ജപ്പാൻ കുടിവെള്ള പദ്ധതി

Ex-ante Evaluation (for Japanese ODA Loan)
1. Name of the Project

Country: India
Project: Kerala Water Supply Project (III)
Loan Agreement: March 31, 2009
Loan Amount: 12,727 million Yen
Borrower: The President of India
2. Background and Necessity of the Project

(1) Current State and Issues of the Water Supply / Sewage and Sanitation Sectors in
India
In India, demand for water usage is increasing with its population and economic
growth, but, from a lack of infrastructure, the water supply shortage is becoming acute.
Further, reliance on groundwater is lowering the groundwater level and leading to higher
content of fluorine, arsenic, and other toxic substances. Also, with a sudden population
influx in the urban areas along with industrialization, sewage emission is exceeding
treatment which threatens the public health and living environment of local residents. In
terms of operation and maintenance of water supply services, there are technical and
financial issues such as water quality, non-revenue water and level of water tariff, etc.
(2) Development Policies and for the Water Supply / Sewage and Sanitation Sectors in
India / Kerala State and the Priority of the Project
In its Eleventh Five Year Plan (April 2007 – March 2012) the Indian Government
has outlined a goal of providing water supply, sewage and sanitation facilities to all the
urban population by 2011/2012. Further, in the current administration’s Common
Minimum Programme (May 2004), there is a commitment to expand public investment in
water supply facilities, and the supply of drinking water to all levels of society in both
urban and rural areas, and increasing drinking water supplies is one of the top-priority
issues.
In Thiruvananthapuram, the state capital of Kerala, and in Kozhikode, water supply
facilities have not been improved to meet the growing population resulting from
urbanization, and there is a severe water supply shortage.
(3) Japan and JICA’s Policy and Operations in the Water Supply / Sewerage Sectors in
India
Taking into account the rapidly growing urban population, Japan and JICA have
supported the supply of adequate and safe drinking water and the remediation of poor
public sanitation conditions in order to improve living standards and to prevent water
contamination in major rivers. Further, in rural areas, water infrastructure projects are
supported as part of the development of basic infrastructure for improving the living
environment of the poor. In Japanese ODA Loans, in the water supply / sewage and
sanitation sector, 20 projects with loans totaling over 343.2 billion Yen have been
approved. Further, as technical assistance and grants, policy advisors and other experts
have been dispatched three times since 2004.
(4) Other Donors’ Activity
The World Bank and ADB have provided assistance to the water supply / sewage
sectors as part of their measures to reduce poverty in India. Focus areas are (a)
assistance to states / cities that are proactive in making reforms, (b) promotion of
competition in service improvements in water supply / sewage service among local
governments, (c) rationalization of water tariff levels, (d) utilization of private sector
resources and (e) consideration of poverty impacts. Note as of 2007, approved
assistance of the World Bank totaled $4,031 million and of the ADB $543 million.
(5) Necessity of the Project
While the population coverage of water supply services has increased from 54% in
1996 to 65% in 2006, Kerala, with a population of over 32 million remains one of the
states in India with the lowest percentage of water supply coverage along with the
North-Eastern states, This project is the third phase of the Project, in continuation of
Kerala Water Supply Project (1996) and Kerala Water Supply Project (II) (2006) .
In this project, water supply facilities will be constructed or rehabilitated in five
areas with a total population of 3.4 million (2006), of which only 1.45 million currently has
access to safe water supply. In particular in the Cherthala region, Meenad village and
Pattuvam village, population coverage is extremely small, with less than 10%. In these
three areas, although people are heavily relying on groundwater due to a lack of surface
water supply, groundwater quality is rapidly deteriorating as sea water permeates the
underground water, and therefore development of surface water resources is urgently
required. There is also a sever water supply shortage in Thiruvananthapuram, the state
capital of Kerala, and in Kozhikode. In these two areas, the percentage of non-revenue
water including leaked water is over 30%, which is extremely high. Accordingly, there is a
high level of necessity and relevance for JICA to support this project to provide safe and
stable water supply service by constructing new and rehabilitating water supply facilities
and improving operation efficiency of the executing agency.
3. Project Description
(1) Project Objective(s)
The objective of this project is to provide safe and stable water supply service to
meet the growing demand for water by installing water supply facilities in the state of
Kerala in southern India; thereby contributing to improving living conditions of the local
residents.
(2) Project Site / Target Area
Thiruvananthapuram, Kozhikode, Cherthala, Meenad, Pattuvam, and the surrounding
areas.
(3) Project Component(s)
1) Water supply facilities: Construction of water intake facilities / conducting tubes /
treatment plants / water mains / distribution reservoirs / distribution pipes and
rehabilitation of existing facilities
2) Consulting services: Detailed design, tendering assistance supervision, project
oversight, etc.
3) Institutional strengthening of the executing agency: IT system development,
equipment procurement, training, etc.
(4) Estimated Project Costs (Loan Amount)
75,150 million yen (ODA loan amount: 12,727 million yen)
(5) Schedule
August 1997 – December 2010 (160 months). The project completion is defined as
completion of the construction and consulting service.
(6) Project Implementation Structure
1) Borrower: The President of India
2) Executing Agency: Kerala Water Authority (KWA)
3) Operation and Maintenance System: Same as 2) above.
(7) Environmental and Social Consideration/Poverty Reduction/Social Development
1) Environmental and Social Consideration
a) Category: Does not apply
b) Reasons for categorization: For this project, the “OECF Guidelines for
Environmental Considerations” (first edition) are applied. (Furthermore, this project is
classified as Category B under the “Japan Bank for International Cooperation Guidelines
for Confirmation of Environmental and Social Considerations” (established April 2002)
because it was determined that the project will not have any significant undesirable
impact on the environment given that the characteristics of the sector is not likely to exert
impact, and the characteristics of the region make it unsusceptible to impact.)
c) Environmental Permit:The EIA report is not required for the project in the country’s
legal system.
d) Anti-Pollution Measures: No ground subsidence is foreseen due to intake of
surface water from rivers in each area. The sludge generated at the water treatment
plant will be processed at sludge treatment facilities to be constructed inside the water
treatment plant sites.
e) Natural Environment: The project site is not located in and around any sensitive
areas such as national parks, and it is likely to have a minimal adverse impact on the
natural environment.
f) Social Environment: Land acquisition of 76.38 ha has been completed as of
November 2008, and the remaining 0.75 ha is proceeding in accordance with the
country’s domestic procedures. The resident relocation of 8 households in Kozhikode
and 5 households in Cherthala has been completed in accordance with the country’s
domestic procedures.
g) Other/Monitoring: KWA will monitor water quality, etc.
2) Promotion of Poverty Reduction: Improvement in living standards in poor regions.
3) Promotion of Social Development (e.g. Gender Perspective, Measure for Infectious
Diseases Including HIV/AIDS, Participatory Development, Consideration for Persons
with Disabilities, etc.): None.
(8) Collaboration with Other Donors: None.
(9) Other Important Issues: None.
4. Targeted Outcomes
(1) Performance Indicators (Operation and Effect Indicator)
Indicator Baseline Target (2012)
(Actual value in 2006)
[Expected value 2 years after completion]
Thiruvananthapuram Kozhikode and the Thiruvananthapuram and Kozhikode and the
and the surrounding surrounding area the surrounding area surrounding area
area
Total population 698 560 845 1,011
served (thousand
persons)
Amount of water 190,000 72,000 264,000 246,000
supply (m3/day)
Rate of facility - - 95 95
utilization (%)
Non-revenue 37 30 29 25
water rate (%)
Percentage of 77 52 90 90
population served
(%)

Cherthala and the Meenad and the Cherthala and the Meenad and the
surrounding area surrounding area surrounding area surrounding area
Total population 54 70 559 453
served (thousand
persons)
Amount of water 7,000 13,000 111,000 73,000
supply (m3/day)
Rate of facility - - 85 85
utilization (%)
Non-revenue - - 19 19
water rate (%)
Percentage of 10 16 100 100
population served
(%)

Pattuvam and the surrounding area Pattuvam and the surrounding area
Total population 69 405
served (thousand
persons)
Amount of water 9,000 93,000
supply (m3/day)
Rate of facility - 85
utilization (%)
Non-revenue - 19
water rate (%)
Percentage of 16 90
population served
(%)
(2) Internal Rate of Return

Based on the conditions indicated below, the project’s Economic Internal Rate of Return
(EIRR) is 8.7%.
[EIRR]
Cost: Project cost (excluding tax), operation and maintenance expenses
Benefit: Increase in willingness to pay for water tariff
Project life: 40 years
5. External Factors and Risk Control

None
6. Lessons Learned from Past Projects

From ex-post evaluations of previous projects, it has been learned that that it is
necessary to study measures to strengthen management of the water services from the
project formation and appraisal stage. In this project, it is decided to take measures
including those for reduction of non-revenue water rate, improvement of financial
condition, reinforcement of public relations and improvement of information system etc.
Additionally, from previous water supply services, it has been learned that it is
important to use water tariff received from users for investment in the water supply
services, and this can be done by establishing a public company or introducing
self-sustained system. In this project, received water tariffs will become income of the
Water Authority, and be used for water supply operations, so as to function as incentives
to improve the cost recovery of the executing agency.
7. Plans for Future Evaluation

(1) Indicators to be Used
1) Total population served (thousand persons)
2) Amount of water supply (m/day)
3) Rate of facility utilization (%)
4) Non-revenue water rate (%)
5) Percentage of population served (%)
6) Internal rate of return: EIRR (%)
(2) Timing
2 years after project completion.
End

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Ex-ante Evaluation (for Japanese ODA Loan)

1. Name of the Project

2. Background and Necessity of the Project

Indicator Baseline Target (2012)

Indicator Baseline Target (2012)

(2) Internal Rate of Return

5. External Factors and Risk Control

6. Lessons Learned from Past Projects

7. Plans for Future Evaluation

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