Government of Madhya Pradesh - Project Uday

Government of Madhya Pradesh 

PROJECT UDAY 

(URBAN WATER SUPPLY & ENVIRONMENTAL IMPROVEMENT IN MADHYA PRADESH) 

(ADB Loan No. 2046-IND) 

Project Management Unit 

atus Report 

QUARTERLY REPORT 

(QR-07) 

JUNE 2007 

July 2007


PROJECT UDAY 


(ADB Loan No. 2046-IND) 


atus Report 

QUARTERLY REPORT 

(QR-07) 

JUNE 2007 

July 2007 

File: Qt 07 Jun 2007 Text Rev (00).doc


PROJECT UDAY 


Quarterly Progress Report 

June 2007 

File: Qt 07 Jun 2007 Text Rev (00).doc 

i

PROJECT UDAY 

(Urban Water Supply and Environmental Improvement in Madhya Pradesh) 

Quarterly Progress Report (QR-07) 

June 2007 

Urban Administration & Development Department (UADD) 


Quarterly Progress Report (QP-07) 

June 2007 

Contents 

Executive Summary 

1. INTRODUCTION......................................................................................................................................... 1 

1.1 PROJECT BACKGROUND ........................................................................................................................ 1 

1.2 BRIEF PROJECT DESCRIPTION ............................................................................................................... 1 

1.3 PROJECT OBJECTIVES AND COMPONENT PARTS..................................................................................... 2 

1.3.1 Part A: Urban Water and Environmental Improvement..................................................................2 

1.3.2 Part B: Urban Governance and Institutional Development............................................................2 

1.3.3 Part C: Implementation Assistance ...................................................................................................3 

1.4 IMPLEMENTATION SCHEDULE ................................................................................................................. 3 

2. FUND UTILIZATION ................................................................................................................................... 4 

2.1 PROJECT INVESTMENT AND FINANCING .................................................................................................. 4 

2.1.1 Project Financing Plan ........................................................................................................................4 

2.1.2 Status of Counterpart & Co-financing of Funds...............................................................................4 

2.1.3 Targeted Disbursement Schedule and Monitoring..........................................................................5 

2.2 DISBURSEMENTS AND FINANCIAL STATEMENTS ...................................................................................... 5 

2.2.1 ADB Cumulative Disbursements .......................................................................................................5 

2.2.2 Financial Statements...........................................................................................................................5 

2.3 PROJECT COSTS................................................................................................................................... 6 

2.3.1 Current Scope and Project Investment Status ................................................................................6 

2.3.2 Project Implementation Progress Status ..........................................................................................6 

2.3.3 Variation of Project Costs to Budget Allocation...............................................................................6 

3. STATUS OF IMPLEMENTATION ARRANGEMENTS............................................................................... 7 

3.1 FORMATION OF COMMITTEES................................................................................................................. 7 

3.1.1 Empowered Committee.......................................................................................................................7 

3.1.2 City Level Steering Committee ..........................................................................................................7 

3.2 FORMATION OF PROJECT MANAGEMENT AND IMPLEMENTATION UNITS..................................................... 8 

3.2.1 Project Management Unit ...................................................................................................................8 

3.2.2 Project Implementation Unit ...............................................................................................................8 

3.2.3 Technical and Tender Evaluation Committees................................................................................8 

3.3 FORMATION OF THE SUPPORT CONSULTANTS......................................................................................... 8 

3.3.1 Project Management Consultant .......................................................................................................8 

3.3.2 Design and Supervision Consultants ................................................................................................9 


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3.3.3 Public Relation Consultant .................................................................................................................9 

3.3.4 Benefit Monitoring and Evaluation Consultant.................................................................................9 

4. PROJECT AND IMPLEMENTATION PROGRESS.................................................................................. 10 

4.1 OVERVIEW OF ACTIVITIES TO DATE....................................................................................................... 10 

4.1.1 Infrastructural Improvement .............................................................................................................10 

4.1.2 Social and Community Development..............................................................................................10 

4.1.3 Financial Improved Management ....................................................................................................11 

4.1.4 Institutional Governance ...................................................................................................................11 

4.2 PRE-IMPLEMENTATION ACTIVITIES........................................................................................................ 11 

4.2.1 Imparted Training...............................................................................................................................11 

4.2.2 Tendering Process and e-Tendering ..............................................................................................11 

4.2.3 Outstanding Clearance Issues.........................................................................................................12 

4.2.4 Topographical Survey Work .............................................................................................................12 

4.2.5 Proposed Deferral of Contracts to JN-NURM................................................................................12 

4.2.6 Project Performance Management System ...................................................................................12 

4.2.7 Project Status Progress Meetings ...................................................................................................13 

5. URBAN WATER SUPPLY AND ENVIRONMENTAL IMPROVEMENT .................................................. 14 

5.1 URBAN WATER SUPPLY....................................................................................................................... 14 

5.1.1 BMC Water Supply Pre-Construction .............................................................................................14 

5.1.2 BMC Water Supply Construction Phase ........................................................................................15 

5.1.3 GMC Water Supply Pre-Construction.............................................................................................16 

5.1.4 GMC Water Supply Construction Phase ........................................................................................16 

5.1.5 JMC Water Supply Pre-Construction..............................................................................................19 

5.1.6 JMC Water Supply Construction Phase .........................................................................................19 

5.1.7 IMC Water Supply Pre-Construction...............................................................................................20 

5.1.8 IMC Water Supply Construction Phase ..........................................................................................21 

5.2 WASTEWATER AND SANITATION ........................................................................................................... 24 

5.2.1 Bhopal Wastewater............................................................................................................................24 

5.2.2 Gwalior Wastewater ..........................................................................................................................25 

5.2.3 Jabalpur Wastewater.........................................................................................................................25 

5.2.4 Indore Wastewater.............................................................................................................................26 

5.3 SOLID WASTE MANAGEMENT............................................................................................................... 26 

5.3.1 Bhopal Solid Waste Management ...................................................................................................26 

5.3.2 Jabalpur Solid Waste Management ................................................................................................26 

5.3.3 Indore Solid Waste Management ....................................................................................................27 

5.4 STORMWATER DRAINAGE .................................................................................................................... 27 

6. URBAN GOVERNANCE AND INSTITUTIONAL DEVELOPMENT......................................................... 28 

6.1 SOCIAL AND COMMUNITY DEVELOPMENT.............................................................................................. 28 


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6.1.1 Slum Improvement Component under AIF & CIF .........................................................................28 

6.1.2 Public Awareness Campaign Initiatives..........................................................................................28 

6.1.3 Gender Action Plan and Field Manual ............................................................................................29 

6.1.4 Land and Resettlement Issues ........................................................................................................29 

6.2 FINANCIAL MANAGEMENT .................................................................................................................... 30 

6.2.1 Common Project Incremental Costs ...............................................................................................30 

6.2.2 Financial Improvement Action Plan.................................................................................................30 

Bhopal Municipal Corporation .....................................................................................................................30 

Gwalior Municipal Corporation ....................................................................................................................31 

Jabalpur Municipal Corporation ..................................................................................................................31 

Indore Municipal Corporation ......................................................................................................................31 

6.2.3 Water Supply Management Improvement Plan.............................................................................31 

6.3 INSTITUTIONAL DEVELOPMENT............................................................................................................. 32 

6.3.1 Programme Reforms .........................................................................................................................32 

6.3.2 Urban Development Policy...............................................................................................................32 

6.3.3 State Level Body for Resource Mobilization ..................................................................................33 

6.3.4 Metropolitan Planning & Regional Development Authority..........................................................33 

6.3.5 Urban Sanitation Mission..................................................................................................................33 

6.3.6 Water Supply & Sewerage Board for MP.......................................................................................33 

6.4 PROJECT PERFORMANCE MANAGEMENT REPORT................................................................................. 33 

6.5 MANAGEMENT INFORMATION SYSTEM .................................................................................................. 34 

6.5.1 Financial Information .........................................................................................................................34 

6.5.2 Physical and Financial Tracking ......................................................................................................34 

6.6 IMPLEMENTATION OF E-TENDERING PROCESS....................................................................................... 35 

6.7 MONITORING OF OUTSTANDING CLEARANCES ...................................................................................... 35 

7. COMPLIANCE WITH ADB MAJOR LOAN COVENANTS ...................................................................... 36 

7.1 SECTOR LOAN COVENANTS ................................................................................................................. 36 

7.2 ENVIRONMENTAL LOAN COVENANTS .................................................................................................... 37 

7.3 SOCIAL LOAN COVENANTS .................................................................................................................. 38 

7.4 FINANCIAL LOAN COVENANTS .............................................................................................................. 40 

7.5 OTHER RELATED LOAN COVENANTS .................................................................................................... 43 

8. RELATED ACTIVITIES AND ISSUES ..................................................................................................... 48 

8.1.1 Integrity of Contracts and Realisation of Benefits .........................................................................48 

8.1.2 Finalization of Approvals & Resettlement Issues..........................................................................48 

8.1.3 Disparity between WS and WW Programmes...............................................................................48 

8.1.4 JN-NURM Programme ......................................................................................................................48 

8.1.5 Poor deployment of Staff to Municipal Corporations ....................................................................48 


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List of Tables: 

Table 2.1 

Table 2.2 

Table 2.3 

Table 2.4 

Table 2.5 

Table 2.6 

Summary of Proposed Investments 

Project Total Costs Reconciliation Chart (Rs. To US$) 

Project Financing Plan 

Statement of PMU Withdrawal Application vs. ADB Disbursement 

Project Progress Overall Summary 

Project Implementation Weighted Progress Status 

Table 4.1 

Table 4.2 

Table 4.3 

City-wise Project Progress Implementation Works 

PMU Central Procurement Contracts (Wastewater & SWM) 

Status of Contract Packages Deferral to JN-NURM 

Table 5.1 

Table 5.2 

Table 5.3 

Table 5.4 

Water Supply Progress Status 

Wastewater & Sanitation Progress Status 

Solid waste Management Progress Status 

Stormwater Drainage Progress Status 

List of Figures: 

Figure 2.1 Disbursement Schedule (Rs. Lakh) 

Figure 2.2 Actual vs Targeted Disbursement 2007 

List of Appendices: 

Appendix A: 

Appendix B: 

Appendix C: 

Appendix D: 

Implementation Schedule Progress Status: 

Bhopal ...............................................................................Sheet 1 of 8 

Gwalior ...............................................................................Sheet 3 of 8 

Jabalpur .............................................................................Sheet 5 of 8 

Indore ................................................................................Sheet 7 of 8 

Status of Clearances 

Project Management Staffing Status 

e-Tendering Status Report 

Appendix E: Financial Statement (30 th June 2007) 


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Abbreviations and Acronyms 

ADB 

ADP 

AIF 

BMC 

BME 

BOO 

BPL 

BPT 

BOT 

BOOT 

CBO 

CEO 

CIF 

CLSC 

DFID 

DSC 

EIA 

EIRR 

FAP 

FGD 

FIAP 

FIRR 

GIS 

GMC 

GoI 

GoMP 

GWL 

HUDCO 

ICB 

IMC 

IND 

IR 

IS 

JBP 

JDA 

JMC 

LCB 

MAPPR 

MC 

M&E 

MIC 

MIS 

MLD 

MP 

MPUMP 

NMAM 

NGO 

O&M 

PAM 

PAP 

Asian Development Bank 

Annual Development Plan 

Area Improvement Fund 

Bhopal Municipal Corporation 

Benefit Monitoring and Evaluation 

Build Own Operate 

Bhopal 

Break Pressure Tank 

Build Operate Transfer 

Build Own Operate Transfer 

Community Based Organization 

Chief Executive Officer 

Community Initiative Fund 

City Level Steering Committee 

Department for International Development (UK) 

Design and Supervision Consultant 

Environmental Impact Assessment 

Economic Internal Rate of Return 

Financial Action Plan 

Focus Group Discussion 

Financial Improvement Action Plan 

Financial Internal Rate of Return 

Geographical Information System 

Gwalior Municipal Corporation 

Government of India 


Gwalior 

Housing and Urban Development Corporation Ltd. 

International Competitive Bidding 

Indore Municipal Corporation 

Indore 

Item Rate 

International Shopping 

Jabalpur 

Jabalpur Development Authority 

Jabalpur Municipal Corporation 

Local Competitive Bidding 

Municipal Action Plan for Poverty Reduction 

Municipal Corporation 

Mechanical and Electrical 

Mayor-in-Council 

Management Information System 

Million litres per day 

Madhya Pradesh 

Madhya Pradesh Urban Management Programme 

National Municipal Accounting Manual 

Non Government Organization 

Operation and Maintenance 

Project Administration Memorandum 

Project Affected People 


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Abbreviations and Acronyms Contd. 

PHED 

PIU 

PMC 

PMU 

PPP 

PPPP 

PPTA 

PRC 

PSP 

PWD 

QA/QC 

RUIDP 

SWM 

SPS 

STP 

TA 

ToR 

TK 

TCPO 

UADD 

ULB 

UWSEIP 

VFJ 

WAC 

WACC 

WPS 

WRD 

WSOP 

WTP 

Public Health Engineering Department 

Project Implementation Unit 

Project Management Consultant 


Public Private Partnership 

Public Private People Partnership 

Project Preparatory Technical Assistance 

Public Relations Consultant 

Private Sector Participation 

Public Works Department 

Quality Assurance/ Quality Control 

Rajasthan Urban Infrastructure Development Project 

Solid Waste Management 

Sewerage Pumping Station 

Sewerage Treatment Plant 

Technical Assistance 

Terms of Reference 

Turnkey 

Town & Country Planning Office 

Urban Administration and Development Department (GoMP) 

Urban Local Body 

Urban Water Supply and Environmental Improvement Project 

Vehicle Factory Jabalpur 

Water for Asian Cities 

Weighted Average Cost of Capital 

Water Pumping Station 

Water Resources Department (GoMP) 

Water Supply Optimization Programme 

Water Treatment Plant 


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Executive Summary 

The Loan Agreement, under reference 2046-IND, was signed on the 9 th March 2005 and made 

effective on the 20 th May 2005. The Urban Water Supply and Environmental Improvement Project 

(UWSEIP) in Madhya Pradesh effectively started from 21 st June 2006 and scheduled to be 

completed by the 31 st March 2009. 

The principal objectives of the Project are as follows: 

• promote sustainable growth and poverty reduction in the four selection cities of Bhopal, Gwalior, 

Jabalpur and Indore of the state of Madhya Pradesh; and 

• strengthen the capacities of the project cities to plan and manage urban water supply and 

sanitation systems in a more effective, transparent and sustainable manner. 

While the Project will benefit the entire community in general, some components will focus on 

upgrading the conditions of the poorest or most needy groups in slums areas in particular. The 

project will also promote the active participation of women citizens in municipal management and 

project implementation, as both beneficiaries and agents. The Project will specifically involve 

providing sustainable basic urban infrastructure and services to all citizens of the Project cities; and 

ensure the capacity building of the Project cities to plan and manage urban water supply and 

sanitation systems in more effective, transparent and sustainable manner. 

The Project comprises of the three component parts: 

• Part A: Urban Water Supply and Environmental Improvement; 

• Part B: Urban Governance, Institutional Development and Public Participation; and 

• Part C: Project Implementation Assistance. 

Part A: Urban Infrastructure and Environmental Improvement: Implementation under Part-A is 

focused on improving and expanding priority urban water supply and environmental infrastructure 

and services, inclusive of urban water supply, sewerage and sanitation, stormwater drainage and 

solid waste management. The overall budget allocation for Part A and B, for the physical works 

infrastructural development component of the programme, inclusive of the Community Development 

and Slum Improvement components, given in Table 2.1, totals Rs.84,440 lakh (to an exchange rate 

of Rs.41 = US$), as compared to the current total cost estimated amount of Rs.103,895 lakh, 

equating to an overall increase of 23.04%. 

The current status of design work, given in Table 4.1, stands at Rs.93,364.52 lakh, equivalent to 

90% of the total targeted amount. Invitation for bids has been issued for 88 contract packages for a 

total estimated amount of Rs.89,748.58, which is 86% of the overall programme. Award of contracts 

have been issued for 58 contract packages for a total contract amount of Rs.28,137.97, which is 

27% of the overall programme. Contracts have been completed for 28 PMU centrally procurement 

packages, for a total contract amount of Rs.1,333.46, which is 1.3% of the overall programme. 

The cumulative expenditure, to the 30 th June 2007, amounts to Rs.5,931.30 lakh, which is 5.26% of 

the overall approved fund of Rs.112,750 lakh (US$ 275 million) and equates to an equivalent 

weighted average project progress status of 27%, as compared to an effective 54% of elapsed time 

in terms of total loan period. 

Part B: Urban Governance, Institutional Development and Public Participation: utilization of 

community level funds and designed to increase the awareness and participation of the project 

beneficiaries in project implementation. 

Part C: Project Implementation Assistance: support during project implementation to the Project 

Management Unit (PMU) at state level and the Project Implementation Units (PIU’s) at city level. 


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Quarterly Report Number (QR-07) to 30 th June 2007 

EXECUTIVE SUMMARY DATA SHEET 

Project Salient Data: 

City Steering Committee established 8 th June 2004 

Empowered Committee established 11 th August 2004 

Loan agreement signed on 9 th March 2005; made effective 20 th May 2005 

Project completion date: 31 st March 2009 

Project Costs: 

Total Investment: 

PAM Budget Allocation US$ 275m (Rs.112,750 lakh) at exchange 

rate Rs.41.00 to US$ 

Estimated Amount to date: 

(Inclusive of apportioned support 

costs, contingencies, and taxes) 

Totals 

Project Financing: 

Bhopal 

Gwalior 

Jabalpur 

Indore 

(US$ 333.26m) 

Rs.19,023 lakh: (21.07% increase) 

Rs.16,725 lakh (8.58% decrease) 

Rs.28,524 lakh (26.24% increase) 


Rs.136,638 lakh 

(equivalent: average 21.19% increase) 

Funding Source: Percentage: Total Investment FC & LC: 

ADB 65.82% Rs.74,210 lakh US$ 181m 

GoMP 16.69% Rs.18,819 lakh US$ 45.9m 

Project Cities 17.31% Rs.19,516 lakh US$ 47.6m 

UN Habitat 0.18% Rs. 205 lakh US$ 0.5m 

Urban Infrastructural Improvement Project Progress: 

Total Contract Packages 101 Nos. Rs.110,824.63 lakh 

Contracts Completed 28 Nos. Rs.1,333.46 lakh 1.3% 

Contracts Awarded 58 Nos. Rs.28,137.97 lakh 27.1% 

Invitation for Bids (IFB) 88 Nos. Rs.89,748.58 lakh 86.4% 

Design Report & Bid Docs 93 Nos Rs.93,364.52 lakh 89.9% 

Concept Report 97 Nos Rs.100,734.52 lakh 97.0% 


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1. INTRODUCTION 

The Loan Agreement, under reference number 2046-IND, for the Urban Water Supply and 

Environmental Improvement Project (UWSEIP) in Madhya Pradesh, between the Government of 

Madhya Pradesh, India and the Asian Development Bank (ADB), was signed on the 9 th March 2005 

and made effective on the 20 th May 2005. The Project is scheduled to be completed by the end of 

March, 2009. 

The last State Level Review Meeting was convened on the 9 th February 2007 at Jabalpur and the 

last TPRM was held on the 21 st March 2007. 

The last ADB interim review mission was conducted on the 6 th December 2006, for completing a 

review of the e-tendering process and to discuss procurement issues. 

This report details progress completed during the course of the project throughout the seventh 

quarterly reported period to 30 th June 2007. 

1.1 Project Background 

Over the last few decades, the size of the population of the cities has expanded, due mainly to 

urban bound migration trends, which has dramatically increased population in core areas, existing 

settlements and newly developed settlements, leading to heavily congested urban in and peri-urban 

areas. This has resulted in a marked upsurge in demand of the inadequately suited infrastructure 

services, particularly in the areas of potable water supplies, wastewater, stormwater drainage and 

solid waste management. These urban services have not been developed in line with the demands 

of the ever expanding urbanization. Slum areas have also expanded at alarming rates, within the 

peri-urban and core urban areas, whereby access to basic urban services has been further 

restricted. 

Presently water is generally supplied for only a few hours each day during the wet season and in 

some cases less during the dry season. Non-revenue water accounts for as much as 60% of the 

water produced, exacerbating water shortages and increasing supply costs. Inadequate sanitation 

and sewerage facilities result in environmental pollution and public health problems. Streets, drains 

and open areas are littered with waste, which affects public health due to inadequate solid waste 

management facilities and practices. All these deficiencies are serving as serious constraints to 

future growth potentials and adversely affecting economic development. 

1.2 Brief Project Description 

The Urban Water Supply and Environmental Improvement Project (UWSEIP), in the state of 

Madhya Pradesh, is an integrated urban infrastructure development project inclusive of institutional 

strengthening requirements. The Project is designed to establish and upgrade essential urban 

infrastructure and services particularly in the areas of potable water supplies, waste water 

management, drainage and solid waste. The project is being implemented in the four major cities of 

Bhopal, Gwalior, Jabalpur and Indore. 

The primary objective of UWSEIP is to promote sustainable growth and poverty reduction in the four 

selection cities of Madhya Pradesh and thereafter in other cities in the state. The Project will finance 

infrastructure construction and rehabilitation related to solid waste management and stormwater 

drainage and capacity building of existing Municipal Corporations. Social and community 

development will form an important component of the Project, involving community mobilization, 

under well organized proactive public awareness campaigns. 


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The official start to the UWSEIP took place at the signing of the Contract Agreement between the 

Government of Madhya Pradesh and the Consultants on the 6 th June 2005. Mobilization of the PMC 

and DSC Consultant teams started 15 days later, on the 21 st June 2005. The BME consultant was 

mobilized on the 3 rd July 2006. The PR consultant was mobilized on the 9th September 2006. 

1.3 Project Objectives and Component Parts 

The principal objectives of the Project are to promote sustainable growth and poverty reduction in 

the four selection cities of Madhya Pradesh and thereafter in other cities in the state and will 

specifically involve the following objectives: 

• provide sustainable basic urban infrastructure and services to all citizens of the Project cities; 

• promote public participation and awareness in project implementation; 

• increase economic opportunities and reduce vulnerability to environmental, poverty and natural 

hazards; and 

• strengthen the capacities of the Project cities to plan and manage urban water supply and 

sanitation systems in more effective, transparent and sustainable manner. 

The project comprises of the three following component parts: 

• Part A: Urban Water Supply and Environment Improvement; 

• Part B: Urban Governance, Institutional Development and Public Participation; and 

• Part C: Project Implementation Assistance. 

While the Project will benefit the entire community in general, some components will focus on 

upgrading the conditions of the poorest or most needy groups in slums areas in particular. The 

project will also promote the active participation of women citizens in municipal management and 

project implementation, as both beneficiaries and agents. 

1.3.1 Part A: Urban Water and Environmental Improvement 

The Urban Water Supply and Environment Improvement component of the programme, covering the 

improvement and expansion of basic municipal infrastructure and services, includes the following: 

• urban water supply: optimization, expansion and augmentation; 

• sewerage and sanitation: conventional sewerage systems for high density core areas with lowcost 

maintenance waste treatment and appropriate on-site sanitation for lower density areas; 

• stormwater drainage: improved urban drainage networks; and 

• solid waste management: improved efficiency of collection and disposal through procurement of 

equipment and the construction of sanitary landfill sites. 

1.3.2 Part B: Urban Governance and Institutional Development 

The Urban Governance, Institutional Development and Public Participation, which is designed to 

increase the awareness and participation of the Project beneficiaries in project implementation 

through the application of the Municipal Action Plan for Poverty Reduction (MAPPR) approach: 

• Area Improvement Fund (AIF): aimed at poorly served settlements, with inadequate 

infrastructure, which will attain integrated slum improvements through participatory planning. 

Funds to be available to the Municipal Corporation on an annual review basis. This component 

was deferred for DFID implementation, under the MPUSP programme, effectively from March 

2006 and reinstated in April 2007, and 

• Community Initiatives Fund (CIF): for the social sector inclusive of community facilities, 

education and income generation activities. This component was deferred for DFID 

implementation, under the MPUSP programme, effectively from March 2006 and reinstated in 

April 2007. 


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• The Water for Asian Cities Programme in India covering urban water conservation and demand 

management, to be financed through parallel co-financing by United Nations Human 

Settlements Programme (UN-Habitat). 

1.3.3 Part C: Implementation Assistance 

The Project Implementation Assistance relates to activities directly attributable to implementation of 

the Project and includes the management of the project along with the associated consultancy 

services. 

An Empowered Committee (EC) has been set up, with the Chief Secretary as the Chairperson. The 

EC is established as the overall approving authority for all matters related to the project on behalf of 

the State Government. A City Steering Committee has been established to provide overall guidance 

to the respective PIU’s along with ensuring the required monitoring of Project implementation 

activities. 

The Project Management Unit (PMU), Project Management Consultant (PMC), the Project 

Implementation Units (PIU's) and the Design and Supervision Consultant (DSC's) are responsible 

for ensuring the timely construction of identified contract packages, comprising one or more 

schemes, according to identified needs, in full adherence to quality control measures. The PMU, 

PMC, DSC's and PIU's will, through the required training and capacity building associated with the 

Project, ensure that the Urban Local Bodies (ULB's) will be able to take responsibility for the 

continued operation and maintenance of the newly-constructed or rehabilitated facilities. 

The present position, in respect of staff deployment status, for the PMU, PIU’s, PMC and DSC’s is 

given in Appendix-C. 

Refer to Section 3 for specific details of the status of the implementation arrangements related to 

the established project institutions and appointment of consultants to the programme. 

Refer to Section-7 for details of the associated project specific major ADB Loan Covenants, along 

with the status of compliance to date. 

1.4 Implementation Schedule 

The Project is to be implemented over a four year period from the date of loan effectiveness, 

scheduled for completion by 31 st March 2009. To minimize Project start-up delays, the ADB 

provided technical assistance for advance actions in preparation of the standard bidding documents, 

to establish tendering procedures, pre-qualification procedures and completion of the prequalification 

of contractors for the civil works programmes. 

Refer to Appendix-A, which gives comprehensive details of the implementation schedule and a 

current listing of all contract packages, to the present cost estimated status for all sectoral 

components of the respective project cities. 


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2. FUND UTILIZATION 

The targets for disbursement of funds, throughout the course of the project period, are presented in 

terms of the combined cumulative accounting of the following elements: 

• Procurement and civil works, inclusive of taxes, price and physical contingences; and 

• PMU, PIU’s and consultancy services support, inclusive of associated taxes. 

Refer to Figure 2.1, which gives the targeted cut-off for all design and bidding by October 2006, 

inclusive of procurement and civil works contracts. The start of implementation is scheduled, 

according to the programme given in Appendix-A, for the initial physical works, to start from June 

2006 onwards. 

2.1 Project Investment and Financing 

Refer to Table 2.1 for the present status of investment for the various components of each of the 

Project Cities, in comparison to that of the budget allocation, according to the Project Administration 

Memorandum (PAM), dated 24 th October 2005. 

2.1.1 Project Financing Plan 

The overall Project is estimated to cost a total investment amount of US$ 275 million. A summary of 

the Project costs is given in Table 2.2, which gives a reconciliation of cost allocations according to 

the sector components and the implementation elements of Part A: Urban Infrastructure; Part B: 

Public Participation and Awareness; and Part C: Implementation Assistance. 

The initially used exchange rate of INRs.49.67 to the US$ has currently been revised, according to 

ADB advise, to INRs.41.00 to the US$, which is used in determining the current financial status of 

the Project and in tracking of budget allocations as compared to current estimated costs. 

Currently the total investment according to the cost estimation for the programme stands at 

Rs.136,638 lakhs, which is 21.19% above that of the budget allocation of Rs.112,750 lakhs. 

2.1.2 Status of Counterpart & Co-financing of Funds 

The Government of Madhya Pradesh made the provision of Rs. 4,000 lakh for the year 2005/06 and 

Rs.1,100 lakh for the year 2006/07, towards counterpart funding. 

Each Municipal Corporation has been advised to arrange their contribution, in accordance with the 

Financing Plan of the overall Project investment is given in Table 2.3, whereby Asian Development 

Bank is to finance US$ 181 million under Loan No. 2046-IND. 

The balance, 34.18% amount, is to be co-financed by the Government of Madhya Pradesh for US$ 

45.9 million (16.69%); the Project Cities for US$ 47.6 million (17.31%); and UN Habitat for US$ 0.5 

million (0.18%). 

The contribution made by the Government of Madhya Pradesh comprises front-end fees, interest 

during construction and commitment charges, inclusive of taxes and duties, 20% grant for Indore 

water supply, part consultancy costs and PMU establishment. 


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2.1.3 Targeted Disbursement Schedule and Monitoring 

A cumulative total expenditure, to 30 th June 2007, amounts to Rs.5,931 lakh, which equates to 

5.26% of the overall approved fund of Rs.112,750 lakh (US$ 275 million). Referring to Figure 2.2, 

this shows a shortfall of 55.3%, according to the targeted expenditure of Rs.13,274 lakhs, which 

highlights that the upward trend of improved expenditure over the preceding quarter (47.7% 

shortfall) has not continued, with comparatively poor returns being made throughout the March to 

June 2007 reported period. The shortfall of the actual expenditure to that of the targeted would be 

explained by the following factors: 

• awaiting release of pending invoices remaining in the pipeline; 

• continued slippage in the anticipated start of contracts; 

• poor competitive bidding process to date giving rise to marked slippage; and 

• modification to the overall pattern of mobilization and deployment of consultant and support 

staff. 

2.2 Disbursements and Financial Statements 

2.2.1 ADB Cumulative Disbursements 

A cumulative The cumulative record of all previous ADB disbursements, inclusive of the reported 

quarter April to June 2007 against UWSEIP claims, is according to the financial statement given in 

Table 2.4, which gives a total of US$ equivalent of disbursements of US$6.176m to date. 

2.2.2 Financial Statements 

As per ADB guidelines, a financial statement of accounts is given in Appendix-E, for the UWSEIP 

MP Urban Project separately for the period ending 30 th June 2007, for the following: 

• Sources and applications of funds, for a closing balance of Rs.408.41 lakhs, refer to 

Table E-1; and 

• Withdrawal of loan proceeds totals Rs.250,300,439 and US$461,368, amounting to 

US$6.176m equivalent, refer to Table E-2. 


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June 2007 


2.3 Project Costs 

2.3.1 Current Scope and Project Investment Status 

Refer to Table 2.5, which gives an overall summary of the progress status of the project to date, for 

Part A, Part B and Part C of the programme, for the urban infrastructural improvement and the 

community development respective elements in terms of the sector components. The total proposed 

investment, in terms of current estimated costs, amounts to Rs.103,894.52 lakhs for 101 contract 

packages, inclusive of 4 packages allocated for the community development component. The total 

estimated amount equates to 23% above that of the corresponding PAM budget allocation of 

Rs.84,439.71 lakhs. 

2.3.2 Project Implementation Progress Status 

The project implementation progress to date is given according to a weighting, 30% for preimplementation 

stage and 70% for the implementation phase and associated activities. Progress 

has also been assessed in terms of a subjective appraisal of key activities for these stages, as 

monitored against a system of assigned weighted averages. Refer to Table 2.6, which shows an 

equivalent weighted average project progress status of 27%, as compared to an effective elapsed 

time of 54% in terms of total loan period. 

2.3.3 Variation of Project Costs to Budget Allocation 

The comparative variance of costs, as given in the Total Project Costs of the Implementation Tables 

Appendix-A, to that of the PAM allocated amount for the four cities is given as follows: 

Estimated Amount to date: 

(Inclusive of apportioned support 

costs, contingencies, and taxes) 

Totals 

Bhopal 

Gwalior 

Jabalpur 

Indore 

(US$ 333.26m) 

Rs.19,023 lakh: (21.07% increase) 

Rs.16,725 lakh (8.58% decrease) 



Rs.136,638 lakh 

(equivalent: average 21.19% increase) 


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June 2007 


3. STATUS OF IMPLEMENTATION ARRANGEMENTS 

The Executing Agency for the Project is the Urban Administration and Development Department 

(UADD) of the Government of Madhya Pradesh, represented by the Project Management Unit 

(PMU), which assumes overall responsibility for planning, management and monitoring of the 

Project, in ensuring the outcome of the project and its compliance with the Loan Covenants, 

governing the relationship between the Municipal Corporations of the State Government and the 

Asian Development Bank (ADB). 

Arrangements for Project implementation have been developed according to Government policies, 

under the 74 th Amendment to the Constitution in meeting the national objectives of decentralizing 

growth, strengthening the implementation and management capabilities of the Urban Local Bodies 

(ULB’s). 

The Government of Madhya Pradesh (GoMP) initiated the setting up of the required institutions in 

the preparatory stages of the Project. For details of the current project management and consultant 

staffing status, as of the 30 th June 2007, refer to Appendix-C. 

3.1 Formation of Committees 

As per the Loan Agreement with ADB, the UADD is established as the Executing Agency for the 

Project. Along with the establishment of the implementation arrangements, recruitment of all key 

staff members has been achieved in the majority of areas in attaining the overall management of the 

Project. 

3.1.1 Empowered Committee 

The Empowered Committee (EC) was set up on 11 th August 2004, with the Chief Secretary as the 

Chairperson. 

The EC is established as the overall approving authority for all matters related to the project on 

behalf of the State Government and convenes at least once every three months. The EC has been 

delegated with all powers of the Urban Development sector, PHED and Finance departments for 

implementation of projects, except decisions reserved for the Cabinet. 

Accordingly, the EC has been bestowed full authority to represent the State on all project issues, 

including establishing overall administrative and management of Project related policies, in 

approving all major decisions and sanctioning award of contracts. 

The EC convened during the course of the reported period, on the 3 rd May and the 26 th June 2007. 

3.1.2 City Level Steering Committee 

The City Level Steering Committee (CLSC) was set up in each of the Project cities on the 8 th June 

2004, with the Divisional Commissioner as the Chairperson. 

The committee includes, the Mayor, leader of the opposition in the Corporation, member Secretary 

of the State Pollution Control Board (SPCB), representative of Chamber of Commerce (CoC) and a 

prominent women social worker. 

The CLSC has convened periodically in reviewing the Project and effectively coordinating work 

within each city. 


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June 2007 


3.2 Formation of Project Management and Implementation Units 

3.2.1 Project Management Unit 

The Project Management Unit (PMU) has been established at the State level with the Project 

Director and support staff in place. The PMU is now being expanded to suite growing Project 

demands to a potential complement of 50 members (including a total of 24 support staff). 

The PMU is responsible for the coordination and management of all Project activities, including 

Project design, implementation, budgeting and financial planning, benefit monitoring and evaluation 

activities, socioeconomic surveys, environmental assessment and protection, institutional and policy 

development, community participation activities, related training, and coordinating the work of all 

consulting services under the Project. 

3.2.2 Project Implementation Unit 

Although the Project Implementation Units (PIU’s) have long since been established, they remain 

under-resourced and operate at various degrees of effectiveness in the four Project cities. 

Implementation of the different infrastructure components has now been taken up by the PIU's, who 

are supported by the DSC’s, and responsible for coordinating, supervising, implementing, 

monitoring and reporting on the Project progress to the PMU. 

3.2.3 Technical and Tender Evaluation Committees 

A Technical Evaluation Committee (TEC) has been established, headed by the PD for evaluation of 

all PMU central procurement packages and approval by TE&AC of all tenders up to Rs.2 crore or by 

EC for all tenders exceeding Rs.2 crore. A Bid Opening and Evaluation Committee (BO&EC) has 

been established at the PIU level for all packages, other than PMU central procurement packages. 

A Technical Clearance Committee (TCC) has been established at the PMU level, chaired by the PD 

PMU for clearance of all design reports and bid documents as prepared by PIU’s and approval by 

MIC thereafter. 

A Tender Evaluation and Approval Committee (TE&AC) has been established headed by the 

Principal Secretary, UADD, for clearance of all tenders up to Rs.2 crore, MIC approval thereafter. 

For all tenders exceeding Rs.2 crore, clearance is completed by the EC and approval by MIC 

thereafter. 

3.3 Formation of the Support Consultants 

3.3.1 Project Management Consultant 

The PMU is being assisted by the Project Management Consultant (PMC), by Louis Berger Group 

Inc, effectively appointed on the 21 st June 2005. Mobilization of the compliment of experts and 

support staff has been conducted according to the requirements of the programme and in 

compliance with their agreed mobilization schedule. 

To date, the PMC has completed 24.33 months of services, equivalent to 54% of elapsed time of the 

overall contracted period, in assisting the PMU in all project related activities, including 

management, supervisory roles, monitoring and coordinating the works of the PIU’s and DSC’s, 

attached to the respective Municipal Corporations. 


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June 2007 


In completion of the consultancy services, the PMC has expended a total of 320.75 man-months, 

inclusive of 175.53 man-months of support staff, which equates to an overall 40% of the total utilized 

contracted man-month output. For full details of the PMC staffing status and revised mobilization 

schedule to date, refer to Appendix-E. 

3.3.2 Design and Supervision Consultants 

The PIU’s are being assisted by the Design and Supervision Consultants (DSC’s), who are 

responsible for design inputs, and the day-to-day management/supervision of contractor-based 

activities and were effectively appointed on the 21 st June 2005. . Each office unit has a compliment 

of experts for water supply, wastewater, solid waste management and community development. As 

the design stage nears completion, the design team of experts for each city has been demobilized. 

DSC (East): TCE DSC(E) was effectively appointed on the 21 st June 2005. TCE Consulting 

Engineers Ltd (TCE) has established three office units, alongside the PIU’s at each of cities of 

Bhopal, Gwalior and Jabalpur, with a Deputy Team Leader deployed at each of the cities, and the 

Team Leader deployed at the Bhopal office unit. However, mobilization of the compliment of experts 

and support staff has been found to be unsatisfactory. 

DSC (West): STC DSC(W) were effectively appointed on the 21 st June 2005. Shah Technical 

Consultant (STC) has established an office unit alongside the PIU at Indore and are fully 

operational, initially with the Team Leader, a Deputy Team Leader and the required experts in place 

to cover the design stage. This has been since changed to the deployment of the TL and 

supervisory staff in covering the site supervision stage. Mobilization of the compliment of experts 

and support staff has been conducted according to the requirements of the programme and in 

compliance with their agreed mobilization schedule. 

3.3.3 Public Relation Consultant 

The Public Relation Consultant (PRC) is to assist the PIU’s in all aspects of public awareness and 

participation programmes, which will be operational for the four Project cities. The PRC contract 

signing took place on the 9 th September 2006. The PRC subsequently started their work by 

establishing initial office space within the PMU on the 25 th September 2006. 

During the course of the reported period the PRC have continued with the preparation of IEC 

material, including the phone in live air talk shows. In addition, particulars of the Public Relations 

and Awareness Programme (PRAP) interventions have been detailed, inclusive of identification of 

community level programmes in the form of data sheets jointly prepared with the community 

development experts of the DSC(E). 

3.3.4 Benefit Monitoring and Evaluation Consultant 

The Benefit Monitoring and Evaluation Consultant (BMEC) started with one team member in place 

on the 3 rd July 2006 and subsequently mobilized with the Team Leader in station on the 10 th July 

2006, for a ten day period only. Initial coordinating meetings were held with the BMEC on the 12 th 

July 2006; whereby the overall work plan and the progress made to date, with regard to preparation 

of the BME Plan, were discussed. 

The BMEC submitted a “Final BME Plan” on the 29 th August 2006, which was found to be of a 

substandard quality, for which a comprehensive list of comments were given by the PMU for 

ensuring the required improvement. 

The BMEC have since edited revised version of the BME Plan for each of the cities, incorporating a 

list of key measurable baseline indicators, which were presented to the PMU in early April 2007. 


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June 2007 


4. PROJECT AND IMPLEMENTATION PROGRESS 

4.1 Overview of Activities to date 

4.1.1 Infrastructural Improvement 

An overall summary of the progress status, in terms of the sector components of the project, as on 

the 30 th June 2007, as referred in Table 2.5, includes a total of 101 contract packages; comprising 4 

nos. slum upgrading; 55 nos. water supply; 11 nos. wastewater/sanitation packages; 30 nos. solid 

waste management packages, inclusive of 26 PMU centrally procured packages; and 1 no. drainage 

package; for a total estimated amount of Rs.103,894.52 Lakh, equivalent to 23% above that of the 

PAM allocated budget amount for the programme. 

Detailed Design Reports have been completed for 93 contract packages; comprising 52 nos. water 

supply, 11 nos. wastewater/sanitation packages, 29 nos. solid waste management packages and 1 

no. drainage package, for a total estimated amount of Rs.93,365 Lakh, equivalent to 90% of the 

overall programme. 

To date, Invitation for Bids have been issued for 88 contract packages; comprising 49 nos. water 

supply, 10 nos. wastewater/sanitation packages and 29 nos. solid waste management packages for 

a total estimated amount of Rs.89,749 Lakh, equivalent to 86% of the overall programme. 

Award of contract has been issued for 58 contract packages; comprising 29 nos. water supply, 4 

nos. wastewater/sanitation packages and 25 nos. solid waste management packages for a total 

estimated amount of Rs.28,138 Lakh, equivalent to 27% of the overall programme. 

Refer to Table 4.1 for the city-wise progress status of the infrastructural development programme to 

date, which gives a distribution of the contract packages and costs according to Bhopal with 29 

contract packages at an estimated amount of Rs. 13,077.73 lakh; Gwalior with 12 contract packages 

at an estimated amount of Rs. 11,433.04 lakh; Jabalpur with 22 contract packages at an estimated 

amount of Rs. 20,826.63 lakh; and Indore with 34 contract packages at an estimated amount of Rs. 

55,397.11 lakh. 

Refer to Table 4.2 for details of the procurement contracts, which have been implemented under 

central procurement through the PMU, 18 packages have been allotted a separate ADB PCSS 

reference number. However, the contracts have been further subdivided according to distribution of 

the materials and equipment to the respective city corporations, which has effectively given rise to a 

total of 29 itemized contracts, as referenced in the left-hand side column of the Table. Hence, to 

date, the delivery of materials and equipment has been completed for 28 itemized contract 

packages, comprising 3 nos. wastewater/sanitation packages and 25 nos. solid waste management 

packages for a total estimated amount of Rs.1,333 Lakh, equivalent to 1.3% of the overall 

programme. Package PMU/SWM/02/BPL-L4 has yet to be awarded. 

4.1.2 Social and Community Development 

The AIF/CIF component, for slum improvement and development initiatives, was deferred for DFID 

implementation, under the MPUSP programme, effectively from March 2006. However, the 

component was reinstated during April 2007, under an executive decision at GoMP level, with the 

proposal for including community managed water supply and sanitation schemes. 

These schemes will be identified for location within suitably selected slum areas, which fall outside 

of the overall water supply coverage boundaries under presently proposed urban infrastructural 

development programmes. 


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June 2007 


4.1.3 Financial Improved Management 

The PMU continued to assist the city corporations in the formulation of their respective Financial 

Improvement Action Plans (FIAP’s); in accordance with the provisions of ADB guidelines, including 

accounting and budgeting reforms. The timeframe and scheduled dates of the FIAP have been 

revised allowing for the late signing of the Loan Agreement. 

The city corporations are to endorse and amend as appropriate with the consent of ADB, the State 

and GOI. The FIAP’s have now been translated into Hindi and circulated to all MC’s for ensuring 

effective monitoring. 

4.1.4 Institutional Governance 

Further refinements were made to the draft Urban Development Policy document, with the Urban 

Land Policy attached to the document. Representative text in the form of an executive summary of 

the entire document has been prepared, which is due for translation into Hindi. 

The Urban Development Policy and Urban Land Policy are identified as the most important aspects 

of the overall institutional and governance reforms of the project, which is intrinsically related to the 

quality of implementation and the sustainability of development in the project towns. 

4.2 Pre-implementation Activities 

4.2.1 Imparted Training 

As the implementation of the civil works gets underway, initial training was arranged at the project 

cities, in Indore on the 23 rd March 2007, in Gwaloir on the 10 th April 2007, in Jabalpur on the 13 th 

April 2007 and in Bhopal on the 17 th April 2007 for ensuring the required understanding and 

compliance to all QA/QC procedures and issues. 

The training was imparted for all concerned supervisory personnel of the PMU, DSC(W), PIU, MC 

staff and other related departments, including members of the PHED, as appropriate. The 

concerned contractors, of contracts presently under implementation, inclusive of the contractors of 

the awarded contracts, attended the training. 

Further training will be organized in due course for training of trainers at the PIU level so that 

sustainable training will be completed as more contractors are inducted to the programme. 

Additional training is to be organized for the full understanding of and compliance with the Health 

and Safety procedures, inclusive of identification of contract specific risks and the preparation of 

related mitigations and associated Risk Assessment Analysis. 

4.2.2 Tendering Process and e-Tendering 

During the reported period work was continued by the appointed service provider, M/s abcprocure, 

in the preparation of uploaded documents for conducting the online bidding processes, inclusive of 

post bid notification of evaluations on the web. In coordination with the respective PIU’s, a total of 

57 contract documents, inclusive of the preparation of pre-qualification forms and financial bid 

forms, have been completed. 

In terms of e-tendering activities for the respective cities, this comprises 18 contracts for Bhopal, 

inclusive of 4 contracts for re-bidding (BPL/WS/05, BPL/WS/07, BPL/WS/08 and BPL/WS/12); 7 

contracts for Gwalior and no re-bidding; 21 contracts for Jabalpur, inclusive of 2 contracts for re- 


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PROJECT UDAY 



June 2007 


bidding (JPL/WS/12 and JBP/WS/02); and 11 contracts for Indore, inclusive of one contract for rebidding 

(IND/SWM/05), refer to Appendix-D for details. 

4.2.3 Outstanding Clearance Issues 

The PMC/PMU continued to monitor the progress made by the PIU’s and DSC’s regarding advance 

actions and preparatory works for obtaining all necessary environmental clearances from M.P. 

Pollution Control Board, land acquisitions, clearance from Forest Department to use their land, 

clearance from Railways and Road authorities for crossing pipes. 

However, the process and interactions with the various agencies, as given in Appendix B, is taking 

unacceptable long periods of time to finalize, with vary little noticeable progress being made during 

the reported period. 

4.2.4 Topographical Survey Work 

All sub-project related topographical survey work; inclusive of submission of survey reports, have 

now been completed and submitted by the survey agencies. 

4.2.5 Proposed Deferral of Contracts to JN-NURM 

In containing the overall investment to within the PAM budget allocations, a number of projects, 

according to sector development of the Project Cities, are to be deferred to the JN-NURM 

programme for Bhopal, Jabalpur and Indore. GMC have already deferred all their civil works 

wastewater and drainage packages for implementation to UIDSSMT. 

A total number of 11 contract packages, including 3 procurement packages, have also been 

officially deferred to the JN-NURM implementation. Four more packages, one for BMC and 3 for 

IMC, are being considered for deferral, as given in Table 4.3. 

The resulting percentage variation of the current contract amounts, to that of the PAM allocation, 

has been given for the two scenarios of included and excluded from the programme. The resultant 

number of contract packages, inclusive of CIF/AIF contracts, would stand at 78 contracts, 

comprising 29 procurement, 45 civil works contracts and 4 AIF/CIF contracts. 

4.2.6 Project Performance Management System 

The Draft PPMS was finalized during the course of the reported period, which includes the following: 

• impact assessment indicators; 

• monitoring of the physical progress for the components of the infrastructure works, inclusive of 

water supply, wastewater and sanitation, solid waste management, and stormwater drainage; 

• aspects of the institutional development and capacity building; 

• social and community development dimension; 

• financial and accounting improvement aspects; 

• all public health and hygiene related aspects; 

• requisite and related correlated functions and features; and 

• other related aspects pertaining to the overall institutional and environmental improvement 

components. 

A system of assessing progress of the overall project in terms of weighted averages has been 

included in accordance with the key monitoring elements of the project as given in the PAM 

document, refer to Table 2.6. 


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June 2007 


4.2.7 Project Status Progress Meetings 

Regular PMU level project review meetings, chaired by the Principal Secretary, have been held 

each month during the course of the reported period to discuss progress status and related issues. 

The following additional project progress status and monitoring meetings were held during the 

reported quarter: 

• TCC convened twice on the 2 nd April and the 16 th May 2007; 

• TE&AC was convened three times on the 3 rd April, 5 th May and 8 th June 2007; 

• Empowered Committee convened twice on the 3 rd May and 23 rd June 2007; 

• The last State Level Review Meeting was held on the 9 th February 2007 in Jabalpur; and 

• The last TPRM was held on the 21 st March 2007. 


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June 2007 


5. URBAN WATER SUPPLY AND ENVIRONMENTAL IMPROVEMENT 

The Urban Water Supply and Environment Improvement component forms Part A of the 

programme, covering the improvement and expansion of basic municipal infrastructure and services 

and includes the following: 

• urban water supply: optimization, expansion and augmentation; 

• sewerage and sanitation: conventional sewerage systems for high density core areas with lowcost 

maintenance waste treatment and appropriate on-site sanitation for lower density areas; 

• stormwater drainage: improved urban drainage networks; and 

• solid waste management: improved efficiency of collection and disposal through procurement of 

equipment and the construction of sanitary landfill sites. 

5.1 Urban Water Supply 

Refer to Table 5.1 for the city-wise progress of the water supply component of the project, which 

comprises 55 contract packages for a total estimated amount of Rs. 82,786.69 lakh, equating to 

51.7% above the PAM allocated amount. To date, all concept reports have been collectively 

reviewed by the PMU and conditionally approved, subject to incorporation of the given comments 

into the design reports. 

Design Reports have been prepared for 52 packages for an investment of Rs. 75,626.69 lakh, which 

is 91% of the overall water supply allocation. Bidding documents for these contract packages are 

under various stages of preparation, with invitation for bids given for 49 contract packages, for an 

investment of Rs.73,681.89 lakh, equating to 89% of the overall water supply programme. 

Contracts have been awarded for 29 packages for an investment of Rs. 26,559.11 lakh, which is 

32.08% of the overall water supply programme. To date, no water supply contracts have been 

completed. 

5.1.1 BMC Water Supply Pre-Construction 

The overall cost estimate of the 11 water supply contract packages for Bhopal amounts to Rs. 

5,166.30 lakh, equating to 6% below the allocated amount. To date, all concept reports, design 

reports and bidding documents have been approved, out of which invitation for bids have been 

prepared for 10 packages for an investment of Rs. 5,094.80 lakh, which is 99% of the overall water 

supply allocation. 

Award of contracts have been given for the below listed contracts, to the given dates, for the 5 civil 

works contract packages and one International Shopping procurement package, for a total 

estimated amount of Rs.2,753.85 lakh, equating to 53% of the overall water supply programme: 

BPL/WS/01 IS 29-04-07 Phase I: Supply and install bulk Meters 

BPL/WS/02 LCB IR 13-03-07 Rehab RWPS (5 Nos), CWPS (2 Nos), Rising Mains 

BPL/WS/03 LCB IR 13-03-07 Rehabilitation of WTPs by Upper Lake 

BPL/WS/06 LCB IR 06-06-07 

Distribution: uPVC/DI, 100-450mm dia.: Bairagarh Area 

(Wards 1, 2, 3, & 4) 

BPL/WS/09 

LCB 

RCC OHSR 7.75 ML (Aradhanangr, Nehru Nagar, Kotra & 

13-03-07 

TK 

Vijay Nagar) 

BPL/WS/10 ICB TK 13-03-07 RCC OHSR 6.0 ML (Shahpura, Ibrahimpura & Koefiza) 


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June 2007 


BMC has three pending clearances related to the water supply sector; two related to contract 

package BPL/WS/10, which are due for completion by the middle of July 2007; and one related to 

contract package BPL/WS/09, which is due for completion by the middle of September 2007refer, to 

Appendix-B for the details. 

5.1.2 BMC Water Supply Construction Phase 

Of the 5 awarded civil works contracts, work has progressed as follows: 

Package no. BPL/WS/01 Supply and install bulk water meters 

Name of Contractor: M/s Krohne Marshall, Pune 

Cost of Contract: 

Rs. 91.60 lakh 

Date of Award: 14.05.07 

Time of completion: 9 Months 

Works includes: 

Supply, Installation and Maintenance of Electromagnetic 

Flow Meters 13 Nos. + 2 Nos. (Portable) 

Work recently awarded. The contractor firm has submitted 

work plan which is under process pf approval by PIU/DSC. 

Package no. BPL/WS/02 Rehab RWPS (5 Nos), CWPS (2 Nos), Rising Mains. 

Name of Contractor: M/s Asiatic Traders, Indore 


Rs. 644.85 lakh 




Rehabilitation of RWPS (5 nos.), CWPS (2 nos.) and 3 km 

Raw Water Rising mains. 

Work plan submitted by the contractor firm has been 

approved by PIU/DSC. Part Design /Drawings submitted by 

the contractor firm have also been approved by PIU/DSC & 

remaining are under process of either submission or 

checking etc. 

Package no. BPL/WS/03 Rehabilitation of 7 existing water treatment plants around 

upper lake. 

Name of Contractor: M/s Hydro-Tech Enterprises Pvt. Ltd, Delhi 


Rs. 410.87 lakh 




Rehabilitation of existing 7 WTP’s. 

The contractor firm has started construction of central office 

building and has also submitted part work plan and working 

drawings, which have been approved by the PIU/DSC. 

Remaining work plan and working drawings are under 

process of either submission or checking etc. 

Package no. BPL/WS/09 Design & Construction of RCC elevated service reservoirs at 

various locations in Bhopal. 

Name of Contractor: M/s Brij Engineering works, Kanpur 


Rs. 350.70 lakh 



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June 2007 


Time of completion: 


4 RCC elevated service reservoirs. 


approved by PIU/DSC. Work on testing of SBC of Soil has 

started at all the 4 places. Results of Kotra & Nehrunagar 

sites have already been received along with their design & 

drawings, Some discrepancies have been found in the 

design by the checking agency, which have been referred 

back to the contractor firm. Excavation work for foundation 

at Kotra Site has almost been completed. 

Package no. BPL/WS/10 RCC OHSR (Shahpura, Ibrahimpura & Koh-e- fiza). 

Name of Contractor: M/s Gleg Engineers Pvt. Ltd., Mumbai 


Rs. 242.79 lakh 




2 RCC elevated reservoirs & 1 RCC ground level reservoir 

5.1.3 GMC Water Supply Pre-Construction 


approved by PIU/DSC. The contractor firm has established 

its office in a rented building in Lalghati area. Work of finding 

safe bearing capacity of soil has also been completed at the 

two sites, Koh-e-fiza and Shahpura. 

The overall cost estimate of the 11 water supply contract packages for Gwalior amounts to Rs. 

11,389.48 lakh, equating to 83% above the PAM allocated amount. To date, all concept reports, 

design reports and bidding documents have been approved, out of which invitation for bids have 

been prepared for 10 contract packages, amounting to Rs. 11,262.98 lakh and 99% of the overall 

programme. 

Award of contract have been given for the below listed contracts, to the given dates, for 2 

International Shopping procurement contract packages and 5 civil works contract packages, for a 

total estimated amount of Rs.5,388.79 lakh, equating to 47% of the overall water supply programme: 

GWL/WS/01 IS 30-09-06 Supply/install bulk meters (19 Nos.) & (bulk con. 6 Nos.) 

GWL/WS/05 IS 12-03-07 Phase II: 1,088 Nos. Con Meters: Non-Dom & Dom >1/2” 

GWL/WS/02 LCB IR 26-10-06 Rehab & Rectification of WTPs (2 Nos.) & CWPS (2 Nos.) 

GWL/WS/07 LCB IR 12-03-07 Rehab 600mm dia. CI Transmission Main: old WTP at 

Motijheel to Amkho OH Reservoir 

GWL/WS/08 LCB IR 16-03-07 OHSR’s, Sump at Lashkar East; Sump at Guda Pahad 

GWL/WS/11 LCB TK 27-01-07 WTP & Pump Hs (45 MLD) 

GWL/WS/12 LCB IR 12-03-07 Tighara Transmission main and feeder mains 

GMC has completed all four required clearances pertaining to the water supply contract packages, 

refer to Appendix–B. 

5.1.4 GMC Water Supply Construction Phase 

Of the 7 awarded contracts, work has progressed as follows: 


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PROJECT UDAY 



June 2007 


Package no. GWL/WS/01 Supply and install bulk meters 25 Nos. 

Name of Contractor: M/s Krohne Marshall Pvt. Ltd. Pune 


Rs. 119.14 lakh 

Date of Award: 16 .10.2007 


Works includes: Supply, Installation and Maintenance of 25 Nos. 

Electromagnetic flow meters. 

Material is ready. Third Party Inspection has been done. 

Dispatches will be received in the month of July 07. First 

meter is likely to be installed around 10 th July, 07. 

Package No. GWL/WS/05 1,088 Nos. Consumer Meters: Non-Dom & Dom above 1/2". 

Name of Contractor: M/s Chetas Control Systems Pvt. Ltd. 



Date of Award: 6 . 03.2007 



Supply, Installation and testing etc. of multi-Jet magnetically 

coupled water meters: 

- 15 mm 981 

- 20 mm 51 

- 25 mm 31 

- 50 mm 25 

Supply was dispatched from Italy about two week’s back 

and has reached India now. At present it is lying in the 

Mumbai Customs office for clearance. 

Package no. GWL/WS/02 Rehab and Rectification of WTPs (2 Nos.) and CWPS (2 

Nos.) 

Name of Contractor: M/s Subhash Projects & Maketing Ltd., Kolkata 


Rs. 864.61 lakh 


Time of completion: 12 months 


Rehabilitation of Civil, Mechanical and Electrical works. 

The contractor firm has delayed the work. But now sufficient 

progress has been made in the month of June 07. Cement 

grouting of 6 out of 22 filter beds and waste water sump has 

been completed. Work of changing filter media is under 

progress. Kova treatment of pump houses has also been 

done. Fencing work under progress Drawings of all 

mechanical & Electrical works have been approved by 

PIU/DSC. Drawings of Civil works submitted by the 

contractor firm are under process of checking / approval etc. 

by PIU/DSC. Third party Inspection of Transformers & all 

other electrical appliances has been completed. Essentially 

certificate is awaited. 

Package no. GWL/WS/07 

Rehab of 600mm dia. CI Transmission Main: old WTP at 

Motijheel to Amkho OH Reservoir. 


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June 2007 


Name of Contractor: M/s Vishwa Infrastructures & Services Pvt. Ltd, 

Secunderabad 


Rs. 577.95 lakh 

Date of Award: 10.03. 2007 



700mm dia. DI pipeline for 6,450m length. 

Essentiality certificate has been issued. Third party 

inspection for 1000m Pipes has already been done, out of 

which 500m have since been received at site. 

Package no. GWL/WS/08 Design & Construction of RCC Reservoirs. 

Name of Contractor: M/s Nirman, Bhavnagar in JV with M/s Gleg Engineers Pvt. 

Ltd. Mumbai. 


Rs. 1275.22 lakh 

Date of Award: 16. 03.2007 


Works includes: Construction of 11 ESR and 4 GSR (capacity 1.1 ml to 5.0 

ml in Gwalior town). 

Work of finding SBC of soil has started. Results of SBC for 6 

ESR have been received and the contractor firm has 

submitted design / drawings for 5 OHT which are under 

process of approval/ checking etc. 

Package no. GWL/WS/11 RWPS,WTP 45 MLD & Pump house CWR & CWPS 


Secunderabad 


Rs. 1242.80 lakh 

Date of Award: 29. 01. 2007 



Raw Water pumping station; 45 MLD capacity WTP; CWRcum-pumping 

station and associated works. 

Design / Drawings of Intake well and WTP have been 

submitted by the contractor firm, which are under process of 

approval by PIU/DSC. In the meantime General layout of 

Intake well has been submitted by the contractor firm and 

approved by the PIU/DSC and its excavation work is going 

to start in the first week of July’07. 

Package no. GWL/WS/12 Installation of Tighara transmission main and feeder mains. 


Secunderabad 


Rs. 1267.92 lakh 



Works includes: Supply, installation, testing and commissioning of 4,200m 

RWPM of 800mm dia. DI-k9 pipes and 9,500m CWPM of 

750mm dia. DI-k9 pipes, with allied works. 


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PROJECT UDAY 



June 2007 


5.1.5 JMC Water Supply Pre-Construction 

Third party inspection or 500m of 800mm dia. DI-k9 pipes 

has been done and these have been received at the site. 

The overall cost estimate of the 12 water supply contract packages for Jabalpur amounts to Rs. 

13,057.57 lakh, equating to 73% above the PAM allocated amount. To date, invitation for bids has 

been given for all contract packages. 

Award of contract has been given for the below listed contracts, to the given dates, for two 

International Shopping procurement contract packages and two civil works contract package, for a 

total estimated amount of Rs.1,096.23 lakh, equating to 8% of the overall water supply programme: 

JBP/WS/01 IS 31-10-07 Phase I: Supply/install bulk meters & bulk consumer meters 

JBP/WS/08 IS 13-03-07 Phase II: dom, non-dom & bulk meters (463 Nos) 

JBP/WS/04 LCB IR 06-03-07 Phase I: Rectification Pariyat Dam: overflow, intake & Dam 

JBP/WS/04 LCB IR 22-05-07 Distribution: Medical College & Polipather Areas 

Land issues remain pending for 8 clearances, which have yet to be finalized for contract packages 

JBP/WS/12 (OHSR’s); JBP/WS/18 (RW and feeder mains); and JBP/WS/16 (intake well and 

pumping main), refer to Appendix–B. 

5.1.6 JMC Water Supply Construction Phase 

Of the 4 contract packages, work has progressed as follows: 

Package no. JBP/WS/01 Supply/install bulk meters & bulk consumer mtrs (58 Nos). 

Name of Contractor: M/s Chetas Control System Pvt. Ltd,. Pune 






Supply, Installation, testing etc. of electromagnetic bulk 

meters & Woltman type bulk consumer meters- 58 nos. 

50 nos. Woltman type bulk meters have reached Jabalpur 

Transport Company. 8 Nos. Electromagnetic Flow Meters 

have been dispatched from Denmark and are likely to reach 

India in the month of July’07. 

Package no. JBP/WS/04 Rectification of Pariyat Dam: overflow, intake, gate & 

channel etc. 

Name of Contractor: M/s Piyush Rajani Construction in JV M/s Narendra Saluja, 

Jabalpu 


Rs. 244.66 lakh 




- Apron and side walls of the waste weir at Pariyat dam. 

- Open channel and inlet chambers at Pariyat Dam. 

- Flood diversion work at upstream of intake gate. 

- Installation of new sluice gate at intake structure. 

Work on apron of the waste weir continued with the removal 


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PROJECT UDAY 



June 2007 


of the damaged block concrete and casting of plum 

concrete started. Approx 800 cum of plum concrete has 

been poured against total quantity of 5100 cum. 

Flood diversion work at upstream of intake gate has also 

been completed and measurements of existing gate taken. 

Orders for procurement of new gate have been placed, 

which is likely to be received at the end of July, 2007. 

Package no. JBP/WS/07 Distribution system for medical college area & Polipathar 

area. 

Name of Contractor: M/s Electrosteel Ltd., Kolkata 


Rs. 728.69 lakh 




Distribution system- 76 km for medical college & Polipathar 

Areas. Work has recently been awarded. 

Distribution system for medical college area & Polipathar 

area. 

Package no. JBP/WS/08 Supply/installation of domestic, non-domestic and bulk 

meters. 

Name of Contractor: M/s Capstan Meters (India) Ltd., Jaipur 





Works includes: Supply, Installation , Testing, commissioning and 

maintenance of mechanical multi-jet type water meters for 

commercial consumers and 20mm above size for domestic 

consumers. 

Data sheet has been approved by the DSC/PIU. 

Manufacturing is under progress. 

5.1.7 IMC Water Supply Pre-Construction 

The overall cost estimate of the 21 water supply contract packages for Indore amounts to Rs. 

53,173.33 lakh, equating to 51% above the PAM allocated amount. To date, all concept reports 

have been completed, out of which design reports and bid documents have been prepared for 18 

packages for an investment of Rs. 46,013.33 lakh, which is 87% of the overall water supply 

allocation. Invitation for bids have been prepared for 17 packages for an investment of Rs. 

44,266.53 lakh, which is 83% of the overall water supply allocation. 

Award of contract has been given for the below listed contracts, to the given dates, for a single 

International Shopping procurement contract package and 11 civil works contract packages, for a 

total estimated amount of Rs.17,320.23 lakh, equating to 33% of the overall water supply 

programme: 

IND/WS/01 IS 19-10-06 EM Bulk meters on Pumping Main & Gravity Main 

IND/WS/02 LCR IR 23-05-07 Rehabilitation of Pump Houses at Yaswant Sagar & Narmada 

IND/WS/03 LCB IR 24-10-06 Rehabilitation of Yaswant Sagar WTP 

IND/WS/04 LCB IR 24-10-06 Leak detect/rectification: (Lot 1: Repair/replacement of valves); 


20

PROJECT UDAY 



June 2007 


(Lot 2: Rehab of 3,000 consumer connections) 

IND/WS/05 LCB IR 24-10-06 Phase II: Leak detection and rectification (>400mm dia) 

IND/WS/06 ICB TK 30-01-07 Construction of 900 MLD RW PStn. & Intake Well 

IND/WS/07 LCB TK 16-11-06 Construction of 132 kV/33 kV sub-station & HT Line 

IND/WS/10 ICB TK 16-01-07 Augmentation Narmada: Part A: 360 MLD WTP & Allied Works 

IND/WS/11-L1 ICB IR 29-06-07 Augmentation scheme from Narmada: 

Raw Water Pumping Main: (Lot 1 ) 

IND/WS/11-L2 ICB IR 29-06-07 Augmentation scheme from Narmada: 

Raw Water Pumping Main: (Lot 2 ) 

IND/WS/16 LCB TK 13-11-06 Construction of 7 no. O/H Storage Reservoirs 

IND/WS/20 LCB TK 29-06-07 Augmentation scheme from Narmada: 

Part C: Construction of Tunnels 


IND/WS/12 Lot 1 (gravity main) and IND/WS/13 (transmission main), refer to Appendix–B. 

5.1.8 IMC Water Supply Construction Phase 

The construction work has commenced for the following contracts to the details given: 

Package no. IND/WS/01 EM Bulk meters on Pumping Main & Gravity Main 

Name of Contractor: M/s Krohne Marshall Pvt. Ltd., Pune 


Rs. 130.61 lakh 




Supply, Installation, Testing, commissioning etc: 

- Electromagnetic Flow Meters - 13 nos. 

- Bulk Domestic Meters - 63 Nos. 

Third Party inspection has been done for Electromagnetic 

Flow Meters and part of bulk domestic meters on 26.06.07. 

The inspected material will be received at site in the month 

of July’07 

Package no. IND/WS/02 Rehabilitation of Pump Houses at Yaswant Sagar & 

Narmada. 

Name of Contractor: M/s Mathar & Platt Pumps Ltd., Pune 


Rs. 112.88 lakh 




Rehabilitation of pump houses and pumping plants. 

Work recently awarded. Work plan submitted by the 

contractor firm has been approved by DSC/PIU 

Package no. IND/WS/03 Rehabilitation of Yashwant Sagar Water Treatment Plant 

Name of Contractor: Joint Venture of M/s Asiatic Traders, Indore M/s Vichitra 

Prestressed Concrete Udyog, Indore & M/s Adroit Indore 


Rs. 111.12 lakh 



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PROJECT UDAY 



June 2007 


Time of completion: 


12 months 

Rehabilitation of Settling tanks, filter beds and other 

connected works 

Work on rehabilitation of 4 primary and 4 secondary settling 

tanks out of 8 each is almost complete and at present apoxy 

paint work is in progress. Construction of chlorinating 

building under progress & plastering being done. 

Rectification of two filter beds almost complete. 

Package no. IND/WS/04 Leak detect/rectify Lot-1: Repair/replacement of valves 

Name of Contractor: M/s Keti Construction (I) Ltd., Indore 



Date of Award: 24.10 .2006 



Replacement of 46 old valves 

30 valves have been manufactured and the remaining 16 

are under the process of manufacturing. Third party 

inspection of the above has also been done and 17 valves 

have been received at site. 

Package no. IND/WS/05 Leak detection and rectification (>400mm dia) 


Secunderabad 


Rs. 133.97 lakh 




Replacement of following feeder mains of 400 mm and 

above: 

- 400 mm 5 m (CI) 

- 500 mm 1780 m (PSC) 

- 600 mm 600 m (PSC) 

Pipes have been manufactured & their third party inspection 

completed. 1000m supply of 500 mm dia (PSC) pipes has 

been received and work of their laying, Jointing started. 

About 200 m length has been laid. 

Package no. IND/WS/06 Design, Construction and maintenance of 900 MLD capacity 

Raw Water Intake well 

Name of Contractor: M/s Nagarjuna Construction Co. Ltd. Hyderabad 


Rs. 2261.18 lakh 




Intake well and Raw Water pumping station of 900 MLD 

capacity. 

Work of excavation and base concrete has been completed 

for Intake well. The contractor firm has established their 

office. Work plan and General layout plan submitted by the 

contractor firm has been approved by DSC/PIU. 


22

PROJECT UDAY 



June 2007 


Package no. IND/WS/07 Construction of 132 kV/33 kV sub-station & HT Line 

Name of Contractor: M/s Asiatic Traders, Indore 


Rs. 2538.85 lakh 




Construction of 132 kv/33kv electric sub-station & HT line 

About 75% Design / Drawings approved. Leveling work of 

ground for 132 kv as well as 33 kv sub-stations has almost 

been completed. 

Package no. IND/WS/10 Design, Construction, commissioning O&M of 363 MLD 

output capacity water treatment plant near village Bhaklai 

Name of Contractor: M/s Enviro Control Associates Pvt. Ltd., Surat 


Rs. 3971.00 lakh 




Construction of 363 MLD WTP along with connected works 

Work Plan, General Layout Plan & Process Design 

submitted by the contractor firm have been approved by the 

PIU/DSC. Excavation work of clarifloculors has almost been 

completed. Construction of office building is under progress. 

Package no. IND/WS/16 Construction of Overhead Storage Reservoirs 

Name of Contractor: M/s Gondwana Engineers Pvt. Ltd., Nagpur 


Rs. 891.00 lakh 




7 Overhead reservoirs each of 3000 KL capacity at the 

following locations in the city, Staging: 

Sl. no. 1 to 5 - 20 meters 

Sl. no. 6 - 15 meters 

Sl. no. 7 - 10 meters 

1. Sangam Nagar: Staging completed, Beam’s work of 

bottom slab under progress; 

2. MIG Colony: Construction up to 18m height of 

columns above ground level has 

been completed; 

3. Zinsi Hat Maidan: Foundation work in progress; 

columns up to ground level bracing 

completed. 

4. Dravid Nagar: Foundation work completed along 

with ground level bracing. 

5. Urdu School: Foundation work in progress. 

Columns up to ground level bracing 

completed. 

6. M.Y. Hospital: Foundation work in progress. 

Columns up to ground level bracing 

completed. 

7. Vidur Nagar: Staging completed. 


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PROJECT UDAY 



June 2007 


5.2 Wastewater and Sanitation 

Refer to Table 5.2 for the city-wise progress of the wastewater component of the project. The total 

investment for this component amounts to Rs. 13,608.84 lakhs and comprises 11 contract 

packages. The overall investment of this component, according to current status of cost estimates, 

is 36% below the PAM allocated amount. 

Progress to date includes the completion of all concept reports design reports and bid documents 

have been submitted. 

Invitation for bids have been given for 10 contract packages for an investment of Rs.13,004.20 lakh, 

equating to 96% of the overall wastewater and sanitation programme. 

Award of 3 procurement contracts and one civil works contract (BPL/WW/04 for the installation of 

the treated effluent pipeline from Maholi to Dhamkheda) have been issued to date. Delivery of the 

below listed equipment has since been completed under packages PMU/WW/01, for Bhopal, 

Gwalior and Indore under central procurement through the PMU for vacuum and jetting cleaning 

equipment, for an investment of Rs.202.70 lakhs which is 1% of the overall wastewater and 

sanitation programme investment. The distribution of the equipment to the project cities has been 

completed as follows: 

• sewer suction cum jetting machines (8,500 litre) Bhp, 2 No.; Gwl, 1 No.; Ind, 3 No.; 

• suction Machine (4,500 litre) Gwl, 1 No.; 

• sewer suction cum jetting machines (3,000 litre) Bhp, 4 No.; and 

• Jetting machines (2,000 litre) Gwl, 1 No. 

In ensuring the required connectivity, it is essential to incorporate provisions for house connections, 

inclusive of sewer and sullage discharge, for which appropriate contracts are revised. 

5.2.1 Bhopal Wastewater 

The overall cost estimate of the 5 wastewater contract packages for Bhopal amounts to Rs. 

6,001.31 lakh, inclusive of the sanitation programme, which is above the PAM allocated amount by 

47%. All proposals for inclusion of sanitation schemes have been deferred to the JN-NURM 

programme. On site sanitation will be taken up under the AIF component of the programme, as part 

of an integrated development approach inclusive of water supply initiatives. 

To date, all concept reports, design reports and bid documents have been completed; and invitation 

to bids issued. 

Award of contract has been issued for the central procurement package, PMU/WW/01, for an 

investment of Rs.98.56 lakhs, and the civil works package BPL/WW/04 for the construction of the 

treated effluent pipeline from Maholi to Dhamkheda for an investment of Rs.245.40 lakhs, which 

totals 6% of the overall wastewater and sanitation programme investment. 

The procurement package, PMU/WW/01/BPL, has been completed with the delivery of equipment of 

2 nos. vacuum and jetting cleaning equipment of various capacities, to the Municipal Corporation for 

an investment of Rs.98.56 lakhs, which totals 1% of the overall wastewater and sanitation 

programme investment. 

Land issues remain pending for 3 clearances, which have yet to be finalized for contract package 

BPL/WW/05 for the sewage pumping stations, and continue to be unresolved, refer to Appendix–B. 


24

PROJECT UDAY 



June 2007 


The PIU claim that these outstanding clearances will be finalized shortly, although to date no 

noticeable progress is being made. 

Construction work has started for Package no. BPL/WW/04 (additional works for 25 MLD capacity 

STP at Maholi, Damkheda), according to the following status: 

Name of Contractor: M/s Rajani Construction Company, Bhopal. 



Date of Award: 

Providing , laying, Jointing, Testing etc. of ISI marked RCC 

non pressure pipes class NP 2 (with spigot / socket ends) 



(i) 900mm diameter for 2500 m 

(ii) 800 mm diameter for 200 m 

2500m long WBM road of 2.75 m width with 0.50m shoulder 

on each side. Total width of road 3.75m. 

5.2.2 Gwalior Wastewater 

Work has commenced on road laying of subgrade 

completed part 1600 mtr. and laying of GSB layer completed 

for 1040 mtr. Order for supply of pipes already placed & first 

lot received after third party inspection. The Contractor has 

established their site office & laboratory. 

Due to budget constraints, in February 2007, Gwalior MIC approved the removal of the wastewater 

and sanitation civil works components from the ADB programme, which are now to be implemented 

under UIDSSMT. On site sanitation will be taken up under the AIF component of the programme, as 

part of an integrated development approach inclusive of water supply initiatives. 

The PMU central procurement contract has since been completed, for the delivery of 3 nos. of 

vacuum and jetting cleaning equipment of various capacities, under package PMU/WW/01/GWL for 

an investment of Rs. 43.56 lakhs. 

5.2.3 Jabalpur Wastewater 

As Jabalpur presently does not have any form of conventional sewerage system in the city, the 

Municipal Corporation has deferred the procurement of the suction cum jetting equipment to be 

implemented under JN-NURM programme. This will better coincide with the scheduled time the 

proposed sewerage systems under the programme are due to be completed in 2009. All proposals 

for inclusion of sanitation schemes have been deferred to the JN-NURM programme. On site 

sanitation will be taken up under the AIF component of the programme, as part of an integrated 

development approach inclusive of water supply initiatives. 

The overall cost estimate of the 3 wastewater contract packages for Jabalpur amounts to Rs. 

6,898.75 lakh, which is above the PAM allocated amount by 22%. To date, invitation for bids have 

been issued for all packages. 


of JPL/WW/02 for the trunk and outfall sewer, and JPL/WW/04 for the STP at Kathonda, and 

continue to be unresolved, refer to Appendix–B. The PIU claimed that these outstanding 

clearances would be finalized by the end of this reported period but they remain unresolved. 


25

PROJECT UDAY 



June 2007 


5.2.4 Indore Wastewater 

The overall cost estimate of the 2 wastewater contract packages for Indore amounts to Rs. 665.22 

lakh, which is below the allocated amount by 88%. All proposals for inclusion of sanitation schemes 

have been deferred to the JN-NURM programme. On site sanitation will be taken up under the AIF 

component of the programme, as part of an integrated development approach inclusive of water 

supply initiatives. 

To date, all concept reports, design reports and bids documents have been prepared. 

Award of contract, and subsequent delivery of 3 number 8,500 litre vacuum jetting equipment, has 

been completed under the central procurement contract package PMU/WW/01 for an investment of 

Rs. 60.58 lakhs. 

No clearance procedures are required for the civil works contract. 

5.3 Solid Waste Management 

Gwalior has arranged implementation of their solid waste management programme under other 

funding and so has withdrawn from this component but has diverted the allocated budget to their 

water supply infrastructural development programmes. 

Refer to Table 5.3 for the city-wise progress of the solid waste management component of the 

project. The total investment for this component amounts to Rs. 3,272.49 lakhs and comprises 30 

contract packages, inclusive of 26 PMU centrally procured contract packages, which amounts to 4% 

less than the allocated amount. 

To date, all concept reports have been approved, out of which design reports and the invitation for 

bids have been issued for 29 contracts for an amount of Rs. 3,062.49 lakhs, equating to 94% of the 

overall solid waste management total. 

Contract have been completed for 25 procurement contract packages under central procurement 

through the PMU for purchase of equipment, under International Shopping for dumper trucks, 

dozers, excavators, loaders, and secondary collection and transportation equipment for an 

investment of Rs.1,130.76 lakhs, which is 35% of the overall programme. 

5.3.1 Bhopal Solid Waste Management 

The overall cost estimate of the 12 contract packages for Bhopal amounts to Rs.843.61 lakh, which 

is 15% below that of the PAM allocated amount. To date, all concept reports have been approved, 

out of which detailed design reports, bid documents and invitation for bids have been completed. 

Contracts have been completed for 10 procurement contracts with the delivery of dumper trucks, 

dozers, excavators, loaders, and secondary collection and transportation equipment to the BMC, for 

a total investment of Rs.534.93 lakh, equating to 63% of the overall programme. 

5.3.2 Jabalpur Solid Waste Management 

The overall cost estimate of the 7 contract packages, inclusive of 6 packages under PMU control 

procurement, amounts to Rs. 870.31 lakh, which is 24% above the PAM allocated amount. To date, 

all concept reports, detailed design report, bid documents and invitation for bids have been 

completed. 


26

PROJECT UDAY 



June 2007 


Contracts have been completed for the 6 procurement contract packages for a total investment of 

Rs.120.36 lakh, equating to 14% of the overall programme. 

All clearances regarding contract package JBP/SWM/04 for the Kathonda sanitary landfill site have 

been completed with the NOC from the Airport Authority issued on 10 th March 2007. 

5.3.3 Indore Solid Waste Management 

The total number of contract packages for Indore Municipal Corporation, comprise 2 civil works 

packages and 9 contracts for PMU centrally procurement of equipment, for a total estimated 

investment of Rs. 1,558.56 lakhs, which is 43% above that of the PAM allocated amount. 

To date, all concept reports, detailed design report, bid documents and invitation for bids have been 

completed. 

Contracts have been completed for the 9 procurement contract packages for a total investment of 

Rs.475.46 lakh, equating to 31% of the overall programme. 

5.4 Stormwater Drainage 

Indore has not included any stormwater drainage component in their infrastructural improvement 

programme. Due to budget constraints; Gwalior MIC, during February 2007, approved the removal 

of the drainage component from ADB Programme and recommended for implementation under 

UIDSSMT. 

Jabalpur MIC, during May 2007, approved the removal of their drainage component from ADB 

Programme and recommended for implementation under the JN-NURM programme. 

Refer to Table 5.4 for the city-wise progress of the stormwater drainage component of the project. 

The total investment for this component amounts to Rs.1,066.50 lakhs and comprises the single 

contract package BPL/DR/01 for the rehabilitation of Patra Nallah. 

This drainage scheme is an additional scheme, identified as a priority order need that was not 

initially included in the proposed development plan of the ADB Project. However, BMC are presently 

considering deferring this scheme to the JN-NURM programme. To date, the concept report, design 

report and bid documents have been prepared for BPL/DR/01. 


27

PROJECT UDAY 



June 2007 


6. URBAN GOVERNANCE AND INSTITUTIONAL DEVELOPMENT 

6.1 Social and Community Development 

Part B of the UWSEIP incorporates the Urban Governance and Institutional Development, inclusive 

of public participation elements, which is designed to increase the awareness and participation of 

the Project beneficiaries. The implementation of the social and community development component 

of the programme has involved the Municipal Action Plan for Poverty Reduction (MAPPR) approach, 

which includes the following funding components: 

• Area Improvement Fund (AIF): aimed at poorly served settlements, with inadequate 

infrastructure, which will attain integrated slum improvements through participatory planning. 

Funds to be available to the Municipal Corporation on an annual review basis; 

• Community Initiatives Fund (CIF): for the social sector inclusive of community facilities, 

education, income generation; and 

• The Water for Asia Cities Programme in India covering urban water conservation and demand 

management, to be financed through parallel co-financing by United Nations Human 

Settlements Programme (UN-Habitat). 

6.1.1 Slum Improvement Component under AIF & CIF 

The AIF/CIF component, for slum improvement and development initiatives, was deferred for DFID 

implementation, under the MPUSP programme, effectively from March 2006. However, the 

component was reinstated during April 2007, under an executive decision at GoMP level, with the 

proposal for including community managed water supply and sanitation schemes. These schemes 

will be identified for location within suitably selected slum areas, which fall outside of the overall 

water supply coverage boundaries under presently proposed urban infrastructural development 

programmes. 

Procedures and methodology for the implementation of the AIF/CIF programmes was prepared 

during the reported period. AIF/CIF schemes are to be identified for location within suitably selected 

slum areas, which fall outside of the overall water supply coverage boundaries under presently 

proposed urban infrastructural development programmes. 

It is proposed that the initial annual programme of infrastructural improvements, under the AIF 

component, will be conducted within the previously selected slums, for which 32 priority order slums 

have been selected since April 2006. These slums will again need verification and cross checking of 

intervening interventions being conducted by other agencies and projects. It is envisaged that 10 

slums for each of the Project Cities will be included under the AIF/CIF component, in accordance 

with the extent of scope of work and the PAM budget allocations. Viable schemes will include 

community managed water supply and sanitation schemes to provide comprehensive basic needs 

upgrading of slum and poor settlements. 

Subsequent annual allocations under AIF will be performance-based. This will be according to the 

monitoring and evaluation of the initial implementation stage and may be modified to provide an 

incentive based on an assessment of performance. 

6.1.2 Public Awareness Campaign Initiatives 

The need to closely coordinate with the associated engineering components continues to be 

pursued, through the preparation of public awareness data sheets, in compiling salient information 

regarding specific contract packages and related benefits to the community. 


28

PROJECT UDAY 



June 2007 


The expected post project impact, through reference to BME data, has also been recorded. 

Simultaneously, all details of community members/ representative groups are being incorporated 

within the data sheets, along with requisite public awareness action plans according to identified 

timeframes and milestone deliverables, inclusive of required PRC interventions. 

6.1.3 Gender Action Plan and Field Manual 

The draft Gender Field Manual was further developed by the DSC(E) community development 

experts during the course of the reported period, of which an amalgamated document is presently 

being completed in readiness for distribution to the PIU’s. 

Based on the essential details of the Gender Field Manual, a generic Gender Action Plan has been 

prepared, which will be circulated to the respective Municipal Corporations in readiness for 

arranging necessary coordination workshops on the subject matter and final preparation of the GAP 

by the respective PIU’s for approval by the city corporation. 

6.1.4 Land and Resettlement Issues 

The PIU’s have been officially requested to review all packages for land issues and resettlement 

requirements, along with verification in accordance with ADB Resettlement Guidelines, which also 

involves inclusion of an appropriate entitlement policy. 

It has also been pointed out to the respective PIU’s that involuntary resettlement includes all 

unavoidable resettlement losses that have resulted in disruption to the lives of affected people of the 

area where land is to be acquired, or government land is to be utilized, involving ADB infrastructural 

development. 

For the pro-poor element of the Project, particular emphasis has been stressed on enhancing the 

status and incomes of the poor and vulnerable related AP’s, in accordance with the rule is that AP’s 

should be at least as well off as they would have been in the absence of the infrastructural 

development interventions under the Project 

In line with the requirements of a Short Resettlement Plan and Entitlement Matrix, the PIU have 

been instructed to fully address the following: 

• Identify and clearly understand the gaps between existing land acquisition and resettlement 

policies of the state to that of ADB’s policy; 

• Review the eligibility criteria for Affected Persons, in line with the finalized designs and 

contracts. This will involve verification at site and review of all pipeline routings; 

• In addition to all concerned titleholders, identification and consultation with all related and 

concerned stakeholders, including appointed community representatives. This includes all 

categories of affected people; employees losing job and income opportunities; encroachers, 

informal settlers and all types and sizes of business enterprises, authorized or unauthorized; 

• Conduct coordination public meetings on a monthly basis; 

• Verify and revise the detailed asset inventories and valuation of the compensation packages; 

• Finalize the overall budget for land acquisition and resettlement costs; 

• Establish a Grievance Redress Mechanism for communications and reactions from all AP’s on 

specifics of the provided entitlements and compensation timeframe, inclusive of amicable 

resolution of any disputes and payment of compensation; 

• Include, as Appendices to the Resettlement Plan, all details of disclosures and compensation 

payments to AP’s; 

• Establish monitoring and evaluation provisions for tracking the number of persons compensated 

and resettled, restoration of incomes and any additional assistance provided; and 


29

PROJECT UDAY 



June 2007 


• Prepare a detailed timeframe cum work plan for the implementation of the Resettlement Plan. 

6.2 Financial Management 

The PMU continued to assist the city corporations in the formulation of their respective Financial 

Improvement Action Plans (FIAP’s); in accordance with the provisions of ADB guidelines, including 

accounting and budgeting reforms. 

The timeframe and scheduled dates of the FIAP have been revised allowing for the late signing of 

the Loan Agreement. The city corporations are to endorse and amend as appropriate with the 

consent of ADB, the State and GOI. 

Efforts have been made to coordinate the work of MPUSP, DFID, within identified areas of mutual 

reference, which is expected to be strengthened in months ahead for common gain and benefits. 

6.2.1 Common Project Incremental Costs 

The sharing of common incremental costs, both at City Corporation level and also at the PMU level, 

at the time of closure of the sub-projects was finalized by the PMU during May 2007. 

The allocation of common cost of PIU’s, expressed as % on direct cost and based on suitable 

estimates of the four city corporations, has since been circulated for uniform adoption and would 

ultimately require ratification by the Empowered Committee. 

6.2.2 Financial Improvement Action Plan 

The progress on Financial Improvement Action Plan (FIAP) for the project cities remains slow with 

the overall status being as follows: 

• Bhopal Municipal Corporation: the proposal for FIAP is approved by the MIC and the 

proposal for revision of rates is approved by the Parisad. 

• Gwalior Municipal Corporation: the proposal for FIAP has been approved by the MIC of GMC 

in principle with some modifications, and has since been approved by the Parisad. 

• Jabalpur Municipal Corporation: the proposal for FIAP has been approved by the MIC of 

JMC and ratified by Parisad members. The collection of water rates at revised rates 

continues. 

• Indore Municipal Corporation: the proposal for FIAP has been approved by the MIC of IMC 

and ratified by the Parisad members. The collection of water rates at revised rates continues. 

Bhopal Municipal Corporation: Progress has been recorded in the areas of ‘budgeting reform’, 

adopting ‘chart of accounts’ under NMAM. The progress in the area of compiling the ‘Opening 

Balance Sheet’ and other associated tasks are yet to gather momentum. PMC have been informed 

that BMC is looking for ‘outsourced agency’ to complete the tasks. 

The progress in the areas of Revenue Reform appears to be satisfactory and the Revenue 

Department has registered marginal growth in collection without recourse to ‘Tariff Revision”, which 

has been approved by MIC, but awaiting clearance from the Parisad Members. The growth in the 

revenue, as we understand, has resulted partially due to full computerization of billing process; 

which has resulted in improving the tax spread over greater numbers of tax payers, identified during 

the process of cleansing of records at ward levels. 


30

PROJECT UDAY 



June 2007 


Gwalior Municipal Corporation: Marginal progress have been reported in the areas of adoption of 

prescribed approved code structure for budgeting functions for the financial year 2007-2008. As 

informed, GMC is planning to adopt the code structure from the platform of budget coding system; 

which appears to be a rather rational approach, considering the present state of affairs of finance. 

GMC management has already decided to outsource a number of related activities under DFID 

assistance programme, including compilation of opening balance sheet; updating and valuation of 

fixed and current assets for incorporating in the opening balance sheet; and ascertainment of 

employee related activities. These have been cross checked with the concerned officials of DFID. 

However the progress on the tasks involved is yet to be assessed. In the Revenue area, there has 

been negative progress during the collection drive completed for the last financial year i.e. 2006- 

2007. 

The details of the progress, including analysis of poor performance, needs to be assessed in the 

next scheduled visit, planned for June 2007. Initially it has been informed that that the delays in the 

collection drive was due mainly to the ramifications of the recent election and other non-revenue 

activities, during the peak period of the collection drive. 

Jabalpur Municipal Corporation: During the month the review on the progress on financial and 

revenue improvement program was conducted in the Jabalpur City corporations (JMC) covering 

various identified areas where ‘reform programs’ were under way e.g. Computerization of Billing 

Process, Accounts and Budgeting Functions adopting Accrual Basis Accounting system as per 

National Municipal Accounting Manual, Financial Management reforms, Improvement in Revenue 

collection, Project Accounting functions and other allied areas for the corporations. 

Significant progress have been made during the last two months by adopting reformed budgeting 

process, and reformed ‘chart of accounts’ as per NMAM, framing new strategy for revenue 

generation. The progress in the areas of compiling opening balance sheet, which inter alia to 

include valuation of unrecorded assets etc has yet to gather momentum for the months ahead. 

Indore Municipal Corporation: It appears that some marginal progress has been noticed in the 

reform activities; but in the perspective of the entire reform programme, the progress made so far is 

not uniform and not as per the agreed timeframe. 

The areas where progress have been noticed are (a) Budgeting and adopting NMAM’s budget 

coding system (b) Computerized billing on an updated and improved data base and (c) System 

Software development for conversions of accounts from the existing improvised system to the 

system approved in NMAM. 

It is understood that the city management is looking for DFID’s assistance to cover the areas e.g. 

creation of asset records, opening balance sheet and streamlining transaction processing system. 

The progress in the areas of Revenue Reform is now under observation. 

6.2.3 Water Supply Management Improvement Plan 

The project cities have still yet to fully endorse their commitment to the formation of an autonomous 

and accountable water and sanitation department within the Municipal Corporation for long term 

improvement of the water supply management. 

This is an essential requirement of the loan agreement. A concept note and framework document 

has been issued to Municipal Corporation’s for formation of Water & Sanitation Department (WSD). 

Immediate follow-up actions required in formation of autonomous WSD: 

• acceptance of concept by MC’s; 


31

PROJECT UDAY 



June 2007 


• agreed revision to RRP timeframe; 

• identify required institutional strengthening; 

• setup organization, staffing & training for quality services; 

• fix service level standards & monitor; 

• WSD responsibility for billing & collection; and 

• formation of accounting dept & annual audit. 

6.3 Institutional Development 

Background literature available on the subject of State Municipal Services Regulatory Commission 

(SMSRC) has been reviewed and a draft paper on the subject prepared. 

Significant initiatives have been taken after studying the prevailing legal institutional framework of 

the state administrative hierarchy, which includes proposed reforms Urban Development Policy; 

Urban Reform Agenda; Urban Land Policy; and Unified Municipal Law for Madhya Pradesh. 

6.3.1 Programme Reforms 

The UDD and the Municipal Corporations of Bhopal, Indore, Gwalior & Jabalpur are currently 

engaged in implementation of reforms from the three streams of MP URBAN (ADB) Project, 

including Urban Development Policy; Jawahar National Urban Renewal Mission; and Policy 

Interventions from UADD. 

Efforts have been made to identify various items included in the three streams, which have been 

divided into common groups so that a uniform and comprehensive approach may be adopted for 

implementation. 

Capacity Building, being an all inclusive group, is to be considered separately. The tool kits on the 

reform agenda under the mission, prepared and circulated by the Ministry of Urban Development, 

have been further studied. 

6.3.2 Urban Development Policy 

The draft Urban Development Policy document was further edited and revised, along with updates 

on the Hindi translation. Representative text in the form of an executive summary of the entire 

document has been prepared, which is due for translation into Hindi. 

This comprehensive document, as it stands, indicates the steps to be taken in institutional, 

legislative, financial, empowerment of ULB’S, urban planning, city planning, water supply, slum 

development, which is to be taken up for implementation. 

A review meeting was held in the presence of the Principal Secretary on the 30 th June 2007 to 

discuss the salient details of the draft Urban Development Policy document, in terms of the tabled 

Executive Summary, and to identify required strategies for approval of the document. It was agreed 

that the way forward would be to address the document according to distinctive sections, which 

would be prepared as three separate Policy Papers, as follows: 

• Issues within the UADD; 

• Reallocation of business between departments under the Minister UAD & Housing; and 

• Issues relating to other departments of the government like Revenue, PHED etc. 


32

PROJECT UDAY 



June 2007 


6.3.3 State Level Body for Resource Mobilization 

Two different proposals on the subject setting up of an Infrastructure Development Corporation or 

Urban development Fund have been under discussion. 

It appears that tentatively the view is in favor of setting up of the Urban Improvement Fund for which 

further steps are likely to be taken by the UADD. 

6.3.4 Metropolitan Planning & Regional Development Authority 

This proposal to constitute four Metropolitan Regional Development Authorities under an initial 

phase, for the area in and around the towns having population greater than or nearing 10 lakhs, was 

further developed and is being pursued with the Director, Town & Country Planning. 

A paper is under preparation, which complies to institutional arrangements in consonance with the 

74 th Constitutional Amendment Act 1992. 

6.3.5 Urban Sanitation Mission 

Proposals are under preparation for the setting up an Urban Sanitation Mission in the state and the 

Institutional expert has given inputs on the components of the policy, its structure and legal 

framework for implementing various measures. 

A review meeting of the status of the Urban Sanitation Mission was conducted on the 23 rd April 

2007, which included detailed discussions regarding the following related issues: 

• future strategies to be followed in further pursuing the proposed policies; 

• Legal provisions; 

• Intentions for urban sanitation; 

• Budgetary expectations; 

• Staffing requirements; and 

• Enforcement measures. 

6.3.6 Water Supply & Sewerage Board for MP 

In accordance with recommendations made for the formation of an autonomous Water Supply and 

Sanitation Body, a workshop was organized and held on the 10 th May 2007 regarding the “Delivery 

of Services in Urban Areas and the Role of Municipal Services Regulatory Commission”. The 

Workshop was well attended with a number of prominent speakers presenting papers on the subject 

matter. 

6.4 Project Performance Management Report 

A Project Performance Management Report (PPMR), in the form of a report according to ADB 

format, which incorporates the following sections, was submitted to the PMU for comments and 

approval during May 2007: 

• Basic Project data; 

• Impact and outcome summarized data; 

• Implementation progress data and analysis; 

• Rating criteria for assessment of implementation; 

• Overall weighted implementation progress status; and 

• Compliance with ADB Key Loan Covenants. 


33

PROJECT UDAY 



June 2007 


6.5 Management Information System 

6.5.1 Financial Information 

Activities for the Finance module have included the creation of Bill/Invoice, which was further 

updated and fully tested with trial data and submitted to PMU Finance for checking and commenting 

on the MIS provisions. In addition to this, a Fund Requisition Management module, for PIU to PMU 

data transfer, was completed, which requires trial checking by the PMU. 

“Reimbursement Claim” module automates the process of sending the Reimbursement claim to 

ADB in a user friendly manner. 

“Tax Deduction at Source” module deals with the TDS details of the bills submitted by the contractor 

along with Gross Amount, Rate of Tax Deduction, Tax Amount, Cheque No., Date of Tax, Challan 

no. and Challan date. This tax information will be reflected in the main report. This module has now 

been completed but needs to be trial tested. 

“TDS Update” module provides user options to update the existing data of the TDS for the 

Contractor. This module has now been completed but needs to be trial tested. 

“ADB Reimbursement Claim Report” has been developed for which a print can be send directly to 

ADB for reimbursement of funds. This module has now been partially completed and is scheduled 

for completion by mid June 2007. 

6.5.2 Physical and Financial Tracking 

Work was further progressed on the Physical and Financial tracking of data for the contract 

packages, which involves defining the contract activities in terms of generic categories according to 

the type of infrastructural development and the corresponding input data of specific items of the Bill 

of Quantities (BoQ). This will later be developed for inclusion of a tracking compliance to the 

contractor’s work plan and insertion of graphical presentation of data. 

The Financial input will be linked to specific BoQ data for each package and include the associated 

rates and quantity data. A system of weighted ranking has been prepared according to the 

significance of particular elements of the works, which is to be used for tracking physical progress. 

“Bill/Invoice Report” provides interface to select Contractor/Package and time frame. Then it lists all 

the information related with the bills along with ADB Share, GoMP Share and ULB Share and on 

top, it lists Total Package Cost, Package Duration and total of all the numeric columns. This module 

has now been completed but needs to be trial tested. Further work has been progressed on the 

development of the following: 

• BOQ Activities: Creates a list of predefined activities; 

• Package Category: Creates a list of predefined Categories and assigned Packages to the 

Category; 

• BOQ Packages: Assigned predefined static information as per the BOQs of the package 

such as Unit, Qty., Amount, Weightage, Link ID of the BOQ’s document; and 

• Update of BOQ Packages: Provides user interface and functionality for the updating of the 

data. 

The “BOQ Main” is the main program and has the interface where a user first selects the Contract 

Type and then related package under the Contract Type. The user will see all the bills already 

added to it and list of available bills which can be added. The user can also select and add the 

available bills by checking the checkboxes. Based on this information, reports will be prepared, 


34

PROJECT UDAY 



June 2007 


which will reflect the status of the packages as per the assigned weightage and calculation of the 

physical and financial progress in terms of percentages. 

6.6 Implementation of e-tendering Process 

During the reported period work was continued by the appointed service provider, M/s abcprocure, 

in the preparation of uploaded documents for conducting the online bidding processes, inclusive of 

post bid notification of evaluations on the web. 

To date, a total of 57 contract documents, inclusive of the preparation of pre-qualification forms and 

financial bid forms, have been completed, which comprise of the following, refer to Appendix-D for 

full details: 

• 18 contracts for Bhopal, inclusive of 4 contracts for re-bidding (BPL/WS/05, BPL/WS/07, 

BPL/WS/08 and BPL/WS/12); 

• 8 contracts for Gwalior and no re-bidding; 

• 21 contracts for Jabalpur, inclusive of inclusive of 2 contracts for re-bidding (JPL/WS/12 and 

JBP/WS/02); and 

• 11 contracts for Indore, inclusive of inclusive of one contract for re-bidding (IND/SWM/05). 

6.7 Monitoring of Outstanding Clearances 

Tracking of the progress made by the respective PIU’s in finalization of the pending clearances 

continued during the reported period. However, progress continues to be very slow with poor 

response by the associated agencies and ongoing slippage and delays taking place. 

Only 14 clearances, out of a total of 38, have been completed to date, refer to Appendix-B for full 

details of the associated agencies and present status of the respective contract packages. 

BMC has 7 outstanding clearances, with the last scheduled clearance to be finalized in October 

2007 for the implementation of Patra Nallah, for which clearance requirements have yet to be fully 

identified. 

GMC has completed all their clearances. 

No progress has been made during the month by JMC, which has only managed to clear 3 of their 

15 clearances. Indore has cleared 7 of their 11 clearances. 

IMC has 7 outstanding clearances, with the last scheduled clearance to be finalized in October 2007 

for the implementation of Patra Nallah, for which clearance requirements have yet to be fully 

identified. 


35

PROJECT UDAY 



June 2007 


7. COMPLIANCE WITH ADB MAJOR LOAN COVENANTS 

The status of compliance with the ADB Covenants as stipulated within the Loan Agreement (LA), 

referred in Schedule 6 of the PAM document and appropriate RRP Appendices, is detailed in 

accordance with progress made up to the 30 th June 2007. 

Note: Important milestones scheduled within PAM and the RRP have been revised as appropriate 

due to the delayed start to the UWSEIP programme. 

ADB Major Loan Covenant 

L.A. 

Sch-6 

Ref.: 

Status of Compliance 

7.1 Sector Loan Covenants 

7.1.1 Urban Water Supply Management 

Improvement Plan (UWSMIP) 

The State shall ensure that the Project City 

Corporations undertake the actions to meet 

the long-term objective of improving water 

supply management in accordance with the 

timetable agreed among the State, the 

Project City Corporations and ADB and 

attached as Appendix 9 to the RRP for the 

Project, unless otherwise agreed among the 

State, ADB and the Project City Corporation. 

7.1.2 Municipal Action Plan for Poverty 

Reduction 

The State shall ensure that each Project City 

Corporation prepares an initial MAPPR within 

one year of the Effective date and annually 

thereafter for submission to the PMU in 

accordance with the MAPPR framework 

agreed among the Borrower, the State and 

the Project Cities and attached to the RRP 

for the Project as Supplementary Appendix 

E. 

7.1.3 Adequate AIF & CIF Allocations 

The State shall ensure that adequate 

allocations are made: 

(i) from the AIF to the Project City 

Corporations; and 

Para 

8. 

Para 

10. 

Para 

11. 

Framework document, for formation of 

autonomous Water & Sanitation 

Department (WSD) in MP, under review, 

inclusive of: 

• acceptance of concept by MC’s; 

• agreed revision to RRP timeframe; 

• identify required institutional 

strengthening; 

• setup organization, staffing & training for 

quality services; 

• fix service level standards & monitor; 

• WSD responsibility for billing & 

collection; 

• form accounting dept & annual audit. 

Data collection and analysis has been 

collected, according to the MAPPR 

approach, for all slums in each city by UN- 

Habitat. 

Under UWSEIP, MAPPR approach 

adopted in initial identification of 32 priority 

order pre-selection slums under AIF 

completed Oct-Dec 2005. Was deferred to 

MPUSP (but reinstated April 2007). 

AIF allocations made in compliance with 

the budget provisions of the PAM. 

Verification, according to slum selection 

and community needs. Was deferred to 



36

PROJECT UDAY 



June 2007 



(ii) from the CIF to the PIUs for community 

based activities. 

In each case only for approved schemes 

under the MAPPR and in a manner 

satisfactory to ADB. 

The State shall ensure that the Quarterly 

Reports (refer Section 5.6) prepared by the 

PMU include progress made and statements 

on use of funds under AIF and CIF. 

7.1.4 MAPPR Appraisal 

The State shall ensure that the PMU 

undertakes an appraisal of each MAPPR, 

including an appraisal of the schemes funded 

from the AIF and CIF, on an annual basis in 

the third quarter of each MAPPR cycle. 

7.2 Environmental Loan Covenants 

L.A. 

Sch-6 

Ref.: 

Para 

12. 


CIF allocations made in compliance with 

the budget provisions of the PAM, 

verification, according to community 

development programme. Was deferred to 


Quarterly AIF & CIF data, as progressed 

to date, is to be furnished according to 

community development programme. 

Was deferred to MPUSP (but reinstated 

April 2007). 

To comply as appropriate. Interrupted 

MAPPR cycle. Was deferred to MPUSP 

(but reinstated April 2007). 

7.2.1 

Environmental Management Plan 

The State and the project City Corporations 

shall ensure that the Project is carried out in 

accordance with the existing environmental 

laws and regulations of India and ADB’s 

environmental guidelines, in particular the 

Environment Policy of the Asian 

Development Bank (2002); 

(a) all monitoring and mitigation measures 

indicated in the Initial Environmental 

Examination and provided for under the 

Environmental Management Plan are 

undertaken for the Project 

(b) Project implementation shall include 

consultation with local communities on 

environmental issues; 

(c) Project City Corporations shall take a 

proactive role in environmental planning, 

management and monitoring; 

(d) State Pollution Control Board clearance 

shall be obtained for all applicable 

Project components prior to 

commencement of work on those 

components; and 

Para 

14. 

Under compliance in accordance with 

ADB Environmental Policy and 

Environmental Assessment Guidelines 

2003. 

Under compliance: IEE screening of 

potential environmental impact and 

mitigation measures applied according to 

project location, specific sector 

development and associated design 

requirements. 

Under compliance: as the design stage is 

progressed. This is also forming part of 

the undergoing public awareness 

campaigns. 

Under compliance: Initiated as the concept 

and detailed design stages and being 

progressed. 

Under compliance: All necessary 

clearances presently under pursuance. 

Specific clearance details are now 

compiled for appropriate contract 

packages. Clearance Plan prepared to a 

scheduled timeframe, which is monitored 

for submissions to the various agencies in 


37

PROJECT UDAY 



June 2007 



(e) existing waste disposal sites that have 

reached full capacity shall be properly 

sealed within three months of 

commencement of operation of the new 

sanitary landfills. 

7.2.2 Indore Namada WS Pipeline RoW 

Enforcement 

The State shall ensure that the route of the 

proposed water supply transmission pipeline 

from Narmada River to Indore shall be within 

the existing right-of-way with no new 

acquisition of forest or other land, unless 

identified as necessary during detail Project 

design. 

7.2.3 Wastewater Discharge Protocol 

The State shall ensure that Indore City 

Corporation is allowed to discharge and treat 

sewage in the sewage treatment plants 

constructed under the centrally sponsored 

schemes prior to award of sewerage network 

contracts under the Project. 

7.2.4 Operation & Maintenance 


Corporation undertakes operation and 

maintenance of Project facilities in 

accordance with good practice for water 

supply, sewerage and solid waste 

management, and in accordance with the 

regulations of India and of the State. 

7.3 Social Loan Covenants 

7.3.1 Public Participation & Awareness 

Program: WAC Program 

The State shall ensure that Bhopal shall 

implement the WAC Program in accordance 

with the detailed implementation strategy and 

plan to be agreed by the Borrower, the State, 

Indore, ADB and UN-HABITAT. 

The Borrower and the State shall have 

entered into an agreement with UN-HABITAT 

to implement the WAC Program in Indore 

within six months of the Effective Date. 

L.A. 

Sch-6 

Ref.: 

Para 

16. 

Para 

17. 

Para 

20. 

Para 

9. 


obtaining the necessary clearances. 

Relevant clauses are placed in the 

Contract Document in accordance with 

SWM Supreme Court Guidelines. 

Complied with by the Indore Municipal 

Corporation: No pending RoW’s issues, 

with land ownership title and right of way 

requirements finalized with the Highway 

Department (via Collector Indore) and 

Forestry Dept. (via Collector Khargone): 

Complied with by the Indore Municipal 

Corporation. 

Shall be ensured as required. 

Will form part of the training requirement in 

effective O&M practices. 

Complied: Water Demand Management 

study in Indore conducted by UN- 

HABITAT, in accordance with the 

recommended implementing strategies. 

WDM Report issued February 2006. 

Complied 


38

PROJECT UDAY 



June 2007 



L.A. 

Sch-6 

Ref.: 


7.3.2 Gender Action Plan 

The State shall ensure that the Gender 

Action Plan as agreed among the Borrower, 

the State and ADB and set out in 

supplementary Appendix J to the RRP for 

the Project is implemented. 

The PMU to prepare field manuals and 

conduct training on the Gender Action Plan 

for the PMU and PIU staff. 

7.3.3 Land Acquisition and Resettlement 

a) The State shall cause the Short 

Resettlement Plan (attached to the RRP for 

the Project as Supplementary Appendix G) 

relating to the sewage treatment plant in 

Jabalpur, including the provision of all 

required counterpart funds for agreed 

compensation to affected persons to be 

implemented in a manner satisfactory to ADB 

prior to award of the civil works contracts. 

Para 

13. 

Para 

15a) 

Draft generic Gender Action Plan, 

incorporating Project Implementation and 

Urban Governance areas of focus, under 

revision for reinstatement of AIF/CIF 

component for circulation to city 

corporations. 

Draft Gender Field Manual being edited 

for incorporating comments received from 

the city corporations. City level training on 

use of the manual and specific GAP 

preparation by MC’s to be imparted: 

modules and schedule to be determined. 

Contract Packages: 

JBP/WW/04 for 50 MLD STP & 

JBP/SWM/03 for sanitary landfill sites at 

Khathonda: details of the Short 

Resettlement Plan being followed, for the 

identified households affected by loss of 

agricultural land (10 nos.) and households 

affected by loss of residential structure (4 

Nos.). 

Total affected persons 121 Nos. 

Due to revised layout plan of STP and 

SLF site, number of Khasra/owners 17. 

7.3.4 

Resettlement Plan 

b) The State shall ensure that: 

(i) Project components are designed so as 

to minimize resettlement; and 

(ii) If, during detailed design of Project 

components, involuntary resettlement 

arises from land acquisition or temporary 

disruption of income generation, a 

resettlement plan (the Resettlement Plan) 

shall be prepared and implemented in 

accordance with: 

• Government laws and 

procedures; 

• ADB’s Policy on Involuntary 

Resettlement; and 

• the Project’s agreed Land 

Acquisition and Resettlement 

Framework (attached to the RRP 

for the Project as Supplementary 

Appendix F). 

Para 

15b) 

Complied: general policy adopted for all 

designs. 

To date involuntary resettlement has not 

been required, but shall comply if 

requirement occurs. 


39

PROJECT UDAY 



June 2007 



L.A. 

Sch-6 

Ref.: 


7.3.5 

Involuntary Resettlement 

c) If any Involuntary Resettlement is required 

as described in paragraph 3.4(ii) above, 

based on the final engineering designs for 

the Project, the State shall prepare the 

Resettlement Plan, submit this for ADB’s 

approval and ensure the provision of all 

required counterpart funds for agreed 

compensation to affected persons prior to 

award of civil works contracts in the affected 

area. 

ADB’s approval of the Resettlement Plan and 

disbursement of agreed compensation shall 

be a condition for award of civil works 

contracts in the affected area. 

7.3.6 Land Acquisition 

d) All land required for a Project component, 

including any that may entail involuntary 

resettlement, shall be acquired no later than 

twelve months after loan effectiveness, 

failing which the component shall be 

eliminated from the Project unless ADB 

agree otherwise. 

7.4 Financial Loan Covenants 

7.4.1 Financial Improvement Action Plan (FIAP) 

The State shall cause each Project City 

Corporation to prepare and submit a 

resolution to its Municipal Council to execute 

the Financial Improvement Action Plan in 

accordance with the timetable agreed with 

ADB within one month from the Effective 

Date. 

Para 

15c) 

Para 

15d) 

Para 

6. 

Shall comply, as applicable. 

Shall comply, as required and as 

applicable. Policy for disbursements, prior 

to award of contracts to be adhered to. 

The timeframe planning for completion of 

all land issues is being managed, for 

which LA issues are being addressed 

according to project location and 

implicated agency. 

Advance action being taken to ensure full 

compliance. 

Bhopal Municipal Corporation: the proposal 

for FIAP is approved by the MIC. The 

proposal for revision of rates is approved 

by the Parisad. 

Gwalior Municipal Corporation: the 

proposal for FIAP has been approved by 

the MIC of GMC in principle with some 

modifications, and has since been 

approved by the Parishad. 

Jabalpur Municipal Corporation: the 

proposal for FIAP has been approved by 

the MIC of JMC and ratified by Parisad 

members. The collection of water rates at 

revised rates continues. 

Indore Municipal Corporation: the proposal 

for FIAP has been approved by the MIC of 


40

PROJECT UDAY 



June 2007 



L.A. 

Sch-6 

Ref.: 


IMC and ratified by the Parisad members. 

The collection of water rates at revised 

rates continues. 

7.4.2 

Agreed Timetable for FIAP 

The State shall ensure that the Project City 

Corporations execute the Financial 

Management Improvement Action Plan, in 

accordance with the timetable agreed among 

the Borrower, the State, the Project City 

Corporations and ADB and attached as 

Appendix 12 to the RRP for the Project, 

including: 

(a) revision in water charges and 

introduction of progressive block rate 

water tariff; 

(b) reassessment of properties and revision 

in taxes; 

Para 

7. 

Para 

7a). 

Para 

7b). 

The timeframe and scheduled dates of the 

FIAP has been revised allowing for the 

late signing of the Loan Agreement. 

The FIAP’s have been translated to Hindi 

and circulated to all MC’s in ensuring 

effective monitoring. 

The water tariff revision status is as 

follows: 

• Bhopal: water tariff revision proposal 

from current Rs.60/ mth to Rs.150/mth 

and annual increments of Rs.10/mth: 

approved by MIC, approved in 

principal by Parisad. 

• Gwalior: proposed increase in tariff 

from current Rs.60/ mth approved by 

MIC and ratified by the Parisad. 

• Jabalpur: tariff revision dated 

06.07.06, retroactive from 01.04.06: 

Domestic metered: rate increase from 

Rs.3 to 3.5/kl; 

Bulk & non-domestic metered: rate 

increase from Rs.9 to 13.5/kl; 

Domestic non-metered: from 60 to 70 

Rs./mth (½” dia); from 120 to 180 

Rs./mth (¾” dia). 

Commercial: increased by 50% for all 

bulk consumption categories 

• Indore: tariff revision dated 11.09.06, 

active from 01.10.06: 

Domestic metered: rate increase from 

Rs.10 to 11/kl, & annual increments of 

Rs.1/kl thereafter; 

Domestic non-metered (½” dia): from 

60 to 150 Rs./mth & annual 

increments thereafter. 

Commercial and Industrial: increased 

for all size of connections, and further 

increased annually up to 2015. 

Being examined with the City 

Corporations. 

• Reassessment/ revaluation of 

properties 

• revision in taxes 

(c) introduction of sewerage surcharge; and Para Included as part FIAP commitment. 


41

PROJECT UDAY 



June 2007 



(d) improved collection efficiency. 

There shall be no amendments to the 

timetable without the prior consent of the 

ADB. 

7.4.3 Allocation of Resources 

The State shall allocate, and shall ensure 

that the Project City Corporations allocate, 

adequate amounts in their annual budgets to 

meet their respective investment 

requirements in accordance with the 

disbursement schedule in each Project City. 

7.4.4 PMU & PIU’s Accounts, Records & Audit 

The State shall ensure that the PMU and 

PIUs establish and maintain separate 

accounts and records adequate to identify 

the incomes and expenditures related to the 


Detailed consolidated annual Project 

accounts, as maintained by the PMU, shall 

be audited by independent auditors 

acceptable to ADB and shall be submitted to 

ADB within nine months of the close of the 

fiscal year. 

The annual audit shall include the audit of 

the SGIA and SOE procedure, and a 

separate audit opinion on the use of the 

SGIA and SOE procedure shall be included 

in the annual audit report. 

7.4.5 Audit of Accounts of Project Cities 

The State shall ensure that a system of audit 

of accounts by externally appointed auditors 

is introduced for the Project Cities. 

The External auditors shall complete the 

audit of accounts of the Project City 

Corporations within nine months of each 

year-end. 

7.4.6 Financial Assistance to Low-Income 

Groups 

The State shall ensure that Project City 

Corporations maintain a facility for providing 

financial assistance to the low-income group 

L.A. 

Sch-6 

Ref.: 

7c) 

Para 

7d) 

Para 

21. 

Para 

22. 

Para 

23. 

Para 

18. 


Included as part FIAP commitment, with a 

marginal improvement in collection 

efficiency. 

The timeframe and scheduled dates of the 

FIAP has been revised allowing for the 

late signing of the Loan Agreement. 

The Financing Plan for each of the Project 

Cities has been finalized. 

The Cities have been informed of the total 

Project cost and their required financial 

commitment under annual phasing. 

PMU and PIU’s are maintaining separate 

accounts and records adequate to identify 

the incomes and expenditures related to 

the project. 

Independent Auditor, Mishra Tiwari & 

Associates, Bhopal, appointed. Audit 

Report for FY 2006-07 sent to ADB. 

The audit of accounts conducted in 

accordance with the loan covenants in the 

scheduled period. 

The audit shall be conducted as per 

schedule 

Shall comply. 

Is an intrinsic part of the CIF and shall be 

taken up with Municipal Corporations, as 

required. 


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households (Income limit shall be fixed in 

consultation with ADB) to ensure connection 

to the water and sewer systems. 

7.4.7 Regular Payment of Electricity Bills 

The State shall endeavor that the Project 

City Corporations are regular in payment of 

their electricity bills to the Madhya Pradesh 

State Electricity Board and shall not 

accumulate any new arrears starting in the 

Borrower’s fiscal year beginning April 2005. 

7.5 Other Related Loan Covenants 

7.5.1 Established, Staffed and Operating 

PMU/PIU 

As the Project Executing Agency, UADD 

shall be responsible for the execution of the 


L.A. 

Sch-6 

Ref.: 

Para 

19. 

Para 

1. 


Efforts are being made to strengthen 

financial resources of Municipal 

Corporations so that they are in position to 

pay regularly electricity bills and not to 

accumulate new arrears. Strategies being 

formulated at Government level for 

offsetting arrears balance against MC 

dues. MC arrear data being reconciled 

with MP State Electricity Board. 

Complied. 

7.5.2 Fielding of Consultants: 

UADD shall maintain the Project 

Management Unit (PMU), which shall be 

responsible for coordination and 

management of the Project and which shall 

report to the Principal Secretary/Secretary, 

UADD. 

The PMU shall be led by a fulltime Project 

Director who shall be charged exclusively 

with the execution of the Project and who 

shall have no other duties within UADD. 

There shall be at least one deputy project 

director (DPD) to be responsible for 

management and implementation of the 

urban infrastructure and services, overseeing 

and guiding the urban governance and 

institutional development by qualified and 

compliance with Loan covenants. 

UADD shall ensure that the PMU is staffed 

by qualified and experienced staff who shall 

be appointed as required throughout the 

period of Project implementation. 

Para 

2. 

Complied 

PMU is led by Project Director 

Complied 

Complied 


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7.5.3 Project Implementation Units (PIU’s) 

The State shall ensure that a PIU is 

maintained in each Project City and the 

respective PIUs are headed by the Municipal 

Commissioner concerned and supported by 

full-time senior technical personal 

experienced in public health and 

environmental engineering. 

Each PIU shall comprise 3 sections: 

(i) urban infrastructure and 

services; 

(ii) community awareness and 

participation; and 

(iii) finance and administration. 

Each PIU shall be staffed by qualified and 

experienced staff who shall be appointed as 

required throughout the period of Project 

implementation. 

7.5.4 Empowered Committee 

The State shall cause an Empowered 

Committee to be established and shall 

delegate, or cause to be delegated, to the 

Empowered Committee appropriate authority 

to take decisions on matters related to the 


The Empowered Committee shall consist of 

the Project Director as Member Secretary, 

the Chief Secretary (chair person), UADD, 

Public Health Engineering Department 

(PHED) and Finance Department of the 

State, and Commissioner of UADD. Other 

relevant officials may be invited as 

necessary. 

The State shall ensure that the Empowered 

Committee shall hold its first meeting within 

three months of the Effective Date and at 

least once every three months thereafter to 

review Project performance and take 

decisions on major issues including 

counterpart funding, implementation 

bottlenecks, land disputes, procurement and 

policy reforms. 

L.A. 

Sch-6 

Ref.: 

Para 

3. 

Para 

4. 


UADD has established PIU’s in each city 

to implement the project. PIU’s are 

working under the concerned Municipal 

Commissioner. 

PIU’s are headed by senior Engineers 

experienced in Public Health and 

Environmental Engineering. PIU’s staff 

consists of Water Supply, Waste Water 

and Civil Engs, Procurement Officer, 

Community Development Officer, 

Accounts Officer, Administrative Officer, 

supporting staff. 

The Total strength sanctioned is 70 

officials in four PIU’s. Presently the PIU’s 

are understaffed and some are not 

exclusively dedicated. Efforts are being 

made to strengthen the PIU’s. 

Empowered Committee has been 

constituted vide State Government order 

dated 11.08.04. Empowered committee 

has been delegated powers of UADD, 

Finance Department and Public Health 

Engineering for the implementation of 

project. 

The issues requiring approval of State 

Cabinet will be referred there and for all 

other matters, the Empowered Committee 

has been delegated authority. 

Complied: EC convenes on a regular 

basis. The EC is chaired by the Chief 

Secretary and consists of Principal 

Secretary UADD, Principal Secretary 

Finance, Principal Secretary Public Health 

Engineering, Commissioner Urban 

Administration and Development 

Department. Project director, UWSEIMP is 

the Member Secretary of Empowered 

Committee. 


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7.5.5 City Steering Committees 


Corporation establishes a City Steering 

Committees to monitor and guide the 

performance of the PIU. 

For each City Steering Committee, the Mayor 

of the Project City shall be the chair. The 

committee, under the chairmanship of the 

Mayor, shall comprise the Collector of the 

relevant District or his/her nominee, 

representatives from PHED, the State 

Pollution Control Board, the State Electricity 

Board and four elected municipal counselors 

(including one women and one from a 

Scheduled Caste of Scheduled Tribe) of the 

respective ULBs. 

The State shall ensure that each City 

Steering Committee shall hold its first 

meeting within three months of the Effective 

Date, and at least once every three months 

thereafter. 

7.5.6 Quarterly Progress Reports 

a) The State shall provide ADB with 

Quarterly Progress Reports on Project 

implementation. The PMU shall be 

responsible for obtaining and consolidating 

relevant information from the respective PIUs 

for the progress reports which shall provide: 

(i) a description of physical progress; 

(ii) details of any modification required to the 

Project implementation schedule; 

(iii) problems encountered; 

(iv) use of AIF and CIF; 

(v) an outline of the work in the ensuring 

quarter; and 

(vi) summary financial accounts of the 

Project, consisting of expenditure during 

the quarter, year-to-date expenditure 

during the quarter, year-to-date 

expenditure and expenditure to date. 

7.5.7 Project Completion Report 

b) The State shall ensure that the PMU shall 

submit to ADB within three months of the 

physical completion of the Project, a Project 

Completion Report that shall cover the 

details of Project implementation, costs, 

monitoring and evaluation activities and other 

information requested by ADB. 

L.A. 

Sch-6 

Ref.: 

Para 

5. 

Para 

24a) 

Para 

24b) 


UADD vide order dated 8.06.04 has 

constituted Steering Committee in each 

town under Chairmanship of Divisional 

Commissioner. 

The Committee consists of Mayor, 

Collector, Commissioner Municipal 

Corporation, Leader of opposition in 

Municipal Corporation, Project Director 

UWSEIMP, Member Secretary Pollution 

Control Board, Member Secretary 

Chamber of Commerce MP, Active Social 

Woman worker nominated by chairman. 

The Steering Committees hold regular 

meetings. 

Complied: The Quarterly Progress Report 

is issued to ADB on a regular basis. 

Shall comply at the appropriate time. 


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June 2007 


7.5.8 


Project Performance Three-Tier Reviews 

L.A. 

Sch-6 

Ref.: 


The State shall ensure that Project 

Performance shall be reviewed in a three-tier 

system comprising the reviews set out below. 

(a) The PMU shall review the progress on 

each component and the performance 

of each PIU in the first ten days of the 

month for the previous month’s 

performance. Based on this review and 

in consultation with the relevant DSC, 

the PMU shall suggest changes in the 

Project design and implementation or 

refer the issues to the Empowered 

Committee. The review report shall be 

sent to ADB, the Empowered 

Committee and the city-level Steering 

Committees for necessary action. 

(b) The Empowered Committee shall 

conduct the second tier review during 

each quarterly meeting. The 

proceedings of the review shall be 

circulated to ADB, UADD and Project 

City Corporations; 

(c) The State shall ensure that each 

Project City Corporation shall participate 

in the third tier review by ADB 

approximately every six months during 

Project implementation. 

Para 

25. 

Para 

25a) 

Para 

25b) 

Para 

25c) 

Project review shall be according to the 3 

tier system as suggested. 

Monthly review being conducted. 

Scheduled quarterly meetings underway. 

Project progress reviews being conducted 

by ADB. 

7.5.9 Mid-Term Review 

In addition to reviews undertaken during 

Project Implementation, the Borrower and 

the State shall carry out a comprehensive 

Mid-Term Review approximately 24 months 

after the Effective Date to critically evaluate 

actual Project progress, implementation 

procedures, procurement methodology, 

public relations and community awareness, 

BME activities and the performance of the 

design and supervision consultants. 

The Borrower and the State shall ensure that 

ADB shall have the right to participate in the 

Mid-Term Review. 

Following the review, the Borrower and the 

State shall ensure that appropriate corrective 

action is taken. 

Para 

26. 

Shall comply as required 

Shall comply as required. 

Shall comply as required 


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PROJECT UDAY 



June 2007 


7.5.10 


Project Performance Monitoring System 

(PPMS) 

The State shall ensure that the PMU shall 

establish a PPMS acceptable to ADB that 

monitors indicators including: 

(i) physical progress for infrastructure works; 

(ii) institutional development and capacity 

building; and 

(iii) impact assessment indicators. 

The State shall ensure that the PMU shall 

conduct initial baseline physical and socioeconomic 

surveys and submit a detailed 

implementation plan for monitoring 

performance and for preparing benchmark 

information for ADB’s review and 

concurrence within six months of the 

effective date. 

L.A. 

Sch-6 

Ref.: 

Para 

27. 


Project Performance Monitoring System 

acceptable to ADB is under preparation. 

Indicators being logged against 

programme sector deliverables and impact 

parameters. 

Initial baseline physical and socioeconomic 

surveys conducted by BME 

Consultant, according to the BME Plan, for 

which BME Reports submitted. 

Thereafter, the PMU shall submit annual 

monitoring and evaluation reports to ADB 

throughout the Project implementation. 

Shall comply in accordance with the 

provisions of the BMEC contract, as 

required. 


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8. RELATED ACTIVITIES AND ISSUES 

8.1.1 Integrity of Contracts and Realisation of Benefits 

As the phased award of contract continues, it is inevitable that there is going to be a period of time 

when contracts for elements of the water supply systems, inclusive of intake, WTP, pumping, 

transmission and feeder mains, are going to be completed well in advance of the distribution 

contracts. This will have an adverse impact on the overall realization of benefits to sections of the 

city scheduled for water supply house connections under the programme but who will not avail the 

improved consumer service until comparatively quite late during implementation. 

8.1.2 Finalization of Approvals & Resettlement Issues 

All requisite approvals and land acquisition related issues still require to be fully addressed. This is 

particularly the case for Bhopal, where NOC’s for the proposed land for the transfer station under 

the solid waste management component has yet to be given. This is also the case for the treatment 

plant sites, where Initial Environmental Examination (IEE) and possible further in depth 

Environmental Impact Assessments (EIA) may have to be conducted. 

Award of contracts should not be progressed unless all clearances pertaining to land, resettlement 

and environment have been satisfactorily resolved in full compliance of ADB guidelines and 

procedures. The PMU continue to instruct the Municipal Corporations to expedite the approvals 

process, in obtaining all related and necessary environmental clearances, for which the issue is 

being closely monitored. 

8.1.3 Disparity between WS and WW Programmes 

Currently all the project cities do not have adequate wastewater treatment provisions, contrary to 

basic environmental and health requirements. Although the UWSEIP Project includes a wastewater 

and sanitation component, under present ADB allocated funding, most wastewater funding has 

been transferred to the water supply sector. 

Furthermore, all cities are presently developing their water supply infrastructural development 

programmes well in advance of implementation of wastewater initiatives. 

8.1.4 JN-NURM Programme 

A number of projects, according to sector development of the Project Cities, are to be taken up 

under JN-NURM, which will effectively be complementary to the UWSEIP programme. Full 

coordination of the two development initiatives is imperative in order to ensure economic viability 

and the required levels of technical compatibility. 

8.1.5 Poor deployment of Staff to Municipal Corporations 

Community Development Expert: It is of concern that, as of yet, not one community development 

officer has been mobilized into the PIU’s and furthermore the community development expert of the 

DSC(W) at Indore has long since been demobilized. It is of utmost importance that this situation is 

quickly rectified, as the need for extensive public awareness programmes has never been so acute 

and gathers momentum in line with the advent of the construction phase. 

Furthermore, the well established DSC(E) community development experts of Gwalior and Bhopal 

have now been recruited across to the MPUSP DFID programme, effective from the 1 st June 2007. 

This “poaching” of staff has taken place without allowing any form of handover by the DSC(E) or 


48

PROJECT UDAY 



June 2007 


coordination to the counterpart ADB project departments by MPUSP DFID. This will inevitably leave 

a damaging void in the overall ADB community development programme, which will take months to 

recover. 

Construction Supervision Staff: Field supervisory staff of the PIU is considered inadequate with very 

little possibility of ensuring the desired degree of knowledge transfer from the DSC’s and hence 

substandard continuity of the supervisory stage. This shortage of staff will become more acute when 

all civil works contracts get well under way. 


49

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APPENDIX-B: 



PROJECT UDAY 



June 2007 


APPENDIX-A: 

Infrastructural Improvement Progress Status 

Bhopal .....................................................................Sheet 1 of 8 

Gwalior .....................................................................Sheet 3 of 8 

Jabalpur ...................................................................Sheet 5 of 8 

Indore ......................................................................Sheet 7 of 8 


PROJECT UDAY 



June 2007 


APPENDIX-C: 



PROJECT UDAY 



June 2007 


APPENDIX-E: 

Financial Status (30 th June 2007) 


PROJECT UDAY 



June 2007 


APPENDIX-D: 



PROJECT UDAY 



June 2007 


CHAPTER 1 

Introduction 


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CHAPTER 2 

Fund Utilization 


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CHAPTER 3 

Status of Implementation Arrangements 


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June 2007 


CHAPTER 4 

Project Implementation Progress 


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CHAPTER 5 

Urban Water Supply and 

Environmental Improvement 


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June 2007 


CHAPTER 6 

Urban Governance and 

Institutional Development 


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June 2007 


CHAPTER 7 

Compliance with ADB 

Major Loan Covenants 


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CHAPTER 8 

Related Activities and Issues 


PROJECT UDAY 



June 2007 


List of Appendices: 

Appendix A: 

Appendix B: 

Appendix C: 

Appendix D: 

Implementation Schedule Progress Status: 

Bhopal .....................................................................Sheet 1 of 8 

Gwalior .....................................................................Sheet 3 of 8 

Jabalpur ...................................................................Sheet 5 of 8 

Indore ......................................................................Sheet 7 of 8 




Appendix E: Financial Status (30 th June 2007)

Government of Madhya Pradesh - Project Uday

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