Project Concept Document

The Follow on Project

1. Background:

Saturation level for rural water supply in terms of minimum needs has virtually been met in the State of UP, though rural sanitation coverage is very low. The State has also history of involving communities in developing and managing their water supply, first through the recently terminated Indo-Dutch Project and currently through the World Bank funded Swajal Project and the sector reform program of the ARWSP (Jal Nidhi). These projects indicate the general direction in which the sector is moving to ensure sustainable development.

Now since the basic need is almost met, (84950 villages saturated through Hand pumps and 10,000 through Piped Water Supply – a total of 94950 villages out of approximately 97,000 villages of the State) the government should change its role and its objectives. Its role should become that of a facilitator and co financier rather than provider, and the objective should be to encourage communities to take up piped water supply with minimum 50% private connections in all villages.

On the sanitation side the present abysmal level of coverage under sanitary latrines, to the tune of 12% needs to be raised. In this regard, affordable technologies are available for households of all income-level. The government's role should be in awareness and advocacy campaigns and collaboration with manufacturers and suppliers for social marketing of the needed hardware and services.

1.1 Swajal Project:

Government of India received a Rs. 284 crore loan (4056-IN) from the IBRD towards the cost of the Uttar Pradesh Rural Water Supply and Environmental Sanitation Project (The SWAJAL Project). The department of Rural Development, Government of Uttar Pradesh (GOUP), through a Society named “ The Project Management Unit” (PMU) is engaged in the management of the SWAJAL project.

The project was being implemented in 19 districts of erstwhile Uttar Pradesh through 10 District Project Management Units (DPMUs) covering 1260 villages. The project was to be implemented over a period of six years (1996-2002) in four batches. The villages were

selected on the basis of well-defined criteria of Need, Economic viability, Technical feasibility, Sustainability and Willingness to pay. In order to promote sustainability of rural water supply and sanitation systems, the project involved rural communities in planning, construction and maintenance of these facilities. NGOs acted as catalysts in this process, and provided assistance both for community empowerment and engineering support to the communities at all stages of the project, thus acting as Support Organizations (SOs)

After the bifurcation of erstwhile State of Uttar Pradesh on 8th November 2000, into States of Uttar Pradesh and Uttaranchal, PMU Uttar Pradesh now has only two District Project Management Units (DPMUs) at Jhansi and Banda in Bundelkhand to assist it in its working. The Project now covers 357 villages in 7 districts of Bundelkhand region namely Hamirpur, Banda, Chitrakoot, Jalaun, Lalit pur, Mahoba and Jhansi.

The project had two main objectives. The first objective was to deliver sustainable health and hygiene benefits to the rural population through improvements in water supply and environmental sanitation services, which would increase rural incomes through time savings and income opportunities for women, test an alternative to the current supply driven service delivery mechanism and promote sanitation and gender awareness in the targeted villages. This was to be achieved by strengthening the operation of the Project Management Unit and by investing in the selection and construction of water supply and environmental sanitation facilities for single and regional schemes. The second objective was to promote the long-term sustainability of the rural water supply and sanitation sector by providing assistance to the Government of U.P. to identify and implement an appropriate policy framework and strategic plan.

The rationale of the project was to demonstrate that:

•People are willing to pay for water

•Willing to participate in planning and construction of schemes

•Willing to do future O&M without Government support

•Community-based decision-centered model is better than the traditional supply driven one

•Government’s role should be that of a facilitator, not provider

Towards fulfillment of the second objective a Rural Water Supply and Environmental Sanitation Sector Reforms study was undertaken. The main objectives of the assignment were: (a) to identify key policy and institutional reforms needed to ensure delivery of sustainable rural water supply and sanitation service in the entire state of Uttar Pradesh; and (b) to develop a strategic plan for phased implementation of the policy.

2. Sector Reforms Strategy: -

The strategic action plan for reforms encompasses major shifts in terms of service delivery, ownership of schemes, cost sharing, community empowerment, institutional responsibilities etc. Under the reform process service delivery shall be through Piped Water Supply @ 70 lpcd with minimum 50% private connection. Instead of the current supply driven approach reforms would usher an era of Demand Responsive community driven approach where communities pay part of the capital cost and full operation and maintenance costs. Water supply and environmental sanitation will be implemented in an integrated manner with emphasis on sustainable health and hygiene through behavioral change. The lengthy and indirect fund flow will be smoothened through direct fund flow to Gram Panchayats. User representatives through co-option will be provided legal mandate to levy tariffs and decide on hiring construction agencies. The current scetor scenario as to date is depicted schematically below:

The scenario to emerge in Follow on and through Sector Reforms is depicted schematically below:

The follow on project will be field-testing the envisaged sector reform strategic components for eventual scaling up across the State.

The staff Appraisal Report of the World Bank, on current Swajal Project, too, had a vision as early as August 1996 that a Follow- on- Project be brought into at the closure of this project. Para-37 of Annexure-I on page-13 reads as follows: -

" 37 Long term Strategic Planning & Sector Development

a) Next Project preparation: towards the end of the project GOUP will prepare a follow-on project of a larger size for seeking a possible World Bank financing. This will include identification of project area, the project design and implementation strategy, cost estimates and undertaking pre-planning activities in the first batch of villages."

2.1 Development Objective of the follow on project:

The primary development objective of the project will be to improve the quality of rural water supply and environmental sanitation service delivery in the project-area for achieving sustainability of investments and generating sustainable health and income benefits. The secondary development objective of the project will be to assist Government of Uttar Pradesh in creating enabling environment for implementing sector reforms through out the State by demonstrating successful implementation of the concept.

2.2. Subsidiary Objectives:

  • To demonstrate viability of institutional reforms and enhanced cost recovery by developing, testing and full implementation of an appropriate service delivery model in selected project districts.
  • Rehabilitation and augmentation of existing infrastructure through community management and cost sharing.
  • Augment the capacities of Gram Panchayats in managing rural water supply and environmental sanitation service delivery.
  • Promote levels of sanitation: personal, Household and Environmental.
  • Develop models for ground water recharge and management.
  • Promote localized Water quality monitoring methodologies
  • Promote rural health through localized monitoring of Health parameters.

3. Key strategic dimensions relevant to the follow on project:

I ) Service delivery:The follow on project would aim at providing communities with 70lpcd of potable water at their doorsteps through single village piped water supply schemes based on a demand responsive approach. The schemes shall be designed for at least 50% house connections. Stand posts will cover the remaining population. For technical and financial reasons, communities may decide to forego piped systems and install hand pumps only. In all such cases community shall be doing it through their own initiatives and project would not financially support such ventures, except in those villages where still the basic requirement of 40 lpcd has not been met. The project shall place first priority on rehabilitating defunct or under performing existing schemes where piped water supply is the only option. This will also involve reorganization of the schemes into single-village schemes. No new pumping schemes shall be developed without a dependable source of power. Alternative source of Power in the form of Generator sets would be promoted for each scheme as a contingency plan. The project shall assign first priority to areas still not served with the Basic Minimum Need of 40 lpcd of water.

II)Cost Sharing:-. Communities would be sharing a10% of the capital cost and would be responsible for full operation and maintenance of schemes which would be an 100% of O&M costs. A higher share of user financing would be targeted for private facilities or where communities demand service levels higher than the project norm.

4. Institutional Arrangement:

4.1 Panchayat Level

The basic principle of any organization will be to ensure that operation and maintenance are system-based, with autonomy at the lowest practical level in order to maintain contact with the user community. This would take into account the responsibilities of the institutions established under the Panchayati Raj Act. Under the existing statutory framework, Rural Water Supply and Environmental Sanitation (RWSES) functions within the Gram Panchayat (GP), areas are vested in the Gram Panchyats, which exercises them through its Jal Prabhandhan Samiti (JPS).

The field survey conducted under the Sector Study showed that public appreciation for the existing agencies involved in water supply and sanitation is not high. However, it also showed potential for developing the roles of Panchayats and other local bodies in this regard. Swajal project has also tried different institutions like NGOs, Private Sector agencies, Public Sector Enterprises and PRIs and found involvement of PRIs to be most efficient and cost effective. The follow on project would impart central responsibilities to the PRIs in terms of delivery of rural water supply and environmental sanitation services.

Ownership of the public schemes, new as well as existing, whether hand pumps or piped systems, shall be with the Panchayats, as shall be the financial-administrative responsibility for their operation and maintenance. The focus of ownership at local level is crucial as it sensitizes the communities to the need for adequate O&M funded by adequate resources generated through user charges. Any operational deficits shall be made up through fee increase in tariff and/or contributions from the Panchayat resources.

It is pertinent to note that the Gram Panchayats have been vested with statutory power of levying tariffs and using coercive measures for collection of Dues, if need so arises. The ownership coupled with this power would enhance their capability to manage the schemes effectively.

Agreements will be made with GPs for planning, implementation and operation and management of schemes. Joint accounts will be opened with Gram Panchayats for flow of funds directly to GPs for construction and implementation of schemes. Intensive capacity buildings efforts will be undertaken to strengthen the GPs perform their new roles effectively and efficiently.

Through a legislative change the functions of water supply and environmental sanitation shall be integrated. The GP shall be made the owner of the scheme, and the JPS would be vested with the powers of overseeing the works, policy aspects and investment. The members of Villages Water & Sanitation Committees (VWSCs) formed at the user level shall be co-opted in the JPS. The supervision by the JPS would focus on ensuring 100% cost recovery, as any operational shortfall would have to be made up by the Panchayat. The co-option of water users (VWSC members) in JPS would enhance the quality of decision making on policy and investment aspects.

The prime function of JPS shall be to ensure, through participatory decision making, that user communities share in the ownership of the system and as such accept the responsibility to sustain it through payment of agreed user fees. For piped schemes, depending on local circumstances, the JPS may decide to contract out all or part of he tasks relating to production, treatment, and major maintenance of the systems.


Under the JPS responsibility for day-to-day management of the schemes at village level shall be entrusted to VWSCs.

Community Voluntary Organization:

CVOs based on well-defined selection criteria would be employed for assisting communities in carrying out community development activities. CVOs would also be responsible for following activities under the follow on project:

- Group Formation and facilitation

-Baseline Study/ Investigation

-Mobilizing the community for group action, particularly in collecting the upfront cash contribution

-Training and capacity building of Gram Panchayat and its JPS

-Preparation of an Implementation Phase Proposal

Water Supply Construction Organization (WSCOs)

The Water Supply Construction Organizations will be technical construction organizations having experience of constructing Water Supply schemes. These WSCOs would be responsible mainly for:

-Water Yield assessment

-Selection of Water Supply and Environmental Sanitation technology options through a Feasibility analysis

-Detailed engineering survey and Resistively test

-Construction of Water Supply schemes etc

At the district level, the private sector, NGOs and PSUs would compete for contracts to deliver goods and services to communities. The original monopoly of PSUs like UP Jal Nigam and UP Agro would be replaced by healthy competition. Gram Panchayats and Communities would do the allocation of contracts to WSCOs on the basis of transparent procurement guidelines

4.2 District Level: The DPMUs would be responsible for management of project implementation in the district and ensuring that the project development objectives are achieved in the district. The composition and functions of DPMUs would be as follows:

Composition:

  • Project Manager
  • Dy. Project Manager
  • Community Development Specialist
  • Technology Specialist
  • Health and Hygiene Specialist
  • Monitoring and Evaluation Specialist
  • Watershed Management Specialist
  • Other Support Staff

Major Functions:

  • Management of project implementation
  • Ensuring that project objectives are being met
  • Providing CBOs and WSCOs technical support and guidance
  • Assisting communities perform their tasks effectively and efficiently
  • Monitoring and feedback of project progress
  • Assist PMU in taking decisions
  • Any other job assigned by PMU

4.3 State Level:

The Department of Rural Development, Government of Uttar Pradesh and its Project Management Unit at 3, Fawn Brake Avenue would be nodal agency for the project. However, their role in the project would be primarily that of a facilitator rather than that of an implementer. An exclusive institutional structure consisting of State level and district level units would be set up for project implementation. The existing PMU shall function in its existing form, shape and operating procedures. However the only change envisaged at this stage is in its accounting system, as enumerated below.

Broadly speaking, the State level PMU would be responsible for project planning and implementation management. The PMU would also be responsible for implementation of State activities (studies, policy aspects, developing implementation guidelines, etc.), including receipt and management of project funds, accounts and audits and liaison and coordination with the State government and the Bank. Further, PMU will also be responsible for formulating an action plan for establishment of district units. For this purpose, a separate “ Transformation Unit" will be set up in the PMU from the beginning of the project.

4.4 Integration of Water Supply, Environmental Sanitation and Hygiene Promotion: Providing sustainable health and hygiene benefits shall be an essential aspect of the follow on project. The project would strive towards interventions, which reduce IMR, MMR, increase life expectancy etc. It has been realized that an integrated approach comprising water supply, hygiene education and environmental sanitation bears the desired results. Hence all rehabilitation and development of new schemes shall involve integrated planning of water supply, hygiene and environmental sanitation aspects. Plans for development and rehabilitation of schemes shall be made eligible only if they include adequate treatment of other sanitation aspects, such as sanitary latrines, compost pits, drainage solid waste management and hygiene education. For achieving above objectives, the Jal Prabandhan Samiti and Health & Welfare Committee at Gram Panchayat level shall be merged in the target Villages through legislative change.

5. Market Development:

PMU in collaboration with manufacturers and suppliers shall formulate and implement an action plan for market development for sanitary equipment and wares, to make it attractive for the private sector to make the related goods and services available in the rural areas. The project shall monitor the development of environmental sanitation and from time to time evaluate both its own efforts and the involvement of the private sector. Sanitary Marts shall be promoted through SHGs and other Community Based Organizations in the project districts for ensuring easy accessibility of sanitary wares to the communities.

6. Environmental aspect: Several environmental mitigation measures will be included in the project design, and the project is expected to have a net positive effect on the environment (key areas for mitigation measures will be water source protection; acceptable drinking water quality; and safe disposal of waste water, human and cattle excreta, and solid waste). Region specific recharge models would be developed to augment the ground water, monitor pollution of aquifers, conjunctive use and allocation of water to meet competing demand of water. Gram Panchayats would come up with a set of action plan for environmental up gradation on a watershed development mode. Communities shall also bear 10% of the cost towards it. Some of the specific strategies towards protection of water sources could be: