0.01 0.91 0.00 ').01 O.Ot 0.11 O." �.Il20 42: M Pr,,S 5ke 450 a El Lay none I g L AM a.01 0.00 -5.010 0.00 0.00 0 M 0.00 0.00 0.00 0.00 0.01 O.OD D.0111 14" 1 V L 0.04 0.00 6.040 MA OJ10 0.00 O.M 0.00 9.00 0.00 0.01 0.00 0.041 4 Ctri Rm ParWplly 1.60 km 7% o El UY21, 4�:(17 Etrl P. PU Pn 1.79 1. XJD sm Cl Lay "M I 9 t 0. (0 6.04 0.04 0.00 0.040 0.00 0.00 O.OD 0.00 0.00 ON 0.00 0.04 0.00 0.04

42.08 Tani bW Aditat 4.63 ke W) a ci Lay none I V L OJO) 0. nO 0.08 O.M 0.00 I 3 0.01 0.00 0.01 0.01 0.00 0.01 0.00 0.10 O.QD 0.1024 42.00 Ts* NW NirayaqA0.7 In 40n a cl Lay Dow I V L (,.D(, MO . 0.02 7 O.OD OM 0 0.00 O.M 0.00 0.01 0.00 0.01 0.00 0.03 ko.00 0.032', 422.11 PinjariAkmj I AmAkMi11sRrs Stsept, mO Ld� pre I v t 1.11 D. 16 0.14 1.13 1.27 13 0.01 0.17 0. 19 MT 0.30 0.32 0.11 0.35 1.60 1.9526 42.1, (Pe-Arvoirl0raissimag. Ml RCE ple I N L US O.M 0.10 0.00 0.109 0.01 O.W 0.01 0.01 0.00 0.01 0.01 0.13 (1.00 0.13'i (10 271 42. I' (Reservoir)1lessainsaq. 6.0 MI AM pe I W L 0.09 0.11 0.20 0.00 0.20 10 0.02 t. 30 Mr. OM 0.00 0.01 0.41 4.727 0 . 0.29 471.1i (limervairAD)a pre Z ia 13.0 P] AM 0.19 M 25 0.44 O.OD D.44 11 0.05 4.0D 0.05 O.M 4.00 0.05 0.04 0.31 0. (W) 0.56'9 t. I v 1 0.14 0. 19 0.32 O.M 0.32 11 0.04 0.00 0.04 0.114 0.00 0.04 0.05 0.45 0.40 0.451 42,15 flipservoir)JAi te 10.0 Ml XE pre3D 4' .I& (Poof'o) Prakes" . 7.15 Kid Civ-0 Preis n" I N L 0.0 0. (A 0.04 0.00 0.04 0 0.00 0.00 0.0 0.02 0.00 0.02 0.00 0.06 0.00 0.06ELVII W S I N L 0. * 0.04 0.04 0.00 0.040 0.00 0.00 0.00 0.02 0.00 0.02 0.00 0.06 0-M 0.%31 17. 10 (Pkoot's) Mussainsmi.20.70 Fid r0*17 4'. 20 fW t'n) Mil.5map 35.00 Nid Civil Voris raw I 0 L 0.00 0.08 0.08 O.OD 0.4 13 0.01 0.00 0.01 0.01 0.00 0.01 0.00 0.10 0.00 0.1033 4�.23 LK.] Di,t,.Jt. Strwqthentrq aW Replacement Leaking Copts.-IM. fw* I 0 L 0.00 3.55 3.55 0.00 3.55 10 0.16 4.00 0.36 UM 0.00 Ull 0.46 4.59 4.00 4-Y34 44�.14 DlfKr hilding Extmsion aW laorwo ! at VIwairatatial Phil Kajny4M pre I I L 0.24 0.36 0.48 0.12 0. iO 12 0.05 0.02 0.07 0.9 0.04 0.17 0.00 OAI 0.10 0.79

1.79 bwmw. in 4.5 km 1570 0 m IPZ Uj prt, I I L A.W 0.39 0.39 0.00 0.39 tf 0.04 0.00 O.M O.Ob 9.00 0.06 e-40 4.41 0.00 0.49�31 lipionlaq lbil almq raij Phil %in 12.2 ke rww I N L D I L E I E 0 0 0.0 0.0 O.OD 0.00 0.00 0.6 0.0 0.40 0.00 0.0

32 "WSW latfW 15.v km 2WO a ACUrepl.et.led 9 aquadiort) pre I N L UMV CM M BELM 0 0.00 0.00 0.00 0.00 0.00 O.OD 0.414 4.0 0.00 0.0036 4�:33 IftservatIoRijampet 7.00 91 KE (Ex 1.21 "I Inadquate) prt, I V L 0. II 0.13 0.24 0.00 0.24 12 0.03 0.00 0.03 0.03 0.00 ON 0.01 0.11 0.00 0.31P 423 7 R" ilitation of Ewisttfq Miter Treltmpnt Plarti WE NM f2l RIP none 20" N L MA 0.45 1.50 0.00 1.50 11 0.20 0.00 0. X 0.71 0.40 0.77 0.32 2.29 0.00 2-29

ou0

It

1-6140

0

IOIA : WffRAW WID SLPIY At SWITA11010 FRWECT sook 6 I lntenutional CoWetitive Pidd.,rqlbrks W L Local Cowtitive licHim Physical Contiowzy laws) IKIndinq 0"Ical NWtm I I&= (IntmirmclesILL PNIV RENWS SWTFD Ov PRW-%W PM Depaw, ta D D Dewtoental ShDopLAQ o, Force Account -1�1 01 gows costs NW-- - ---- - -------- - ------------------------- Eng3livering oW Sup p E T Consultant -n of Voris costs outiesicdcouters hardistlayere ftl? 1,yprocmull ro" Und L (in LaidTurnkey it

CDSTS 41 IN S HILL IIN : M r%TS ASM Rs 16.-)) LIS11.00 FM Tramirq STtt-training I laxn Tau! 1%alated Cnts

Baw Costs are iri (kt 1, 1909 Pr!res SW imigiliq totLDIA-0 9ML Slices (opt of laxes NW bit.-esl PhVSL[al COPtJnM V Price Cmtinw iles kties kt;es oWCmt FPM TO LOGTH (Val(ND-fuW1 PIPE "AT'L W04W Stnert pre or -- ---------------- - ---------------- ---------------- --------Fff No (Stnich") (At i (CaDaritv) i Mater I a I I ITotal HP) (a tLA) Area m2 pGst Conir. CAI PROC Goods Itiris LE FE TOTAL I LE FC TOTAL LE FC ToTrt LE LE FE MttME (E I (E) 1i (El (El IE) !E) [El if) (E) V (1) IF) (E) (c) (E) 'El 'El ID (Cl (C) ici (c) IC) (Cl (Cl 4c) ic)= � ��_ =�� �_- =�-- �-= =7= �=== === == == ZZ= =��= -=== === ==== == ==== z�_== r==�� === - - - - - -_40 4L03 Trmsf Com'ns (Morth)I.W No 100 a a (KM 4 N L 0.65 0.09 0.74 0.00 0.74 13 0.11 0.00 0.11 0.09 0.00 O.O? 0.14 1.4 0.00 1.0841 43.14 Trmsf Cam ns (Southl �Wj No IM o GM none 7 1 L 0.41 0.06 (.49 0. (f) 6.49 1 ; O.h' O.'JO 0.07 0. "s 0.00 0.00 0.11 0.n 0.00 0.7541 413.05 9rmxh Sims (North) 2(1. M200-300 a RN rione 4 N L 0.52 0.13 11.65 0. (k) 0.65 12 0. i-9 11.0 O.* 0.10 0.00 0.10 0.12 0.% 0.90 0.%43 43.06 BraKh Sewrs (Southi 60 2W300 o 0 nciie 4 N L 0.14 0.04 0.18 0. lp 6.18 1 4 ll.o' 0.4 0. 0 0. (I 0.00 0.01 0.04 0.3 0.00 0.2644 43.07 S*i Malk.karwan 1.90 4'd)-Bw n m: N. WUW. Smws rwe I 0 L 6.36 0.0 0.41 ti. tK, 41 1 7 I.156 O.om) 0. �,6 0.il 0.00 0.65 6.411 0.60 0.00 0.6-0j:j 4 .?7 0. AO (,_- I ' (I. 'A O.L-(- -).(,4 0. �4 0.06 0.01 6.(.-l 0.0 0.00 0.40M ltl "I t �.j I:q N. e-W. 5emer, . I 0 L io. 2 0.0.se, W M 1.14 0. 4 .74 i: iot, 0. -'i(l A. IO (-. 11 0.11 0.13 1.0 0.00 I.48Ik N.'am. 5ews A" I V L 0.60

47 431.10 SpcretariatLi lly 6.10 W -100101FEC M. SKand. Spws nw I v L 0. 6B OA? ,.85 0.1: P.Ok, (j. 1, 0.10 0.00 0. iO 0.13 1.20 0.00 1.200 4',.II Retabilit M ,Ms 'In 2.11, W" I N L (1.41 (1.65 4.46 0.4, 1!. 4ti1 fi. 1) 7 A..) fij-7 (.07 (.00 0.07 q." 0.0 0.00 0.690 4 12 karvw owalfiedcol 4.4 IIWIWnWU N. Trunk Int 3�wr nonp I N t �. 49 !. :(� 1.69 1.691 0. 24' (. -.9) (-.,'4 4.21 fl.00 0. 'I 0.33 2.47 0.00 2.4?50 4 13 Nomfed[olAmberoetSTP 5.75 lNxtRYmOM 1. Trunk Int Sew mw I W L 2.3, -).5- .00 :.20 01 0.51 4.17 0.00 4.17Si 43.14 famatipura SIS Joint. 1.81 W 4(A a RC[ S. Second. Sewrs nant- I N I 0.11 CX -A I' 14 0.0,' Q. W, O.-,I (-.02 6.00 0.07 0.03 0.19 0.00 6.1952 43.15 FatellixarwazOssivillaz 1.71 4W700 a RCC S. SpcaW. Sewfs none I w 1 0.16 A.fl- 0.1i 1� 14 V-0 0.,-T 0.02 A."it) 0.02 1).04 0.27 0.00 P.VM 43.16 (hartipar kha-ipura 1.8B W-00 m ROC S. Serorid. Spws qmp I M I 6. K ". -" ".14 -.14 1 ' 0.�O, 0. �!; 0.1.2 1.0t, 0. O,' 6.03 0.ZI (1.00 b. 'IST 4',.I' Mztpura 515 Jm. 1. �l Wl-12W WAKC S. Secom. Sews none I N , '.121 O.": 0. 14 %14 1 , (I.Oll ti. (v) O.A� mc uxo f. ),- fvi3 0. M (00 4. ,I55 4i. 19 Waipet SiS Junc. 1. 'O W W m RD[ S. Secow. Sews none I v L 6. 11 -!., I , .14 i .14 [I c.", 0.00 O.,-- 0. Pi', 4;.(t, o.03 0.03 0.22 kl.00 0.4-43.19 PtranwI Chak-rghat 4. ig WO-18401min S ,Trw� lnt Sm" faw I 0 1 1.4 f). 2' , 1.96 1.060 'J. 27 O.W O..? 0.2O O.% 'J. 'e 6.36 22. 77 15.00 '. 17W 43.?,) Chaderghat flusaraidlailh 2.'g 16M a RC[ S. Truni Int Sewr none I V .,.14 1.16 -A 1.16 1� 0.. I " O.:,X) 0.17 6.16 Don O.Io 0.73 1.72 0.41 I -72J O.N. f).Il 9 O."I 0.4iv O."I 0).01 -,A) 0.11 0.01 0.14 6.6O43.' (Ptm Stnl Sma)LQWa (9) IOS) (3 NDI (37.5 hp) 110ol If, los now I W L J! f�. 1459 47. 2? A Pain A. (IB 2") a Cl ForceMaip nme I W I 0, 'J.Ur, '... 66 1.116 u'r. (.w 6.0t. "J, fj.w O.oo i.Orl4 .,, -,,.! 5 1'. '� , .�X, JA O.;" (,.O(J 'l..r (,-.fl4 f). 5 O.00 '). �,56p 1 _ tn, (Ptirimapu I 11 79`1 lpsi (6 lb i lw, hp' (OS) le lie naw I v I , !61 !..n Pu I Nis Jun[. 0.15 4r a ci forceNi, nione i W t "j., O jjo- C.Of, U..jO O.O( 0.01 Ojl) V.O,'6. 3. 26 = 0 NowastwhIM [psi (6 ND) 136A hp) 04 i 24 12a none t b L I 11 0.05 O. (k) (�.�A i).00 O.1& (,.A�..5 (1.42 Uk, 4; fi 0.59 O.-W) -).%94I.227, Mvs&rmbaqh%&rpet 6.% I.. W.I m PIS ForceMaln norw I W L �-6 (.16 (,.16 It (.02 0.1XI 9.0 OAK) O.v1 O.O.2 0.71 O-rKI 0.2164 41.28 lPoop Stn) Ambprppt 10% lpsi 16 MD) II&'.) Np, (w 16 00 WM I W t .. 4" J.' A .1'. A. 11 O. ori 0.11 0.13 I.Ial 6.0 1. )965 4I. 14) AsberpetPS AmWpptSY Ii. W29175A 0 MS lorcwaif, now I v L 1. 0Q ..t , 0.11 '�. 90 0.11 1 7 0.02 O.W 0.0' , 0. (K) O.Ov 0.00 0.01 0.14 O.OO tl. 1466 4I.3 DAd" tSIPContrurtion pre I N L 1.68 3.14 '-R5 6.97 4.82 II 0.42 0.15 0.57 0.56 0.27 O.M 0.721 5.55 i.39 t. 9467 44.01 lbrth Side of Mi R. Nm Latrifws 17,0m nme I W L --.b1l 0. *1 1.1)) fi. IC 1.0D 1 2 0.12 0.00 0. 12 t). I I O.% 0.11 0.10 1.33 0.00 1.3368 44.07 North Side Lt Mmi R. Cmroprt Exist. W pt Latrines 6.0`0 fxyw . N t (.14 0. 7� ). 90 0.35 1 2 0.05 0.00 0.05 U-4 u.nO O.44 0.04 0.4 (l.00 0.4861 44.03 South Side of Ui R. Mm Latrines l3oX.) rww I If L 6.46 0. Di C,. i6 A.(A 0.76 12 0.10 0.00 O. 16 O.(9 0.00 0. 1.q 0.09 I.(A O -w 1.0470 44.114 South Side of Pbsi R. Convm t Exist. Basket Latrines 4.-10 none V L (.14 D.09 0. 23 9. W 0.23 1 2 0.02 0.00 0.01 0.04 0.06 0.44 0.03 0.32 6.00 0. IZ11 45.0 Rmttimat Approach Ruds PD-t V L 6-5 0.60 (1.68 �'. 17 0.65 14 0.10 0.03 0.11 0.03 0.0e 0.43 0.10 0.91 0. ?O 1.11O.-- 0.78 14 0.10 0.02 0.12 0.03 0.01 0.04 0.10 0.85 0.19 1.047, 4S.02 Rrwttlewt Irtt-rnal RoA post V L - 0.55 0.62 6.1673 45.03 Rpwttitwl Dr."I Ing Vater pDst 0 L fQ'Q �1. 19 O.M P.10 0.40 13 0'06 0.01 0.07 0.( 0.01 0.04 0.06 0.53 0.12 0.6574 45.04 Rpwttlmmt 'kimlols POS t 0 L (.9 0.219 0. 6? ).I? 0.84 14 0.10 0.03 0.13 0.04 0.02 0.136 0.10 0.91 0.22 1.13i5 45. 05 qrsrttlewt Misc. Public Buildirqs mst v L 0. _T (,.lb 0.43 0.11 0.54 14 0.06 0.02 0.00 0.03 O.M 0.03 0.06 0.51 0.13 0.7176 45.46 Resettlewnt Elrctricit mst N I f). 11 0.03 0.11 t. )l 0.14 13 0.02 0.0f) A.02 O.OO 0.00 0. -V 0.01 0.14 0.03 (,.1717 45.0 ReWbilitation Pore *11 ftfgation post N L (-.49 il.49 0. 7B O..�l 0.98 1 3 0.12 D.0 3 0.15 0.% 0.02 0.00 0.17 1.13 0.25 1.30le 45.110 PeNbilititim StiST HousLng Ms! W L A.65 __�,.43 _01.96 i). 22 I.O� 13 0.13 0.03 0.16 O.A.4 0.0, 0.06 0.18 1.21 0.27 1.40 PC-- = _-= -== === == - - - - - - - - - - lbfaIrL NM LED 35.23 29.70 49.98 113.95 63.93 6.17 2.0? 8.26 6.06 2.05 8.91 0.66 70.117 18.119 0.76LL-ss 20 2 of P I R Proqrm Works as Force Arco-mt 0. Y) 0. 54 0.91 O.", 1.14 0.14 0.03 0. V 0. 0 ;.02 0.07 0.16 1.2i 0.20 1.54WI KR'S LEB 34.61, 29.16 49..'-" 17.?i Ll. 19 6.03 2.% 8.09 6.01 :.93 11.101 8.50 0.61 18.61 118.:2

O mm- - - - - - . -

In we we Sw we1 in w wle wt wS ' WS Uwo wo vlov ams

O.i in W on we We we we we we WI I*'s all 0'0 leu gg I _ _ C 0.

0 we WS we u' m We *,'s m "'I eu's WI di fig *I' I 1 PaI 1

N0 we m in we we es wes m's we we em'S we ms w/o tie Ii IPaIlul * mi s e e W' we WI 41 W# "' e tee ae wT 'i' 'Is I I 1 P1 t°6

e le o w 's me Ie e1 m' m m' e a' *'@ iss 's 's 5 a 1 p lo b&

in in we ons we me ws w's w*s m's II tZe tIis a lo 13 P5 1"It we w'e e cr1 w'e s - "I' mt m' We t 0 WS wA 0515 sIi ' 'r

18s

Z7 in zm we irt *lo WI$ Ulf WI ti's n Ull * l VI I IJSI t 3d VS A313 1U Co' I

me me m' me m' me me me ml me - mett m's m's 'i 'i e 3 ^,,,'5'b"'i loe8DIs ons De wes we1 ms Uee me1 meI ms 1 ut' we all. 'OR 'i1 I I d papbu A w to'se

we ie SI we lre we tIe we m us ti ' t "e o 9's 'i ts I I lp P 3hIAINbI3 l os e

WI we Ws' e s u m's sits -,m . o - =st . =IMuviolin6~ me inV we m's m's re- ;Ie m's me II g mls it' 'o 'is *04 buv ipanblr UDP11"d tOD' a

. al mlS*i r we * w a's iwe 11 s Im' u i ii m;ldy'l st h1iJliUi3 LO'S

a a - - - - - - -- a a a a a .- - ----

^~~~~~~~~;V 11- ;r.- W- mr| ." n n *I' -I ;' Y'l e- W iSSg Wxll' lll'' lwli V1LUt

mi n- ;e me Ze W 's n's we t' v W0 WI we "It W we e I 1 uOa I#ilcfA l o1s 1o t

uf we re we we * me eel m' 'S et m1s eIf io t e1 W 1 s I u' * 8 m tAie ) m'lw 101 -Hs 1

on WI we W s we mWs ws i's We t's 4 *s 'I "'t iu's se's m's I IKSj4 [WoIs] fi- d Im!l1Iitq u 't 19' E

cn ml wem' 1111 me all me we i' we W4 e kil u't ' Hle I11 m's I Ii~~ gul* v~~ i'-do)II V bl- :hi,j sioo fi m. z

W Ws we we In we we" 0' 0' 010 IA | PR SM- IA I I AilWp s uii ea ISwel^ AuTlti tg g 1'

f4 we we we on we we "' *l' We WI e ' tos s a M's I I i1nAl so s :oIs 1'n Uu

*- 2 4 * e zre on me on Or W' we i WS Ws a ue *le wte isl m'e I I a tn a haum oidia :u hq we9 Is~~~ tg we me m' e ms0 tee me tee o as te' * so-. me mtoh .rlWX-Iu,w pa hqi}0:*aos .i'h to e cme11 we ale W we We i' wee tee wes W's s o all se ile He 00'5 I I is sado bA e diffsh :1 busorge tI

we W we Ie *w we meIt ie we t we sm m m m te d I I irA jj p,i-lE :0 5IISt 11ii' t

w' we we me w n- " M' m S met mi v we a,s we 'WS tre Iu vo p on ,r cnuepis :u'Ahjas K,' jy I

n@t* e- we me me me we wue *m m ms" e 1111m- -1 jA i ArbpJ uqan1fuJ asq.iabwors :abvmutt xg I.

we me in me Ins we mls me We m's so we W's se's teeo Wo' I * Ia"i" Iw :gind 1je Ii

is we He me wes mw me fel's ll m's e s1o i's's tee 11 01 is' I IM Urnoimiajr 4 u4s,5m USlr W9i- ti eWI we ins wes u' m' ' ' ' 's o ' ' e me w 'db,4U~:*l '

me e me W a m :me rs we 1s Wou' o o I4 'I p 1 u e p F sz Z9 I .Alin or' anwe m we loll we Ws we' c111 Ifs 's we WSe "If I I w P1i nLPN mi u, )Pun,j :jkja cr9 9Ii

ins wis tis w we ins 's m we us e it'. rweo a's oCo's we i ii v I ulpils SAXINIV4.s m.~pap"" :,&III j1l 1 Ic

-~~w m's te u's m tee m' sr o ti' |*1s is' we Nt ti' m' *a |- - saws :Jt W- swe we *e m `s7 's m' - 's t i@ mds we ei'e tee a I - ssli. SM 0 S 9 Ii s

Osel we wel "I 42j w ils al' pill bill 153* 1'00 1 *5fA 1-3N J3 1} v -ADM 53f t d la I 13 PR

2 we all we we t e w s e n _ j ll file Il U'e WS se' a IISI aWp Al VW 'o, 111if" o ol, s in w' e we ct's m'sAe'e0i' ie' .. IIIi t'

an 's in ws w' w' we wte w' c isi M Al i we I' s I GIES wj il a i

(IS (21 I 12 31 21 (30 ( (IN i (3 ( (II (30 (3 (3) 03) (30 I 433 (3) 03 3) fi 03) I33 03) Ill 110 01) (III lt le-& 31 II1 11 U 31 '330l 31 31 1 UIK 3:1 31 3I0 Ut L 1 'M 1= *5U I1't1 I 111X11 519t1 3SI: sStAI03) Ite 0 4s0 cotSO

:2 AB 7 'j3 Ui 4 W M M01 _4 16 "1Nt 1 NW A Wmmn~~~~~~~~~~1 PRI a" Wmi 1si-- 3, AA*A5 P1 1-3n -----------------------

o _|t P_|zE 1@pp0aiq 1 1 wq ~ ~ ~~~~~Ivi a0lTlq 10-11 1 MM SLS U Zl b OM It Ntw t : S1513

-136-

ANNEX 11Page 1 of 2

INDIA

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

Land Acguisition - Reguirements - Status - Procedures

1. The land acquisition for the water supply and sewerage comRonentsof the project is completed except as follows:

Comp't 1: Land for Staff Quarters along transmission mains 17.57 ha

Comp't 2: Land for Water Pump St'ns at Hussainsagar 0.15 haat Bojagutta 1.00 haat Jubilee Res. 0.80 ha 1.95 ha

Comp't 3: Land for Sewage P/St'n at Mosarambagh 0.25 ha

On the basis of advice as to HMWW's prior general experience with landacquisition, including that on the ongoing Manjira Phase III Stage 1 project,no delays in project implementation as a result of these remaining landacquisition requirements are anticipated. The estimated cost of this land inOctober 1, 1989 prices is Rs 4.94 million (US$ 0.31 million).

2. HMWW's land acquisition procedures fullow those for governmentagencies in AP, as prescribed in the Land Acquisition Act of 1894, as amendedin 1984, as follows:

(a) Surveys and land acquisition proposals are forwarded to theCollector of the District where the land is located.

(b) The inspection is conducted by the Revenue authorities and thesurvey is conducted by the Land Record authorities; these formthe basis for the preliminary "Draft Notification" (DN).

(c) The DN is published in local newspapers and in the AP Gazette.

(d) A "Draft Declaration" (DD) is prepared after final demarkation andafter sending the DN to GOAP for approval and publication in localnewspapers and the AP Gazette.

(e) The "Provisional Valuation" (PV) statement is prepared by theRevenue authorities after proper enquiry. After approval by theCollector of the District, payment is made to the landowner.

(f) Ir owners are not satisfied with the level of compensation, theymay receive the payment 'under protest" and pursue the matter inthe courts.

3. HMWW was required to deposit the funds for the land acquisitionwith the Collector for a District when the preliminary proposals are submitted

-137-

Page 2 of 2

to him (3 (a) above) or when demanded by him. In urgent cases, the DN and DDare published simultaneously. It is expected that HMWSSB will follow the sameprocedures.

4. In addition to the land acquisition noted in para 1 above, thereis land acquisition related to the Resettlement and Rehabilitation Prograr(RRP). Apart from the project, the acquisition of the lands to be flooded bythe Singur Reservoir is in process (Annex 7, para 3). Linked to the project,is the acquisition of lands for new village settlements (Annex 7 paras 7 and12). The estimated cost of this land in October 1, 1989 prices is Rs 4.16million (US$0.26 million).

I~~~~~~~~~~~~~~~~~~o

-138-

INDIA ANNEX l2Page 1 of 10

HYDERABAD WATER SUPPLY PROJECT

Drinking Water Yield Reliability from the Sineur Reservoir

Introduction

1. The construction of the Singur Dam on the Manjira River by COAP'sIrrigaticn Department commenced in 1976 and completion is expected in 1989,except for the power plant installation which is planned for completion in1990. It will impound the water for HMWW's Manjira Phase III Stage 1 watersupply project, now in implemertation, and also for the Stage 2, which largely'twins' the Stage i, and which is Component 1 of the proposed project.

The Manjira Basin

2. The Manjira River is a right bank tributary of the Godavari, whichin turn is one of the major rivers draining south-east India 1/. The Godavarihas a total catchment of 312,811 km2 over par; of the five states of Orissa,Madhya Pradesh, Maharashatra, Karnataka and Andhra Pradesh; the riverdischarges to the Bay of Bengal from Andhra Pradesh. Downstream from theManjira junction, the Godavari has impoundment/diversion schemes atSriramsagar, at the Yellampalli Barrage, at Imchampalli, at the DummugudamAnicut 2] and at Palavaram.

3. The present basis for the sharing of water resources among theriparian states is a multi-state agreement executed in New Delhi onDecember 19, 1975, following a bilateral agreement with Karnataka in September1975. However, a national water policy was adopted September 9, 1987, at ameeting, chaired by the Prime Minister, of the concerned Central Ministries,the Chief Ministers of States, and the Heads of Union Territories,who aremembers of the Water Resources Council i/. While the implications of this new

1/ The City of Hyderabad is in the catchment area of a second major river,the Krishna, draining south-east India. The Krishna catchment includesparts of the states of Maharashtra, Karnataka and Andhra Pradesh. AKrishna tributary, the Musi River, flows through Hyderabad. The Musi isjoined by the Esi upstream from Hyderabad. The Musi and the Esi arerespectively impounded by the Osmansagar Dam (commissioned 1922) and theHimayatsagar Dam (commissioned 1927), which are the other principalwater supply sources for Hyderabad.

2/ The Tamil word "Anicut" is widely used in AP. It denotes a weir, sayone to two meters in height, often having removable stop log controlgates. Another Tamil word, "Ayacut", denotes a command area.

3/ The policy aims are: (i) pre-empting of inter-state disputes,(ii) rationalization of surface and groundwater use rates with dueregard to the interest of small and marginal farmers, (iii) recognitionof the drainage basin as the basic unit for planning, (iv) developmentof river waters, (v) inter-basin transfers of water, and (vi) setting upof a national information system to integrate the work of the centraland state agencies.

-139-

APEEX 12Page 2 of 10

policy for Andhra Pradesh and the Godavari allocations are not yet known, theAP Irrigation Department expects they may be at least somewhat favorable.

4. The Manjira River joins the Godavari above the Sriramsagarproject. However, the Manjira is not considered to have any dependable yieldbelow its Nizamsagar Dam after account is taken of the allotments made toMaharashtra and Karnataka in the upper reaches, and after meeting the needs ofHyderabad's water supply and of existing irrigation projects in AndhraPradesh. 1/ Thus, the Manjira can be considered in isolation.

5. The length of the Manjira is some 624 km from its junction withthe Godavari to its source. Until the construction of the Singur Dam, theonly storage reservoir on the Manjira proper was the NizamsagAr Dam,constructed in the period 1923-30, and located about 71 km upstream of theGodavari junction. There is an additional small reservoir - the Pocharam - onthe Alair tributary, which jo4.ns the Manjira upstream of Nizamsagar. ThePocharam Dam provides a part of the supply for the Mahboobnagar irrigationsystem.

6. Also upstream of Nizamsagar and below Ghanpur there is a smallanicut and channel constructed in 1904; the channel was improved in 1915 andis called the Fatehnahar. Together, the Mahboobnagar and Fatehnahar systemsconsume about 3 per cent of the waters of the Manjira. 2.1

7. About 81 km upstream of Nizamsagar is the Maniira Barragecompleted in 1966. This was coistructed specifically for Hyderabad's watersupply; the transmission and treatment works have been developed in twophases. Phase I was planned for a yield of 82 Mld (million liters per day)and Phase II for a yield of 164 Mld j/, for a total of 246 Mld.

8. The site of the Singur Dam is a further 26 km upstream of theManjira Barrage.

.1/ Ref. (9) at p. 43 para 3. The references are listed commencing page 8.

2J Ref. (10) at p. 229.

._. Ref. (7) Vol. I at p. 20: In India, in water supply practice, the usualflow units are Mld and MO) [million (Imperial) gallons per day].However, in water resource management practice and in irrigation work,the usual units are TMC [thousand million cubic feet (per year)] and MCM(million cubic meters (per year)]. The following table shows therelatienships:

MCM/Yr MGD TMC/Yr1.0000 0.3650 0.2200 0.01292.7397 1.0000 0.6027 0.03534.5455 1.6591 1.0000 0.058677.5803 28.3168 17.0653 1.0000

-140-

Page 3 of 10

9. The table below au marizes the river run distance and catchmentarea data for the various structures.

Distanceto Source between Catchment

Co oleted 11k ) k 2)

1989 (planned) Singur Dan 440 16,09726

1966 N&njira bsrrage 466 16,77081

1931 Niza Jagar 547 21,69471

Junction-Godavari 624

The 21,694 jo2 catchu.nt at Nizamsagar is divided between the Maharashtra(10,484 ko2, or 48%), Karnataka (3,688 km2, or 17%) and Andhra Pradesh7,521 ko2, or 35%).

10. The catchment is fed mainly by the June through September south-west monsoon. The north-east monsoon has very little influence. Accordingly,the available water resources in any year are largely known at the end of eachwet season, - say the end of September. However, proper reservoir operationis complicated by the historic, and therefore prospective future occurrence,of two and even three successive drought years.

The SinIzur Dao

11. The primary purpose of the Singur dam is the provision of 62.5 MGD(284 Mld) of water for Hyderabad. Secondary benefits identified are: (i)regulated releases in the river for downstream irrigation systems (includingthe Nizamsagar project), (ii) arresting the silt flowing to the Nizamsagarreservoir, and (iii) the generation of electric power (30 MW by three units of10 MW each). Power generation is planned during the monsoon season only bywater that would in any event be released.

12. Since the construction of the dam commenced in 1976, GOAP hasadditionally approved the release of 2 TMC (or 56.6 MCM) for the nearbykhariff 1/ irrigation of some 40,000 acres (about 16,200 ha).

13. The dao impounds a catchment of 16,097 ko2, of which 10,476 kM2 or 65%, is in Maharashtra; 4,014 1c2 is in Karnataka; and 1,607 kW2 is inAndhra Pradesh.

14. Horizontally, from left to right, the dam comprises 3,993 m ofearth dam, 81 m of the non-overflow portion of the masonry dam for powerplant, 327 m of masonry spillway 2/, and 3,120 m of earth dam.

1,/ Khariff crops are those grown in the June-to-September monsoon season.

2/ This includes 17 radial gates measuring 15 m x 13 m high. The spillwaydesign flood is 780,000 cusecs, or 20,100 m3/s, derived by transpositionof the maximum regional record flood [Ref. (10) pp. 28-31]. Ref. (11)p. 7 and App. X using Gumbel's frequency analysis estimate a flood of619,000 cusecs has a return period of 1,000 years.

-141-

ANNME 12Page 4 of 10

15. Vertically, the following are the key elevations in meters:

Top of Das 527.35 aFull Reservoir Level (FRL) - Max Water Level 523.60 aMinimum Drawdown Level (MDDL) 517.80 .Spillway Crest 510.60 aLowcst Bed Level 500.00 aLowest Foundation Level 493.86 a

Thus, the height of the dam above bed level is 27.35 a, or about 90 feet.

16. The storage volume and reservoir areas at the outset are asfollows:

Storage AreaI ~~~~~~~~Elev'n (m) MCM TMC Wl

FRL 523.6 846.71 29.90 165.40MDDL 517.8 251.18 8.87 65.42

Live Storage 595.53 21.03

Ref. (11) estimates the live storage after 50 years will decline to 455.6 MCM(16 TMC) as a result of siltation, and Ref. (10) estimates it will decline to309 MCM (10.92 TMC) after 100 years. A table from these sources is onpage 10.

The Maniira Barrase

17 Some 26 km downstream of the Singur Dam is the Manjira Barrage(para 7), having a gross upstream catchment of 16,770 kM2, or only 673 km2

more than the Singur Dam. Its sole purpose is water supply for Hyderabadunder the Manjira Phase I and Phase II schemes (see para 7).

18. The following are the key elevations in meters together withstorage volumes at certain elevations in both MCM and TMC:

Elevation Storage Volume(a) SCM

Maximum Water Level 506.27503.45 42.48 1.50501.93 19.82 0.70

Broad-Crested Weir Gates 501.23 0.74 0.03Spillway 495.60Scour Vents 493.77Deepest River Bed Level 486.16

Thus, the maximum water depth behind the structure is 20.11 m, or about 66 ft.

19. It will be noted that the storage volumes are very small whencompared to those available behind the Singur Dam.

-142-

ANNEX 12Page 5 of 10

The Nizamsagar DaM

20. The Nizamsagar Dam was constructed in the period 1923-31 forirrigation purposes. At the time of its planning and design, a furtherreservoir at Devanoor, some 135 km upstream, was anticipated. However, thisproject at Devanoor did not materialize, and one consequence has been muchmore heavy siltation of the reservoir at Nizamsagar than anticipated at theoutset.

21. Catchment area information is in para 9 abo-ve. The mean annualprecipitation over the total catchment of 21,694 kM2, from the records ofeight rain gauge stations, is 810 mm.

22. The following is key data on the Nizamsagar Dam; the storagevolume and reservoir area information is 'or the dam as originallyconstructed:

ReservoirElev'n Storage Volume Area(m) MCM TMC km2

Top of Dam 430.38Maximum Water Level 428.24 841 29.71 146.36

(Flood Storage) (201) (7.01)Full Reservoir Level 426.87 129.05

Storage at 419.40 116 4.10

Sill of Head Sluices 415.75Scouring Sluices 411.48Lowest Bed Level 395.73

Thus, the dam height in 34.65 m, or about 116 feet.

23. Of the original gross storage of 841 MCM (29.71 TMC), 725 MCM wasconsidered to be live storage. By 1975, it was estimated this had beenreduced to slightly less than halZ as follows:

Storaze in MCM Storage in TMCLive Dead TOTAL Live Dead TOTAL

1930 724.87 116.31 841.18 25.60 4.11 29.711975 357.46 6.24 363.70 12.62 0.22 12.84

24. The spillway design flood at Nizamsagar is 560,000 cfs, or15,860 m3/s. This is somewhat lower that the spillway design flood for theSingur Dam upstream. 1/ It is possible that this may be accounted for by theflood storage volume available at Nizamsagar.

1/ See footnote !/ on page 3 above.

-143-

ANNEX 12Page 6 of 10

Drinking Water Yields

25. The computations in Ref. (10) give the basis of the drinking wateravailability estimates which were prepared at the time of planning and designof the Singur Dam. They are somewhat complex. The following is a briefoutline of the methodology. Raipally is the location of a gauging station onthe Manjira, slightly upstream of the site of the Singur Dam. Ghanpur andNizamsagar (paras 5, 6 and 20) are the sites of other gauging stations.

26. Gauge records from the Raipally site are available for the 12-yearperiod 1965/66 to 1976/77 only. Gauge records from Ghanpur were used for the14-year period from 1951/52 to 1964/65 and from Nizamsagar for the 12-yearperiod 1939/40 to 1950/51. The total period of record at the time was38 years.

27. Estimates of the gross yield at each of Raipally, Ghanpur andNizamsagar were first made for the period of common record by adding estimatesof the upstream utilization of the gauged flows. These gross yields fromGhanpur and Nizamsagar were then linked for the common period of record usingregression analysis. These regression formulas were then used to synthesizegross yields at Raipally for the full 38-year period of record. Finally, thegross inflows at Singur were estimated by a simple ratio adjustment for theslightly larger catchment area at Singur.

28. These gross yields at Singur are then used as a surrogate for thefuture. To compute the annual net inflows, deductions are made from the grossfigures for the future upstream utilization. These deductions are made forboth existing and future agreed intercepted catchment areas in Maharashtra andKarnataka, and subject to the agreed limits. Likewise, deduction is also madefor utilization from the free catchment area in the three states ofMaharashtra, Karnataka, and Andhra Pradesh; these are also subject to inter-state agreement limits in the case of Maharashtra. (See footnote !/, page 7.)

29. On this basis, net annual future inflows for a 38-year period aresynthesized. These net annual inflows are then distributed monthly accordingto the monthly year-by-year distribution patterns of record from Nizamsagarfor the period 1939/40 to 1964/65 and for Raipally for the period 1965/66 to1976/77.

30. Finally, these net monthly inflows are used to compute the changesin reservoir level and/or the volumes of water spilt as surplus, after

-144-

ANNEX 12Page 7 of 10

allocations are made for the Hyderabad vater supply demand 1/, for downstreauirrigation demands 2/ and allowances estimated for evaporation losses.

31. The results of these calculations indicated that, for the 38-yearperiod, the full water sunply demands and irrigation demands Ire met duringeach of 36 years and that there are surplus discharges for the benefit of theNizamsagar irrigation systems in 34 of them. Thus, these calculationsprovided Drime facie evidence of a satisfactory level of reliability of theprobosed drinking water supply. Moreover, these calculations were based ontwo very conservative assumptions: (i) that 100 years of siltation has takenplace (para 16 - the details are on page 10); and (ii) that all futureupstream catchment interception works are fully implemented. However, many ofthese, accounting for about two-thirds of the future intercepted flows, areplanned for the future y/. However, they did not take account of thesubsequently planned 2.0 TMC irrigation utilization (para 12) nor theevaporation losses from the Singur Barrage downstream. The calculations inRef. (11) are marginally different, but the text and supporting calculationsindicate that without Singur, Nizamsagar is able to meet its full demands inonly 2 out of the 38 years, but with Singur - these demands are met in 18 ofthe 38 years.

i/ The water supply demands used are 4.00 TMC (310 Mld) for the ManjiraPhase III scheme to be supplied from Singur and 2.96 TMC (230 Mld) forthe Manjira Phase I and II schemes supplies from the Manjira Barrage.These figures are slightly at variance with the HMWW water supplyplanning and design figures (see paras 7 and 11), but the total of 540Mld is slightly higher than the HMWW total of 530 Mld.

2.1 The downstream irrigation demands used (apart from Nizamsagar) are2.70 TMC (76.5 MCM) for Mahboobnagar (para 5) and 1.36 TMC (38.5 MCM)for Fatehnahar (para 6). The intent is that Nizamsagar receive any andall available excess.

iJ/ The following summarizes the upstream utilization from catchmentinterceptions used in the calculations:

URStream Intercepted Catchment Utilization - TMC/YrUnder

Construction ProosedMaharashtra 34.75 1.90 32.85Karnataka 17L00 15.10 120TOTAL 51 75 17.00 34.75

The distribution of the gross catchment areas by State is as follows:

Future Catchment Areas in km2

TOTAL Maharashtra Karnataka Andhra PradeshIntercepted 7,418 5,149 2,269 NilFree 8 679 5 327 1 745 1 607TOTAL 16 097 10 476 4 dl4 1 607

-145-

ANNEX 12Page 8 of 10

32. An assessment of the drinking water yield reliability was includedin the terms of reference of the Singur Dan Review Panel (DRP - Annex 6). Inresponse to Bank reco-mendations and DRP requests, GOAP's IrrigationDepartment first updated the Singur net inflow estimates [Ref (13)] takingaccount of: (i) flow gauging records for the period 1977-78 to 1986-87; and(ii) revised estimates of the effects of upstream flow allocations. Theserevised inflow estimates over the 36 year flow series from 1951-52 averaged 57TMC per year compared to the earlier estimates of 81 TMC.

33. This information has been assessed by the DRP which, in theminutes of its May 30 to June 3, 1989, expresses the opinion that providingthe dam in ooerated with a carry-over storage of 2 TMC, the planned watersupply would be available in 33 out of the 36 years in the revised yieldseries; this is a reliability of 92% which can be considered satisfactory.The need for carry-over storage arises from the occurrence in the yieldseries, of a number of events of consecutive years having less than normalinflow.

34. The Bank has requested for review the data and analysis leading tothis DRP opinion. The Bank has also requested for review Reservoir OperatingGuidelines which are required to be prepared jointly by the IrrigationDepartment and by the Chief Engineer of HMWSSB, according to GOAP's GovernmentOrder (GO) No 190 MA of April 12, 1989. These are necessary to give practicaleffect to GOAP's stated policy which accords the first priority in theallocation of the water resources available from the Singur Dam to the p_ 1'-water supply for Hyderabad. The need for these rules has been emphasized alsoby the DRP.

35. The DRP has additionally drawn attention to the need for ".

emergency operation guidelines, keeping in view the available facilities forreservoir depletion ... ", which arises from the dam safety purview of theDRP.

ANNEX 12 REFERENCES

(1) Feasibility Report on Augmentation of Water Supply to Hyderabad UrbanArea from Manjira Water Supply Scheme Phase III (Singur Project); HMWW,December 1985.

(2) Feasibility Report on Augmentation of Water Supply to Hyderabad UrbanArea from Manjira Wacer Supply Scheme Phase III (Singur Project); HMWW,September 1986.

(3) GOAP Information furnished to IDA Mission to Hyderabad May 30-June 6,1987, on Manjira Water SuDRly Scheme Phase III (Singur Project).

(4) Notes on Works of Singur Project presented to the World Bank Team onJune 2, 1987 (the Singur Dam).

(5) Salient Features of Manjira Water Supply Scheme - Phase I and II; May1987

.146-

ANNEX 12Page 9 of 10

(6) Hyderabad Water Supply - Manjira Phase III Stage 2 - Volume I -"Presentation Material", and Volume II 'Exhibits"; by TATA ConsultingEngineers, Bombay, September 26, 1987.

(7) Project Preparation Report (Draft Final) for Water Supply - Volumes Iand II; TATA for UNDP/WB, December 1987.

(8) Yields from Sources - Summary of Observations Made on the HydrologicData (Himayatsagar, Osmansagar, Singur); TATA, September 1987.

(9) Report of the Expert Committee on Augmentation of Drinking Water Supplyto Twin Cities of Hyderabad and Secunderabad from Krishna/GodavariRiver; May 1987.

(10) Singur Project - Water Availability Studies; GOAP Irrigation and CommandArea Development Department; Undated.

(11) Replies to comments of the Central Water Commission (CWC) ascommunicated in their Letter No. 6/88-TE, datedSeptember 24/25, 1988, on the Singur Project; GOAP Irrigation and PowerDepartment, April 1981.

(12) Bank letter to GOAP of May 11, 1988 with note giving Bank staffobservations of (10).

(13) GOAP-DHMAUD 'Data on Hydrology of Manjira River at Singur Dam"; undated,under cover of GOAP letter dated April 15, 1989.

(14) Minutes of Singur Dam Review Panel's Third (January 16-19, 1989) andFourth (May 30-June 3, 1989) meetings.

-147-

AME 12Page 10 of 10

14DIA A P: POS NYDTASM IWTU SUPLY AM SUNITATION pROJECT

TME SIJE OMAs Df "T - ARECAPACITY ELATICOSUIP(i) ro silt; (1i) 50 yVro slt; (Mi) 100 yea silt

Sourcos: (1) Nyda.ad Water S.W4y md Sanitation Project; Draft Final Project Pr ation Peportfor Water Supply; vol 11 p34: TATA Contulting Engir1, Deseber, In

CIi) Replies to Coemmnts of CMC in lftter No 6/8B-TI dated 24/24 Septbe r, 1960; p3100AP Irrigotfon *nd Power Department, Apr11 1961

(fii) S1nwr Project ater Aveilability Stud1es; p235; 0OP Irrigation and Comn id AreaDweocp mnt Departnt; Undated.

Note: Nuch of this project's docu mntation is given In a mixture of imperial wnd mtric units.Th40 reservoir storag vtolue are often given In TNC (Thouswnd Million Cubic Feet).For corwenience both are given below 1 TNC * 28.317 NO (million cubic metrs).

h O S I L T 5O Y E A 4 S S I L T 100 Y E A R S S I L T

Etev'n Ares Capaity Capaity Area Capaity Capaity Area Capacity CapacityCm) kmv NCN ThC kmZ MC TMc b Z I TNC

, _~~~~UU *_U *--- *_Uu * _ *-.. 3 *----. u.a---....TOP OF DA 527.35

525.00 203.00 1104.57 39.01524.50 189.90 1006.34 35.54524.00 175.90 914.89 32.31 175.90 615.61 21.74523.90 173.00 897.45 31.69523.80 170.40 880.28 31.09523.70 168.00 863.36 30.49523.65 166.50 854.99 30.19523.64 166.30 853.33 30.13523.63 165.20 851.67 30.08523.62 165.90 850.02 30.02523.61 165.60 848.36 29.96

FRL 523.60 165.40 846.71 29.90 165.40 552.22 19.50 165.40 309.07 10.91523.50 162.80 830.30 29.32 146.74 536.34 18.94 128.30 293.81 10.38523.00 150;02 752.09 26.56 127.80 467.69 16.52 102.24 236.20 8.34522.50 132.70 681.41 24.06 108.42 408.68 14.43 80.51 190.56 6.73522.00 116.50 619.11 21.86 91.47 348.81 12.32 62.13 154.97 5.47521.50 101.30 564.66 19.94 75.50 317.18 11.20 45.85 127.99 4.52521.00 97.25 515.02 18.19 71.26 280.50 9.91 41.40 106.19 3.75520.S0 92.64 467.55 16.51 66.69 246.71 8.71 36.86 87.52 3.09520.00 88.10 422.37 14.92 62.34 213.76 7.55 32.73 69.23 2.44519.50 85.71 378.41 13.36 60.26 183.60 6.48 31.02 53.79 1.90519.00 79.44 337.63 11.92 54.41 155.44 5.49 25.6 40.14 1.42518.50 73.41 299.41 10.57 48.86 129.63 4.58 20.66 28.57 1.01518.00 67.64 264.15 9.33 43.65 104.85 3.70 16.08 17.73 0.63

MDOL(Int) 517.80 64.31 251.18 8.87 41.67 96.62 3.41 14.38 14.95 0.53517.50 62.09 231.72 8.18 38.71 84.27 2.98 11.83 10.77 0.38517.00 56.77 202.00 7.13 34.04 66.19 2.34 7.90 5.94 0.21516.50 50.60 175.16 6.19 28.55 41.16 1.45 3.21 3.69 0.13516.00 44.81 151.31 5.34 23.47 37.48 1.32515.50 39.33 130.27 4.60 18.74 26.93 0.95515.00 34.28 111.87 3.95 14.45 18.63 0.66514.50 30.35 95.71 3.38 11.30 12.21 0.43514.00 26.66 81.46 2.88 8.41 7.30 0.26513.50 23.18 69.00 2.44 5.73 3.77 0.13513.00 20.00 58.21 2.06 3.39 1.49 0.05512.50 17.24 48.90 1.73 1.74 0.93 0.03512.00 14.72 40.91 1.44 - - -511.50 12.38 3.4.13 1.21511.00 10.26 28.47 1.01

SPWAY CRST 510.60510.50 8.48 23.79 0.84510.00 6.87 19.95 0.70 - - -509.50 5.43 16.87 0.60509.00 4.82 14.31 0.51

BED LEVEL 500.17 0.00 0.00 0.00

Live Storae" 595.53 21.03 455.6 16.09 294.12 10.38

MDOL Minisui Drawdoain Level (Int) Interpolated ValuesFRL Full Reservoir Lel iwhich is 23.43m (or 76.87ft) above bed level.

-148-

ANNEX 13Page 1 of 2

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

Local Procurement Procedures

1. As of June 30, 1987, GOAP has constituted a state-levelCommissionerate of Tenders under the administrative direction of the ChiefSecretary. This is a full-time body which finalizes all tenders and contractawards above Rs 30 lakhs (about US$ 230,000). Contracts below this thresholdare managed by the individual departments. HMWW believes that thisarrangement will expedite procurement decisions. The HMWW has agreed toestablish liaison with this Commissionerate with a view to reaching a decisionon the specific procurement matters related to this project which will requireits approval.

2. Local competitive bidding procedures have been reviewed and areacceptable subject to the following. These matters will be addressed indrafting the model documents for use in this project.

(a) Although mandatory registration of bidders prior to awards wouldbe acceptable, no restriction should be imposed on bidding byinterested and qualified contractors, as provided in 2(f) below.As appropriate, the inclusion of post-qualification criteria - inthe absence of pre-qualification - will permit an adequateassessment of bidder's capabilities to perform the contract asprescribed in the document.

(b) Tenders will be invited by advertisement in the press. Togenerate competition, advertisements should be in newspapers ofwide and general circulation in the major cities of India. Anadequate bidding time, normally not less than forty-five days,should be allowed.

(c) If a "two-envelope' system (one technical and one price) is used,then there should be a "two-step" bid-opening procedure, by whichthe technical envelopes of all bidders are opened in the firststep and, after a review, the price envelopes of only qualifiedand responsive bidders are opened in the second step.

(d) Bid security (EMD) amounts, calculated at a pre-determined rate,should be shown as a fixed amount and not as a percentage in thebidding document and be valid for thirty days longer than the bidvalidity.

-149-

AMEXPage 2 of 2

(e) There will be no preference for domestic bidders, if foreign firmsshould participate in local competitive biding, nor will there beany preference given to any class of bidder, such as Central orState undertakings, sma.lI-scale industries, local labor societies,unemployed engineers, scheduled caste or tribes, etc. on IDA-financed procurement. This "no preference" would include price,product, bidding terus and conditions, waivers such as EHD orperformance security, etc.

(f) Procurement through 'Rate Contracts' of the Directorate General ofSupplies and Disposal (DGS&D) is not acceptable as a substitutefor local competitive bidding.

- 150 -

INDIA ANNEX 14Page 1 of 4

HYDERABAD WATER SUPPLY AND SEWERAGE PROJECT

Operationial Action Pa

Pur2ose and ScoDe

1. The purpose of Operational Action Plans (OAPs) is to assist theagencies in Andhra Pradesh having project implementation responsibilities withthe management of the project and to assist all concerned with the project,including the Bank, with activity and progress monitoring.

2. The OAP presented here covers the first two-year period followingthe Bank's appraisal of the project in March 1988. However, this plancontains provisions for: (i) the preparation and submission to the Bank forreview by March 31, 1990 and at annual intervals thereafter, of a revised andupdated OAP covering the subsequent two-year period; and (ii) commencingDecember 31, 1990, and at quarterly intervals thereafter, the preparation andsubmission to the Bank for review, of project progress reports.

Notes to This ORerational Action Plan

3. OAP Item 12 : Procurement Documents. The standard, or model, biddocuments for each of (i) International Competitive Bidding (ICB) - Goods,(ii) Local Competitive Bidding (LCB) - Goods and (iii) LCB - Works would eachinclude :

(a) Invitation to Bid(b) Instruction to Bidders(c) General Conditions of Contract(d) Form of Bid Security(e) Form of Performance Security(f) Form of Agreement

4. OAP Item 21 : Procurement Documents. Given the sets of standarddocuments as described in para 3 above, the additional requirements for aparticular tender invitation and contract would be (i) filling out certaincontract-specific details in some of the documents (a) to (f) above - and (ii)providing :

(g) Special Conditions of Contract(h) Technical Specifications(i) Schedules of Supplementary Information to be provided by

Bidders(j) Drawings(k) Form of Tender(1) Tender Advertisement

_ 151 -

ANNEX 14Page 2 OF 4

DIA W-AIO WAT DPLY hi UhI4ZTTIW4 POJT _ Y ur& r-Oct-89~~~~~~~~~~~~. . ... .. ......----------..---.-..--.. .....

IYIATWDJ. ACTION KM4 ON RERfeCE- ----- _ r vf OR

ii. rn* sc AIu TAFON ACTUAL C* WHO RsEARS

(A) ACT1 N 9 AT iWO. s", 1_,SL DiCLWDG 01101 1D _ OTIAT20

*1s Re. e lemeat iProvide to t he ees of the iwtltutlen. the ters of Sebt 21, OA Before Negotiationsmad reference, ad the iual ificatina and emperilece of the key peregael 198 C5WLETED

Rehk"i I Itati n&;mdt or u oswlst d tI h owsino AR Awtion Plan for the SIngree Wm Reeervor. eptm&le to

the lank.

2 R*mttlmt Provide o th Bank a Plea. acceptble to the Buank for the Fe Ju 15. COAP Before Negotiatons.mad Resettlement ad Rehebil ltetln of theme people of#66"d by the 1 1 See Anne. 7 for

RhbbitxXtoti on Siaur Ome ma eAerveir. important detailsof Plan sgreed withthe Benk.COMPLETED.

3 Des Safety Provide to the SDnk pragoela concerning (i) the names of moemero of Sept 6 COAP COWftLETED DRP toand the One Review Penel (DRP); (ii) the de1e of the for_el appointsmnt 1988 be maintained.

Yield of the W; end (i i i) the satimeted dat of the ORP'a rort.

4 Doe Yield Complete tho hydrology end flow regime modelling for the Menjirm basin Jan 15 COAP Resers oir operatnot:rov de the rmu to, including uidelines for rervoir operation, 1a end rule no. a

to th Bank for review. Hi8 condition of Boord.

S Des Sefety Provide * cogy of the OM's reporte to the Monk. Foe 2p CA 8 fort Naotiatiotand l969 Repor let

Yield thru' 4th meetingsrec'd by Bank.

6 Organization K(es the Dunk informed concerning tlens end program for the form_l Periodic- DHMAUD Legisletion requiresconstitution of the propoeed yolerabad WInter Supply and S-eare ally enotifieation' forBard. (Legimletion rec.ived the moont of the President of Indim effectiveness.June 20, 18 9.) This is a cond tio

Of Board.7 Orgarization Provide to the Omnk e copy of the logieletion form lly constituting When DHMAUD Copy of Bil

HgS88 upon approval. Available received.

8 Org:nization Review organizational arrongaments under the Manager of Finance (MoF) May 30 HPWd/and Staff in lg t/44a; select end eppoins *taff. 199 HiOxSSB

9 Organization Complete the organization and staffing of the HW/HM1SS8'* Project May 30 HR*v/and Staff Cell. 1990 4H5ssi

10 Staff Advise the anek concerning the qualif ictions end eerienca of the Aug 23 H Before NegotiationsManager of Finence (Director of Financ end Accounta) nd the time 1988 CO1PLETEDwhen the appointee ectually assums thi- position.

11 Project Complete and submit the Final Project Prupnertion Reports reflecting the June 30 HH4 COMPLETEDPreparation Dunk comente on the drafts provided by th mpp rai nsl mission. 988 Consult ants

12 Procurement Appoint consultante to assist with the preparation of model bid Sept a lF CCAPLETEDdocuments for use throughout the oroject, end prequalification end 1988 (See OAP par 3bid documents for critical priority contracts which are the eater on page 1)treatment plant and the pumps and motors for installation atPeddepur. This technical work shall also include a review of theair vassal surge tank design.

13 Procurement Review the BDnk's letter to low of January 27, 1988. on procuremnt; Sept 15 HF4W ASSLUHED COMPLETEDshare contents with consultants on eppointoent. 1988

14 Procurement Establish and maintain Iiasion with OAP's Comiasionerate of Tenders. April H In Proceas1988

15 Procurement Reaond to the Bank co_ents on the documents prepared and furnished Dec 31 HlW Before Negotiationsto the Dunk under OAP Item 12 and obtain the Dunk's approval. 1989 Docunonts cFeoined.

Substantial Bankcommient p,onided.

16 Finance Secure the Bank's concurrence with a COAP propoexl for a payment Sept 30 DHMALOD Before Negotiationsplan for arrears of stsndpoat charge due I4H from M1CH. 1988 HI COMPLETED

17 Finance Institute en annual revioe of H} finance. in the context of a medium Comeenc COAP Not yet due.

term projection of exapnditures. June HHILiSS1990

(6) PROJECT IMLET TATION

18 Land Issue draft notification for ill land acquisition requirod for Memr 31 "*We8Acquisition complete implementation of the Project Components I thru' 4 including: 1990

Eati mte*JArea (he)

Component 1: Land for staff quarters along tronesission maine 17.57

Component 2: Land for Water Pumping Stations at Hussainsagar 0.15at Bojagutta 1.00

at Jubilee Reservoir 0.80

Component 3: Land for Sewage Puxxing Station at Moaabegh 0.25

19 Land Complete 1ll Land Acquisition required for implementation of Project See COAP Land acqwisition

Acquisition Component 6 - Resttlemnt end Rehabilitation. Remrke for new villagesettlements

- 152 -

ANNEX 14Page 3 of 4

S3OSA Hfi~mAmA V'.f USDPY NC SANITATIN ~J=T ti-Oct-S

OIATWONAL AION PLAN

____________ REFPReBCE

Z TUP4L ATiMON TAET ACrUL. Bi WHO RE4AfKS

SteewegeM meDeleP a dti led Aetian Plan fw the prpearetion of Dec 31lWSEPr,smllflaatleaasi guants and Applei_cAi lwiltetAen Advertisemente I"f=l e1 tarat fer Uhid, it is prepemed to invite praulfltlnam liete, before Ibret SI. 1991

21 Preevre. Develop a de;iled Action Pima for the reiv an fdai"i en of Doc 81the paiade, of the Bid beumtea. a" ineladed in OAF Item 12. *e l95rqired for all eantr.c in Project C.epenet 1. the

Jiro Phsa 1II. Stage 1 Xeete (am tAP pore 4. page 1).

22 Procuresen Implement the Action Pla1 developed uadr UP ItemS 20 and 21. See i 4VSM Target Data to bePemrkg detoreined under OAP

Iteaa 20 and 21.

2UD Safety Prepare an Action Piln far the coaplet;enof all *1inegtioseft, Dec 31 OAPtest, tudi es aN rporte reomeanded by the W. 1959

24 Dom Scfety Devslop fire doeription of phyeical meu_ree recomded by the 0- may Sl COAPto eesre the aefety of tho Singur d- prer s-timte- 1990final deeon end impleeentstion lchedue and rocurent plan.

2S Peoettleesnt Couplete final deeigne nod bid document. for infraetructure Nor 31 COAPand oea.truction. Prepare detailed implemntation schedules and 1990 Collactor

Rehablitation procurement plan. Kedak.

26 Rseettlement Prepare detelled plan for irrigation boravelI eeetruction program Jun 30 CoAPand based on egging greudvater aurvays end ae.eeeeanwte of 1990 Col actor

Rethabil tation iriaation water deeand. Kedak

27 Resettl-e_nt Prepare deti led plan for the employment and self-eploy_ont training Jun 30 oAPand fch-eea for th. reh ablitation of foreer ersinal and emIl farmers 1990 Collector

Rehabilitation affected by the Singer don reeerveir. Medak.

Technical The following era the steps involved in the recruitment of ConaultenteAssistanea for the provision of the Technical Assistance included in the Projct.

(i Final ize Tere of Reference (Outl ine ToJ In Anvac 8)(ii Prepare Propoeel Ifvitation Docunta inluding Draft Contract.;

(iii Prepre ehort-liita of euitably-quslified conautenta;(i Furnish (i). (ii) and (iii) to the Bonk for approval;(v Invi;te Prepoeele f ree short-listed Consultants;

(vi Receive Propal invited in (v);(Vii Evaluat Prooeie receined under (.i);

(vi i Select counterpart staff to work With cort."ltente;(ti) Negotiate draft eontrect uith coneultent *elected under (vi;);

(! FPurnih tevluation and draft contracts to Bank for appoal;(w1 Sign Contract upon receipt of llnk approal.

Steps (iv), (vi) and (ai) are echeduled below.Month

WATOR SUPLY End

2a 7.21 Surveys and Infr,ot. Mapping Steps . V) Dre't to lank Jun 90 HMSS8v i R ec P ops l- Au 90si. Sip" Contraect SeP 90

29 7.22 Uncecounted-for Vetot Mensat Studiee Steps (iv) Docta to lank Jun 90 HKSStvi Rec. P oposele Aug 90

(xi Sign Contract Sep 90

30 7.28 Detailed Distr;ibn Anal, and Deeign Steps Civ Doce tto Bank Jun 90 HiWdSProject Component 2 (i) ReC. Propeeele Aug 90

xi Sign Concract Sep 90

31 7.24 Sy-t_ Operation and 04intanenca Steps iv Docuwnta to Bank Ner 91 H4dSS8(Wter and Seowrage) ;v; Rec. Proposals may 91

(ai Sign Contract Jun 91

SBElACtE AND SANITATION

32 7.T2 Industrial Waste Menaet Studies DLEiTDSever Uae Raglatione

33 7.2 Sener Condition Asesmeent Studie: Steps iva Documenta to lank Jun 90 0IMWSS8'i Receive Propoa l- Aug 90(ci Sign Contract Se 90

34 7.84 Detailed Deein Step- iv Documents to lank Jun 90 HMWSSSProject Ce_onent 8 i) Receive Propoe l Aug 90

Sci) Sign Contract Sep 90

aS 7.41 Lim Coat Sanitation Studies o DELEDProj ct Component 4

RESETTLUENT AND RESAIL1TATION EVALAATION

38 7.61 Appo nt independent social (iB) Doeant to lank Doe 89 COAPscience rsearch instit'n. (vi R-ceive Propoeele Fab 90 COAP

(i Sign Contract Mer 90 CO*.

- 153 -

ANNEX 14Page 4 of 4

ltOI : 8 WATT S MD SkMITATIN PMOJWT 6-Oct-09

OPEtATICNL ACTION ------------------

He TOPIC ACrION TANOT ACTWUA eV REwiB4CE

(3) P-IJwy WVLBTATION (CONT 'D)

- -- - -- - FDN*4CIAL I 0 _OST S1TUOI5

S7 7.9 1 Acsount'g ;ni Hence' tni f'tn Syt Sts Ooc'De to Sent Her 90 I9 aV lec. Proposals Hy O

i Sign Contract Jun a90

SS 7.2 Project Planning and Central Syst. Ste iv Documnts to Sen Her 90 HWSSVi Roceiv Proposel May 0ai) Sing Contract Jun O0

39 7.93 Water Billing and Collection Syste. Steps iv Doce to St Ner 90 H4SSvi Receive Propoel may 90xai Sign Contrect Jun 90

40 7.94 Heterials Henaegt end Stores Inventory Stop. Civ) Dec'. to Sln Jun 90 I4d:vi Rec. Propoeel Au

i Sign Contract Sep 90

(C) P eO4O.E TRAININO Honth______________________ End

Trsining Engage Consultant, to conduct studies end prepere recoeme_ndtione

41 7.71 Pereonnal Training Studies DEETED

Complete Preoaration of a Training Plan Sep 90 COAP/R*MS8

42 Review Report on Training Studies In consultation with th. Benk. Her 91 F1SBpreoar and formally adopt en NOW Personnel Training Plan and BAM6related policies.

43 lepl ent agreed H1WSS8 Traiming Plan. Continuous 151ssB

(D) FINAwCE AND AuDiT

44 Adit; See Covenants. Fab 90 COAPand AND

annu I ly P f455threfter

45 Standpost Implement the plan for the payaent of ICH arreere due HW9 for Contin- OCAP See OAP Item 16Charge stsndpost charges. uoueAr rea r

(E) PROCRESS REPORTINC

46 Progres Commencing Merch 31. 1990 and at quarterly intervals Coemence HSSBReporting thereafter furnish proeptly to the Sant project progree and Her S1, CAP

etetue reports, having a for-at ana content to be developed andin consultation *ith the Bant. quarterly

intera Iathereafter

47 Operational Furnish to the Bant, commencing Horch 31, 1990, and at annual Promptly 149i5Action Pian intervals thereafter, an updated Operational Action Plan for the after COAPUpdating project covering the subsequent two-year period. Her 31, 90

endannual

int rva lsthereafter

-154-ANNEX 15

INDIA

HYDERABAD WATER SUPPLY AND SEWERAGE PROJECT

MCH ProDerty Tax Structure

1. Property tax is levied on all the lands and buildings within thelimits of MCH under Section 199 of the Hyderabad Municipal Corporation ofHyderabad (MCH) Act, 1955. The property tax is the aggregate of: (i) GeneralTax, (ii) Conservancy Tax, (iii) Drainage Tax and (iv) Light Tax.

2. It is charged as a percentage of the assessed "Annual RateableValue", which is notionally the annual rental value of the property.

3. The tax structure for residential properties has not been revisedsince 1974 since the maximum rate (of 30%) admissible under the MCH Act hasalready been levied. The tariff structure for residential properties is asfollows:

Annual Rateable General Conservancy Drainage LightValue Tax Tax Tax Tax(Rs (%) (%) (%) (%) Total

Up to 300 - - - - - - - - E X E M P T - - - - - - - - - -301 - 1200 2 9 3 3 171201 - 2400 4 9 3 3 192401 - 3600 7 9 3 3 223601 and above 15 9 3 3 30

Tax Structure for Non-Residential Property

4. Non-residential properties include commercial and industrialproperties. From April 1982 they are being charged at 30% of the Annual RateableValue (ARV) irrespective of the ARV slab.

Tax Structure for Places of Public WorshiR.Charitable or Educational Properties

5. These properties are exempted from the payment of General Tax butare subject to payment of service tax at 15 percent, comprising 9% ConservancyTax, 3% Drainage Tax and 3% Light Tax.

Tax Structure for Central Government Properties

6. For the Central Government properties the ARV is taken as 9% of thecapital value notified by the Government. Service taxes are levied at 75%, 50%or 33-1/3% of the regular Property Tax, depending upon the level of serviceprovided by MCH to these properties.

- 155 -

ANNEX 16Page 1 of 3

INDIA

HYDERABAD WATER SUPPLY AND SEWERAGE PROJECT

HMWSSB Financial Prolections

Major Assumptions

Revenues

1. Tariff increases of 80? in FY 1994, and 15? each year thereafter, willbecome effective.

2. Water availability and system losses will be as follows:

WaterAvailability Losses

Year (Hld) (Z)1987-88 205 301988-89 450 301989-90 600 281990-91 600 261991-92 650 261999-93 750 261993-94 750 261994-95 750 261995-96 750 261996-97 750 261997-98 750 26

3. Collection efficiencies for domestic, industrial and commercial billingswill increase over seven years, reaching 807 for domestic andcommercial, and 902 for industrial.

4. Current MCH standpost arrears will be paid in five equal annualinstallments, beginning in FY 1989.

Operating Costs

5. Employee costs will increase 102 per annum.

6. Power costs will increase 20? per annum.

7. Other operating and maintenance costs will increase 8Z per annum.

8. Depreciation of fixed assets is based on the straight-line method, usinga 33 year asset life.

9. Additional operating costs for power, staff and chemicals related toadditional works to be commissioned have been taken into account, andhave been based upon historical experience.

ACTUAL. F90JiscIEUs

1961-34 1934-JIS 1933-96 1986-61 19.97-U0 19-6-9 In9-90 1990-91 1991-92 199-93 1993-94 194-95 1986-f6 1996-87 1901-941 199-99

REVEUEUATER SUPPLY SERVICE ml 22 92 16 7? AS 70.33 121.33 204.35 108.28 363.63 409.21 399.41 730.69 9143.46 3901 66 1192.33 1188.90 131. 36

IsMERACE SERVICE 0080 0-00 0-00 0.00 0.90 36.39 42.21 40.91 31.21 3053.1 113.06 126.13 139.34 110.19

TOTAL REVENUE 3I 32 32.16 17.6 1 0.18 121133 204.33 200.261 400.11 451342 439.34 316.20 1049.44 1120.70 1226.66 l1322.3 W 161.6

VAlEN SUPPLY SERVICE 14 95 as 01 93.33 101.93 120.00 161.66 204.21 234.60 291.21 333.11 431.02 323.02 631.32 709.23 365.34 9163.99

SIVIACAE SERtVICE 0.00 0.00 0.00 0.00 0.00 15.41 20.01 31.31 23.33 28.51 43.31 431.99 51.19 28.964

TTAL. COST 14.93 33.01 93.33 101.93 120.00 161.66 104-21 271.01 311.44 333.59 480.81 216.33 614. 66 156.31 Of6.172 I1936.4

113,3.051 (DEP1ICl)

WA?uR SUPPLY SERVICE 6.37 (2.423 (17.333 (31.733 1.33 42 69 106.07 109.02 117.04 64.72 273.63 413.34 306.32 392.10 360.21 319.36

SINUACE SERVICE 0.00 0.00 0.00 0.00 0.00 1.649 22.13 19.03 S9."6 77.00 99.15 11.96 31.31 96.39

TOTAL. SI*tPIUSI(DEP3CIT) 4.3? (2.92) (17 * (31.15) 3.33 42.63 104.07 123.30 139.06 32.76 333.23 492.91 664.99 419.13 425.63 613.0- C

DIMT SERVICING.

1.90 REPAY2EIES( WATER) 0 (10 0 00 0.Do 0.00 0.00 0.00 0.00 0L90 0.00 0.00 6.16 14.13 39.16 46.39 35.53 16.63

INERIEST(WAIM)13 0.00 0 00 0.00 0.00 0.00 0.00 0.00 0.90 0.00 0.00 211.661 2331.26 20. 19 270.86 292.6 323.51

LOA" 6EPAI3EIItsEVERACE.) 0.130 0 00 0.00 0.00 0.00 0.00 0.00 0 90 0.00 0.00 0.91 3.23 1.23 31.55 15.12 19.47,

INTM31ST(SEWERACE) 0.00 0.00 0.00 0.00 0.00 0 00 0.00 0.00 0.00 0.90 54.90 66 Ss 711 5 72.35 19.33 61. 9

TOTAL DEBT SERVICIW(. 0 00 0.00 0 00 0 00 0 00 0.90 0.00 0.00 0.00 0.90 210.92 527.02 371 60 490.06 433.81 614.06

DEPEECIATION:

WAITER SUIPPLY 0 00 0.00 0 00 0.00 0.00 6.30 12.27 21.39 38.26 53.3. 14.03 92.50 395.91 U1.4.99 11.7.59 11369

SEWERAGE 0 00 0 us. a 00 0.00 0.00 1.20 3.13 5.26 9.06 13.13 13.01 23901 26532 29.32 29.32 1.32t

00'

MO(

P.4

ACTUAL P11aZCT1c

PARTKcuLARs I- I - I1983-64 1904-05 1905-0C 1996-07 1981-60 1900-9 1969-90 1990-91 1991-92 1992-93 193-94 194-95 19S-96 1996-?7 19-6 193-"

OPENIINC SALANCE 22 4 *5 4S s010 l 5151 67 55 213.71 271.53 375.60 503-10 613e09 66.04 69. 24 025.15 06251 92.76 906 .5

CANH li. _.

HIkyth- . .. .,.' I' . 1 / .1, 83) (31 15) I 15 42 69 104 07 121 50 1)9.9 53 176 333 31 49291 Z4.06 410.15 425.63 615.92

^4 u.. A-.).] h.,.....A .tI- .*tAAj.

LE I k1, Ak.A I4IM, . -., U UO 0 00 0 00 0 00 0 00 14 41 56 10 123 98 l46.0J 0 00 0.00 0o00 0.00 0.00 0.60

GRANT IN-AIl 1 u3 1( la 14 4* 14 48 Is 12 15.12 0 00 0 00 0 00 0.00 0.00 0.00 0.00 0.00 0.00 0."e

CAPITAL RECEIPTS

GOVT GRANTS 4 o0 Ha 19 120 00 199 46 312 S 250 00 229.1U 132 40 120.69 20.99 20.99 12.39 12.59 12.59 0.00 3.e9LOANS 0 00 0 00 0 00 0 00 0 00 0 00 124 63 107 95 519.10 499.04 413.9 431.01 191.17 65.16 e.06 S."e

CONTRIBUTION FROM lENEFICIAtY 0.00 0.00 0 00 3.15 3.15 5.1U 5.I 3.15 1.15 0 . o 5(Lo. Cost S.r.Ir.t lot,)

TOTAL LASH IINFLOW l1 90 100 15 114 65 12 19 328 95 107.1 4.76.32 624.35 906.90 303 79 I44.16 939.72 612.97 569 .6 42S 65 6 13.92

CASH OUTFLOW

CAPITAL EXPENDITURE 40 bt as 71 125.24 LW14 102 79 250 00 355.79 440.35 672.94 561 10 540.93 476.51 236.91 120.99 50. 50 .0_

LOAN REPAYMENTS

WATER 0 00 0 00 0 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 *.16 14.13 50.16 46.56 61.51 74.65

SEWERAGE 0.00 0 00 0.00 0 00 0.00 0.00 0.00 0.00 0.00 0.00 0.91 e.25 .50 11.55 15.15; 19.67

INTENEST ON WATER PROJECT 0 00 0 00 0 00 0 00 0.00 0.00 13.51 45.94 99 9S 151 33 211 Y0 255.20 20. 1 270.24 26. 24 22.5 1

INTEREST ON SEWERAGE PROJ o 00 0 00 0 00 0 00 0.00 0.00 2. 9 10.57 24.00 37-53 54.00 66.30 71.55 72.55 70.51 6.t95

TOTAL CASN OUTFLOW 40 66 *5 73 125.24 166 14 182.79 250.00 372.26 4.96.5 796.92 750.04 011.76 813.25 614.60 e 529.1 446.01 646.9

ACCUILATED CASH BALANCE 45 Is 80 10 51.51 41.36 213 13 271.53 313.60 303.10 613.09 666.64 499.24 5.15 83.51 922.16 906 .8 817 54

0 0

s~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~04p

. 158 - ANNEX 17

INDIA

HYDERABAD WATER SUPPLY AND SANITATION PROJECT

Economic Aspects - Rates of Return

WAT hUPPLY AM U :6tAO IC ANALYSIS WOAILS ( DPWr6 lOCIE

Cap itaI and Net RevenwesCap itl Incr_ental not Operating Incl (Revenues laa

Expenditures OP*Ietin Coets Expenditure. Revenues Cot-aInec_ntal (lbRe million) (R l lHion) (e iMillion) (Re Mill) (Rs millionWa er Sold ------- -------------

------------- 7-- Aidjl) Net ef Incl. A;.(1) Adi()YEAR Mi-d 7 l *ill Market ( D801) ep n Dep'n Nominal (6601) No-nal (0)

1 198 -89 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.002 199 -90 0.00 0.00 38.56 37.94 0.00 0.00 3.58 37. 94 0 00 -35 56 -37.94

1990 -91 0.00 0.00 82.94 81.33 0.00 0.00 82.94 81.35 0.00 -82.94 -88.534 1991 -92 0.00 0.00 431.68 460.71 0.00 0.00 431.65 460.71 0.00 -431.85 -480.715 1992 -93 0.00 0.00 481.65i 4t0.71 0.00 0.00 431.565 460.71 0.00 -431.66 -460.716 1993 -94 135.00 49.26 352.09 375.80 61.26 61.26 413.35 437.06 t68.84 -247.51 -271.227 1994 -_9 135.00 49.28 267.45 215.46 81.28 81.26 328.71 348.72 190.72 -137.99 -156.008 19S -9e 135.00 49.28 79.86 84.92 61.26 81.26 140.82 14 .18 209.79 68.97 63.619 196 -97 185.00 49.28 11.65 12.65 61.26 61.26 73.11 73.91 230.77 157.66 156.86

10 1997 -98 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 253.84 192.5S 192.5811 199. -99 138.00 49.28 0.00 0.00 61.26 127.19 61.28 61.26 279.23 217.97 217.9712 1999 -00 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9713 2000 -01 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9714 2001 -02 135.00 49.28 0.00 1.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9715 2002 -03 135.00 49.28 0.00 c.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9716 2003 -04 13t.00 49.28 0.00 C.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9717 2004 -05 133.00 49.28 0.00 0 00 61.26 127.19 61.26 61.26 279.23 217.97 217.9718 2008 -06 138.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9719 2006 -07 185.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9720 2007 -08 135.00 49.26 0.00 0.)10 61.26 127.19 61.26 61.2C 279.23 217.97 217.9721 2006 -09 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9722 2009 -10 133.00 49.28 0.00 O.C0 61.26 127.19 61.26 61.26 279 7i 217.97 217.9723 2010 -11 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9724 2011 -12 136.00 49.28 0.00 0.0' 61.26 127.19 61.26 61.26 279.23 217.97 217.9725 2012 -13 135.00 49.28 0 00 0.00 61.23 127.19 61.26 61.26 279.23 217.97 217.9726 2013 -14 133.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9727 2014 -15 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9728 2015 -16 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9729 2016 -17 138.00 49.26 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9730 2017 -18 138.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9731 2018 -19 133.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9732 2019 -20 135.00 49.28 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.9733 2020 -21 135.00 49.26 0.00 0.00 61.26 127.19 61.26 61.26 279.23 217.97 217.97

AIC Rs/m3

PRESET VALUES FOR Nor na1 Shado.DISCODLT RATES OF ---- ------- -------

01 1379.64 1692.74 1806.72 1715.28 3297.6 3408.02 3522 7473.25 4065.23 3951.25 2.47 2.5581 370.64 1134.21 1210.58 4e0.75 806.00 1594.96 1671.33 1903.52 308.56 232.19 4.30 4.5191 324.01 1081.98 1154.76 402.77 697.43 1484.70 1387.55 1651.96 167.26 94.41 4.56 *.81101 284.77 1032.67 1102.20 384.00 608.22 1366.67 1486.20 1441.41 54.74 -14.79 4.87 5.1111 261.66 986.22 1062.62 312.71 527.87 1298.93 1365.84 12U.i0 -34.83 -101.24 5.16 5.4312J 223.27 942.39 1001.88 277.54 462.62 1219.94 1283.39 1113.89 -106.04 -169.50 5.46 5 75131 199.03 901.01 961.68 247.42 407.25 1148.43 1209.10 918.93 -162.50 -223.16 5.77 6.0714S 178.18 81.92 919.98 221.46 360.04 1063.38 1141.42 876.33 -207.05 -265.08 6.08 6.41

Notes: (1) A standard conversion factor of 0.6 was applied to the foreign of R t rrexchanae component of investment cost. ----------------

Noeinal Adj. (1)(2) Costs and Revenues are in conetent 1988/89 Prices. ------- -------

10.5681 9.851

-159-

INDI r~~~~~age I of 2INDIA ~~X1HYDERABAD WATER SUPPLY AND SANITATION PROJECT

List of Selected Documents on the Proiect File

HYDERABAD WATER SUPPLY - TEC8NICAL

HWS-04 GOAP - Information furnished to IDA mLssion to Hyderabad Kay 30 - Juno 6, 1987, on Manjira WaterSuDD1y Scheme Phase III (Singur Project).

HWS-05 Notes on Works of Singur Project presented to the World Bank Team on June 2, 1987 (the Sin urDm).

HWS-08 Note on the Augmentation of Drinking Water Supply to the twin Cities of Hyderabad and Secunderabadby exploitation of Groundwater: 1983.

HWS-09 Estimation of Groundwater potential within 15 km radius of Hyderabad City; (prepared early1987 ?).

HWS-15 Rehabilltation needs at existing Water Treatment Plants; Mr S. Chandra of TATA ConsultingEngineers, Aug 24, 1987.

HWS-19 Yields from Sources - Suimmary of Observations Made on the Hydrologic Data (Himayatsagar,Osmansagar. Singur).

HWS-20 Report of the Expert Committee on Augmentation of Drinking Water Supply to Twin Citiesof Hyderabad and Secunderabad from Krishna/Godavari River, May 1987.

HWS-22 Singur Project - Water Availability Studies; GOAP Irrigation and Command Area DevelopmentDepartment Undated.

HWS-25 'Water Treatment" TATA March. 1988.-Description-Appendix 1 Existing Water Treatment Plants: System and Operating Data:Shaikpet, Asifnagar, Rajampet. Kalabgur.-Appendix 2 Water Treatment Plant Report; August 24, 1987.-Appendix 3 Existing Water Treatment Plants - Rehabilita,ior (Cost) EstimateTATA March, 1988.

HWS-27 "Water Supply - Final Project Preparation Report for HyderabaA Water Supply and SanitationProject"; TATA Consulting Engineers, June 1988. (Vols I and II)

HYDERABAD SEWERAGE - TECHNICAE

HS-01 Report on Remodelling of Sewage Treatment System, Hyderabad; National Envircnmental EngineeringResearch Institute (NEERI), Nagpur; December 1981.

HS-05 Feasibillty Report on Remodelling of Sewerage System in Hyderabad Urban Area: June 1987.

HS-07 Note on Remodelling of the existinz seweraee system of Hyderabad and Secunderabad includingCantonmnet Area; (Note: Annex I - Statement showing Drainage Revenues 1980-81 to 1986-87: Mar 3.1981, Circular re basis of Drainage Charges: Ordinance of July 15,1983 - revisions to theHyderabad Municipal Corporation Act re Drainage Charges; Progress of Works taken up under Stage Iof Remodelling of Drainage System. (2 copies)

HS-12 Report on Remodelling of Sewage Treatment System in Hyderabad, Vols II & III; NationalEnvironmental Engineering Research Institute (NEERII, August 1985 and March 1986 respectively.

HS-15 "Sewerage and Sanitation - Final Project Preparation Report for the Hyderabad Water Supply andSanitation Project'; TATA Consulting Engineers, June 1988. (Vols I and II)

-160-

ANNE 18Page 2 of 2

HYDERALAD SANITATION

8SN-02 Improved Sanitation end Environmental Health Conditions - An Evaluation of Sulabh International'sLov Cast Sanitation Proiect in bihara Edgar F. Ribeiro. Chief Planner, Town and Country PlanningOrganization, Ministry of Urban Developmnt, GOT, 1985.

HYERABXAD URBAN

HU-06 Hyderabad Metrooolitan Area - Salient Features; HUDA.

HU-07 BUDA - Annual Report 1985-86.

HU-09 HUDA DeveloRMnnt Plans: Vol I - Hyderabad City, Work Studies, Vol II - Proposal,,Vol III - Report on Master Plan for Non-Municipal Areas.

HU-10 Hyderabad Slum Improvement Project - Phase III (1988-1992) - Revised Report; MCH.

HU-12 Municipal Corporation of Hyderabad: Oreanization Chart.

ANDHRA PRADESH POLLUTION CONTROL

APC-01 Andhra Pradesh Pollution Control Board - Annual Revort 1985-1986.

APC-02 Brief Note on the Nature and Mcniitude of the Pollution and the 3tPES taken by the PollutionControl Board for controlling Pollution; AP-PCB, (1987 ?)

APC-03 Prevention of Pollution of Water and Air and Environmental Aspects - A Background Paper fordiscussion at the meeting of the State Development Board: GOAP Energy, Environment, Science andTechnology Department, ( 1987?).

ANDHRA PRADESH - LEGAL

APL-01 Andhra Pradesh G;zette: Hyderabad Metropolitan Water SuDol1 and Sewerage Act, 1982.

APL-12 A copy of a Bill to Make Provision for Water Supply, Sewerage and Sevage Treatment inthe Hyderabad Metropolitan Area and for Matters Connected Therewith (HyderabadMetropolitan Water Supply and Sewerage Act, LA Bill No 5 of 1989).

APL-12A 'An Ordinance to Make Provision for Water Supply, Sewerage and Sewage Treatment in the HyderabadMetropolitan Area and for Matters Connected Therewith'. (Obtained March 1988).

APL-13 'Descr:tption of Land Accuisition Procedures and Stages Involved'; Simhsmch lam of HMWW, March1988.

APL-13A "Information on Land Accuisition for 4njira WS Phase III, Stage 2 Worki and Sanitation Project';Simhamchalam of HMWW, March 1988.

HYDERAJAD FINANCIAL

hF-02 Hyderabad Metropolitan Water Works (HMWW) - Annual Financlal Statement for the Year 1985-86.

HF-03 Municipal Corporation of Hyderebad - Budget Estimates - 1987-88 and Revised Estimates 1986-87.

HF-05 'Hyderabad Metropolltan Water Works - Financial Evaluatlon and Projections for the Hyderabad WaterSupply and Sanitation Project"; TATA Consultancy Services, May 1988.

HF-06 "Municipal Corporation of Hyderabad - Financial Evaluation and Projections for the Hyderabad WaterSupply and Sanitatlon Project'; TATA Consultancy Services, May 1988.

resigin TaAsedeA .e~~~~~~~~~~~~~~~~ INDIA

N I- HYDERABAD WATER SUPPLY AND~~~- - <- ~~~~~~~~~SANITATION PROJECT

WATER SUPPLY AND TRANSMISSION SYSTEMSsoi >'a' 'a- ,j> \ A ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Reo,2sw U~NME CONRST EXisTING

S.w 0- cl-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- - ramn Pleats--.

00C-SAn2o si, -A -U Goad Leve Se.vic Res--ir

'a>~ ~ ~ ~~7

-- Wat-SheWii (apprax

C - rat 0 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Notonl Capitol

ddq- 2?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ - Sti aadre

A~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~nentoa aadno

I / "N ~~~~~~~~~CHINA- ~~~ aia.n ydarragor -i F' ~~~~~~~~ PAKISTAN 7

ii U. -tr~~~~~ampaliy - ,~lrw Ne Oem, NrEPALNeae UT

I N D I

- C~~~~~~~~~~~~~~~~~~~~A-10~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~T' a t i

4~~~~ - i. -- - I N D IA~~~c

r-d, ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~ hoUe N- -

nai tiorte 9%ai - AlN*rT- C' 7rW ?r'o' 7rM~~~~~~~~~~- in.8-30eobd 'a L- C

JUL y

I I os=nso

ED D RA/B D A

1<1- / 'S. S i C li D A IB A D \

;.1 ''Wk yX , ' \ ,_. s

No -~~~~~~~~~~~~~~~~~~~~-

I N D I A -C~T -ooso\oI. tI

Ewns m/SS M>~x) JubisHllss& 1OM (di.-.., y - F A -<

Irj5 zN r r mrXb_oE G.-d L-.1 . /-

R-

''"'45 0Ti, , 'I~/S Asildo I

ji9Re 75~~~~~~~~~~~~~~~D P-pmg swl==i- St. 6 .. d-i

JsEoloa 5,11'S -- s. ho soos' r r O2IIo,R-

I > - Savyad Nogs.. *O51 Tt5,kle Bs Ro 5-5

\ / A ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~--V :',

ho~~~~~~ G.; dgo.. "

\ A - -- ~~~~~~~ *a~~~riS~~~t 5--

PAK55r1650 *o Ne Ns~ CHINA IN DI Alit DS, KaB-- #; HYDERABAD WATER SUPPLY AND SANITATION PROJECT

,- ssH ~~~~~~~~WATER SUPPLY - TRUNK DISTRIBUtION SYSTEMC I N D I A ; ,PROPOSED uNlER CONS1 EXISTING. _ \ r --~~~~~~~_____ - Mosino (doometen io mm ) _S.f..d, of Monocopol C lilma,

t S ~ ~ ~ ~ ~~~~~~* U U Groo_ndteel SernioaResoorsn Caetooaaton_l ry

\ A@L1rleraLud . o~~~~~~~~~~~~~ Flooeld Seosoce Resemors ® Stat Cappold*5500 t NLR't' dL Filter Beds NEjnIC"

Aw~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Naoaa CapitolPmpn Soios_

5e ' ' ~~~~~~~~~~~~~~~~~~~~~~~~~~~~RoiI,sools

h~~~~~~~~~~~~~~~~~~~~~~7 tSr' .,'S

0 200 40, 640 8?0

/~~~~~~~~~~~~~~~~~s E" k % eA D

H>-~~~~~~~~~~~~~~~~~~~~~ICw 7Ae ~ ~~~~~CIRCLE - 5 :Ci E (EUD0vD5 9

\WARDS 6,7 B)

f 422 m <s~~~,,'CRCE 'Al DSA 5>/tto>

ToIIC J1~~I A,.I IRjLE3)

|~~~~~~~~~~~~~~~~~~~~~~C L- -I0\ I ( -_ WARDS I 5 16,17 18.22,23) - I / /

S t4,(WARDS 2i5 211 I / ^

_ \ /7f'o' ~~~~t \vS.\ _ CA \ //// / I A

-AKISTAN/ ad' K_-CHINA INDIAP^rl5lAs -f'&* ' HYDERABAD WATER SUPPLY AND SANITATION PROJECT

t¾. <sSEWERAGE SYSTEM

N D UN-CNE !OOEP fTR OTN T-.k Sosoers I Intceplons TO Slt C00.toI

-- .'*[ Saaoga TrautmootePlanT P N tooCop,id

4t,,) ~~~~~~~~~~Ras - Inlnloa bnatL~~~ - Iloskoo~~~~~Rd, s

Bo-ndary of Man-,pal Coapral.oa-of Hyd-rbod