URBAN MANAGEMENT IN KARNATAKA

URBAN DEVELOPMENT DEPARTMENT

Government of Karnataka

Directorate of Municipal Administration9th floor, V.V. Tower, Dr. Ambedkar Veedhi

Bangalore 560 001

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Urban Scenario in Karnataka

Total population 52.73 million (Census 2001)

Share of urban population is 34% against

National average of 28%

Projected to reach 38% by 2011

Growth rate 28.86% (last decade)

3rd among most urbanized states

Total 214 ULBs

City Corporations – 08

City Municipal Councils - 44(0.5 to 3.0 lakhs population)

Town Municipal Councils - 94 (0.20 to 0.50 lakhs population)

Town Panchayaths - 68(0.1 to 0.2 lakhs population)

The rapid economy growth in the last two decades in Karnataka has been accompanied by the drastic increase in urbanization levels declaring it as third most urbanized state in India. The cities are under immense pressure to meet the growing demands and aspiration of their citizens in a qualitative, cost economic and sustainable manner. The cities are transformed as engines for economic growth. This pace of transition in amalgamation with degradation of natural resources, has posed a huge challenge for city governing bodies. These bodies needs to build their capacities to tackle the emerging issues and problems which are resulting in undesirable levels of service delivery and insufficient utilization of available resources; largely due to information gaps, inadequate resource mobilization and lack of effective planning, management and monitoring.

In this changing scenario the Urban Development Depar tment of the state is fostering, equipping and empowering the governing bodies with required capacities, human resources, policies, funds, tools, etc.; enabling them to improve the citizen's quality of life. Numerous schemes and policies aiming for betterment and improvement of urban poor, women, unemployed youths, general citizens are being rolled out in past two years in various sectors. Projects are being nurture to measure the city performance, analyze trends and impacts of policies; reflect developmental trends; and to provide quantitative and qualitative information to citizens. The state government in parallel is establishing an effective monitoring and review system in cities, to enhance ease in administration, transparency, accountability and effective monitoring against the set global standards.

The various agencies under the umbrella of Urban Development Depar tments are working together to build better cities for tomorrow. They are; DMA, monitoring and managing the overall cities administration and governance; KUIDFC, introducing reforms in service sectors with facilitating the external funding aid; DTP, developing strategic plans integrating spatial planning for cities.

Lets join together to build clean and green cities for qualitative life of its citizens.

Note on Urban Development

Department

Key Initiatives

Strong cadre of 130 Karnataka Municipal Administrative Service Officers.

Good mix of regular / Outsourced staff.

District Urban Development Cell Created at district level.

Environmental Engineers, Accountants and IT Engineers Positioned at ULBs level.

Private Chartered Accountants for initial handholding for Financial System at ULB level.

Common C&R Rule for Municipal Staff.

Intensive Training of more than 23,000 functionaries at all level and of Elected representatives for capacity building in the last two years.

Better UrbanInfrastructure

‘Nagarothana’ A special Infrastructure Development scheme.

About 7354 Works

Rs. 100 Crore for each of 7 City Corporations (1370 works)District Headquarter ULBs - Rs. 30 Crores eachTaluk Headquarter ULBs - Rs. 5 Crores eachRemaining ULBs - Rs. 2 Crore each

- Road & Drainage, Water Supply, Welfare of SC & STs, Improving Infrastructure Facility in Slum Areas.In Last 2 Years - Rs. 2154 Crore Budgetary Allocation.

In Bangalore City during 08-09 and 09-10

About 1038 Kms Road asphalted Costing Rs.452 Crore.

About 238 Kms Cement Concrete Road done Costing Rs.110 Crore.

Steps taken to ensure Quality in Assets Creation

3rd party agency for inspectione-TenderingVigilance squadDisplay of work details/status on ULBs websiteEffective contract management to overcome time and cost overruns.

Competent and Qualified Manpower

Decentralized Administration

Statutory powers delegated to Director of Municipal Administration / Deputy Commissioners / Assistant Commissioners.

Review and Supervision of development works by Deputy Commissioners.

Financial Power of ULBs up to Rs.30 lakhs.

Procurement approval powers up to Rs.1 cr. to Deputy Commissioner (District Collector).

Technical sanction powers up to Rs.50 lakhs to Executive Engineers at District level.

Service matter of Group ‘C’ and Group ‘D’ delegated to Director of Municipal Administration/ Deputy Commissioners.

Pioneer state in devolution of State fund to ULBs by setting up of State Finance Commission.

8% of State Non Loan Net Owned Revenue Receipt (NLNORR), Rs.2500 crore devolved to ULBs as recommended by State Finance Commission. Salary of all municipal staff, their pension payment is ensured.Untied fund provided for development works.

Capital value based Scientific Self Assessment System of property tax collection introduced in 213 urban local bodies and ARV based SAS in BBMP.Revision of Property Tax with an increase of 15 to 30% after every 3 years.

Devolution of funds to ULBs/ Optimum Resource Mobilization

Optimum Resource Mobilization

Incentive for payment of Property Tax in time.

Payment kiosks in major cities through Karnataka-1 Initiatives

User charge concept introduced in Solid Waste Management and Underground Drainage system.

Commercial use of municipal land to enhance revenue through public private partnership/ system of pooled fund.

Use of GIS technology for property tax management introduced in all ULBs.

6 lakhs un-assessed properties brought on record.

Karnataka Water & Sanitation Pooled Fund Trust (KWSPF) created to bridge the resource gap.Rs.100 crore Tax Free Municipal Bonds raised for Greater Bangalore Water and Sanitation Project (GBWASP) without Govt. guarantee.Rs.300 crore raised in 2009-10 from the market by securitization of the future SFC Devolution of ULBs without Govt. guarantee. Proposed to raise Rs. 400 crore during 2010-11.To raise funds for financing construction of Commercial Complexes in vacant Municipal lands.

Innovative Mode of Financing for ULBs

Transparency in Financial & Accounting System

Fund Based Accounting System operationalised

Fully Computerized Accounting System generating all Financial Statements like Balance Sheet, Receipts and Payments Account, Budget variance report, City Management Report etc.

Financial Audit of Accounts done by Chartered Accountants in addition to Audit by Local Audit Circle to bring transparency in financial matters.

New Manual for Accounting and Budgeting Introduced based on principles of National Municipal Accounting Manual.

Maintaining computerized Assets Register in ULBs.

Community Participation,Transparency & Accountability

Community Participation Law envisaged to institutionalize citizens participation in Municipal Governance.

Involvement of citizens in preparation of Municipal Budget and Comprehensive development plan.

Special Citizen-Officials interaction Meetings conducted at Ward levels.

Public Disclosure Law in ULBs envisaged.

Dissemination of information to citizen through websites.

Disclosure of Service Level Information made mandatory for ULBs by notification issued under RTI Act, 2005.

To ensure declaration of information voluntarily about the functioning of ULBs on periodic basis to the public.

Disclosure of Financial and Audited statements by ULBs under the Karnataka Local Fund Authorities Fiscal Responsibility Act, 2003.Welfare Measures

Urban Poor & SCs/STsfor

22.75% of State Finance Commission (SFC) and Municipal Fund spent for providing basic infrastructure facilities to SCs/STs. Rs. 600 - 700 crore spent every year. 20% of ‘Nagarothana’ fund , Rs. 300 crore, is being spent for improvement of basic civic amenities in slum areas.

20% of sites earmarked for economically weaker sections In all the Government/ Semi Govt. layouts .Free Individual household connection for water and UGD to 20,000 SCs/STs people under the scheme ‘Nirmal Ganga’.Skill development training for 35,000 urban youths.

For slum free city planning, slum household and livelihood survey has been started in all 214 ULBs.

Project commissioned to demonstrate 24/7 pressured water supply Demo Zones in Belgaum, Hubli-Dharwad and Gulbarga cities through Private Sector Participation.Pro-poor policy of the Govt. adopted while providing Services and fixing WaterTariff to Urban Poor under the project.Scaling up to the rest of the areas in the three cities is under progress.Proposed to provide 24/7 water supply to 4 coastal towns under India Infrastructure Project Development Fund (IIPDF) on PPP basis.Proposed to provide 24/7 water supply to Ilkal town and some other towns of North Karnataka under Performance Based Management Contract (PBMC).

Public Private Participation (PPP) Initiatives

Use of IT for improved Service Delivery Mechanism

Centralized Data Centre at Bangalore.

Every ULB has its own website with regular updation.

Personnel Information system of Municipal Employees.

System of e-Procurement put in place in major ULBs.

Web-based Service Level Benchmarking to generate information for rating the efficiency of service delivery.

Computerized Registration and issuing of Birth & Death certificates. 50 lakh Birth & Death records have been converted into Electronic Form.

Scientific Management of Municipal Solid Wastes

Door to Door collection of household waste by involving Self Help Groups and Resident Welfare Associations.

Manual scavenging totally eradicated.

Use of modern equipment like street sweeping machine, sucking/jetting machine, compactors. Use of intermediate waste transfer stations to improve secondary transportation.

Public Grievance Redressal System with provisions to lodge complaints either by visiting/through Telephone call/Internet. Citizen kiosks (Karnataka-1) - a payment gateway to citizensVideo Conferencing through Karnataka State Wide Area NetworkGIS based tax system (AASTHI) for effective collection of property tax and for improving property tax net.Introduction of automatic Building Plan approval in Hubli-Dharwad, soon it will be introduced in other major ULBs.

Use of IT to improve service delivery Efficiency

Scientific landfill sites developed in Mangalore, Belgaum, Shimoga with composting facility. Vehicle tracking system and use of GPS for locating containers to improve efficiency of secondary transportation and ensuring lifting of municipal waste.Promoting use of plastic in construction of roads.

Use of Spatial Information Technology

for Planning & Development

Use of latest Satellite Maps while preparing master plan for cities.

Creating city maps with property polygons by using satellite maps and total station survey.

Process of Utility mapping started in 51 major ULBs to improve basic services like drinking water supply & under ground drainage.

To overcome the delay in land acquisition process, finality of award and civil litigation, Government of Karnataka has notified provision for development of new residential layouts by the Urban Development Authorities on sharing basis with land owners on 60:40 basis.

National Urban Water Award

National Urban Sanitation Award 2009-10

For Providing 24x7 water supply in Belgaum, Hubli-Dharwar and GulbargaFor water sector reforms in Kundapur and Chitradurga

Five cities namely Mysore, Mangalore, Bangalore, Mandya and Bidar among top 25 cities in the country

Recognition at National Level

New Urban Development Policy

State Government has formulated a New Urban Development Policy with focus on

Good governance and restructuring the Parastatal Agencies.

Integrating land use policy.

Integrating Investment Planning for urban infrastructure and services.

Focus on conservation and environment protection.

Emphasis on Resource Mobilization and capacity building in ULBs.

Urban scenario in Karnataka

Key Policy Initiatives for Good Governance

Better Urban Infrastructure

Special package of Rs.100 crore to each 7 City Corporations:

During the last few decades, India has undergone a dramatic demographic shift; its predominantly rural population has been rapidly urbanizing, and over 300 million Indians now live in cities. During 1991-2001, urban Karnataka grew more than 2.5 times as fast as the rural areas. The share of the urban sector to the total population in Karnataka has increased from 31% in 1991 to 34% in 2001 & is projected to reach 38% in 2011, which is higher than the national average of 28%. Urban Pockets are having their own tier of governance. The urban local body(ULB) refers to town or city governed by its own elected council or governing body of such a town or city. The ULBs in Karnataka are categorized based on the population.

Town panchayaths (TP) have a population of 10,000- 20,000 population & are 68 in number.Town Municipal Councils (TMC)with a Population of 20,000 – 50,000 are 94 in numberCity Municipal Councils (CMC) , 44 in number have a population of 50,000 to 3 Lakh populationCity Corporations(CC) with population more than 3Lakhs are eight in number.

Having concluded that intervention in a piece-meal fashion will not ensure the development of urban Karnataka, the State Government has decided that a policy-driven approach is needed to take a holistic view of urban growth, and suggest appropriate steps for the future. This approach, it is hoped, will be better suited to improve the economic productivity of cities and towns, to ensure that their growth is inclusive of all economic sections, to promote environmentally sustainable choices, and to ensure strong local governments that are attentive to the needs of citizens and adequately empowered to respond to them. Many initiatives have been taken by Karnataka Government in this direction.

The rapid pace of urbanization in Karnataka has left a huge 'infrastructural deficit' in all the cities/towns. To address these infrastructural gaps and focus upon all-round development of cities / towns in an attempt to create and expand Municipal Services the state Government has started the 'Mukhya Manthrigala Nagarothana Yojane (MMNY)'. This comprises of two components namely Special package of Rs.100 crores to each of the seven city corporations and special package for small and medium towns.

The scheme includes 7 City Corporations namely Mysore, Mangalore, Davanagere, Hubli – Dharwad, Belgaum, Gulbarga & Bellary for promoting them as faster urban growth centres to reduce pressure on Bangalore city . Keeping this in view, a special package of Rs.100 crore each was

provided to 7 City Corporations and the programme was announced in the CM's budget speech of 2008-09 & as on date Rs. 36200.00 lakhs has been released for the programme. 1370 Civil Works taken up in 7 City Corporations. All the sectors of Urban Infrastructure have been included in the Plan. Focus is on better roads and side drains, water supply, underground drainage, improved modern market places etc.

Under this, the allocation for small and medium towns is made as follows:Every District Head Quarter is provided with special grant of Rs.30 cr., Every Taluka level ULBs along with other non district head quarters CMCs have been provided with special grant of Rs.5 cr.All remaining small ULBs have been provided special grant of Rs.2 cr.

This programme is being implemented in 211 CMCs, TMCs & TPs at a total cost of Rs.1411 crores as detailed below:

The works to improve urban services such as Water Supply UGD, Storm Water Drainage, Roads, Footpaths and Side Drains, Street Lights, Municipal Solid Waste, Slum Upgradation are taken-up for implementation. About 7354 Works – Road and Drainage, Water Supply, Welfare of SC & STs, improving Infrastructure Facility in Urban Slum Areas & Providing Water Connection to Weaker Sections are under progress.

There are competent, technical & skilled staff, both regular and outsourced working in these ULBs, who are governed by a common Cadre & Recruitment Rules -

KarnatakaMunicipalities (Recruitment of Officers and Employees) Rules, 2004.The

draft Karnataka Municipalities (Recruitment of Officers and Employees) Rules, 2010 has been notified & a common Cadre & Recruitment

Rule for all Corporations is being drafted.

Special package for Small and Medium Towns

(Amount Rs. in Crores)

Responsive & Accountable Manpower

District head quarters having CMCs

ULBs in Taluka Head quarters/Non District head quarter CMCs

ULBs in small towns

Total

600

715

96

1411

20

143

48

211

30

5

2

-

Numbers Amount per town Total Amount

The District Urban Development Cell under the Deputy Commissioner (District Collector)at each of the District Headquarters, acts as a nodal centre to co ordinate & monitor the functioning of all the ULBs in the district. To improve the efficacy & ensure smooth functioning, the staff/ officers of all ULBs & the elected representatives are given training at Administrative Training Institute(ATI) & State Institute of Urban Development (SIUD), Mysore.

Karnataka has taken measures to put in a strong institutional frame work through decentralization of power and responsibilities. The Deputy Commissioner at the District Level has been delegated Quasi judicial, review and supervisory powers to ensure better functioning / implementation of schemes in all the ULBs in the district.

The quantum of State Finance commission grants is calculated as a percentage of the Non- Loan Net Own Revenue Receipts. (NLNORR) of the state. As per the recommendations of the second SFC, 8% of the NLNORR is earmarked annually to ULBs. From this amount bulk deduction for Global Protection - which includes, Salaries to Municipalities/corporations, pension contribution, power sector dues, repayment of water board loans & KREDL and DUDC establishment charges, and Global Provision which includes, Project share for water supply and sewerage, arrears of cess, water scarcity fund, common purpose fund, incentivisation fund, rain water harvesting and fund for special circumstances is taken out. The amount remaining which is in the form of Untied Grants is allocated to the ULBs based on an inter-se allocation formula based on certain parameters such as – 1. Population, 2. Area, 3. Illiteracy, 4. Road Length, 5. Normative gap of O & M. This amount is utilized by ULBs for infrastructural development.

Decentralization of Decision Making and Administration

Devolution of Funds from State Government to ULBs (SFC)

(Amount Rs. in Crores)

Optimum Resource Mobilization

Innovative Mode of Financing for ULBs

:

The current problems in property taxation are insufficient coverage ( no. of buildings in tax net, low rate of filing the property tax returns, limited compulsory assessment of buildings), low rate of taxation ,high accumulation of arrears, non levy of penalty for not filing the return. Thus most of the problems pertain to administration of property tax, and it is expected that GIS based property taxation introduced will enable tracking of properties from taxation perspective. Property taxation has been accepted as the primary source of tax revenue for the ULB. To improve the property tax administration, a GIS based property taxation system AASTHI is being implemented. Use of Geographic Information System is accepted all over the world as de-facto most efficient & scientific way of dealing with property based works and taxation. GIS based property taxation is expected to provide fast reliable information on properties w.r.t tax payments, defaults etc. Under the reform, property surveys have been undertaken in all 213 ULBs. Out of estimated 35 lakhs properties, physical survey of 26.75 lakhs properties has been completed. More than 6 lakhs unassessed properties have been identified during the survey & in each city 15-60% of unassessed properties have been brought on record.The concept of user charges has been introduced in 50 ULBs where the Self Help Groups are involved in door to door waste collection.

The state Government has taken several initiatives in order to create an enabling environment for ULB borrowing so that they are able to attract capital from the Public & Private Sector.

– Large projects especially Water supply and sewerage sector are being financed through market borrowings. Government also has set up Karnataka Water and Sanitation Pooled Fund Trust through which open market borrowings for financing the projects are made. Rs.300 crore is raised in 2009-10 from the market by securitization of the future SFC devolution of ULBs without Government Guarantee.

Karnataka Water And Sanitation Pooled Fund Trust (KWSPF) - Is a Trust registered under the Indian Trust Act raised Rs.100 crore Tax Free Municipal Bonds under

a Pooled Finance Framework. KWSPF is a Special Purpose Vehicle created for monitoring the Bonds. The Bonds raised does not have guarantee from the Government of

Karnataka.

The funds raised are to be utilized for providing Cauvery Water supply and Under Ground Drainage (UGD) to the 8 erstwhile ULBs in and around

Bangalore. The sources of funding to this project is through GoK Grants, Beneficiary Capital Contribution, Market Borrowings and

other Loans.

Government Supported Market Borrowing

Municipal Bond Issues

Component 2005-06 2006-07 2007-08 2008-09 2009-10

Global level Protection

Global Level Provision

Untied grant

839.88

130.87

189.25

1160.00

839.27

198.25

492.77

1530.29

884.19

142.00

878.18

1904.37

1000.96

220.25

1000.96

2025.27

1035.60

296.07

1088.00

2419.68

The subscription to the Bonds has been predominantly from Commercial Banks. Credit enhancement structure has been framed by ICRA to improve the rating of the Bonds. USAID has given guarantee @50% of the Principal; Bond Service Fund has been set up for Rs.25.50 crore to increase the confidence of the investors; GoK has issued a Commitment letter which enables to intercept SFC devolution to ULBs at source.

Borrowings under the Bonds are at lower rate of interest (5.95%) compared to the Term Loans or any other modes. Through the issue of Bonds, it enables ULBs to access capital markets for long term loans. The Bonds raised have been listed in the Stock Exchange.

Importance has been given to the accounting/ Financial reform that has been implemented in all the 213 urban local bodies in the state. The municipal accounting reforms have enabled the transparent booking of all kind of investments and expenditure in various functions of the ULB. For the first time the assets of ULBs have been identified and accounted for as per standard accounting practices. The budget process has been stream lined and the audit of the financial transactions by Chartered Accountants have created authentic statements on receipts and expenses.

22.75% of the budget is required to be earmarked for the welfare of SCs & STs in all City Corporations, City Municipal Councils/Town Municipal Councils/Town Panchayaths of Karnataka. In this regard, they are required to reserve income from all sources viz., the taxes levied and collected by them under the provision of Karnataka Municipalities Act, 1964, grants released by Government towards the compensation for the loss of income due to abolition of octroi, development grants and other grants. Loan and purposive grants given to ULBs are however excluded. Previously, 18% of the budget was being earmarked for the welfare of SCs & STs. Taking cognizance of the higher percentage of SC & STs, Government has proportionally increased the percentage of allocation from 18% to 22.75% in 2009.The 22.75% budget is required to be utilised exclusively for the benefit of SCs & STs individually or collectively in the proportion of 16.20% & 5.5% respectively on the schemes beneficial to them. Welfare measures include providing houses, sites, toilets, medical facilities, scholarships etc. Every year about 600-700 crore is spent on this.

As an important initiative, the State Government is providing individual household water tap connection and under ground drainage connection free of cost for SC & ST people living in urban

Transparency in Financial & Accounting System

Welfare measures for Urban Poor & SCs/STs

area under the Nirmal Ganga Project.

Community/Citizen Participation

Public Private Participation (PPP) Initiatives:

To make a comprehensive development plan for making the cities slum free, slum household and livelihood survey has been started in all the ULBs of Karnataka. Asha Kiran Mahithi is a Web based Application which allows the data to be available for everyone at a click. About 3400+ slums (both Notified & Non notified) comprising 6 lakh households is surveyed and details are collected and a state database is created ,which will be a knowledge repository relating to urban poverty, slums, housing, construction and other urbanization-related planning.

The State Government has involved various NGOs and Resident Welfare Associations in developmental activities/service delivery mechanisms.

Karnataka Urban Water Sector Improvement Project (KUWASIP): The World Bank assisted Karnataka Urban Water Sector Improvement Project (KUWASIP), is a project for reforms in water and sanitation sector at the state and ULB level and service improvements in water sector.

Priority Investments are planned to increase the bulk supply to the ULBs and the basic work includes reducing leakage from transmission lines by rehabilitation / replacement of pipes, augmenting and extending the transmission lines, feeder mains to the reservoir, replacing pumps and provision of bulk flow meters and critical points on transmission mains. Priority Investment works have been implemented under 8 packages and bulk supply has been improved in three cities, namely Belgaum, Hubli-Dharwad and Gulbarga.

This sub component envisages to demonstrate that 24 hour continuous supply is achievable and to show the benefits - health, technical, operational and commercial it brings. The small areas selected in each city (called Demonstration Zones) represent about 10% of the existing connections. Totally, 5 Demo Zones have been selected

under first phase of KUWASIP viz., two Demo Zones in Belgaum, one Demo Zone each in Gulbarga, Hubli and Dharwad cities.

The works in the five Demonstration Zones are executed by a Private Operator (M/s.Compagnie Generale Des Eaux, Paris, France). Laying of 238 kms of

HDPE distribution mains and providing 25,008 metered house service connections spread over 5 Demo Zones has been completed and

continuous pressured (24x7) water supply has been operationalised in all the five Demo Zones. The Demonstration Projects have

Investments :a. Priority Investments:

b. Demonstration Projects:

entered in to Operation and Management (O&M) Phase, with effect form April 2008.

The achievements under the project were validated by the Advisory Group, Ministry of Urban Development, Government of India in August 2009 and KUIDFC got “National Urban Water Award 2009”, under Public Private Partnership category.

Operator Contract : A performance based management contract and first structured initiative in water sector Single contract between five parties (3 Corporations, KUIDFC, KUWS&DB) Vs Operator

Distinct obligations for all parties Vs the OperatorPerformance based contract with incentives & penaltiesPrivate entity will only provide management expertise; no investment or tariff riskPilot project successfully completed.

Up-scaling of 24X7 water supply to cover entire corporation areas of Belgaum, Gulbarga and Hubli-Dharwad at a project cost of Rs.735 crores on PPP basis is approved by GoK, vide G.O. dated 6.10.2008. Broad investment structure:

Selection of a consultant for preparation of project reports and transaction support is in process.

Government of Karnataka (GoK) has undertaken a massive urban development programme in

Salient Features of the Project :

Up-scaling of 24x7 in the entire cities of Hubli-Dharwad, Belgaum and Gulbarga:

Rs. in crores

PPP Initiative in Coastal Towns of Karnataka

coastal towns through the Karnataka Urban Development Coastal Environmental Management Project (KUDCEMP). Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) is the nodal agency. Water supply improvements and rehabilitation in the towns is one of the priority sectors under this project. The Government of Karnataka is exploring private sector participation (PPP) route to upgrade the water supply services of these towns and provide water supply on a 24X7 basis. In this regard, GoK has sought assistance from India Infrastructure Project Development Fund (IIPDF), Government of India, for assistance in project development and transaction structuring. Further, the Asian Development Bank (ADB) is supporting the Government of India (IIPDF) in mainstreaming PPPs through a Technical Assistance (TA) project and have appointed CRISIL Infrastructure Advisory, a part of CRISIL Risk and Infrastructure Solutions Limited (CRIS) as transaction advisors for this project. The first phase of the transaction advisory involved conducting a rapid assessment study of the water supply systems in the 10 KUDCEMP towns to assess the amenability of providing 24/7 water supply to these towns through an appropriate Public Private Partnership model.

Based on a rapid assessment study by CRISIL, resolutions have been passed by Councils of 4 ULBs Mangalore, Puttur, Udupi & Kundapura, requesting to approach GOI for assistance under IIPDF for providing 24x7 water supply to the said towns on PPP basis Investments anticipated from the private operator for providing last mile connectivity, House service connections, Bulk meters and District metering, etcThe proposal was considered in 5th meeting of the Empowered Institution for IIPDF held on 4.5.2010.

Government of Karnataka, conceived the North Karnataka Urban Sector Investment Programme (NKUSIP) in its bid to boost economic growth in a region that has traditionally lagged behind. 25 towns have been selected for infrastructure provision. The primary objective of the Project is to improve the status of urban infrastructure and attempt towards better service provision, focusing

on environmental sanitation improvement. The specific objectives of the Project are to improve the environmental conditions of the towns/cities in North Karnataka; reduce poverty in low-

income areas through access to basic urban services; and to improve the service delivery capacities of North Karnataka ULBs through institutional development by

undertaking projects on sustainability principles. Performance Based Management Contract (PBMC):

Under the PBMC model, civil works are procured through conventional procurement method and the contractor is responsible for overall

management of the provision of services and the O&M facilities, typically over a 5 to 6 year period.

PPP Initiative under North Karnataka Urban Sector Investment Programme (NKUSIP)

Investment by Private Operator

GOI funding under VGF

State Government funding

ULB contribution

Total

1

2

3

4

5

50%

20%

20%

10%

100%

367.50

147.00

147.00

73.50

735.00

Transparency and Accountability

Use of IT for improved Service Delivery Mechanism

24X7 water supply to Ilkal town proposed to be taken up on PBMC model.Estimated cost : Rs.19.79 crores.

RFQ under preparation.

The reform Enactment of Public Disclosure Law envisages that ULBs should voluntarily declare information about its functioning on a periodic basis to the public; which includes financial and service level performance parameters. The following are steps taken in Karnataka in this regard :

Disclosure of Financial and Audited Statements by ULBs are already done under The Karnataka Local Fund Authorities Fiscal Responsibility Act, 2003. Disclosure of Service Level Information has been made mandatory for local authorities by a notification issued under RTI Act, 2005

Public Grievance Redressal System: For speedy redressal of complaints, a system has been put in place known as public grievances redressal module. Under this, facility is here with public to complain about listed services over phone, via internet (website), or in person. A complaint number is generated and given to the complainant who can then use it to keep track of the complaint over phone, internet etc. If the complaint is not redressed in prescribed time frame, then it gets up graded i.e. goes to a senior official / above the officer of first instance, this up gradation takes place up to the level of controlling authorityULBs in Karnataka were maintaining the Birth and Death information in manual form. Registration was being done manually. The issuance of Birth and Death certificates used to take more time on account of manual searching of entries and writing the certificates. At present the computerization activity is completed and the system is fully operational in 200 ULBs. Total of 52,64,222 Birth & Death records are in electronic format. This has led to:

Easy Birth and Death Registration & Certification Online or offline registration through hospital or registered doctor with an automated computer-generated Registration IDGeneration of Reports of Birth, Death, and Still Born registered and certificatesNational and state registrar office can access local databases of new births and deaths to

analyze population census. Benchmarking is one such tool which enables performance measurement, assist in analyzing trends, impacts of policies, reflect developmental trends; and also provide quantitative and qualitative information The Service Level Benchmarking project has been completed this year. Under this project, six service sectors and one finance sector has been considered comprising of

49 Performance Indicators

Personnel Information System: A Web based application for maintaining details of all ULB employees of Karnataka state. Databse contains employee details related to education, training and service history details etc of an employee. This data is useful for effective utilization of manpower.

Monthly Information collection system provides information of Municipal Revenue, Water Supply, Health, Engineering, Administration and Schemes/Projects. This application generates various statistical & ranking reports for analysis.

Website : 207 ULBs have their own independent website which aids in dissemination of information to public. Website provides for:

Basic information sharing about the city with the citizensActs as a portal for the Government-Citizen Interface.Provides Information on City FinancesDetails of elected staff, details of Municipal staff Sharing of useful forms with the citizenIs a gateway to the web based Public Grievance Redressal, Property Tax Information System, Accounting System & Birth & Death applications., etc.,

In most of the ULBs lands have been acquired / purchased for scientific disposal of municipal waste. At many places processing facilities for municipal waste has already started. Landfill management is being promoted on PPP basis. In small places Vermi-composting technology is being promoted.

Use of modern mechanised equipments is being promoted for better cleaning of cities.The Vehicle Tracking System and use of GIS for monitoring of the movement of containers has been started in Bangalore and HDMC. It aims at improving the efficiency of secondary waste

transportation.

Awareness campaign among citizens about environmental and hygiene issues is being done with special focus on children and youth.

Scientific Management of Municipal Solid Wastes

Urban Development DepartmentGovernment of Karnataka