PROPOSED WATER PPPs OVERVIEW AND TRAINING WORKSHOP: MADHYA PRADESH

26-27 February 2009Bhopal, M.P.

Citywide Models for Delivering Water and Sanitation Services to the Poor: USAID FIRE (D) Approach

Lee E. Baker, Chief of PartyIndo-USAID FIRE (D) Project

OUTLINE OF PRESENTATION

Background Objective of pro-poor WSS delivery models Approach in States of Orissa and Madhya Pradesh Can PPP arrangements work for the poor?

BACKGROUND ON FIRE (D)

Overview

Achievements: Demonstration of how cities access private finance to fund finance

urban infrastructure. Improved governance. Demonstration of delivery of WSS services to the poor. Support establishment of state-level nodal agencies in Madhya

Pradesh and West Bengal. Corporatization model for reform of statewide water utility (Orissa

PHEO). Contribution to design of GoI’s JNNURM.

BACKGROUND ON FIRE (D) cont’d.

Challenges: Failure to get to citywide scale for slum upgradation. Inability to ensure poor are served by citywide water and

sewerage schemes.

OBJECTIVE OF PRO-POOR WSS DELIVERY MODELS

Within context of support to GoO with corporatization of statewide water utility, formulate a citywide slum upgradation strategy for all the slums of Bhubaneswar.

Support GoMP Urban Administration and Development Department (UADD) and recently created M.P. Urban Infrastructure Fund (MPUIF) implement citywide, project-based approach to increased access to WSS services for all citizens.

Test distinct and sustainable citywide models in the States of Orissa and Madhya Pradesh that ensure the provision of affordable and equitable access to water and sanitation for all citizens:

Operationalization of the corporatized state-level water utility (PHEO) will permit improved cost effective water and sanitation services to Bhubaneswar City, including in slum areas.

FIRE (D), in association with Michael and Susan Dell Foundation and local NGO, BISWA, is supporting implementation of a WSS pilot in seven slums in Bhubaneswar.

Comprehensive citywide upgradation strategy for the urban poor, including financing and implementation plans, with a focus on water and sanitation, in Bhubaneswar’s low-income settlements.

Reform support to State Urban Development Department.

BHUBANESWAR MODEL FOR CITYWIDE SLUM UPGRADING - A COMMUNITY-BASED PLANNING APPROACH

BHUBANESWAR MODEL:THE COMMUNITY-BASED PLANNING APPROACH

Understanding the scale and nature of problem: Numbers, spatial dispersion, topography

• 30% slum dwellers in 377 slums, high and low density wards Diversity across and within slums

• Incomes/tenure/availability and access to trunk infrastructure-basic services

One size solution does not fit all Mainstreaming and client making.

Investment decisions informed by spatial analysis-combining slum locations into expanded city networks.

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W A R D - 1

DAMNA

PATIA

GARAKANA

CHANDRASEKHARPUR

Jagannatha Ambatota

Chunukuli

Gadakana Basti

Patia Jalimunda Sahi

Nilapadia Basti

Patia Mangala sahi

Patia Talaupper Bhoisahi

To Howrah

To Nandankanan

To Pathargadia

Ward No. 4 To Khurda

Ward No. 2

To Jaydevvihar

DamanaSquare

Infocity Square

KIITSquare

Infocity

Sai Complex

Trishna GardenTrishna Enclave

Sailashree Vihar

Subhadra Apartment

Kanan Vihar Phase 1

Chandrasekharpur P.S.

Shikhar Chandi Temple

BhubaneswarEye Institute

Trident Academy

Silicon Instituteof Technology

Baidyanatha MishraMemorial Hospital

Central Training &Tool Room Centre

College of Engineering Bhubaneswar

Kalinga Institute of Industrial Technology

Central Institute of Plastice Engineering

&Technology

Shikhar Chandi Cluster 3

ShikharChandi Cluster 2

ShikharChandi Cluster 1

Location of Slums in Ward No.1

Bhubaneswar Municipal Corporation

LEGEND

Road RailwayDrains

Ward Boundary

Slums

River / Waterbody

Important Location

School / College

Place of worship

HospitalPolice Station

Apartment%

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Wå

Slum Name : Area Name :Location Name :

(Chunukuli)

(PATIA)(Trishna Garden)

Index to Wards in BMC Area

W-1

Scale :300 0 300 600 M.

SLUM PROFILE: SIKHARCHANDI CLUSTER 1, WARD 1

PILOT TO INFORM CITYWIDE SLUM UPGRADING STRATEGY

Pilot in settlements (phased approach). Creating menu of options (design and financing to serve the

poorest): Tailoring solutions to affordability (connection, user costs and

credit repayment), complementing with livelihood interventions/changing saving patterns.

Bundling services (water supply and sanitation with livelihood) for comprehensive solutions.

Inclusive planning and implementation.

PPP IN THE PILOT

Poor communities: Planning, contribution through finance and labor.

Public sector: State (policy on waiving connection fees) BMC (implementing agency) PHEO (linkages with city infrastructure).

Private sector: Private micro-finance institution (BISWA) Contracting for civil works Market for SMEs/livelihoods.

Financial/technical support: Dell Foundation, USAID FIRE (D).

DESIGNING THE CITYWIDE SLUM UPGRADING STRATEGY: LEARNING FROM THE PILOT

Networking with trunk infrastructure: Equitable – changing from community/common services to

household solutions Client making (connections/user charges/cost recovery) Transferring O&M costs to households Acknowledging non-notified settlements for services without

provision of legal land tenure. Quick win, emergency planning:

Open defecation free city. Appropriate institutional frameworks:

Urban Poverty Cell Enabling environment (inclusion, simplification of

procedures, decentralization, grievance redressal systems). Convergence and alignment with policies, sectors and schemes:

Filling gaps, complementing resources, concerted impact.

OVERVIEW OF M.P. WSS PROJECT APPROACH

Focus on non-JNNURM class I cities with approved UIDSSMT & IHSDP projects.

Methodology &Approach:

Visit class I cities, including Khandwa, Ratlam, Ujjain, and Dewas and assess UIDSSMT and IHSDP water and sewerage projects, including coverage of slums.

Review DPRs of short-listed projects to assess technical and cost parameters; review to what extent the poor are served by DPR.

Assist the ULB in preparing the project’s financial model and explore funding options.

Work with ULB to evaluate possible funding sources and required credit enhancement structures.

Work with ULB to mobilize identified source of funding. Assist the ULB in preparing tendering and other required

documents and in establishing project management system. Support project implementation.

OVERVIEW OF M.P. WSS PROJECT APPROACH cont’d.

M.P. WSS PROJECT APPROACH cont’d.

Agreed with GoMP UADD and city officials to support Dewas Municipal Corporation with following:

Carry out preliminary techno-financial review of Dewas UIDSSMT Water Project.

Complement MPUSP program, which has recently been expanded to all State’s class I cities, including Dewas.

Provision of strategic support to DMC, in collaboration with the MPUSP support unit, with its ongoing reform agenda.

Review existing and proposed water distribution network to ensure coverage of urban poor including: Develop strategy and master plan for extension of water

supply distribution in selected slums within the city’s core area.

Carry out topographic survey and mapping of core area slums. Prepare layout of water supply network within the core area

slums. Provide cost estimates. Work with DMC, as necessary, to mobilize funds for

execution. Support implementation.

TECHNICAL SUPPORT TO DEWAS MUNICIPAL CORPORATION

CAN PPP ARRANGEMENTS WORK FOR THE POOR?

Is slum upgrading minus housing attractive to private sector?

Is financing gap too big for private sector to bridge? Increasing people’s contribution towards

infrastructure projects. Integrating poor within urban infrastructure development

projects at minimal costs: networking to prevent leakages and improve cost

recovery. Setting and monitoring performance standards for

servicing poor within private sector contracts.