technical assistance consultant’s report · x there is a signified willingness of development...

Technical Assistance Consultant’s Report

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Project Number: P42171-012 April 2011

BANGLADESH: Khulna Water Supply Project (Financed by the Technical Assistance Special Fund)

Prepared by

Pöyry IDP Consult, Inc. For Government of the People’s Republic of Bangladesh Khulna Water Supply and Sewerage Authority (KWASA) (Executing Agency)

FINAL REPORT

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PREPARING THE KHULNA WATER SUPPLY ADB TA 7385 - BAN

Pöyry IDP Consult, Inc.

In association with

HB CONSULTANTS LTD.

APRIL 2011

Asian Development Bank

Khulna Water Supply & Sewerage Authority (KWASA)

MAIN REPORT and APPENDIX 1 - 9

PPTA 7385-BAN: Preparing the Khulna Water Supply Final Report April 2011

i

TABLE OF CONTENTS 1. INTRODUCTION ...................................................................................................................1

1.1. Project Background .................................................................................................................. 1

1.2. Scope and Objectives of the TA ................................................................................................ 2

1.3. Purpose of this Report.............................................................................................................. 2

2. SUMMARY OF OUTPUTS .....................................................................................................3

2.1. Capital Investment Plan............................................................................................................ 3

2.2. Socio Economic Assessments and Impact on Project ................................................................ 4

2.3. Institutional Development Program ......................................................................................... 5

2.4. Operational Support................................................................................................................. 8


ii

LIST OF APPENDIXES

Appendix 1 – Capital Investment Plan Appendix 2 – Contract Procurement Appendix 3 – Subsidiary Loan Agreement Appendix 4 – Sector Assessment Appendix 5 – Social Poverty Assessment Appendix 6 – Business Plan Appendix 7 – Draft Performance Agreement between KWASA and LGD Appendix 8 – Financial Management Assessment Report Appendix 9 – Financial Analysis of KWASA Appendix 10 – Annex A – KWASA Tube Well Reconnaissance and Monitoring Survey Appendix 10 – Annex B Workshops and Technical Meetings Conducted Appendix 10 – Annex C of Existing and Future Network Appendix 10 – Annex D Draft Meter Connection Policy Appendix 10 – Annex E Meter Specification Policy Appendix 10 – Annex F Terms of Reference for KWASA Financial Auditing Appendix 10 – Annex G Grameenphone Contract


1

1. INTRODUCTION

1.1. PROJECT BACKGROUND

Citizens in Khulna have been suffering from limited access to safe and potable water. Only 18% of total 1

million populations in the City have access to piped water supply and the rest resorts to alternative

water sources such as river, pond and shallow tube well etc. Shallow tube well water often contains

significant salinity. Recognising the challenges, the Government of Bangladesh established a separate

and independent Khulna Water Supply and Sewerage Authority (KWASA) in February 2008. KWASA,

which is the third WASA in the country established following the DWASA and CWASA. While the KWASA

was established legally, substantial work was required to develop it into a capable water utility with

proper corporate governance, competent human resources, and effective financial management.

ADB initiated support to the KWASA through SSTA: Supporting the establishment of KWASA (the SSTA),

approved in December 2008. During the SSTA, a unified policy matrix was developed as the road map

for reform and development partner’s support based on which Japan International Cooperation Agency

(JICA) is currently funding a feasibility study in KWASA looking at all aspects of the investment. It is

principally agreed that JICA will fund infrastructure from raw water intake to water treatment plant

outlet and ADB will fund the investment in distribution, storage.

Technical assistance is now being carried out to KWASA through ADB TA 7385 BAN in order to develop

KWASA institutional capacity and project proposal for future investment.

The Consultants are Pöyry IDP Consult, Inc. as the lead project team in association with HB Consultants

Ltd. and two other Bangladeshi firms, BETS Consulting Services and DPC Group, as sub consultants.

Mr Jaglul Haider, KWASA Deputy Managing Director (DMD) for Engineering is the project liaison officer

serving as the direct link between KWASA and the consultants’ team.

Oversight of the TA project will be ensured through a Project Steering Committee. The committee,

based in LGD of MLGRD&C has already been established. The purpose of the committee is to ensure

progress is in line with the Terms of Reference (TOR) and KWASA requirements and that the deliverables

are met in accordance with the work schedule.


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1.2. SCOPE AND OBJECTIVES OF THE TA

There are two principle objectives of the TA. The first is to focus on establishment of corporate

management systems and developing the capacities of KWASA staff to improve operational efficiency

and to prepare it in meeting the demand for increased and expanded water services, the second is to

support the development of the ADB project proposal and related documents, some activities fall under

both components e.g. preparation of the business plan is directly related to institutional as well as

project proposal scopes. The principal outputs achieved under the TA are summarized below and

provided in more detail in section 2.

- a 5 year Business Plan and Institutional Strengthening Program comprising Mission

computerized accounting and Vision for KWASA, a capital work plan, financial development plan

and human resource/organizational development plan

- a project proposal for ADB financing that specifies the capital investment requirements, outline

design concepts, costing and procurement criteria and mechanisms for the ADB component of

the infrastructure investment; TOR for specialist consultants; social development

considerations; and Performance agreement between KWASA and LGED;

Operational support to KWASA in areas of priority need identified by them – these included support

with tender document preparation; arranging consultants to implement a billing system, hiring of

auditors, introduction of the computerized accounting system; GIS mapping of network assets; general

reconnaissance of all KWASA production tube wells and detailed monitoring and analysis of production

well conditions.

1.3. PURPOSE OF THIS REPORT

The purpose of the report is to summarize the activities carried out throughout the course of the TA and

more importantly to organise and present the results of the work carried out in a format suitable for

collation within ADB project reporting framework/s.


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2. SUMMARY OF OUTPUTS

2.1. Capital Investment Plan A number of investments are being planned for improvement of water supply in Khulna in the

immediate and near future. The features of the immediate planned investments with the Government

of Bangladesh (GOB) funding are linked to the development of Water Supply System in Khulna City,

which include construction of new pipeline, replacement of pipeline, construction of new production

wells, construction of new SWTP, rehabilitation of existing SWTP, service connections with water meter

and expansion of water supply network for distribution of water from Phultala Source.

The most significant part however of KWASA investment plan is a joint initiative between JICA and ADB

for the implementation of new surface water treatment facilities (110 Mld) and the complete

replacement of the clean water distribution network (approximately 600 km of water mains).

A feasibility study report was undertaken for the full scope of work by JICA consultants. The TA team

reviewed the initial design concepts from source to tap and then prepared more detailed design and

costing for the ADB component proposed by the JICA team in their Feasibility Study Report - November

2010 and included additional investment requirements which were not previously discussed.

The total value of investments proposed under this initiative is US$ 365m. JICA has committed to

developing new surface water source with intake structures, raw water transmission, impounding

reservoir and surface water treatment plant facilities. ADB is planning to invest in developing the clean

water transmission, distribution reservoirs, overhead tanks and pipeline distribution network

improvement for Khulna. In addition, ADB support is also envisaged for capacity building and technical

assistance to KWASA for the implementation of the proposed project and assistance is also planned for

institutional capacity building of KWASA with provisions for better office facilities, equipment, vehicles

and other sundry activities.

The timeline for implementation is loan agreement in early 2011 and commissioning of all facilities by

July 2016. Engineering design consultants will be hired by KWASA (managed by the KWASA Project

Management Unit – PMU) to undertake detailed design of all infrastructure and project safeguards

compliance.


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Full details of the ADB component of KWASA capital investment plan is shown in Appendix 1 – Capital

Investment Plan.

Associated Appendices include Appendix 2 – Contract Procurement; Appendix 3 – Subsidiary Loan

Agreement; and Appendix 4 – Sector Assessment;

2.2. Socio Economic Assessments and Impact on Project

In addition to the engineering aspects of the project considerable amount of time has been put into the

necessary assessment of socio-economic considerations.

It is a fact that very significant portions (up to 40%) of the potential new customers of KWASA are

classified economically as being in the low income bracket. The production assumptions include uptake

of water from this sector of the community so it is vitally important that the conditions (cost and access)

under which people will wish to have water supply are understood and planned for by KWASA.

ADB preference, where ever possible is for customers to have individual household connections, and

cost estimates reflect this aspiration. They also recognize that individual connections are not always

practical (even if provided through grant or very high subsidy conditions) due to environmental factors

at the household level.

As part of the TA work detailed socio economic analysis has been undertaken and the output from this

been included in asset costing and planning for capacity building within KWASA and low income

communities.

A detailed SPA report has been prepared the key findings of which are that:

There is a demand from low income communities subject to cost of connection of Tk

1,000 maximum and monthly charges of Tk 100 maximum;

The preference for water sources is based on adequacy, affordability, accessibility and

availability of water;

The project offers a wide range of benefits which will contribute to poverty reduction;


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There are significant positive gender impacts as a result of the project with no significant

negative impacts foreseen;

There is a signified willingness of development partners to participate in the process of

connection the low income communities.

The SPA is included in Appendix 5, which itself has a number of Annexes referencing poverty reduction,

gender action planning and community action planning and capacity building.

2.3. Institutional Development Program

2.3.1. Business Plan

The key output in relation to Institutional Development is the 5 year business plan. The business plan

was prepared jointly with KWASA starting from identifying their business objectives, matching these

with capital investment requirements to meet growth forecasts and achieve performance objectives

related to service coverage, continuity and quality.

The plan takes into account all aspects of the business operation across the plan period:

KWASA Mission and Vision;

Business Objectives and Performance Criteria;

Capital investment;

Operational issues – forecasts of production, sales and expenditures;

Financial requirements – tariff levels; financing terms;

Organizational Development;

The business plan is included in full in Appendix 6. Associated Appendix includes 7 - Draft Performance Agreement between KWASA and LGD; Whilst the key focus of the TA is the ADB component of the proposed investment in KWASA the inter-relationship with the JICA component of the investment is essential and is dealt with throughout the report.


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2.3.2. Financial Management Performance & Strengthening One of the key components of the work carried out by the TA team is the Financial Management

Assessment of KWASA. This covers both financial management performance and financial strengthening

and outlines the strategy for the capacity building of KWASA financial management capability.

The detailed financial management assessment report is included in Appendix 8 this will serve as the

starting point for the Capacity Building consultants to be employed under the bridging TA and the loan

project.

Fundamental to the financial management assessment is the financial analysis of KWASA. This is fully

detailed in Appendix 9. The analysis looks first at past and current performance and highlights the

limited level of detailed information currently available to KWASA (which will be addressed through the

Financial Management Strengthening program); secondly it considers future financial performance in

light of the proposed investment by JICA, ADB and GoB detailing the base case assumptions that have

gone into the financial model as well as 2 sensitivity scenarios; the analysis also includes a summary of

risks around the forecast and the safeguard actions that need to be put in place.

2.3.3. Capacity Building Support to KWASA

ADB has been providing support institutional and operational support to KWASA for a number of years

now through the SSTA 7283 BAN, TA7385 BAN – Preparing the Khulna Water Supply (which comprises

the Institutional, Operational and Project Preparation Support reported on here; the Customer Census

Survey carried out in 2010; Phultala Groundwater Assessment survey; and the Khulna Aquifer Modelling

survey.

ADB wish to continue supporting the operationalization and management of KWASA in advance of and

during the project implementation such that KWASA is functioning effectively and efficiently as the

investment is realized. KWASA will be a professionally managed utility tasked with improving services

through operations and infrastructure investment.

There are two sets of capacity Building support planned. The first will be an Interim Capacity Building TA

Project, with start date as soon as the loan becomes effective (anticipated by May 2011). The second

will be a three year program funded by KWASA out of the loan itself.


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The TA program is designed to ensure the ongoing capacity building of KWASA in the interim period

between loan effectiveness and appointment of long term institutional capacity building consultants

under the loan agreement. It will focus on meter connection implementation, financial and accounting

management policies and process implementation, Information technology systems strategy and

planning, support to business plan implementation, Communications and public awareness and

Engineering planning support to develop KWASA in advance of the appointment of engineering

consultants for the project implementation.

Capacity Building support provided under the ADB loan will continue on from the initiatives in the TA

program and will widen its view to cover broader institutional issues focus to improve the corporate

management of KWASA; this will focus on a number of issues, including:

KWASA revenue management - this will be overhauled during the early years of the business

plan period. A key aim is for all supplies to be metered and for customers to pay on a volumetric

basis for water received;

Implementation of a connection metering program with the aim of having all existing

connections metered by FY 2017

Implementation of business management systems;

Establishment of linkages and connection implementation mechanisms for low income

customers to ensure the smooth uptake of piped water facilities when they become available;

KWASA Human Resources management – policy, processes, and organisational change

implementation;

Terms of Reference for the TA and Loan funded Capacity Building have been prepared and submitted to

ADB under separate cover..


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2.4. Operational Support

Operational support has been provided to KWASA during TA7385 from August to December 2010 and

will continue to completion of the project period in January 2011.

The TA team responded to the expressed needs of KWASA, where resources permitted, in order to

provide best value and support.

Areas of activity are listed and discussed below:

2.4.1. Tender and Contract Document Preparation

Prior to the commencement of the TA project in August 2010, a GoB funded project was approved and

funds allocated. The project included for the installation of 13 Deep Tube Wells; transmission and

distribution network; rehabilitation and extension of a SWTP to 6.75 Mld; The TA team were asked to

provide support in order to operationalize the project as quickly as possible – support provided was:

Review of tender and contract documents for engineering consultants;

Preparation of standard specifications, tendering and contract documentation for Deep Tube

Well construction;

Preparation of Materials Procurement specification, tendering and contract documentation;

Subsequent to issue of tenders the TA team were also involved in the evaluation of tenders for the deep

tube well implementation contract;

Documentation for Production Tube Well Installation and documentation for Materials Procurement has

been submitted separately to ADB under separate cover.

2.4.2. Tube Well Reconnaissance Survey and Condition Monitoring of Production Tube Wells

An extensive survey of all wells was carried out to ascertain the condition and efficiency of water

abstraction.


9

Following on from the initial reconnaissance a detailed survey of all production wells was undertaken

and an estimate made of the cost to regenerate and/or rehabilitate the wells. The cost is included in the

Capital Investment Plan.

The survey report is included in Appendix 10 – Annex A – KWASA Tube Well Reconnaissance and

Monitoring Survey.

The survey was organised by the TA team but KWASA staff were involved in the reconnaissance survey

were responsible for undertaking the monitoring and recording of results under the supervision of the

Water Engineering Advisor – Pumps.

2.4.3. Workshops

A number of workshops and technical meetings were arranged throughout the duration of the project;

they covered:

A Workshop was organized by TA Team with full support and cooperation of KWASA management on 22

Feb 11 in Hotel Castle Salam. Honorable Mayor and Councillors of KCC, stake holders, NGO

representatives, local elites and representatives of slum people participated in the workshop. The key

issues discussed in workshop are:

- KWASA Vision, Mission, Objectives;

- Water Resource and Ground Water Potential;

- ADB Capital Investment Plan;

- Key Performance Indicators;

- Revenue Improvement Action Plan.

The participants shows their great satisfaction with the planned activities to be carried out by ADB/GOB

co-financing in order to improve water production and supply system in Khulna City.


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Accounting Practice;

Two separate workshops on Accounts Keeping were conducted in 23 October 2010 and

13 November 2010. Topics of the first workshop included: Functions and responsibility

of the KWASA Accountant, Existing and Proposed KWASA Books of Accounts, and

Journal Preparation. Additional topics covered in the second workshop included:

Conversion of Single Entry System into Double Entry System, Bank Reconciliation

Statement, and Journal Preparation. Participants of the workshops included the Finance

and Accounts Section officers and staff members of KWASA.

Operational issues – Demand forecasting; Organization structure;

Output from the discussions has been included in the production and demand modeling

within the financial model preparation, and in the organization structure proposals put

forward in the business plan;

KWASA Mission, Vision, Values and Objectives formulation;

The output from the discussions is included within the business plan document and

objectives have been transposed into the proposed Key Performance Indicators

included in the business plan and the draft performance agreement between KWASA

and LGED,

2.4.4. Technical Training Attached as Appendix 10 – Annex B is a summary of the Technical Trainings conducted for the KWASA

technical staff. The coverage of the workshops included both theoretical classroom training and field

demonstration. The TA Team has been conducting sequentially on selected topics in order to enhance

both the theoretical and practical knowledge of KWASA technical staffs so that they can be quite

capable of operation and maintenance of the existing water supply system and the new system after

investment of ensuing loan.

The TA Team conducted 12-Technical Training Programs; of which 7 programs include only theoretical

classroom discussion, 3 include field demonstration along with classroom discussion, 1 was only field

demonstration on some practical issues related to well and pump operation and the rest 1 program was

outing to Faridpur Pourashava to gather practical knowledge of water works operation and billing


11

activity. All the trainings except training no. 8 & 9 were conducted to the technical staffs mentioned in

the Table 02. Training no. 8 & 9 were conducted exclusively for the pump operators (60+65) of KWASA

in two phases on pumps and wells operation and trouble shooting. Adequate refreshments with tea/

coffee were served during the tea breaks of the training. Good lunch was arranged in the nearby restaurants

as well as the training venue. Training bags have been provided to the trainees. The summary of the training

program conducted by TA Team is shown in the Table 02 below:


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Table 02: Summary of Training Activities Conducted by TA Team

Sl No. Training Topics in Brief Conducted By No. of Trainees Attended Date and Duration Venue 1 Classroom Training

a. Interaction on some relevant MCQ on pumps and water distribution system; b. Introduction and classification of pumps. c. Pumps used in water supply system

Md. Abu Musa Mollah National Consultant (Pumps) &

20 Nos. (Engineers, Supervisors, Mechanic, Pipeline Mistry etc.)

23 October 2010 (09:30 am-03:30 pm)

Conference Hall of Hotel Castle Salam, Royal More, Khulna

d. Water pipeline Installation Technique (Part-01) Md. Zahangir Alam Deputy Team Leader

2 Classroom Training a. Major Component of Pump Unit b. Selection of Appropriate Pumps c. Determination Pump Head and Discharge d. Pump Characteristics Curves

Md. Abu Musa Mollah National Consultant (Pumps)


19 November 2010 (09:30 am-03:30 pm)

Conference Hall of Hotel Castle Salam, Royal Mor, Khulna

e. Water pipeline Installation Technique (Part-02) Md. Zahangir Alam Deputy Team Leader

3 Classroom Training a. Well Fixture b. Static Water Level (SWL) c. Pumping Water Level (PWL) d. Draw Down e. Well Yield f. Specific Capacity


19 Nos. (Engineers, Supervisors, Mechanic, Electricians)

01 December 2010 (09:30 am-03:30 pm)

Conference Room of KWASA HQ Building

Field Demonstration a. SWL & PWL Monitoring b. Determination of Draw Down c. Well Discharge Measurement by Trajectory d. Determination of Specific Capacity of Well e. Dismantling & Assembling of a Multi-stage submersible Pump-unit


Pump House and Office yard for field demonstration


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Sl No. Training Topics in Brief Conducted By No. of Trainees Attended Date and Duration Venue 4 Classroom Training

a. Series Operation of Pumps b. Parallel Operation of Pumps c. Combined Characteristic Curves for Series Operation d Combined Characteristic Curves for Parallel Operation



14 December 2010 (09:30 am-01:15 pm)


5 Classroom Training a. Basic of Electricity b. Electrical Control & Protective Component used in Pumping Plant. c. Measuring Instrument in Pumping Plant. d. Circuit Diagram of Elec. Equipment in Pumping Plant



23 December 2010 (09:30 am-01:15 pm)


6 Classroom Training a. Pump Station b. Piping Gallery c. Measuring instrument d. Identification & Selection of Cable



29 December 2010 (09:30 am-01:15 pm)


Field Demonstration a. Pumps & Piping Gallery b. Measuring instrument and Electrical Component in a pump station

Nearby Pump House

7 Classroom Training a. Installation of Submersible Pump b. Operation b. Maintenance c. Monitoring d. Trouble Shooting e Points to be considered during O & M of Electrical equipment



05-01- 2011 (09:30 am-01:15 pm)

Conference Room of KWASA HQ Building for Classroom Discussion.


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Field Demonstration Visit to nearby Pump House and demonstration of operation and monitoring of pump & well.

Nearby Pump House

8 Classroom Training Technical Details, Operation, Maintenance, Monitoring and Trouble Shooting of Production Well with Submersible Pumping Equipment.


65 Nos. Pump Operators & 4 nos Pump Mechanics (1st Group)

11-01- 2011 (2:30 PM-5:30 PM)

Meeting Room of KWASA Staff Association.

9 Classroom Training Technical Details, Operation Maintenance, Monitoring and Trouble Shooting of Production Well with Submersible Pumping Equipment.


60 Nos. Pump Operators (2nd Group)

12-01- 2011 (9:30 AM-12:30 PM)


10 Classroom Training a. Un-accounted for Water (UFW) b. Non-Revenue Water (NRW) c. Measure to Control Wastage d. Key to Non-Revenue Water e. Leak Detection Methods f. Benefits of Leak detection g. Leak Detection Equipments

Md. Zahangir Alam Deputy Team Leader


20-01- 2011 (9:30 AM-12:30 PM)


b. Continuity Equation c. Bernaullie’s Equation d. Water Hammer e. Cavitations f. Air Locking g. Principle of Water Treatment


11 Visit to Faridpur Paurashava Power Point Presentation on present status of Water

Supply System and billing status of Faridpur Paurashava, presented by Pourashava Authority.

Visit & observe Water Treatment Plant (480m3/h) operation at Old W/W, Jhiltuli

Visit & Observe Water Treatment Plant (480m3/h) operation at Goalchamat.


MD. Abu Musa Mollah National Consultant (Pumps)

Md. Kayemuddin National Consultant (Finance)

46 Engineering and Financial Staffs of KWASA

22-01-2011 (7:30AM to 7:30PM)

Faridpur Pourashava Water Works

12 Field Demonstration Md. Abu Musa Mollah 29 Nos. (Engineers, 26-01-2011 KWASA Office Compound


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Practical Demonstration with hydraulic model (fabricated) to explain the following technical terms: Continuity Equation & Bernaullie’s Equation Head Loss Water Hammer Air Locking

National Consultant (Pumps) Supervisors, Mechanic, Electricians)

(7:30AM to 7:30PM)


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2.4.5. Network Mapping AutoCAD drawings of the existing KWASA network and borehole locations as well as the future

proposed networks have been prepared. The soft copy files will be passed to KWASA for their use in the

future.

Hard copy print outs are included in Appendix 10 - Annex C of Existing and Network and Future network.

2.4.6. Meter Connection Policy

A draft meter connection policy has been prepared to assist KWASA as they prepare to commence the

metering of connections on a large scale. The policy needs to be approved by KWASA Board in advance

of the Interim Capacity Building TA, starting in May 2011. The draft policy is included in Appendix 10 –

Annex D.

In addition to connection policy a meter specification policy has also been prepared to support the

meter connection process. This is included in Appendix 10 – Annex E.

2.4.7. Appointment of Auditors

Since the establishment of KWASA in 2009 the accounts have not been audited. The TA team supported

KWASA in preparing Terms of Reference for suitably qualified and interested audit companies to bid

against. The TOR included for Audit reporting for two Fiscal periods – FY 2008/09 and FY 2009/10; bids

were received in November and an auditor was appointed by letter on 26 December 2010. The starting

date for the audit was set as 22 February 2011 with anticipated completion by mid April 2011.

Copy of the Terms of Reference prepared is included in Appendix 10 – Annex F.

2.4.8. Billing System Implementation

KWASA currently have no billing system in place. The Board of KWASA has requested management to

push ahead with the implementation of a billing system that can be used for both flat rate and

volumetric billing methodologies. KWASA management requested the support of the TA team to identify

and discuss with potential suppliers.


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Discussions were held with two potential suppliers:

An independent software consultant with extensive experience of the LGD billing system who

was proposing to customize the LGD system (free license copy had been passed to KWASA by

LGD) to suit KWASA requirements;

Grameenphone IT – who have submitted a proposal to create a new billing system based on the

requirements of KWASA;

A meeting was held with GP IT; ADB; and KWASA in late November and concepts discussed further. ADB

agreed that, subject to GPOIT submitting a more detailed specification and proposal, ADB would be able

to support the cost of the implementation (US$ 4,500). A more detailed proposal was submitted during

the first week of December and is under consideration of ADB.

The draft agreement prepared between KWASA and GP IT is included in Appendix 10 – Annex G.

2.4.9. Accounting System Re-Introduction

In 2009 a computerized accounting system was introduced to KWASA. The system also includes a

number of support modules for inventory, fixed assets, payroll, HR, etc. Subsequent to becoming

operational a problem occurred with data corruption and the system was abandoned pending additional

support for re-introduction.

The system has been reviewed by an independent IT solutions provider who believes the system is

robust and could be re-introduced relatively simply provided that KWASA staff have sufficient to ensure

the correct operation in the future.

A proposal has been prepared by GP IT to undertake the re-introduction of the software, resolving the

hardware corruption problems and imparting training to KWASA staff. Quotations have also been

solicited from two other companies for the same scope of work - Further discussion is now required

between KWASA and ADB to agree on the preferred way forward with this implementation.

Appendix 1 CAPITAL INVESTMENT PLAN

i

KHULNA WATER SUPPLY AND

SEWERAGE AUTHORITY (KWASA)

CAPITAL INVESTMENT PLAN

2010

PREPARING THE KHULNA WATER SUPPLY

ADB TA 7385 – BAN


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Table of Contents Part A: Capital Investment for Khulna Water Supply Improvement ................................................................. 1

1.1 Introduction ...................................................................................................................................... 1

Part B: Supply Augmentation and Transmission ............................................................................................... 3

2.1 Production Well Collection to Distribution Storage .......................................................................... 3

2.2 Water Transmission .......................................................................................................................... 3

Part C: System Rehabilitation, Strengthening and Expansion ........................................................................... 5

3.1 Distribution Network Expansion ....................................................................................................... 5

3.2 Replacement of Existing lines............................................................................................................ 6

3.3 Metering and Service Connections ................................................................................................... 7

3.4 Installation of Valves and Bulk Meters .............................................................................................. 8

3.5 Provision of Distribution and Overhead Reservoirs .......................................................................... 8

3.5.1 Electro-mechanical Equipment ................................................................................................. 9

3.5.2 Pavement Reinstatement .......................................................................................................... 9

3.5.3 Sundry Improvement Works ................................................................................................... 10

Part D: Materials and Estimation ................................................................................................................ 10

4.1 Selection of Pipe Materials ............................................................................................................. 10

4.1.1 DNI Pipeline Materials ............................................................................................................. 10

4.1.2 Ductile Iron (DI) Pipes .............................................................................................................. 10

4.1.3 Polyethylene (PE) Pipes ........................................................................................................... 11

4.1.4 Unplasticized PVC Pipes .......................................................................................................... 11

4.1.5 Comparative Assessment of Pipe Materials ............................................................................ 11

4.1.6 DNI Pipe Material Recommendation ...................................................................................... 12

4.2 Unit Costing ..................................................................................................................................... 13

4.3 Project Investment .......................................................................................................................... 14

4.3.1 Clean Water Transmission....................................................................................................... 14

4.3.2 Distribution Reservoir and Overhead Tanks ........................................................................... 16

4.3.3 Distribution Network Improvement in Service Zones ............................................................. 16

4.3.4 Infrastructure Development and Supporting Activities .......................................................... 22

4.4 Procurement and Contract Packaging ............................................................................................ 24

4.5 Conclusions and Recommendations ............................................................................................... 25


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List of Tables

Table 1: Overall Project Investment Plan .......................................................................................................... 2

Table 2: Overall Project Financing Plan ............................................................................................................. 2

Table 3: Clean Water Transmission Pipeline ..................................................................................................... 4

Table 4: Distribution Reservoir and Associated OHTs in Five Zones ................................................................. 4

Table 5: Design Pipe Lengths by Pipe Diameter in Zones ................................................................................. 5

Table 6: Existing Pipeline Details ....................................................................................................................... 6

Table 7: Household Service Connections – 2018 -2019 .................................................................................... 7

Table 8: Zonal Population Forecast ................................................................................................................... 8

Table 9: Projected Demand and Storage Requirement .................................................................................... 9

Table 10: Comparison of Pipe Materials ......................................................................................................... 11

Table 11: Project Investment Cost .................................................................................................................. 14

Table 12: Investment for Clean Water Transmission Works .......................................................................... 15

Table 13: Project Investment for Reservoirs and Overhead Tanks ................................................................. 16

Table 14: Project Investment for DNI Works in Zone 1................................................................................... 17





Table 19: Procurement of Goods and Works .................................................................................................. 24

Table 20: Probable List of Contract Packages under the Project .................................................................... 24


1

Capital Investment for Production Increment and Distribution Network

Improvement

Part A: Capital Investment for Khulna Water Supply Improvement

1.1 Introduction

Residents of Khulna city have been suffering long time from limited access to safe potable water. Only 18 %

of over a 1.0 million city population have access to piped water supply and the rest resort to alternative

water sources such as river, pond and hand tube wells etc. Shallow hand tube wells water often contains

significant salinity and the surface water in the adjoining regions is saline for most part of the year. Piped

water supply was so far the responsibility of Khulna City Corporation (KCC), who could not supply adequate

piped water to the city dwellers due to non availability of suitable water source near to the city.

Recognizing the challenges, Government of Bangladesh established a separate and independent Khulna

Water Supply and Sewerage Authority (KWASA) in February 2008 with a view to meet the safe and reliable

water needs of the city people. KWASA is the third such organization in the country following similar

institutions in Dhaka (DWASA) and Chittagong (CWASA). KWASA has been established to provide water

supply and wastewater services for the Khulna City Corporation (KCC) area of about 45.60 sq km with over

1.0 population.

The existing water supply services are quite basic and limited in Khulna. Altogether some 230 kilometres of

pipe network of various materials and age supply water produced from groundwater wells. The quality,

quantity, reliability and accessibility of the present services are quite poor. After the establishment of

KWASA, Government of Bangladesh (GOB) has been actively promoting improvement in the services. In

this bid, support has been provided by JICA and ADB. ADB initiated its support through the SSTA 7223:

Supporting the Establishment of KWASA, which apart from other things went on to develop a roadmap for

the overall development of water supply in Khulna. The Japan International Cooperation Agency (JICA) has

shown strong interest in co-financing the various activities and initiated a feasibility study for the Khulna

Water Supply Project.

A number of investments are being planned for improvement of supply in the immediate and near future.

Apart from the proposed JICA and ADB investments envisaged with a more long term planning objectives

for development of Khulna water supply, some immediate investments have been earmarked by GOB,

which are being finalized for immediate implementation. The features of the immediate planned

investments with GOB funding are linked to the development of Water Supply System in Khulna City, which

include construction of new pipeline, replacement of pipeline, construction of new production wells,

construction of new SWTP, rehabilitation of existing SWTP, service connections with water meter and

expansion of water supply network for distribution of water from Phultala Source.


2

JICA has committed to developing new surface water source with intake structures, raw water

transmission, impounding reservoir and surface water treatment plant facilities. ADB is planning to invest

in developing clean water transmission, distribution reservoirs, overhead tanks and pipeline distribution

network improvement for Khulna. In addition, ADB support is also envisaged for capacity building and

technical assistance to KWASA for the implementation of the proposed project and assistance is also

planned for institutional capacity building of KWASA with provisions for better office facilities, equipment,

vehicles and other sundry activities. The total project investment for the entire Khulna Water Supply

Project including budget from GOB and co-financing from JICA and ADB is summarized in the tables below:

Table 1: Overall Project Investment Plan

Item Amount

(million)

A. Base Costa

1. Civil works and equipment 238.9

2. Consultants 18.2

3. Land acquisition and resettlement 5.9

4. Administration costs 1.6

B. Contingenciesb

1. Physical Contingencies 13.6

2. Price Contingencies 24.3

C. Interest Charges During Implementation c 2.7

D. Taxes and Duties 58.4

Totald 363.5

a In mid-2010 prices.

b Physical contingencies computed at 4.9% for ADB-funded components and 5.0% for JICA-funded

components. Price contingencies computed at -3.7-0.5% for ADB-funded components and 1.8% for

JICA-funded components on foreign exchange costs and 7.2-7.3% for ADB and 4.8% for JICA funded

portion on local currency costs.

c Interest during construction has been computed at 1.0% ADF loan rate during the grace period for ADB

loan, and at 0.01% MIRAI loan rate for JICA loan.

d Figures may not add up due to rounding.

Table 2: Overall Project Financing Plan

Source

Amount

($ million)

Share of

Total (%)

Asian Development Bank 75.0 20.6

Japan International Cooperation Agency 184.0 50.6

Government 104.6 28.8

Total a 363.5 100.0

a Figures may not add up due to rounding.

The following sections of this report describe the proposed ADB support for water supply services

improvement of Khulna and related capacity building activities of KWASA.


3

Part B: Supply Augmentation and Transmission

2.1 Production Well Collection to Distribution Storage

Ground water will continue to account for a significant component of the water supply in Khulna into the

future. The basic design philosophy of the JICA project is that water from the existing DTW’s is collected

and conveyed to the distribution service reservoirs rather than pumped directly into the distribution

network. The practicality of achieving this for all of the existing DTW’s (111 at 71 sites) will be difficult and

expensive given their relatively low and decreasing yield, age / useful life and deteriorating condition and

sparse nature of their locations.

From an operational point of view management and operation of so many small DTW’s is inefficient (in

terms of organisation and operating cost). Currently KWASA are abstracting around 30 Mld from the

aquifer through 31 production wells and 80 mini wells (at 40 sites). The output from all wells is reducing

principally due to aging of the wells – of the 31 production wells in operation, 21 have been regenerated

more than once and their useful life is coming to an end. KWASA also have plans to install 20 new

production wells through two GoB funded projects by the end of FY 2013/14 – the first already approved

for 13 wells, and the second yet to be approved for 7 wells. Therefore, from an operational point of view

and optimization of investment, it is advisable to initiate gradual abandoning of mini-wells and focus on the

regeneration and rehabilitation of production wells to enhance reliability and adequacy of water.

Given this KWASA would require 25 no. DTW’s producing 100 m3/hr for 20 hours a day to abstract the full

sustainable yield. It may also be prudent to retain some standby capacity in the case of the need for well

maintenance so it is suggested that KWASA in the medium term well develop strategy would include a

total of 30 no. 6” production wells producing 100 m3/day. This may further increase over the long term as

present KWASA HTW and private Deep Well users gradually shift to the piped network.

The location of the DTW’s should be such that, on average, within a distance of about 500 -700m from the

nearest storage reservoir. It appears that KWASA have sufficient funds identified to develop the wells

through GoB. Provision for the collector mechanism has been included in the ADB proposal. Accordingly,

based on an average collector pipe distance of 650 metres from the nearest storage reservoir this would

require a total collector length of about 20 km assuming an average pipeline diameter of 200 mm using DI

pipes.

2.2 Water Transmission

The treated clean water from the surface water treatment plant proposed under JICA support needs to be

conveyed to the five distribution reservoirs proposed for each zone. The total pipe length required for the

transmission mains from the SWTP is about 27 kilometres. These pipes vary in size from 1100 mm to 300

mm in diameter. The pipe sizing and their alignment is in accordance with the proposal made under the

JICA supported Feasibility Study for Khulna Water Supply Project. The pipe materials for clean water

transmission shall be DI conforming to ISO 2531, as mentioned below. The various pipe sizes and their

length proposed for clean water transmission is given in the table below.


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Table 3: Clean Water Transmission Pipeline

Diameter (mm) Length (m)

1100 mm 10,900

900 mm 1,500

800 mm 1,900

600 mm 4,400

500 mm 6,300

300 mm 400

Total 25,400

It is to be reiterated that no service connections shall be permitted from the transmission mains, which are

specifically meant for feeding the five distribution reservoirs.

Another type of pipe not clearly seen accounted for in the JICA estimates were the pump mains from the

distribution reservoir to the overhead tanks. The pipe length of the pumping mains from each of the five

distribution reservoirs to the eleven overhead tanks in their respective distribution zones has been

estimated. The total length of such pumping mains is estimated as 35 kilometres with an average diameter

of 250 mm using DI pipes, the details of the same is given in the table below.

Table 4: Distribution Reservoir and Associated OHTs in Five Zones

Location of Ground Reservoir Location of Connected OHT Length of Transmission

main (m)

Zone-1 : Deana Westpara UGR Rab Sarani 5280

Deana West Para 240

Zone-2 : W-16 office UGR

W-16 office OHT 240

Mujgunni OHT 1200

Sonadanga Moh-S-OHT 2400

Zone-3 : Sonadanga Moha Sarak UGR Andir Pukur OHT 3360

W-31 office OHT (South) 7920

Zone-4 : W-7 office UGR W-7 office OHT 240

Khalispur Charar Hat ghat -OHT 4080

Zone-5 : Khalispur Carerhat ghat UGR Ferry Ghat Power House OHT 3600

DPHE Pupsha Ghat OHT 6240


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Part C: System Rehabilitation, Strengthening and Expansion

3.1 Distribution Network Expansion

JICA has proposed for the division of the entire service area under KWASA into five service zones. Each of

the five service zones are further divided into several sub-zones in consideration of the proposed eleven

overhead tanks located at various vantage points. Working under the principle that any distribution zone

shall only be supplied through a distribution reservoir / overhead tanks, a total of eleven sub-zones have

been identified.

Totally new distribution networks for each of the eleven sub-zones proposed by the JICA Report has been

verified and adopted for the network development and expansion in each of the five supply zones. Each of

the proposed distribution networks consist of pipelines from the overhead tank to all the major areas along

existing road networks. These are the primary and secondary distribution mains down to a pipe size of 150

mm. Service and connection mains of sizes below 150 mm diameter have not been considered at this

stage, which can be done at a later stage when detailed design and implementation works are being

conducted. However, an assessment of the pipelines below the size 150 mm has been made, i.e. 100 mm,

75 mm and 50 mm uPVC pipes have been estimated for each zone in consideration of the service area,

population to be served and other related parameters. The estimation of the secondary and tertiary

service mains have been based on the settlement pattern and area under consideration in each zone.

The distribution network has been designed using discrete pipe sizes ranging from 150 mm to 400 mm. It

has been proposed that DI pipes be utilized for pipe sizes of diameter 250 mm and above, while uPVC pipes

are proposed for distribution supply pipelines of sizes 200 and below. The design length of the major pipes

has been increased by 5 % in the cost estimates to account for any unforeseen scenarios.

The distribution network cost proposals include procurement and installation of various lengths of

distribution pipelines ranging in diameter from 400 – 150 mm. These are DI and PVC type of pipes.

Distribution and service pipes of diameters 100mm, 75mm and 50mm have been proposed also in each

zone, which are of uPVC material. The actual pipe lengths by diameter in the various zones, as proposed for

project costings are summarized the table below:

Table 5: Design Pipe Lengths by Pipe Diameter in Zones

Diameter

(mm)

Pipe Lengths in Service Zones (m) Total Length

(m) Zone 1 Zone 2 Zone 3 Zone 4 Zone 5

400 0 1,500 1,200 0 0 2,700

350 1,300 1,600 3,500 2,500 900 9,800

300 3,700 2,900 1,200 1,600 1,300 10,700

250 13,800 21,800 9,900 9,500 11,700 66,700

200 15,700 27,700 20,000 10,700 6,400 80,500

150 20,700 32,700 24,500 19,200 13,400 110,500

100 25,000 25,000 25,000 15,000 15,000 105,000

75 25,000 25,000 25,000 15,000 15,000 105,000

50 15,000 15,000 15,000 10,000 10,000 65,000

120,200 153,200 125,300 83,500 73,700 555,900


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For improvement in the water supply services it is proposed to gradually carry out the following:

• As proposed, the surface water transmission and feeder mains shall feed directly in to the

distribution / service reservoirs.

• All existing and proposed production wells under KWASA should also connect into proposed

reservoirs or overhead tanks in their respective zones. The production wells should not inject

water into the distribution network directly to the extent it is technically viable.

• It is expected that the designated zone or sub-zones within the area shall be fed by a single

dedicated supply main coming out of the reservoir / overhead tank with bulk flow meter for

monitoring and management.

• No connections, private, commercial or institutional, shall be permitted directly from supply mains.

Connections will only be permitted from distribution pipelines only in zones or their sub-zones.

3.2 Replacement of Existing lines

There are about 230 kilometres of existing pipe lines, which comprise of asbestos, MS, PVC among others.

A breakdown of the existing pipelines under KWASA is given in the table below:

Table 6: Existing Pipeline Details

S.N. Diameter (mm) Approximate Length (km) Material

1. 75 2.62 PVC

2. 100 110 PVC

3. 150 66 PVC

4. 200 22 (MS, AC 6 km)

5. 250 10.55 MS, AC

6. 300 16.30 MS, AC

The old large pipes are envisaged to be in a poor state and unusable, therefore needs to be replaced.

However, some of the uPVC pipelines installed in the last decade or so may be in a form to be used again.

This can only be ascertained after a detailed investigation and assessment. uPVC pipes in the diameter

range 150 mm – 100 mm may be considered for reuse, if found in a good and usable state. But, smaller

diameter service pipelines are likely to be disturbed and damaged during the implementation process of

the ensuing loan and, hence, will have to be largely replaced. In conclusion the salvage value of the existing

pipelines is very small.


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3.3 Metering and Service Connections

Metering of service connections is a priority for KWASA and has been accorded considerable importance in

the ensuing ADB loan. The metering and connection programs include metering of existing connections –

legal and illegal – and installation of service connections in distribution areas where supplies are gradually

enhanced. The Project also envisages setting up District Metering Areas (DMA) within the service zones to

monitor production, supply and consumption of water supplied and monitor UFW and NRW. Major

investment would be in the installation of household service connections. It is assumed that with gradual

increase in production and improved distribution system, the number of household service connections

will gradually increase. Each household connection shall comprise of saddle tap, fittings, 6 m length of 20

mm uPVC pipe, 20 mm household cold water meter and other related materials. It has been estimated that

the unit cost of a household service connection is estimated at about $ 135. For project costing purposes,

the number of households assumed availing services from KWASA piped water supply at the end of the

fiscal year 2018 in each of the five zones has been used. However, field observations have indicated that

the on the average 2.82 households would be connected through a service connections. Accordingly, some

54,300 service connections would be required to distribute water to the end-user through the KWASA

piped network. However, considering higher number of connections with better services, uncertainty

involved in households to service connection ratios and need for replacement of malfunctioning service

connections; a 20 percent contingency to the number of connections has been proposed. Accordingly, the

details of the service connections in service zone are given in the table below:

Table 7: Household Service Connections – 2018 -2019

Service Connection Requirement in 2018

- 2019 Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Total

House / Service Connections 9,535 16,700 15,507 14,291 9,127 65,160

Additional Meters for KWASA Inventory 2,500 4,000 1,550 1,430 910 10,390

The primary criterion for the establishment of a DMA / DMZ is that the distribution network for the

demarcated area can be easily isolated by installation of control valves and other such mechanisms. Bulk

meters will be installed to monitor the total volume of water supplied to the demarcated area. It shall be

mandatory that all the connections within the area are properly metered. At the moment it is difficult to

state the number of DMA / DMZs that can be established, but provision has been earmarked in the project

estimates for individual zones for the provision of house connections, additional household meters, control

valves, bulk meters, chambers, etc. which is required for establishing a DMA/DMZ. Detailed layout of

individual DMA/DMZs and the location of control valves and bulk meters shall be done during the detailed

design phase. For the present purposes a DMA is expected to have about 2500 house connections. Initial

assessments performed indicate that about 22 DMAs can be developed with 3 DMAs in Zone 1; 6 in Zone 2;

5 in Zone 3; 5 in Zone 4 and 3 in Zone 5.

For KWASA to develop in to a robust, vibrant and profitable water utility, it must focus on metering of all

service connections including connections provided to low income communities. In this regard, use and

stocking of a standard household cold water meter would be essential in line with an approved KWASA

connection policy. To make this effort sustainable, the staff should be well trained in metering, calibration

and repair of meters. Thus, a small meter calibration and testing workshop with repair facilities should be

developed within KWASA well supported by spare parts.


8

3.4 Installation of Valves and Bulk Meters

The project cost estimation also account for installation of valves and bulk meters at vantage points in the

distribution system, inlet and outlets of reservoirs and OHTs and demarcated DMAs in the system. A

number of control valves including air release valves have been provided for in the estimates for individual

service zones. RCC chambers with easy access and manhole covers have also been provided for to protect

major valves and bulk meters from vandalism and weather elements. Units costs of the fittings, meters,

and valves have been developed after exhaustive assessment of available rates and installation charges

and cost of valve and meter chambers also formulated in a similar manner. Zone wise estimation of these

valves and meters and RCC chambers housing them has been performed.

3.5 Provision of Distribution and Overhead Reservoirs

The total service area under KWASA includes all the 31 wards of KCC. In each zone apart from a robust and

rehabilitated pipe distribution network there would be a distribution reservoir and overhead tanks. It has

been deemed necessary that virtually a new distribution network be developed, which can be easily

monitored for efficient operation and maintenance. Five distribution zones have been recommended for

further planning, design and implementation, wherein the railway and trunk road act as the boundary and

the western area is divided into 3 zones and the eastern area is divided into 2 zones. The zone population,

storage and balancing capacities proposed for service area is given in the table below:

Table 8: Zonal Population Forecast

Wards covered Pop. 2010 Pop. 2020 Pop. 2030 Distribution

Reservoir

Capacity –

Based on

Demand

Distribution

Reservoir

Capacity -

Adopted

OHT

Proposed

Zone 1 1,2,3,4,5,6 143101 174439 212639 8000 8,000 300 – 2 Units

Zone 2 9,14,16,17,18,19,25 250643 305533 372442 14,000 9,000 300 – 2 Units

500 – 1 Unit

Zone 3 24,26,27,28,30,31 232715 283679 345804 13,000 18,000 500 – 2 Units

Zone 4 7,8,10,11,12,13,15 214478 261447 318703 10,000 5,000 500 – 2 Units

Zone 5 20,21,22,23,29 136969 166965 203530 8,000 15,000 300 – 2 Units

977906 1192063 1453118 53,000 55,000

The distribution zones adopted by the JICA Feasibility Study are generally pragmatic from an operational

point of view. Their location and sizes are such that a balanced distribution zones can be developed and

operated, except for the case of Zone 3 and Zone 5 where they are located in slightly away location. This


9

could be due to the non-availability of adequate and proper land to locate such large structures within the

centre of the city. The approach of having individual distribution reservoirs with 12 hours retention of the

daily demand and overhead tanks to streamline water distribution is valid.

Using the projected zonal demand scenario, the individual zonal storage requirement has been developed

for 2020 and 2030. However, in consideration of the KWASA objective of developing the distribution

scenario for 2030, the projected storage requirement for 2030 at 25 % storage capacity has been

recommended for adoption. This storage requirement is very similar to the JICA Study Team’s

recommended total storage capacity of 55000 cu.m. The projected demand and storage estimated carried

out under the present assessment is given in the table below:

Table 9: Projected Demand and Storage Requirement

Average Daily Water Demand (m3/day)

Storage Requirement “m3”

(25%)

2009 2010 2015 2020 2025 2030 2020 A.D. 2030 A.D.

Zone 1 4464 5277 9072 16033 24818 29891 4000 7000

zone 2 7818 9245 15888 28079 43469 52354 7000 13000

Zone 3 7259 8580 14753 26073 40360 48607 7000 12000

Zone 4 6691 7907 13597 24031 37197 44797 6000 11000

Zone 5 4273 5051 8683 15346 23757 28610 4000 7000

28000 50000

3.5.1 Electro-mechanical Equipment

A detailed assessment of the provisions made in the electro-mechanical estimates of JICA for the proposed

SWTP, pumping stations at reservoirs, etc. was made by the PPTA Team. The PPTA team based on the JICA

Report assessment made an independent estimate of the various components, its capacity, required

accessories and other equipment. Unit rates for the various equipment identified, their transportation and

installation charges were also developed and adopted to develop the costs for the mechanical and

electrical equipment required at the five distribution reservoirs and six of the overhead tanks – for the

remaining five overhead tanks the costing was done jointly for ground reservoirs and OHTs considering the

proximity of their location on the same premises.

3.5.2 Pavement Reinstatement

With nearly 600 kilometres of pipe being laid within the city precincts, the existing paved and also unpaved

road surfaces are going to be disturbed during the installation of pipes, fittings, valves, etc. The project has


10

made provisions to reinstate the paved and unpaved road surfaces to its original position once the

activities have been completed. In this regard, it has been assumed that of the total pipe length nearly 60

% of the length would laid on paved roads while 40 % length would be unpaved or gravel road surface.

Reinstatement works involve of base course, compaction, grouting, seal coating etc., as per the standards

and requirements of KCC. Costing has been done on the reinstatement area estimated based on the pipe

trench length and width.

3.5.3 Sundry Improvement Works

Other sundry activities would involve setting up of a small water quality monitoring unit at each of the

distribution reservoirs, some required tools and equipment, leak detection equipment, etc. These have

also been included in the zone wise project cost to enhance the overall performance of the project and the

investments made.

Part D: Materials and Estimation

4.1 Selection of Pipe Materials

4.1.1 DNI Pipeline Materials

For pipes used in water supply conveyance and distribution, a number of materials exist including Ductile

Iron (DI), Galvanized Iron (GI), PVC, Polyethylene (PE) and Glass Reinforced Plastic (GRP), among many

others. Several studies in the past have made specific recommendations based on the pipe size to be used

and the soil conditions and experience of local craftsman in laying and joining distribution network pipes.

Other considerations like cost, ease in installation and better performance over a long period of time also

needs to be assessed.

For the current study, it seemed prudent that a brief comparative assessment of major pipe materials for

distribution network pipes be considered before recommending particular materials for subsequent use

and implementation. The following comparison is for the most appropriate materials to be considered for

the Distribution Network Improvement (DNI), i.e., DI, PE, GI, and uPVC. These materials are compared for

their relative ease in transportation, installation and laying, material and laying costs, availability of fittings,

internal and external coating and operation and long term maintenance.

4.1.2 Ductile Iron (DI) Pipes

Ductile Iron pipes have been extensively used for water works throughout the world because of the

flexibility and ease in installation, pressure ratings, longevity and resistance to different soil conditions. The

most common type of DI pipes are the K9 class conforming to ISO 2531 (1998) and EN 545 (2006). The

principal properties of the ductile iron is a yield stress of over 300 MPa, tensile strength of over 420 MPa,

elongation of over 10%, and Brinell hardness less than 230. The impact strength of DI pipes is exceptional

and allows a variation in pipe alignment up to 4%; depending upon pipe diameter. Normally, DI pipes are

available for diameters ranging from 80 mm to 1200 mm. Normal allowable operating pressure for K9 class

pipes range from 29.4 to 58.8 bars. The internal surface of DI pipes is coated with cement mortar lining,

which is applied by centrifugal process. Similarly, the external protective coating of DI pipes is zinc plus

bitumen. This provides a high degree of protection against most soil conditions. Other features of DI pipes

shall be similar to the earlier description made under BDS pipe material options.


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4.1.3 Polyethylene (PE) Pipes

Polyethylene pipes are extensively used for bulk water supply especially in Europe considering their

flexibility and ease in laying quickly. PE pipes are designed, manufactured and supplied under a BS EN ISO

9001:2000 accredited Quality Management System. Two most common types of PE pipes used are PE80

and PE 100.

PE80 – This is the term used to denote the polyethylene material which has been widely used for gas,

water and industrial applications for many years. The terms MDPE and HDPE were commonly used to

describe this material.

PE100 – This is a term used to denote high performance polyethylene. PE100 is a higher performance

material than PE80 and demonstrates exceptional resistance to rapid crack propagation as well as to long-

term stress cracking. Moreover, the higher strength of PE100 permits thinner pipe walls than PE80 for the

same operating pressure. PE100 uses less polymer and provides for a larger bore and increased flow

capacity for a given nominal pipe size. This can result in significant cost savings at certain sizes and pressure

ratings.

PE pipes are manufactured from a diameter of 20 mm to 1000mm normally. However, larger diameter PE

pipes can also be manufactured subject to scale or magnitude of order. Allowable working pressure for

PE80 pipes varies from 12.5 to 8 bars, whereas for PE100 it varies from 16, 10, 8 and 6 bars for SDRs (ratio

of outer diameter to average wall thickness) 11, 17, 21 and 26.

4.1.4 Unplasticized PVC Pipes

More recently uPVC pipes are being used in urban water systems, as they are available in large range of

pipe diameters and pressure classes. There are a few manufacturers of uPVC pipes in the country and also

imported from third countries. They are available in pipe diameters ranging from 20 mm to over 300 mm

and in pressure classes ranging from 2.45 – 14.7 bars.

4.1.5 Comparative Assessment of Pipe Materials

The four pipe materials discussed have their own distinct advantages and disadvantages. However, for the

present purposes the pipe materials have been comparatively assessed in terms of the following factors –

transportation; laying and joining; strength, operation and maintenance (including availability of spare

parts) and initial investment costs. The comparative table below summarizes the advantages and

disadvantages of the four pipe materials:

Table 10: Comparison of Pipe Materials

Pipe Material Advantages Disadvantages

DI (K9 Class) • Pipes are relatively strong and can withstand

large external loads with modest bedding.

• The majority of standard pipes and fittings can

handle pressures up to 16 Bar.

• The flexible joint system means that earthquake

movements can be accommodated.

• The strength of the pipes means they are less

likely to be damaged.

• Ductile iron pipes can be laid quicker with short

lengths of trench causing less disruption to road

traffic.

• The system can be modified and additional

facilities easily added to the pipe network.

• Ductile iron pipes are semi-rigid pipes and

generally do not require bedding to be of as high

a standard as PE or PVC pipes.

• Restrained joint can be provided by

most manufactures where the pipes

are to withstand some longitudinal

forces; however, generally anchor

(thrust) blocks are required.

• Unit weight of pipes is generally

higher than PE and PVC Pipes.

• Transportation cost can be relatively

higher.

• Per unit cost of DI pipes in

comparison with GI Pipes is similar,

but becomes cheaper for larger

diameter pipes.


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Pipe Material Advantages Disadvantages

PE100 / HDPE • PE100 pipes are relatively lighter in unit weight

and easier to transport.

• The internal surface is much smoother resulting

in higher “C” value or lower resistance.

• Repair and maintenance is relatively easy

• More suited for conveyance of potable water.

• Greater laying flexibility and requires average

bedding requirements.

• The pressure rating of the larger

diameter pipes is limited.

• Without good storage conditions

plastic pipes deteriorate, and storage

of materials for future repairs may be

difficult.

• Butt-fusion welding of joints needs

special equipment and skill.

• Susceptible to damage by rodents

and creatures of that nature.

uPVC Pipes • uPVC pipes are relatively lighter in unit weight

and easier to transport.

• The internal surface is much smoother resulting

in higher “C” value or lower resistance.

• Suited for conveyance of potable water.

• uPVC pipes are rigid enough for threading and

joining works similar to GI pipes.

• The pressure rating of the larger

diameter pipes is limited.

• To ensure the pipeline has good

structural properties, a good standard

of bedding is required.

• Without good storage conditions

plastic pipes deteriorate and storage

of materials for future repairs may be

difficult.

• Laying and joining of uPVC pipes

requires better skills and joining

materials.

A comparison of the three pipe materials in relation to their unit costs is presented in the chart below. As is

evident, there is not to choose from in terms of unit rates between uPVC and PE 100 for smaller diameter

ranges. However, for larger diameter sizes the costs for DI pipes do increase comparatively. Thus, choosing

of pipe materials should be contingent upon the unit rate, ease in installation, longevity and availability of

spares for repair and maintenance works.

4.1.6 DNI Pipe Material Recommendation

For the present DNI works in Khulna it is recommended that all pipes of sizes DN 250 and above shall be DI.

While for smaller diameter pipes including those for house connections, non-metallic pipes – i.e. PE and

0

50

100

150

200

250

300

350

400

450

500

50 75 110 160 200 225 250 280 315 355 400 450 560

Un

it C

ost

$/m

)

Diameter (mm)

DNI PIPE COMPARISON

PE 100

uPVC

DI


13

uPVC are recommended for use. However, the extensive experience in use and installation of uPVC pipes in

Bangladesh, it is recommended for use in the distribution system. PE100 material of pipes is relatively new

for Bangladesh and skill in pipe joining techniques is not readily available locally. Till such a time when use

of PE100 pipes becomes more common and good skills in pipe joining is easily available, uPVC should be

the prime pipe material for use in water distribution systems. However, PE100 can be used on a pilot basis,

if new technology and materials are to be encouraged.

4.2 Unit Costing

The PPTA reviewed the costing done by the JICA Team and carried out extensive exercise to further

develop the packages, which were termed Package 3 and 4 by the JICA Feasibility Study. The PPTA Team

developed total project cost for ADB financing primarily for the transmission of clean water from the

proposed surface water treatment plant, DNI in five zones, reservoirs and OHTs for various zones and

related electro-mechanical works

Estimation of investment packages for the ensuing ADB loan has been done using existing market rates,

prevalent unit rate analyses and other quick estimation tools based on previous actual incurred costs

adjusted for inflation. For material rates market rates from both national and international suppliers and

manufacturers have been collated and adjusted for present use. Rates from Public Works Department

(PWD), Bangladesh Water Development Board (BWDB) and Dhaka Water Supply and Sewerage Authority

(DWASA) were also collected to develop unit rates for estimation purposes.

Costs for the DI pipe materials for sizes ranging from 250 mm to 1100 mm were developed using a cost

function developed and stated in "Design of Water Supply Pipe Networks" Prabhata K. Swamee and Ashok

K. Sharma, WILEY-Interscience. The prices established using the above mentioned cost function was further

compared with existing market rates, JICA proposed rates, DWASA rates. The results from this exercise

were consolidated to develop unit rates for DI pipes and fittings. Similarly, unit rate analyses for earthwork,

blanket, backfill materials, pavement reinstatement, etc. were carried out in accordance with GOB norms

and per unit rates developed.

Costing for the Distribution Network Improvement (DNI) has been based on actual costs developed for

GOB funded improvement works being proposed for implementation by KWASA and other similar works.

Typical DNI works with distribution pipeline, valves, appurtenances, household meters, pavement

reinstatement, etc. were costed and unit cost developed.

Electro-mechanical equipment primarily comprises of pumps, motors, panel boards, transformers,

generators, dosing units and other such components. Costing of such components has been based on

prevailing market rates, which were further collaborated with actual rates obtained from tender awards for

similar works carried out in Bangladesh and neighboring areas in the region. Installation charges etc. of

such equipment were added to the equipment cost and the total budget / investment developed.

Distribution reservoirs and overhead tanks (OHT) proposed under the ensuing loan have been costed using

unit rates developed from actual costs of construction of such reservoirs elsewhere in Bangladesh and

construction rates of PWD, LGED and BWDB. It has been presumed that all newly proposed reservoirs shall

be RCC, either elevated overhear tanks or ground storage reservoirs. Actual costs from a number of

projects in Bangladesh in the recent past were analyzed and a unit cost was developed.

Costing for other civil works like chambers, construction of small buildings, etc. has been done using

prevailing unit rates for construction adjusted for inflationary measures. Such unit rates have been

developed using actual costs of similar structures and works.

Other procurement materials include leak detection equipment, meter calibration bench, portable water

quality equipment, tools and equipment and similar equipment. Budgeting for such items have been based

market rates and unit costs used in similar projects in the region. These unit costs have accordingly

adjusted for potential price fluctuations and rounded for establishing budgetary requirements.


14

4.3 Project Investment

Total project cost for ADB financing comprises primarily of the transmission of clean water from the

proposed surface water treatment plant, DNI in five zones, reservoirs and OHTs for various zones and

related electro-mechanical works and other support for KWASA building infrastructure, equipment and

vehicles and technical assistance. The sections here summarize the investment for transmission,

distribution improvement, reservoir and overhead tank construction and other infrastructure development

activities. The overall project investment excluding price or physical contingencies for transmission and

distribution network improvement works and related works is given in the table below:

Table 11: Project Investment Cost

CONSTRUCTION & SUPPLY CONTRACTS US$ Million Taka Billion

1 Transmission Main Installation; 29.49 2.06

2 Civil Works – Distribution Storage and OHT’s; 21.47 1.50

3 Zone 1 DNI 8.86 0.62

4 Zone 2 DNI 13.59 0.95

5 Zone 3 DNI 9.97 0.70

6 Zone 4 DNI 7.41 0.52

7 Zone 5 DNI 6.10 0.43

8 DTW Rehabilitation – Equipment supply and installation contracting Including provision for regeneration of Phultala Wells

0.30 0.02

9 Construction of HQ and 3 2-Storey Zonal Offices 2.12 0.15

10 Provision of Operational Vehicles & Office Equipment 1.24 0.09

11 LIC & Slum Area Infrastructure Provision 1.70 0.12

12 Groundwater Monitoring System 0.22 0.02

13 Deep Aquifer Test Drilling 0.75 0.05

14 Meter Testing Laboratory equipment 0.25 0.02

15 Business Systems hardware & software 0.75 0.05

Construction/Materials Sub-Total 104.22 7.30

CONSULTANCY CONTRACTS

16 Corporate Management – Consultant support to KWASA 2.00 0.14

17 Engineering Design – Detailed survey & design, contractor procurement and implementation supervision

5.49 0.38

Consultancy Sub-Total 7.49 0.52

TOTAL 111.71 7.82

4.3.1 Clean Water Transmission

The major components under this are transmission mains from the treatment plants to the five distribution

reservoirs including necessary fittings, valves, bulk meters, RCC chambers, etc. Cost for a major river

crossing for the transmission main is also accounted for under this heading. Reinstatement costs for

existing road pavement surfaces and costs for pipeline excavation, filling and bedding has also been


15

included. The collector mains from existing and proposed production wells of KWASA to the distribution

reservoirs and the pumping mains from the distribution reservoirs to the eleven overhead tanks has also

been included under this project component. It is proposed that a common meter calibration and testing

facility should also be developed. Details of the various components, units costs / rates and total

investment under this package is given in the summary table below:

Table 12: Investment for Clean Water Transmission Works

S.No. Description Quantity Unit Rate US$ Total Amount US$

I Water Supply Component

A Civil Works & Distribution Pipe Line

1 Meter / Valve Chambers (Type 3) 20 Nos. 594.02 11,880



4 Meter / Valve Chambers (Type 6) 5 Nos. 1,167.82 5,839

5 River Crossing (390 m) 390 m 12,000.00 4,680,000

6 Reinstatement & Re-sealing of Black topped Road 48,120 Sq.m 25.00 1,203,000

7 Re-instatement of the Gravel Road 32,080 Sq.m 10.00 320,800

Sub-Total "A1"

6,237,217

B 1. Pipeline & Fittings Works

1 Pipes - Supply, Laying, Installation and Testing

a) DI

1100 mm 10,900 m 785.50 8,561,950

900 mm 1,500 m 659.50 989,250

800 mm 1,900 m 585.50 1,112,450

600 mm 4,400 m 457.30 2,012,120

500 mm 6,300 m 382.30 2,408,490

300 mm 400 m 147.25 58,900

250 mm (Pumping Mains RVT to OHT) 34,800 m 114.25 3,975,900

200 mm (Collector Mains from DTW to RVT) 20,000 m 89.25 1,785,000

2 Pipe Fittings - Supply and installation

b) DI

Sizes 200mm - 250mm 1,096 Nos 880.08 964,568

Sizes 300mm - 400mm 13 Nos 1,009.16 13,119

Sizes 500mm - 600mm 214 Nos 2,015.00 431,210

Sizes 800mm - 900mm 34 Nos 3,520.00 119,680

Sizes 1000mm and above 44 Nos 7,525.00 331,100

3 Valves

Sizes 300mm - 400mm 2 Nos 2,509.72 5,019

Sizes 500mm - 600mm 10 Nos 3,615.00 36,150

Sizes 800mm - 900mm 3 Nos 10,020.00 30,060


4 Bulk Meters

Sizes 200mm - 250mm 15 Nos 3,505.36 52,580

Sizes 300mm - 400mm 15 Nos 5,009.25 75,139

5 Pipeline Trench Excavation & Backfilling

a) Excavation for pipeline trenches in Boulder Mixed Soil 43,308 m3 3.60 155,909

b) Backfilling in Layers 38,977 m3 0.99 38,587

c) Sand bed for pipe laying (at least 100 mm thick) 4,000 m3 6.50 26,000

6 Supply and Installation of Water Meter Testing 1 Nos. 15,000.00 15,000

and Calibration Benches (units)

Sub-Total "B"

23,257,057

Total A and B

29,494,274


16

4.3.2 Distribution Reservoir and Overhead Tanks

As discussed earlier, there are altogether five distribution reservoirs and eleven overhead tanks in the five

supply zones. The project investment under this component includes cost of the reservoirs and overhead

tanks and the associated electro-mechanical equipment at each reservoir and overhead tank location. The

costs also include outflow bulk meters, telemetry equipment, etc. for the reservoirs and the overhead

tanks. In addition some budget has been allocated to rehabilitate and regenerate some of the existing

production wells as well as install necessary items like bulk meters at these wells. Details of the various

components, units costs / rates and total investment under this package is given in the summary table

below:

Table 13: Project Investment for Reservoirs and Overhead Tanks


I Distribution Reservoir

A Civil Works

1 Deana West Para Reservoir - 8000 m3 1 Nos. 2,493,770 2,493,770

2 Ward No. 16 O- 9000 m3 1 Nos. 2,668,383 2,668,383

3 Sonadanga Moha Sarak Reservoir - 18,000 m3 1 Nos. 4,320,196 4,320,196

4 Beside of No.7 Ward Office Reservoir - 5000 m3 1 Nos. 1,885,445 1,885,445

5 Khalishpur Charehat River Ghat Reservoir - 15,000 m3 1 Nos. 3,703,368 3,703,368

Sub-Total "A"

15,071,162

B Mechanical Works

1 Distribution Reservoirs - 5 Pumping Stations 1 Set 1,030,282 1,030,282

2 Rehabilitation and regeneration of existing production wells 1 Set 300,000 300,000

Sub-Total "B"

1,330,282

C Electrical Works

1 Deana West Para Reservoir - 8000 m3 1 Set 250,441 250,441

2 Ward No. 16 O- 9000 m3 1 Set 238,798 238,798

3 Sonadanga Moha Sarak Reservoir - 18,000 m3 1 Set 440,227 440,227

4 Beside of No.7 Ward Office Reservoir - 5000 m3 1 Set 172,216 172,216

5 Khalishpur Charehat River Ghat Reservoir - 15,000 m3 1 Set 445,441 445,441

Sub-Total "C"

1,547,124

Total "I"

17,948,568

II Overhead Tanks

A Civil Works

1 OHT - 500 m3 6 Nos. 337,066 2,022,396

2 OHT - 300 m3 5 Nos. 256,898 1,284,489

Sub-Total "A"

3,306,885

B Electrical Works

1 Six OHTs located away 1 Set 213,673 213,673

Sub-Total "B"

213,673

Total "II"

3,520,559

Total "I" and "II"

21,469,127

4.3.3 Distribution Network Improvement in Service Zones

Distribution network improvement works in each zone includes costs of distribution and service mains,

house connections, water meters and associated fittings, valves and bulk meters. All the costs associated in

establishing District Metering Areas (DMAs) have also been accounted for within the DNI costs.

Reinstatement costs for existing road pavement surfaces and costs for pipeline excavation, filling and

bedding has also been included in each zone. DNI works also include small costs for the procurement of

tools and equipment required for pipe and fittings installation and repairs, leak detection equipment and a

portable water quality monitoring equipment in each zone. Details of the various components, units costs /


17

rates and total investment under packages for each of the service zone is given in the summary tables

below:

Table 14: Project Investment for DNI Works in Zone 1









6 Miscellaneous Structure 1 LS 50,000.00 50,000



9 House / Service Connections 9,558 No 135.28 1,293,052

10 Additional Meter for KWASA Inventory 2,500 Sets 30.00 75,000

Sub-Total "A1"

3,146,937



a) DI

350 mm 1,300 m 220.30 286,390

300 mm 3,700 m 147.25 544,825

250 mm 13,800 m 114.25 1,576,650

b) PVC

200 mm 15,700 m 59.25 930,225

150 mm 20,700 m 17.60 364,320

100 mm 25,000 m 14.55 363,750

75 mm 25,000 m 11.47 286,750

50 mm 15,000 m 9.47 142,050


a) PVC

Sizes 50mm - 75mm 1,600 Nos 22.02 35,232

Sizes 100mm- 150mm 1,523 Nos 38.04 57,935

Sizes 200mm 523 Nos 55.08 28,807

b) DI

Sizes 250mm - 300mm 583 Nos 880.08 513,087

Sizes 350mm - 400mm 26 Nos 1,009.16 26,238

3 Valves

Sizes 80mm - 100mm 25 Nos 509.72 12,743

Sizes 100mm - 150mm 21 Nos 1,009.72 21,204

Sizes 200mm - 250mm 14 Nos 1,518.44 21,258


4 Bulk Meters

Sizes 65mm - 80mm 40 Nos 755.36 30,214

Sizes 100mm - 150mm 46 Nos 1,509.25 69,426

Sizes 200mm - 250mm 14 Nos 2,515.25 35,214



a) Excavation for pipeline trenches 64,908 m3 3.60 233,669



Sub-Total "B"

5,701,494

C Tools, Equipments & Transportation

1 Tools & Equipment 1 Nos. 15,000 15,000


18


2 Portable Water Quality Monitoring Equipment 1 Nos. 12,000 12,000

3 Leak Detection Equipment 1 Nos. 12,000 12,000

4 Environmental and Social Monitoring Cost 1 Nos. 15,000 15,000

Sub-Total "C"

54,000

Total A, B and C

8,902,431















Sub-Total "A1"

4,789,537



a) DI

400 mm 1,500 m 310.30 465,450

350 mm 1,600 m 220.30 352,480

300 mm 2,900 m 147.25 427,025

250 mm 21,800 m 114.25 2,490,650

b) PVC

200 mm 27,700 m 59.25 1,641,225

150 mm 32,700 m 17.60 575,520

100 mm 25,000 m 14.55 363,750

75 mm 25,000 m 11.47 286,750

50 mm 15,000 m 9.47 142,050


a) PVC

Sizes 50mm - 75mm 1,600 Nos 22.02 35,232

Sizes 100mm- 150mm 1,923 Nos 38.04 73,151

Sizes 200 mm 923 Nos 55.08 50,839

b) DI

Sizes 250mm - 300mm 823 Nos 880.08 724,306

Sizes 350mm - 400mm 62 Nos 1,009.16 62,568

3 Valves

Sizes 80mm - 100mm 25 Nos 509.72 12,743

Sizes 100mm - 150mm 33 Nos 1,009.72 33,321

Sizes 200mm - 250mm 22 Nos 1,518.44 33,406


4 Bulk Meters

Sizes 65mm - 80mm 100 Nos 755.36 75,536


19


Sizes 100mm - 150mm 250 Nos 1,509.25 377,313

Sizes 200mm - 250mm 50 Nos 2,515.25 125,763






Sub-Total "B"

8,813,907






Sub-Total "C"

54,000

Total A, B and C

13,657,444















Sub-Total "A1"

3,980,812



a) DI

400 mm 1,200 m 310.30 372,360

350 mm 3,500 m 220.30 771,050

300 mm 1,200 m 147.25 176,700

250 mm 9,900 m 114.25 1,131,075

b) PVC

200 mm 20,000 m 59.25 1,185,000

150 mm 24,500 m 17.60 431,200

100 mm 25,000 m 14.55 363,750

75 mm 25,000 m 11.47 286,750

50 mm 15,000 m 9.47 142,050


a) PVC

Sizes 50mm - 75mm 1,600 Nos 22.02 35,232

Sizes 100mm- 150mm 1,650 Nos 38.04 62,766

Sizes 200 mm 667 Nos 55.08 36,738

b) DI


20


Sizes 250mm - 300mm 370 Nos 880.08 325,630

Sizes 350mm - 400mm 94 Nos 1,009.16 94,861

3 Valves

Sizes 80mm - 100mm 25 Nos 509.72 12,743

Sizes 100mm - 150mm 25 Nos 1,009.72 25,243

Sizes 200mm - 250mm 10 Nos 1,518.44 15,184


4 Bulk Meters

Sizes 65mm - 80mm 40 Nos 755.36 30,214

Sizes 100mm - 150mm 25 Nos 1,509.25 37,731

Sizes 200mm - 250mm 10 Nos 2,515.25 25,153






Sub-Total "B"

5,927,076






Sub-Total "C"

54,000

Total A, B and C

9,961,888











7 Reinstatement & Re-sealing of Black topped Road 35,070 Sq.m 25.00 876,750




Sub-Total "A1"

3,218,188



a) DI

350 mm 2,500 m 220.30 550,750

300 mm 1,600 m 147.25 235,600

250 mm 9,500 m 114.25 1,085,375

b) PVC

200 mm 10,700 m 59.25 633,975

150 mm 19,200 m 17.60 337,920

100 mm 15,000 m 14.55 218,250

75 mm 15,000 m 11.47 172,050


21


50 mm 10,000 m 9.47 94,700


a) PVC

Sizes 50mm - 75mm 1,000 Nos 22.02 22,020

Sizes 100mm- 150mm 1,140 Nos 38.04 43,366

b) DI

Sizes 250mm - 300mm 370 Nos 880.08 325,630

Sizes 350mm - 400mm 50 Nos 1,009.16 50,458

3 Valves

Sizes 80mm - 100mm 15 Nos 509.72 7,646

Sizes 100mm - 150mm 19 Nos 1,009.72 19,185

Sizes 200mm - 250mm 10 Nos 1,518.44 15,184


4 Bulk Meters

Sizes 65mm - 80mm 25 Nos 755.36 18,884

Sizes 100mm - 150mm 19 Nos 1,509.25 28,676

Sizes 200mm - 250mm 10 Nos 2,515.25 25,153






Sub-Total "B"

4,130,220






Sub-Total "C"

54,000

Total A, B and C

7,402,407











7 Reinstatement & Re-sealing of Black topped Road 30,954 Sq.m 25.00 773,850



10 Additional Meter for KWASA Inventory 910 Sets 30.00 27,300

Sub-Total "A1"

2,378,627



a) DI

350 mm 900 m 220.30 198,270


22


300 mm 1,300 m 147.25 191,425

250 mm 11,700 m 114.25 1,336,725

b) PVC

200 mm 6,400 m 59.25 379,200

150 mm 13,400 m 17.60 235,840

100 mm 15,000 m 14.55 218,250

75 mm 15,000 m 11.47 172,050

50 mm 10,000 m 9.47 94,700


a) PVC

Sizes 50mm - 75mm 1,000 Nos 22.02 22,020

Sizes 100mm- 150mm 947 Nos 38.04 36,024

Sizes 200 mm 213 Nos 55.08 11,732

b) DI

Sizes 150mm - 200mm - Nos 485.08 -

Sizes 250mm - 300mm 433 Nos 880.08 381,075

Sizes 350mm - 400mm 18 Nos 1,009.16 18,165

3 Valves

Sizes 80mm - 100mm 15 Nos 509.72 7,646

Sizes 100mm - 150mm 13 Nos 1,009.72 13,126

Sizes 200mm - 250mm 12 Nos 1,518.44 18,221


4 Bulk Meters

Sizes 65mm - 80mm 25 Nos 755.36 18,884

Sizes 100mm - 150mm 28 Nos 1,509.25 42,259

Sizes 200mm - 250mm 12 Nos 2,515.25 30,183






Sub-Total "B"

3,640,653






Sub-Total "C"

54,000

Total A, B and C

6,073,279

4.3.4 Infrastructure Development and Supporting Activities

Construction of KWASA Office Buildings – KWASA are currently working out of a single three-storey office

building located to the south east of the service area. These offices are not adequate for existing staff and

are remote from many parts of the service area. KWASA have plans to increase the number of offices

within the next 2 years in order to accommodate increasing numbers of staff, these will also be built at

strategic locations within the service area in line with the proposed zoning under the investment plan.

Provision has been made for the construction of a six-storey Headquarters building and three two-storey

zonal offices.


23

Production Tubewell Rehabilitation – Analysis of the performance of KWASA production tube wells has

indicated a number of problems with the existing pumps and wells. A provision has been included for

rehabilitation of a number of wells, which includes well regeneration (15 no. Wells), Pump and motor

control panel replacement (14 nos.), and Column Shaft Riser Assembly replacement (104.

In addition to the rehabilitation of wells in the Khulna City area a provision has also been made for the

proper regeneration and development of the 20 wells in the Phultala well field.

Deep Aquifer Test Drilling – Water in Khulna is currently abstracted from aquifers down to 300m; the

location and capacity of these aquifers is well documented through the recent IWM modelling studies

undertaken for KWASA. There is also an aquifer at around 600m deep from which it is believed sustainable

supplies can also be developed. A provision is included in the investment plan to undertake test drilling of

this very deep aquifer to ascertain whether future abstraction is viable.

Meter Testing Laboratory Equipment – In the next two years KWASA will be implementing comprehensive

metering of all customer connections. Provision has been made for the purchase of a meter testing rig to

allow checking of meter accuracy and if necessary allow the recalibration of meters after refurbishment. It

has been assumed that the office space for the equipment and staff will be provided at one of the office

sites to be constructed under the project.

Provision of Operational Vehicles – KWASA currently have very few vehicles for operational purposes. A

provision is included in the investment plan for vehicles to support KWASA operations (Head office,

Production and customer service) the vehicles include pickups, motorbikes, water tankers, sludge truck and

cars. The purchase of vehicles will be phased over time and purchased as the need arises.

Groundwater Monitoring System – A key recommendation of the IWM groundwater modelling study was

that KWASA should monitor the condition of the aquifers from which their supply is being abstracted. A

provision of US$ 220,000 has been included for monitoring wells and equipment to allow an effective

monitoring system to be set up.

Business Systems Hardware and Software - As KWASA capacity is developed so business management

systems will be introduced to support the growth of the business. A provision of US$ 750,000 has been

included here to cover expenditure on hardware and software for meter reading and billing, customer

management systems, GIS etc. Details will be specified during future TA support to be provided to KWASA

Water Point Infrastructure within Slum Community and Informal Settlements – A significant proportion of

the population of Khulna live in low income areas or slum settlements. ADB policy is, wherever possible, to

provide individual connections to customers irrespective of economic status. In practice there will be some

areas in which provision of individual connections is not practical – be it from an economic point of view or

from an environmental point of view (available space, drainage, etc.). For this reason the cost of the

provision of communal infrastructure for water delivery has been included in the investment plan.

A provision of US$ 1.7 million has been included on the following basis:

• Extreme poor population of Khulna estimated at 20% - 280,000 people (2017); 39,000 households

• Water point density – 1 point per 15 households

• Total Water Points – 2,700


24

• Water point cost – US$ 6301/point (including pipework within the settlement area from the bulk

meter)

Consultancy and Technical Assistance – The provision of two types of consultancy is included for under the

Project, they are:

• Engineering design, tendering, and construction supervision of all investment packages; and

• Corporate Management Support to KWASA for institutional and operational capacity building.

4.4 Procurement and Contract Packaging

The Khulna Water Supply Project is a fairly large project involving civil works, pipe works, electro-

mechanical equipment and other related works and goods required for a typically large water supply

improvement project. In this regard procurement of works and goods will dominate the total procurement

plan with some procurement of services primarily for consulting services. The ADB threshold for various

procurement of goods and works is as follows:

Table 19: Procurement of Goods and Works

Method Threshold

International Competitive Bidding (ICB) for Works Over $2,000,000

International Competitive Bidding for Goods Over $1,000,000

National Competitive Bidding (NCB) for Works Below $2,000,000

National Competitive Bidding for Goods Below $1,000,000

Shopping for Works Below $100,000

Shopping for Goods Below $100,000

The following table provides an indicative list of all procurement (goods, works and consulting services)

over the life of the project. Contracts financed by the Borrower and others should also be indicated, with

an appropriate notation in the comments section.

Table 20: Probable List of Contract Packages under the Project

General Description Estimated Value

(cumulative, $1000)

Estimated

Number of

Contracts

Procurement

Method

Domestic

Preference

Applicable

Comments

Equipment

Tools and equipment for

zone offices $67,873 1 Shopping Yes

Water quality monitoring

equipment for zone offices $54,299 1 Shopping Yes

Leak detection equipment

for zone offices $54,299 1 Shopping Yes

1Implementation Guidelines for Urban Water Point/Stand Post – Water Aid, 2007: Estimated Tap Stand Cost – Tk 31,500; TA7385

Estimate for internal pipework (50m) and fittings Tk 12,575.


25

General Description Estimated Value

(cumulative, $1000)

Estimated

Number of

Contracts

Procurement

Method

Domestic

Preference

Applicable

Comments

Office equipment $111,700 Multiple Shopping Yes

Vehicles 906,787 Multiple ICB/shopping Yes

Works

Construction of clear water

transmission mains $ 26,705,225 1 ICB Yes

Construction of distribution

reservoirs and OHTs $ 21,174,387 1 ICB Yes

Construction of distribution

pipe network $ 39,624,705 1 ICB Yes

Service connections with

meters $1,836,421 1 NCB

Connections for low income

areas $1,710,000 1 NCB

Rehabilitation of deep tube

wells (DTW) $266,143 1 NCB

Development of deep

exploratory well $100,000 1 SSS

Development of monitoring

wells $106,429 1 NCB

Consulting Services

Design and Supervision $5,118,300 1 QCBS, 80:20 FTP

Corporate Management

Support $2,044,700 1 QCBS, 80:20 FTP

Groundwater Monitoring $ 182,294 1 CQS STP

QCBS = quality cost based selection, CQS = consultants qualifications selection, ICB = international competitive bidding, NCB = national competitive bidding, SSS = single source selection, FTP = full technical proposal, STP = simplified technical proposal

4.5 Conclusions and Recommendations

The PPTA Teams recommendation for distribution system improvement works, transmission of clean water

and storage requirements are generally in conformity with the concepts and recommendations of the JICA

Feasibility Study. However, considering the scheduling the proposed investment of JICA and ADB and the

immediate improvement works being carried out with GOB funds by KWASA, a number of issues need to

be considered for immediate development and subsequent long-term investment planned under ADB and

JICA assistance.

• All ground water production wells being planned for implementation by KWASA with GOB funding

has to be done in line with the recommendations of the recently concluded groundwater study and

strategy being developed. In other words, the production wells need to be clustered as well fields

in areas identified with good ground water potential and in the proximity of the proposed

groundwater reservoirs in the various zones. This would entail that the production wells can be

easily connected to the ground reservoirs and supplied to the consumers through their respective

overhead tanks. Sparse and dispersed installation of production wells should be avoided.


26

• KWASA is thinking along the lines that a consumptive supply pattern be developed for water from

the Phultala Well fields and the proposed small surface water source with treatment plant aimed

to supply water to the northern part of Khulna – primarily area under Zone 1. As considerable

investment has been made to exploit the Phultala Well Fields, KWASA feels that it makes sense to

use the investment in conjunction with the proposed surface water supply for part of the year and

supply water to Zone 1 in the immediate future – prior to commissioning of the proposed system

under JICA and ADB assistance. If this materializes then this needs to be factored in by the Project

during detailed design stage.

• Any distribution network improvement being planned for immediate service improvement by

KWASA has to be done within the overall framework of the distribution network developed for

each of the five distribution zones. Any independent and isolated attempt to design and lay

distribution pipes in these zones shall make these investments redundant and useless later on.

• Location of groundwater reservoirs in Zone 3 and Zone 5 has increased pumping requirements and

length of pumping mains from the ground reservoirs to the overhead tanks. Ideally, the

groundwater reservoirs for these two zones ought to have been located at a more vantage point

within the Zones. However, in the core city area it is always difficult to find appropriate and

adequate land for such structures. Therefore, during the detailed engineering design phase it may

be worthwhile to consider an exercise in optimization by varying the sizes and location of the

ground reservoirs and the overhead tanks.

Appendix 2 CONTRACT PROCURMENT

1

Procurement of Good, Works and Services

General

The Khulna Water Supply Project is a fairly large project involving civil works, pipe works, electro-

mechanical equipment and other related works, goods and services required for a typically large water

supply improvement project. In this regard procurement of works and goods will dominate the total

procurement plan with some procurement of services primarily for consulting services.

All advance contracting and retroactive financing will be undertaken in conformity with ADB’s

Procurement Guidelines (April 2010, as amended from time to time)1 and ADB’s Guidelines on the Use

of Consultants (2010, as amended from time to time).2 Advance contracting and retroactive financing

will be subject to ADB approval. The Government has been advised that approval of advance contracting

and retroactive financing does not commit ADB to finance the Project.

Advance Contracting – Advance contracting will be allowed upon ADB's approval for selection of

consulting services, including (i) request for EOI, (ii) short-listing, (iii) request for proposals, and (iv)

evaluation of proposals; and for procurement of goods and works, including (a) prequalification, (b)

tendering, and (c) bid evaluation.

Retroactive Financing – The maximum amount of eligible expenditures for retroactive financing is $15

million, the equivalent of 20% of the total ADB loan, incurred before the loan effectiveness, but not

more than 12 months before the signing of the loan agreement.

Procurement of goods and works – All procurement of goods and works will be undertaken in

accordance with ADB’s Procurement Guidelines. International competitive bidding (ICB) procedures will

be used for civil works contracts valued at $2.0 million or higher, and goods supply contracts valued at

$1.0 million or higher. Below the thresholds for ICB, National competitive bidding (NCB) procedure may

be used for works contracts and goods supply contracts. Shopping may be used for works and goods

supply contracts worth less than $100,000. ADB and the Government will review the public

procurement laws of the Government to ensure consistency with ADB’s Procurement Guidelines. The

detail procedures of procurement will be found in PAI. The most relevant sections of PAI3 for the Project

are as follows:

• Procedure and flow charts for NCB: PAI 3.04

• Procedure and flow chart for ICB: PAI 3.03

Consultant selection – All consultants, community-based organizations (CBOs) and nongovernment

organizations (NGOs) will be recruited according to ADB’s Guidelines on the Use of Consultants.4

Consulting services are required to (i) support project management, (ii) carry out detailed design and

1 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf

2 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf

3 http://www.adb.org/Documents/Manuals/PAI/default.asp

4Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation

at: http://www.adb.org/documents/handbooks/project-implementation/


2

construction supervision, including monitoring for safeguards compliance, (iii) provide institutional and

capacity development programs. Most consultants will be engaged through international consulting

firms. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a

standard quality/cost ratio of 80/20 and full-technical proposals, or Consultancy Qualification Selection

(CQS) method. The most relevant sections of PAI5 are as follows - Procedure and flow chart: PAI 2.03,

2.05.

Procurement Plan

The ADB threshold for various procurement of goods and works are as follows under the proposed 18-

Month Procurement Plan. Except as the Asian Development Bank (ADB) may otherwise agree, the

following process thresholds shall apply to procurement of goods and works.

Table 1: Procurement of Goods and Works

Method Threshold

International Competitive Bidding (ICB) for Works Over $2,000,000

International Competitive Bidding for Goods Over $1,000,000

National Competitive Bidding (NCB) for Works Below $2,000,000

National Competitive Bidding for Goods Below $1,000,000

Shopping for Works Below $100,000

Shopping for Goods Below $100,000

ICB = international competitive bidding, NCB = national competitive bidding.

ADB Prior or Post Review – Except as ADB may otherwise agree, the following prior or post review

requirements apply to the various procurement and consultant recruitment methods used for the

project.

5 http://www.adb.org/Documents/Manuals/PAI/default.asp


3

Table 2: ADB Review of Contract Packages

Procurement Method Prior or Post Comments

Procurement of Goods and Works

ICB Works and Goods Prior

NCB Works and Goods Prior if over $500,000

NCB Works and Goods Post if below $500,000

Shopping for Works Post

Shopping for Goods Post

Recruitment of Consulting Firms

Quality- and Cost-Based Selection (QCBS) Prior

Quality-Based Selection (QBS) Prior

Other selection methods: Consultants Qualifications

(CQS), Least-Cost Selection (LCS), Fixed Budget

(FBS), and Single Source (SSS)

Prior

Recruitment of Individual Consultants

Individual Consultants Prior

CQS = consultants qualifications selection, FBS = fixed budget selection, ICB = international competitive

bidding, LCS = least-cost selection, NCB = national competitive bidding, QBS = quality-based selection,

QCBS = quality- and cost-based selection, SSS = single source selection.

Goods and Works Contracts Estimated to Cost More Than $1 Million – The following table lists goods

and works contracts for which procurement activity is either ongoing or expected to commence within

the next 18 months.


4

Table 3: Contract Packages (Goods and Works) Over US $ 1 Million

General Description Contract

Value

Procurement

Method

Prequalification

of Bidders (y/n)

Advertisement

Date

(quarter/year)

Comments

Construction of clear

water transmission

mains

$ 26,705,225 ICB No Q3/2012

Construction of

distribution reservoirs

and OHTs

$ 21,174,387 ICB No Q3/2012

Construction of

distribution pipe

network

$ 39,624,705 ICB No Q3/2012

Service connections with

meters $1,836,421 NCB No Q3/2011

Connections for low

income areas $1,710,000 NCB No Q3/2012

Consulting Services Contracts Estimated to Cost More Than $100,000 – The following table lists

consulting services contracts for which procurement activity is either ongoing or expected to commence

within the next 18 months.

Table 4: Consulting Services Contracts >US $100,000

General Description Contract

Value

Recruitment

Method

Advertisement

Date

International or

National

Assignment

Comments

Design and Supervision $5,118,300 QCBS

80:20 Q1 2011 International

Corporate Management

Support $2,044,700

QCBS

80:20 Q1 2011 International

Groundwater Monitoring $ 182,294 CQS Q1 2011 National

Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts

Less than $100,000 – The following table groups smaller-value goods, works and consulting services

contracts for which procurement activity is either ongoing or expected to commence within the next

18 months.


5

Table 5: Small Contracts – Works, Goods and Services

General

Description

Value of Contracts

Number of

Contracts

Procurement /

Recruitment

Method

Comments

Rehabilitation of deep tube

wells (DTW) $266,143 1 NCB

Development of deep


With

Geological

Survey of

Bangladesh

Development of monitoring

wells $106,429 1 NCB

Tools and equipment for zone

offices $67,873 1 Shopping

Portable water quality

monitoring equipment for

zone offices

$54,299 1 Shopping

Leak detection equipment for

zone offices $54,299 1 Shopping

Office equipment $111,700 Multiple Shopping

Vehicles $906,787 Multiple ICB/shopping

Indicative List of Packages Required Under the Project – The following table provides an indicative list of

all procurement (goods, works and consulting services) over the life of the project.

Table 6: Indicative List of Contract Packages under the Project

General Description

Estimated Value

(cumulative,

$1000)

Estimated

Number of

Contracts

Procurement

Method

Domestic

Preference

Applicable

Comments

Equipment

Tools and equipment

for zone offices $67,873 1 Shopping Yes

Water quality

monitoring equipment

for zone offices

$54,299 1 Shopping Yes

Leak detection

equipment for zone

offices

$54,299 1 Shopping Yes

Office equipment $111,700 Multiple Shopping Yes

Vehicles 906,787 Multiple ICB/shopping Yes


6

General Description

Estimated Value

(cumulative,

$1000)

Estimated

Number of

Contracts

Procurement

Method

Domestic

Preference

Applicable

Comments

Works

Construction of clear

water transmission

mains

$ 26,705,225 1 ICB Yes

Construction of

distribution reservoirs

and OHTs

$ 21,174,387 1 ICB Yes

Construction of

distribution pipe

network

$ 39,624,705 1 ICB Yes

Service connections

with meters $1,836,421 1 NCB

Connections for low

income areas $1,710,000 1 NCB

Rehabilitation of deep

tube wells (DTW) $266,143 1 NCB

Development of deep


Development of

monitoring wells $106,429 1 NCB

Consulting Services

Design and Supervision $5,118,300 1 QCBS, 80:20 FTP

Corporate

Management Support $2,044,700 1 QCBS, 80:20 FTP

Groundwater

Monitoring $ 182,294 1 CQS STP

QCBS = quality cost based selection, CQS = consultants qualifications selection, ICB = international

competitive bidding, NCB = national competitive bidding, SSS = single source selection, FTP = full

technical proposal, STP = simplified technical proposal.

Appendix 3 SUBSIDIARY LOAN AGREEMENT

SUBSIDIARY LOAN AGREEMENT (SLA)

BETWEEN

GOVERNMENT OF THE PEOPLE’S REPUBLIC OF BANGLADESH

AND

KHULNA WATER SUPPLY AND SEWERAGE AUTHORITY (KWASA)

FOR

KHULNA WATER SUPPLY PROJECT (KWSP)

Date: …………………………….


1

SUBSIDIARY LOAN AGREEMENT (SLA)

The Subsidiary Loan Agreement (hereinafter called “SLA”) made this …….. day of ……………….. 2010.

BETWEEN

The Government of the People’s Republic of Bangladesh represent by the Finance Division, Ministry of

Finance (hereafter called “GoB”)

AND

The Khulna Water Supply and Sewerage Authority (hereafter called “KWASA”) originally established

under The Water Supply ….. represented by the Managing Director, having its office at 1062/1Ka, Khan-

A-Sabur Road, Khulna-9100, Bangladesh.

WHEREAS

a) By a Credit Agreement No. ……………. Dated …………………. (hereinafter referred to as the Loan

Agreement) between the Asian Development Bank (hereafter called “ADB”) and the

Government, ADB has agreed to make available to the Government from its special funds

resources a loan in an amount equivalent to Special Drawing Rights

………………………………………………… (SDR ………………..) , (hereinafter called the “Loan”, for the

purposes of implementation of Khulna Water Supply and Sewerage Authority Project

(hereinafter called the Project) on the terms and conditions set forth therein;

b) Under the terms of the Loan Agreement, the Government has agreed to make available to

KWASA part of the proceeds of the Loan under terms and conditions acceptable to ADB;

c) By a Project Agreement entered into by ADB and KWASA on ……………………………… (hereinafter

call the Project Agreement), KWASA has undertaken certain obligations to ADB in connection

with its use of the proceeds of the said Loan and the implementation of the project; and

d) In view of the foregoing, parties hereto have agreed to enter into this Agreement which is the

Subsidiary Loan Agreement referred to in Art. XXXX of the Financing Agreement.

NOW THEREFORE, the parties hereto agree as follows:

ARTICLE – I DEFINITIONS

Section 1.01 Wherever used in this Subsidiary Loan Agreement, unless the context otherwise

requires, the several terms defined in the Loan Agreement (as so defined) and the


2

Project Agreement shall have the respective meanings therein set-forth and following

additional terms shall have the following meanings.

“Subsidiary Loan” means the loan made available by the Government to KWASA.

ARTICLE –II SUBSIDIARY LOAN

Section 2.01 a) unless otherwise agreed to by and between ADB and the Government, the

Government hereby agrees to lend to KWASA the amount equivalent to SDR XXXXXX

(Equivalent of US$ YYYYYY as per exchange rate, 1 SDR = YYUS$ as on [date]) subject to

and upon the terms and conditions set-forth in the Loan Agreement and this Agreement

for the purpose of carrying out the Project. Unless and until expressly revoked by the

Government at its sole discretion, the Government hereby appoints KWASA as its agent

for the purpose of taking actions or entering into agreements required or permitted

under Sections xxxx Loan Agreement and Sections xxx.

b) The Government shall establish and maintain an imprest account with a commercial

Bank in Khulna in consultation with ADB as per additional instructions: Disbursement of

ADB vide a letter dated xxxxxx etc…….

c) The Government shall open a Subsidiary Loan Account on its books in the name of

KWASA. Each part of the Subsidiary Loan shall be deemed to be withdrawn by KWASA

from such Subsidiary Loan Account on the date given in the official payment advice of

the ADB,

d) KWASA shall bear the foreign exchange risk on the Subsidiary Loan.

Section2.02

The business plan shows that the project will not be viable under the standard terms of

the government for loans to WASAs. Concessionary terms are needed and these are

provided by the Government as follows: a) KWASA shall pay to the Government interest

on the principal of the Subsidiary Loan outstanding from time, at the rate of 2% per

annum. Interest on the Subsidiary Loan shall accrue from the respective value dates as

given in the official payment advice of the ADB and shall be computed on the basis of a

360 day year of twelve 30 day months. Interest during the grace period shall be

capitalized.

b) The Term of the Subsidiary Loan shall be thirty (30) years. KWASA shall repay the

Government the principal amount of the Subsidiary Loan in Twenty Two (22) equal

annual installments payable after 8 years grace period. Payment of interest due shall

also commence after the grace period.


3

c) Grace period will commence on the date of the first withdrawal of proceeds from the

Subsidiary Loan.

Section 2.03 KWASA may repay to the Government in advance of maturity any part or all of the

principal amount of the Subsidiary Loan with the interest accrued thereon to the date of

such repayment, without premium or penalty, any such repayment shall be applied pro-

rata to the remaining outstanding installments.

Section 2.04 KWASA shall a) maintain or cause to be maintained records and accounts adequate to

reflect, in accordance with consistently maintained sound accounting principles, the

expenditures financed out of the Subsidiary Loan, and b) have such records and

accounts audited for each fiscal year in accordance with appropriate auditing principles.

ARTICLE-III CONDITIONS FOR WITHDRAWAL AND PROCUREMENT PROCEDURES

Section 3.01 The conditions for withdrawal of funds and procurement procedures applicable under

the Loan Agreement apply to the proceeds of the Subsidiary Loan and procurements

utilizing such funds.

ARTICLE-IV EXECUTION OF THE PROJECT

Section 4.01 KWASA shall perform all of its obligations under the Project Agreement and, to the

extent applicable to it, under the Loan Agreement and carry out the project with due

diligence, efficiency and in conformity with sound administration, financial, engineering

and public utility practice.

Section 4.02 KWASA shall not utilize any part of the proceeds of the Subsidiary Loan or any goods

and services financed out of the proceeds of the Subsidiary Loan for any purpose what

so ever other than exclusively for the carrying out of the project.

Section 4.03 KWASA shall duly perform the obligations, which the Government is obliged to cause

KWASA to comply with under the Loan Agreement to the extent applicable to KWASA.

Section 4.04 The Government shall facilitate the availability of the facilities, services, land and other

resources required by KWASA, in addition to the loan proceeds for carrying out of the

Project in accordance with the Project Agreement.

Section 4.05 The Government shall take all action, which shall be necessary on its part to enable

KWAS to perform its obligations under the Project Agreement and Loan Agreement, and

shall not take any action which would impair the performance of such obligations.

Section 4.06 KWASA shall take all action as shall be necessary on its part to enable the Government

to comply with its obligations under the Loan Agreement in respect of the Project.

Section 4.07 KWASA shall not assign any rights or obligations under this Agreement without the prior

written concurrence of the Government and ADB.


4

ARTICLE-V REMEDIES OFTHE GOVERNMENT

Section 5.01 If any of the following events shall occur and shall continue for the period specified

below, than at any subsequent time during the continuance thereof, the Government,

at its option, may by notice to KWASA declare the principal of the Subsidiary Loan then

outstanding to be due and payable immediately together with the interest and other

charges thereon and upon any such declaration the principal , together with the interest

and other charges thereon, shall become due and payable immediately.

a) A default shall occur in the payment of principal or interest or any other payment

required under the Subsidiary Loan Agreement and such default shall continue for a

period of 30 days;

b) A default shall occur in the performance of any other obligation on the part of

KWASA under this Subsidiary Loan Agreement, and such default shall continue for a

period of sixty days after notice thereof shall have been given by the Government to

KWASA.

ARTICLE-VI EFFECTIVENESS AND TERMINATION

Section 6.01 This Subsidiary Loan Agreement shall come into force and effect on the date on which

the Loan Agreement and Project Agreement shall come into force and effect.

Section 6.02 This Subsidiary Loan Agreement and all obligations of the parties hereunder shall

terminate on the earlier of the following two dates

I. The date on which the Loan Agreement or Project Agreement shall terminate in

accordance with its terms; or

II. A date XX years after the date of this Subsidiary Loan Agreement

ARTICLE-VII GENERAL PROVISIONS AND MISCELLANEOUS

Section 7.01 Any notice or request required or permitted to be given or made under this Subsidiary

Loan Agreement and any Agreement between the parties contemplated by this

Subsidiary Loan Agreement shall be in writing. Such notice or request shall be deemed

to have been duly given or made when it shall be delivered by hand or mail, telegram,

cable, telex or e-mail radiogram to the party to which it is required or permitted to be

given or made at its address hereinafter specified, or at such other such address as such

party shall have designated by notice to the party giving such notice or making such

request. The addresses so specified are as follows:

Managing Director, Khulna Water Supply & Sewerage Authority (KWASA) 1062/1Ka,

Khan-A-Sabur Road, Khulna-9100, Bangladesh.


5

Secretary, Ministry of Finance, Bangladesh Secretariat, Government of the People’s

Republic of Bangladesh.

Section 7.02 No delay in exercising, or omission to exercise, any right, power or remedy accruing to

either party under this Agreement upon any default, shall impair any such right, power

or remedy or be constructed t be a waiver thereof or an acquiescence in such default;

nor shall action or such party in respect to any default, or ay acquiescence in any

default, affect or impair any right, power of remedy of such party in respect of any other

or subsequent default.

IN WITNESS WHEREOF the parties hereto, acting through their representatives thereunto duly

authorized have caused this Subsidiary Loan Agreement to be signed in their respective names as of the

day and year first above written

For and on behalf of

Khulna Water Supply and Sewerage Authority (KWASA)

For and on behalf of

Government of the People’s Republic of Bangladesh


6

Annex 1

NEED FOR CONCESSIONARY LOAN TERMS FOR KWASA

A financial model has been prepared for KWASA taking into account all investment and operational

costs, forecast of production and demand and estimates of revenues to assess the viability of the

proposed investments and KWASA in the long term (FY2012-FY 2030). Financial viability is demonstrated

through the financial projections which show sufficiency of cash to cover operational expenses and debt

service, thereby eliminating the need for government subsidy other than explicit exceptions in initial

years.

A critical assumption in the financial forecasts is that within the period 2011 to 2017, KWASA will be able

to implement a much needed Revenue Improvement Action Plan covering required tariff increases,

increase in number of connections, registration of all illegal connections, conversion from billing per

connection to billing per household, metering of all connections and charging annual fees to owners of

private deep tubewells.

Using these revenue assumptions several scenarios were prepared, considering that 30% of the project

cost will be funded by government equity and 70% through a government loan using standard loan

terms for WASA loans (4% interest per year and 20 years repayment inclusive of a 5 year grace period on

interest and principal repayment). One scenario (Low Tariff Option) show that even with the

implementation of a Revenue Improvement Action Plan, KWASA operations will result in continuous

losses and cash deficits if lower tariffs similar to that implemented in Dhaka WASA (e.g. domestic tariffs

at Tk 6/m3 in real prices) and standard loan terms for WASAs are used.

Another scenario (High Tariff option) explored what level of tariffs will allow KWASA to operate viably at

the standard WASA loan terms. The analysis reveals that a domestic tariff of Tk 26.00/m3 in real prices,

needs to be implemented to avoid losses and cash deficits. This tariff is beyond the willingness to pay of

the project beneficiaries and as a result, a compromise scenario was developed which would try to

protect the interests of the stakeholders. This compromise scenario referred to as the base scenario

requires that at the start of the metering program in 2017, an initial tariff in real prices of Tk 13.00/m3

for domestic connections (Tk 19.21/m3 in 2017 prices) and Tk 26.00/m3 for non domestic connections

(Tk 38.41/m3 in 2017 prices) be implemented. These tariffs and other measures in the revenue

improvement program will result in viable operations of KWASA as follows:

• While some years will result in annual cash deficits, KWASA’s cash balances will generally be

sufficient to cover cash operating and maintenance costs and debt service,

• Operating ratio (Operating and Maintenance Expenses before depreciation divided by Operating

Revenues) shows significant improvement from the current 5.17 to .46 in 2017 when the

metered tariffs are implemented. As a result, net income ratio also improves from 2017

onwards with the implementation of annual tariff increases to keep up with inflation and the

growth in connections.

The base scenario however requires the Government of Bangladesh to provide more concessionary

terms on the loan to KWASA as follows: 2% per annum interest rate and 30 year repayment period

inclusive of an 8 year grace period on interest and principal repayment.

Appendix 4 SECTOR ASSESSMENT

1

SECTOR ASSESSMENT

A. Sector Performance, problem, and opportunities

Bangladesh has become increasingly urbanized since independence in 1971. In 2008 an estimated 36

million people, or 25.0% of the total population, lived in the urban areas. Though urbanization is still

relatively low, population growth in the urban areas has been high, at 6.0% yearly, compared with the

total population growth rate of 1.3%. If this growth is sustained, the country’s urban population will

double to 74 million by 2035, or 40.0% of the total population. The contribution of the urban areas to

GDP grew from 26.0% in FY1973 to 42.0% in FY1999. Rapid urbanization has created growing demand

for urban infrastructure and services.

The development of urban infrastructure has not kept pace with rapid urbanization, causing an acute

shortage in urban services. Piped water is available in only one third of pourashavas, and typically for

only 2–4 hours a day. Water quality in many pourashavas is poor, with high iron content or arsenic

contamination.

After more than 20 years of support for infrastructure development in secondary towns, ADB is now

supporting major investments in Dhaka. The Urban Governance and Infrastructure Improvement Project

is significantly improving basic infrastructure and encouraging beneficiaries to participate in pourashava

(municipality) activities. Among the expected outcomes over the long term is full access by the urban

population to safe water by 2015 and to better sanitation by 2010. ADB projects involving public–private

partnerships (PPPs) in urban primary health care have been effective in delivering basic health services,

particularly to the poor. Multidimensional approaches will have to be taken to strengthen urban

institutions, introduce effective regulations, improve municipal finances, and empower local

governments to use information for the public good.

Wide-ranging reforms by the Government in public financial and fiscal management have resulted in

more effective resource allocation, spending prioritization, and budget execution. The Medium-Term

Budgetary Framework (MTBF) introduced in FY2007 covers 53% of budgetary resources. It seeks to

strengthen fiscal management authority and flexibility, and resource management by the line ministries.

The ministries under the MTBF, however, are still incapable of preparing budgets and spending plans.

Fiscal reporting has been more timely since a web-based integrated budget and accounting system was

introduced. Off-budget activities are limited, but weak implementation capacity is to blame for the

shortfall in capital spending. Further, performance-based budgeting, without quantifiable indicators and

benchmarks, is not fully operational, and government accounting and auditing is not up to international

standards.

Public procurement standards have improved since the passage of the Public Procurement Act of 2006

and the Public Procurement Rules of 2008, and the extensive training of procurement staff. The new

laws, which conform to international best practices, will increase the efficiency and transparency of

resource use in this major area of fiduciary risk in Bangladesh. But to realize the full benefits of the

reforms, capacity constraints must be dealt with and political meddling in public tendering removed.

Greater financial delegation and simplified approval must be accompanied by intensive oversight and


2

more effective accounting and auditing procedures. Procurement must be better managed, and

stronger confidentiality mechanisms need to be in place.

The Anti-Corruption Commission (ACC) has been reorganized, the United Nations Convention Against

Corruption (UNCAC) ratified, ACC legislation amended in line with the UNCAC, asset declaration made a

requisite for public servants and lower-court judges, and grievance handling made part of line-agency

procedures.

The new Right to Information Act should result in a more transparent and accountable government. But

the ACC still lacks the capacity to investigate, conduct surveillance, gather evidence, and prosecute

cases, among other capacity building needs of key institutions.

The Bangladesh National Policy for Safe Water Supply and Sanitation 1998 (NPSWSS 1998) recognizes

water as a social as well as an economic good. The different economic benefits that result from water

and sanitation interventions are direct health benefits such as less expenditure by avoiding diseases,

indirect health benefits such as value of avoided loss of work days and other non-health benefits such as

value of time saved to collect water – these are shown in Table 1 below.

Table 1 Economic benefits arising from water supply and sanitation interventions

Benefits Descriptions

Direct economic

benefits of avoiding

diseases

• Less expenditure on treatment of diseases related to water

and sanitation

• Less expenditure on transportation in seeking treatment

• Less time spent due to treatment seeking

Indirect economic

benefits related to

health improvements

• Value of avoided days loss at work or at school

• Value of avoided time loss of parent or caretakers of sick

children

• Value of economic contribution of a saved life

Non-health benefits • Convenience - time saving related to water collection or

accessing sanitation facility

• Labor saving device in households

• Switch away from more expensive water sources

• Property value rise

• Development of small businesses, improvement to fisheries

and other sectors, such as development in tourism

Source: WHO 2006. Human Development Report: Occasional paper on Economic and Health Effects of increasing

coverage of Low Cost Water and Sanitation Interventions.


3

Bangladesh has made good, if uneven, progress in human development and poverty reduction and

seems likely to achieve several Millennium Development Goals. While income poverty has decreased

steadily, it is still high (40% in 2005), income distribution has not improved, and regional disparities

persist. Child health indicators have improved, with fewer neonatal deaths; maternal mortality,

however, remains high in absolute numbers. Clean drinking water and adequate sanitation are more

accessible, but rapid urbanization is a particular challenge, as is the high incidence of arsenic in the

water table.

For Bangladesh the return on US$ 1 invested on water and sanitation intervention for achieving MDGs

was estimated to be US$ 5.4. The return would be US$ 5.6 for achieving universal coverage. In other

words, the benefits from investments in water and sanitation in Bangladesh would be over five-fold. It

may be noted that, when comparing returns on only water supply and only sanitation, the return on

sanitation is higher than water supply.

B. Government’s Sector Strategy

In 2005, the Local Government Division (LGD), Ministry of Local Government, Rural Development and

Cooperatives (LGRD&C) prepared a ten-year Sector Development Programme (SDP 2005) for the Water

Supply and Sanitation (WSS) sector in Bangladesh.

The Policy Support Unit (PSU) under the LGD initiated revision and updating of the SDP 2005. The SDP

will be for a period of 15 years (FY 2011- 25). The objective of the SDP is to provide a framework for

planning, implementing, coordinating and monitoring all activities in the WSS sector. It is envisaged that

all WSS-related national and sectoral policies and strategies and international commitments will be

aligned with the SDP.

As a strategic planning document, the SDP is expected to address emerging and future challenges of the

WSS sector. The SDP provides a road map for development of the sector and a corresponding sector

investment plan and will be implemented under a Sector Development Framework. The SDP has

assessed existing legal instruments, policies and strategies and recommended specific measures to

streamline and address the gaps.

The government has given high priority to develop the WASAs as efficient agencies and has signed a

Partnership Framework Agreement1 for the three WASAs with Development Partners. The objective of

the Agreement is to address reform issues and to improve and extend water, sanitation, drainage and

waste water services. Under the Framework Agreement the strategies are: i) governance improvement

and organizational development, ii) financial management improvement, and iii) service delivery

improvement and expansion. To support the strategies a policy matrix was prepared to agree on the key

activities and reform milestones, milestones to monitor the progress and the investments to be made by

the government and the Development Partners. Many development activities have already started,

1 Partnership Framework Agreement was signed between Bangladesh Government and Development Partners (ADB, DANIDA, Government of Japan, Government of Korea and World Bank) in 2007 for Dhaka and Chittagong WASAs and amended in 2009 to include Khulna WASA.


4

including feasibility and engineering design, studies for capacity building and financial management and

investments in infrastructure rehabilitation and expansion.

At national level the LGD of the Ministry of LGRD&C is responsible for the overall development of the

WSS sector. DPHE and WASAs are under the administrative control of LGD. DPHE is responsible for

implementation of water supply and sanitation projects in the public sector in rural and in urban areas

outside the areas covered by the WASAs. In addition to DPHE, the Local Government Engineering

Department (LGED), also under the LGD, implements water and drainage projects in urban areas as part

of urban infrastructure development projects. The coordination at the national level between the sector

stakeholders like government agencies, NGOs, DPs and private sector is done by the National Forum for

Water Supply and Sanitation (NFWSS) established in the LGD. The Secretary, LGD, is the chairperson of

the NFWSS.

In rural areas, Water Supply and Sanitation Committees (WATSAN Committees) are established in most

of the Local Government Institutions (LGIs) – Upazila Parishads and Union Parishads. The District level

LGI (Zila Parishad) is not presently functional. DPHE, NGOs and other stakeholders coordinate with the

LGIs and WATSAN Committees to implement development projects.

In urban areas, DPHE was originally responsible for WSS services, but gradually Paurashavas

(Municipalities) and City Corporations are getting more involved in planning, implementation and

management of the water systems. WASAs were established in 1963 in Dhaka and Chittagong cities,

being responsible for water supply, sewerage and drainage. Since 1990 Dhaka WASA’s coverage

extended to Narayanganj Town. In 2008 Khulna WASA was created.

The National Strategy for Urban Water Supply and Sanitation will delineate the roles and responsibilities

of LGD, DPHE, LGED, WASAs, City Corporations and Paurashavas, private sector and NGOs for

development of the WSS sector. It will outline a reform and capacity building agenda with milestones.

Some of the elements of the strategy are general, applicable to all urban areas, while others are specific

to WASAs, City Corporations and Paurashavas. These are given below.

General:

1. Take immediate measures to improve the operational and management efficiencies by: i) reducing

the unaccounted for water to at least 25 % by 2015 and 20% by 2020, ii) identifying and taking

actions against illegal connections, leakage and waste control, iii) replacing old and defective

pipelines, and iv)introducing distribution zone management, including installation of bulk meters at

sources and zones

2. Give special attention to address the needs of the low income communities

3. Install water meters to all customers and establish progressive water tariffs that reflect the true

costs of services, while providing safety net for the poor

4. Ensure application of the IEC Guidelines for WASH Promotion by all sector partners


5

5. Carry out R&D to develop appropriate technologies to address the diversified needs

6. Set up monitoring and coordination mechanism at community, local government and central levels

7. Build capacities of sector institutions and communities to protect environment, adapt to climate

change and build resilience for disaster management

8. Support and encourage private sector to take up greater role in future

WASA Specific:

1. Implement the Partnership Framework to strengthen governance and organization structure,

improve financial management capacity and sustain service delivery.

City Corporations and Paurashavas Specific:

1. Develop a database by conducting a baseline survey and regularly update it

2. Establish a dedicated “Fund” for development of WSS services, which could be accessed based on

their performance

3. Support provided by DPHE to the City Corporations and Paurashavas to i) Prepare master plans,

including land use plan, ii) build operational and financial management capacities, iii) install water

meters, iv) repair pipelines, control wastage and leakage and upgrade the water supply systems, v)

develop consumer care and customer relationship, and vi) improve management of sludge from

septic tanks and pit latrines

The benefits of private sector participation in WSS sector include (i) mobilizing private resource to the

sector to meet growing investments needs, (ii) competition because of the entry of more investors, (iii)

increased innovation and efficiency, (iv) lower prices, and (iv) universal coverage.

At present there is no major large scale private sector participation in management of WSS services in

urban areas. In Dhaka, billing and collection contracts awarded by DWASA to private firms for some

areas have met with varied success. DWASA is also exploring the potential viability of management

contracts for the operations and maintenance of District Metered Areas (DMA). In 2005 Faridpur

municipality made a 3-year service contract with a local private operator for billing and collection.

Although the revenue collection improved, the contract was not extended by the municipalities for a

variety of reasons.

Private sector participation models for urban utilities range from simple service contracts and

management contracts to advanced types like Build Operate and Transfer (BOT) and concessions. The

NPSWSS encourages promotion of private sector participation in urban water supply by Build Operate

and Owned (BOO)/BOT. The Public Private Partnership (PPP) (with Foreign Direct Investment, FDI) is

regulated by the Bangladesh Private Sector Infrastructure Guidelines (BPSIG) 2004 where water and

sanitation is one of the eligible sectors. Private Infrastructure Committee (PICOM) does the listing,

processing and monitoring of PPP projects. The government has attached high priority to PPP


6

development and in June 2009 the Finance Division published a Position Paper titled “Invigorating

Investment initiative through Public-Private Partnership”. Studies have shown that there is a good

potential for PPP in the WSS sector in Bangladesh2. However the country investment environment is not

very conducive to advanced types of PPP. The prospect of FDI is low unless investors are supported by

solid guarantees and financial support from international financers. Initially PPPs should be based on

local private sector models (Local PPP Models). With gradual building up of PPP experiences, higher

forms of PPP, including attracting private capital, would be possible. It is also suggested that any PPP

development be implemented as a Tripartite Partnership, or TPP (B

Role and capacity of KWASA, the critical areas for developing capacity, and the commitment to

institutional reform;

WASAs were first established to address the WSS needs of large cities. The intention was to operate the

organizations under different laws because the public law was considered not to have the flexibility to

operate utilities under commercial practices. However the management was by government appointed

staff and functioned under mostly the public rules and regulation and as such the desired commercial

efficiency did not materialized. In order to face the growing needs, WASA Acts was enacted in 1996 to

give more autonomy in its operations by establishing WASA Board consisting of members representing

different stakeholders. Till now only the top management, i.e. the Managing Director and the Deputy

Managing Director are recruited from outside the organizations on commercial terms and conditions.

There is a need for the institutional reforms that have been started to continue in order that the WASA’s

can function as commercial entities.

The present and future major functions of the WASAs are shown below; support will be required in

developing WASA capacity for future functions.

Present Functions Future Function

• Operations of the

WASAs which needs

improvements in

technical and financial

matters.

• Provide WSS services in accordance to the quality and

service standards set by LGD/Water Regulatory

Commission.

• Ensure customer care and services to the disadvantageous

communities.

• Operate the water supply section (and conservancy section)

following sound technical and commercial practices.

• Partner with private sector and NGOs in some service

delivery.

2 Inventory of Possibilities of Involving the Private Sector in Water Supply and Sanitation Services in Bangladesh by

Royal Netherlands Embassy, Dhaka, April 2006


7

Capacity building plan of WASAs and their staff

The Bangladesh Government and some Development Partners (ADB, DANIDA, GOJ, ROK and WB) has

already prepared a Partnership Framework with agreed investment plans and action plans including

improvement of the organizational structure, technical improvement and financial management. A

policy matrix is prepared with timeframe to implement and monitor the agreed actions. In this context it

is suggested to follow the agreed Partnership Framework.

C. ADB’s and JICA’s sector experience and assistance program

ADB is a lead agency in urban development in Bangladesh, actively supporting development initiatives

for both policy reform and capital investment. The first Urban Governance and Infrastructure

Improvement Project (UGIIP-I) introduced performance-based allocation of investment funds as an

incentive for municipal governance reform. ADB has been supporting sector reforms in urban

development such as the development of sector policy and 32 Related national policies include the

National Policy of Arsenic Mitigation (2004), with focus on arsenic contamination of water sources, and

the National Water Management Plan (2004), giving broad directions for water resources management.

The Dhaka Water Supply Sector Development Program supports policy reforms in the urban water and

sanitation sector.

Given the low capacity of the pourashavas and government agencies, effective and sustainable sector

development demands institutional reform and capacity development along with capital investments.

Progress in policy and institutional reforms has been slow. Long-term engagement and substantial

support is needed to materialize and further institutionalize tangible changes in sector governance and

management.

Role of Other Development Partners in the Sector

The major development partners in urban water supply and sanitation are the signatories of the joint-

partnership framework—the World Bank, the Governments of Japan and Korea, and Danida. The World

Bank supports sewerage and drainage in Dhaka, and is considering extending its support in Chittagong.

The Government of Japan is active in the water supply sector of Chittagong. Danida is funding a new

surface-water treatment plant in Dhaka, and will also provide support to develop and update the SDP-

WSSB.

The World Bank supports infrastructure development and the capacity building of pourashavas; DFID,

UNDP, and UNICEF, the improvement of urban slums; JICA, solid waste management in Dhaka; and KfW

and GTZ, urban development as cofinanciers of UGIIP-II.


8

Intended Sector Outcomes and Key Outputs Supported by ADB

The Government’s target is full coverage of the urban population for safe water by 2015, and for

sanitation by 2010. To effectively expand coverage, sector performance and governance must improve.

The Government will implement a series of sector reforms, particularly the financial sustainability and

autonomy of urban water entities.

Sector outcomes for urban development are improved access to municipal infrastructure and services,

and improved municipal governance. The improvements in municipal governance include the

strengthening of the national policy framework and the introduction of actual changes in municipal

governance to ensure the participation of citizens.

Links to Country Partnership Strategy (CPS) Outcomes and Other Sectors and Themes

Improved access to urban water supply and sanitation, and other municipal infrastructure and services,

directly supports one of the CPS outcomes: social development. Better access to and availability of

urban infrastructure will help achieve another CPS outcome - economic growth through local economic

activities. Sector reforms in water utilities and municipalities will contribute to the good-governance

outcome. Improvement of urban infrastructure, in particular sanitation and solid waste management,

will contribute directly to improving the environment. Local governance reform under UGIIP-I and

UGIIP-II will strengthen the inclusion and mainstreaming of the poor and women.

ADB will continue supporting sector reform in Dhaka and the pourashavas as the leading development

partner, and will sustain its support for the expansion of access to safe water and sanitation through

capital investment and sector reform. ADB will consider supporting the augmentation of production

capacity from surface water to avoid over extraction of groundwater, after the ongoing rehabilitation of

distribution networks. It will also explore PPP modalities in the urban water supply sector.

Through capital investment and sector reform, ADB will continue to assist the Government in expanding

access to municipal infrastructure and services in pourashavas, including municipal transport, drainage,

water supply, sanitation, solid waste management, and other urban infrastructure services with

significant impact on urban public and environmental health. ADB will also continue supporting the

Government in strengthening national policy frameworks and local governance reforms. In particular,

ADB will support the finalization and operationalization of the Urban Sector Policy of Bangladesh, and

will expand its support for participatory local governance reform through performance-based allocation

under UGIIP-II.

Further, ADB will develop a new approach to urban development, centered on its potential to lead to

economic growth and employment generation. New interventions may cover larger metropolitan areas

and entail cohesive regional development planning based on a strategic assessment of growth potential.

Considering the high vulnerability of Bangladesh to climate change, ADB will incorporate climate-change

risks into the planning and design of urban development projects, as appropriate. The possibility of


9

adopting and disseminating energy-saving lighting technology and recovering landfill methane emissions

from waste will also be explored in such subsectors

ADB proposed country operations for 2010–2012 are consistent with the CPS strategies and operational

priorities. The proposed operations take into account potential risks identified in the CPS, including

possible slippages in reforms, a slowdown in government revenue collection, which could constrain the

Government’s ability to finance essential public spending on infrastructure and social sector programs,

and the still weak implementation capacity in some agencies. The recurrence of natural disasters is also

a major risk; in line with the CPS, this risk is being addressed through the mainstreaming of climate

change in all Asian Development Bank (ADB)–supported development projects. In 2010–2012, ADB is

expected to continue to play a major role in supporting investment and policy and institutional reforms

in energy and power, transport, education, and integrated urban infrastructure (including water supply

and sanitation). Given the unfolding effects of the global economic slowdown on the Bangladesh

economy, especially on government revenues, ADB in 2009 processed a quick-disbursing public

expenditure support facility to help the Government strengthen social safety nets and sustain its

infrastructure investment program. ADB is also processing a countercyclical support facility to help the

Government implement its countercyclical development program announced in the FY2010 budget.

ADB will continue integrating governance concerns into its sector operations as well as its support for

building local government capacity to plan and deliver services, urban primary health care, and

participatory water management, as well as rural development. In view of the success of earlier

programs, ADB will consider providing further assistance to improve core governance through programs

to combat corruption, improve access to justice, and move ahead with civil service reform, and to

develop the small and medium-sized enterprise sector. Considering the emerging concerns and impact,

ADB will also scale up support for enhancing the Government’s preparedness to cope with the effects of

climate change. To effectively deliver development results, ADB will seek to strengthen cooperation

with the development partners, mobilize greater cofinancing, catalyze private sector and civil society

involvement in development activities, promote public–private partnerships, further improve portfolio

performance, and enhance sub-regional cooperation.

The 2009–2010 biennial performance-based Asian Development Fund (ADF) allocation available for

Bangladesh is $725.28 million or $362.6 (approx.) per year. For 2011 and 2012, $363 million in ADF is

available for each year. The proposed allocations from ordinary capital resources (OCR), including multi-

tranche financing facility (MFF) subprojects, are: $500 million for 2010, $400 million for 2011, and $400

million for 2012. With a debt service ratio of 3.2% and a ratio of external debt to gross domestic product

(GDP) of 25.5% in FY2008, the risk of external debt distress for Bangladesh is low.

ADB’s proposed technical assistance (TA) program averages about $6.2 million per year for 2010–2012.

Additional grant cofinancing will also be sought to augment support for governance improvement,

institutional capacity building, sequencing of key sector reforms, promotion of private sector

participation in infrastructure development, and regional cooperation.

Appendix 5 SOCIAL ASSESSMENT REPORT

1

Acronyms

ADB Asian Development Bank

CBO Community Based Organization

CDC Community Development Center

CDO Community Development Organizer

DWASA Dhaka Water and Sanitation

CWASA Chittagong Water and Sanitation

CPP Consultation Participatory Plan

GO Government Organization

GOB Government of Bangladesh

GAP Gender Action Plan

JICA Japan International cooperation Agency

LIC Low Income Community

LPUPP Local People Urban Partnership Project

KCC Khulna City Corporation

KWASA Khulna Water Supply and Sanitation

PRS Poverty Reduction Strategy

UPPRP Urban Partnership on Poverty Reduction Project


2

Appendices

Appendix 1 Poverty Reduction Strategy (PRS)

Appendix 2 Gender Action Plan (GAP)

Appendix 3 Consultation and Participation Plan (CPP)

Appendix 4 Documentation of FGD Proceedings

Appendix 4.1 Attendance of FGD Participants

Appendix 4.2 Questionnaire used in FGD

Appendix 5 List of NGOs

Appendix 6 List of Persons Met

Tables

Table 2.1: Sources of Domestic Water of Khulna Respondents - Overall

Table 2.2: Major Source(s) of Drinking Water

Table 2.3 Household consumption and Cost of water (m3)

Table 2.4 Willingness to connect and pay (HHs with connection)

Table 2.5 Willingness to connect and pay (HHs without connection)

Table 3.1 Land Use, KCC area, 1999

Table 3.2 Population Size and Number of Household, 2001, 2009 & 2010, Khulna City

Table 3.3 Comparative Results on Categories of Households

Table 3.4 Basic information by Categories on Households

Table 3.5 Gender and Education of Adult Household Members

Table 3.6 Sources of Income

Table 3.7 Occupation

Table 3.8 Average Monthly Expenses (Taka)

Table 3.9 Sanitation Facilities

Table 4.1 Gender Issues and Mitigation Measures

Figures

Figure 2.1 Availability of Water

Figure 2.2 Is Water Boiled or Filtered

Figure 2.3 Connected to KWASA Piped Water


Figure 2.5 Perception on Cost of KWASA Piped Water

Figure 2.6 Households Using Public Hand Tube Well

Figure 2.7 Perception on Cost and Availability of Water on Public Tube Well

Figure 2.8 Households Using Private Hand Tube Well

Figure 2.9 Perception on Cost and Availability of Private Tube Well


3

1. INTRODUCTION

1.1 Background

There is a growing demand for safe and affordable water in Khulna. While there are various sources

available, these are not sufficient to meet the populations’ demand for water. The current sources are

not sufficient and only 18% of total 1 million populations in the City have access to piped water supply

and the rest resorts to alternative water sources such as river, pond and shallow tube well etc. Shallow

tube well water often contains significant salinity. Recognising the challenges, the Government of

Bangladesh established a separate and independent Khulna Water Supply and Sewerage Authority

(KWASA) in February 2008. KWASA, which is the third WASA in the country established following the

DWASA and CWASA. While the KWASA was established legally, substantial work was required to

develop it into a capable water utility with proper corporate governance, competent human resources,

and effective financial management.

ADB initiated support to the KWASA through SSTA: Supporting the establishment of KWASA (the SSTA),

approved in December 2008. During the SSTA, a unified policy matrix was developed as the road map

for reform and development partner’s support based on which Japan International Cooperation Agency

(JICA) is currently funding a feasibility study in KWASA looking at all aspects of the investment. It is

principally agreed that JICA will fund infrastructure from raw water intake to water treatment plant

outlet and ADB will fund the investment in distribution, storage.

Technical assistance is now being carried out to KWASA through ADB TA 7385 BAN in order to develop

KWASA institutional capacity and project proposal for future investment.

1.2 Project Components

The two major components of the TA are:

Component 1: Preparation of the Institutional Development Plan – This involves the development of a

comprehensive institutional strengthening program for KWASA that will be stated in the form of a 5-

year Business Plan. The key elements of the IDP include:

Recommended organizational structure at different stages of KWASA development:

• Training needs assessment and capacity building plan;

• Operational expenditure plan based on forecast development of KWASA;

• Investment Plan, which also accounts for KWASA investment requirements;

• Annual performance targets based on the period covered in the Business Plan;

• Support to KWASA in the preparation, design and implementation of interim projects funded by

GOB.

To achieve the expected outputs of the various elements of the IDP, details of work plan and strategies

to be pursued are laid out by the Consultant.


4

Component 2: Preparation of the Project Proposal – This involves the preparation of a project proposal

for ADB investment in Khulna Water Supply System. Based on the evaluation of the design options

developed by the JICA study team and other consultants recruited under this TA, the project proposal

will include alternative design options if appropriate and may identify additional investment

requirements if relevant.

The proposal will be assessed based on the safeguard measures required by the ADB and the GOB.

Accordingly, this section of the Report discusses the outcome of the social assessments undertaken and

the various mitigating measures proposed to address the social safeguard requirements.

1.3 Project Stakeholders and Beneficiaries

The Project stakeholders and beneficiaries are as follows:

• Financing and donor institutions

• Government sector – KWASA, KCC, Local Government Division of the Ministry of Local

Government Rural Development and Cooperatives, Department of Environment under the

Ministry of Environment and Forest

• Private sector including industrial, commercial/business and institutional groups

• Consumer Public including the poor households in low-income and slum areas of KCC, and

• NGOs, CBOs and women organizations

1.4 ADB’s Guidelines for incorporation of social dimension

The social viability, acceptability and sustainability are the elements that are considered in this study.

This was achieved by following the Asian Development Bank’s guidelines on social dimension which

require appropriate consultation with various stakeholders. The policy of ADB on social dimension which

were utilized in the social analysis of the KWASA project include:

(i) Identification of Project beneficiaries

(ii) Identifying the needs and demands of the beneficiaries

(iii) Assessment of Project Impacts and Benefits

(ii) Addressing poverty issue as a result of project

(iii) Enhancing the role of women

(iv) Preserving and protecting the interest of the minorities

(v) Community participation in development project

1.5 Objectives and Methodology

1.5.1 Objectives of the Social, Poverty and Gender Assessment

This Social and Poverty Assessment (SPA) provides the assessment of risks and mitigation measures and

potential benefits resulting from the planned rehabilitation and upgrading of Khulna Water Supply

Project. Based on the Consultant’s terms of reference (TOR), the following tasks are to be undertaken as

part of this SPA:

• Conduct of focus group discussions to determine access to water and sanitation of consumers

especially the low income groups and liaise with potential partners in Project implementation;


5

• Assist GOB establish consultation and participatory processes, identify and consult stakeholders

and incorporate needs in the project or parallel initiatives;

• Propose appropriate water supply facilities for low income areas and study options for low cost

connections for the poor;

• Formulate a Gender Action Plan as part of gender inclusive development; and

• Address other social safeguards requirements of the Project.

1.5.2 Methodology and Scope of the Assessment

Several methods were utilized to accomplish the requirements for social study. These include the

following:

a) Review and Update of Previous Social and Poverty Assessment Documents

A desk study and review of related literatures and documents were done. These included past and

current survey such as:

(i) Consumer Survey Report, 2009

(ii) Consumers Census, 2010

The 2009 Consumer Survey undertook a comprehensive assessment including a review of the

affordability and willingness to pay of 3006 sample households who were connected and not connected

to the KWASA water supply system.

Using the raw data of the Consumer’s Survey, this was further processed to segregate and analyze

various categories of households and determine the characteristics, levels of affordability and willingness

to pay of the low-income households.

Additional information made use of the current Consumer’s Census in Khulna City (2010) covering

around 51,370 households, to validate and compare the results of both studies.

b) Focus Group Discussions

To reinforce the findings of the reviews, focus group discussions were conducted in 12 wards,

participated by over 400 participants, including women from slums and low-income areas. The FGD is a

powerful tool to gather both qualitative and quantitative data on the water situation in the area, and to

determine strategies for ensuring the inclusion of the vulnerable groups in the Project coverage. A

separate report in the FGD exercise is attached as Appendix 4.

(c) Key Informants’ Interview

Key informants included heads of agencies, female headed households, community residents, CDC

leaders, community facilitators and organizers. Data obtained qualitative perceptions on the current

water sources, poverty alleviation programs and current activities undertaken for the community

including women. While KWASA has the primary responsibility for the Project, relevant stakeholders in

the low- income communities including local governments, NGOs and CBOs were also consulted to

identify initiatives which are able to complement the Project. A list of persons met is provided as

Appendix 6.


6

c) Assessment of Project Impacts

Using the data from the above activities, a social and poverty assessment (SPA) was prepared which are

discussed in details in the preceding Sections, which include data on sample households, poverty profile,

economic activity, access and constraints to access WSS (availability, affordability), health and other

services. An important element of the profile is the description of the poor, i.e. identification of sub-

groups within the poor (the poorest, the vulnerable poor and the transitional poor) and whether

minority groups, female-headed households, or the slum residents are disproportionately represented.

The output of the SPA formed the basis in drawing out appropriate recommendations and strategies to

enhance the sustainability of access to water by the poor. The recommended strategies and programs

have been drawn accompanying the SPA which include the following documents:

(i) Appendix 1 Poverty Reduction and Social Strategy

(ii) Appendix 2 Gender Action Plan

(iii) Appendix 3 Consultation and Participatory Plan


7

2. OVERVIEW OF THE WATER SECTOR

2.1 Coverage and Current Sources of Water Supply in KCC

KWASA water supply system services serves approximately 25% of the population. These include water

users using piped water (18%) public tap (1%), and non-revenue water (6%). On the other hand, hand

pump tube wells supply water to approximately 30.1%, private tube wells for approximately 44% and

pond/river to about 2%. Based on the Consumer Survey result, there is only a very small proportion of

the population using water vendors as their main source of water.

The Consumers Survey showed that water supply sources of surveyed households (3006) include piped

connection (KWASA) 19.4%, hand pump tube well (KWASA) (39.4), street hydrants/public taps (KWASA),

private tube wells, (31.9%) water vendors (0.7%) pond canals and rivers, (1.4%)

Table 2.1: Sources of Domestic Water of Khulna Respondents - Overall

Source Piped

water

Public

tube

well

Private

tube

well

Stand

Pipe

Water

vendor

River,

pond

Other

sources

% Respondents 19.4% 39.4.1% 31.9 0.2 0.7 6.9 1.4 Source: Md. Wahiduzzaman, Water Consumer Survey in Khulna City – TA 7223 BAN: Establishing the Khulna Water

Supply and Sewerage Authority, August 2009.

The Consumers survey also showed that drinking water is sourced by the majority from public hand tube

well (59.1%) and private tube well (38.45). Only 0.2% use the KWASA piped water for drinking.

Table 2.2: Major Source(s) of Drinking Water by Sample Households

Source KWASA

Piped water

Public hand

pump tube well

Private

tube well

Water

vendor

Other

sources

% Respondents 0.2 59.1 38.4 1.1 1.2 Source: Md. Wahiduzzaman, Water Consumer Survey in Khulna City – TA 7223 BAN: Establishing the Khulna Water

Supply and Sewerage Authority, August 2009

2.2 Community Perceptions and Views on Current Water sources

2.2.1 Water Quality and Availability

Households utilize one or more sources of water wherever is accessible. The KWASA hand pump tube

wells are considered as an essential major source of drinking water among the surveyed households.

The public hand pump tube well is generally utilized by the majority (62%) extreme poor households,

63% of the poor households and 55% above poor. Both extreme poor and poor households likewise

utilize private tube wells. Overall, 94% of households affirmed the quality of water is fit for drinking and

is abundant throughout the year. There is no need to boil water for drinking according to 96% of all

households.


8


Figure 2.2 Is Water Boiled or Filtered?

2.2.2 Households Connected to Piped Water (913)

Of the 3006 households surveyed, only 913 (30%) households have got connections to piped water. Of

913 households, 64 households (07%) belong to extreme poor, 376 (41%) poor and 52% (473) are above

poor. This finding reveals extreme poor and poor households have very low access to piped water.

Figure 2.3 Connected to KWASA Piped Water

94%94%

4% 2%

94%

5%1%

0

20

40

60

80

100

Abundant Seasonal Scarce

Extreme poor 351

Poor 1343

Above Poor 1312

99% 97% 92%

0

20

40

60

80

100

120

351 1343 1312

Extreme poor Poor Above Poor

No

yes

82

1828

36

0

20

40

60

80

100

351 1343 1312


No

yes

Appendix 5 SOCIAL ASSESSMENT RE

Several reasons were cited for not getting connected to piped water such as distance of the house to the

network (69%) and, (ii) poor quality of water which is viewed by 71% of the respondents. As to the

availability of water, respondents complain that KWA

extreme poor and (77%) of poor households. The FGD results also affirmed that there is constant low

pressure on water thus supply is not sufficient. Overall, views on KWASA piped water is considered as

poor.

Figure

KWASA piped water is cheaper compared to public and private tube wells according to majority of

households, and they are generally willing to get connected to the network.

sharing the cost and spends Tk 69.38 per month for each connection.

as affordable and fair, although some 47% of the poor thinks that piped water is somewhat expensive.

Figure 2.5 Perception on

2.2.3 Households using public hand tube

Of the 3006 households, 1852 (62%) households are using public tube well. Of this, 244 HHs (13%)

comprise of extreme poor and 857HHs (46%) are poor. About 751 HHs (41%) of the above poor also use

this facility. The use of public hand tube wells is

57% above non poor households. Extreme poor households have higher consumption of about 10.8

cubic meters per month, while 8.41 cubic meters per month for the poor and 5.27 cubic meters per

month for the above poor. This is expected as average household among extrem

compared to poor households (5.8).

0

20

40

60

80

100

64

Extreme poor

84%

16%

28%

41%

36

0

10

20

30

40

50

60

Cheap

SOCIAL ASSESSMENT REPORT



availability of water, respondents complain that KWASA piped water is insufficient according to 84% of



Figure 2.4 Availability of Piped Water


are generally willing to get connected to the network. An average of 1.9 families is

sharing the cost and spends Tk 69.38 per month for each connection. This is viewed by the respondents

ome 47% of the poor thinks that piped water is somewhat expensive.

Figure 2.5 Perception on Cost of KWASA Piped Water

using public hand tube well (1852 respondents)



public hand tube wells is popular among 70% of the extreme poor

non poor households. Extreme poor households have higher consumption of about 10.8


. This is expected as average household among extreme poor is higher (7.2)

compared to poor households (5.8). Likewise, there is no limit in drawing water from public tube wells

376 473


77%70%

16%23%

30% Insufficient

Sufficient

48%

23%

45%47%

3647%

17%

Fair Expensive

Extreme poor 64

Poor 376

Above Poor 473

9



SA piped water is insufficient according to 84% of




An average of 1.9 families is

his is viewed by the respondents

ome 47% of the poor thinks that piped water is somewhat expensive.



of the extreme poor, 64% poor and

non poor households. Extreme poor households have higher consumption of about 10.8


e poor is higher (7.2)

Likewise, there is no limit in drawing water from public tube wells


10

Cost of water varies depending on consumption. Overall, the average cost of water from hand pump

tube well is about Tk 8.16 per cubic meter.

Figure 2.6 HHs Using Public Hand Tube Well

As to perception on the quality of water, 90% in all categories claimed that water from public hand

pump tube well is sufficient for their needs. The FGD result cited several advantages of public hand

pump; i.e., accessible, convenient and affordable, particularly for the extreme poor. Distance of water to

households is less than 50 meters and this affords convenience. This implies that more productive tasks

could be accomplished due to savings on time for fetching water from tube wells. Extreme poor

households are greatly benefited in terms of convenience and savings of time as the majority (88%) of

the extreme poor and 67% of the poor fetch water by themselves. On the other hand, 66% of the above

poor can afford to hire domestic helper or contract supplier. Overall perception on the water quality is

good as signified by 88% of the respondents.

Figure 2.7 Perception on Cost and Availability of Water on Public Tube Well

2.2.4 HHs using private hand tube well (1500 respondents)

Water users of private hand tube well comprise 50% of the surveyed 3006 households, Of the 1500

water users, very few 127 (9%) comprise of extreme poor, 648 (43%) poor households. The majority 725

(48%) are above poor.

The majority 96% of the respondents from all categories affirmed that there is sufficient water in private

hand tube wells that meets their demand. Water from private hand tube wells is perceived as cheap by

30%36%

43%

70%64%

57%

01020304050607080

351 1343 1312


No

Yes

89%

4% 7%

86%

14%

76%

16%7%

92%

8%

52%

31%

17%

91%

9%

0

20

40

60

80

100

Extreme poor 244

Poor 857

Above Poor 751

Appendix 5 SOCIAL ASSESSMENT RE

the majority of water users. Views on water

there are private tube wells that have been installed for over 10 years ago, thus, water quality is not so

good, with suspected iron content and saline taste.

Figure 2.8 Households using private hand tube well

According to some households, the cost of installing a private tube well varies which ranges from over

10 thousand Taka to less than 22000 Taka, dependi

Figure 2.9 Perception

2.3 Unit Cost and Water Consumption of HHs

The consumption and cost of water varies by sources. Table 3.3 provides a general picture of the

consumption and cost by various sources.

Piped water

Families connected to piped water generally consume an average of 20.6 m3/month with an average

cost of Tk68/month. This gives a unit cost of 3.4 taka per m/3. Given an

extreme poor indicates about 94.9

average family size of the poor and above poor is 5.84 and 4.59 respectively. Overall, average

consumption on piped water gives an average of 120l/c/day.

0

20

40

60

80

351

Extreme poor

64%

96%

2

93%

2

92%

0

20

40

60

80

100

120

SOCIAL ASSESSMENT REPORT

the majority of water users. Views on water quality is generally good and fair although some claims that


nt and saline taste.

.8 Households using private hand tube well

households, the cost of installing a private tube well varies which ranges from over

10 thousand Taka to less than 22000 Taka, depending on the brand and depth of installation.

2.9 Perception on cost and availability of private tube well

Consumption of HHs


consumption and cost by various sources.


Tk68/month. This gives a unit cost of 3.4 taka per m/3. Given an average family

about 94.9 l/c/d, 117l/c/d for poor and 149 l/c/d for the above poor. The


consumption on piped water gives an average of 120l/c/day.

351 1343 1312


64%52%

45%36%

48%55%

No

Yes

2 5

95%

4 4

96%

4 7 3

97%

Extreme poor 127

Poor 648

Above Poor 725

11

is generally good and fair although some claims that


households, the cost of installing a private tube well varies which ranges from over

ng on the brand and depth of installation.



average family size of 7.23 for

l/c/d, 117l/c/d for poor and 149 l/c/d for the above poor. The


Extreme poor 127

Above Poor 725


12

Public tube well

On the other hand households using public tube wells consume lower compared to other sources, with

an average consumption of 7.5m3/month. Given an average size of 7.24 for extreme poor and 5.84 for

poor households give a consumption of 34.5 l/c/day for extreme poor and 42 l/c/day for the poor.

The cost of water of public tube well is generally free, however some households (2%) pay for water

carrier costing them an average of Tk 123/month for 7.5m3 which gives a unit cost of Tk 16.4/m3.

Private tube well

Households using private tube well consume as much as households using piped water with an average

of 19.9 m3 per month, at an average cost of Tk 133 per month. The unit cost of private tube well is Tk

6.7/m3. This amount is paid to owners of private tube well.

Overall, the Consumer’s survey indicated that water consumption from private tube and piped water is

higher than public tube well. In contrast, the cost of private tube well Tk 6.7/m3) is less than public tube

well (Tk 16.4/m3), the latter having higher volume of water. The difference in cost is due to distance of

most public hand pumps from the residence, compelling some households to hire a water carrier. The

difference on the volume of water taken from public water is also less compared to private tube well.

Women generally fetch water and could not carry much, so this explains why the volume of water

consumption from public tube well is less than volume of water consumption from private tube well. In

addition, private tube wells are nearer to most households, facilitating easier access.

Water Vendor

Cost of water vendor is high as expected. Some households consume an average of 2.6m3/month with

an average cost of about Tk194. Unit cost of water from vendors is Tk74.6 per m3.

Majority (90%) of the extreme poor and 87% of poor households, including 58% of the non poor fetch

water by themselves. By doing so, instead of paying for water carrier, households utilizing public tube

well have a guaranteed savings of about Tk123/month which can be used for other needs. Given the

above scenario implies that in order to convince households to connect to piped water would require

intensive social preparation and marketing. Households have very low assessment on the current

KWASA services and this would defer people’s willingness to connect to services. However, if people are

assured of the quality and continuous supply of safe water, they would be willing to invest.

Table 2.3 Household consumption and Cost of water (m3)

Source of Water No. Of

Volume / Month

m3

Cost /Month

Taka

Unit Cost

Taka/m3

Piped 913 20.6 68 3.4

Public Tube well 1852 7.5 123 16.4

Private Tube well 1500 19.9 133 6.7


13

Source of Water No. Of

Volume / Month

m3

Cost /Month

Taka

Unit Cost

Taka/m3

Water Vendor 34 2.6 194 74.6

Other Source 6.0 158 26.3

Public Tap 4.7 0 -

Overall findings show that the pattern of consumption between the extreme poor, poor and above poor

varies. Above poor have higher consumption level due to various factors like having a car to wash,

maintaining a garden, flush toilets, laundry which could readily consume over 120 l/c/d. On the other

hand, the poor and extreme poor do not have the luxury that above poor has, thus having less

consumption. Low income people are forced to limit consumption because of the lack of an interior

plumbing system and an ability to dispose of waste water created by uncontrolled consumption.

2.4 Affordability and Willingness to pay

(i) HHs with connections

The consumer’s survey showed that households’ budget for water represents only 1% of the

households’ expenditures. Cost of water paid by extreme poor currently is only Tk126 per month, while

poor households pay Tk118/month and the above poor pay Tk139/month. Applying an average to these

values gives about Tk127/month for a 20m3/month of piped water.

With regards to willingness to pay, the survey showed that a high percentage from the majority of the

extreme poor (87%), poor (96%) of the above poor (97%) are willing to pay about Tk 100/month.

However, since water is viewed as an important commodity of the household, there is still signified

willingness to pay to maintain connection up to Tk200 per month as declared by 70% of the extreme

poor, 71% of the poor and 75% of the above poor. At Tk300 per month, the willingness to pay gradually

drops down by 24% particularly from the extreme poor and poor households. As the water tariff goes

higher, (Tk 400-500) the willingness to pay significantly drops down and the majority would rather

resolve to disconnection.


14

Table 2.4 Willingness to connect and pay (HHs with connection)

Taka Variables Sample

Extreme

poor Poor Above Poor

10

0 Disconnect to avoid the bill 8 2 13% 2 3% 4 4%

Stay connected and pay the

bill 179

13 87%

71 97%

95 96%

20



bill 130

7 70%

55 71%

68 75%

30

0

Disconnect to avoid the bill 91

7 54%

42 62%

42 40%


bill 94

6 46%

26 38%

62 60%

40



bill 63

0 0%

19 24%

44 46%

50



bill 55

2 14%

18 23%

35 41%

913 64 376 473

The overall findings show that households of all categories are generally willing to increase their budget

for water up to an average Tk 200/month. Applying this amount to an average consumption of

20m3/month gives about Tk10/m3. This amount is reasonably affordable to the majority 70% of

households in all categories.

(ii) HHs without connection

Households not presently connected to piped water were asked on their willingness to pay for water at

various range and different amount of connection fee and corresponding water bill. The Consumers

Survey results showed that for a connection fee of TK1,000 and TK 100 water bill; 60% of extreme poor,

59% of the poor and 83% of the above poor are willing to pay the proposed amount. Some 56% of poor

and 60% of the above poor are still willing to pay Tk200. The percentage goes lower as the cost

increases from 300 to 500 Taka.

For a connection fee of 3,000 taka and 100 taka water bill, the willingness to pay among extreme poor

households significantly drops down to 29%, while the poor (61%) and above poor (65%) have

consistently maintained their willingness to connect and pay. As the water bill goes up to Tk300 -Tk500,

the percentage among all categories decreased by almost 40%.

For a connection fee of 5,000 and water bill at 100 Taka, the poor (60%) as well as the above poor (71%)

are still willing to pay. Only 29% of the extreme poor signified their willingness to pay.

Overall, this findings show that for a one time connection fee of Tk 1,000 and Tk100 water bill, there is a

high assurance of willingness to connect and pay from all categories of household. Although water bill

extending up to Tk 200 is still affordable to 56% poor and 60% above poor this amount is no longer

affordable to 70% of extreme poor.


15

An important finding is that, households are willing to pay for a one-time connection fee of Tk1,000 and

to some extent increase their budget up to Tk200/month. This is the maximum amount that over 50% of

households could still afford.

It is important to note that while willingness to pay for connection and cost of water is primarily based

on affordability; the strategy to motivate and encourage water users to connect must magnify also on

the adequacy, acceptability of water quality and availability at all times. These are potential factors for

the social marketing strategy of KWASA management.

Table 2. 5 Willingness to connect and pay (HHs without connection)

2.5 Perception on billing

Perception on billing based on meter consumption is considered as fair as supported by 77% of those

already connected and 68% of those with no connections yet. Again this emphasizes that a tariff

structure only works properly when supported by a proper metered service system.

Water consumption basically depends on how households use water. For those using piped water, there

is the tendency of households to excessively use water due to ease, resulting to waste water and

increase on billing. Along with promotion of piped water, there is a need for an education campaign on

proper management of water so that households will not be burdened of paying for excess of or wasted

water.

Connection Value Sample Extreme

Above %

Fee Taka Size Poor % Poor % Poor % Total

1000 100 135 9 60% 44 59% 30 67% 83 61%

200 150 5 31% 37 56% 41 60% 83 55%

300 150 7 28% 24 36% 26 44% 57 38%

400 136 3 13% 13 23% 23 41% 39 29%

500 134 0 0 14 20% 16 35% 30 22%

3000 100 141 5 29% 34 61% 44 65% 83 59%

200 142 4 22% 24 34% 30 57% 58 41%

300 131 1 5% 26 43% 15 31% 42 32%

400 137 4 22% 21 34% 16 28% 41 30%

500 136 1 6% 17 43% 16 29% 34 25%

5000 100 140 4 29% 40 60% 42 71% 86 61%

200 138 5 22% 31 46% 23 44% 59 43%

300 136 2 11% 14 23% 17 30% 33 24%

400 136 5 5 17 25 13 28% 35 26%

500 143 0 0 8 8 13 21% 21 15%


16

2.6 Issues on Water

The Consumers survey and the FGD results revealed a number of problems on the current water supply.

These include:

1) Breakdown on water facilities constantly occur as most private hand pumps had been installed

for over 12 years.

2) There is prevalence of water borne diseases such as dysentery and diarrhea which occur about

0.8 times per year.

3) Quality of water is not good which is suspected of high iron content. It is also saline in taste.

4) Insufficiency of water

5) Distance of water from their location

3. SOCIAL, POVERTY AND GENDER PROFILE OF THE STUDY AREA

3.1 Socio-economic Condition of the Project Area

The coverage for this assessment includes the whole area of Khulna City Corporation (KCC) covering 31

wards, and specific information on 3006 sample surveyed households from Consumers Survey 2009 and

Consumer’s Census 2010.

3.1.1 Geography and Climate

Khulna City is the third largest City in Bangladesh after Dhaka and Chittagong. It is part of Khulna District,

which is within Khulna Division located at the southwest portion of Bangladesh with India at its western

boundary. It is 333 km southwest of Dhaka and can be reached through air, road, rail and water

transport system. Its close proximity to Mongla port the second largest port of the country gives it a

distinction as a port city. Its location and linkage with regional towns and growth centers has made it a

strategic hub in the region.

The City originated as a market town with a history going back more than a hundred years. In the early

19th century, Khulna had a close market link with Calcutta with tobacco and sugarcane as the major

goods being traded then. In 1884, it was declared a municipality and in 1885 a railway link was

established therein. In 1961, it became the district headquarter and was promoted to a municipal

corporation in 1984; and, in 1990, it was declared a City Corporation.

The City itself lies on the natural banks of Rupsha and Bhairab rivers, which are characterized by Ganges

tidal floodplains with low relief, crisscrossed by river and water channels and surrounded by tidal

marshes and swamps. Sundarban considered as the largest mangrove forest in the world is located

some 90 kms south west of the city and attracts a large number of visitors who usually pass through

Khulna to get to the site.

The annual average temperature in Khulna is 35.5 OC with a record low of 12.5 OC. The average rainfall is

1,605 mm.


17

3.1.2 Administration

The current jurisdiction of Khulna City Corporation (KCC) encompasses the thanas (sub-district within a

city corporation) of Daulatpur, Khalishpur, Sonadanga, and Khulnna Sadar covering approximately 45.7

km2 of land area. The City is subdivided into 31 wards with the mayor and 31 ward commissioners

elected every five years tasked for its civil administration. In addition, 10 women Councilors are elected

at the same time as the Mayor and ward Commissioners. These women Councilors represent the

women affairs and concerns in 3-4 wards each. The law enforcement of Khulna is under the jurisdiction

of Khulna Metropolitan Police.

3.1.3 Land Use

In the late 1990s, around 80% of the total land area of KCC was reported1 as built up with almost two

thirds consisting of residential use (see Table 3.1 below). In 2009, a significant portion of the remaining

land may have been already developed and became more urbanized but land use has not changed

drastically. Khulna City’s urbanization is said to be more in synch with population growth than land use.

Table 3.1 Land Use, KCC area, 1999

Land Use Km2 % of total

Residential 23.5 65

Mixed Use 6.6 18

Industry (incl. railway and shipyards) 3.6 10

Commercial/government/education 1.0 3

Others 1.5 4

Subtotal 36.2 79

Agricultural 9.8 21

TOTAL 46.0 100

3.1.4 Population

Accurate assessment of Khulna City’s current population is constrained by the absence of reliable

information since the 2001 Census. In the JICA Feasibility Study (2010), water demand was based on

population projection2, which considered the various data limitations. In its projection, an intermediate

estimate has been obtained using the national urban growth rate of 2.35% but assumed to be slightly

lower (2.0%) in KCC areas as more growth would have occurred outside of the city’s actual

1 KWASA, Final Report: Feasibility Study for Khulna Water Supply Improvement Project in the People’s Republic of

Bangladesh, Khulna City: May 2010. 2 JICA Study Team, Progress Report (2) – Main Report: Feasibility Study for Khulna Water Supply Improvement

Project in the People’s Republic of Bangladesh, Khulna City: July 2010.


18

administrative boundary. With this assumption, the 2009 population of KCC is around 957,000 as

compared to the corrected 2001 figure of 817,000.3 Table 3.1.2 shows the comparative total population

and households in 2001, 2009 and 2010 of KCC. The population by Wards is shown in the Table

overleaf.

Table 3.2: Population Size and Number of Household, 2001, 2009 & 2010, Khulna City

Indicator Year

2001* 2009** 2010**

Population Size 817,000 957,000 976,000

Average Household Size 4.8 4.4 4.4

Number of Households 170,208 217,500 223,900

*Based on 2001 Census

**Based on JICA Consultant’s Estimate

Male to female ratio of Khulna population in 2001 was 53:47; in 2009, it had been estimated to be of

almost equal proportion at 51:49. Based on the 2009 population estimate, the population density in KCC

would be around 21,218 persons per square km (212 pers/m2).

3 Based on the 2001 Census, Khulna City’s population was 770,000; however in the 2001 census there was a

recognized undercounting of the urban population by 6.2%. This has been adjusted in the JICA Team estimate.


19

Khulna City Corporation Population Census

Ward 1981 Census 1991 Census 2001 Census 1 24134 24005 20311 2 11327 14809 18815 3 19275 19059 23016 4 10366 11558 14299 5 15918 17828 15314 6 8878 14294 20995 7 12447 11540 14808 8 14158 14698 18545 9 24532 24683 34614 10 31247 29276 18518 11 15503 13819 19398 12 29506 25418 52036 13 21965 14715 19959 14 15033 21334 26444 15 16311 17150 25724 16 23465 22355 35881 17 15231 20122 30352 18 14403 16896 16765 19 16226 19737 26321 20 24870 17374 22539 21 18677 15953 27106 22 14772 12296 21633 23 16554 13995 18332 24 19861 28023 42959 25 18677 15953 27106 26 10925 15893 18087 27 22969 24285 31489 28 11877 13212 22404 29 18316 21269 20431 30 28756 30640 35827 31 17600 23851 32592 Total 577533 597795 770498

Note: Actual Population growth 1981-1991=0.4% pa Actual Population growth 1991-2001=2.6% pa Forecast Population growth 2001-2010=2.6% pa Forecast Population growth 2010-2030=2.6% pa


20

3.1.5 Infrastructure and Social Services

Like any other developing cities in Bangladesh, Khulna City’s infrastructure is insufficient to meet the

need of its fast growing population. Although it has adequate transport system that enables it to link

with all the districts of Bangladesh, the approximately 357 km of road network with 16 automated traffic

signal points and 18,750 street lights in the city remains inadequate to ensure the smooth traffic flow.

More than 17,000 rickshaws have been recorded officially and they constitute as the major source of

congestion although traffic jam seldom occurs. Other means of transport include the railway which links

Khulna to northern Bangladesh and Dhaka City, water transport through Barisal Division, and through air

via Jessore airport, about 70 km from Khulna.

The telecommunication requirement, the landline telephone system, cellular phone and internet service

of the population are served by various providers including BTCL, PSTN, Grameen Phone, Teletalk,

Warid, Aktel, City cell, and AKIJ Online Ltd.

The City has 26 ward offices also serving as community centers, 2 public halls, 6 public parks and 1

modernized park for children. Supplying the daily needs of the population are four supermarkets, 21

bazaars, 3 slaughterhouses and 1 meat market.

The health and medical infrastructures include 24 primary health care centers, 35 urban dental clinics,

10 hospitals and 8 nursing home/clinics and maternity ward. There are also 3 crematoria and 8

graveyards in the city.

As for the educational system, Khulna is under the jurisdiction of the Jessore Board. Several educational

institutions provide the requirement of Khulna, which include six integrated general and vocational

schools and a technical school for under-privileged students. Likewise, 8 universities and a medical

college provide the higher educational requirement. In addition, under KCC’s direct supervision are 51

primary schools, 3 secondary schools and 1 university.

3.1.6 Economic Resources and Activities

Khulna’s strategic importance to the economy of the country cannot be overlooked. Its proximity to the

port of Mongla, the second biggest in Bangladesh after Chittagong, has given it recognition as a port City

considering that most goods going to Mongla pass through Khulna. Khulna has the biggest shipyard in

the country, operated by the Bangladesh Navy. About 25% of all port trades handled in Bangladesh

passes through Mongla with the rest through Chittagong. Most (approx. 75%) of the shrimps and other

fishery products exported from Bangladesh are grown in Khulna district. Furthermore, a major

proportion of the jute exported goes through Khulna.

Some of the heavy and medium type industries located in Khulna are the following: Khulna Hardboard

Mills, Bangladesh Oxygen Company, Khulna Oxygen Company, Khulna Textile Mills, Platinum Jubilee

Mills, Star Jute Mills and Dada Match Factory, Khulna Power Station and 17 jute mills. Khulna also has a

number of fish processing centers. In support of its aquaculture industry, there are a number of fertilizer

and feeds plants. Likewise, a cement factory and salt processing industry had been established.

Furthermore as transport is critical to the economy, a number of land and water based transport

companies operate in Khulna.


21

The construction of Padma Bridge, which is a road and rail bridge, will provide a direct link to the

country capital, Dhaka, from Khulna. This is expected to facilitate the proposed pipeline project to

increase gas supply to Khulna, improve power supply, develop a multi-modal transport system, revive

the Mongla port and encourage the establishment of free export zone, stimulate the growth of farm and

non-farm sectors as well and encourage development of tourism.

3.1.7 Sanitation and Sewerage

Despite the significant achievement in the improvement of the general health status of the population

of Bangladesh over the years, much remains to be done especially in the urban areas. Water borne

diseases due to lack of proper hygiene and sanitation and potable water remain among the top causes

of morbidity and mortality especially among infants, children and pregnant women. Infection is often

aggravated by congestion due to the high concentration of population in slum and low-income areas.

Most common water related diseases recorded from admission and consultation data in medical

facilities in Khulna include dysentery, cholera and typhoid. The 2009 Consumer Survey reported an

average of 0.85 incidence per person of diarrhea per year. However, actual number of cases appears to

be still under-reported.

KCC’s basic statistics reports that there is approximately 642 kms of drainage in the City. But the low

lying topography and the City’s location next to the riverbanks, which overflow during the regular

occurrence of intensive monsoon, are continuing sources of problem. The City drain is limited through

the existing railway embankment and Khanjahan Ali Road. Khulna’s sewerage system is practically non-

existing. Domestic and industrial liquid wastes are often disposed without treatment.

3.1.8 Slum Areas

While the average population density of the city is already very high, the enormity of the problem in

terms of land use, availability of basic infrastructure and services and the population’s access to them

become more apparent if population distribution and location is viewed at the micro level.

A study of slum4 areas of urban Bangladesh5, which included Khulna City showed that in 2005 the city

had about 520 slum clusters with a population of about 188,442 (37,826 households) or approximately

20% of the city’s population. One of the largest concentrations is along the railway line, which traverses

the city almost through the middle. Another large concentration could be found in the two industrial

zones, Daulatpur and Khalishpur. Still another is in the Rupsha Ghat area near the city center.

Furthermore, some of the largest individual slums are located in Mujgunni and Nurnagar area. Ward 26

for example contains 32 slums; though small in size, the population density within them is really high.

Average person per km2 in the slum area of KCC is 132,988, which is almost 7 times higher than the city

average of 21,218 per km2.

4 Slum is defined as a neighborhood or residential area with a minimum of 10 households or a mess unit with a t least

25 members with four of the ff conditions prevailing: predominantly poor housing, very high population density and room crowding, very poor environmental services, particularly water and sanitation facilities, very low socioeconomic status for the majority of residents, and lack of security of tenure. The definition does not distinguish between slums and communities often referred to as squatter settlements (usually on public lands). 5 Center for Urban Studies (CUS), National Institute of Population Research and Training (NIPORT) and MEASURE

Evaluation. 2006. Slums of Urban Bangladesh: Mapping and Census, 2005. Dhaka, Bangladesh and Chapel Hill, USA.


22

As in the rest of the major urban areas in Bangladesh, about 80% of the slum areas in KCC had been in

existence even before the 1990 with 27.3% of the total reported to have been there prior to 1971 (the

year of independence of the country). Almost 80% of the slum clusters (520) in KCC were established on

privately owned land. About 12.5% were on public land while the rest were on land owned by other

organizations. Of the total slum population, 54.3%, 27.1% and 18.6% are located in private, public and

other land category, respectively. Out of the total slum households, 59.4% rented their residence, 17.4%

owned them while 23.1% are rent-free.

3.2 Socio-economic Characteristics of Sample Households

The socio-economic characteristics of households were derived from three sources: (I) Consumers

Survey (2009) with 3006 households as sampling size, (ii) Focus group discussions (FGD) represented

from various sectors (400 persons) of the 12 wards of the KCC, and Consumers Census 2010,

represented by over 50,000 households.

In order to capture the socioeconomic characteristics of households, a segregation of “extreme poor”,

“poor” and “above poor” was done using household expenses from the raw data of 2009 Consumer

Survey. Using expenditures was considered more logical as respondents tend to overestimate or

underestimate their income while expenditures would tend to reflect the real figure as households

magnify on their expenses. While the Consumers Survey did not provide data on savings, earlier work

conducted in Bangladesh in 2005-20066 showed that average savings of households range from 5 to 12%

of the total income. Many programs have been initiated over the years till now by NGOs to promote

households savings, so, it is assumed that savings rates must have increased. Thus, a 17% savings factor

was added to expenditures to represent real income, which is consistent with the national figure.

Give the above data, the formula was applied as shown below:

Estimated average monthly income = Households monthly expenditures x .17 % (savings)

Average annual income = Household expenditures multiplied by .17 X 12 months

Monthly Expenditures

(Consumer’s Survey Raw data)

Average Per Capita

Expenditure/annum

Estimated Average Monthly

Income

(incorporating 0.17 savings)

Below <27500

12,510 21,446 25,091 Extreme Poor

and poor

Each individual profile on expenditures was calculated using the above formula. The overall results show

that:

Extreme poor: HHs expenditures under Tk 13,750 per annum;

Poor: HHs expenditures under Tk 27,500 per annum;

Above poor: HHs expenditures above Tk 27500 per annum.

In terms of income, the classification emerged as shown below which is consistent with the

classification standard used by UPPRP:

6 ADB BAN Secondary Towns Water Supply and Sanitation (2006)


23

Extreme poor - income is less than Tk 2,500;

Poor – income is less than TK 5,000

Above poor – income over TK5,000

From the sample size, three major categories of households have emerged as indicated in Table 3.3.

The Consumer’s Survey 2009 represented by 3006 households showed that extreme poor represents

about 12%, while the poor 44.6%, and, above poor 44%.

The results of the Consumers Survey 2010 represented by 51,370 households did not include household

income/expenses, but instead, a classification on type of housing structures to represent certain

categories of households. These are classified as pucca (48.6%); semi pucca (28.9%) and tin sheets

(22.5%), where pucca, are housing structures representing the above poor, semi pucca-poor, and tins

sheets-extreme poor.

Table 3.3 Comparative Results of Categories of Households

Consumer’s Survey 2009 Consumer’s Survey 2010

Sampling Size: 3006 Sampling size: 51,370

Category No. % Category No %

Extreme Poor 351 11.4 Tin sheets (extreme poor) 11,581 22.5

Poor 1343 44.6 Semi Pucca (poor) 14885 28.9

Above poor 1312 44% Pucca (above poor) 24904 48.6

Source: Consumer’s Survey 2009, Modified and segregated by Consultant 2010

For purposes of social analysis, both studies are made as reference where applicable as there are

variables which are not included in 2010 survey but are present in the 2009 survey.

The overall results showed that based on CS 2009, low income households represented by the poor and

extreme poor, comprise 56%, while the CS 2010 showed 51.4%. There is a slight margin of 4.6% higher

from the results of the CS 2009 compared with that of the CS 2010. However, with due consideration on

the wide coverage on sampling size of CS 2010, the results of the latter proved to be more acceptable in

terms of categorization. Thus, this figure (51.4%) must be kept in mind when planning for access of low

income households to safe water, and more focus on consideration of some 22.5% of extreme poor to

achieve the Project’s objectives.

Household Size and Gender

Of the 3006 sampling households (CS 2009), total household members are 16,402 persons. Of this, 2698

(90%) are male and 308 (10%) are female. Average size of extreme poor appears higher (7.23) as

compared to poor (5.84) and above poor (4.59).


24

Table 3.4. Basic Information on Households

Consumers survey

Sampling

Extreme poor Poor Above Poor Total

3006

351 1343 1312

3006

Percentage

11.4% 44.6% 43%

100%

HHs Members

2,537 7843 6,022

16,402

Average size/HH

7.23 5.84 4.59

Source: Consumer’s Survey 2009

Education

There are in total 7164 persons (43%) household members who are 18 years and above. Of this, male

outnumbered women which is consistent in all categories of households. Of the “extreme poor”, male

comprise 65% while female earners comprise 35%. On the other hand, among poor households, male

comprise 63% and female 37%.

Education is perhaps the single most important socio-demographic factor influencing occupations. The

latter is certainly a pre-requisite to obtain job placement in the formal sector. Of the total 7164 adult

members, 7062 persons (98%) have reached certain levels of education. Only 5% have not been to

school. Overall, a high percentage (58%) has reached primary (35%) and secondary (23%) education.

Access to education as it reaches higher level is rather limited to the extreme poor. The majority of the

extreme poor (43%) have reached at least primary school and only 29% has reached secondary school.

Only 9% has reached high school. Compared to other categories, extreme poor has higher result in

terms of not having been to school (13%) and has the lowest result also as the education level goes

higher. On the other hand, compared to extreme poor, the “poor” has lower access to primary school

(27%), but higher access to secondary school (39%) and high school (13%)

The survey results also showed that the above poor have higher percentage in reaching college (31%).

Both the extreme poor (5%) and poor (13%) have low access to college education.


25

Table 3.5 Gender and Education of Adult Household Members

(1) Male 4407 62% 560 65% 2066 63% 1781 59%

(2) Female 2757 38% 308 35% 1226 37% 1223 41%

7164 100% 868 100% 3292 1.00 3004 1.00

(1) Never been to school 373 5% 103 13% 198 6% 72 2%

(2) Primary school 1635 23% 353 43% 885 27% 397 13%

(3) SSC 2501 35% 235 29% 1248 39% 1018 34%

(4) HSC 1045 15% 71 9% 437 13% 537 18%

(5) Madrassa 43 1% 13 2% 22 1% 8 0%

(6) Vocational and technical school 51 1% 2 0% 22 1% 27 1%

(7) College, University or above 1414 20% 45 5% 429 13% 940 31%

7062 100% 822 100% 3241 100% 2999 100%

5.46 7.23 5.84 4.59

Above Poor

Gender

Highest Educational Attainment

Average No. of Family Members

Total Extreme Poor Poor


Overall, the results show that the majority of the respondents have at least reached secondary school.

About 13% of the extreme poor have never been to school and 6% of the “poor.” The overall results

also showed that of the 7062 persons, a significant 20% have obtained college education. Of this, only

5% represents the “extreme poor, 13% of the “poor” and 31% of the “above poor.”

Income

Income must be interpreted with caution in any survey as true income is most often not revealed by

respondents. However to give an indicative pattern on income, the segregation results showed that the

majority 37% earns between Tk 5000-10,000 per month. According to national standard, the poverty

line is set at TK 5,000 (US$71.4) given this figure shows that overall, 41% of the respondents fall below

the poverty line. Assuming an average of TK 5000 per month for poor households and with an average

family size of 5.8 (applicable for poor households) gives an average of TK862 (US $12.3)/capita per

month or TK 28.7(US$.41) per capita per day. This amount is not sufficient to meet the daily (3 meals)

nutritional requirement of poor households.

Table 3.6 Income Profile of Households

Source: Consumer’s Survey 2009, Modified and Segregated by Consultant 2010

Sources of Income

Income (person)

Extreme Poor

Poor

Above Poor

(1) 0-3000 Taka 872 17% 213 37% 388 17% 271 12%

(2) 3000-5000 Taka 1190 24% 244 42% 620 28% 326 15%

(3) 5000-10,000 Taka 1868 37% 114 20% 943 42% 811 36%

(4)10,000-20,000 Taka 907 18% 7 1% 249 11% 651 29%

(5) More than 20,000

Taka 218 4%

4 1%

34 2% 180 8%

Total 5055 100% 582 100% 2234 100% 2239 100%


26

There are in total 5055 persons who are family earners. The pattern is again similar with regards to

sources and status of income. The regular income is comparatively lower among the extreme poor (19%)

as compared to the poor (32%) and non poor (36%). The two major sources of income that are common

to all categories are coming from employment by government and private companies which can be

classified as regular income. Apparently, the findings show that the lack of adequate education among

the extreme poor and poor households inhibits them from gaining access to regular jobs in the formal

sector.

Table 3.7 Sources of Income

Source: Consumer’s Survey 2009, Modified and Segregated by Consultant 2010

Occupation

Aside from regular earning jobs, other types of occupation include professional and non professional

jobs. The majority among the extreme poor (30%), poor (33%) and above poor (34%) are housewives

which are considered as an occupation. The FGD affirmed that housewives, aside from doing domestic

work are also engaged in varied forms of income generation activities to supplement family needs, such

as housemaids, tailoring, embroidery, poultry, animal husbandry, batik making, goat raising, and home

based cottage industry.

The next significant form of livelihood is owning a small business as signified by 24% of the extreme

poor, as well as the poor (22%) and non poor (20%). Business is mostly home based such as garment

making, raising animals, small restaurant, etc. A number of persons are unemployed but rather

insignificant in number. A few are retirees and pensioners.

Other common forms of work among the extreme poor and poor households include labourer (12%),

rickshaw puller (2%) farmer (5%). This findings show that the lack of adequate education among the

extreme poor and poor households inhibits them from gaining access to regular jobs in the formal

sector.

Sources of Income (person) Total

Extreme Poor

Poor

Non-Poor

(1) Regular salary from the government / 780 15% 32 5% 299 13% 449 20%

(2) Regular salary from the private

companies 868 17%

81 14%

420 19% 367 16%

(3) Daily / Temporary wages 129 3% 45 8% 74 3% 10 0%

(4) House Rent 517 10% 22 4% 169 8% 326 15%

(5) Others 2761 55% 402 69% 1272 57% 1087 49%

Total 5055 100% 582 100% 2234 100% 2239 100%


27

Table 3.8 Occupation

(1) Employee of a state owned enterprise 593 8% 16 5% 237 7% 340 11%

(2) Employee of a private enterprise 174 2% 15 2% 58 2% 101 3%

(3) Government employee (including teachers) 855 12% 83 8% 421 13% 351 12%

(4) Farmer 66 1% 38 4% 25 1% 3 0%

(5) Rural doctor 15 0% 2 1% 7 0% 6 0%

(6) Doctor 20 0% 0 0% 4 0% 16 1%

(7) Own business (not street vendor) 1536 21% 209 24% 729 22% 598 20%

(8) Daily labor 253 4% 66 7% 155 5% 32 1%

(9) Street vendor 8 0% 0 0% 6 0% 2 0%

(10) Rickshaw puller 37 1% 18 2% 16 0% 3 0%

(11) Responsible for house work (house wife) 2384 33% 266 30% 1093 33% 1025 34%

(12) Retired, pensioner 468 7% 30 4% 193 6% 245 8%

(13) Student 9 0% 1 0% 3 0% 5 0%

(14) Unemployed 110 2% 21 2% 53 2% 36 1%

(15) Disabled 49 1% 14 2% 22 1% 13 0%

(16) Overseas workers 125 2% 1 0% 49 1% 75 2%

(17) House Rent 104 1% 10 1% 46 1% 48 2%

(18) Other 358 5% 78 8% 175 5% 105 3%

Total Extreme Poor Poor Above Poor

Source: Consumer’s Survey 2009, Modified and Segregated by Consultant ‘2010

Household Expenses

There is similar pattern among the poor and extreme poor with regards to expenses. Overall, the first

three important priorities are food (32%), followed by repayment of loans, (19%) and education (14%).

The remaining amount is allotted for other items such as clothing (4%), housing (3%), medical bills (5%)

transportation (3%), fuel (3%) and electricity (3%). The survey results showed that household expenses

are higher than household income. Most households result to acquiring debts or loans which explains

why repayment of debts ranks second in terms of expenses.

Water represents only 1% of the expenses of the households in all categories. The monthly budget

appropriated for water by the extreme poor amounts to Tk 126, and Tk118 for the poor and Tk139 for

the above poor.


28

Table 3.9 Average Monthly Expenses (Taka)

Total %

Extreme

Poor % Poor %

Above

Poor %

Food 5406 32% 3451 41% 4691 39% 6575 29%

Clothing 657 4% 414 5% 578 5% 758 3%

Housing (rent and maintenance) 536 3% 299 4% 364 3% 672 3%

Medical bills 862 5% 397 5% 553 5% 1219 5%

Water 130 1% 126 1% 118 1% 139 1%

Telephone / Mobile 428 3% 200 2% 320 3% 557 2%

Fuel for cooking (Gas/firewood) 571 3% 380 5% 480 4% 707 3%

Electricity 473 3% 305 4% 393 3% 596 3%

Education 2297 14% 804 10% 1476 12% 3373 15%

Transportation 541 3% 293 3% 387 3% 708 3%

Donation/giving 170 1% 80 1% 105 1% 224 1%

Repayment of loans 3242 19% 1254 15% 1732 15% 4962 22%

Others 1513 9% 423 5% 699 6% 2002 9%

Total Summary 16825 100% 8427 100% 11896 100% 22493 100%


Sanitation

Almost all households have sanitation facilities. Among the extreme poor, the facility that is commonly

used is pit latrine (59%) and pit latrine with septic tank (28%). On the other hand the majority of poor

households (44%) and above poor (53%) use private pit latrine but without flush. Very few households

use private flush toilet with septic tank especially among the poor households. This facility is affordable

only among 18% of the above poor.

Table 3.10 Sanitation Facilities

Source: Consumer’s Survey 2009, Modified and segregated by Consultant


Sanitation Total % Extreme

Poor

% Poor % Non

Poor

%

(0) Private latrine with septic tank

(without flush)

1387 46% 98 28% 590 44% 699 53%

(1) Private flush toilet with septic

tank

303 10% 6 2% 55 4% 242 18%

(2) Private flush toilet with pit

latrine

21 1% 1 0% 9 1% 11 1%

(3) Private pit latrine 1121 37% 206 59% 579 43% 336 26%

(4) Shared latrine with neighbor 5 0% 3 1% 1 0% 1 0%

(5) Public pit latrine 149 5% 28 8% 100 7% 21 2%

(6) No facilities 1 0% 1 0% 0 0% 0 0%

(7) Other 19 1% 8 2% 9 1% 2 0%

Total 3006 100% 351 100% 1343 100% 1312 100%


29

3.3 Dimensions of Poverty

Studies7 indicate that the poverty in Bangladesh has become steady from 1990 with a sustained

economic growth of almost 5% and a rise in real per capita GDP 35%, or twice that average of other low

and middle countries. The population growth rate also dropped down to an annual average of 1.5%

which is viewed as a significant achievement in term of poverty reduction.

Bangladesh also made progress in the following areas such as reduced malnutrition, low birth weight by

20-25% and increased in literacy by 12.5%.

While poverty incidence in Bangladesh is decreasing in absolute terms, the number of urban poor grows

with the rapid urbanization. Employment opportunity draws large migration from rural areas to cities,

resulting in expansion of slums under ineffective urban planning and control. Of the urban population,

45% lives in poverty and 25% is classified as extremely poor (defined by consumption of less than 1,805

kilocalories per day). Poor urban infrastructures such as inadequate drainage, water supply, and

sanitation often expose the population to public and environmental health hazards. Most urban poor

live in slums without access to basic services like water, sanitation, and energy. Most low-income groups

are migrants from rural areas and rely on informal and unsecured income sources. The ready-made

garment industries employ a large proportion of these urban poor and the majority of them are women.

Lack of awareness and measures to control household and industrial waste have become a major cause

of pollution in the urban areas. The city corporations and pourashavas often do not have enough

capacity and proper mechanisms to deal with the needs of the poor and women.

A study of slum8 areas of urban Bangladesh9, which included Khulna City showed that in 2005 the City

had about 520 slum clusters with a population of about 188,442 (37,826 households) or approximately

20% of the City’s population. One of the largest concentrations is along the railway line, which traverses

the City almost through the middle. Another large concentration could be found in the two industrial

zones, Daulatpur and Khalishpur. Still another is in the Rupsha Ghat area near the City center.

Furthermore, some of the largest individual slums are located in Mujgunni and Nurnagar area. Ward 26

for example contains 32 slums; though small in size, the population density within them is really high.

Average person per km2 in the slum area of KCC is 132,988, which is almost 7 times higher than the

City’s average of 21,218 per km2.

3.3.1 Definition and Magnitude of Poor Households

Who are the poor?

Within the study area, there are three categories of households. These are extreme poor representing

11.4%; poor (44.6%) and above poor (44%). The focus of this assessment is on the first two categories.

7 Poverty in Bangladesh: Building on Progress, WB.

8 Slum is defined as a neighborhood or residential area with a minimum of 10 households or a mess unit with a t least

25 members with four of the ff conditions prevailing: predominantly poor housing, very high population density and room crowding, very poor environmental services, particularly water and sanitation facilities, very low socioeconomic status for the majority of residents, and lack of security of tenure. The definition does not distinguish between slums and communities often referred to as squatter settlements (usually on public lands). 9 Center for Urban Studies (CUS), National Institute of Population Research and Training (NIPORT) and MEASURE

Evaluation. 2006. Slums of Urban Bangladesh: Mapping and Census, 2005. Dhaka, Bangladesh and Chapel Hill, USA.


30

According to UPPRP, extreme poor are those whose household income is below Tk2500/month while

the poor are below Tk 5,000/month. These figures are consistent with the national standard.

The 2UPHCP and UPPRP have adopted the following indicators to define the extreme poor and poor

households.

a. More than 6 people are dependent on one earning member;

b. Has 3 children of less than 5 years old;

c. Child labour of less than 15 years age works for full day;

d. Age of family’s main income earner is more than 60 years;

e. Female headed households;

f. Have disabled family member;

g. Suffering from prolonged ailment;

h. Have drug addicted member of the family;

i. All family members above 16 years of age are illiterate;

j. Has school age children but not going to school or is a drop out;

k. Lack of access to safe drinking water;

l. Lack of access to sanitary latrine;

m. Live in hut (made of hay, thatch, polythene). Continuously afraid of eviction;

n. Culturally or socially isolated family.

A household will be considered extremely poor if any of 6 out of 14 criteria are met. A household can be

considered as extreme poor even if only one of the following criteria “a”, “d” or “f” is met.

3.3.2 Poverty Indicators

(i) Low status of land and housing

Almost 80% of the slum clusters (520) in KCC were established on privately owned land. About 12.5%

are on public land while the rest are on land owned by other organizations. Of the total slum population,

54.3%, 27.1% and 18.6% are located in private, public and other land category, respectively. Out of the

total slum households, 59.4% rent their residence, 17.4% owned them while 23.1% are rent-free.

(ii) Low access to water and sanitation services

Most of the poor households in slum communities access their water from shared hand tube wells and

hand pumps. Extreme poor and poor households have low access to piped water due to distance. The

FGD report indicated that many households showed interest in connecting to KWASA system as existing

supply is inadequate to meet community (group of households) requirement. Field assessment has

shown that for many poor households in slum communities, individual connection is impractical. The

household’s dwelling is normally a one-room unit used primarily for sleeping by 5-6 members. Cooking,

bathing, toilet and sanitation facilities are communal in a separate corner of the residential compound.

Among the extreme poor (59%) the facility that is commonly used is pit latrine.


31

(iii) Low income and expenditures

Income is another indicator of poverty. The Consumers Survey results showed that of the 3006 Overall,

a total of 41% are considered as vulnerable families whose household incomes are below Tk5,

000/month (US$71.4) or below Tk 60,000 per household per annum. Given an average of household size

of 5.46 shows an average of Tk 915 (U$13)/c/month. This amount hardly meets the daily nutritional

requirement of household members. The Consumers Survey also showed that household expenses are

more than income, resulting to borrowing money from neighbors or institutions. As such, there is not

enough money for savings.

(iv) Limited access to education and employment

Access to education among the poor households is limited. Education is certainly a pre-requisite to

obtain employment in the formal sector. A high percentage of the extreme poor have not been to

school. Only 9% has reached high school. On the other hand, poor households have also low access to

higher education. Access to education as it reaches higher level is rather limited to both extreme poor

and poor households. Only 5% of the extreme poor and 13% of the poor have reached college.

3.4. Gender Disparity

The characteristics of the water project determine the specific role gender issues will have. Since the

beginning of the International Water and Supply Decade, this role in the water and sanitation sector has

been delineated and its implications for project elaborated. Gender issues have been placed within the

overall context of community participation. Much has been learned about the importance of

participation and gender issues. While many lessons have been learned, there are still some issues to be

addressed.

(i) Access to education

The Consumers survey showed that there are various aspects of gender bias and discrimination in the

area of education, employment and income, household roles, and decision-making that is visible in the

Project area. There is a higher proportion of female who are illiterate and functionally literate compared

to the male. In terms of educational attainment, the proportion of men and women who have obtained

or finished lower level of education appears to be equal primarily because of the national government’s

interventions; however, at the higher level, the gender disparity becomes apparent again. More males

have attained or finished Bachelor’s degree and/or post-graduate level than the females. In the area of

employment, the situation appears to be no better. While women constitute 48% of the total labor

force, only about 11% of the total is gainfully employed. The average annual income of female-headed

households is Tk46, 621 compared to the male-headed households, which is Tk65, 388. Accordingly, the

proportion of female-headed households (44.1%) who are below the poverty threshold is very much

higher than the male-headed households (27%). On decision-making at the household level, the male is

primarily responsible, except in female-headed households. But even there, the female head has to

often consult with the male adult member of the households on major decision areas.

The findings indicated that status of women in the Project area is generally similar to the status of their

national counterpart. The females appear to have equal chances of being schooled at lower level;

however at higher level, men appear to have the advantage. The proportion of male household


32

members, having attained university level is higher than the proportion of female household members.

(ii) Employment

In terms of employment, of the total employable male, 62% is employed while only 58% of the total

employable females are actually employed. However, if one looks at the contribution to total household

income, the proportion of women contribution is almost equal to that of the men. It would appear then

than that while in comparison to the male counterpart the percentage of women who are employed is

low, still an almost equal proportion are gainfully occupied (e.g., operating small business and not

reported as employed) and contribute to the total household income. Per Consumer Survey data,

women headed households included in the survey appear to fare better than their male counterpart.

(iii) Decision Making

Women in the urban households have equal voices in decision-making. However, in the wards and

community administrative system, women’s role appears to be limited by cultural/religious attitude.

Efforts had been undertaken to address such imbalance as social institutions join efforts in improving the

welfare of women. The UPPRP report showed that 90% of women are members of the community

based centers (CBC) and are making major decision in community affairs. A number of NGOs and

development agencies’ undertaking community based project also affirmed that women are often the

chairs and/or manager of the program activities especially if these programs are concerned with health,

sanitation and or microcredit and supplemental livelihood activities. This reflects the reality in the field

that the men are normally busy in formal livelihood and income generation activities for the households

and it is the women who are available to attend to other community related activities.

(iv) Access to basic services

In the predominantly Muslim country, the women’s role in the households and communities is pretty

much defined by religious and cultural/social expectations unlike their counterpart Hindu women.

However, the women in the urban areas as in KCC appear to have better access to social infrastructure

and services than their rural counterpart as the households generally live in more urbanized location

where the infrastructure and services are concentrated. Services such as health institutions are available.

An area where improvement is needed is sanitation especially in the slum areas where roads are dirty

and environmental situation is very poor.

(v) Gender Roles

Water collection and water/sanitation management at the household and community levels are the

traditional roles of women in the country. Because of this gender role and expectation, women had

become more vulnerable to health risks imminent due to hygiene and sanitation resulting from the poor

of quality of water supply and low level of sanitation practices in the households and the community.

They endure the high possibility of getting sick due to higher exposure to contaminated water and other

water borne diseases. Their access to latrines and other sanitation facilities is often inhibited because of

the gender insensitivity to the construction and management of such facilities.


33

4. SOCIAL, POVERTY and GENDER IMPACT ASSESSMENT

The social acceptability, viability and sustainability are the core contents which were considered in the

technical assistance of the KWASA Project. The social elements that were examined and assessed to

achieve the social dimension include the following:

(i) Identification and categories project beneficiaries;

(ii) Establishing needs and demand for water facilities;

(iii) Project benefits and impacts;

(iv) Safeguarding and protecting the interest of the vulnerable group;,

(v) Addressing poverty issues;

(vi) Addressing gender issues and concerns, and;

(vii) Enhancing community participation.

4.1 Project Beneficiaries

There are basically two categories of beneficiaries identified in the KWASA project namely; direct and

indirect beneficiaries.

Direct beneficiaries

The direct beneficiaries of the Project are the general population of Khulna City Corporation particularly

those living within the service coverage area of KWASA which include the 31 wards, business

establishments, institutions, government offices, schools and other establishments. The direct

beneficiaries can be further classified into:

a) Extreme poor – these are low income households living below TK 2,500, represented by an

estimated 11.4% of the target consumer population. Majority are living in slum areas. Over

50% of these households cannot afford to pay for connection and water bill exceeding

Tk100.

b) Poor households - those living below the poverty line, with income below Tk 5,000. An

estimated number of 24.6 fall under this category. Over 50% of these households can less

afford to pay for connection of over Tk1, 000 and water bill exceeding Tk100.

c) Above poor- estimated at 44%. These are households whose income are over TK5, 000 and

can afford to pay for water services.

The Consumers Survey 2010 indicates that around 22.5% of KWASA’s potential customers are slum

dwellers, which translate at approximately over 20,000 potential household customers of the total

household’s population targeted (286,545) by 2017. With an average household size of 5.5, the

estimated population to be served is estimated at over 1.6 million.

Indirect beneficiaries are those on the surrounding towns and people passing through the Khulna City;

the migrants, business men, and tourists.


34

4.2 Community’s need and demand for safe water

The social assessment showed high acceptability as demand for safe and adequate water has been

established through consultations with various stakeholders. The study shows that many households

indicate interest in connecting to KWASA system as existing supply is inadequate to meet community

requirement.General awareness of the project is high regarding the KWASA water supply improvement

plans. Overall, there is a general need for improved water facilities within the proposed project areas.

The FGD consultations affirmed that the public are hopeful that the water to be provided by KWASA will

be affordable, adequate, and acceptable in terms of quality and available at all times. There was

generally a high indication of the people’s willingness to pay for water system that could provide good

quality of drinking water regularly.

4.3 Social and Poverty Impacts

Positive Impacts

4.3.1 Impact on public health, sanitation and environment

The project is expected to have major beneficial impact on public health, sanitation and environmental

condition of the communities and households. The abundance of water will contribute to the

improvement of the environment as women begin to take care of their surroundings.

The primary benefit will be the health improvement resulting from improved access to affordable safe

water. Women and children are the most common drawers of water and hence have a vested interest

in ensuring that water and sanitation facilities continue to function. It is expected that the availability of

safe and adequate water will change in health behaviour, as women and children pay more attention to

hygiene and sanitation. Water of a better quality which remains uncontaminated helps to decrease

water-related diseases.

However, the health gains so confidently anticipated in water program has yet to be realized. The FGD

results indicated that water borne diseases continuous to be prevalent even in areas where there are

existing tube wells. The problem is that, drinking tube well water will not necessarily protect health

unless there is parallel health education and improvement in environmental sanitation and hygiene

awareness. In water projects, there is ample evidence to show that unless water sanitation and hygiene

education go together, the health impact of improved water facilities may be lost.

This is the challenge that the Project will have to address and women themselves will take the lead to

ensure the proper use of water along with application of proper hygiene if improvement on health

status will be achieved.

4.3.2 Improved community involvement, participation and planning

Participation of stakeholders is essential to reach the objectives of the KWASA Project. Participation

means, readiness of the government (KWASA), private sectors, NGOs, and the target communities to

accept responsibilities. The contribution of each is recognized, utilized and appreciated.


35

The FGD consultation affirmed that the areas where the community can participate would be in the

construction of the system (and hence can learn new skills) thereby they can contribute in terms of

labor or receive sweat equity payment. They can help in deciding where the communal water facilities

should be located and be responsible for their maintenance, repair and for the collection of service fees.

It has always been recognized that community participation motivates a sense of ownership and this can

be effectively realized if community assumes responsibility and accountability of the project.

4.3.3 Socioeconomic development

Benefits men and women may receive with improved or new water system can be classified into health

and socio-economic categories. Water sources that are closer to homes and provide an adequate supply

can significantly decrease collection time. This leads to gains in both time and energy. It can significantly

reduce physical strain due to walking and hauling water by long distances. Time and energy gains may

be applied to a variety of activities, including leisure and income generation. An increase in the water

supply can result in increase in agricultural activities (such as home gardening and other productive

activities.

4.3.4 Contribution to Poverty Reduction

4.3.4.1 Improved Access to Safe Water at Affordable Costs

The poverty impact analysis finds that the primary mechanism through which benefits will accrue to the

poor is by the potential savings derived from less medical expenses as access to safe water will result in

less exposure to water borne diseases.

4.3.4.2 Enhanced Economic Impact

Improved health condition and general well being of the household members will hopefully result into

more economic productivity. The proportion of poor, dependent on wage labor is high in the Project

area and increased job opportunities will benefit them and greatly enhanced the wellbeing of people

living in the Project area including women and the poor households. The saved time and energy gains or

surplus water for an improved water supply can be utilized by women for work in agriculture,

horticulture, dairying, and animal raising which is common income generating activities of women. This

will enhance their productive capacities and contribute to family income.

4.3.4.3 Enhanced Employment and Income Generation

Although the Project will not directly engage in income generating and livelihood activities for the poor

beneficiaries, however, as part of the community development activities, the Community Development

Specialist of KWASA will work closely with NGOs involved in micro credit and livelihood enhancement

training and link the members of the WUG to these development organizations. This will also assist the

community and the WUGs in addressing affordability and sustainability concerns to pay for the water bill

regularly if they are able to get involved in income supplementing activities.

Employment opportunities will open for unskilled as well as skilled labor during construction. Specific

measures will be taken by KWASA (the executing agency) to ensure the enforcement of CLS by the

contractor on the work camps/sites. Indirect employment opportunities will arise from better

infrastructure.


36

4.3.5 Gender Impacts

The SPA findings did not identify any significant gender related impacts resulting from Project

implementation. Both women and men are more likely to benefit from the inclusion of the slum areas in

KWASA water supply coverage area but women and girls are more likely to have greater benefit in terms

of relief from the constant task of accessing water which are often tedious and unsafe and constitute as

health hazard due to constant exposure to risk of water borne diseases. Thus the increased health

benefit due access to safe water for the household and community will also make it easier for the

women to manage household responsibility since less illness in the family will now require less time for

them as the primary health care takers. During construction, to ensure that women equally share from

employment and income generation opportunities certain measures are proposed as part of the social

development action. Likewise, the Project will enable the women to play a more active role in managing

the community water user organization. Training and capacity building will be provided to women.

Special attention will be paid to the design of messages and the method of communication to ensure

that women receive the intended Project messages. Places frequented by women, household level

messaging and focus groups will be organized to disseminate information about the Project. Benefits

from increased earnings for women resulting from construction employment will be optimized where

KWASA and the concerned ward officials will ensure that:

• Contracts will specify the maximization of use of local labor;

• Workers will be paid the legal wages;

• Child labor will not be used for construction and maintenance activities;

• Employment targets for ethnic people and women will be set;

• No differential wages are paid between men and women for work of equal value; and

• A specific clause is placed in bidding documents that compliance will be strictly monitored

during Project implementation.

Negative Impact

• Resettlement

Land acquisition and resettlement maybe required for some storage reservoirs planned under the JICA

component. Most of the planned facilities are going to be accommodated in government owned lands

and will not requirement relocation but private land acquisition maybe required for some potential

storage sites. Under the JICA component, a Project Resettlement Framework following ADB’s 2009

Safeguard Policy Statement 2 on Involuntary Resettlement and JICA’s guidelines on social considerations

had been prepared earlier. Where land acquisition and resettlement are required, Resettlement Plans

will be prepared accordingly. JICA Specialist will be responsible for the formulation and promulgation of

the RP.

Proposed Measures

The project is designed for minimal or no land acquisition and resettlement. A resettlement framework

has been prepared to guide the development of Resettlement Plans (RP) for various potential reservoir

sites. JICA Specialists will prepare the individual RPs. Most of the sites will not involve land acquisition as


37

these are in government properties with no impacts anticipated. But some private lands may have to be

acquired and may involve limited scope of resettlement.

4.4 Key Issues and Mitigation Measures

4.4.1 Affordability and Willingness to pay

An analysis on affordability to piped water to determine peoples’ affordability is highlighted below. The

minimum cost for a house connection can be calculated as follows:

Scenario A Connection Fee (1,000)

Connection fee ( start up investment cost of HHs Tk 1,000

HHs current budget for water ( minimum of 20m3 (6.33/m3 Tk 127

Total budget of water for one year ( 12X Tk 127) Tk 1296

Total investment for 1 year Tk 2423

Scenario B Connection (Tk 300) - Assumption

It is clear that the connection fee in Scenario 1 places a burden on households, particularly for the

extreme poor and poor since it forms 100X higher than the budget appropriated for water for the first

year. On the other hand, if the connection fee is lowered by 70%, assuming that Project pays for

connection, households are able to maintain their current budget for one year with only 30% additional

cost for connection.

The Consumers Survey indicates that about 83% of the population have a monthly income of more than

Tk3, 000/month or 36,000/per annum. These households may be considered as having capacity to pay

for house connection. Under Scenario A, the total costs of a house connection plus water bill during the

first year amounts to TK2, 423. This is about 6.8% of the annual income of Tk36, 000. This amount is

quite high, which is unaffordable, especially for the extreme poor.

On the other hand, under Scenario B, the total costs of a house connection plus water bill during the

first year amounts to TK 1723. This is only about 3.5% of the annual income of Tk36, 000 which has

reduced the cost by over 50%, and therefore more reasonably affordable.

Measures

The project will directly benefit the poor through the provision of bulk supply of water to community

based organization in slum areas adjacent to the KWASA pipe system. Pricing of connection and monthly

Connection fee ( start up investment cost of HHs Tk 300

HHs current budget for water ( minimum of 20m3 (6.33/m3 Tk 127

Total budget of water for one year ( 12X Tk 127) Tk 1296

Total investment for 1 year Tk 1723


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fees would be at subsidized rate to be recovered partially from lower O&M cost to be participated in by

the water user organizations. In identification of beneficiary targets, selection of communal tap site,

pricing and O & M and monitoring activities, the needs and concerns of low-income and vulnerable

groups will be duly considered. One option being explored currently is the inclusion of poor households

in the slum and low income areas in the KWASA service coverage the through a communal water tap

system. One time connection fee can be subsumed and/or a portion (say 30%) to be shouldered by the

group of households and amortized over a certain period. Monthly bill of not more than 100 taka per

household could be charged for a bulk delivery on a guaranteed quantity (and quality) per water user

group. Individual collection of the monthly dues will be the responsibility of WUG.

This strategy will require very intensive social//community development support program in terms of

organization of the households, capacity building for O&M and monitoring activities. The role of the

Community Development Specialist to facilitate the social preparation, marketing and community

mobilization is important requiring full time immersion in the field.

C. Poverty Reduction Strategy

1. Inclusion and Targeting of the Poor Households in Water Supply System Coverage

The main purpose is to increase access of poor households to water services. The identification and

targeting criteria of poor and extreme poor households have been developed following the approach

and methods developed under the ADB financed 2nd Urban Primary Health Care Project (2005)

complemented by the methodology used in the UPPRP where community members themselves identify

the extreme poor and poor households using a set of criteria similar to the ones suggested in the

2UPHCP.

The strategy for inclusion of poor communities can be done in three ways:

1. Community based water management of communal tap stand system

For LIC, the installation of common water points, community stand-posts / hydrants / standpipe should

be metered and responsibility given to a local WUG for operating and maintaining the unit and collecting

monthly tariff. The cost of connection can be shared by WUGs. To ensure that water consumption does

not exceed a certain quantity per month charged at a fixed price, a flow limiting device is an alternative

for low volume or higher rates for metered volumes if he chooses to increase his consumption.

KWASA will provide a communal tap system which can be shared by 10-12 households. A one time

connection fee can be subsumed and/or a portion to be shouldered by the group of households and

amortized over a certain period. Monthly bill of not more than 100 taka per household could be charged

for a fixed volume quantity per water user group say 20m3/month. The Consumer Survey Report (2009)

estimated that approximately 20% of the potential costumers of KWASA are the unconnected poor

households in slum areas and low-income areas. Based on a population growth projection for 2017,

there will be approximately over 20,000 such households requiring connection to safe water. With 10-12

households per communal tap, the Project will need to organize over 2,000 water user associations by

2017 which translates to the same amount of water tap stand.


39

2. Fixed rate at subsidized cost for individual connection of poor households

When considering a tariff associated solely with water supply, the Project can establish a tariff structure

which supports the social objectives of income redistribution quite readily. For individual connection,

one way is to provide a fixed rate for a consumption of say 20-25 l/c/d for all consumers at a price less

than the average cost of supply. Individuals connected to water piped could also sell water to

unconnected households, at a fixed rate agreed by water user and seller.

3. Delivery of bulk water in high capacity storage or mobile tanks

For low income areas where connection to the network is not feasible, the provision of bulk supply of

water to community based organization adjacent to the KWASA pipe system will be provided through

mobile water tanks or fixed large volume capacity storage tanks. Similar to the community based

management of communal taps, collection and maintenance will be managed by the WUG and cost of

water will also be charged at fixed rate using per liter container, or a flow limiting device, at subsidized

rate to be recovered partially from lower O&M.

2. Establishment of a Water Fund Provider (WFP)

The establishment of a Water Fund especially for the extreme poor can also be a workable alternative to

provide access of extreme poor who cannot afford connection. The Water Fund Provider (WFP) can also

provide immediate recovery of connection costs to KWASA. A Water Fund can be worked out with an

existing program of NGOs or the UPPRP who are able to provide the initial capital for loan assistance to

low income households, make a certain number of connections per year. The beneficiary consumer is

then billed the full costs of the connection in equal monthly instalment over several months, including

an interest charge of normal commercial rates in addition to the normal bill for consumption. The Water

Fund then becomes self-supporting without burdening the financial resources of the WFP.

Individual collection of the monthly dues will be the responsibility of the WUG to be turned over to the

Water Funder who in turn will turn over the fund to KWASA. The WF can be established as a social fund

under the KWASA structure, or in partnership with NGOs. The UPPRP has the potential to be the WFP as

an initiative to complement their current reduction poverty program, within the KWASA service

coverage. The UPPRP can readily absorb low income households as water fund beneficiaries, at the

same time stream line into their poverty reduction program. This partnership will also enhance and

strengthen coordinated efforts between KWASA and UPPRP as the latter has already established social

structures all over Khulna city, making it easier for facilitating social marketing and mobilization of

KWASA’s Community Development Organizers.

(3) Income Enhancement Measures

Although the Project will not directly engage in income generating and livelihood activities for the poor

beneficiaries, however, as part of the community development activities, the Community Development

Specialist of KWASA will work closely with NGOs involved in micro credit and livelihood enhancement

training and link the members of the WUG to these development organizations. This will also assist the

community and the WUGs in addressing affordability and sustainability concerns to pay for the water

bill regularly if they are able to get involved in income supplementing activities.


40

(4) Mobilization of NGO and CBO Support for Poor communities

A number of NGOs are currently operating in the areas which can be tapped to link capacity building

program and income enhancement support for LIHs.

4.6 Social Strategy

The overall objective is to enable the community proximate to the KWASA water supply pipe system,

particularly the vulnerable groups (the poor and women-headed households) to be active in the

development and implementation of the Project. The Poverty Reduction Strategies and Gender Action

Plan will institutionalize and internalize the beneficiary driven approach for sustainable social

development interventions particularly for the women members of households, poor households and

low income households in slum areas.

The Consultation and Participation Plan will be a program to be coordinated by KWASA, implemented by

the Social/Community Development Organizers hired by KWASA under the Customers Relation Unit. An

experienced NGO will be contracted for the first three years of Project implementation to assist the field

staff in the community organization and capacity building activities as well as community level

information campaign on the program.

1. Awareness creation and project dissemination

One of the key elements of the participatory approach is the intensive program of communication

activity to enhance water, hygiene and health awareness. A whole new range of promotional literature

and visual aids will be incorporated in water, sanitation, hygiene and health promotion messages. These

will be produced both for use in training programs and among user groups. Messages on flyers, posters,

and leaflets must be kept simple but with impact: for example: “Conserve Water”. “Water is life”.

Coordinated efforts with mass media and the academe will also be done to include right use of water

and health messages as part of health education in schools. KWASA staff together with the Program

Consultants and the COMREL and the KCC officials/staff at the ward level as well as the WUGs and Ward

Water Supply and Sanitation Committees (WSSC) will work closely with the local officials to undertake a

marketing/information campaign on the new program of KWASA on WSS. The communication materials

and strategy developed by Consultant Specialists will be utilized.

2. Building capacity of WUGs and Committees in low income and slum areas

A major feature of PRS is enabling the WUGs, Committees, and ward officials to plan and implement the

GAP, PRS and CPP in a participatory manner with the participation of beneficiary households, NGOs, and

women. Planning will involve the formulation of strategies to ensure access of services and benefits of

the Project by the poor households in the slum and low-income areas of the wards under the service

coverage of KWASA groups. To sustain affordability and sustainability of services, strategies will be

pursued involving employment provision, capacity building, including improving O&M which eventually

can lead to income generation/income enhancement and monitoring activities especially related to

leakage detection, reporting of illegal connection.


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3. Establishment of Complaints and Response Mechanism at the Ward Level

While KWASA will ultimately be responsible for addressing complaints of customers, the participatory

mechanism will provide a mechanism where at ward CCW level, complaints re service, leakages, billing

and other customer relation matters, could first be heard and possibly mitigated. If the CCW is unable to

provide a solution, the complaint would then be referred to the KWASA zonal team (SocDev/ComDev

Specialist) for appropriate action.

4. Participation in Operation, Maintenance and Monitoring Activities

The WUG will be responsible for collection of monthly dues from individual members and remittance of

payment of the monthly bill to KWASA. Pipe leakages, damage to the communal tap as well as illegal

connection will be monitored at community level and reported to KWASA through an established

system. The WUG elected officers will be responsible for record keeping, updating and maintaining the

books of account for regular reporting to the members. The Project Community Development Specialist

will provide the appropriate trainings to the WUG officials.

5. Develop and establish partnership with other support groups

The water project is closely linked to other sectors such as environmental, health, poverty reduction and

to goals for sustainable urban/rural development. The use of NGOs as partner in water sector is crucial

particularly in addressing gender concerns and poverty reduction. Because of the special character that

places them somewhere in between the public and the private sectors, NGO partners are of great

importance in helping to reach the twin goals of universal water and sanitation coverage towards health

for all, and at the same time addressing poverty reduction program that will contribute to the

sustainability of the project. A list of NGOs has been identified.

4.6. Gender Issues and Concerns:

Adverse impacts and risks from Project related activities faced by women are deemed not very

significant; nonetheless, during Project implementation if there are unforeseen risks identified, proper

measures will be undertaken for their mitigation.

Some of the issues that are common in water projects affecting women are spelled out in Table. 4.1,

along with mitigation measures.


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Table 4.1 Gender Issues and Mitigation

Issues Mitigation Measures

1. Certain categories of women are excluded

from access to water and participation, such as

minority group, women headed households

and very poor households.

Targeting and issuance of ID to particularly vulnerable

women such as minorities and women headed

households, to ensure access to water services.

2. Special needs of women are not met such as;

location, design of facilities, operating hours;

bathing provision, laundry.

Ensure accessibility by consulting with women to agree

on location, design, operation hours, bathing provision

and laundry area.

3. Involvement of women has been limited to

domestic work, physical labor of hauling water,

passive audience for health education;

separate women’s project

Involve women in the operations in maintenance,

collection, promotion of health messages.

Use women as resource persons on health education,

awareness creation

Allow women to assume leadership roles.

Encourage men to support community activities of

women and efforts of women to promote hygiene and

sanitation at home.

4. Workload has been increased by lack of

assistance in water collection and voluntary

labor for community related initiatives.

Community seminar on gender awareness must be

initiated to raise level of awareness of men on the

multi-roles of women in the home.

Men should be encouraged to participate in seminars

and support women, share in household’s tasks as well

as in equal sharing of resources.

5. Loss of productive activities due to time spent

on water collection and other domestic

concerns

Linkages with NGOs to enhance productive capacity of

women, to engage in income generating activities

6. Loss of access to improved water facility due to

distance and cost of water

Participation of women in the selection site that will

proximate water facilities to women.

4.6.1 Gender Action Plan

A Gender Action Plan has been drawn to address gender issues related to water project. Details of the

GAP are attached as Appendix 2.

The objectives of the GAP are as follows:

(i) Increase participation of women in identification of location site for the tap stands,

planning construction, operations and maintenance and monitoring;

(ii) Increase time availability for livelihood opportunities/activities by women as less time

will now be devoted to access water for the households;

(iii) Ensuring reduced wage disparities between women and men for work of equal value

and effective application of core labour standards in Project related work opportunities;

(iv) Women’s effective participation in governance and community decision-making

processes and structures; and


43

(v) Improved gender awareness and capacity among the staff of KWASA, Khulna City

Corporation and the concerned wards.

5. COMMUNITY PARTICIPATION

5.1 Process

During the course of the Study, the consultation took place at ward level participated by various

stakeholders. Community stakeholders include the KWASA, KCC ward officials, NGOs, CBOs, line agency

representatives, poor and vulnerable households, women’s group and residents in low income and slum

areas including local businesses. Consultation began during the preparation of the pre-feasibility study,

which focused on the alternatives for the water supply sources and distribution systems. Further

consultations were carried out to determine the optimal way to enable the poor in slum and low-income

areas to access the KWASA water supply systems. The local stakeholder consultations and focus group

discussions were held to help formulate strategies to ensure coverage and inclusion of the poor in the

Project.

In addition, interviews with key informants (KII) were also done with heads of institutions and

organizations like UPPRP, KCC, CDC, Urban Primary Health Care (UPHC), community leaders and head of

households. Information collected from both FGDs and KIIs were analyzed and processed which formed

the benchmark for the social analysis and in formulation of the GAP and, PRS, and CCP.

An estimated number of 400 persons participated in the FGDs which were conducted from 23rd

September to 3rd October 2010. Of this, about 60% were women. The approach involved open and

participatory method intended to provide a forum for the communities to give their perceptions,

comments, project impacts or risks and recommendations on their specific concerns. The

documentation of this process and list of attendance, and persons met is attached as Appendix 4.

5.2 Highlights of FGD Findings

A summary of findings on the FGD is presented below. A documentation of the FGD exercise is attached

as Appendix 4.

A. Essential Information

• There is generally a signified needs and demand for clean and safe water in the District of

Khulna.

• The main source of water in the target area comprise of deep and shallow hand tube wells

installed by the former KCC, GOs and NGOs. These are used for domestic and drinking

consumption of households. River or pond water is also utilized in other areas for domestic

needs.

• The quality and quantity of water is viewed as poor. The intrusion of sea water affects the

quality of water. Incidence of poisoned water was raised in some area.

• Most common form of water borne diseases includes dysentery, cholera, and typhoid fever.

There are cases of women suffering from urinal infection and reproductive infection.

• Women and children are main carriers of water. Others have to get water from far distance

affecting the health of women and children.

• Many of the water facilities are malfunctioning or out of order resulting to scarcity of water.


44

• Households are generally willing to gain access to piped water which is perceived to bring

several benefits such as: (i) 24 hrs. supply; (ii) sufficient quantity of water; (iii) fresh and potable

water; (iv) free from water born diseases (v) reduced conflicts among the water consumer/user;

(vi) clean environment; (vii) Reduced health related sickness of women due to distance travelled

from collecting water.

• Preference on water service: Majority of the participants opted for communal tap water service

to be shared by 10-12 households. Land owner in the area interested to have individual water

connection for the household. For a cluster of households the probable location of common

water tap should be central point of the cluster and away from the KWASA existing

deep/shallow hand tube wells location.

• Affordability of members reflect their willingness to pay for water service which ranges from Tk.

10-20 per month for public tube wells and Tk 100 per month for piped water.

5.3 Issues Raised

• Lack of access to safe water

• Inadequacy of water supply

• Quality of water is not good

• Poor maintenance of water facility

• Prevalence of water borne diseases

• Affordability level of poor income households

5.4. Recommendations

• Provision of an appropriate, cost effective water service

• Effective operation and maintenance of water facility

• Provision of basic infrastructure facility to access water supply (roads)

• Identification of various categories of water users (poor, extreme poor)

• Conduct skill development activity/programme;

• Create job opportunity for unemployed;

• Create job opportunity for women;

• Control drug and narcotics;

• Education for all;

• To control child marriage, violence against woman, trafficking, dowry;

• Arrangement for old home;

• Campaign for social awareness.

5.5.3 Community Participation Plan

The details of the participatory activities to be undertaken during Project implementation is discussed in

the Community Participation Plan, attached as Appendix 3. The ADB’s Policy on social safeguard

advocates open public consultation of stakeholders to achieve the following objectives. (i) involvement

of stakeholders (men and women) in water project development planning and enable them to


45

participate in the assessment of impacts and risks (ii) participate in making decision that affects their

lives (iii) understand the role of men and women in the implementation of the Project.

6. CONCLUSIONS AND RECOMMENDATIONS

6.1 SUMMARY of Findings

1. Maximum demand at minimum cost

The social assessment showed high acceptability and social viability as affirmed by the FGDs and

Consumer’s Survey. There is a clear demand for improved water supply as over 90% of households

affirmed and indicated their interest to connect to KWASA piped water system. The existing major water

sources, which are the KWASA piped water, public tube wells and private wells are inadequate to meet

the demand of the public in the coming years.

The potential population to be served by the Project is estimated at over 200,000 by 2017. Of these,

about 22 % belong to slums income households. Average consumption of households on water is

estimated at about 20-25l/c/d.

Corollary to the various options for water supply, affordability of water connections and rate of monthly

bill for most of these low income and slum communities is the major deterrent to connection and

willingness to pay. Study has shown that connection fee of 3,000 is beyond the budget of the poor

households; more than 100 taka of monthly bill will also deter many of the households from connecting.

51% of the surveyed households are considered as poor and extreme poor indicating a per capita

income below the national threshold which Tk5, 000/month.

However, a significant finding on this survey is that, although there is a high percentage (51%) of poor

and extreme poor households, people are still willing to appropriate a budget at maximum Tk 100 per

month and a connection fee of Tk 1000 in order to obtain safe and secure water supply.

2. Preference on water sources is based on adequacy, affordability, accessibility and availability of

water at all times.

There are basically two major water sources used by the majority of households; i.e. public tube well

and private tube well. Most of the poor households in slum communities access their water from these

sources which are viewed as affordable, convenient and adequate in supply. KWASA’s current piped

water is considered as inadequate and often fails to deliver water. However, bulk connection to a

registered community organization in slum areas, which will manage the delivery through a communal

tap stand, is viewed as acceptable. The management of community water tap such as collection and

maintenance can be done by the WUG.

The willingness to pay for piped water is on average Tk100/month/household. Given an average

consumption of 20m3/household, cost of water is about Tk10/m3. This amount is reasonably affordable

to 70 percent of households in all categories.

3. Wide range of significant benefits


46

The project is viewed as an initiative with a wide range of beneficial impacts. It will have major beneficial

impact on the health and sanitation condition in the households and communities which would have

positive impact on improving man-hours for productive endeavors and translate into savings in medical

and health expenditure related to water borne diseases. Likewise, during construction period of piping

and tap installation, the poor may directly or indirectly benefit. Civil works will create short-term job

opportunities, and general promotion of economic activities will expand the job market in the longer

term.

4. Significant gender impact

While both women and men are more likely to benefit from the planned WSS upgrading, the Project has

the potential to contribute to the general wellbeing of women especially of poor households in the slum

and low-income areas. Women and girls who are usually the ones responsible for obtaining water from

various sources sometimes far from their place of domicile will now have more time for other

community activities. Women in the low income and slum communities are also more likely to have

increased health benefit due to improvements and availability of safe water. Furthermore, women of

poor households will be empowered through participation in Project planning and decision-making,

capacity building interventions and access to project related employment opportunities. Socioeconomic

development

Benefits women may receive with improved or new water and sanitation facilities can be classified into

health and socioeconomic categories. Water sources that are closer to homes and that provide an

adequate supply can decrease collection time. This will lead to economic gains in both time and energy

which can be utilized for other productive activity and enhance family income.

Adverse impacts and risks from Project related activities faced by women are deemed not significant;

nonetheless, during Project implementation if there are unforeseen risks identified, proper measures

will be undertaken for their mitigation.

Some of the prevailing issues that are common in water projects affecting women are spelled out in the

Table below along with mitigation measures. Strategies to address gender concerns are provided in the

Gender Action Plan (Appendix 2). Signified willingness and participation of development partners

NGOs have grown to a level where today they are an accepted feature of the administrative landscape.

Because of the special character that places them somewhere in between the public and the private

sectors, NGO partners are of great importance in helping to reach the twin goals of universal water and

sanitation coverage towards health for all.

There are a number of NGOs operating in the area that provide support on water and sanitation projects

to underpin other income generating and health related schemes. There are about 32 local institutions

and NGOs operating within Khulna. These NGOs are undertaking several development initiatives which

can be linked with the water project.

In particular, the UPPRP has signified their willingness to become partner with KWASA by funding line

connections of poor households to the water tap or network. UPPRP has also the potential to assist in

the delivery of community based water management through their existing community development

committees (CDCs) which has been established in 31 wards of Khulna.


47

Recommendations


The main purpose is to increase access of poor households to water services. The identification and

targeting criteria of poor and extreme poor households have been developed following the approach

and methods developed under the ADB financed 2nd Urban Primary Health Care Project (2005)

complemented by the methodology used in the UPPRP where community members themselves identify

the extreme poor and poor households using a set of criteria similar to the ones suggested in the

2UPHCP.

The community members assisted by an NGO and KWASA community development officer needs to

undertake the identification of vulnerable target beneficiaries where 10-12 such households proximate

to each other will form a water user association to be officially registered with the ward office as a legal

community based organization. It is necessary that Community Development Specialists will be assigned

(5 wards each) to develop action plan, immerse in the community and work with the WUG in addressing

water issues and identify community resources.

To include low income households gain accessibility to water is through a provision of a communal tap

system which can be shared by 10-12 households. A one time connection fee can be subsumed and/or a

portion to be shouldered by the group of households and amortized over a certain period. Monthly bill

of not more than 100 taka per household could be charged for a bulk delivery on a guaranteed quantity

and quality per water user group.

When considering a tariff associated solely with water supply, the Project can establish a tariff structure

which supports the social objectives of income redistribution quite readily.

One way is to provide fixed rate for a consumption of say 20-25 l/c/d for all consumers at a price less

than the average cost of supply.

For LIC, the installation of common water points, community stand-posts / hydrants / standpipe should

also be metered and responsibility given to a local WUG for operating and maintaining the unit and

collecting monthly tariff.

The establishment of a Water Fund especially for the extreme poor can also be a workable alternative to

provide access of extreme poor who cannot afford connection. The Water Fund Provider can also

provide immediate recovery of connection costs. A Water fund can be worked out with an existing

program of NGOs or the UPPRP who are able to provide the initial capital to for low income beneficiary

households make a certain number of connections per year. The beneficiary consumer is then billed the

full costs of the connection in equal monthly instalment over several months, including an interest

charge of normal commercial rates in addition to the normal bill for consumption. The Water fund then

becomes self-supporting without burdening the financial resources of the water fund provider.

Individual collection of the monthly dues will be the responsibility of the WUG to be turned over to the

water funder. This strategy will require very intensive social//community development support program

in terms of organization of the households, capacity building for O&M and monitoring activities. The

UPPRP has already established this type of community development program covering the 31 wards of

Khulna, carried out by through the CDCs and coordination with the CDCs will significantly be beneficial.


48

4. Building on options and preferences of the community

Field visit has shown that for many poor households in slum communities, individual connection is

impractical and connection fee is unaffordable. It will also need to deal with issues of tenure and

permanency of resident status of concerned households. It has also been observed that most of such

areas have very little space for having independent water supply connections.

Therefore, in such cases it is imperative that an approach needs to be developed to install common

water points – community stand-posts / hydrants / standpipes. Such common facilities should also be

metered and responsibility given to a local WUG for operating and maintaining the unit and collecting

monthly tariff. A standard set of designs suitable for specific LIC or slum areas should be developed and

numbers estimated for investment purposes.

In areas where piped water can no longer be served, culturally acceptable technology of water facility in

preference expressed tube wells where they are predominant and extensively used among low income

groups. It offers advantages of convenience, reliability, convenience and affordability. The UPPRP can

also be tapped to provide hand pump tube well to areas where individual connection is not advisable.

5. Increase participation and involvement of the community in the planning, implementation and

M&E.

The risks of formulating interventions not appropriate to the local situation and divergent from the

needs and priorities of the local population must be addressed through regular consultation and

participation. This activity will have to be facilitated by the Community Development Specialist, who will

immerse in the area for a period of 6 months. The consultations and participatory processes will have to

start from the bridging period up to Project implementation and the CDS will ensure that the

Consultation and Participation Plan is implemented. The presence of the CDS in the area will motivate

the community to create awareness, take action that respond to their immediate and long term needs.

Some areas that need to be strengthened are on water conservation, preservation and sanitation at

household level. It is expected that the availability of safe and adequate water will change in health

behaviour, as women and children pay more attention to hygiene and sanitation. Water of a better

quality which remains uncontaminated helps to decrease water-related diseases which are prevalent in

the slum areas.

However, the health gains so confidently anticipated in water program has yet to be realized. The FGD

results indicated that water borne diseases continuous to be prevalent even in areas where there are

existing tube wells. The problem is that, drinking tube well water will not necessarily protect health

unless there is parallel health education and improvement in environmental sanitation and hygiene

awareness. In water projects, there is ample evidence to show that unless water sanitation and hygiene

education go together, the health impact of improved water facilities may be lost.

This is the challenge that the Project will have to address and the CDS, together with the community,

particularly women, will take the lead to ensure the proper use of water along with application of

proper hygiene if improvement on health status will be achieved.


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6. Enhancing productive capacities and involvement of women

Gender considerations are important at community level where partnership approach depends on all

potential beneficiaries having a say in water project. If women are to make their full contribution to the

project, they must be involved also in decision making and other responsibilities in the project such as

selection of site, operations and maintenance, monitoring and evaluation. The broad field of gender

issues focuses on the roles and tasks of men and women and in what ways they interact to make

decisions and share responsibilities. The focus on gender recognizes the fact that full benefits only

accrue from improved water when men are encouraged to become also involved in supporting women,

allow women to participate in management committees and in operations and maintenance. Project

contribution of time, labor and money need to be shared fairly and not expected of women alone.

Likewise, to involve women create sustainable water system and reach the poorest, program on water

must include or linked to economic development and poverty reduction program. If the Project expects

poor people, especially women to pay for water, initiative to create opportunities for productive

capacities must be incorporated as a part of the Project framework.

The role of the Gender Specialist is important in undertaking the above activities and in the

implementation of the Gender Action Plan (Appendix 2) attached in this document.


The water project is closely linked to other sectors such as environmental, health, poverty reduction and

to goals for sustainable urban/rural development. The use of NGOs as partner in water sector is crucial

particularly in addressing gender concerns and poverty reduction.

In terms of addressing health and sanitation, the Urban Primary health Care Project (UPHCP) deals with

various programs which include maternal child care, reproductive health, sanitation and nutrition. This

government program could be tapped for linking water with health and sanitation.



sanitation coverage towards health for all, and at the same time addressing poverty reduction program

that will contribute to the sustainability of the project. A list of NGOs has been identified. In particular,

partnership with the UPPRP for joint financial funding of provision of tube wells, as well as funding

connection of water pipe from tap stand to the residence in the slum areas must be sustained.

A list of NGOs is provided where linkages can be organized by the Community Development Organizer.


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Appendix 1 – Summary Poverty Reduction and Social

I. POVERTY ANALYSIS AND STRATEGY A. Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy

The program of Bangladesh on poverty reduction is reflected in the government’s National Strategy for Accelerated Poverty Reduction (NSAPR). The strategy highlights a holistic programmatic approach which includes provision of civic amenities, public transportation, employment generation, basic infrastructure facilities and water and sanitation. One of the GoB’s current initiatives is focused on expanding water services in urban areas specifically in Dhaka and Khulna. The GoB’s approach puts emphasis on building capacity of local governance and the involvement and participation of communities and local organization to sustain development initiatives particularly in water and sanitation.

The NSAPR is in line with the country strategy and program of the Asian Development Bank (ADB) for Bangladesh (2006-2010), within the framework of urban water supply and sanitation sector, which play a very significant role in achieving the envisaged economic growth and poverty reduction program of Bangladesh. In particular, the objectives of the KWASA Project aim to provide clean, safe and affordable water to all Khulna residents. Various socioeconomic, health and environmental benefits are expected to significantly contribute to the overall improvement on the quality of life the populace, which is also in line with the ADB’s and the GOB’s program towards attaining water for all and poverty reduction.

B. Poverty Analysis Targeting Classification: General

Key Issues: While poverty incidence in Bangladesh is decreasing in absolute terms, the number of urban poor grows with the rapid urbanization. Employment opportunity draws large migration from rural areas to cities, resulting in expansion of slums under ineffective urban planning and control. Of the urban population, 45% lives in poverty and 25% is classified as extremely poor (defined by consumption of less than 1,805 kilocalories per day). Poor urban infrastructure such as inadequate drainage, water supply, and sanitation often exposes the population to public and environmental health hazards. Most urban poor live in slums without access to basic services like water, sanitation, and energy. Most low-income groups are migrants from rural areas and rely on informal and unsecured income sources. The ready-made garment industries employ a large proportion of these urban poor and the majority of them are women. Lack of awareness and measures to control household and industrial waste have become a major cause of pollution in the urban areas. The city corporations and pourashavas often do not have enough capacity and proper mechanisms to deal with the needs of the poor and women.

B.2 Poverty Indicators

In Khulna City, findings from reviews and the Consumers Survey reveal the dimensions of poverty.

(i) Limited land ownership and permanent housing

Almost 80% of the slum clusters (520) in KCC were established on privately owned land. About 12.5% are on public land while the rest are on land owned by other organizations. Of the total slum population, 54.3%, 27.1% and 18.6% are located in private, public and other land category, respectively. Out of the total slum households, 59.4% rent their residence, 17.4% owned them while 23.1% are rent-free.


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(ii) Poor Housing structures

The Consumer’s Survey (2010) indicates that 51% of the survey households live in poor housing structure. Housing materials of the extreme poor (22.5%) are made of tin sheets while the poor (28.9%) are made of combined or unfinished cement and low quality wood.

(iii) Low access to piped water and sanitation services

While there are varied sources of water, the majority of the poor households in slum communities access their drinking water from shared public (59.1%) and private hand tube wells (38.4%). The Consumers Survey showed that, of the 3006 households surveyed, only 913 (30%) households have got connections to piped water. Of this (30%) only 7% of the extreme poor and 41% of the poor households have got connections. Several reasons were cited for not getting connected to piped water such as distance of the house to the network (69%) and, (ii) poor quality of water which is viewed by 71% of the respondents. Poor households result to using water from public and private tube wells. However, the quality of water in some of the tube wells is not fit to drink. The intrusion of sea water affects the quality of water giving a saline taste. Incidence of poisoned water (presence of arsenic) was raised in other areas. Some private hand tube wells are over 12 years and water coming has accompanied iron content. Field assessment has shown that for many poor households in slum communities, individual connection is impractical. The household’s dwelling is normally a one-room unit used primarily for sleeping by 5-6 members. Cooking, bathing, toilet and sanitation facilities are communal in a separate corner of the residential compound. (iv) Prevalence of water borne diseases in slum areas affecting women and children

The FGDs affirmed that the most common form of water borne diseases which are prevalent in slum areas include dysentery, cholera, and typhoid fever. There are cases of women suffering from urinal infection and reproductive health infection. When the existing water facilities malfunction, women and children who are the main carriers of water had to travel long distance to fetch water and this has a bearing on the reproductive health of women.

(v) Low Income

The Consumers Survey reveals that the majority of households (37%) earn between Tk 5000-10,000 per month. According to national standard, the poverty line is set at TK 5,000 (US$71.4). Given this figure shows that an overall 41% of the respondents fall below the poverty line. Assuming an average of TK 5000 per month for poor households and with an average family size of 5.8 (applicable for poor households) gives an average of TK862 (US $12.3)/capita per month or TK 28.7(US$.41) per capita per day. This amount is not sufficient to meet the daily (3 meals) nutritional requirement of poor households.

(vi) Low access to education

Access to regular employment is constrained by low level of education which is high among the extreme poor and poor households. 13% of the extreme poor have not been to school, and very few (9%) has reached high school. Access to education as it reaches higher level is rather limited to both extreme poor and poor households.

Consumer’s Survey 2010 Sampling size: 51,370

Indicator: Housing structure Category No %

Tin sheets (extreme poor)

11,581 22.5

Semi Pucca (poor) 14,885 28.9 Pucca (above poor) 24,904 48.6


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(vii) Low access to regular employment

Access to regular employment is again low among the extreme poor (19%) poor (32%) is also low. Apparently, the findings show that the lack of adequate education among the extreme poor and poor households inhibits them from gaining access to regular jobs in the formal sector. The majority among the extreme poor (30%), poor (33%) are housewives which are considered as an occupation. The FGD affirmed that housewives, aside from doing domestic work are also engaged in varied forms of income generation activities to supplement family needs, such as housemaids, tailoring, embroidery, poultry, animal husbandry, batik making, goat raising, and home based cottage industry. Home based income generating activity comprise of cloth or garment making, raising animals, small restaurant, etc. Other common forms of work among the extreme poor and poor households include laborer (12%), rickshaw puller (2%) farmers (5%).

Key Issues

(i) Affordability and willingness to pay

Corollary to the options for water supply, affordability of water connections and rate of monthly bill for the

majority of low income and slum communities is the major deterrent to connection and willingness to pay. The

signified willingness to pay is not more the Tk 100/month for extreme poor and poor households.

The Consumer’s Survey results show that, overall, the three categories of water consumers can be classified as follows:

a) Extreme poor – households living below TK 2,500, (11.4%) of the target consumer population. Over 50% of these households cannot afford to pay for connection and water bill exceeding Tk100.

b) Poor households - households living below Tk 5,000, (28.9%). Over 40% of these households can less afford to pay for connection of over Tk1, 000 and water bill exceeding Tk100.

c) Above poor- estimated at 48.6%. These are households whose income are over TK5, 000 and can afford to pay for water services.

The focus of the PRS is to maximize water service coverage and define strategies for inclusion of categories (a) and (b) to the KWASA project.

(ii) Access of low-income households to piped water

Access to piped water is constrained by limited housing space, distance and capacity to pay. This is also constrained by issues on land tenure thus limiting permanent connection to piped water

Design Features

From the outcome of the Consumers Survey and FGD, it is clear that the intent of the citizens of Khulna is to get connected to KWASA network through individual connection or cheaper yard connection. Both positive and negative impacts are affected as a result of the project. Positive impacts of the Project include:

(i) Improved access to safe water at affordable costs - the primary mechanism through which benefits will


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accrue to the poor is by the potential savings derived from less medical expenses as access to safe water will result in less exposure to water borne diseases.

(ii) Enhanced economic impact - improved health condition and general well being of the household members will result into more economic productivity. The saved time and energy gains or surplus water for an improved water supply can be utilized by women for work in agriculture, horticulture, dairying, and animal raising which is common income generating activities of women. These will enhance their productive capacities and contribute to family income.

(iii) Enhanced employment and Income Generation - employment opportunities will open for unskilled as well as skilled labor during construction. Specific measures will be taken by KWASA (the executing agency) to ensure the enforcement of CLS by the contractor on the work camps/sites. Indirect employment opportunities will arise from better infrastructure facilities.

(iv) Equitable distribution of contributions and benefits- derived from increased earnings for men and women resulting from construction employment generated by the project.

The design for the water provision for low income households among others shall include:

(i) Community based water management of communal tap stand system

For LIC, the installation of common water points, community stand-posts / hydrants / standpipe should be metered and responsibility given to a local WUG for operating and maintaining the unit and collecting monthly tariff. The cost of connection can be shared by WUGs. To ensure that water consumption does not exceed a certain quantity per month charged at a fixed price, a flow limiting device is an alternative for low volume or higher rates for metered volumes if household chooses to increase his consumption. KWASA will provide a communal tap system which can be shared by 10-12 households. A one time connection fee can be subsumed and/or a portion to be shouldered by the group of households and amortized over a certain period. Monthly bill of not more than 100 taka per household could be charged for a fixed volume quantity per water user group say 20m3/month. The Consumer Survey Report (2009) estimated that approximately 20% of the potential costumers of KWASA are the unconnected poor households in slum areas and low-income areas. Based on a population growth projection for 2017, there will be approximately over 20,000 such households requiring connection to safe water. With 10-12 households per communal tap, the Project will need to organize over 2,000 water user associations by 2017 which translates to the same amount of water tap stand.

(ii) Fixed rate at subsidized cost for individual connection of poor households

When considering a tariff associated solely with water supply, the Project can establish a tariff structure which supports the social objectives of income redistribution quite readily. For individual connection, one way is to provide a fixed rate for a consumption of say 20-25 l/c/d for all consumers at a price less than the average cost of supply. Individuals connected to water piped could also sell water to unconnected individual households, at a fixed rate agreed by water user and seller.

(iii) Delivery of bulk water in high capacity storage or mobile tanks

For low income areas where connection to the network is not feasible, the provision of bulk supply of water to community based organization adjacent to the KWASA pipe system will be provided through mobile water tanks or fixed large volume capacity storage tanks. Similar to the community based management of communal taps, collection and maintenance will be managed by the WUG and cost of water will also be charged at fixed rate using per litre container, or by using a flow limiting device. Cost of water will be at subsidized rate to be recovered partially from lower O&M.


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Poverty Impact Analysis

While the project provides with wide ranging significant benefits and positive impacts, the capacity to pay and affordability of water tariff particularly to extreme poor and poor households connotes negative impact. An analysis on affordability to piped water to determine peoples’ affordability is shown in two scenarios. The minimum cost for a house connection can be calculated as follows: Scenario A Connection Fee (1,000)

Connection fee ( start up investment cost of HHs Tk 1,000 HHs current budget for water (minimum of 20m3 @ 6.33/m3 Tk 127 Total budget of water for one year ( 12X Tk 127) Tk 1296 Total investment for 1 year Tk 2423

Scenario B Connection (Tk 300) - Assumption

Current budget for water represents only 1 percent of household expenses which is estimated at Tk127 for 20m3. It is clear that the connection fee in Scenario 1 places a burden on households, particularly for the extreme poor and poor since it forms 46.5% higher than the budget appropriated for water for the first year. On the other hand, if the connection fee is lowered by 70%, assuming that Project pays for connection, households are able to maintain their current budget for one year with only 30% additional cost for connection. The Consumers Survey indicates that about 59% of the population have a monthly income of more than Tk5, 000/month or Tk60, 000/per annum. These households may be considered as having capacity to pay for house connection. Under Scenario A, the total costs of a house connection plus water bill during the first year amounts to TK2, 423. This is about 4% of the annual income of Tk60, 000. This amount is affordable to 59% of households but unaffordable to 41% of the extreme poor and poor. On the other hand, under Scenario B, the total costs of a house connection plus water bill during the first year

amounts to TK 1,723. This is only about 2.8% of the annual income of Tk60, 000 per month, and is considered

as more affordable for the low income households.

Measures:

It is clear that a fixed rate of TK 100 with a connection fee of Tk 300 will enable all categories of households to

gain access to KWASA network. Reduction of cost to an affordable rate while equally recovering costs will

maximize access of poor households to safe water thus achieving the project’s objectives. Addressing the

above measure would require policy action from KWASA.

C. Poverty Reduction Strategy


Connection fee ( start up investment cost of HHs Tk 300

HHs current budget for water ( minimum of 20m3 (6.33/m3

Tk 127

Total budget of water for one year ( 12X Tk 127) Tk 1296 Total investment for 1 year Tk 1723


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The main purpose is to increase access of poor households to water services. The identification and targeting

criteria of poor and extreme poor households have been developed following the approach and methods

developed under the ADB financed 2nd Urban Primary Health Care Project (2005) complemented by the

methodology used in the UPPRP where community members themselves identify the extreme poor and poor

households using a set of criteria similar to the ones suggested in the 2UPHCP. The following indicators define

the extreme poor and poor households, which can be applied for the Project.

a. More than 6 people dependent on one earning member b. Has 3 children of less than 5 years old c. Child labour of less than 15 years age works for full day d. Age of family’s main income earner is more than 60 years e. Female headed households f. Have disabled family member g. Suffering from prolonged ailment h. Have drug addicted member of the family i. All family members above 16 years of age are illiterate j. Have school age children but not going to school or is a drop out k. Lack of access to safe drinking water l. Lack of access to sanitary latrine m. Live in hut (made of hay, thatch, polythene). Continuously afraid of eviction. n. Culturally or socially isolated family.

2. Establishment of a Water Fund Provider (WFP)

The establishment of a Water Fund Provider (WFP) especially for the extreme poor can also be a workable alternative to provide access of extreme poor to KWASA network who cannot afford connection. The WFP can also provide immediate recovery of connection costs to KWASA. The Water Fund can be established as a social fund under the KWASA structure, or in partnership with NGOs with poverty reduction program which are able to provide the initial capital for loan assistance to low income households, make a certain number of connections per year. The beneficiary consumer is then billed the full costs of the connection in equal monthly instalment over several months, including an interest charge of normal commercial rates in addition to the normal bill for consumption. The Water Fund then becomes self-supporting without burdening the financial resources of the WFP.

Individual collection of the monthly dues will be the responsibility of the WUG to be turned over to the Water Funder who in turn will turn over the fund to KWASA. 3. Income Enhancement Measures

Although the Project will not directly engage in income generating and livelihood activities for the poor beneficiaries, however, as part of the community development activities, the Community Development Specialist of KWASA will work closely with NGOs involved in micro credit and livelihood enhancement training and link the members of the WUG to these development organizations. This will also assist the community and the WUGs in addressing affordability and sustainability concerns to pay for the water bill regularly if they are able to get involved in income supplementing activities. 4. Mobilization of NGO and CBO Support for Poor communities

A number of NGOs are currently operating in the areas which can be tapped to link capacity building program and income enhancement support for LIHs.


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II. SOCIAL ANALYSIS AND STRATEGY

Findings of Social Analysis

A social analysis was carried out for the project through a sample socioeconomic baseline survey covering approximately 3,000 households. Close to 11% of residents of the surveyed households are migrants, and 89% are locals. Household heads are mainly self-employed or have jobs in private and public offices. Average size of households among extreme poor is 7.23; poor 5.84; and above poor 4.59. More than half (57%) live in their own houses, one-third in rented houses, and 9% on government land. About 96% of households have electricity with unreliable supply and 76% have gas connections. Residents depend on piped water supply, hand tube wells, street hydrant/community taps, pond/canal for bathing, and public hand tube wells. Residents complained about inadequate supply of piped water and street hydrants/taps, and supply is still lower in slums. Average consumption of households on water is estimated at about 20-25l/c/d. The SPA reveals that the pattern of consumption and management of water between the extreme poor, poor and above poor varies. Above poor have higher consumption level due to various factors like having a car to wash, maintaining a garden, flush toilets, laundry which could readily consume over 120 lc/d. On the other hand, the poor and extreme poor do not have the luxuries that above poor have, thus having less consumption. Low income people in slum areas are forced to limit consumption because of the lack of an interior plumbing system and an ability to dispose of waste water created by uncontrolled consumption.

The majority (37%) of families use private pit latrines. Lack of sewerage and drainage creates environmental health hazards. To varying degrees, most households experience common problems such as unreliable power/gas supply; pollution and unhygienic urban environment; traffic congestion; inadequate water supply; poor drainage, sewerage and waste management; and poor government/municipality services.

A high percentage (58%) has reached primary (35%) and secondary (23%) education. Some 20% have obtained college education. Some 13% of the “extreme poor” and “poor” have never attended school.

Household expenses are higher than household income. In comparison to household expenses, “extreme poor”

households spend about Tk 5,381/month. Assuming an income of Tk2, 500 for extreme poor reveals that

expenses are 1.15 % higher than income. This is slightly lower than the national average which is set at 1.17%

higher. On the other hand, the “poor” households spend Tk8, 292 per month. Assuming an average of TK3,

000 per month, shows that expenditure is 1.17 higher, which is consistent with the national figure.

Because of lack of income, households result to debts or loans. The findings showed that aside from food

which ranks first among household expenses of the extreme poor and poor households, this is followed closely

by repayment of loans.

Overall, the first three important priorities of the extreme poor in terms of expenses are: food (51%), followed by

repayment of loans (19%) and education (14%). The remaining amount is allotted almost equally in other items

such as clothing (5%) housing (4%) medical bills (5%), transportation, and fuel (5%) electricity (3%).

Overall, the social assessment showed high acceptability and social viability as affirmed by the FGDs and Consumer’s Survey. There is a clear demand for improved water supply as over 90% of households affirmed and indicated their interest to connect to KWASA piped water system. The existing major water sources, which are the KWASA piped water, public tube wells and private wells are inadequate to meet the demand of the public in the coming years.


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The potential population to be served by the Project is estimated at over 200,000 by 2017. Of these, about 22 % belong to slums income households. Average consumption of households on water is estimated at about 20-25l/c/d.

Corollary to the various options for water supply, affordability of water connections and rate of monthly bill for most of these low income and slum communities is the major deterrent to connection and willingness to pay. Study has shown that connection fee of over Tk1,000 is beyond the budget of the poor households; more than 100 taka of monthly bill will also deter many of the households from connecting. 51% of the surveyed households are considered as poor and extreme poor indicating a per capita income below the national threshold which Tk5, 000/month.

However, a significant finding on this survey is that, although there is a high percentage (51%) of poor and extreme poor households, people are still willing to appropriate a budget at maximum Tk 100 per month and a connection fee of Tk 1000 in order to obtain safe and secure water supply.

Key Issues

(i) Social Equity

Most often the objectives related to social equity has become a controversial argument especially when it relates to cost of water. Arguments on water tariff is based on the premise that water is an indispensable need therefore should be provided at a lower cost and subsidized for all income groups or free to the poorest of the poor. While it is true that water itself is free, the services of bringing good quality water to the doorstep with 24 hours service definitely incurs cost. The government often cannot afford to subsidize the price of water in addition to supplying services in other sectors due to factors like increase in energy cost, operating costs, etc. Subsiding cost often result to more volume of water used but low recovery which results to another problem of low maintenance on water services. Once maintenance breaks down and quality is sacrificed, people would be reluctant to pay for water bills.

(ii) Unsanitary health practices in slum areas

Unsanitary environmental condition and practices are dominant in slum condition due to lack of efficient domestic wastewater management. There is prevalence of water borne diseases occurring in the area which is triggered not only by unsafe water but the lack of sanitary and hygiene practices. A. Social Strategy

The overall objective is to enable the community proximate to the KWASA water supply pipe system, particularly the vulnerable groups, to be active in the development and implementation of the Project. The Poverty Reduction Strategies and Gender Action Plan will institutionalize and internalize the beneficiary driven approach for sustainable social development interventions particularly for the women members of households, poor households, IPs (if any) and low income households in slum areas. The Consultation and Participation Plan (CPP) will be a program to be coordinated by KWASA, implemented by the Social/Community Development Organizers hired by KWASA under the Customers Relation Unit. An experienced NGO will be contracted for the first three years of Project implementation to assist the field staff in the community organization and capacity building activities as well as community level information campaign on the program.

1. Awareness creation and project dissemination


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One of the key elements of the participatory strategy is the intensive program of communication activity to enhance water, hygiene and health awareness. A whole new range of promotional literature and visual aids will be incorporated in water, sanitation, hygiene and health promotion messages. These will be produced both for use in training programs and among user groups. Messages on flyers, posters, and leaflets must be kept simple but with impact, for example: “Conserve Water”. “Water is life”. Coordinated efforts with mass media and the academe will also be done to include right use of water and health messages as part of health education in schools. KWASA staff together with the Program Consultants and the COMREL and the KCC officials/staff at the ward level as well as the WUGs and Ward Water Supply and Sanitation Committees (WSSC) will work closely with the local officials to undertake a marketing/information campaign on the new program of KWASA on WSS. The communication materials and strategy developed by Consultant Specialists will be utilized for this purpose.

2. Building capacity of WUGs and Committees in low income and slum areas

A major feature of PRS is enabling the WUGs, Committees, and ward officials to plan and implement the GAP, PRS and CPP in a participatory manner with the participation of beneficiary households, NGOs, and women. Planning will involve the formulation of strategies to ensure access of services and benefits of the Project by the poor households in the slum and low-income areas of the wards under the service coverage of KWASA groups. To sustain affordability and sustainability of services, strategies will be pursued involving employment provision, capacity building, including improving O&M which eventually can lead to income generation/income enhancement and monitoring activities especially related to leakage detection, and reporting of illegal connection. 3. Establishment of Complaints and Response Mechanism at the Ward Level

While KWASA will ultimately be responsible for addressing complaints of customers, the participatory mechanism will provide a mechanism where at ward CCW level, complaints regarding service, leakages, billing and other customer relation matters, could first be heard and possibly mitigated. If the CCW is unable to provide a solution, the complaint would then be referred to the KWASA zonal team (SocDev/ComDev Specialist) for appropriate action. 4. Participation in Operation, Maintenance and Monitoring Activities

The WUG will be responsible for collection of monthly dues from individual members and remittance of payment of the monthly bill to KWASA. Pipe leakages, damage to the communal tap as well as illegal connection will be monitored at community level and reported to KWASA through an established system. The WUG elected officers will be responsible for record keeping, updating and maintaining the books of account for regular reporting to the members. The Project Community Development Specialist will provide the appropriate trainings to the WUG officials.


The water project is closely linked to other sectors such as environmental, health, poverty reduction and to goals for sustainable urban/rural development. The use of NGOs as partner in water sector is crucial particularly in addressing gender concerns and poverty reduction. Because of the special character that places them somewhere in between the public and the private sectors, NGO partners are of great importance in helping to reach the twin goals of universal water and sanitation coverage towards health for all, and at the same time addressing poverty reduction program that will contribute to the sustainability of the project. A list of NGOs has been identified.


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Overall, the above strategies will require very intensive social/community development support program in terms of organization of the households, capacity building for O&M and monitoring activities. The expertise of the Community Development Specialist / Organizers and Community Facilitators will be needed to mobilize communities, access resources and link these resources to support low income households increase their income to sustain not only the cost of water but other needs as well. B. Consultation and Participation 1. Provide a summary of the consultation and participation process during project preparation. Consultations were carried out with all stakeholders during project preparation through interviews, public meetings, focus group discussions and workshops. As integral part of the planning of safeguards, slum communities and other stakeholders were consulted during project preparation and design. Local communities, local government units, and government agencies were all involved throughout the preparation process to minimize negative impacts, ensure social acceptance, and increase community participation to ensure inclusion of the poor households in the slum area for potential coverage. Consultations were also held with emphasis on vulnerable groups and women, and played a vital role in raising awareness, gaining local support, and enabling affected people to voice their opinions and suggestions on project design and implementation. 2. What level of consultation and participation (C&P) is envisaged during implementation and monitoring? Selection and implementation of appropriate water supply system for the poor households will be done in a participatory manner. Identification and targeting of the beneficiary households will be community based with the Water User Associations and WSS committees involved in the process. The budget for C&P is integrated in the project consultancy budget. Views and concerns of all stakeholders will be taken into account in planning, implementation, management, and local governance through coordination committees at zonal and wards. Vulnerable groups, such as women and poor, will be properly represented in these committees. The update of the KWASA WSS Plan will be done in full consultations with citizens in the target area. 3. Was a C&P Plan prepared? YES, attached as Appendix 3. C. Gender and Development

Despite recent gains for women in the economic and social development of Bangladesh, women still remain particularly vulnerable to poverty. In urban areas, it is women who are responsible for managing water and waste in the households, and poor women are mostly engaged in informal waste-picking and recycling activities for their livelihood. Participation of women in stable, skilled jobs is low. The migrant women living in slums suffer from insecurity and inadequate services. Low standards of public and environmental health are a particular concern for women, as they are caretakers of household health. Khulna city offers a wide range of opportunities as an industrial zone, only a small portion of women have access to regular employment. As an alternative, women most often avail of micro credit programs and involved in other forms of work such as housemaids, sewing, raising poultry, embroidery, beef fattening, goat raising, small cottage industry (cloth, fire wood, cake, handicrafts, paper bag.) The multi roles that women function such as raising children, fetching water, doing domestic work and helping augment family income places a burden on women, which inevitably affects their health. The FGD affirmed that women suffer from various ailments affecting their reproductive health. The input of women in identifying community priorities is still limited, although the emerging citizens’ committees with female representation will boost women’s role in decision making. Women in the urban households have equal voices in decision-making. However, in the wards and community administrative system, women’s role appears to be limited by cultural/religious attitude. Efforts had been undertaken to address such imbalance and now aside from the ward commissioners there are now 10 positions for women councilors designated to take charge of women affairs in 2-3 wards per woman commissioner. However, aside from these formal elected positions, actual participation in decision-making by women in community


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administration continuous to be limited and need to be addressed.

1. Key Issues

Gender Disparity. Various aspects of gender bias and discrimination in the area of education, employment and income, household roles and decision-making exist in the proposed Project areas. There is a higher proportion of female who are illiterate and functionally literate compared to the male. In terms of educational attainment, the proportion of men and women who have obtained or finished lower level of education appears to be equal primarily because of the national government’s interventions; however, at the higher level, the gender disparity becomes apparent again: more males have attained or finished Bachelor’s degree and/or post-graduate level than the females. In the area of employment, the situation appears to be no better. While women constitute almost half of the total labor force, only minor percentage is gainfully employed in the formal labor sector. The average annual income of female-headed households is usually lower compared to the male-headed households. Accordingly, the proportion of female-headed households who are below the poverty cut-off lines is very much higher than the male-headed households. On decision-making at the household level, the male is primarily responsible, except in female-headed households. But even there, the female head has to often consult with the male adult member of the households on major decision areas. Water collection and water/sanitation management at the HH and community levels are the traditional roles of women in the country. Because of this gender role and expectation, women had become more vulnerable to health risks imminent due to hygiene and sanitation resulting from the water supply and sanitation situation in the households and the community. They endure the high possibility of poisoning and getting sick due to constant exposure to arsenic-contaminated water and other water borne diseases. Their access to latrines and other sanitation facilities is often inhibited because of the gender insensitivity to the construction and management of such facilities. The proposed project must ensure that gender issues are addressed and that women benefit as well from the project and that interventions avoid gender biases; efforts at bridging the gap will need to be undertaken. It is expected that the availability of safe and adequate water will change in health behaviour, as women and children pay more attention to hygiene and sanitation. Water of a better quality which remains uncontaminated helps to decrease water-related diseases which are prevalent in the slum areas. However, the health gains so confidently anticipated in water program has yet to be realized. The FGD results indicated that water borne diseases continuous to be prevalent even in areas where there are existing tube wells. The problem is that, drinking tube well water will not necessarily protect health unless there is parallel health education and improvement in environmental sanitation and hygiene awareness. In water projects, there is ample evidence to show that unless water sanitation and hygiene education go together, the health impact of improved water facilities may be lost. This is the challenge that the Project will have to address and the CDS, together with the community, particularly women, will take the lead to ensure the proper use of water along with application of proper hygiene if improvement on health status will be achieved. Overall, the project is viewed as an initiative with a wide range of beneficial impacts. It will have major beneficial impact on the health and sanitation condition in the households and communities which would have positive impact on improving man-hours for productive endeavours and translate into savings in medical and health expenditure related to water borne diseases. Likewise, during construction period of piping and tap installation, the poor may directly or indirectly benefit. Civil works will create short-term job opportunities, and general promotion of economic activities will expand the job market in the longer term. Gender Issues and Mitigation

Issues Mitigation Measures 1. Certain categories of women are

excluded from access to water and participation, such as minority group, women headed households and very poor households.

Targeting and issuance of ID to particularly vulnerable women such as minorities and women headed households, to ensure access to water services. The ID will specify special rate for women headed households and IPs.

2. Special needs of women are not met Ensure accessibility by consulting with women to


61

such as; location, design of facilities, operating hours; bathing provision, laundry.

agree on location, design, operation hours, bathing provision and laundry area.

3. Involvement of women has been limited to domestic work, physical labor of hauling water, passive audience for health education; separate women’s project

Involve women in the operations in maintenance, collection, promotion of health messages. Use women as resource persons on health education, awareness creation Allow women to assume leadership roles. Encourage men to support community activities of women and efforts of women to promote hygiene and sanitation at home.

4. Workload has been increased by lack of assistance in water collection and voluntary labor for community related initiatives.

Community seminar on gender awareness must be initiated to raise level of awareness of men on the multi-roles of women in the home. Men should be encouraged to participate in seminars and support women, share in household’s tasks as well as in equal sharing of resources.

5. Loss of productive activities due to time spent on water collection and other domestic concerns

Linkages with NGOs to enhance productive capacity of women, to engage in income generating activities

6. Loss of access to improved water facility due to distance and cost of water

Participation of women in the selection site that will proximate water facilities to women.

2. Key Actions Measures included in the design to promote gender equality and women’s empowerment – access to and use

of relevant services, resources, assets, or opportunities and participation in decision-making. Various measures

are included to promote gender equality and women’s empowerment. A Gender Action Plan (GAP) has been

formulated to maximize project benefits especially for women who are responsible for water management in the

home. Women will be properly represented in various committees, including coordination committees in towns

and wards, and water and sanitation committees. Better infrastructure services will improve livelihood

opportunities for women. Efforts to reduce gender disparity in wages for work of equal value will be in place.

Women’s participation in local governance and community decision making will be improved. Provisions have

been made for gender and social development consultants, and a monitoring system will be in place.

To involve women create sustainable water system and reach the poorest, program on water must include or

linked to economic development and poverty reduction program. If the Project expects poor people, especially

women to pay for water, initiative to create opportunities for productive capacities must be incorporated as a

part of the Project framework.


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Gender plan Other actions/measures No action/measure

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue Significant/

Limited/ No Impact

Strategy to Address Issue Plan or Other Measures Included in Design

Involuntary Resettlement

Limited impacts (a)The project is designed for minimal or no land acquisition and resettlement.

(b) A resettlement framework has been prepared to guide the development of Resettlement Plans (RP) for various potential reservoir sites.

(c) JICA Specialists will prepare the individual RPs.

Resettlement plans

Resettlement framework

Combined resettlement plan and indigenous peoples plan

Combined resettlement framework and indigenous peoples planning framework

Environment and social management system arrangement

Environment and social impact matrix

None

Indigenous People

No impact Indigenous peoples were not found in the project area.

Indigenous peoples plan

Indigenous peoples planning framework

Combined indigenous peoples plan and resettlement framework

Combined resettlement framework and indigenous peoples planning framework

Indigenous peoples plan elements integrated in project design with a summary

Environmental and social management system arrangement

Environmental and social impact matrix

None

Labor ___Employment opportunities __ Labor retrenchment __ Core labor

Limited positive impact

Employment opportunities will open for unskilled labor during construction.

Plan

Other action

No action


63

standards (CLS) Affordability

Significant impact particularly for extreme poor and poor households

Discussed already in details in PRS and social strategy and GAP.

,

Other Risks and/or Vulnerabilities __ HIV/AIDS __ Human Trafficking __ Others (conflict, political instability, etc). Please specify: ___

Not known Civil works contracts, though they are small in size, may become a channel of HIV/AIDs. KWASA and the civil contractors will minimize the risk through a relevant clause in the contracts and awareness-raising programs.

Plan

Other action

No action

IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impacts during implementation? YES


64

Appendix 2 – Gender Action Plan

1. Introduction

It has been recognized that water and sanitation are issues for men, women and children. To have

effective water and sanitation program, men must also support and adopt improved hygiene practices.

In water project, contribution of time, labor and money should be shared fairly and not expected of

women alone. Training should also be equally divided. In this way, both men and women can benefit

and human resources will not be wasted.

Gender Action Plan (GAP) is formulated to provide measures to address issues concerning gender

equity and participation in the Project and enhance sustainability of such efforts. However, since

women’s involvement in water and sanitation springs logically from their traditional roles, they are often

the most disadvantaged and more affected. Thus, the GAP is formulated to maximize project benefits

for women. The GAP identifies the role of women in the project design, implementation, operation, and

maintenance. Women will be properly represented in various WUG and WSS committees and

organizations including coordination committees at wards levels.

2. Objectives of the GAP

The preparation of the Gender Action Plan (GAP) follows the framework of ADB Policy on Gender and

Development and Khulna WSS’s Gender Strategy and Action Plan. The objectives of the GAP are as

follows:

(vi) Increase participation of women in identification of location site for the tap stands,

planning construction, operations and maintenance and monitoring;

(vii) Increase time availability for livelihood opportunities/activities by women as less time

will now be devoted to access water for the households;

(viii) Ensuring reduced wage disparities between women and men for work of equal value

and effective application of core labour standards in Project related work opportunities;

(ix) Women’s effective participation in governance and community decision-making

processes and structures; and

(x) Improved gender awareness and capacity among the staff of KWASA, Khulna City

Corporation and the concerned wards.

3. Gender Issues and Concerns

The Consumers survey shows that there are various aspects of gender bias and discrimination in the

area of education, employment and income, household roles and decision-making exist in the Project

area. There is a higher proportion of female who are illiterate and functionally literate compared to the

male. In terms of educational attainment, the proportion of men and women who have obtained or

finished lower level of education appears to be equal primarily because of the national government’s

interventions; however, at the higher level, the gender disparity becomes apparent again: more males

have attained or finished Bachelor’s degree and/or post-graduate level than the females. In the area of

employment, the situation appears to be no better. While women constitute 48% of the total labor

force, only about 11% of the total is gainfully employed. The average annual income of female-headed

households is Tk46, 621 compared to the male-headed households, which is Tk65, 388. Accordingly, the


65

proportion of female-headed households (44.1%) who are below the poverty threshold is very much

higher than the male-headed households (27%). On decision-making at the household level, the male is

primarily responsible, except in female-headed households. But even there, the female head has to

often consult with the male adult member of the households on major decision areas such as children’s

education, or type of work to be engaged in, choosing marriage partners for children.

Water collection and water/sanitation management at the HH and community levels are the traditional

roles of women in the country. Women are the ones who obtain water for the home, store it and

manage it. Women are usually the guardians of household hygiene and maintaining health care of

children. Time spent for domestic households as well as in doing other income generating activities puts

so much pressure on the multi tasks done by women. Because of this gender role and expectation,

women had become more vulnerable to health risks imminent due to hygiene and sanitation resulting

from the water supply and sanitation situation in the households and the community. They endure the

high possibility of getting sick due to higher exposure to contaminated water and other water borne

diseases. Their access to latrines and other sanitation facilities is often inhibited because of the gender

insensitivity to the construction and management of such facilities.

The SPA findings indicated that status of women in the Project area is generally similar to the status of

their national counterpart. The females have equal chances of being schooled at lower level; however at

higher level though, men generally obtain higher education than women. Overall, the proportion of male

household members out of total males having attained university level is higher than the proportion of

female members.

In term of employment, of the total employable male, 52 % is employed while only 48% of the total

employable females are actually employed. However, if one looks at the contribution to total household

income, the proportion of women contributing is almost equal to that of the men. It would appear that

while in comparison to the male counterpart the percentage of women who are employed is low, still an

almost equal proportion are gainfully occupied (e.g., operating small business and not reported as

employed) and contribute to the total household income. Cost of water is often taken from women’s

earning as always being left at home while men are at work. Per Consumer Survey data, women headed

households included in the survey appear to fare better than their male counterpart. Women in the

urban households have equal voices in decision-making. However, in the wards and community

administrative system, women’s role appears to be limited by cultural/religious attitude. Efforts had been

undertaken to address such imbalance and now the UPPRP reports showed that 90% of women are

members of the CBC and are making major decision in community affairs. A number of NGO and

development agencies’ community based project also affirmed that women are often the chairs and/or

manager of the program activities especially if these programs are concerned with health, sanitation and

or microcredit and supplemental livelihood activities. This would tend to reflect the reality in the field

that the men are normally busy in formal livelihood and income generation activities for the households

and it is the women are available to attend to these other community related activities.

In the predominantly Muslim country, the women’s role in the households and communities is pretty

much defined by religious and cultural/social expectations unlike their counterpart Hindu women.

However, the women in the urban areas as in KCC reveals to have better access to social infrastructure

and services than their rural counterpart as the households generally live in more urbanized location

where the infrastructure and services are concentrated.

While both women and men are more likely to benefit from the planned WSS upgrading, the Project has


66

the potential to contribute to the general wellbeing of women especially of poor households in the slum

and low-income areas. Women and girls who are usually the ones responsible for obtaining water from

various sources sometimes far from their place of domicile will now have easier time. Women in the low

income and slum communities are also more likely to have increased health benefit due to improved

availability of safe water. Furthermore, women of poor households will be empowered through

participation in Project planning and decision-making, capacity building interventions and access to

project related employment opportunities.

Adverse impacts and risks from Project related activities faced by women are deemed not

significant; nonetheless, during Project implementation if there are unforeseen risks identified, proper

measures will be undertaken for their mitigation. The table below identifies some gender issues and the

corresponding mitigation measures.

Gender Issues and Mitigation

Issues Mitigation Measures

1. Certain categories of women are

excluded from access to water and

participation, such as minority group,

women headed households and very

poor households.

Targeting and issuance of ID to particularly

vulnerable women such as minorities and women

headed households, to ensure access to water

services. The ID will specify special rate for women

headed households and IPs.

2. Special needs of women are not met

such as; location, design of facilities,

operating hours; bathing provision,

laundry.

Ensure accessibility by consulting with women to

agree on location, design, operation hours, bathing

provision and laundry area.

3. Involvement of women has been limited

to domestic work, physical labor of

hauling water, passive audience for

health education; separate women’s

project

Involve women in the operations in maintenance,

collection, promotion of health messages.

Use women as resource persons on health

education, awareness creation

Allow women to assume leadership roles.

Encourage men to support community activities of

women and efforts of women to promote hygiene

and sanitation at home.

4. Workload has been increased by lack of

assistance in water collection and

voluntary labor for community related

initiatives.

Community seminar on gender awareness must be

initiated to raise level of awareness of men on the

multi-roles of women in the home.

Men should be encouraged to participate in

seminars and support women, share in

household’s tasks as well as in equal sharing of

resources.

5. Loss of productive activities due to time

spent on water collection and other

domestic concerns

Linkages with NGOs to enhance productive

capacity of women, to engage in income

generating activities

6. Loss of access to improved water facility

due to distance and cost of water

Participation of women in the selection site that

will proximate water facilities to women.


67

4. Practical Steps to enhance gender roles in KWASA Project

Overall, the GAP objectives aims to maximize benefits derived from the project and enhance

participation of both women and women in the planning, implementation, operation and maintenance

of the project.

a) Local intervention and support

Men and women’s involvement should begin during the first stage of the project process. If not included

at this point, it is more likely that they will be excluded at later stage as well. It is also effective to involve

them in decision making about appropriate technology and suitable location to benefit primary users

who are women. Contact of male leadership for understanding and support for women’s involvement

increases the chance of increasing more women to participate in community initiatives and other

projects.

b) Implementation of national policy agenda on gender concerns.

The implementation of national policy on gender concerns must be enforced to continuously protect

women’s interest. The participation of women in various project activities (data collection, selection of

technology, project site, etc) will be greatly enhanced when they have the support of men and women

in higher levels from field staff to managers and decision makers at the regional and national level.

Women’s involvement in the water sector could create a crucial impact on project sustainability. For

instance consideration of women’s demand and willingness to pay for piped water or particular type of

water system could raise the level of increased coverage since they are the ones who are the prime

users of water.

c) Facilitation for women to participate in project meetings

Women will be encouraged to participate and facilitate meetings. They will be tasked to organize time

and place of meeting, prepare invitations, make appropriate sitting arrangements, choice of resource

person and conduct separate meetings with women where needed.

d) Involvement of women in planning and decision making

Men and women should be represented equally (at least 50% men and 50% women) in the planning and

in deciding as to:

• Choice of caretakers or electing the WUG officers

• Design and location of facilities

• Local management arrangements

• Local financing scheme

In particular, women will be allowed to choose their own representatives for trust, ease of contacts and

leadership capacities. They will also be encouraged and allowed in higher level committees.

e) Expansion of traditional tasks and responsibilities of women’s roles in the Project

Expansion of traditional domestic roles of women need to consider other tasks such as management of

water, maintenance and repair of water points, hygiene education with fellow women, collection of

tariffs and management of funds. Appropriate training will be provided to effectively manage these

tasks.


68

Experience with women in maintenance roles indicates that while some costs may be higher (due to

more demand for training) their effectiveness in regular and preventive maintenance is better than

men’s and costs of repair become lower since women are more meticulous when it comes to care of

facilities.. However negative impact resulting from women’s involvement needs to be considered as

reduced women’s time in water collection create new demands for work related to maintenance,

management and financing.

f) Linkage of water project with capacity building and income generation and employment

Benefits derived from improved water facilities such as time and energy gains may be applied to a

variety of activities such as home gardening and food production for sale. Linking support with other

NGOs which can provide micro-credits and training on business development could widen women’s

potential to contribute to household income and this has an impact on poverty reduction. Benefits from

increased earnings for women resulting from construction employment will be optimized where KWASA

and the concerned ward/community officials will ensure that:

• Contracts will specify the maximization of use of local labour;

• Workers will be paid the legal wages; Contractors will be given orientation on jobs specification

and hiring to include women.

• Child labour will not be used for construction and maintenance activities;

• Employment targets for members of poor households and women will be set to include at least

30% women;

• No differential wages are paid between men and women for work of equal value; and

A specific clause is placed in bidding documents that compliance will be strictly monitored during Project

implementation.

g) Conscientization and training of project staff and management on gender sensitive

awareness and programming

Special attention will be paid to the design of messages and the method of communication to ensure

that women receive the intended Project messages. Places frequented by women, household level

messaging and focus groups will be organized to disseminate information about the Project. The role of

project staff is crucial in the awareness campaign and promotion of women’s concerns and practicalities

of women’s involvement in the water project.

The initial step is to conduct seminars and workshops to discuss gender related issues and involve key

leaders to address women’s’ concerns and involve women in the project cycle. The above training has

been included in the capacity building program of the Project.

h) Strengthening Organizational/Management Capacity of WUG

To further ensure sustainability of development efforts and management capacity of the WUG, various

seminars and workshops will be designed to focus on the following skills:


69

Table 1: Training Plan

5. Institutional and Implementation Mechanism

Implementation of the GAP will be the primary responsibility of KWASA with the Community

Development Organizers undertaking gender related concerns at the zonal level mainly responsible for

its execution.

KWASA could utilize the current social structure already organized at community level by UPPRP. There

are currently 239 Community Development Committees (CDCs) that have been organized and

undertaking several community development initiatives, including water management. The Project

could linked with the CDCs and strengthen this existing group to undertake responsibilities related to

water management and initiatives to enhance the productive capacities of women. The advantage of

using the current CDC structure is that adequate training on capacity building has been provided and

75% are represented by women. It is expected that the CDC will continue to be self reliant and

functional even after UPPRP or the KWASA CDOs have exited from the project.

An initial consultation with UPPRP affirmed their interest to establish linkage where appropriate. Areas

of cooperation have been seen towards providing funding to poor households, especially women, on

pipe connection from the house to the communal tap water. Other initiatives for cooperation include

capacity building and income generating activities.

To involve women create sustainable water system and reach the poorest, program on water must

include or linked to economic development and poverty reduction program. If the Project expects poor

people, especially women to pay for water, initiative to create opportunities for productive capacities

must be incorporated as a part of the Project framework. A strategy to incorporate poverty reduction

program is attached as Appendix 1.

Costs to undertake the activities under the Plan have been provided in the business plan of the project

which includes capacity building and communication awareness campaign.

Type of Training/Activities Skills Development Participants

Self awareness Gain self confidence and image Members of WUG

Gender Sensitive Planning Ability to prepare and implement plan

the GAP, and address gender issues and

concerns

Members

Collection, simple bookkeeping and

Recording

Ability to collect and maintain keep

records of account

Representative –

WUG

Problem Solving Process/Decision Making Ability to resolve community issues and

make right decision

WUG members

Water management, maintenance and

operation, M and E

Ability to manage, operate, maintain,

monitor and evaluate project results

WUG members

Enterprise Development and Project

Management

Ability to manage small scale income

generating activities

Low-income women

Field Exposure Ability to apply lessons learned and

replicate to current situation

WUG members


70

6. Monitoring and Evaluation

Plan implementation will be monitored regularly with indicators incorporated as part of the Project M&E

framework.

Table 2: Monitoring and Evaluation Framework Component Activities Main

Responsibilities

Target group Indicator Time Frame

Ensuring Safe

Water Access to

Poor especially

women-headed

households

Identification and selection criteria of

target beneficiary households in slum and

low income areas will ensure inclusion of

women headed households:

i) KWASA and NGO will ensure that

criteria incorporates indicators to id

and qualify women headed households

ii) Women headed HH will be ensured

membership in the Water User

Association and will not be excluded

from being an officer of the

Association

iii) KWASA and NGO will ensure

that women are provided and included

in the capacity building program of the

Project.

KWASA Social

Development

Group

Contracted

NGO

Project

consultants

Development

agencies

Women in

general and

women

headed

households

in the slum

areas of

KWASA

service

coverage

areas

Number of indicator

in the selection

criteria that are

women friendly

% of women who

are members of the

WUA

% of women who

are officers of the

WUA

% women headed

HH who are

connected to

KWASA water

system

% of women WUA

who are provided

training

% of women who

are referred to

micro lending

project and

provided credit and

engaged in income

generating project

2011-2015

Institutional

Strengthening and

Capacity Building

Women’s effective participation in

governance and community decision-

making processes and structures will be

strengthened

i) KWASA and NGO will enhance women’s

capacity to manage WSS activities at HH

and community level through training

interventions

ii) KWASA and NGO will ensure women

participation in O&M and monitoring

activities of the Project

iii) Women will play a more active role in

water supply management program

(i) KWASA and NGO will develop

leadership skills of women and allow

them to take leadership role in the

community

KWASA

NGO

Project

consultant

Development

Agencies

Women in

the target

communities

Female staff

of KWASA

and ward

offices

Community

development

organizations

Number of women

trained and active in

WS management

activities

# of women staff

hired by KWASA

involved in technical

and management

activities

#No of women

occupying

leadership roles in

the community and

project

management

Public Awareness

and Information

Campaign on

KWASA program

Ensure all the campaign messages are

gender friendly:

i) Media and messages will be formulated

to be gender sensitive in the context of

Bangladesh society

ii) Delivery of messages will ensure that

women are reached appropriately

without any bias and interference due to

gender role and religious/social

restrictions

KWASA

NGO

Project

consultant

Development

Agencies

Women in

the

community

Women friendly

messages

developed and

disseminated

2011 – 2017

Enhancing This strategy will involve identifying poor KWASA Women in # of women trained 2011-2017


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Component Activities Main

Responsibilities

Target group Indicator Time Frame

Productive

capacities of

women

and extreme poor households, poor

headed households to link institutional

support with income generating

activities.

Social Development Specialist will tap

local resources (NGOs) for skills

development, credit assistance and

project management training.

NGO

Community

Development

Specialist

Development

Agencies

the

community

WUG

CDCs

in IGP

# of women

engaged in IGP

% of income raised

7. Budget Requirement

The following costs will be entailed in the implementation of the GAD.

a.) Capacity building –this will involve raising knowledge and developing skills and capacity of

women to participate in decision making, resolve community conflicts, undertake water

management. The training plan and budget is provided below. Overall cost for capacity building

is estimated at Taka 2,244,970 (US$32,071).

Table 3: Budget for Capacity Building - GAP

b) Exposure Trips

Field exposures to successful water project will be initiated for the WUG and women members to visit

community-based projects managed by women. . Some of these water projects are currently

implemented by UPPRP (UNDP). This will allow members of the WUG to assess by themselves what

learning experiences can be replicated for their group. The budget cost for this activity is estimated at

Tk 250,000 (US$3,571).

No of

No

of Budget

No Training /Activity PAX days Food Allowance Venue Materials Total

1 Self Awareness

1,734

1

693,600.00

173,400.00

15,000.00

121,380.00

1,003,380.00

2

Gender Sensitive

Planning

624

2

249,600.00

124,800.00

15,000.00

43,680.00

433,080.00

3 Simple bookkeeping

289

1 57,800.00

28,900.00

15,000.00

20,230.00

121,930.00

4

Problem Solving

Process

578

1

115,600.00

57,800.00

15,000.00

40,460.00

228,860.00

5

Operations and

maintenance

578

1

115,600.00

57,800.00

15,000.00

40,460.00

228,860.00

6

Monitoring and

Evaluation

578

1

115,600.00

57,800.00

15,000.00

40,460.00

228,860.00

Total in Taka

4,381 7

1,347,800.00

500,500.00

90,000.00

306,670.00

2,244,970.00

Total US Dollars 19,254.29

7,150.00

1,285.71

4,381.00

32,071.00


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c) Gender Awareness Workshop and Information Campaign

An important consideration in this activity is to raise the commitment of the Project Staff, Planners,

NGOs, GOs and other social institutions on the critical role of women in development initiatives such as

water projects. Information campaign through the use of mass media and information materials will be

utilized to sensitize the public on gender issues and concerns and how to address them. An estimated

budget for this activity is estimated at Taka 1,200.000 (U$ 17,142). The activity shall be undertaken

regularly at community level at least once every quarter r within a period of 3 years.

Overall, the total cost to implement the GAP is estimated at Taka 3,694,970 (US$52,785).


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GENDER ACTION PLAN – IMPLEMENTATION TABLE

Activity / Objectives Indicators/Targets Responsibility Time

Schedule

1. Ensuring Safe Water Access to Poor especially women-headed households

• Develop effective mechanism to ensure increased female involvement.

• Identification and selection criteria of target beneficiary households in slum

and low income areas will ensure inclusion of women headed households:

• KWASA and NGO will ensure that criteria incorporates indicators to id and

qualify women headed households

• Women headed HH will be ensured membership in the Water User

Association and will not be excluded from being an officer of the

Association

• KWASA and NGO will ensure that women are provided and included in the

capacity building program of the Project.

• Referral of women to NGOs for income generating opportunities

• Women in general and women headed

households in the slum areas of KWASA

service coverage areas

• Number of indicator in the selection

criteria that are women friendly

• % of women who are members of the

WUA

• % of women who are officers of the WUA

• % women headed HH who are connected

to KWASA water system

• % of women WUA who are provided

training

• % of women who are referred to micro

lending project and provided credit and

engaged in income generating project

KWASA Social

Development

Group

Contracted NGO

Project

Consultants

Development

agencies

2011-

2015

2. Institutional Strengthening and Capacity Building

• Women’s effective participation in governance and community decision-

making processes and structures will be strengthened

• KWASA and NGO will enhance women’s capacity to manage WSS activities

at HH and community level through training interventions

• KWASA and NGO will ensure women participation in O&M and monitoring

activities of the Project

• Women will play a more active role in water supply management program

• KWASA and NGO will develop leadership skills of women and allow them to

take leadership role in the community

• Women in the target communities

Female staff of KWASA and ward offices

Community development organizations

KWASA

NGO

Project

Consultant

Development

Agencies

2011-

2017


74

Activity / Objectives Indicators/Targets Responsibility Time

Schedule

3. Public Awareness and Information Campaign on KWASA program

• Ensure all the campaign messages are gender friendly:

• Media and messages will be formulated to be gender sensitive in the

context of Bangladesh society

• Delivery of messages will ensure that women are reached appropriately

without any bias and interference due to gender role and religious/social

restrictions

• Women in the community

• Women friendly messages developed and

disseminated

• Women's participation in WUA-financed

training and capacity development programs

[target: 75% participation]

KWASA

NGO

Project

Consultant

Development

Agencies

2011-

2017

4. Enhancing Productive Capacities of Women

• This strategy will involve identifying poor and extreme households, poor

headed households to link institutional support with income generating

activities and or employment

• Social Development Organizers will tap local resources (NGOs) for skills

development, credit assistance and project management training.

• . Women in the community

• # of women engaged in IGP

• Increased earning capacity by at least 10-15%

• # of women given skills training

• # of women utilizing training given

• # of women referred for employment

•

KWASA

NGO

Project

Consultant

Development

Agencies

2011-2017

5. Participation of Women in Project Implementation

• Ensure women's participation in all consultative processes and structures for the

prioritization of plans and decision-making.

• Ensure equal job opportunity for female workers in the project

• Women in the community

• Number of women in attendance and

actively participating in meetings

• Type of activities that women are involved

in

KWASA

NGO

Project

Consultant

Development

Agencies

2011-2017


Appendix 3 – Consultation and Participation Plan

1. Definition and Background

There is a general awareness and recognition on the importance of community participation in the

implementation of water and sanitation initiatives. Over the years, the community has now emerged as

an operative factor in Bangladesh’s water and sanitation development program. User groups and

caretakers, by their financial contribution and their knowledge of how things are supposed to be done,

have become an integral part of the programme’s sustainability.

How is community participation defined within the context of the KWASA project?

In its simplest definition, participation means, readiness of the government (KWASA), private sectors,

NGOs, and the target communities to accept responsibilities. The contribution of each is recognized,

utilized and appreciated.

In regards to the readiness, both the government, private sectors, NGOs and the community have

worked together for a long time. Currently, there are a number of NGOs operating in the area that

provide support on water and sanitation projects to underpin other income generating and health

related schemes. An impressive example of collaboration with a private organization is provided by the

Grameen Bank – an institution set up to improve the standard of living of Bangladesh’s poorest group.

Grameen offers collateral-free assistance to rural poor for productive enterprises such as dairy cow

fattening and poultry raising.

With regards to government sector, the Local Government Engineering Department (LGED) through its

program Urban Partnership for Poverty Reduction (UPPR) Project has successfully initiated a community

participatory model which has been implemented in 31 wards of Khulna. To date, UPPRP has

established 239 Community Development Centers (CDCs) covering the entire KCC. Observation and

interviews conducted at field level among CDCs revealed that the enthusiastic participation of the

beneficiary communities contributed greatly to the achievement of a sustainable impact of the UPPRP

program.

On the other hand, the community, through the development programs carried out by the government

and NGOs instituted community based management program such as poverty reduction program, and

health and sanitation. Communities have demonstrated enthusiastic re Communities have succeeded in

identifying their own resources, and develop initiatives that respond to their immediate and long term

needs.

The KWASA Project requires strong advocacy, institutional support and community participation to

sustain its developmental objectives. Since the target communities are ultimately the water users and

will pay for water services, it is expedient that appropriate community organization, social mobilization

and marketing must be undertaken before and during its implementation.

This document provides the framework for the participatory process and activities in the

implementation of the KWASA Project. The Community Participation Plan, together with the Poverty

Reduction Strategies and Gender Action Plan will institutionalize and internalize the beneficiary driven

approach for sustainable social development interventions particularly for the women members of

households, poor households and low income households in slum areas.


2. Objectives

The objectives of the participation strategy are to:

1. Increase access of the community to the KWASA water supply pipe system, particularly the

vulnerable groups, the poor and women-headed households;

2. Help maximize the impact and effectiveness of the water project;

3. Create a sense of responsibility and ownership of the project;

4. Develop potential for long term sustainability;

5. Address and support other developmental needs such as health and sanitation and poverty

reduction.

3. Mechanism for Participation

The community participation strategy involves 3 phases with various sets of running activities which

shall be undertaken at different stages of the project cycle. This CCP shall be implemented within a

period of three years, from 2011-2013.

3.1 Pre-Implementation-Social Preparation Phase ( Bridging Period 2011 -2012)

The social preparation phase shall begin at the early planning stage, during the bridging period (9

months) to bridge from between the conception of the project and its implementation. The social

preparation phase will take about 6 months to undertake the series of activities.

Key Activities

1) Establishment of a functional Community Relations Office

The establishment of a Community Relations Office (COMREL) is essential to serve as focal point and

orchestrate community development participatory activities in the field and managing problems, issues

and concerns of the community. This office shall be under the supervision of the Customers Relation

Office planned under the proposed organizational structure of the KWASA. The COMREL shall include

among others a Community Development Specialist and a Gender Specialist who will be responsible to

manage day to day activities at the community level. They will also identify community volunteers of

facilitators who will assist them in the field. A community action plan with specific activities shall be

prepared by the CDS before the formation phase.

2) Identification and targeting of poor households

The Community Development Specialist shall conduct social investigation and careful analysis of the

specific needs and problems in target Wards, including identifying of potential community volunteers

who will assist in the participatory activities to be initiated. Main activities shall include:

(i) Mapping, identification and listing of extreme poor and poor households;

(ii) Identification of NGOs and social organizations present in the area to accurately address the

specific needs of the poor;

(iii) Identification of community resources such as man power, location of water points, etc.


3) Creation of a data base information

Data base information (consumers’ data) will be established especially on vulnerable families.

Disaggregation of gender data shall form the data base with relevant information on income and skills of

households.

The use of the criteria established by the UPPRP would be useful in identifying the poor. These criteria

are as follows:

o. .More than 6 people dependent on one earning member

p. Has 3 children of less than 5 years old

q. Child labour of less than 15 years age works for full day

r. Age of family’s main income earner is more than 60 years

s. Female headed households

t. Have disabled family member

u. Suffering from prolonged ailment

v. Have drug addicted member of the family

w. All family members above 16 years of age are illiterate

x. Have school age children but not going to school or is a drop out

y. Lack of access to safe drinking water

z. Lack of access to sanitary latrine

aa. Live in hut (made of hay, thatch, polythene). Continuously afraid of eviction.

bb. Culturally or socially isolated family.

A household will be considered extremely poor if any of 6 out of 14 criteria are met. A household can be

considered as extreme poor even if only one of the following criteria “a”, “d” or “f” is met.

4. Conduct of Planning Workshops

A major feature of PRS is enabling the community and ward officials to plan and implement the WSS in a

participatory manner with the participation of beneficiary households, NGOs, and women. Planning will

involve the formulation of strategies to ensure access of WSS services and benefits of the Project by the

poor households in the slum and low-income areas of the wards under the service coverage of KWASA

groups. To sustain affordability and sustainability of services strategies will be pursued involving

employment provision, capacity building including improving WSS O&M which eventually can lead to

income generation/income enhancement and monitoring activities especially related to leakage

detection and reporting and illegal connection reporting.

One of the initial activities of the group is to identify the central location of the water tap for the

association and the manner and procedure for ensuring management and control of the system.

Identification of roles and responsibilities and accountabilities will have to be agreed upon. Another

important issue that will have to be decided at the outset is the amount of monthly due to be paid by

each member household considering the amount required to pay for the bulk water from KWASA and

some minimal amount required to ensure the viability of the community organization (i.e., payment for

maintenance of the communal tap and some minimal stipend for community members working for the

association).


5. Project Information and Dissemination







and health messages as part of health education in schools.

KWASA staff together with the Program Consultants and the COMREL and the KCC officials/staff at the

ward level as well as the WUGs and Ward Water Supply and Sanitation Committees (WWSSC) will work

closely with the local officials to undertake a marketing/information campaign on the new program of

KWASA on WSS. The communication materials and strategy developed by Consultant Specialists will be

utilized.

This activity shall be undertaken within the next 6-9 months as preparation for the community’s

acceptance on the upgrading of the system which shall comprise of series of training seminar and

educational campaign

3.2 Implementation Phase – Community Mobilization (2012-2013)

This phase will involve Community Development Specialist (CDS to immerse themselves in the field with

the poor to gain their confidence and to form groups to analyze the information collected, and identify

key issues and areas where support is needed. At this stage, the CDS also shall initiate and promote the

project by raising the level of awareness on the importance of and use of safe water, thereby motivating

the people to consider the best option. Discussion will also revolve around the community’s

responsibilities in the water project.

Key Activities

1) Organization and training of Water User Groups

Once the community interest has been mobilized, this must quickly be crystallized into a formal

mechanism usually formed through which communities are encouraged to take small steps to improve

their own condition. It is imperative that this action spring from their own ideas.

Water User Groups and Committees will be organized in low income and slum areas adjacent to KWASA

water supply lines in 12 identified wards of Khulna City Corporation. The Water User Group will be

composed of 10-15 households proximate to each other and they will elect their officials who will be

responsible for directing and managing the activities of the group. The Group Chair and Secretary will

represent the community WUG in the WSS Committee to be organized in each concerned ward under

KWASA service coverage.

A WSS committee will be composed of about 10 WUG. There may be more than one WSS committee in

a ward if there is a substantial number of WUGs due to the high number of low income households in

the ward. The WSS committee shall include members of ward officials, NGO and similar development

workers especially in the water and sanitation section to provide technical support to the WUG member


representatives. Their primary task is to ensure the successful planning and implementation of

measures to address concerns of water and sanitation concerns in the concerned service area.

2) Establishment of Complaints and Response Mechanism at the Ward Level

While KWASA will ultimately be responsible for addressing complaints of customers, the participatory

mechanism will provide a mechanism where at ward WSS committee level, complaints re service,

leakages, billing and other customer relation matters, could first be heard and possibly mitigated. If the

WSS Committee is unable to provide a solution, the complaint would then be referred to the KWASA

zonal team (SocDev/ComDev Specialist) for appropriate action.

3) Training of WUG Committees in Operation, Maintenance and Monitoring Activities


payment of the monthly bill to KWASA.

Pipe leakages, damage to the communal tap as well as illegal connection will be monitored at

community level and reported to KWASA through an established system.

The WUG elected officers will be responsible for record keeping, updating and maintaining the books of

account for regular reporting to the members. The Project Community Development Specialist will

provide the appropriate trainings to the WUG officials.

a) Site selection

Community involvement in the installation of water services should start at site selection, an area often

fraught with conflict. A communal tap water may end up on a private property, access to which can be

controlled by land owner. The number of new communal tap water facilities in each union would be

decided at the Thana level, but the actual sites would be decided by the users group.

b) Selecting the caretaker

Members should decide who among themselves should be the caretaker. The WUG should also comply

themselves to the conditions governing the installation of the communal tap water facility, including site

selection criteria. The FGD participants established minimal guidelines in the selection of WUG

representatives:

• Selection of representative must have a mutual consent by the group.

• Ward Councillor can select a representative with the consent of community;

• CDC, UPPRP can select representative from beneficiaries.

c) Collection of water fees and maintenance


payment of the monthly bill to KWASA. As suggested by the FGD participants, the WUG elected officers

will be provided with training on maintenance of the facility, book keeping and collecting bills. The WUG

elected officers will be responsible for record keeping, updating and maintaining the books of account

for regular reporting to the members. The Project Community Development Specialist will provide the

appropriate trainings to the WUG officials. This would require trust and confidence on the part of

KWASA to consider this activity.


d) Monitoring and evaluation

Community based monitoring will be organized by the CDO per WUG. The use of the monitoring

instrument as provided in this document will be used to monitor progress and achievements.

Monitoring inequity

In order to avoid inequitable sitting, the site selection committee which will be formed by the WUG,

must ensure that caretakers and users has the full appreciation of the public nature of the service.

Distance criteria must be set to ensure a more even spread of the water facility coverage. The criteria

for positioning must include a convenient distance from all prospective user families as well as public

health consideration and local hydrological conditions. It is suggested that no family should be farther

away than 250 yards away from the facility.

Pipe leakages, damage to the communal tap as well as illegal connection will be monitored at

community level and reported to KWASA through an established system.

5.3. Sustenance phase - 2013 – year end

This phase will mark the evaluation progress as well as providing intervention to sustain efforts of the

WUGs including developing strategies that will improve operation. Gradually, the intervention will be

minimized but paving the way for the assumption of more active involvement of community volunteers,

NGOs and other support groups.

1) Coordination and Linkages

Coordination activities with existing support groups shall be done by the CDOs to link economic

development with the skills and needs of LIH, particularly women. This activity will involve mobilizing

other support groups to address immediate as well as long term needs of the community which can be

link with existing program of NGOs. The training programs will most likely provide specific skills to

community members on income generation, credit assistance, etc.

2) Institutionalization

The mainstreaming of community participation in the KWASA project requires policy support to

institutionalize the approach. The CP model will be implemented along with the GAP and the PRS to

maximize its benefits. A handbook or manual on participatory process needs to be prepared to guide in

its implementation. The Manual will serve as a model not only for this project but for other

development projects in the future.

The UPPRP CDC model provides a participatory approach which can also be adopted in the design of the

KWASA participatory plan. An advantage of using the CDC model is that, there is already an established

guidelines and social structure in place within 31 wards of KCC. The CDCs have also acquired sufficient

training and 90% of the members are women representing the poor families.

As potential partner in the implementation of the CPP, The UPPRP has likewise signified their interest to

become partners with KWASA in the community based management of water project, in line with

UPPRP’s poverty reduction program. Specific area of assistance is specified on the provision of water

line connection from the house of poor families to the water network. UPPRPs initiatives will certainly

match with the features of the PRS which is to ensure access of WSS services and benefits of the Project

by the poor households in the slum and low-income areas of the wards under the service coverage of

KWASA groups.


To sustain affordability and sustainability of services, strategies will be pursued involving employment

provision, capacity building including improving WSS O&M which eventually can lead to income

generation/income enhancement. This can be effectively achieved through partnership with existing

social institutions as well as with other NGOs as partner in development initiatives.

6. Components of the Participation Strategy

6.1 Capacity Building

The ability to access resources is closely linked to one’s capacity to assert rights. The poor are often

passive role-players against other more powerful interests. To provide and increase the capacity of

vulnerable group to effectively claim and defend their rights, define and solve their problems the

program will equip the poor, women and ethnic minority households with proper tools and knowledge.

To ensure that the community obtains efficient and equitable service from the delivery system requires

a process of delicate fine tuning of responsibilities, including maintenance and operations. This in turn

also requires that more knowledge about water and dirt as sources of diseases is disseminated within

the user group, extreme poor, poor and non poor alike. The existing demand for safe water cannot be

transformed into better health unless users fully understand the health protective applications of these

amenities and implement them accordingly. This would require developing the capacities and skills

6.2 Education and Awareness Creation







and health messages as part of health education in schools.

The development of mechanism for community participation involving women in particular as the prime

haulers and users of domestic water supplies must be streamlined with the development of linkages

between sanitation, health education and water supply capitalizing on the popularity of water supply to

create demand for sanitation and advance the prospect of health impact

6.3 Sustainability Mechanism

Aside from need for water, communities has needs and problems but have limited options due to lack of

access to funds or local resources. In many ways, their lack of access or skills to access the resources

place them at a disadvantage. For basic services and other support to reach the communities especially

the low-income group, there is a need therefore for external resources to be made available, to link

demand with present skills. This can be complemented with manpower support (community organizer)

to guide user groups and low income households to gain access to other form of productive activities

that will improve their economic welfare and sustained community activities.


The involvement of an NGO or UPPRP is needed for coordinative efforts and sharing of resources. There

are a number of NGOs operating in the area that provide support on water and sanitation projects to

underpin other income generating and health related schemes.

NGOs have grown to a level where today they are an accepted feature of the administrative landscape.



sanitation coverage towards health for all.

6.4 Consultation and Participation Activities

A summary of the participatory process that will be employed by the project is summarized in the Table

below.

6.5 Timeframe and Budget Requirement

The Community Participation Plan shall be implemented within a period of 3 years. The budget has been

included in the Business Plan which includes support for training, and management.


Table 4.1 Participatory Framework in KWASA

Activity Task Time Frame Stakeholders

/Responsibility

Expected

Output

Remarks

Pre-Implementation Phase – Social Preparation

1. Establishment of a

functional COMREL

Office

+ Hiring of Personnel

Social Development

Specialist and Gender

Specialist

2011 (mid

year)

KWASA, Focal

point/person in

place

This would

require at

least 6

months

2. Identification and

Targeting of poor

households

Census of poor

households, issuing of

IDs

FGDs

Surveys

2011 Social Dev

Specialist

Gender

specialist

Ward level

communities

prospective

KWASA

customers for

connection to

water supply

system secured

3. Create Data base

Information Profile

Profile of households

Gender disaggregation

of data

2011 KWASA

Social Dev

Specialist

Gender

specialist

Ward level

communities

Data base

information in

place

Requiring IT

person to

manage data

base

Implementation Phase – Social Mobilization

1. Project Information

Dissemination

Development of

information materials

Flyers

Information campaign

via mass media, radio

Social marketing and

information campaign;

2011 – 6

months

Potential

customers, local

citizens of KCC,

commercial

customers

Improved

program of KCC:

issues on billing

rates, water

quality & qty,

O&M,

monitoring &

reporting

Should be

conducted

before

COMDEV

and

marketing

activities

2. Community

mobilization

Formation of

Water User

Groups(WUG)

Community organizing

Coordinating with CDC

Formation of

Community

Volunteers

CDCs

Poor

Households

Organization of

water user

groups and WSS

committees at

ward level in

place

Utilize

current CDC

organized

and

developed

by UPPRP

3. Coordination and

Linkages with

other institutions

Identification of NGOs

Link water with other

initiatives

Skills training

Capacity building

Income generation

Referral of Poor

households to

2011-0nwards NGOs

Private Sectors

Government

Funding

Agencies

Poor and

women

households

provided with

skills trainings

And engaged in

IGPs

Link with

existing

NGOs like

UPPRP


Activity Task Time Frame Stakeholders

/Responsibility

Expected

Output

Remarks

appropriate

institutions

4. Institutionalizatio

n

4.1 Workshop on

Mainstreaming of

Community

Participation in water

management

,

a) Prepare

workshop/training

design

b) Prepare Operations

Manual on

participation

process in project

cycle

c) Conduct of

workshop

Mid 2012

WUG, women

poor

households,

KWASA -

Community

Development

Specialist and

Technical Staff

Operations

manual and

guidelines

established

Invite

resource

person or

Expert in

4.2 Implementation

of Operations Manual

4.2. 1. Participation in

site selection and

installation,

operations and

maintenance

b) Training on

operations and

maintenance

c) Training on

collection

bookkeeping and

reporting

d) Training on M & E

- water leakage

-illegal connection

2012 -2017

KWASA,

Technical staff

WUG

Committee

Appropriate

training

provided to

develop

capacity of

WUG

4.2.3 Establishment of

Complaints and

Response Mechanism

at the Ward Level

Response procedures

at community level

Set up local based

Action Committee to

facilitate complaints

and action –ward level

KWASA – COMREL to

address issues within

a specified time

Meetings/dialogue

with HHs

Conflict resolution

2012 -2017 KWASA

WUG

COMREL

4.2.4

Participation in

monitoring and

evaluation

Establish monitoring

Internal monitoring

team

Monitoring of target

vis-a vis achievement


Appendix 4: FGD Documentation

ADB TA 7385 BAN: Preparing for the Khulna Water Supply Project

1. INTRODUCTION

The Focus Group Discussions (FGD) intends to generate information from community-based

stakeholders (government, non-government, community based including women organizations) and

households of low-income and slum areas on existing efforts and management systems related to water

supply and sanitation activities as well as income generation and micro-financing schemes.

Recommendation and suggestions on the most affordable cost effective and sustainable schemes to

ensure water supply for low-income and slum households have been solicited and issues and concerns

reviewed. Willingness to participate in Project activities has also been discussed and proposals on

participatory activities and mechanisms have been solicited.

2. OBJECTIVES

The main objectives of the focus group discussion (FGD) are to:

• Identify existing water source, supply condition and gender role to arrange water for household use

in the low income/slum areas;

• Justify the probability of KWASA piped water supply in the slums/low income areas in the city;

• Assess willingness to access water to KWASA piped water supply and pay for that by the slum

people;

• Assess willingness to participate in the management of water supply system;

• Recommendations on how to improve capacity of the slum people to pay for service.

In order to achieve the above objectives the TA Consultant carried out FGD in 12 Wards of Khulna City

Corporation (KCC) starting from 23rd September and ended to 3rd October 2010.

3. FGD PREPARATION

Activities undertaken in preparation for the FGD were as follows:

• Initially the existing water distribution network was studied and based on the waterline traversed

the area, 12 out of 31 Wards were identified/selected for Focus Group Discussion (FGD).

• Prepared List of the different community-based organizations (government and non-government)

operating in the 12 wards where the FGDs were conducted.

• The TA Team had a discussion with the National Project Coordinator (NPC) and Team in Khulna of

Urban Participatory Poverty Reduction Project (UPPRP) of UNDP. They were requested to provide

the details of CDCs (Community Development Committee) formed under UPPRP in the respective

Wards.

• The UPPRP COs (Community Organizer) assist, facilitate and coordinate the participation and

logistics preparation with the ward officials.


• Various forms and questionnaire required to conduct FGD, receipt and financial forms required for

accounts were prepared.

• Two facilitators (male and female) were recruited in order to facilitate planed FGD.

• TA Consultant and UPPRP team had a meeting and finalized the schedule including date, time and

location of FGD. The strategy was finalized to communicate with Ward Councilors, stakeholders,

representatives of CDCs etc in conducting FGD.

• After completion of the preparatory activities, TA Consultant conducted FGD from 23rd September

to 3rd October 2010, successfully with the help and assistance of respective/concerned persons, in

the 12 Wards of Khulna City Corporation (KCC).

• Documentation of the FGD proceedings was done properly. The list of participants, their gender and

organizations represented were fully documented. The discussion proceedings were also fully

reflected in the records and documented, especially the comments and recommendations on the

issues and concerns, which have been discussed in the following paragraphs.

4. EXECUTION OF FGD

4.1 Schedule

The schedule of FGD prepared by the TA Consultant after discussion with the stakeholders and all party

concerned and conducted accordingly are given the following table:

Table 1: The Schedule of FGD

Sl

No.

Ward

No.

FGD Conducted

On

Duration Venue Remarks

1 12 23 Sep 2010 09:30 – 12:30 am Ward Office TA Consultant and

two facilitators

assisted organized

the FGD.

2 13 23 Sep 2010 03:30– 06:00pm Chararhat School -Do-

3 7 26 Sep 2010 09:30 – 12:30 am Ward Office -Do-

4 8 26 Sep 2010 03:30– 06:00pm Ward Office -Do-



7 21 28 Sep 2010 09:30 – 12:30 am Greenland Office -Do-

8 15 28 Sep 2010 03:30– 06:00pm Khalishpur Girls

High School

-Do-



12 31 03 October

2010

09:30 – 12:30 am Ward Office -Do-

11 22 03 October

2010

03:30– 06:00pm Customghat Pre-

primary School

-Do-


4.2 Participants

Based on the initial assessment of the low-income areas

in the various wards of KCC traversed by the KWASA

water supply pipe system, 12 wards were identified and

selected for FGDs. In these 12 wards, the UPPRP, UNDP

has already organized the extreme poor and poor

households into primary groups; 10 primary groups

constituting a community development Committee (CDC)

with a committee representing the various primary

groups already organized. Some wards have substantial

number of extreme poor and poor households as

reflected in the number of community development

committee (CDC). The following table shows the number of wards and CDC in these wards.

Table 2: Wards and CDO/C for inclusion in the FGD

Ward Number Community Development Committee (CDC) Category

Old New Subtotal

7 3 5 8

8 - 4 4

9 2 10 12

10 7 3 10

11 3 - 3

12 7 - 7

13 2 6 8

15 - 3 3

21 5 3 8

22 4 - 4

30 5 6 11

31 6 14 20

Total = 12 44 54 98


The participants to the FGD were the representatives of

the community-based committees (CDCs), stakeholder

(government and non-government), Ward Councilors and

officials, school teachers, Immams etc. One FGD/Ward

was conducted in one session where there were average

30-35 participants in each of the individual FGD. Table 3

below shows the tentative composition of the FGD

participants per Ward.

The Team leader & the Deputy Team leader also visited

some venues and took part in the discussion

Table 3: FGD Participants

Ward

No.

CDC CDC

Participant

s

Organization

/ Stakeholder

Participants

Ward Official

Participants

FGD

Organizers

TOTAL

7 8 16 8 2 4 30

8 4 15 8 2 4 29

9 12 15 - 30 8 2 4 29 - 44

10 10 15 - 20 8 2 4 29 - 34

11 3 15 8 2 4 29

12 7 15 8 2 4 29

13 8 15 8 2 4 29

15 3 15 8 2 4 29

21 8 15 8 2 4 29

22 4 15 8 2 4 29

30 11 15 - 22 8 2 4 29 - 36

31 20 20 - 40 8 2 4 34 -54

Total:

12

98 354-401

The participant’s attendance sheet is attached as Appendix 4.1.

4.3 FGD Approach

Two sessions per day for a total of 12 FGD sessions were undertaken starting the third week of

September and ending by first week of October 2010. Discussions were held following a specific

questionnaire where at the beginning of the session, the TA Consultant presented the objective and

purpose of the FGD. The Consultant (National Social Development Specialist) two facilitators including

Community Organizer (CO) of UPPRP organized and facilitate the focus group discussions.

Two facilitators assisted the Consultant in the documentation, time management and logistical

consideration of the FGD conduct too. The questions included in the questionnaire used to conduct FGD

are enclosed in Annex – 2.


5. Findings of Focus Group Discussion (FGD)

The National Consultant (Social Development Specialist) carefully studied and analyzed the

message/information provided by the FGD participants, documented by the facilitator and prepared the

summary of findings which can be described as follows:

Present Source of Water supply in Slums/Low Income Areas

The FGD participants from almost all the slums/low income areas reported that the main source of

water supply in the areas is the deep and shallow hand tube wells installed by former KCC, GOs and

NGOs. The water from the tube wells are generally used for drinking, cooking and washing purposes.

River/pond water in some areas where available, is used for domestic purpose only.

Justification for KWASA Piped Water Supply to the Slums

The participants in the discussion programme include the respective Ward Councilors and officials;

stakeholders reported that the inhabitants in the slums are in need for sufficient supply of water for

drinking and other domestic use. The scarcity of fresh water in the whole region is likely to worsen

further with the rise of sea level and intrusion of saline water deep into the greater Khulna district. In

some area a little arsenic was identified. In some area women and children are the worst victims. They

have to carry water from long distances. Most common water related diseases in Khulna are dysentery,

cholera and typhoid. The women are also suffering by urinal infection and reproductive infection.

It is informed by the Ward councilors and participants that many of the hand tube wells, only source of

potable water supply in the slums, are out of order due to lack of proper repair/rehabilitation for want

of required spare parts. As a result water supply situation in the slums are getting worse and worse day

by day.

In order to cope with the situation the slums/low-income areas should be connected to KWASA piped

water supply.

Willingness to Access to KWASA piped Water Supply

From the discussion and interaction during FGD it is reflected that the slum/low income area peoples

are severely suffering from supply of adequate quantity of fresh potable water. After implementation of

JICA and ADB investment, KWASA will have capacity of producing large quantity of fresh water.

Therefore the peoples have shown their great interest to have an access to KWASA piped water supply

because it is expected to be ensured for:

• 24 hrs. supply;

• Sufficient quantity of water;

• Fresh and potable water;

• Free of water born diseases and good health;

• Reduction of conflicts among the water consumer/user;

• Maintaining good environment;

• Reduction of women sufferings for collecting water.


Location of Water Tap

Most of the participants opined to introduce water service connection in the area for a cluster consisting

of 10-12 households. A very few especially the land owner in the area interested to have individual

water connection for the household. For a cluster of households the probable location of common water

tap should be central point of the cluster and away from the KWASA existing deep/shallow hand tube

wells location.

Willingness to Pay

It was enquired by the FGD organizer and facilitator to the participants from slums/low income areas

that whether they are interested to pay for water if connected to the KWASA piped water supply

system. The participants responded to the queries that they are ready to pay for water to some extent.

For group connection, each of the members intends to pay Tk.10-20 per month but for individual

connection they are ready to pay Tk 100 per month.

Water Tap Management

An outline of water tap management was obtained after discussion/interaction with the participants.

They suggested selecting a representative through following selecting procedures, who will be taking

care of the water tap. The options of selecting representative can be described below.

i) Mutual discussion and understanding among the group can be the way of selecting the

representative;

ii) Ward Councillor can select a representative with the consent of community;

iii) CDC, UPPRP can selective representative from beneficiaries.

The care taker/representative will be provided training on maintenance of the tape, book keeping on

collecting bills and payment. Maintenance of the water connection will be the responsibility of the

group. It was agreed that the user especially the women will be careful of using the water tap. The

selected representative will make necessary repair and maintenance by the money to be collected from

the member of the group. He/She will also collect the monthly subscription and pay the bill on time. The

participants requested to keep provision of paying bill to Bank through mobile SMS.

Status of Women in Slum

FG discussion and interaction with the participants reflects that

the women in the slums and in low income areas are more

considerable as the water users are mainly women and they are

main responsible for water use at homestead level. Women are

involved in care taking of hand tube well, sanitary latrine, family

health, and all sorts of water uses at household works. Women

consider that lack of pure drinking water & sanitation facility is

also effects on their reproductive health but men are usually not

much concerned about the sanitation and hygiene status of the

household, lack of portable drinking water affects them differently.


The educational levels of women in slums/low income areas are varied:

• Never been to school;

• Primary School pass;

• SSC Pass-(a few);

• HSC pass-(a few);

• Vocational and Technical School;

• Madrassa

• University (rare)

Most of them are involved in different kind of income generating activities for their livelihood. Majority

of them are involved with NGOs had access to micro credit. Among the people would not receive micro

credit are interested to get it. The occupation of the women is as follows;

• House wife

• Housemaid

• Sewing

• Labor

• Embroidery

• Poultry

• Beef Fattening, Goat Roaring

• Block, Batik

• Cottage Industry

• Small Trade (Cloth, Fire Wood, Cake, Fish Vendors, Handicrafts, Paper Bag, Hawker)

• Nursing maid

• Tea Stall

• Day Labor

• Teacher

NGOs & Activities in Slums

There are more than 30 NGOs working in the slums in Khulna City Corporation (KCC) with different social

development activities. The programme in particular, is micro credit, health and hygiene, solid waste

management, education and job placement activity, mother and child care, protection of child

trafficking, legal support to women etc. The list of the NGOs and their programme in details are

attached as Appendix 4.1.

6. Suggestions/Recommendations from FGD Participants for Future Development

The FGD participants recommended the following activities to be carried for their future development:

• Arrangement for supplying sufficient quantity of potable water with minimum cost;

• Emergency repair/rehabilitation of hand tube wells which are out of order.

• Construction of road and drain and provide sanitation facility in the area in a planned way;

• Widening the existing narrow roads;


• Identify the poor & extreme poor in the slums;

• Conduct skill development activity/programme;

• Create job opportunity for unemployed;

• Create job opportunity for women;

• Control drug and narcotics;

• Rehabilitate the floating people;

• Education for all;

• To control child marriage, violence against woman, trafficking, dowry;

• Arrangement for old home;

• Campaign for social awareness.


Appendix 4.2

Questionnaire used to conduct FGD

i) What are the ongoing activities regarding water & sanitation in your area?

ii) What kinds of Income Generating Activities program are going on?

iii) What type of micro credit programs are being carried out in your area?

iv) What kind of skill development activities are taken in your area?

v) What kinds of activities are being carried out for community development?

vi) What kind of program do you consider necessary for your future development?

vii) What is your opinion if your area is supplied /connected to KWASA pipe water supply system?

viii) How do you want to avail this service?

ix) What kind of steps should be taken for accessibility of pure drinking water for all?

x) How the water supply program can be operated?

xi) What is your expectation in this issue, what kind of measures should be taken by KWASA?

xii) How the expenditures in this issue can be managed?

xiii) How can you manage to pay the Bill?

xiv) What is the existing source of water supply in your area?

xv) What will be the probable location of water tap –will it be at the existing tube well location or

some other location?

xvi) Specify the location?

xvii) Are you ready to pay for piped water supply?

xviii) How much per HH are able to pay?

xix) How can you assist KWASA regarding water supply?

xx) What roles the women can play regarding water supply?

xxi) Are you willing to take supply water? How much per HH could pay? Are you capable of giving

decision in this respect?

xxii) What kind of IGA you require in your area?

xxiii) What kind of program you can undertake for awareness build up?

xxiv) What will be the system of payment for water bill?

xxv) Do you need any training for your skill development?


Appendix-5

List of NGOs Working in KCC

Sl

No.

NGOs Working in the Slums

in Khulna

Activities

1 BNSB Eye Hospital Treatment support to all Eye Diseases

2 Urban Primary Health Care

Project (UPHCP)

Primary health care, anti natal and post natal check up,

children and mother health care

3 Intellectually Disabled

Children Education

Programme (IDCEP)

Make education, mental and physical exercise and

cultural development

4 RUPANTAR Good governance, human rights, awareness

development and theatre development

5 World Vision Bangladesh Education, micro-credit, health and sanitation, HIV/AIDS

6 Unprivileged Children’s

Education Programme

(UCEP)

Technical education and training, job placement

7 NOBOLOK Micro credit, water sanitation and hygiene

8 Somaj Progoti Sansthya (SPS) Micro credit, water sanitation and hygiene, solid waste

management

9 PRODIPAN Micro credit, water sanitation and hygiene, solid waste

management

10 Jagrato Juba Sansthya (JJS) Education, micro credit, health and sanitation, HIV/AIDS.

11 DIPTE Bangladesh Education, micro credit, health and sanitation, HIV/AIDS,

election etc.

12 ADAMS Micro credit, water sanitation, hygiene and solid waste

management

13 Paribar Kalyan Sansthya

(PKS)

Primary health care, anti natal and post natal check up,

children and mother health care

14 Bangladesh National Women

Lawyer Association (BNWLA)

Legal support training

15 Bangladesh Legal Aid

Services Trust (BLAST)

Legal support training

16 NGO Forum Health, sanitation, hygiene and water supply

17 KARITAS Education, micro credit, health and sanitation,

rehabilitation

18 Kh.UDA Day care facilities for urban poor children, food and

nutrition, health services

19 UTTARAN Education, micro credit, health and sanitation, health

services

20 CONCERN Bangladesh Education, micro credit, health and sanitation,

awareness building, rehabilitation

21 SHUSHILAN Education, micro credit, health and sanitation,

rehabilitation

22 OPERAJEO Bangladesh Shelter for street and trafficking children, life skill


Sl

No.

NGOs Working in the Slums

in Khulna

Activities

development, prevention of child trafficking.

23 NAGORIK Forum Transparency, good governance, solid waste

management

24 PCAR Non-formal education, shelter for street children, life

skill development, job placement, rehabilitation, skill

development

25 ASROY Health and sanitation, rehabilitation

26 BRAC Education, micro credit, health and sanitation, delivery

centre

27 Jagoroni Chakra Foundation Hard to reach school programme, non-formal education,

micro credited

28 MARIE STOPS CLINIC Reproductive health care facilities, health services

29 DSK (Dusthay sasthya

Kandro)

Health and sanitation, micro credit

30 SOS Shishu Polly Non-formal education, programme for street children,

life skill development, job placement, rehabilitation, skill

development training

31 MSSES Life skill development, theatre development,

programme for street children.

32 PROSHIKA Education, micro credit, health and sanitation, delivery

centre


Appendix 6: List of Persons Met

Date Names/ Organization Gender Issues Discussed

26/08/10 Kazi Fazlur Rahman

Secretary

Khulna City Corporation

M Introduction on TA project & requested them to

support this program.

30/08/10 1.Mr. Tapon Kumer Ghosh

Chief Executive officer


2.Kazi Fazlur Rahman

Secretary


M

M

Discussion on involving the ward Commissioners for

participating in the cluster wise focus group

discussion, & collection the list of ward

commissioners with their name & addresses.

30/08/10 1.Md. Shahidul Islam

Urban Agricultural Expert

UPPRP Project

Khulna

2.Mr. Shahidul Islam

Settlement Improvement

Expert

UPPRP Project

Khulna

M

M

Project orientation, Ways where the Project and the

organization could cooperate. Arrange meeting with

the NPC of UPPRP Project.

31/08/10 1. Mr. Azahar Ali

NPC

UPPRP Project

UNDP

Dhaka

2.Mr. S M Nazrul Islam

Town Manager

UPPRP Project

Khulna

M

M

Introducing with KWASA program

do

05/09/10 Mr. S M Nazrul Islam

Town Manager

UPPRP Project

Khulna

M To discuss about FGD & how they could assist in this

program


Town Manager

UPPRP Project

Khulna &

All sector Specialist

UPPRP

All Community organizers

UPPRP

M - 15

W - 03

Meeting with UPPRP Staff to selection of venue,

arranging the program of FGD, & distribution the

responsibilities.


Town Manager

UPPRP Project

Khulna & staff.

Provide all kind of logistic support.


References:

Md. Wahiduzzaman, Water Consumer Survey in Khulna City – TA 7223 BAN: Establishing the Khulna

Water Supply and Sewerage Authority, August 2009.

KWASA, Final Report: Feasibility Study for Khulna Water Supply Improvement Project in the People’s

Republic of Bangladesh, Khulna City: May 2010.

JICA Study Team, Progress Report (2) – Main Report: Feasibility Study for Khulna Water Supply

Improvement Project in the People’s Republic of Bangladesh, Khulna City: July 2010

Arthur McIntosh, TA Consultant’s Report: Diagnostic Report - Bangladesh: Supporting the Establishment

of the Khulna Water Supply and Sewerage Authority, Khulna City: December 2008.

Appendix 6 KWASA BUSINESS PLAN 2011 TO 2017

Page i

KHULNA WATER SUPPLY AND SEWERAGE AUTHORITY (KWASA)

KWASA BUSINESS PLAN 2011 to 2017

2011

PREPARING THE KHULNA WATER SUPPLY ADB TA 7385 – BAN


Page ii

TABLE OF CONTENTS

A. EXECUTIVE SUMMARY .............................................................................................................................................. 1

Summary ............................................................................................................................................................................ 1

B. Vision, Mission, Values & Objectives ........................................................................................................................ 3

Key Performance Indicators ............................................................................................................................................... 4

C. Production & Demand Analysis ................................................................................................................................. 7

Introduction ........................................................................................................................................................................ 7

KWASA Future Source Planning ....................................................................................................................................... 8

KWASA Production, Demand and Coverage Assumptions ............................................................................................... 9

Population & Households .............................................................................................................................................. 9

Slum Service & Low Income Community Service Provision .............................................................................................. 9

Production Source Development ................................................................................................................................. 11

Service Coverage & Demand ...................................................................................................................................... 11

D. INVESTMENT PLAN .................................................................................................................................................. 14

D1. Projects Included In The Investment Plan ................................................................................................................. 14

D1.1 Projects Approved & Budgeted...................................................................................................................... 14

D1.2 Investment Projects at Feasibility/Pre-approval Stage: ................................................................................. 14

D1.3 Additional Projects Identified Under ADB TA 7385 ........................................................................................ 14

D1.4 Consultancy & Management Systems ........................................................................................................... 15

D2 Projects Not Included in Investment Plan ........................................................................................................... 15

E. Financial Plan ............................................................................................................................................................ 17

Introduction ...................................................................................................................................................................... 17

Major Assumptions .......................................................................................................................................................... 17

Financial Model Base Case ......................................................................................................................................... 18

Sensitivity Scenarios ........................................................................................................................................................ 19

F. Human Resources Development Plan ..................................................................................................................... 21

F.1 KWASA Human Resource Management ........................................................................................................... 21

F.1.1 Introduction .................................................................................................................................................... 21

F.1.2 KWASA Current Organisation ....................................................................................................................... 21

F.1.3 Phase 1 Organisation .................................................................................................................................... 24

F.1.4 Phase 2 Organisation .................................................................................................................................... 26

F.1.5 Staff Efficiency Ratios .................................................................................................................................... 28

F.1.6 Organisation Development During Business Plan Period.............................................................................. 28


Page iii

F.2 KWASA Capacity Building.................................................................................................................................. 30

List of Tables Table 1: List of KWASA Key Performance Indicators ......................................................................................................... 5 Table 2: KWASA Key Performance Indicator Targets 2011/12 to 2016/17 ....................................................................... 6 Table 3: Sources of Water in Use in Khulna City ................................................................................................................ 7 Table 4: Population, Household and Service Coverage data........................................................................................... 10 Table 5: Summary of Production Source Development.................................................................................................... 12 Table 6: Demand Forecast and Derived Service Coverage Ratios ................................................................................. 13 Table 7: Summary of Five Key Projects to be undertaken during the Business Plan Period by Project Totals............ 16 Table 8: Key Revenue Improvement Action Plan ............................................................................................................. 18 Table 9: Results of Base Case ........................................................................................................................................... 19 Table 10: Financial Model Scenario Variables .................................................................................................................. 20 Table 11: Summary of KWASA Existing Staff Numbers by GoB Classification .............................................................. 23 Table 12: Summary of KWASA Staff Numbers by GoB Classification to Phase 1 ......................................................... 24 Table 13: Summary of KWASA Staff Numbers By GoB Classification All Phases ......................................................... 26 Table 14: Summary of Connections and Staff Efficiency Ratio through the Corporate Plan Period ............................. 28 Table 15: Structure and Staff Numbers ............................................................................................................................. 29

APPENDICES

Annex 1 – Summary of Proposed Capital Investment for KWASA under GOB/JICA/ADB Loan

Annex 2 – Preliminary Financial Statements 2009 and 2010

Annex 3 – Financial Plan: Major Assumptions

Annex 4 - Financial Projections for the Base Case Scenario

Annex 5 – Results of Scenario Analysis

Annex 6 – KWASA Organisation Structure Staffing Requirements


Page iv

ABBREVIATIONS

ADB - Asian Development Bank BAN - Bangladesh DMD - Deputy Managing Director DPP - Development Project Proposal DTW - deep tube wells FY - Financial Year GoB - Government of Bangladesh HTW - hand tube well JICA - Japan International Cooperation Agency KCC - Khulna City Corporation KWASA - Khulna Water Supply and Sewerage Authority LGD - Local Government Division LGRD - Local Government Rural Development MD - Managing Director O & M - Operations and Management SSTA - Supporting and Establishment of Khulna water Supply TA - Technical Assistance TK - Taka TOR - Terms of Reference WASA - Water Supply and Sewerage Authority


Page 1 of 60

A. EXECUTIVE SUMMARY

Summary

This Business Plan covers the 5 year period from FY 2012 to 2017. The key theme of the business plan is the expansion of KWASA water coverage and increasing the availability of water to 24 hour supply through the construction of surface water treatment facilities, the rationalization of groundwater abstraction and the construction of new storage and distribution network infrastructure throughout the city. KWASA principle focus for service expansion will be the conversion of KWASA Hand Tube Well users to a safer and more abundant and available piped water supply; per capita consumption for these users is forecast to increase from around 82l/c/d to 120 l/c/d with the proposed projects. The second target for the new supply will be natural growth in population of Khulna City and thirdly will be the private well users in particular those using private wells for commercial uses. A number of key projects are planned for the period – the largest of which is the design and construction of a 110 Mld surface water treatment plant and associated transmission, storage and distribution network to provide water all year round to KWASA. Low income communities account for a significant proportion of the population of Khulna. Equitable provision of supplies for slum and low income communities is a key objective for KWASA and mechanisms will be put in place to ensure individual or community uptake of connections as appropriate. Service coverage is forecast to increase from 24.1% to 57.0% over the plan period rising to a maximum of 73.0% in 2025 (further growth in coverage from 2025 will require additional investment in source development of which a further 10% of coverage could come from unexploited groundwater). Water availability, based on power availability for pumping and KWASA operating regime is currently in the order of 16-20 hours per day. This will become 24 hour in 2017 with the commissioning of the new SWTP. In terms of water resources KWASA will follow a conjunctive use concept utilizing groundwater from the Khulna City (sustainable yield 159 Mld1 with additional 4 meter drawdown on current level) and Phultala aquifers in a sustainable manner and supplementing this with surface water from the proposed intake at Mollarhat on the Madhumati river. Significant changes are planned for KWASA over the business plan period starting immediately with the rationalisation of customers to correctly reflect the customer base; investment (with GOB grant funds) in groundwater development schemes; opening of zonal offices within the city of Khulna; move to customer metering and volumetric charging for water; development of a major surface water treatment plant and the introduction of treated water storage and distribution on a zonal basis across the city significantly increasing the service coverage and customer base. All these changes require appropriate organization structures to be in place if the benefits of the changes are to be realised by KWASA customers. It is planned to amend KWASA organisation structure in 2 phases:

the first phase for the start of FY 2014 when a third Deputy Managing Director is introduced to focus on customer service; and the second phase at the time of the commissioning of the new WTP at the start of FY 2017 when a zonal operations system will be implemented whereby all customer-related activity is managed at the zone level.

1 Result of analytical analysis of Khulna aquifer as part of ADB TA 7385 Groundwater Assessment Report 2010


Page 2 of 60

Capacity Building support will be available to KWASA, under the ADB loan, to improve the corporate management of KWASA; this will focus on a number of issues, including:

KWASA revenue management - this will be overhauled during the early years of the business plan period. A key aim is for all supplies to be metered and for customers to pay on a volumetric basis for water received;

Implementation of a connection metering program with the aim of having all existing connections metered by FY 2017

Support to the development and implementation of appropriate business management systems for KWASA day to day operation

Establishment of linkages and connection implementation mechanisms for low income customers to ensure the smooth uptake of piped water facilities when they become available;

KWASA HR management – policy, processes, and organisational change implementation;

In order to fund the planned major infrastructure investment KWASA will avail, through the Government of GoB, a loan/equity of Taka 25.4 billion (US$ 363.5 million), this fund will be made by three investors, namely JICA, ADB and GoB. A summary of the proposed investment by investor is included in Annex 1.

A detailed financial model has been prepared for KWASA taking into account all investment and operational costs, forecast of production and demand and estimates of revenues to assess the viability of the proposed investments and KWASA in long term (FY2012-FY 2030). The base case financial analysis reveals that cash balances will be sufficient to cover cash operating and maintenance costs and debt service under the following key assumptions:

By project completion in 2017, metering of all connections and an initial tariff in real prices of Tk 13.10/m3 for domestic connections (Tk 19.35/m3 in 2017 prices) and Tk 26.20/m3 for non domestic connections (Tk 38.71/m3 in 2017 prices)

30% of the project cost will be funded by government equity and 70% through government loan, and concessional loan terms at 2% interest rate per annum, 30 years repayment period including an 8 year grace

period on principal and interest payment


Page 3 of 60

B. Vision, Mission, Values & Objectives

KWASA has a clear vision for the direction and development of the business. This is supported by mission and value statements and clear objectives that form the basis for the investments and future actions identified in this business plan.

KHULNA WASA Vision:

To be the pioneer in the water and sewerage sector in Bangladesh ensuring a safe and sustainable water supply and environment friendly sewerage management for Khulna City to the satisfaction of the customer

KHULNA WASA Mission:

To ensure digital service to all customers supplying sufficient amount of potable water and proper sewerage solutions by 2020; through use of e-technology, automation, research, effective planning and HR development, raising finance for investment in service expansion, efficient operation & maintenance and sharing of experience with similar organisations;

KHULNA WASA Values:

Honesty; Transparency; Sincerity; Accountability; Customer focused service Serving future generations

KHULNA WASA Objectives:

24 hour water supply to all customers - from FY 2017 (SWTP commissioning) 100% Water coverage by 2020 through sustainable sources including rain water harvesting, surface water

treatment minimising ground water abstraction Deliver water to Bangladeshi water quality standards – by FY 2017 Think about customers first - establish one stop service – within FY 2011 Digital Billing for all customers by FY2012; Metering of all connections by FY2015; Establish customer friendly revenue collection options – within FY2012 Develop/implement computerized management systems – accounting, billing, within FY2012 Establish an effective Sewerage Master Plan – within FY2015

The slogan for the company is “KHULNA WASA – Safe Water, Safe Life”.

The company objectives are primarily focused on:

expansion of the water supply – addressing the coverage, availability and quality of water supplied; improving the management of KWASA (through the use of effective management systems) – in

particular revenue management; supporting the customer in their dealings with KWASA and facilitating ease of payment for services

provided.


Page 4 of 60

The management team recognise that objectives will change over time as the needs of the customer and the business will change.

The proposals under preparation for new sources of water, investment in network and the capacity building of KWASA are all consistent with the objectives defined by KWASA management team

Key Performance Indicators

In line with the objectives described above KWASA have identified a number of high level Key Performance Indicators (KPI’s) to be used as a means of measuring the success and progress towards achieving stated goals across all aspects of the organisation operation.

The Objectives are described in Table 1 below along with the relevant data requirements and infrastructure/monitoring requirements to allow them to be properly gathered. Targets for the each of the objectives across the business plan period are shown in Table 2.


Page 5 of 60

Table 1: List of KWASA Key Performance Indicators

No. INDICATOR TITLE FORMULA FOR INDICATOR TO BE USED

WHAT THE FORMULA MEASURES AND WHAT ACTION IT SHODL GENERATE DATA REQUIRED ADDITIONAL INFRASTUCUTRE/

MONITORING REQUIREMENTRESPONSIBILITY FOR DATA COLLECTION & REPORTING TIMING OF IMPLEMENTATION

1 Water Coverage – KWASA Piped Water

Population Served by Piped NetworkPopulation Total

Measures the number of people supplied by KWASA in relation to total population – and is linked to the drive for increasing coverage

No. Of households connected to KWASA piped network; Household occupancy rate;

Consumer Census results;Data will be collected

DMD Engineering through Planning Department;

FY 2012 onwards

2 Water Quailty Testing Compliance

No. of tests carried outNo. of tests that should be carried out

Measures compliance with statutory testing requirements

Bangladeshi Statutory Water Quality Requirements

none DMD Engineering through Production Department;

2013 - with Phase 1 of Organisation

3Bacteriological Quality of water supplied

No. of Bacti. tests that pass BD stndsNo of tests carried out

Measures bacteriological water quality Test results for :

Bacteriological analysis

Water quality monitoring unit set up and equipped

DMD Engineering through Production Department;

2013 - with Phase 1 of Organisation

4 NRW Ratio Water Produced – Water Sold Water Produced

The difference between the volume of water produced and the volume of water sold/billed in a period.

Production Volume;Billed volume;

100% production sources metered and recorded on a monthly basis;All customer connections metered;

DMD Engineering through Production Department;

Start of 2016;

In the period between now and 2015 periodic assessments of UFW should be carried out;

5 Meter Coverage Metered ConnectionsTotal No. of Connections

Measures implementation performance of the 100% metering program

Implementation plan Meter purchase;

Responsibility

DMD Engineering through Distribution Department;

On Availability of funds - from FY2013 onwards

6 Billing Ratio No. of connections billedTotal No. of connections

Measures implementation performance of the household billing project

Implementation plan Billing system in place - this may or may not be linked to a connection program

DMD F&A through Revenue Department to FY 2013;

DMD Customer Service through revenue Section from FY 2014

FY 2012 onwards

7 Revenue Collection Efficiency Revenue CollectedRevenue Billed

This indicates effectiveness of collection system which impacts on the financial health of a utility. Collection efficiency higher than 100% indicates that total collections for the period included payment of bills for the previous period.

Value of revenue collected in the period;Total value of billings in the period

Accounting software in operation; DMD F&A through Revenue Department to FY 2013;

DMD Customer Service through revenue Section from FY 2014

FY 2012 onwards

8 Operating Ratio Operating Expenses (excl.depreciation) Operating revenues

A low operating ratio means revenues from tariffs cover the O&M costs comfortably. A healthy utility should have a ratio of about 0.75. A ratio above one means revenues do not cover O&M costs and relies heavily on subsidy/cross subsidy.

Operating expenses for the period;Operating revenue for the period (is this billed revenue or collected revenue?)

Accounting software in operation; DMD Customer Service through Revenue Department from FY 2014

FY 2012 onwards


Page 6 of 60

Table 2: KWASA Key Performance Indicator Targets 2011/12 to 2016/17

No. INDICATOR TITLE FORMULA FOR INDICATOR TO BE USED Current Year 2012 2013 2014 2015 2016 2017

1 Water Coverage – KWASA Piped Water

Population Served by Piped NetworkPopulation Total 24.1% 25.6% 27.1% 28.5% 29.9% 31.3% 57.0%

2 Water Quailty Testing Compliance No. of tests carried outNo. of tests that should be carried out 0% n/a 100% 100% 100% 100% 100%

3Bacteriological Quality of water supplied

No. of Bacti. tests that pass BD stndsNo of tests carried out 0% n/a 80% 80% 80% 80% 90%

4 NRW Ratio Water Produced – Water Sold Water Produced 100% n/a n/a n/a 31% 30% 25%

5 Meter Coverage Metered ConnectionsTotal No. of Connections 0% 0% 0% 0% 0% 0% 100%

6 Billing Ratio No. of connections billedTotal No. of connections 84% 100% 100% 100% 100% 100% 100%

7 Revenue Collection Efficiency Revenue CollectedRevenue Billed 80% 85% 90% 95% 98% 98% 98%

8 Operating Ratio Operating Expenses (excl.depreciation) Operating revenues

4.17 1.48 1.52 1.97 1.57 1.49 0.45


Page 7 of 60

C. Production & Demand Analysis Introduction

The inhabitants of Khulna currently receive water from three principal sources. Estimates of the numbers of people using each type of source have been made based on prior studies carried out – these are shown in Table 3 below. The total population of KWASA at midyear 2010 is taken as 966,500 – this is based on the 2009 population included in the JICA FS report with a growth rate of 2% per annum:

Table 3: Sources of Water in Use in Khulna City

Source Population 2010

Abstraction m3/day

Usage l/c/d

Private Deep Tube Wells 412,000 49,700 120.6 KWASA Pipe Network Via Deep Tube Wells * 218,055 30,100 138.0 **

KWASA Hand Tube Wells ** 336,445 20,817 60.0

TOTAL 966,500 99,987 103.5 * Breakdown of Piped Supply Production 30,100 m3/day

Loss 10,807 m3/day Non Domestic Use 1,412 m3/day Domestic Use 17,881 m3/day Per Capita Domestic Use ** 82 l/c/d

Source data for the population and consumption figures above are as follows:

Private Deep tube Wells – ADB Diagnostic Report, 2009; and JICA Feasibility Report, 2010; KWASA Pipe Network Via Deep Tube Wells – ADB Consumer Census Survey 2010; KWASA Hand Tube Wells – Derived from total population less sum of all other users;

** From the table it can be seen that the per capita usage from HTW sources is low, there is a discrepancy between the JICA estimated HTW output of 39,300 m3/day (based on sample testing of operational HTW’s multiplied by total number of installed HTW’s) and the ADB estimated output of 20,817 m3/day (based on per capita consumption from the ADB Consumption Survey – 2009, and population served); The volume abstracted however is not relevant for production and demand forecasting purposes2, this relies instead on the estimate of population and forecast of per capita consumption.

It should also be noted that the current per capita consumption from KWASA piped network is low at 82 l/c/d. Non domestic use of KWASA piped water supply is based on number of known connections multiplied by the average consumption of 81m3/mth derived in the Consumption Survey 2009.

From the results of the Groundwater Assessment study carried out by IWM under the TA 7385 the safe yield of the Aquifer in Khulna is estimated to be 159 Mld (current abstraction from Private deep tube wells, KWASA hand tube wells and 59 Mld). Current abstraction is considered to be 100.0 Mld from the sources outlined above which means that potential for abstraction of an additional 59 Mld exists over and above that currently existing.

From the figures above the long term need for additional sources of water to supply Khulna City is evident.

2 Whilst not important for demand forecasting purposes, the estimate of abstraction by HTW’s is important in assessing the sustainable yield from the Khulna aquifer – in this regard the estimate of ADB TA team could be considered conservative.


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KWASA Future Source Planning

Recognising the need for additional water sources KWASA have initiated a number of actions to increase water resources for Khulna City. These include approved and budgeted projects and projects at feasibility/pre-approval stage:

Projects Approved & Budgeted:

Development of Water Supply System in Khulna, split into 2 components Part 1: Additional groundwater abstraction from Khulna City Aquifer through the construction of 13 deep tube wells – 20 Mld; Part 2: Upgrade and expansion of existing surface water treatment plant3 – 6.75 Mld;

KCC Mini-Tube well project – 3.5 Mld;

Import of groundwater from an adjacent aquifer in Phultala, funded by KCC 4– 20 Mld;

Projects at Feasibility/Pre-approval Stage:

Construction of a new surface water treatment plant using JICA funds – 91.1 Mld (average useable volume); Construction of new distribution storage and network assets, including customer connections to be able to utilise

the increased volume of water through the new SWTP – using ADB funds; Additional Groundwater abstraction from Khulna City Aquifer through the use of GoB funds – 16 Mld; Construction of KWASA offices through the use of ADB/GoB funds

The medium to long term objective of KWASA is to significantly increase service coverage, service availability and service volume. This will be achieved by providing current users of KWASA HTW’s as well as private DTW users with piped water supply connection and by increasing the volume of water available to piped water supply users to around 120 l/c/d.

For the purposes of demand and service coverage forecasting it has been assumed that all currently approved and budgeted projects will go ahead as per their proposed schedules; in addition the new JICA funded SWTP and associated distribution storage and network assets will go ahead; the proposed additional groundwater abstraction of 16 Mld using GoB funds has not been included;

Rationalisation of KWASA HTW’s will be necessary during the business plan period. KWASA currently have 111 wells – 30 no. production wells of 150m diameter and 81 mini wells of smaller diameter. From a management and operation point of view the mini wells are very inefficient and KWASA will over the business plan period reduce the number of mini wells and increase the volume output of production wells.

It can be seen from the forecast that as users of KWASA HTW’s and also Private DTW users switch over to the piped network supply the volume of groundwater available for abstraction will also increase. There are currently no plans to exploit this volume of water as it becomes available however consideration needs to be given to this (or additional surface water utilisation) if service coverage is to exceed 73%.

3 GoB funds have been approved for this project; Design consultants have been selected and will commence work in Q1 2011 - KWASA wish to push ahead with the project as the transmission line is already in place under the Phultala project; 4 KCC are responsible for all costs associated with commissioning of the well field, however cost provision for the regeneration of 20 wells is included within the ADB investment proposal ;


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KWASA Production, Demand and Coverage Assumptions Population & Households

Table 4 below shows population, household and service coverage forecasts for the period 2011 to 2020 at which time ADB investment package will be fully utilised. The population forecast is taken from the JICA Feasibility Study which assumes 2% per annum growth from 2009 onwards, adjusted to coincide with fiscal year rather than calendar year. The average household occupancy rate of 5.5 persons per household has been taken from the findings of the ADB Consumption Survey 2009, validated by the Customer Census Survey 2010.

Slum Service & Low Income Community Service Provision

Approximately 47% of the population of Khulna are classed as poor; their main source of water is KWASA Hand Tube Wells. With the introduction of piped water supply this population will become a significant proportion of KWASA customers.

KWASA policy is to treat all inhabitants of Khulna equally and provide access to water made available through the investments proposed; However recognising disparities in social and economic status of citizens in Khulna City, KWASA also intend to incorporate measures for inclusive service coverage of the poor and vulnerable households in low income and slum communities, this will include the implementation of a Gender Action Plan and Poverty Reduction strategy as an integral component of KWASA operating plan.

The Poverty Reduction Strategy and Gender Action Plan will institutionalize and internalize the beneficiary driven approach for sustainable social development interventions particularly for the female members of low income households and households in slum areas.


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Table 4: Population, Household and Service Coverage data

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Population Growth Rate - From JICA FSR 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Population Forecast (Rounded to '000) 986,000 1,006,000 1,026,000 1,047,000 1,068,000 1,089,000 1,111,000 1,133,000 1,156,000 1,179,000

POPULATION BY SUPPLY SOURCEPopulation Supplied by Private Tube Well (Jica FSR) 412,000 412,000 412,000 412,000 412,000 412,000 309,000 309,000 288,400 288,400

Population Supplied by KWASA HTW (derived) 336,445 336,445 336,445 336,445 336,445 336,445 168,222 117,756 100,933 84,111

Other Population Supplied by HTW 148,003 148,003 148,003 148,003 148,003 148,003 74,001 51,801 44,401 37,001

Slum/LIC population Supplied by HTW 188,442 188,442 188,442 188,442 188,442 188,442 94,221 65,955 56,533 47,111

Population Supplied by KWASA Network * 237,555 257,555 277,555 298,555 319,555 340,555 633,778 706,244 766,667 806,489

TOTAL POPULATION 986,000 1,006,000 1,026,000 1,047,000 1,068,000 1,089,000 1,111,000 1,133,000 1,156,000 1,179,000

Household Occupancy rate 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5

HOUSEHOLDS BY SUPPLY SOURCEHouseholds Supplied by Private Tube Well 74,909 74,909 74,909 74,909 74,909 74,909 56,182 56,182 52,436 52,436

Households Supplied by KWASA HTW 61,172 61,172 61,172 61,172 61,172 61,172 30,586 21,410 18,352 15,293

Households Supplied by KWASA Network 43,192 46,828 50,465 54,283 58,101 61,919 115,232 128,408 139,394 146,634

TOTAL HOUSEHOLDS 179,273 182,909 186,545 190,364 194,182 198,000 202,000 206,000 210,182 214,364


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Production Source Development

Table 5 below shows the production forecast from the different sources anticipated by KWASA for the period 2011 to 2020. It should be noted that the total aquifer capacity included here is based on current estimated abstraction from Private deep tubewells; KWASA Deep Tube Wells; KWASA Hand tube Wells; plus an allocation of an additional 59 Mld for KWASA Deep tube Wells based on the results of hydrogeological modelling of the Khulna City aquifer.

The growth of unexploited aquifer volume over time is a function of the change-over of private well users and KWASA HTW users to the new KWASA piped supply. This presents an opportunity in the long term when the new surface water source is fully utilised – this is outside the timeframe of this business plan.

Service Coverage & Demand

Table 6 below shows the forecast of number of households, connections, population and service coverage supplied from available sources during the period 2011 to 2020.

Key assumptions are:

Growth in per capita consumption from the current estimate for pipe network users of 82 l/c/d to 120 l/c/d in 2014 as additional supply volume becomes available from GoB projects and Phultala well field.

Growth in commercial consumption from current level of 7.9% of supply to 10% as additional supply volume becomes available; the current level of commercial consumption is based on total number of known commercial users of KWASA (legal and illegal) identified during the ADB Customer Census (2010) multiplied by the average commercial usage identified during the ADB Customer Survey (2009);

Utilisation of 49% of the full volume from the new SWTP within a period of 2 years from commissioning and 100% utilisation within 10 years from commissioning;

Total NRW is estimated to reduce to 20% overall by 2018 – broken down as 15% technical loss and 5% commercial loss; This assumes almost total replacement of the current pipe network and effective control on connection to the new network;

The nature of housing use in Khulna means that not all households will have an individual connection – the ratio of households per connection based on the results of the ADB Customer Census (2010) is 2.82. This has been used in deriving the number of meters to be installed as part of the ADB loan project.

Users of Existing Private Tubewells and KWASA Hand Tube Wells convert to piped water supply as described in Table 6.

Without additional future groundwater abstraction KWASA service coverage is forecast to peak at around 73.5% in 2026;


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Table 5: Summary of Production Source Development

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SUMMARY OF PRODUCTION SOURCE DEVELOPMENTReduction in private well use - % 0% 0% 0% 0% 0% 0% 25% 25% 30% 30%Private Well Production - m3/day 49,700 49,700 49,700 49,700 49,700 49,700 37,275 37,275 34,790 34,790

No. of Private Tube Wells in Operation 23,732 23,732 23,732 23,732 23,732 23,732 17,799 17,799 16,612 16,612

Reduction in HTW use - % (from 2010 level) 0% 0% 0% 0% 0% 0% 50% 65% 70% 75%HTW Production - m3/day 20,187 20,187 20,187 20,187 20,187 20,187 10,093 7,065 6,056 5,047

Transfer from Private Use - m3/day 0 0 0 0 0 0 12,425 12,425 14,910 14,910

Transfer from HTW Use - m3/day 0 0 0 0 0 0 10,093 13,121 14,131 15,140

KWASA PRODUCTION FACILITIESReduction DTW use - % 0% 10% 20% 30% 35% 30% 20% 10% 0% 0%

Existing DTW's - m3/day 30,100 27,090 24,080 21,070 19,565 21,070 24,080 27,090 30,100 30,100

KCC Mini Tubewell Project (3.5 Mld) - m3/day 1,448 3,500 3,500 3,500 2,500 1,500 500 0

GOB Approved (20 Mld) - m3/day 10,769 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

GOB In Process of Approval - 16 Mld 0 0 0 0 0 0 0 0

Phultala Well Field (20 Mld) - m3/day 7,429 14,286 16,000 17,000 18,000 19,000 20,000 20,000

Additional Surface WTP (6.75 Mld) - m3/day 6,750 6,750 6,750 6,750 6,750 6,750 6,750

New SWTP - m3/day 91,097 91,097 91,097 91,097

KWASA Water Into Network - m3/day 30,100 37,859 52,957 65,606 65,815 68,320 162,427 165,437 168,447 167,947

KWASA HTW - m3/day 20,187 20,187 20,187 20,187 20,187 20,187 10,093 7,065 6,056 5,047

KHULNA TOTAL PRODUCTION - m3/day 99,987 107,746 122,844 135,492 135,702 138,207 209,795 209,777 209,293 207,784

AQUIFER CAPACITY - m3/day 158,987 158,987 158,987 158,987 158,987 158,987 158,987 158,987 158,987 158,987

AQUIFER ABSTRACTION FORECAST - m3/day 99,987 107,746 115,415 114,457 112,952 114,457 93,948 92,930 91,446 89,937

Private DTW's - m3/day 49,700 49,700 49,700 49,700 49,700 49,700 37,275 37,275 34,790 34,790

KWASA HTW's - m3/day 20,187 20,187 20,187 20,187 20,187 20,187 10,093 7,065 6,056 5,047

KWASA DTW's 30,100 27,090 24,080 21,070 19,565 21,070 24,080 27,090 30,100 30,100

KCC Mini Tubewell Project 0 0 1,448 3,500 3,500 3,500 2,500 1,500 500 0

GoB - Deveopment of Water Supply In Khulna City 0 10,769 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000

KWASA Groundwater Into Piped Supply - m3/day 30,100 37,859 45,528 44,570 43,065 44,570 46,580 48,590 50,600 50,100

AQUIFER VOLUME UNEXPLOITED - m3/day 59,000 51,241 43,572 44,530 46,035 44,530 65,038 66,056 67,541 69,050


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Table 6: Demand Forecast and Derived Service Coverage Ratios

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Per Capita Consumption - l/c/d 70 82 105 120 120 120 120 120 120 120

Domestic Demand Derived from Population - m3/day 16,629 21,120 29,143 35,827 38,347 40,867 76,053 84,749 92,000 96,779

Commercial Use % 7.9% 7.9% 8.4% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

Commercial Volume Derived from Domestic - m3/day 2,341 2,973 4,403 6,514 6,499 6,811 11,701 12,107 13,143 13,826

NRW % 36.0% 36.0% 36.0% 35.0% 31.0% 30.0% 25.0% 20.0% 20.0% 20.0%

NRW Volume derived from Domestic - m3/day 10,670 13,552 18,870 22,799 20,148 20,433 29,251 24,214 26,286 27,651

Total Water Into Supply Required - m3/day 29,640 37,644 52,416 65,139 64,994 68,111 117,005 121,070 131,429 138,255

KWASA Production Capacity - m3/day 30,100 37,859 52,957 65,606 65,815 68,320 162,427 165,437 168,447 167,947

Production Surplus/-Deficit - m3/day 460 215 541 466 821 209 45,422 44,367 37,018 29,692

Total Water For Revenue Generation 29,640 37,644 52,416 65,139 64,994 68,111 117,005 121,070 131,429 138,255

Domestic Volume - m3/day 16,629 21,120 29,143 35,827 38,347 40,867 76,053 84,749 92,000 96,779

Commercial Volume - m3/day 2,341 2,973 4,403 6,514 6,499 6,811 11,701 12,107 13,143 13,826

NRW Volume - m3/day 10,670 13,552 18,870 22,799 20,148 20,433 29,251 24,214 26,286 27,651

Utilisation of New SWTP Volume (%) 50% 51% 59% 67%

Volume output of New SWTP - m3/day 45,675 46,730 54,079 61,405

Households Supplied 43,192 46,828 50,465 54,283 58,101 61,919 115,232 128,408 139,394 146,634

Households : Connections Ratio 2.82 2.82 2.82 2.82 2.82 2.82 2.82 2.82 2.82 2.82

Domestic Connections Supplied 15,316 16,606 17,895 19,249 20,603 21,957 40,863 45,535 49,430 51,998

Non Domestic Connections Supplied 867 1,101 1,631 2,413 2,407 2,523 4,334 4,484 4,868 5,121

Total Connections Supplied 16,183 17,707 19,526 21,662 23,010 24,480 45,196 50,019 54,298 57,119

Population Supplied by KWASA Network 237,555 257,555 277,555 298,555 319,555 340,555 633,778 706,244 766,667 806,489

Service Coverage KWASA Network 24.1% 25.6% 27.1% 28.5% 29.9% 31.3% 57.0% 62.3% 66.3% 68.4%

Service Coverage KWASA HTW's 34.1% 33.4% 32.8% 32.1% 31.5% 30.9% 15.1% 10.4% 8.7% 7.1%

Service Coverage Private DTW's 41.8% 41.0% 40.2% 39.4% 38.6% 37.8% 27.8% 27.3% 24.9% 24.5%


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D. INVESTMENT PLAN In order to achieve the stated objectives of attaining 24 hour supply and increasing the coverage of piped water supply in Khulna City a number of key investment and grant projects are being planned.

D1. Projects Included in the Investment Plan

D1.1 Projects Approved & Budgeted

Development of Water Supply System in Khulna – total value 4,320 lakh Taka, Grant Funds from GoB

The project is split into 2 parts;

Part 1: Additional groundwater abstraction from Khulna City Aquifer through the construction of 13 deep tube wells – 20 Mld (Tk 3,142);

Part 2: Upgrade and expansion of existing surface water treatment plant – 6.75 Mld (Tk 1,175);

Project approval has already been given and KWASA are commencing the implementation, the project will be implemented over a two year period with 10 Mld becoming available in 2012 and the balance in 2013. Tenders have been issued for borehole construction and consultants appointed to manage the project from January 2011. Anticipated timeframes appear to be realistic.

KCC Mini-Tube well project – GoB grant project being implemented by KCC and to be handed over to KWASA on completion; the scheme is to provide an additional 3.5 Mld in specific water stressed areas of Khulna.

Import of groundwater from an adjacent aquifer in Phultala, funded by KCC. GoB grant project being implemented by KCC and to be handed over to KWASA on completion; the original scheme was for the production of 28 Mld for use in KWASA service area; The scheme has been constructed however there is now a court injunction in place preventing the use of the well field; ADB have been supporting technical investigations into the availability of water from the aquifer and the impact of the well field on the surrounding area of Phultala. It is expected that eventually the well field will be handed over to KWASA to abstract 20 Mld; The timing of this has been assumed as FY 2015 - the timing of resolution of the political difficulties is hard to predict we have therefore assumed a medium time frame for this, once the political issues are sorted out the technical commissioning issues will still need to be resolved – this gives weight to the proposed delivery time frame assumed;

D1.2 Investment Projects at Feasibility/Pre-approval Stage:

Construction of a new surface water treatment plant using JICA loan funding. The project is expected to be on line mid-way through FY 2017 providing an additional usable volume 91.1 Mld; Thorough details of this project are included in the JICA Feasibility Study – the JICA component of the project covers packages1 and 2 – Intake, raw water transmission, Water Treatment Plant, clear water Transmission pump station.

Construction of new distribution storage and network assets, including customer connections to be able to utilise the increased volume of water through the new SWTP – using ADB loan funding; Details of the project were initially outlined in the JICA Feasibility Study (Packages 3 & 4) and have since been developed by TA7385 team. The proposed capital investment plan is included separately within the ADB project report.

D1.3 Additional Projects Identified Under ADB TA 7385 A number of projects outside the original scope of the JICA/ADB were identified during the ADB TA 7385. These additional projects cover:

Production tubewell rehabilitation;


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Deep aquifer test drilling; Construction of KWASA head and zonal offices; Provision of customer meter testing/laboratory equipment; Provision of operational vehicles; Groundwater monitoring system; Business systems hardware and software; Water point infrastructure for informal settlement areas;

The scope of these projects is documented within the ADB project report.

D1.4 Consultancy & Management Systems

Engineering Design, Tendering & Construction Implementation; Implementation of Management Systems – e.g. Customer Management; Accounting; Billing; Maintenance;

etc. Groundwater Monitoring Systems – to understand and ensure sustainability of the Khulna and Phultala

aquifers;

D2 Projects Not Included in Investment Plan Additional Groundwater abstraction from Khulna City Aquifer through the use of GoB funds – 16 Mld, Value Taka

2,287 Lakh; KWASA have submitted a DPP for this DTW construction project which is still undergoing approval. It has been assumed that this project will not push through.

Table 7 summarizes the project costs for the 5 major projects to be undertaken during the business plan period as included in the financial model.


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Table 7: Summary of Five Key Projects to be undertaken during the Business Plan Period by Project Totals

NB - Project 3 – KCC Development of Water Supply System in Phutala (20 Mld) and Project 5 – KCC Mini Tubewell Project will be implemented by KCC and handed over after completion to KWASA. The other projects will be implemented by KWASA.

SUMMARY INVESTMENT PLAN (In Current Tk 000s) FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Total

PROJECT 1a- GoB Project: Development of Water Supply System in Khulna City - : 20 Mld 97,428 177,339 39,253 - - - - - 314,020 PROJECT 1b - GoB Project: Development of Water Supply System in Khulna City - 6.75 Mld SWTP - 55,776 61,681 - - - - - 117,457 PROJECT 2 - GoB Rehab Of DTW & Water Supply Expansion - 16mld - - - - - - - - - PROJECT 3 - KCC Development of Water Supply System in Phultala - (28 Mld) - - - - 339,350 - - - 339,350 PROJECT 4a - JICA Packages 1 & 2 - Intake, Raw Water Transmission & WTP - - 373,443 3,179,944 6,464,031 4,517,623 1,263,622 30,029 15,828,691 PROJECT 4b - ADB Packages 3 & 4 - Treated Water Transmission, Storage and Distribution - 1,506,363 3,829,562 1,270,837 1,352,143 688,805 589,736 195,296 9,432,741 PROJECT 5 - KCC Mini Tubewell Project -3.85 Mld 22,455 - - - - - 22,455

Total 97,428 1,761,933 4,303,939 4,450,781 8,155,524 5,206,427 1,853,358 225,325 26,054,715


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E. Financial Plan Introduction

The financial plan is prepared over a longer period (FY 2012-2030) than the period of the business plan to ensure that KWASA will remain viable during the period of project implementation up to loan repayment of the ADB/JICA loan. Financial viability is demonstrated through the financial projections which show sufficiency of cash to cover operational expenses and debt service, thereby eliminating the need for government subsidy other than explicit exceptions in initial years.

Major Assumptions

The assessment of the current financial condition of KWASA in FY 2009 and FY 2010 is based on the Preliminary Financial Statements in Annex 2. These financial statements were based on studies prepared under the ADB SSTA as well as the JICA feasibility studies. It is understood that the figures presented in the Preliminary Financial Statements are estimated figures and the financial audit will provide a more sound basis for the assessing the current and future financial viability of KWASA. KWASA is taking steps to get the audit started and completed by end of 2010. When the audited financial reports are available, it may be necessary to revise the assessment of KWASA’s financial performance as well as its business plan.

Based on the preliminary financial statements, it appears that KWASA’s performance has deteriorated from FY2009 to FY2010. The net loss has increased from Tk 8.5 million to Tk 50 million due to the significant reduction in revenue and the huge increase in expenses. There were different bases for estimation of revenues for the two years. It appears that revenue estimates for 2009 were based on 15,236 registered connections while the figure for 2010 revenues is based on a significantly lower number of connections of 11,853 based on the survey results. Salaries and allowances increased due to implementation of the new pay scale as well as hiring of additional personnel. Electricity bill also increased due to the general increase in cost of power as well as the increase from 60 pumps in 2009 to 78 pumps in 2010. KWASA also undertook numerous repair and maintenance of pipelines, pump motors, vehicles, office equipment and buildings in 2010 resulting in higher repair costs.

In order to assess future performance, during the business plan period, the following basic assumptions were used:

1. Investment and Production. The investment plan shown in Table 7 above will increase production from 30,100 m3/day to 162,427 m3/day in 2017. Investments in the network will reduce Non Revenue Water from the current estimated level of 36% to 25% by 2017 and down further to 20% by 2018.

2. Revenues. Although the survey reports 32,292 domestic users, only 11,853 households are currently registered as connections. The rest are unbilled household users resulting from the practice of several households sharing a connection or else are illegal users. In the coming years, the KWASA will embark on five major programs to increase connections and bill all users as shown in Table 8 below.


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Table 8: Key Revenue Improvement Action Plan

3. O&M. Salaries and allowances will increase substantially as number of staff will increase from 284 to 502 by 2017. Average salaries and % allowances will also increase, the latter the result of the planned conversion of most of casual staff to permanent staff by 2017. Chemicals and Depreciation expenses will start to be recognized and recorded as part of O&M expenses.

See detailed assumptions in Annex 3.

Financial Model Base Case

The base case considers the following:

Tariff increases on the monthly flat rate at 5% per year from 2012 to 2016

At the start of the metering program in 2017, an initial tariff in real prices of Tk 13.10/m3 for domestic connections (Tk 19.35/m3 in 2017 prices) and Tk 26.20/m3 for non domestic connections (Tk 38.71/m3 in 2017 prices)

Annual tariff increases at 5% after 2017

30% of the project cost will be funded by government equity and 70% through government loan. The assumed concessional terms of the loan are 2% interest rate per annum, 30 years repayment including an 8 year grace period on principal and interest payment.

Numbers Fiscal Yeara Increase in number of connections from 2011 to 2017

as more volume of water is made available from ongoing and future projects. Domestic Connections (end of fiscal year) 11853 40863 FY 2017Non Domestic Connections (end of fiscal year) 385 4334 FY 2017

b Registration of all illegal connections 2206 illegal domestic connections and 138 illegal non domestic connections

zero FY 2012

c Conversion billing per household Domestic Households (end of fiscal year) 11853 32292 FY 2012

d Metering of all connections by 2017 (end of fiscal year) zero 45197 FY 2017

e Charging owners of private deep tubewells an annual flat fee

no charges 17,799 private DTWs billed

FY 2017

f Annual flat fee for deep tubewells Tk 3000 FY 2017

Present Target


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Table 9 shows the results of the base case analysis which reveal the following:

While some years will result in annual cash deficits, KWASA’s cash balances will be sufficient to cover cash operating and maintenance costs and debt service.

Debt service coverage ratios are generally lower than the standard 130%, but this target will eventually be met in future years

Operating ratio before depreciation shows significant improvement from the current 5.17 to .45 in 2017 when the metered tariffs are implemented. As a result, net income ratio also improves in the coming years with the implementation of tariff increases and the growth in connections.

See Annex 4 showing the resulting financial projections for the base case.

Table 9: Results of Base Case

Sensitivity Scenarios

Two other scenarios were developed to test the financial viability of the project under the standard terms for relending to WASAs. See Table 10.

Year

2010 (28,513) 27,108 5.17 (4.17) 2011 32,571 59,679 4.17 (5.22) 2012 57,926 117,605 1.48 (1.26) 2013 57,607 175,212 1.52 (1.26) 2014 (48,320) 126,893 1.97 (1.47) 2015 (38,584) 88,308 1.57 (1.06) 2016 (37,629) 50,679 1.49 (1.11) 2017 337,199 387,878 0.45 0.47 19.35

2018 528,983 916,862 0% 0.38 0.58 20.32 5%2019 619,334 1,536,195 0% 0.36 0.61 21.34 5%

2020 (398,936) 1,137,260 65% 0.35 0.28 22.41 5%

2021 (383,485) 753,775 68% 0.38 (0.14) 23.53 5%

2022 (303,092) 450,683 74% 0.38 (0.07) 24.70 5%

2023 (230,060) 220,623 81% 0.37 0.00 25.94 5%2024 (151,457) 69,166 88% 0.36 0.06 27.23 5%2025 (58,136) 11,030 97% 0.36 0.05 28.60 5%

SCENARIO 1 (Option 1) - Selected KPIs

Annual Cash Surplus

(Defiiciency)

Ending Cash

(Tk000)

Debt Service Ratio

Operating Ratio before

depr

Net Income Ratio

Domestic Tariff

Tariff Adjustment


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Table 10: Financial Model Scenario Variables

The scenario analysis results reveal the following:

Under Scenario 2, KWASA’s operations will result in substantial losses and cash deficits under a scenario where lower tariffs (domestic tariff of Tk 6/m3 and non domestic tariff of Tk 12/m3, both in real prices) are implemented.

Under Scenario 3, KWASA’s revenues can recover O&M costs and debt service under a scenario where higher tariffs (domestic tariff of Tk 26/m3 and non domestic tariff of Tk 52/m3, both in real prices) are implemented.

The results of the sensitivity analysis are given in Annex 5.

Scenario 1 (Base) Scenario 2 Scenario 3

TariffsStarting Tariff (2009 prices)

Domestic connections Tk 13.10/m3 Tk 6.00/m3 Tk 26.00/m3Non domestic connections Tk26.20/m3 Tk12.00/m3 Tk52.00/m3

Annual Tariff Increases starting 2012 5% 5% 5%

Financing% Grant, % Loan 30% Grant; 70% Loan 30% Grant; 70% Loan 30% Grant; 70% Loan

Loan termsInterest Rate 2% 4% 4%

Grace/Repayment period8 years grace period, 22 years repayment

period

7 years grace period, 15 years repayment

period

7 years grace period, 15 years repayment

period


Page 21 of 60

F. Human Resources Development Plan F.1 KWASA Human Resource Management

F.1.1 Introduction

The success of an organisation is determined largely by its workforce through their experience, capability, dedication and willingness to change to meet the needs of the business environment. To date KWASA have been under-resourced in particular in relation to junior and middle management and engineering staff. Additional staff to complete the approved structure is now largely in place however a key area of focus for KWASA over the next few years is the development of staff capabilities across all areas of operation. In addition to having in place the right, properly trained staff the structure of any organisation plays an essential role in determining the efficiency of the organization in delivering services effectively. Significant changes are planned for KWASA in the next 10 years starting immediately with the rationalisation of customers to correctly reflect the customer base, investment (with GOB funds) in groundwater development schemes, opening of zonal offices within the city of Khulna, move to customer metering and volumetric charging for water, development of a major surface water treatment plant and the introduction of treated water storage and distribution on a zonal basis across the city significantly increasing the service coverage and customer base. All these changes require appropriate organization structures to be in place if the benefits of the changes are to be realised by KWASA customers.

F.1.2 KWASA Current Organisation Following KWASA’s establishment under the WASA Act 1996 in February 2008, a new organisational structure was developed and approved by Local Government Division (LGD) in November 2008. The approved structure shown in Figure 1 below comprises of 2 main departments namely, Engineering and Finance & Administration and provides for a permanent staff complement of 157. Since its formation KWASA has been operating at sub-optimal staffing levels, in particular lacking qualified staff in accounting, planning and engineering disciplines. This issue has now been largely addressed through recruitment and the approved organisation structure of KWASA is almost complete. In addition there are 127 Master Roll staff (employed on a temporary basis although in practice most of them have been working with KWASA for many years), the majority of who work in Operations.


Page 22 of 60

Figure 1: Khulna WASA Organisation Structure - 2011

Financial (A/C & Budget)

Staff - 8

Commercial (Consumer &

Revenue)Staff - 12

HR Development

Staff - 8

General Section

Staff - 9

Production &

DistributionStaff - 72

Consumer Service O&M

Staff - 12

Planning &

Development Staff - 6

Project Mgmt &

ImplementationStaff - 4

Accts Officer - 1Budget Officer – 1Accountant – 1Lower Div Asst - 1Asst Acct. - 1Cashier - 1Asst. Cashier – 1MLSS – 1

Rev. Officer - 3Rev. Supervisor – 4Rev. Inspector – 2Lower Div Asst - 1Asst Acct. – 1MLSS – 1

Admin. Officer - 1Upper Div. Asst. – 1Guard – 2Cleaner/Gardener – 4

Medical Officer - 1Upper Div. Asst. – 1Storekeeper – 3Compounder – 1Dresser – 2Nurse – 1

Asst. Enggr - 1Sub Asst. Enggr – 2Pump Operator – 30Asst Pump Operator – 30Electrician – 2Head Tubewell Fitter – 1Filter Operator – 3Plumber – 2MLSS - 1

Asst. Enggr - 1Sub Asst. Enggr – 2Lower Div Asst. – 1Foreman - 1Electrician – 2Head Tubewell Fitter -1Surveyor – 1Plumber – 2MLSS - 1

Asst. Enggr - 1Sub Asst. Enggr – 2Head Asst – 1Draftsman - 1MLSS - 1

Asst. Enggr - 1Sub Asst. Enggr – 2Surveyor – 1

Commercial ManagerStaff - 23

SecretaryStaff - 20

Chief EngineerStaff - 89

Superintending EngineerStaff - 15

Executive EngineerStaff - 86

Executive EngineerStaff - 12

Typist – 1MLSS – 1




Deputy Managing Director(Finance & Administration)

Permanent Staff – 46(Master Roll Staff – 16)

Typist – 1; MLSS – 1Typist – 1; MLSS – 1

Deputy Managing Director(Engineering)

Permanent Staff – 107(Master Roll Staff 111)

Managing DirectorPermanent Staff – 157(Master Roll Staff 121)

Computer Operator – 1MLSS – 2

KHULNA WASA ORGANISATION STRUCTURE - 2011

MLSS – 1MLSS – 1

Summary of Master Roll Staff:

Finance & Administration Division: 16; Engineering Division: 111; Total: 127


Page 23 of 60

The existing staff numbers by Government Classification are shown in Table 11 below.

Table 11: Summary of KWASA Existing Staff Numbers by GoB Classification

TOTAL KWASA Current Structure

Approved Staff

Master Role Staff

Total Staff

Staff % by

Class CLASS I: Grade 1 to 9 14 0 14 4.9%

CLASS II: Grade 10 13 0 13 4.6% CLASS III: Grade 11 to 16 84 118 202 71.1%

CLASS IV: Grade 17 to 20 46 9 55 19.4%

TOTAL 157 127 284 As can be seen the structure is very much skewed to Classes III and IV – workers and labourers with less than 10% of the staff involved in management, supervision or engineering. In order to be able to manage the growth and development of KWASA in the future there is a need to change the organisation accordingly to make it responsive to the needs of the customer and capable of delivering efficient services at affordable prices. The basic principles in the organisation development of KWASA are:

• Separation of the finance and revenue functions for accountability purposes; • Establish a clearer customer focus through the organisation structure – introduction of customer service

accountability through a commercial Directorate and move towards a zonal operating structure in order to be more responsive to customers.

• Internal audit and corporate planning functions should be introduced to the organization; • The organisation should support the sustainable operation and maintenance of all KWASA facilities;

A two-phase evolution in KWASA organisation from the current structure has been developed. It is assumed that the current structure will remain in place until the zonal offices in Khulna town are constructed and operational in FY 2014. This evolution takes into the key factors related to organisation change in KWASA, namely:

Customer focus; Affordability; Staff location/deployment; Support Infrastructure; Growth in KWASA asset base; Introduction of new facilities -SWTP; additional boreholes; new network storage; new network;

It is essential that KWASA is correctly organized in order to manage the new facilities being constructed under the JICA/ADB loan facilities; both of the phases are discussed in more detail below.


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F.1.3 Phase 1 Organisation Phase 1 organisation will come into effect at the start of FY 2014. At this time a Commercial Directorate overseen by a DMD will be established. This will be the first step in establishing a more customer focused delivery mechanism. The Commercial Directorate will have responsibility for customer service, revenue and accounting functions – separating these responsibilities from their current position under the DMD Finance and Administration; for operational purposes KWASA will locate production distribution teams at the newly constructed zonal offices however they will continue to be managed from the centre of the organization. To support the MD function a number of functional teams will be introduced to cover corporate planning, internal audit, MIS/IT and legal. The total staff requirement for this organization structure is 371 an increase of 87 staff. The staff numbers by Government Classification to Phase 1 are shown in Table 12 below.

Table 12: Summary of KWASA Staff Numbers by GoB Classification to Phase 1

TOTAL KWASA

Current Structure

Organization Phase 1 - FY2013 - 2017

Approved Staff

Master Role Staff

Total Staff

Staff % by Class

Total Staff

Staff % by

Class CLASS I: Grade 1 to 9 14 0 14 4.9% 36 9.7%

CLASS II: Grade 10 13 0 13 4.6% 27 7.3% CLASS III: Grade 11 to 16 84 118 202 71.1% 172 46.4%

CLASS IV: Grade 17 to 20 46 9 55 19.4% 136 36.7%

TOTAL 157 127 284 371

Of particular note is the increase of management and technical specialist staff in Classes I and II by 22 and 14 respectively. The number of Class I & II staff as a percentage of total staff increase from 9.5% to 17% which is a more acceptable ratio for efficient operation of the business; additionally the number of Class three staff is reduced in absolute terms and the number of Class 4 staff increased. Figure 2 below shows the organisational linkages and functionality along with staff numbers at Division level.


Page 25 of 60

.Figure 2: Phase 1 Organisation Structure – FY 2014

MANAGING DIRECTORS OFFICE

ENGINEERING DIVISION

CUSTOMER SERVICE DIVISION

FINANCE & ADMINISTRATION DIVISION

Production &DistributionDepartment

Planning & Development Department

Customer Service

Department

AdministrationDepartment

Finance & Accounting Department

Customer Accounts

Department

• Production Section• Distribution Section

• Planning & Design Section• Project Management &

Implementation Section

• Credit & Collection Section• Customer Service Section

• Meter Reading Section• Billing Section

• Accounting Section• Budget & Treasury Section

• Human Resources Section• General Services Section

• Internal Control/Audit• Corporate Planning & MIS• Legal• Public Affairs and Information

Management Services Section

KWASA PROPOSED ORGANISATION STRUCTURE – 2014

205

371

6488

10


Page 26 of 60

F.1.4 Phase 2 Organisation

Phase 2 organisation structure will be set in place from commissioning of the newly planned SWTP and distribution storage zones in 2017. This maintains the previously established three directorate structure however the Commercial Division is re-focused on whole cycle business delivery. The proposed structure is summarised in Figure 3. The total staff requirement for this organization structure is 502. The key features and changes in each Division are discussed in more detail below. Commercial Division: There will be three customer service zones each under the responsibility of a zone manager who will have complete responsibility for all customer service activities carried out in his zone – this includes management of distribution storage reservoirs and overhead tanks; management of the distribution network; revenue management (billing and collection – current and arrears); customer complaint management; connection and meter management; The operating zones have been allocated according to number of connections to ensure some equitability in resource allocation, level of activity etc. Technical Services Division: The Technical Services Division comprises all production activities – surface water treatment plant as well as borehole management; A Maintenance department is also created under this organisation structure to reflect the need for effective maintenance of newly installed assets. The maintenance department will also be responsible through service level agreements for the maintenance of mechanical and electrical equipment used in the Customer Zones (i.e. pumps and motors at the distribution storage reservoirs and overhead tanks). Finance & Administration Division: The fundamental changes to the Finance & Administration Division will have taken place at the Phase re-organisation, namely separation of Accounting and Revenue Functions and introduction of Internal Audit under the office of the Managing Director. The staff numbers by Government Classification for all organisational phases are shown in Table 13 below. Table 13: Summary of KWASA Staff Numbers By GoB Classification All Phases

In the Phase 2 organisation the percentage of Class I and Class II staff reduces very slightly on the Phase 1 structure to 15%; the absolute number of Class II staff remains almost the same and the most significant increase in staff comes in the Class 4. Figure 3 below shows the organisational linkages and functionality along with staff numbers at Division level.

Approved Staff

Master Role Staff

Total Staff

Staff % by Class Total Staff Staff % by

Class Total Staff Staff % by Class

CLASS I: Grade 1 to 9 14 0 14 4.9% 36 9.7% 41 8.2%

CLASS II: Grade 10 13 0 13 4.6% 27 7.3% 34 6.8%

CLASS III: Grade 11 to 16 84 118 202 71.1% 172 46.4% 208 41.4%

CLASS IV: Grade 17 to 20 46 9 55 19.4% 136 36.7% 219 43.6%

TOTAL 157 127 284 371 502

TOTAL KWASA

Current Structure Organisation Phase 1 - 2014 - 2017

Organisation Stage 2 - 2017 Onwards


\

Page 27 of 60

Figure 3: Phase 2 Organisation Structure FY 2017

MANAGING DIRECTORS OFFICE

TECHNICAL SERVICES DIVISION

COMMERCIAL SERVICES DIVISION

FINANCE & ADMINISTRATION DIVISION

Production Department

Planning & Development Department

Maintenance Services

Department

Customer Service

Zone 1 & 4

AdministrationDepartment

Finance & Accounting Department

CustomerService

Zone 3 & 5

Customer ServiceZone 2

• SWTP Operation Section• Wells Section

• Planning & Design Section• Project Monitoring &

Implementation Section

• Maintenance Section

• Revenue Section• Customer Service Section



• Accounting Section• Budget & Treasury Section

• Human Resources Section• General Services Section

• Internal Control/Audit• Corporate Planning & MIS• Legal• Public Affairs and Information

Management Services Section

KWASA PROPOSED ORGANISATION STRUCTURE – 2017

207

502

71210

10


Page 28 of 60

F.1.5 Staff Efficiency Ratios

In terms of the traditional measure of organization efficiency – no. of staff per ‘000 connections - KWASA efficiency is currently poor. Table 14 below shows the improvement in this ratio during the period of the Corporate Plan. It should also be noted that when the new SWTP volume is fully utilised in 2025 the staff ratio is forecast to be 6.1 staff/’000 connections.

Table 14: Summary of Connections and Staff Efficiency Ratio through the Corporate Plan Period

2011 2012 2013 2014 2015 2016 2017 2018

Total Connections 16,655 18,472 20,686 22,815 24,517 26,215 52,708 59,112

Staff/’000 Connections 17.1 15.4 17.9 16.3 15.1 19.1 9.5 8.5

Total Households 35,881 39,518 43,154 46,972 50,790 54,608 111,577 125,849

Staff/’000 Households 7.9 7.2 8.6 7.9 7.3 9.2 4.5 4.0

F.1.6 Organisation Development During Business Plan Period

Table 15 below shows the breakdown of staff by Division and by Department under each organisation structure. It clearly shows the migration of the structure from the current situation to the proposed structure on commissioning of the new facilities under the loan project.

Tables showing Department and Section staffing numbers are shown in Annex 6.


Page 29 of 60

Table 15: Structure and Staff Numbers

EXISTING STRUCTURE 2011 PROPOSED STRUCTURE 2014 PROPOSED STRUCTURE 2017

ORGANISATIONAL UNIT Staff Numbers ORGANISATIONAL UNIT Staff

Numbers ORGANISATIONAL UNIT Staff Numbers

THE MANAGING DIRECTOR THE MANAGING DIRECTOR THE MANAGING DIRECTOR Managing Director and Staff 4 Managing Director and Staff 4 Managing Director and Staff 4

Management Services Section 10 Management Services Section 10 4 14 14 ENGINEERING DIVISION ENGINEERING DIVISION TECHNICAL SERVICES DIVISION

Office of the DMD 4 Office of the DMD 3 Office of the DMD 3 Chief Engineers Office 3

Production & Distribution Department 186 Production Department 146 Production, Distribution, Consumer Service Department 196

Superintending Engineers Office 3 Planning and Development Department 16 Planning and Development Department 16 Planning, Development & Project Management

Department 12

Maintenance Services Department 42 218 205 207 FINANCE AND ADMINISTRATION DIVISION FINANCE AND ADMINISTRATION DIVISION FINANCE AND ADMINISTRATION DIVISION

Office of the DMD 3 Office of the DMD 3 Office of the DMD 3 Office of the Commercial Manager 3

Finance and Accounting Department 17 Finance and Accounting Department 18 Finance and Commercial (Revenue) Department 34

Office of the Secretary 4 Administration Department 44 Administration Department 50

Administration, HR & General Department 18 62 64 71 CUSTOMER SERVICE DIVISION COMMERCIAL SERVICES DIVISION Office of the DMD 3 Office of the DMD 3 Customer Service Department 29 Customer Service Zone 1 & 4 Department 69 Customer Revenue Department 56 Customer Service Zone 2 Department 69 Customer Service Zone 3 & 5 Department 69 88 210

TOTAL 284 371 502


Page 30 of 60

F.2 KWASA Capacity Building

KWASA will be a professionally managed utility tasked with improving services through operations and infrastructure investment.

In order for KWASA to achieve their objectives of increased service coverage and continuity of supply they will require operational and management support in advance of the anticipated investment such that they can function effectively and efficiently once the investment has been realized.

To this end two Capacity Building support components will be initiated as a result of the loan agreement, namely:

1. Bridging TA Capacity Building – this will be a TA grant from ADB to KWASA to cover the period between the end of the current TA7385 in January 2011 and the mobilization of Capacity Building consultants under the second CB component described below;

2. Corporate Management Support Capacity Building – will be funded through the ADB loan to support the KWASA to fulfill its service mandate and its responsibilities in order to manage and operate the capital works financed under the ADB Loan. This Capacity Building will cover support and advice in the following areas:

(i) KWASA operations, including institutional reform and organizational strengthening; HR management and training needs analysis;

(ii) Implementation of the KWASA business plan;

(iii) Operations and management systems;

(iv) Implementation of a pilot Distribution Network Improvement (DNI) initiative, including NRW management and reduction strategies;

(v) network implementation project;

(vi) Expand and institutionalize sustainable service provision to low income consumers; and

(vii) Establishing sound practices in program monitoring and evaluation, and results measurement.

Outline TOR for each of the Capacity Building packages are included in the TA 7385 ADB Project Final Report April 2011.


Page 31 of 60

Annex 1 - Summary of Proposed Capital Investment for KWASA under GOB/JICA/ADB Loan

% of total cost Including Taxes % of total costA. Base Cost 1. Civil Works and Equipment 238,889,613 65.71% 293,688,399 80.79% 2. Consultants 18,210,602 5.01% 21,778,576 5.99% 3. Resettlement Cost 5,926,737 1.63% 5,926,737 1.63% 4. Administration Cost 1,614,410 0.44% 1,614,410 0.44%Sub-total A 264,641,363 72.80% 323,008,123 88.85%B. Contingencies 1. Physical 13,603,433 3.74% 13,603,433 3.74% 2. Price 24,266,056 6.68% 24,266,056 6.68%Sub-total B 37,869,489 10.42% 37,869,489 10.42%C. Interest During Implementation 2,655,237 0.73% 2,655,237 0.73%Sub-total C 2,655,237 0.73% 2,655,237 0.73% D Tax and duties 58,366,760 16.06%Grand Total 363,532,849 100.00% 363,532,849 100.00%


Page 32 of 60

Annex 2 - Preliminary Financial Statements for FY 2009 and FY 2010 A. General Assumptions KWASA uses a fiscal year (FY) ending June 30 in its financial reporting. KWASA was created in March 2008 and is yet to prepare FY 2009 and FY2010 Financial Statements and have these reports audited. In view of the urgency to complete the business plan in time for the ADB/JICA Mission in November 2010, there was a need to estimate KWASAs results of operations for FYs 2009 and 2010 and its financial condition as of FY 2010 as a starting point for the financial projections, which is a key feature of the business plan. The ADB TA consultants estimated income and balance sheet figures for FY 2009 based on studies prepared in the ADB SSTA5 as well and the JICA feasibility studies6. The ADB TA consultants also prepared preliminary financial reports for FY 2010 based on available data. Notes showing the basis of the figures are discussed in this Appendix. It is understood that the figures presented in the Preliminary Financial Statements are indicative figures and the financial audit will provide a more sound basis for the assessing the current financial viability of KWASA, which is also the basis for its future viability. KWASA is taking steps to get the audit started and completed by end of 2010. When the audited financial reports are available, it may be necessary to revise the assessment of KWASA’s financial performance as well as its business plan. For FY 2010, it is estimated that around Tk 39 million was received by KWASA as government subsidy. This is shown under the account name capital fund. These preliminary financial reports were discussed with KWASA accounting unit which accepted the valuation pending the results of the audit. See Tables Ap2.1 and Ap2.2.

5 Supporting the Establishment of Khulna Water Supply and Sewerage Authority (ADB TA 7223-BAN), Final Report, November 2009. 6 Feasibility Study for Khulna Water Supply Improvement Project in Bangladesh, Japan International Cooperation Agency, July 2010.


Page 33 of 60

Table Ap2.1. Preliminary Income Statement FY 2009 and 2010

Notes Inc/Dec

IncomeOperating Revenues 16,444 100.0% 11,764 100.0% -28%

Water Sales 1 15,898 96.7% 11,121 94.5% -30%Other Water Sales 2 96 0.6% 167 1.4% 74%New Connection Fees 450 2.7% 476 4.0% 6%

Non-Operating Revenues 2 64 0.4% 109 0.9% 70%Total Income 16,508 100.4% 11,873 100.9% -28%

ExpensesPersonnel Expenses 3 17,758 108.0% 36,696 311.9% 107%

Salaries and Wages 15,591 94.8% 29,011 246.6% 86%Allowances and Benefits 2,167 13.2% 7,684 65.3% 255%

Fuel and Electricity 4,659 28.3% 11,230 95.5% 141%Fuel 547 3.3% 1,401 11.9% 156%Electricity Bill 4,112 25.0% 9,830 83.6% 139%

Chemicals 0.0% 0.0%

Repair & Maintenance 546 3.3% 5,497 46.7% 907%0.0%

Plant & Machinery 163 1.0% 753 6.4% 362%Vehicles 288 1.8% 0.0% -100%Office 95 0.6% 4,744 40.3% 4893%

Administrative and General Expenses 2,081 12.7% 8,005 68.0% 285%Advertisement Expenses 182 1.1% 629 5.3% 245%Representation and Entertainment 19 0.1% 116 1.0% 513%Board Expenses 333 2.0% 407 3.5% 22%Office Supplies and Other Expenses 1,298 7.9% 4,272 36.3% 229%Communications 1 0.0% 320 2.7% 31895%Trade Union Fee 4 0.0% 0.0% -100%Travelling Expense 190 1.2% 658 5.6% 246%Miscellaneous Expenses 54 0.3% 1,603 13.6% 2869%

Total Expenses 25,044 152.3% 61,428 522.2% 145%Net Profit/Loss (8,536) -51.9% (49,555) -421.2% 481%

June 30, 2009 June 30, 2010

Khulna Water Supply and Sewerage Authority (KWASA)Income Statement

For the Period Ending 30 June 2009 and 2010In Thousand Taka


Page 34 of 60

Table Ap2.2. Preliminary Balance Sheet FY 2009 and 2010

IAS RefAccount Code

# ASSETS

IAS 1.51 Non-Current Assets

IAS 1.68(a)# Property, plant & equipment 4 483,056 11,738 496,294 1,500

# Capital work in progress 4 1,500 1,500 -

IAS 1.51# Current Assets

IAS 1.68(g)# Stock & stores 5 702 2025 2,727 IAS 1.57, 1.68(h)# Accounts receivable 6 48,270 11121 8976 50,415

IAS 1.57, 1.68(h)# Advance, deposits and prepayments,

deferred assets, others7 3,668 1505 5,173

IAS 1.68(i)# Cash & bank balance 8 55,621 752 11,738 27,107 8976 61428

38994 20251505

IAS 1.51 540IAS 1.68(p), 75(e)# Total current assets 108,261 85,422

# Total assets 592,817 581,716

EQUITY FUNDIAS 1.51 Capital fund 9 590,282 38994 629,276

Retained earnings (8,536) 61428 11121 (58,091) IAS 1.51 752

Total equity fund 581,746 571,185 IAS 1.60, 1.68 (j)#IAS 1.60, 1.68 (j)# LIABILITIES

Current Liabilities

Accounts payable for expenses 10 840 840 Creditors for expense 10 10,231 540 9,691 Total current liabilities 11,071 10,531

Total liabilities and owners' equity 592,817 581,716

In thousand TakaAs at 30 June 2009 and 2010

Balance SheetKhulna Water Supply and Sewerage Authority (KWASA)

Notes June 30, 2009 June 30, 2010Addition Deduction


Page 35 of 60

B. Notes to Preliminary Financial Statements

1. INCOME STATEMENT ITEMS

Note 1 - Revenues The major revenue item is the operating income from water sales from connections amounting to Tk 11.12 million which was estimated based on the number of active connections resulting from the survey conducted in 2010 as shown in Table Ap2.1. KWASA computed revenues at a higher figure of Tk 16 million based on total number of connections of 15718. It was agreed that these are still estimates and the audit will provide the final actual figures. Table Ap2.3 – Estimated Revenues in 2010

Note 2 – Figures for other water sales (water sales through delivery trucks), new connection fees and other non-operating revenues were derived from KWASA’s Collection Report for FY 2010.

Note 3 - Operating and Maintenance (O&M) Costs were obtained from KWASA’s Summary of Expenditures for FY 2010.

Service Connections Dom Non-Dom Total1/2" 1,787 17 1,804 3/4" 9,698 244 9,942 1" 353 95 448 1.5" 15 20 35 2" 9 9 Total 11,853 385 12,238

Monthly Bill RateDia1/2" 45 3/4" 70 1" 200 1.5" 1,200 2" 2,000

Annual Water SalesDia1/2" 0,9743/4" 8,3511" 1,0751.5" 0,5042" 0,216

11,121

Estimated Revenues (Tk 000)


Page 36 of 60

2. BALANCE SHEET ITEMS Note 4 - Fixed Assets – Table Ap2.4 shows the FY 2009 opening balances based on the SSTA and the JICA studies as well as the additions to fixed assets based on (i) KWASA Summary of Expenditures and (ii) the capital works in progress transferred to Fixed Asset in FY 2010.

Capital Works In Progress (CWIP) - Based on the SSTA Study, as of 30 June2009, KWASA has a total of Taka 1.5 Million in its Capital Works in Progress (CWIP) account. There are no details available as to when these assets will be finally commissioned as well as the breakdown into specific property, plant and equipment categories. It is assumed that the capital works are part of the works being done on the office buildings for which there was substantial activity in FY 2009 and 2010. The beginning balance of Taka 1.5 Million is assumed to have been part of work that has been completed and therefore transferred to Fixed Assets – Building in FY 2010 as part of additions totaling Taka 4.68 million. Note 5 – Inventory represents the beginning balance plus purchases for the year amounting to Tk 2.7 million.


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Table Ap2.4 Fixed Assets

Note 6 - Receivables

(From KWASA Expenditures)Additions Balance

LandUnderwater Clearing water 999,999 WASA Office 108,889 Nirala pump house 53,965 Car Parking 105,744 Pump house at hospital 139 Shahid hadis park pond 696,310 1,965,046 1,965,046

Tubewell50 Production tubewell 150,000,000 14 Mini production tubewell 17,000,000 mini production tubewellDhaka sanitary store 833,964 MK Construction 833,964 3270 1.5" deep Tubewell 100,000,000 5560 1.5" shalow tubewell 40,000,000 Tubewell-shallow and deep 409,000 Deep tubewell 2,447,952 Shallow Tubewell 748,524 312,273,404 1,571,187 313,844,591

Transmission and distribution lines220Km main pipeline 88,000,000 Pipeline (7KM) 3,145,056 91,145,056 91,145,056

Buildings (Including Construction in Progress of Taka 1.5 million)KWASA (Ground Floor) 5,000,000 KWASA (First Floor) 3,036,543 8,036,543 4,682,278 12,718,821

Sewerage 11,000,000 11,000,000 11,000,000 Safety tank

Pump houseNirala 4,000,000

Pump Dhaka sanitary 371,668 4,371,668 2,323,322 6,694,990

Motor VehicleKhulna Mettro-Kha-11-0133 850,000 Khulna Mettro-E-11-0002 987,800 Sprinkler 1,280,000 Bowser 920,390 Khulna Mettro-Mo-02-0027 725,000 4,763,190 4,763,190

Furniture and FixtureChairman's office 33,228 Board room 162,251 Managing Director's office 188,693 MD Secretary and Chief Engineer' office 35,034 Furniture 388,300 807,506 4,661,672 5,469,178

Water Treatment PlantTreatment Equipment 135,900 New material list of chlorine saved 998,800 Spare parts list of Chlorine saved 394,500 Mini treatment plant 11,265,500 Chlorine equipment, pipelines and tubewell 13,800,000

22,098,800 48,693,500 48,693,500 Total 483,055,913 13,238,459 496,294,372

FY 2009(From SSTA Study)

FY 2010


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Opening and Beginning balances for FY 2009 are based on the SSTA study and JICA study. For FY 2010, receivables are computed as follows:

KWASA believes that the actual figures for receivables is much less than this, at around Taka 20 million. This considered only unpaid amount during operations starting 2008 and was based on estimates for revenues based on total number of connections of 15718. It was agreed that these figures are still estimated and the audit will provide the final actual figures. Note 7 - Advance, Deposits, prepayments, deferred assets and others There is a total of Taka 1.504 million deferred assets were added to the beginning balance of this account resulting in an ending balance of Tk 5.173 million in FY 2010.

Note 8 – Cash

Total cash in bank amounted to Taka 27.11 million as of June 30, 2010 comprising the following.

Note 9 – Subsidy The cash flow statement in Table Ap2.5 shows a total subsidy received from the government amounting to Tk 38.99 million.

ReceivablesBeginning Balance 48,270 Add Water Sales July 1 to June 30, 2010 11,121 Less Collections 8,976 Ending Balance 50,415

Collection EfficiencyCollection 8,976 81%

Estimated Bills 11,121

Cash on Hand 0Cash in Bank

Janata Bank 17398Bank Asia 217Pubali Bank 9492Subtotal 27107


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Table Ap2.5 Cash Flow

Khulna Water Supply and Sewerage AuthorityProjected Cash Flow Statement('000)

2010Estimated

Cash Balance, Beginning 55,621Add: ReceiptsOperations: - from Water Billings 8,976 - from Other Revenues 752 - from Accounts Receivables - Project Loans / Grant - Project Grants - Subsidies / Grants for Operations 38,995Miscellaneous ReceiptsTotal Receipts 48,723Less: DisbursementsOperations: - Operating Expenses 61,428 - Capital Expenditures 11,738 - Payment of Suppliers/Contractors (Accounts Payable) - - Purchase of Inventory 2,025 Project Disbursements - Loans / Grants - - Grants - Debt Service - Interests - - Principal - Miscellaneous 2,045 Total Disbursements 77,236 Cash Inflow (Deficit) (28,513) Cash Balance, Ending 27,108


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Annex 3 – Financial Plan: Major Assumptions

A. GENERAL ASSUMPTIONS

1. KWASA uses a fiscal year (FY) ending June 30 in its financial reporting. KWASA was established in March 2008 and is yet to prepare FY 2009 and 2010 Financial Statements and have these reports audited. In the meantime, estimated income and balance sheet figures for these periods are shown in Annex 2 and were prepared based on the ADB SSTA7 as well and the JICA feasibility studies8. These preliminary financial reports were discussed with KWASA accounting section which accepted the preliminary financial reports pending the results of the audit.

2. The business plan covers the period up to 2030.

B. SUPPLY AND DEMAND

1. Production

As a result of 5 major projects, KWASA’s production capacity will increase from the existing 30,100 m3/day to 162,427 m3/day in 2017 as shown in Table 1. However not all of the water will be billed due to losses from NRW. Moreover, billed volume is less than available volume considering that some water cannot be billed for a full year as it takes time to install connections and bill the water.

Table 1. Production (m3/day)


2010 2011 2012 2013 2014 2015 2016 2017

Existing 30,100 30,100 27,090 24,080 21,070 19,565 21,070 24,080PROJECT 1a- GoB Project: Development of Water Supply System in Khulna City - : 20 Mld 10,769 20,000 20,000 20,000 20,000 20,000

6,750 6,750 6,750 6,750- - - - - - - -

7,429 14,286 16,000 17,000 18,000- - - - - - - -

91,0971,448 3,500 3,500 3,500 2,500

30,100 30,100 37,859 52,957 65,606 65,815 68,320 162,427

PROJECT 1b - GoB Project: Development of Water Supply

PRODUCTION CAPACITY AND UTILIZATION

PROJECT 2 - GoB Rehab Of DTW & Water Supply PROJECT 3 - KCC Development of Water Supply System PROJECT 4a - JICA Packages 1 & 2 - Intake, Raw Water PROJECT 4b - ADB Packages 3 & 4 - Treated Water PROJECT 5 - KCC Mini Tubewell Project -3.85 MldTotal Production Capacity (m3/day)


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2. Population Served

Based on the JICA Feasibility Study Report, the population of Khulna stood at 958,000 in 2009. Household size has been found, through customer surveys to be 5.5 persons/household. Population is forecast to increase annually at the rate of 2.0% based on the findings of the JICA Feasibility Study Report. KWASA serves its customers through connections and tubewells. KWASA currently serves 23% of the city population with piped water; this is expected to increase to 57% by 2017.

Table 2. Population Served

3. Consumption

Demand at the start of the business plan period as indicated by the consumption surveys carried out under ADB SSTA project are:

Domestic – 2010: 82 l/cap/d;

Non Domestic – 2010: 9.7 % of total demand;

It is assumed that per capita consumption will increase to 120 l/c/d by 2014.

Similarly it is assumed that non-domestic consumption remains at 81 m3/conn/month.

4. Demand

Table 3 shows that in 2014, the first year when there will be additional connections, there will be available water to allow for additional 10,995 households and 945 non domestic units to be served with water from the system. By 2017, a total of 56,284 additional households and 2,905 non domestic units will be served by the system.

Jun-10 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017Base Data Assumptions - From JICAPopulation Growth Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Population Forecast (Rounded to '000) 966,500 986,000 1,006,000 1,026,000 1,047,000 1,068,000 1,089,000 1,111,000POPULATION BY SUPPLY SOURCEPopulation Supplied by Private Tube Well (Jica 3-25) 412,000 412,000 412,000 412,000 412,000 412,000 412,000 309,000Population Supplied by KWASA HTW (derived) 376,654 376,654 376,654 376,654 376,654 376,654 376,654 188,327

Other Population Supplied by HTW 188,212 188,212 188,212 188,212 188,212 188,212 188,212 94,106Slum/LIC population Supplied by HTW 188,442 188,442 188,442 188,442 188,442 188,442 188,442 94,221

Population Supplied by KWASA Network 177,846 197,346 217,346 237,346 258,346 279,346 300,346 613,673TOTAL POPULATION 966,500 986,000 1,006,000 1,026,000 1,047,000 1,068,000 1,089,000 1,111,000KWASA HTW Coverage 39.0% 38.2% 37.4% 36.7% 36.0% 35.3% 34.6% 17.0%KWASA Network Coverage 18.4% 20.0% 21.6% 23.1% 24.7% 26.2% 27.6% 55.2%Private Tube well coverage 42.6% 41.8% 41.0% 40.2% 39.4% 38.6% 37.8% 27.8%


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Table 3. Demand

5. Water Loss9

The most current estimate of Water Loss in the KWASA piped network can be calculated by using data from three different sources:

Households and non-domestic connections served - from the Customer Census Survey;

Average consumptions for Domestic and Non-domestic - from the ADB Consumption Surveys (Domestic & Non-domestic);

DTW Production Volume – from the JICA FS estimate;

Table 4 below indicates that based on this data Water Losses are around 42%.

Table 4. CURRENT WATER LOSS

Domestic Demand Surveyed Domestic Connections (Legal and Illegal) 14,059

Households Served (hh:connection ratio 2.82) 39,639

Per Capita Consumption - l/c/d 82

Daily Domestic Demand - m3/day 17,881

9 The term Water Loss is used here rather than NRW as currently almost no revenue is collected. With the introduction of 100% metering as a result of the investment project KWASA will report NRW rather than water loss.

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

1 Households/ non domestic unitsExisting units

Actual households using KWASA water per survey 32,292 32,292 32,292 32,292 32,292 32,292 32,292 32,292 Actual non domestic units using KWASA water per survey 523 523 523 523 523 523 523 523

New units Domestic households Cumulative increases 10995 23900 27718 56284

Total (midyear) 43287 56192 60010 88576

Non Domestic Units Cumulative increases - - - 945 1887 1942 2905Total (midyear) 1468 2410 2465 3,428

Cumulative Total (midyear)Domestic households 32,292 32,292 32,292 32,292 43,287 56,192 60,010 88,576 Non Domestic Units 523 523 523 523 1,468 2,410 2,465 3,428

2 Demand Volume (m3/day)KWASA Network - Domestic 14,564 12,432 14,564 18,649 28,570 37,087 39,607 58,460 KWASA Network - Non Domestic 1,412 1,412 1,412 1,412 3,963 6,507 6,655 9,256

Demand volume from KWASA Network 15,976 13,845 15,976 20,061 32,533 43,593 46,262 67,716

DEMAND


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Non Domestic Demand

Surveyed Non Domestic Connections 523

Average Consumption per Connection - m3/day 3 Daily Non Domestic Demand - m3/day 1,412

Total Demand - m3/day 19,293 Production - m3/day 30,100 Water Loss Volume - m3/day 10,807

Water Loss % 35.9%

The value of water loss is higher than the 18% that is assumed in the JICA model. The forecast of NRW in the financial model assumes that current losses will gradually be reduced to 25% until the year of commissioning of the new SWTP and will then decrease to 20% after the first year of operation of the new SWTP when all network will have been replaced – the assumption is that of the 20% NRW – 15% will be due to technical losses and 5% due to commercial loss.

C. REVENUES

1. Revenue Improvement Program

Although the survey reports 32,292 household users, only 11,853 households are currently registered. The rest are unbilled household users resulting from the practice of several households sharing a connection or else are illegal users. In the coming years, the KWASA will embark on five major programs to increase connections and bill all users as shown in Table 5.


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Table 5. Revenue Improvement Program

2. Water Sales

As a result of the above programs, there are three possible sources of water sales, namely:

revenues from water connections through flat rate billing;

revenues from metered billings based on volume of consumption, and

revenues from private deep tubewells (DTW) to be billed as a fixed fee per DTW.

Another option in the future are revenues from hand tubewells to be billed on a flat rate basis per household.

3. Connections

While most of the above programs will increase the number of households billed, up to year 2017, the number of domestic connections will continue to be less than the number of households by a factor of 2.30 as shown in Table 6 below. It is expected that multi-storied building will continue to have one connection and eventually one meter, but in the future they will be billed on the basis of the number of households drawing water from that connection.

Numbers Fiscal Yeara Increase in number of connections from 2011 to 2017

as more volume of water is made available from ongoing and future projects. Domestic Connections (end of fiscal year) 11853 40863 FY 2017Non Domestic Connections (end of fiscal year) 385 4334 FY 2017

b Registration of all illegal connections 2206 illegal domestic connections and 138 illegal non domestic connections

zero FY 2012

c Conversion billing per household Domestic Households (end of fiscal year) 11853 32292 FY 2012


e Charging owners of private deep tubewells an annual flat fee

no charges 17,799 private DTWs billed

FY 2017


PresentTarget


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Table 6. Computation of Households/Connection Factor

Table 7 shows the number of households and non domestic units that can be served through the KWASA network. Using the above factors, the estimated number of connections is expected to increase from the current 11,853 to 31,410 domestic connections and from 385 to 3,428 non domestic connections by 2017. KWASA will also embark on a Metering Program and by the end of FY 2012 all connections will be metered.

Table 7 - Summary of Connections

4. Base Case Tariff

The assumed tariff and fees for each revenue source is shown in Table 8. It is expected that there will be 5% annual tariff increases from 2012 to 2016.

Domestic Connections

Legal Con-nections

Illegal Con-nections Total

Domestic ConnectionsConnections 11,853 2,206 14,059 Households 25,784 6,508 32,292 Factor 2.30 Non Domestic ConnectionsConnections 385 138 523 Non Domestic units 385 138 523 Factor 1.00 Total ConnectionsConnections 12,238 2,344 14,582 Households/Non Domestic units 26,169 6,646 32,815

FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017

1 EXISTING CONNECTIONSHouseholds 25,784 25,784 32,292 32,292 32,292 32,292 32,292 32,292 Domestic Connections 11853 11853 14059 14,059 14,059 14,059 14,059 14,059 Non Domestic Units 385 385 523 523 523 523 523 523 Non Domestic Connections 385 385 523 523 523 523 523 523

2 NEW CONNECTIONSHouseholds 10995 12904 3818 28566Domestic Connections 2595 3272 1354 10130Non Domestic Units 945 942 55 963Non Domestic Connections 945 942 55 963

3 CUMULATIVE TOTAL ALL CONNECTIONS (mid year)Households 25,784 25,784 32,292 32,292 43,287 56,192 60,010 88,576 Domestic Connections 11,853 11,853 14,059 14,059 16,654 19,926 21,280 31,410 Non Domestic Units 385 385 523 523 1,468 2,410 2,465 3,428 Non Domestic Connections 385 385 523 523 1,468 2,410 2,465 3,428


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Table 8. Tariff Summary

5 Other Operating Revenues

Other Operating revenues include connection fees and water sales from bowsers and connection fees which are estimated at 5% of water sales based on FY 2011 experience.

6 Non-Operating Revenues

Non Operating Revenues from other sources including sale of bidding documents, are estimated at 1% of operating revenues based on the experience in FY 2011.

D. OPERATIONS AND MAINTENANCE COST

1. Salaries

KWASA staff currently number 284 comprising permanent and casual staff. This is expected to increase to 502 in 2017. Monthly salaries average Taka 7,306 and allowances are provided to permanent employees at around 41% of their salaries. As a % of total salaries, allowances are currently estimated at around 26%. Average monthly salaries are expected to increase to Taka11,666 by 2017, and by that time it is expected that all employees will be permanent. As permanent employees they will be entitled to allowances at 41% of these salaries. See Table 9.

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

A Monthly flat rate (Tk/connection)1/2" 45.00 45.00 45.00 47.25 49.61 52.09 54.70 57.43 3/4" 70.00 70.00 70.00 73.50 77.18 81.03 85.09 89.34

1" 200.00 200.00 200.00 210.00 220.50 231.53 243.10 255.26 1.5" 1,200.00 1,200.00 1,200.00 1,260.00 1,323.00 1,389.15 1,458.61 1,531.54

2" 2,000.00 2,000.00 2,000.00 2,100.00 2,205.00 2,315.25 2,431.01 2,552.56

B Metered rate (Tk/m3)Domestic 19.35

Non-Domestic 38.71

C DTW annual fees (Tk/DTW) 3,000

D Tariff Increases 0% 0% 0% 5% 5% 5% 5% 5%

Tariff Summary


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Table 9. Staffing and Salaries

Direct Costs

Direct costs comprise power and chemicals which are estimated based on a composite rate per m3 produced computed on the basis of the following in Table 10:

EXISTING STRUCTURE 2011 PROPOSED STRUCTURE 2014 PROPOSED STRUCTURE 2017 ORGANISATIONAL UNIT

Staff Numbers

ORGANISATIONAL UNIT Staff

Numbers ORGANISATIONAL UNIT

Staff Numbers

THE MANAGING DIRECTOR THE MANAGING DIRECTOR THE MANAGING DIRECTOR Managing Director and Staff 4 Managing Director and Staff 4 Managing Director and Staff 4

Management Services Section 10 Management Services Section 10 4 14 14 ENGINEERING DIVISION ENGINEERING DIVISION TECHNICAL SERVICES DIVISION

Office of the DMD 4 Office of the DMD 3 Office of the DMD 3 Chief Engineers Office 3 Production & Distribution Department 186 Production Department 146 Production, Distribution, Consumer Service

Department 196

Superintending Engineers Office 3 Planning and Development Department 16 Planning and Development Department 16 Planning, Development & Project Management Department

12

Maintenance Services Department 42 218 205 207 FINANCE AND ADMINISTRATION DIVISION FINANCE AND ADMINISTRATION DIVISION FINANCE AND ADMINISTRATION DIVISION

Office of the DMD 3 Office of the DMD 3 Office of the DMD 3 Office of the Commercial Manager 3 Finance and Accounting Department 17 Finance and Accounting Department 18 Finance and Commercial (Revenue) Department 34

Office of the Secretary 4 Administration Department 44 Administration Department 50 Administration, HR & General Department 18 62 64 71 CUSTOMER SERVICE DIVISION COMMERCIAL SERVICES DIVISION Office of the DMD 3 Office of the DMD 3 Customer Service Department 29 Customer Service Zone 1 & 4 Department 69 Customer Revenue Department 56 Customer Service Zone 2 Department 69 Customer Service Zone 3 & 5 Department 69 88 210

TOTAL 284 371 502 Av ge. Salary 2013 (Tk/Month) – Mid Range 6,803 Avge. Salary 2017 (Tk/Month) – Top Range 11,696


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Table 10 – Composite Rates for O&M

2. Maintenance & Other Overheads

Repairs and maintenance is assumed at 0.15% of fixed assets. Administrative expenses are computed at 15% of expenses in 2011 and this is expected to reduce to 5% by 2017.

In addition to the regular repairs and maintenance, the JICA feasibility studies provided for replacement of mechanical equipment in year 16. It is assumed that 15 years after project completion, major repair/replacement of electrical and mechanical equipment will be undertaken gradually over a period of 5 years

4. Depreciation

Depreciation is based on assumptions following the DWASA depreciation rates except for depreciation on plant and machinery. Per DWASA the rate for this is 15% representing a 7 year life. It is believed that the plants and machineries including plants would have at least a 20 year life, and it was on this basis that depreciation was computed. The depreciation rates used are shown in Table 11.

Table 11. Depreciation Rates

In 2010, it was estimated that KWASA had beginning fixed assets of Tk 496 million of which Tk314 million represented tubewells, most of which were installed prior to 2000. With a depreciation rate of 6%, or a life of 15 years, it is estimated these tubewells are generally 50% depreciated in 2010. For this reason, they are assumed fully depreciated by 2018 or 7 years after KWASA started depreciating its assets in 2011.

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY 2016 FY 2017

A. COMPOSITE UNIT COST - POWER (Taka/m3 produced)0.89 0.89 0.64 0.41 0.29 0.27 0.28 0.13 - - 0.08 0.11 0.09 0.09 0.09 0.04 - - - - 0.07 0.07 0.06 0.03 - - - 0.06 0.09 0.10 0.10 0.05 - - - - - - - 1.54 - - - 0.06 0.12 0.12 0.12 0.03

Composite Unit Cost 0.89 0.89 0.72 0.64 0.65 0.64 0.64 1.82

B. COMPOSITE UNIT COST - CHEMICALS (Taka/m3 produced)0.02 0.02 0.01 0.01 0.01 0.01 0.01 0.00

- - 0.00 0.00 0.00 0.00 0.00 0.00 - - - - 0.03 0.03 0.02 0.01 - - - 0.00 0.00 0.00 0.00 0.00 - - - - - - - 0.67 - - - 0.00 0.00 0.00 0.00 0.00

Composite Unit Cost 0.02 0.02 0.02 0.02 0.04 0.04 0.04 0.69

PROJECT 5 - KCC Mini Tubewell Project -3.85 Mld

Existing Assets PROJECT 1a- GoB Project: Development of Water Supply System in Khulna City - : 20 Mld PROJECT 1b - GoB Project: Development of Water Supply System in Khulna City - 6.75 Mld PROJECT 3 - KCC Development of Water Supply System in Phultala - (28 Mld)PROJECT 4 - JICA Packages 1 & 2 and ADB Packages 3 & 4PROJECT 5 - KCC Mini Tubewell Project -3.85 Mld

Existing Assets PROJECT 1a- GoB Project: Development of Water Supply System in Khulna City - : 20 Mld PROJECT 1b - GoB Project: Development of Water Supply System in Khulna City - 6.75 Mld PROJECT 3 - KCC Development of Water Supply System in Phultala - (28 Mld)PROJECT 4a - JICA Packages 1 & 2 - Intake, Raw Water Transmission & WTP

DEPRECIATION RATES FOR FIXED ASSETS*

Building Freehold 2%Tubewells 6%Pumping Plant and Equipment (DWASA 15%) 5%Transmission and Distribution Lines 2%Water Treatment Plant 2%Furniture, Fixtures and Equipment 10%Motor Vehicles 20%Other Assets 20%

*Straight line, no salvage value


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E. CAPITAL EXPENDITURES

1. Investment Plan

Capital expenditures included in the business plan model include all expenditures proposed under the JICA and ADB loan components, as well as ongoing and future planned GoB projects. Six key projects will be undertaken during the business plan period totalling around Tk 23 billion. See Table 12.

Table 12. Investment Plan (In Taka 000s)

Project 3 – KCC Development of Water Supply System in Phutala (28 mld) and Project 5 – KCC Mini Tubewell Project will be implemented by KCC and handed over after completion to KWASA. The other projects will be implemented by KWASA. The projects being executed by KCC will be incorporated into KWASA asset register upon turn over.

2. The Khulna Water Supply Improvement Project

This was based on the following key assumptions used in the feasibility study prepared by JICA10:

(i) the ADB/JICA loan will be effective in March 2011,

(ii) the 6-year disbursement period will be completed in December 2018, during which time the project is expected to be completed.

(iii) the ADB/JICA loan will be relent to KWASA and will be payable under the following terms (i) 2% interest, (ii) 8 years grace period, and (iii) 20 years repayment period.

Investment figures for the ADB/JICA project were based on July 2010 prices. During that month, the exchange rate was $1 to Taka 70 and 91.5 Japanese Yen. Annual cost-escalation factors used are 3.1% for foreign currency (JICA estimates) and 5% for local currency.

10 Feasibility Study for Khulna Water Supply Improvement Project in Bangladesh, Japan International Cooperation Agency, July 2010, Page11-2

SUMMARY INVESTMENT PLAN (In Current Tk 000s)

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Total

PROJECT 1a- GoB Project: Development of Water Supply System in Khulna City - : 20 Mld 97,428 177,339 39,253 - - - - - 314,020 PROJECT 1b - GoB Project: Development of Water Supply System in Khulna City - 6.75 Mld SWTP - 55,776 61,681 - - - - - 117,457 PROJECT 2 - GoB Rehab Of DTW & Water Supply Expansion - 16mld - - - - - - - - - PROJECT 3 - KCC Development of Water Supply System in Phultala - (28 Mld) - - - - 339,350 - - - 339,350 PROJECT 4a - JICA Packages 1 & 2 - Intake, Raw Water Transmission & WTP - - 373,443 3,179,944 6,464,031 4,517,623 1,263,622 30,029 15,828,691 PROJECT 4b - ADB Packages 3 & 4 - Treated Water Transmission, Storage and Distribution - 1,506,363 3,829,562 1,270,837 1,352,143 688,805 589,736 195,296 9,432,741 PROJECT 5 - KCC Mini Tubewell Project -3.85 Mld 22,455 - - - - - 22,455

Total 97,428 1,761,933 4,303,939 4,450,781 8,155,524 5,206,427 1,853,358 225,325 26,054,715


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F. RECEIVABLES

1. Opening And Beginning Balances For Receivables

Beginning balances are estimated based on SSTA study (FY 2009) and the listing of accounts provided by KWASA (FY 2010). The figures are yet to be audited. KWASA is in the process of hiring an auditor and it is expected that the audited Financial Statements for 2009 and 2010 will be available by early 2011. See Annex 2.

2. Collection Efficiency

Due to lack of data, and the lack of systems to account for receivables, the projections assume a lower starting collection efficiency of 80% in 2011 (as against 90% collection efficiency, in the JICA Feasibility Study). From 2011 to 2014, there will also be numerous programs for which some resistance from customers is initially expected such as conversion to billing per household, registration of illegal connections and metering. For this reason, although improvement in the systems is expected through the implementation of a computerized billing and collection system, increase in collection efficiency is expected to be gradual and will reach 95% only by 2014.

G. INVENTORY

It is assumed that inventory levels will be maintained at 4 months of chemicals and repair expenses.

FIXED ASSETS

1. Fixed Assets

Fixed Assets represent the accumulation of existing fixed assets of P496 million in 2011 plus the value of all the investments amounting to Tk 26 billion. The fixed assets are presented net of accumulated depreciation.

2. Capital Works In Progress (CWIP)

Project Disbursements are recorded as CWIP until the year project completion. These amounts are transferred to Fixed Assets and made subject to depreciation the year after completion.

H. LOANS PAYABLE

The project will be financed through an ADB/JICA loan to the Government of Bangladesh and relent to KWASA to under the following concessional terms: 30 years repayment including 8 years grace period and 2% interest rate.

I. PAYABLES TO CREDITORS

Payables are estimated at 2 months of fuel and electricity costs.

J. GOVERNMENT SUBSIDY

KWASA reported that it received Tk 76.5 million as government subsidy in FY 2011. It is assumed that the government will continue to provide the same amount for FY 2012 and FY 2013.


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Annex 4 - Financial Projections for the Base Case Scenario

Khulna Water Supply and Sewerage AuthorityProjected Income Statement(In Current Tk '000)

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Operating Revenues 16,444 11,764 11,672 31,976 33,575 49,529 69,079 77,106 627,017 870,507 986,913 1,102,662 Non-Operating Revenues 64 109 117 320 336 495 691 771 6,270 8,705 9,869 11,027 Total Income 16,508 11,873 11,789 32,296 33,911 50,024 69,769 77,877 633,287 879,212 996,782 1,113,689

Personnel Expenses 17,758 36,696 34,588 36,318 39,344 77,559 81,437 85,509 146,400 153,720 161,406 169,476 Fuel and Electricity 4,659 11,230 7,765 7,604 8,831 14,668 20,398 21,981 90,739 120,640 132,313 148,257 Chemicals - - 174 181 227 926 1,303 1,369 34,257 45,422 49,682 55,866 Repairs and Maintenance 546 5,497 708 704 667 629 1,087 1,485 1,584 1,536 1,492 1,458 Administrative and General Expenses 2,081 8,005 5,874 3,136 2,453 4,689 5,211 5,517 13,649 16,066 17,245 18,753

Total O & M Expenses 25,044 61,428 49,110 47,943 51,522 98,471 109,436 115,861 286,629 337,383 362,138 393,811 Gross Operating Profit /(Loss) (8,536) (49,555) (37,321) (15,647) (17,612) (48,447) (39,667) (37,984) 346,658 541,829 634,644 719,878 Less: Depreciation Expenses - - 24,266 24,984 24,984 24,984 33,973 48,817 51,304 32,473 29,173 22,525 Net Operating Profit /(Loss) before Interest Expense (8,536) (49,555) (61,587) (40,631) (42,596) (73,431) (73,640) (86,800) 295,354 509,356 605,471 697,354 Interest Expense - - - - - - - - - - - 389,151 Net Income/(Loss)before Taxes (8,536) (49,555) (61,587) (40,631) (42,596) (73,431) (73,640) (86,800) 295,354 509,356 605,471 308,203

Estimated Projected


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Khulna Water Supply and Sewerage AuthorityProjected Balance Sheet('000)


ASSETS AND OTHER DEBITSNon-Current AssetsProperty, Plant & Equipment (net) 483,056 496,294 472,028 469,499 444,515 419,530 724,908 990,111 1,056,264 1,023,792 994,618 972,093Capital Work in Progress 1,500 - 97,428 1,847,450 6,202,110 10,765,204 18,781,804 23,969,805 26,056,630 26,654,448 27,035,968 27,035,968

484,556 496,294 569,456 2,316,949 6,646,625 11,184,734 19,506,712 24,959,917 27,112,894 27,678,240 28,030,587 28,008,061Current Assets Inventories 702 2,727 294 295 298 518 796 951 11,947 15,652 17,058 19,108Customer Accounts Receivables 48,270 50,415 51,059 53,958 55,441 56,066 55,660 55,415 65,337 79,461 95,311 112,825Deposits and Advances 3,668 5,173 5,173 5,173 5,173 5,173 5,173 5,173 5,173 5,173 5,173 5,173Cash and bank accounts 55,621 27,108 59,679 117,605 175,212 126,893 88,308 50,679 387,878 916,861 1,536,195 1,137,260SUB-TOTAL 108,261 85,423 116,205 177,031 236,124 188,650 149,938 112,218 470,336 1,017,147 1,653,738 1,274,366Total Assets 592,817 581,717 685,661 2,493,980 6,882,750 11,373,384 19,656,650 25,072,135 27,583,230 28,695,387 29,684,325 29,282,427EQUITY AND LIABILITIESCapital and ReservesEquity Capital 590,282 629,276 705,776 782,276 858,776 858,776 858,776 858,776 858,776 858,776 858,776 858,776Funds and Grants 0 0 97,428 804,907 2,166,742 3,501,977 6,186,179 7,748,107 8,304,115 8,371,712 8,371,712 8,371,712Accumulated Profit/(Loss) (8,536) (58,091) (119,677) (160,309) (202,904) (276,336) (349,976) (436,776) (141,422) 367,934 973,405 1,281,608

581,746 571,185 683,527 1,426,874 2,822,614 4,084,417 6,694,979 8,170,107 9,021,469 9,598,422 10,203,893 10,512,095Non-Current LiabilitiesLoans Payable - - - 1,064,999 4,057,823 7,285,682 12,957,431 16,897,524 18,545,798 19,076,018 19,457,539 18,744,782 Other Deferred Liabilities -

- - - 1,064,999 4,057,823 7,285,682 12,957,431 16,897,524 18,545,798 19,076,018 19,457,539 18,744,782 Current LiabilitiesCreditors 10,231 9,691 1,294 1,267 1,472 2,445 3,400 3,664 15,123 20,107 22,053 24,710

Loans Interest PayableOther Payables 840 840 840 840 840 840 840 840 840 840 840 840 11,071 10,531 2,134 2,107 2,312 3,285 4,240 4,504 15,963 20,947 22,893 25,550Total Equity and Liabilities 592,817 581,716 685,661 2,493,980 6,882,749 11,373,383 19,656,650 25,072,135 27,583,230 28,695,386 29,684,325 29,282,427

Estimated Projected


Page 53 of 60

Khulna Water Supply and Sewerage AuthorityProjected Cash Flow Statement('000)


Cash Balance, Beginning 55,621 27,108 59,679 117,605 175,212 126,893 88,308 50,679 387,878 916,862 1,536,195 Add: ReceiptsOperations: - from Water Billings 8,976 8,893 25,885 28,778 44,812 64,473 71,966 585,216 812,473 921,119 1,029,151 - from Other Revenues 752 673 1,842 1,935 2,854 3,980 4,443 36,128 50,158 56,865 63,534 - from Accounts Receivables - 1,579 1,669 1,715 1,734 1,721 1,714 2,021 2,458 2,948 3,489 Project Loans - - 1,064,999 2,992,824 3,227,859 5,671,749 3,940,093 1,648,274 530,221 381,520 - Project Grants - 97,428 685,024 1,361,835 1,335,234 2,344,852 1,561,928 556,007 67,597 - - Subsidies for Operations 38,995 76,500 76,500 76,500 - - - - - - - Miscellaneous Receipts Total Receipts 48,723 185,073 1,855,919 4,463,587 4,612,493 8,086,776 5,580,143 2,827,646 1,462,907 1,362,452 1,096,175 Less: DisbursementsOperations: - Operating Expenses 61,428 38,912 39,454 41,798 82,248 86,649 91,026 160,049 169,786 178,650 188,229 - Capital Expenditures 11,738 - Payment of Suppliers/Contractors (Accounts Payable) - 16,162 7,631 8,627 13,695 19,443 21,717 79,279 115,656 130,368 145,600 - Purchase of Inventory 2,025 - 886 896 1,776 2,668 3,008 46,838 50,663 52,579 59,374 Project Disbursements - Self Financed - Loans - - 1,064,999 2,992,824 3,227,859 5,671,749 3,940,093 1,648,274 530,221 381,520 - - Grants - 97,428 685,024 1,361,835 1,335,234 2,344,852 1,561,928 556,007 67,597 - - Debt Service - Interests - - - - - - - - - - 389,151 - Principal - - - - - - - - - - 712,757 Miscellaneous 2,045 - - - - - - - - - - Total Disbursements 77,236 152,501 1,797,994 4,405,980 4,660,813 8,125,360 5,617,772 2,490,447 933,923 743,118 1,495,111 Cash Inflow (Deficit) (28,513) 32,571 57,926 57,607 (48,320) (38,584) (37,629) 337,199 528,983 619,334 (398,936) Cash Balance, Ending 27,108 59,679 117,605 175,212 126,893 88,308 50,679 387,878 916,862 1,536,195 1,137,260 Balance at 2 months O&M excluding depreciation 8,185 7,991 8,587 16,412 18,239 19,310 47,772 56,231 60,356 65,635

Estimated Projected


Page 54 of 60

Khulna Water Supply and Sewerage AuthorityProjected Funds Flow Statement('000)


Net Cash Flow from Operating ActivitiesNet Income before Interests (61,587) (40,631) (42,596) (73,431) (73,640) (86,800) 295,354 509,356 605,471 697,354 Add: Depreciation 24,266 24,984 24,984 24,984 33,973 48,817 51,304 32,473 29,173 22,525 (Inc) /decrease in accounts receivables (644) (2,899) (1,483) (625) 406 245 (9,922) (14,124) (15,851) (17,514) (Inc) /decrease in inventories 2,433 (1) (3) (221) (278) (155) (10,996) (3,705) (1,405) (2,050) Inc (dec) in accounts payable (8,397) (27) 205 973 955 264 11,460 4,984 1,946 2,657 Inc (dec) in taxes payablesInterest payments on LT-debt - - - - - - - - - (389,151) Net cash flow from Operating Activities (43,929) (18,574) (18,893) (48,320) (38,584) (37,629) 337,199 528,983 619,334 313,821 Cash Flows from Investing ActivitiesProject Disbursements (97,428) (1,750,023) (4,354,660) (4,563,093) (8,016,601) (5,502,021) (2,204,282) (597,818) (381,520) - CAPEX / Asset Acquisitions - - - - - - - - - - InvestmentsSale of Investments Net cash used by investing activities (97,428) (1,750,023) (4,354,660) (4,563,093) (8,016,601) (5,502,021) (2,204,282) (597,818) (381,520) - Cash Flows from Financing ActivitiesProceeds of Grants / Oper'l Subsidies 173,928 761,524 1,438,335 1,335,234 2,344,852 1,561,928 556,007 67,597 - - Proceeds of LT Loans / Grants - 1,064,999 2,992,824 3,227,859 5,671,749 3,940,093 1,648,274 530,221 381,520 - Principal Payment of LT Loans - - - - - - - - - (712,757) Net cash used by financing activities 173,928 1,826,523 4,431,160 4,563,093 8,016,601 5,502,021 2,204,282 597,818 381,520 (712,757)

Net Increase in Cash 32,571 57,926 57,607 (48,320) (38,584) (37,629) 337,199 528,983 619,334 (398,936) Cash balance at beginning of the Year 27,108 59,679 117,605 175,212 126,893 88,308 50,679 387,878 916,862 1,536,195 Cash Balance, End of Year 27,108 59,679 117,605 175,212 126,893 88,308 50,679 387,878 916,862 1,536,195 1,137,260

Estimated Projected


Page 55 of 60

Annex 5 – Results of Scenario Analysis

Year

2010 (28,513) 27,108 5.17 (4.17) 2011 32,571 59,679 4.17 (5.22) 2012 57,926 117,605 1.48 (1.26) 2013 57,607 175,212 1.52 (1.26) 2014 (48,320) 126,892 1.97 (1.47) 2015 (38,584) 88,308 1.57 (1.06) 2016 (37,629) 50,679 1.49 (1.11) 2017 30,376 81,055 0.89 (0.05) 8.86

2018 (1,727,407) (1,646,352) 3% 0.87 (3.20) 9.31 5%2019 (1,685,869) (3,332,221) 5% 0.83 (2.66) 9.77 5%2020 (1,662,352) (4,994,573) 6% 0.80 (2.13) 10.26 5%2021 (1,643,203) (6,637,776) 7% 0.78 (1.85) 10.78 5%2022 (1,626,063) (8,263,839) 8% 0.77 (1.62) 11.31 5%2023 (1,606,609) (9,870,448) 9% 0.76 (1.41) 11.88 5%2024 (1,585,710) (11,456,158) 11% 0.75 (1.21) 12.47 5%2025 (1,563,925) (13,020,082) 12% 0.74 (1.16) 13.10 5%

Domestic Tariff

SCENARIO 2 (Option 2) - Selected KPIs

Annual Cash Surplus

(Defiiciency)

Ending Cash (Tk000)

Debt Service

Ratio


depr

Net Income Ratio

Tariff Adjustment


Page 56 of 60

Year

2010 (28,513) 27,108 5.17 (4.17) 2011 32,571 59,679 4.17 (5.22) 2012 57,926 117,605 1.48 (1.26) 2013 57,607 175,212 1.52 (1.26) 2014 (48,320) 126,893 1.97 (1.47) 2015 (38,584) 88,308 1.57 (1.06) 2016 (37,629) 50,679 1.49 (1.11) 2017 894,667 945,346 0.24 0.72 38.41 2018 (498,286) 447,060 74% 0.23 (0.08) 40.33 5%2019 (278,081) 168,978 86% 0.21 0.07 42.35 5%2020 (82,961) 86,017 97% 0.20 0.21 44.47 5%2021 83,085 169,102 107% 0.20 0.28 46.69 5%2022 240,350 409,452 116% 0.19 0.34 49.03 5%2023 410,756 820,207 126% 0.19 0.40 51.48 5%2024 594,228 1,414,435 136% 0.19 0.45 54.05 5%2025 817,416 2,231,851 149% 0.18 0.46 56.75 5%

SCENARIO 3 (Option 3) - Selected KPIsAnnual Cash

Surplus (Defiiciency)

Ending Cash

(Tk000)

Debt Service

Ratio


depr

Net Income Ratio

Domestic Tariff

Tariff Adjustment


Page 57 of 60

Annex 6 – KWASA Organisation Structure Staffing Requirements

A6.1 – The Managing Directors Office

THE MANAGING DIRECTORS OFFICE


ORGANISATIONAL UNIT Staff Numbers



THE MANAGING DIRECTOR THE MANAGING DIRECTOR THE MANAGING DIRECTOR Managing Director and Staff 4 Office Of the MD 4 Managing Director and Staff 4 Management Services Section Management Services Section Office of the Section Head 1 Office of the Section Head 1 Internal Control/Audit 2 Internal Control/Audit 2 Corporate Planning 2 Corporate Planning 2 Legal 1 Legal 1 Public Affairs and Information 2 Public Affairs and Information 2 Management Information Systems 2 Management Information Systems 2 4 14 14


Page 58 of 60

A6.2 – Technical Services

TECHNICAL SERVICES





ENGINEERING DIVISION ENGINEERING DIVISION TECHNICAL SERVICES DIVISION Office of the DMD 4 Office of the DMD 3 Office of the DMD 3 Production Department Production Department Chief Engineers Office 3 Office of the Department Manager 3 Office of the Department Manager 3 Production, Distribution, Consumer Service Department 196 Production Section 144 SWTP Operations Section 62

Distribution Section 39 Wells Section 81 Planning and Development

Department Planning and Development Department

Superintending Engineers Office 3 Office of the Department Manager 3 Office of the Department Manager 3

Planning, Development & Project Management Department 12

Planning Section 7 Planning and Design Section 7 Project Management & Implementation Section 6 Project Monitoring and Management

Section 6

Maintenance Services Department Office of the Department Manager 3 Maintenance Section 39 218 205 207


Page 59 of 60

A6.3 – Finance & Administration

FINANCE AND ADMINISTRATION





FINANCE AND ADMINISTRATION DIVISION FINANCE AND ADMINISTRATION DIVISION FINANCE AND ADMINISTRATION DIVISION Office of the DMD 3 Office of the DMD 3 Office of the DMD 3 Finance and Accounting Department Finance and Accounting Department Office of the Commercial Manager 3 Office of the Department Manager 3 Office of the Department Manager 3 Finance and Commercial (Revenue) Department 34 Accounting Section 8 Accounting Section 10

Budget and Treasury Section 6 Budget and Treasury Section 5 Administration Department Administration Department Office of the Secretary 4 Office of the Department Manager 3 Office of the Department Manager 3 Administration, HR & General Department 18 Human Resources Section 7 Human Resources Section 10

General Services Section 34 General Services Section 37 62 64 71


Page 60 of 60

A6.4 – Commercial Services

COMMERCIAL SERVICES EXISTING STRUCTURE 2011 PROPOSED STRUCTURE 2014 PROPOSED STRUCTURE 2017




CUSTOMER SERVICE DIVISION COMMERCIAL SERVICES DIVISION Office of the DMD 3 Office of the DMD 3 Customer Service Department Customer Service Zone 1 & 4

Department

Office of the Department Manager 3 Office of the Department Manager 3 Credit and Collection Section 13 Revenue Section 26 Customer Service Section 13 Customer Service Section 40 Customer Accounts (Revenue)

Department Customer Service Zone 2 Department

Office of the Department Manager 3 Office of the Department Manager 3 Meter reading Section 38 Revenue Section 26 Billing Section 15 Customer Service Section 40 Customer Service Zone 3 & 5

Department

Office of the Department Manager 3 Revenue Section 26 Customer Service Section 40 88 210 TOTAL 284 371 502

Appendix 8 FINANCIAL MANAGEMENT ASSESSMENT REPORT

1

FINANCIAL MANAGEMENT ASSESSMENT REPORT

This chapter presents a key output of the PPTA, the Financial Management Assessment Report covering

financial management performance and the financial management strengthening program.

A. Financial Management Assessment

The financial management assessment covers organization and staffing, systems, revenue adequacy and

financial management.

1. Organization and Staffing

Under the KWASA approved organization structure, finance and accounting functions are currently

performed by two sections namely Financial and Commercial sections which both report to a

Commercial Manager under the DMD for Finance and Administration. There are currently 23 positions in

these sections of which 18 have been filled out. The other 5 positions will be filled out in the coming

months.

The KWASA organization structure has been reviewed twice as part of JICA and ADB studies in the last

two years. The recommendations, whilst not being exactly the same, engender the same principles and

agree on some fundamental organizational requirements as follows:

• Separation of the finance and revenue functions for accountability purposes;

• Establish a clearer customer focus through the organisation structure – introduction of

customer service accountability through a commercial Directorate and move towards a

zonal operating structure in order to be more responsive to customers;

• An internal audit function should be introduced to the organization;

Several positions have been recently hired (Commercial Manager, Accounts Officer, Budget Officer, 3

Revenue Officers) and as a result, most of the key accounting and revenue positions under the approved

organization have already been filled out. The organizational concerns mentioned above as well as the

views of KWASA MD have been taken into account in preparation of organization proposals which are

included in the business plan and also presented in this report.

(b) Staff capability

Preliminary training needs analysis reveal lack of staff capacity in three critical areas, namely technical

knowledge of accounting and financial management and computer skills. Some capacity building is

being provided under this PPTA through training and coaching sessions but a lot more is needed in the

coming years. A comprehensive capacity building program is proposed covering the period up to 2017

and using a three pronged approach comprising training, systems manuals development and

consultancy assistance. Under the PPTA, a short term training plan for financial management is being

implemented. Please see Chapter II, Section 2 on Institutional Strengthening including capacity building.


2

2. Systems and controls

During the PPTA there were no appropriate systems yet in place and there was lack of staff capability to

enable the generation of financial and operating results. With the recent recruitment of the accounting

officer and revenue officers, the accounting and commercial activities are now in the process of being

organized and action is being done to address the deficiencies noted. The key findings relating to

financial management systems and controls are presented below. Substantial work needs to be done in

the coming years so that KWASA will have a fully functioning and dynamic financial management

system. Detailed findings and related action needed is provided in Appendix 5.

a) General Accounting System

KWASA was not yet operating a proper accounting system during the PPTA. The existing system works

on a single entry and cash basis resulting in the following observations and deficiencies:

(i) Currently there is no suitable Chart of Accounts in place, the system is still on single-entry

method and therefore accounting staff do not use standard account titles.

(ii) Only the Collection Report and Statement of Cash Expenditures were being prepared. No

other financial reports were prepared.

(iii) Since only a single entry is in use, there is no General or Control Ledger. KWASA maintains

only the following ledgers and registers and even these are not properly maintained:

• Consumer Ledger

• Check Issue Register

• Inventory Register

• Line Registers (New Line Connection Register and Line Disconnection Register)

• Salary Register, Provident Fund Register

• Others (Stationery Register, Attendance Register, )

Due to the lack of registers and ledgers summarizing data, there is no information on other

key financial information such as total sales generated, expenses other than cash expenses,

and capital expenditures.

(iv) Beginning balances for all accounts were not established and only the ADB SSTA and JICA

figures for FY 2009 were available. As a result, beginning balances for key accounts like

accounts receivable and fixed assets were not yet available during the PPTA. The PPTA

provided assistance to the KWASA in preparing for the audit of its FY 2009 and FY 2010

financial statements including:

• Preparing preliminary financial statements for FY 2010

• Preparing invitation for EOI in connection with the appointment of the Auditor of

KWASA

• Collecting information from the Institute of Charted Accountants of Bangladesh and

DWASA on the appointment of Auditor in KWASA.


3

Eventually the financial audit will establish the beginning balances but in the mean time the

PPTA prepared preliminary financial reports for 2009 and 2010 based on ADB SSTA and JICA

reports as well as other estimates. The preliminary financial reports are shown in Appendix

1. Assistance has been provided to KWASA in securing the services of an external auditor

for KWASA. External Audit firms who submitted their proposals have been requested to

submit their financial offer by November 28, 2010.

(v) Under the previous ADB SSTA, the Hoda Vasi consultants developed a computerized

accounting system and prepared 4 manuals in August 2009 covering the Accounts Manual,

Inventory, HRM and Payroll Manual and the Training Manual. This also includes a Chart of

Accounts. This system is not yet operational and so the PPTA assisted KWASA in drafting

terms of reference (TOR) for a service provider, discussing with potential service providers

and preparing relevant contracts, securing financing from ADB. The TOR requires the

provider to resolve the software problems encountered in the Hoda Vasi accounting

program, provide training, and ensure that the initial financial reports are produced.

b) Cash Operations System

(i) Receipts. The current procedure for the collection of water sales and other receipts is fairly

good. KWASA has its own bank account and it deposits its receipts intact on a regular basis

(ii) Disbursements. The MD approves all disbursements since there are no appropriate policies

relating to approval levels.

(iii) Petty Cash. Most payments are made by check. KWASA does not currently see the need for

petty cash. For the moment, emergency purchases are handled by the employees

advancing the amounts needed.

(iv) A bank reconciliation statement is not prepared.

c) Billing and Collection System

(i) Billing. There is a simple billing system in place in KWASA that is appropriate to the current

needs of KWASA with its unmetered connections. In the coming years however, appropriate

systems need to be developed to handle billing of more customers as well as billing on a

volumetric tariff basis.

(ii) A Consumer Ledger is maintained but the total of the consumer account balances is not

computed as such, it is difficult to determine the accounts receivables balance. The

accounting staff finds it difficult to manually compute the total of the balances of the 12,000

plus customers.

(iii) The collection effort is difficult in the absence of a well maintained Customer Ledger which

is also the basis for the preparation of the Aging of accounts. As a result, there are no

policies on providing allowances for uncollectible accounts and write off of bad debts.


4

(iv) Monitoring and Reporting. The system does not provide, for the monitoring of customer

accounts and is not able to generate important summary reports like billing summaries,

water sales reports, accounts receivables balance, status of service connections, collection

performance reports and others that are necessary for planning and control. The system

because of its limited features will not be able to support future growth in services.

(v) It is planned that a computerized billing and collection system will be developed The PPTA

assisted KWASA in drafting terms of reference (TOR) for a service provider, discussing with

potential service providers, preparing relevant contracts, and securing financing from ADB.

The TOR requires the provider to develop the software, install the program, provide

training, and ensure that the initial bills are generated.

(d) Inventory Management and Procurement

(i) The stores (inventory) are still maintained centrally in KWASA although KWASA does not

have sufficient space with which to store these stocks.

(ii) KWASA received list of inventories from KCC which as of June 2009 amounted to some Taka

702,000 but to date KWASA has not had the opportunity to verify the existence of these

inventories as well as inventories of purchased items on stock. There are no stock cards

maintained for individual inventory items.

(iii) The inventory system currently in operation is not adequate. KWASA maintains inventory

registers containing quantities received and issued. KWASA finds it difficult to maintain the

registers manually. And since summary totals are not also determined, there is no way to

check whether the information in the registers is correct.

(iv) There is lack of policies on inventory, such as minimum stock levels, valuation of obsolete

items, etc.

(v) All purchases are approved by the MD up to Tk 14999 beyond which a Purchase Committee

evaluates and approves purchases.

(e) Fixed Assets

(i) There are no policies for asset requisitioning, transfer, disposal, depreciation and

retirement. There is no system on fixed asset management

(ii) There is no fixed assets register

(iii) A listing of assets that were turned-over during the establishment of KWASA is available.

However, the amounts reported have not yet been verified as to the correctness of the

values of the assets. Individual property cards have yet to be set up.

(iv) Assets reported in the listing of assets are not properly classified and no depreciation is

computed and recognized.

(v) There is a need to conduct a physical inventory to verify existence of the assets. If funds will

allow, an asset condition survey should also be conducted to establish sufficient information

on the assets and which will be useful later on for asset management planning.

See Appendix 5 for detailed assessment and action plan for existing systems.


5

(f). Financial Management Assessment Questionnaire (FMAQ) – see Appendix 6.

The FMAQ prepared during the ADB SSTA and updated during the JICA studies, was further updated in

the current PPTA. No substantial improvements have been noted in financial management systems.

This is expected to happen only after the accounting and billing and collection systems have been

implemented.

3. Financial Management practices

The financial concerns of KWASA are currently focused on the running of the accounting system on a

cash basis and a simplified billing system based on flat rate billings. Comprehensive financial

management concepts practiced by more advanced water utilities still need to be introduced to KWASA.

These include concepts on:

• Cost Recovery

• Tariff Structuring

• Revenue Management

• Collection Enforcement

• Cost Analysis and Control

• Financial Reporting, Financial Statement Interpretation and Analysis

• Planning and Budgeting

• Business Planning/ Financial Modelling

B. Financial Management Strengthening Program

The financial management strengthening program addresses each of the areas assessed in the previous

section on the financial management assessment.

1. Organization and Staffing

As proposed in the business plan, a Phase 1 organisation will come into effect at the start of FY 2013/14.

At this time a Commercial Directorate, reporting to a DMD, will be established. This will be the first step

in establishing a more customer focused delivery mechanism. The Commercial Directorate will have

responsibility for customer service and customer accounts, thereby separating these responsibilities

from their current position under the DMD Finance and Administration. For operational purposes

KWASA will function as 2 zones controlled from the centre of the organization. To support the MD

function a number of functional teams will be introduced to cover corporate planning, internal audit,

MIS/IT and legal activities. The total staff requirement for this organization structure is 426 of which 98

will be under the DMD Customer Service and 72 will be under the DMD Finance and Administration.

There will also be 4 staff in the Internal Control Office under the Managing Directors Office.

Phase 2 organisation structures will be set in place from commissioning of the newly planned SWTP and

distribution storage zones in 2017. This maintains the previously established three directorate structure;

however the Commercial Directorate is re-focused on whole cycle business delivery. This organization

will have a total staff complement of 502 of which 73 are under the office of the DMD Finance and

Administration and 215 will be under the DMD Customer Service including the staffing needs for 5

service delivery zones.


6

A Capacity Building Program is being proposed as discussed in Chapter II. A major focus of the program

is in the area of financial management. Under the Long Term Capacity Building Program for Financial

Management, a continuous and progressive Capacity Building Program is being implemented and

proposed from 2010 up to 2017. This covers assistance provided under the current PPTA, the proposed

bridging TA and the loan implementation assistance. Based on the program, there will be a three

pronged approach to capacity building program, namely through training, development of manuals and

consultancy assistance.

Training comprises technical skills training and computer skills training. This can be done through

• in house training with the help of consultants or other short term trainors conducting workshops

or seminars for the KWASA staff. This is the mode for most of the suggested areas. In fact, this

has already started with training provided by the PPTA consultants.

• Obtaining course degrees and/or short courses in universities or other service providers. This is

appropriate for obtaining accounting degrees as well as taking short term computer courses

All staff members need some basic and advance training in computer skills. There are two ways to

provide this namely through (i) the hiring of a trainor and providing the training in house or (ii) getting

the staff to enrol in computer courses. One of the deliverables of the PPTA is the Business Plan which

includes a financial model. It is important for KWASA to eventually be able to use the financial model

themselves to help them update and develop new strategies in the years to come. This can only be

done by staff that has advanced training and experience with the use of excel. It is proposed that the

Accounts officer and at least one other staff, be provided with basic and advanced training in the use of

excel. Introduction to the model is being done under the current PPTA but training in the use of the

model should be continued by the succeeding bridging TA consultants as well as the loan

implementation consultants.

Development of Manuals. To accelerate capacity building to keep up with the immediate needs of

KWASA, it is further proposed that KWASA embark on the development of all required accounting and

commercial systems. There are 10 key systems and six of these are proposed to be computerized

namely General Accounting, Billing, Meter Reading, Fixed Assets, Inventory and Payroll. Once these

computerized systems are developed, the contractor will also train the users and provide them manuals

to guide them in operating the computerized systems.

It is proposed that policy and procedures manuals be prepared for the other manual based systems such

as Budgeting, Procurement, Project Accounting and Business Planning. The manuals will be used both as

a training tool and a guide in actual operations.


7

Table 1. Capacity Building on Financial Management

Under the Short Term Training Plan for Financial Management. The training component has already

started with training provided by the PPTA consultants in the areas of accounting and financial

management. Table 2 shows the training conducted and to be conducted by the PPTA consultants in the

coming months. Training has been provided in the form of

• formal workshops. These are seminar/workshops usually covering more general topics for

KWASA. A total of two formal workshops were conducted during the PPTA

• informal sessions on specific topics which were conducted in the accounting room with the

participation of accounting, stores and revenue section staff. A total of eleven informal training

sessions will be conducted

• coaching sessions. These sessions provide on the job training for accounting staff in areas

where they need assistance and are provided whenever needed.

2010 2011 2012 2013 2014 2015 2016 2017

PPTA

PART I - TRAINING

A Techinical Skills Training

Accounting

Accounting Concepts and Practice x

Financial Management Concepts

Cost Recovery and Tariffs x

Planning and Budgeting x x

Business Planning x x x x x x x x

Financial Modelling x x x x x x x x

Meter Reading x x x

B Computer Skills

Basic Skills

Word x

Excel x

Advanced Skills

Excel x

PART II - SYSTEM DEVELOPMENT MANUALS

Development of Manuals

Manual Systems

Budgeting x x

Procurement x x

Project Accounting x x

Business Planning x x

Computerized Systems

General Accounting x x

Billing x x

Meter Reading x x

Fixed Assets x x

Inventory x x

Payroll x x

Loan ImplementationBridging TA

Beyond

2017


8

Date Time Topic Speaker

2011

13 January

16 January

18 January

20 January

25January

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

Books of Accounts and Forms required for

KWASA.

Other Records and Registers required for

keeping accounts of KWASA.

Introduction to relevant Vouchers and

Documents required in preparation of

accounts.

Preparation of Receipt and Payments Vouchers

and Recording.

Debit Voucher and Credit Voucher Journal

Voucher

Types of Bank Accounts and their control.

Collections of Bills through Banks.

Bank reconciliation Statement.

Preparation of Double column Cash book &

Petty Cash Book, Imprest System of Petty Cash

Book.

Posting of figures from Cash Book to General

and Subsidiary Ledgers.

Writing and Balancing of General Ledger

General Ledger and Trial Balance.

Writing and Balancing of Subsidiary Ledgers.

Types of Adjustment Entries.

Adjustment through Journal Book

Adjustment through Journal Voucher.

Adjustment of Advances to staff, contractors,

suppliers etc.

Types of Trial Balance.

Preparation of different Types of Trial Balance.

Preparation of Income Statement.

Items of Assets and Liabilities.

Preparation of Balance Sheet and related

schedule of outstanding assets & liabilities

ALL Classes will be

taken by Prof. Dr.

Md. Kayemuddin


9


26

January

10-11

11-12

12-1.00pm

2.00-3.00

3.00-4.00

4.00-5.00

schedule.

Budget –Physical Targets in the Budget.

Resource of Budget.

Utilization of Budgeted Resources.

Preparation of Budget and Budget Variance

report.

Accounting Ratio.

Preparation of break-even and their uses.

Fund Flow, Cash planning & Budgeting.

Business Plan and Improving Financial

Management System.

2. Systems and controls

a) Computer Based systems

Ongoing Computerization Efforts

The most urgent financial management activity is the implementation of the computerized general

accounting system and billing and collection system.

(i) Computerized accounting system

Coverage. The computerized accounting system covers only the general accounting system.

Status. Under the previous ADB SSTA, the Hoda Vasi consultants developed a computerized accounting

system and prepared 4 manuals in August 2009 covering the Accounts Manual, Inventory, HRM and

Payroll Manual and the Training Manual. It appears there are two problems that constrain

implementation of the accounting system:

· The software problems have not been resolved. The system has been tested by

an independent source who believes the system is usable and is prepared to

support the training of KWASA staff in its use.

· Lack of accounting knowledge and computer skills as there is limited relevant

education and experience within the accounting staff. An Accounts Officer was

recently hired who will now lead the effort to set the accounting system in

place.


10

Action taken under the PPTA. The PPTA assisted KWASA in drafting terms of reference (TOR) for a

service provider, discussing with potential service providers and preparing relevant contracts, and

securing financing from ADB. The TOR requires the provider to resolve the software problems

encountered in the Hoda Vasi accounting program, provide training, and ensure that the initial FY 2011

financial reports are generated.

As of end of November, the status of this activity is that a provider for the training has been identified,

discussions are ongoing with ADB as to how the implementation can be funded in compliance with

appropriate ADB regulations for this type of procurement. It is expected that the computerized system

will be fully operational and run by KWASA staff at the start of FY 2012.

(ii) Computerized billing system

Coverage. The computerized billing system includes (i) billing of customers, (ii) recording of collections,

and (iii) creation, updating and maintenance of customer accounts.

Action taken under the PPTA. The PPTA assisted KWASA in drafting terms of reference (TOR) for a

service provider, discussing with potential service providers and preparing relevant contracts, securing

financing from ADB. The TOR requires the provider to develop the software, install the program, provide

training, and ensure maintenance for a period of four months.

As of end of November, the status of this activity is that a detailed proposal has been submitted to ADB

for their consideration by the supplier - this will be reviewed in December and clarification of

procurement mechanism will be made by ADB. It is expected that the computerized system will be fully

operational and run by KWASA staff at the start of FY 2012.

Future computerization

Four other areas are proposed to be computerized in the coming years namely Inventory, HRM and

Payroll, Meter Reading and Fixed Assets.

Meter reading. Billing based on volume consumed which will be metered is planned to commence 2017

and it is expected that by 2017 all connections will be metered. It becomes imperative then, that prior to

2017 preparations are made for installation of connections and meters as well as development of a

systems for Meter Reading. It is planned that meter reading will be done in-house with IT handheld

units data on these devices will be uploaded to the computerized billing system which is expected to be

fully operational by 2017. A provision for automated meter reading is thus provided in the IT plan.

Fixed Asset Management System. Computerization of the creation, updating and maintenance of the

fixed asset register will facilitate KWASA’s asset management of its assets the growth of which will be

substantial in the coming years (from Tk 496 million to Tk 23 billion).

See table 2 for computerization plan.


11

Table 2. Computerization Plan

b) Manual Based Systems

Other key systems do not need to be computerized. However it is important that policies and standard

procedures also be developed for these systems and these are documented in manuals for which

provides a training tool and guide for operations of KWASA. Table ___ shows the systems for which

manuals are proposed to be developed.

2011 2012 2013 2014 2015 2016 2017

PPTABridging

TA

A Package 1 - Billing System

1 Billing

2 Collection

3 Accounts Ledgers

B Package 2 - Accounting System

1 General Accounting

C Package 3 - Inventory and Payroll

2 Inventory

3 HRM and Payroll

D Package 4 - Meter Reading

E Package 5- Fixed Assets

Legend:

Regular recording and reporting operations by KWASA

Beyond

2017Loan Implementation

Bidding/Selection of Service Provider

Implementation (Program Development/Testing/Encoding of Beginning Balances/ Training/ Development

of Users Manual)


12

2010 2011 2012 2013 2014 2015 2016 2017

PPTA

1 Budgeting and Planning

Implement budget system based on KWASA practice

Prepare annual income budget for FY 2012 x x

Prepare annual Cash Budget for FY 2012 x x

Prepare Manual for comprehensive budgeting system x

Implement comprehensive budgeting system x x

2 Cash Operations

x x

Implement key cash operations

Recording and reporting of cash receipts x x

Recording and reporting of cash disbursementsx x

Preparing Bank reconciliation x x

Assess need for petty cash operation x x

Prepare Manual for comprehensive cash operations system x

Implement comprehensive cash operation system x x

3 Procurement

Prepare Manual for procurement system x

4 Project Accounting

Prepare Manual for project accounting system x

Implement project accounting system x x

5 Business Planning

Study 2010 Business Plan prepared by PPTA consultantsx x

Monitor targets in 2010 Business Plan x x x x x x x x

x x x x x x x

Implement business planning system x x x x x x x

Beyond

2017Bridging TA Loan Implementation

Develop policies related to cash operations

including policy related to approval limits

Prepare Manual for business planning

including update of the financial model


13

3. Revenue Management

A key feature of the KWASA Business Plan are the implementation of a volumetric tariff in FY 2017 and

the implementation of a revenue enhancement program comprising five major programs in the coming

years, as shown in Table 3:

Present

Target

Numbers Fiscal Year

a Increase in number of households and

connections from 2011 to 2016 as more

volume of water is made available from

ongoing and future projects.

Domestic Connections 26804 2016/2017

Non Domestic Connections 3811 2016/2017

b Registration of all illegal connections 2206 domestic

connections (6,508

households) and

138 non domestic

users using illegal

connections

all registered 2011/2012

c Conversion billing per household

Domestic Households 11853 additional

21,278

2011/2012

d Metering of all connections by 2017 100% metered 2016/2017

e Charging owners of private deep tubewells an

annual flat fee

17,799 private

DTWs billed

2016/2017

With the plan to implement a volumetric tariff by FY 2017 and the move towards cost recovery tariffs,

there is a need in the immediate future, to review the existing tariff setting policies and procedures and

cost recovery framework in KWASA. An appropriate tariff and cost recovery framework including the

tariff structure will be proposed under the Bridging TA and implemented during the loan

implementation period.

4. Financial Management Policies and Practices

The financial activities of KWASA are currently focused on the running of the accounting system which is

currently on a cash basis, and a simplified billing system, which is based on flat rate billings.

Comprehensive financial management concepts practiced by more advanced water utilities still need to

be introduced to KWASA in the coming years. These include concepts on:


14

• Cost Recovery

• Tariff Structuring

• Revenue Management

• Collection Enforcement

• Cost Analysis and Control

• Financial Reporting (as part of the MIS), Financial Statement Interpretation and Analysis

• Planning and Budgeting

• Business Planning/ Financial Modelling

The proposed consultancy assistance provided as part of the Bridging TA and loan implementation,

includes assistance to KWASA in policy development and implementation covering the above areas. By

the start of the loan implementation, it is expected that sufficient capacity would have been developed

by the staff to fully appreciate and actively participate in putting these concepts into practice.

List of Appendices for the Financial management Assessment Report

Appendix 1 – Preliminary 2009 and 2010 Financial Statements (same as Appendix 2 of the Business Plan)

Appendix 2 – List of Assumptions (same as Appendix 3 of the Business Plan)

Appendix 3 – Financial Projections for the Base Case (same as Appendix 4 of the Business Plan)

Appendix 4 – Scenario Analysis (same as Appendix 5 of the Business Plan)

Appendix 5 - Financial Management Systems Findings and Action Plan (See below)

Appendix 6 – Financial Management Assessment Questionnaire (See below)


15

Appendix 5

FINANCIAL MANAGEMENT STRENGTHENING PROGRAM

Findings Proposed Action Plan

Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

A. GENERAL ACCOUNTING

1. Financial Statements

a. Financial Statements (Income Statement,

Balance Sheet, and Cash Flow Statements) are

not prepared. KWASA prepares only a Cash

Collection Report and Cash Expenditures

Report. These do not give a complete picture

of the financial operations of KWASA.

The main reasons for this are lack of staff

capacity and systems.

KWASA should prepare the Income Statement,

Balance Sheet, and Cash Flow Statements

preferably every month and these should be

provided to management for review and action. A

computerized system will be finalized and

implemented to produce monthly financial

statements. Training will also be provided to the

staff so they could operate the system.

As of end of November 2010, a provider for

finalization of the system and training has been

identified; discussions are ongoing with ADB as to

how the implementation can be funded in

compliance with appropriate ADB regulations for

this type of procurement. It is expected that the

computerized system will be fully operational and

X X

X

b. There is lack of computer skills and lack of

capacity in handling accounting and financial

management responsibilities.

The proposed Capacity Building program includes

substantial training for the accounting and

revenue staff.

X X X X X

c. There is presently no Accounting Manual and

no Chart of Accounts. Previously Hoda Vasi

Chowdhury &Co prepared an Accounts Manual

and Chart of Accounts. However, these were

not used since the software they prepared did

not successfully run.

The computerized system will provide an

accounting manual and chart of accounts.

X


16


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

2. Double Entry Accounting System, Trial

Balance

a. At present, a single entry bookkeeping

system is being used and as a result only cash

transactions are recorded. This does not give

a complete picture of accounts since it does

not recognize income receivables and non

cash expenses.

A double entry bookkeeping system should be

implemented.

X X

3. General Ledgers

No general/control ledger is maintained. General ledgers should be maintained. X

4 Subsidiary Ledgers

a. KWASA maintains only the following ledgers

and registers and even these are not properly

maintained:

• Consumer Ledger

• Checque Issue Register

• Inventory Register

• Line Registers (New Line Connection

Register and Line Disconnection Register)

• Salary Register, Provident Fund Register

• Others (Stationery Register, Attendance

Register, )

But these subsidiary ledgers are not maintained

properly and totals are not obtained as a control

for the accuracy of the individual account balances.

Subsidiary ledgers should be maintained and

totals checked against the general ledger

balances.

X

5.Book of Original Entry


17


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

Journal voucher and journal proper are not

prepared for the opening entries, adjusting entries

and transfer entries

KWASA should prepare journal voucher and

journal proper to make opening entries, adjusting

entries and transfer entries.

X

6. Supporting Documents (preparation,

approval, filing)

Preparation, approval and filing of supporting

documents (Official receipts and disbursement

vouchers) are done properly.

X

7. Journal Vouchers

Journal Vouchers are not prepared for the

adjusting entries, transfer entries , etc.,

Journal vouchers will be prepared when the

double entry system will be introduced.

X

B. CASH OPERATIONS

1.Petty Cash

KWASA does not currently see the need for petty

cash. For the moment, emergency purchases are

handled by the employees advancing the amounts

needed.

In the future, when volume of operations have

increased, it is likely that there will be a need for

petty cash.

We propose that petty cash be maintained on

impress system whereby an impress amount will

be given as an advance to the petty cashier. The

petty cashier will disburse for the petty expenses

for the month. When the fund is used up, the

supporting documents for the disbursed amount

will be submitted to the head cashier for

reimbursement.

X X X


18


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

It is proposed that KWASA evaluate the need for

petty cash and prepare an appropriate policy

operationalize the fund.

2.Cash Receipts

The current procedure for the collection of water

sales and other receipts is fairly good. After

collection, the collectors hand over the collected

cash to the cashier who prepares a “pay in slip”

and deposits these collections. These are then

recorded in the Daily Cash Collection Report.

There is very limited amount of receipts that are

handled though as most of the water sales are

directly paid to the account of the KWASA in the 9

branches of Janota Bank.

3.Cash in Bank

Bank statements are not collected by the KWASA

at the end of each month. KWASA also does not

prepare Bank Reconciliation Statements to check

the balance of the bank statement with the

balance of the cash book.

Bank Reconciliation Register should be

maintained immediately. Training will be needed

for the accounting staff members on the

preparation of Bank Reconciliation Statement.

Bank Reconciliation Register will be designed. In

this connection bank statement should be

collected from the banks at the end of each

month.

X

4.Cash Disbursements

(a)There are no clear policies on disbursements to

ensure such as policies delineating approval levels.

All disbursements, regardless of amount are

approved by the Managing Director.

(i) Considering the expected increase in volume

of disbursements in the coming years, policies

on approval levels need to be developed so as

not to overburden the MD with administrative

tasks.

X


19


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

(b) Debit vouchers are now prepared to authorize

disbursements. These are supported by a piece of

paper which is prepared to note the need for

payment.

(c )Existing systems on disbursements provide for

most payments to be made by check. Only

employees who are in the master roll are paid in

cash.

C. BILLING SYSTEM

1.Billing on flat rate per connection

Bills are prepared on flat rates per connection. Bills

are prepared manually and given to the

consumers.

Instead of flat rate for different types of

consumers, different rates should be charged

for different types of consumers.

X

2. Manual billing system Computerized system

(a) There is a simple billing system in place in

KWASA that is appropriate to the current needs

of KWASA with its unmetered connections as

follows:

• KWASA issues a demand note at the

beginning of the FY to its customers. This

demand note contains the payment for 1

year which the customer can pay either

through the bank, through the field

collector or in the office. If a customer

chooses to pay through the bank, he has to

get a receipt book for 25 taka, which

It is planned that a computerized billing and

collection system will be developed. The PPTA

assisted KWASA in drafting terms of reference

(TOR) for a service provider, discussing with

potential service providers and preparing

relevant contracts, securing financing from ADB.

The TOR requires the provider to develop the

software, install the program, provide training,

and ensure maintenance for a period of four

months.

As of end of November, a detailed proposal has

been submitted to ADB for their consideration by

the supplier. This will be reviewed in December

X X X


20


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

consists of 3 parts; one for the bank, one

for KWASA and one for the customer.

Another check receipt is issued for field

collection.

• There are at least 14 employees who

handle billing and collection which includes

1 cashier, 10 doing field collection, and 43

persons doing billing and maintenance of

customer records. KWASA issues a two-

part receipt with one part given to the

customer and the other part, retained in

the office and is in the recorded in the

customer ledger card.

• A receipt book for free water is also

maintained. It is the policy of KWASA to

provide free water to the mayor and police

officers from bowsers; they pay only the

petrol bill.

and clarification of procurement mechanism will

be made by ADB. It is expected that the

computerized system will be fully operational and

run by KWASA staff at the start of FY 2012.

The computerized billing and collection system

will correct all the system deficiencies previously

noted.

(b) A Consumer Ledger is maintained but the

total of the consumer account balances is not

computed as such, it is difficult to determine the

accounts receivables balance. The accounting staff

find it difficult to manually compute the total of

the balances of the 12,000 plus customers.

Eventually, implementation of a computerized

billing and collection system will result in a well

maintained Customer Ledgers. In the meantime,

KWASA needs to start cleaning up and updating

the Customer Ledger so that it is reading for

encoding of the beginning balances once the

billing and collection system is ready for

implementation.

X X X

(e) Monitoring and Reporting. The system does

not provide, however, for the monitoring of

customer accounts and is not able to generate

important summary reports like billing summaries,

water sales reports, accounts receivables balance,

Implementation of a computerized billing and

collection system.

X X X


21


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

status of service connections, collection

performance reports and others that are

necessary for planning and control. The system

because of its limited features will not be able to

support future growth in services.

D. COLLECTION SYSTEM

1. Collection by bank

Now collection is done by three ways, namely

a) collection by bank

b) collection by field collectors

c) collection in the KWASA head office

There is currently no system of providing discounts

for early payments and imposing penalties on

delayed payments.

KWASA should study the feasibility of providing a

system of discounts and penalties as part of its

collection enforcement program.

X x x x X

2. Disconnection Policy

(a )The collection effort is difficult in the absence

of a well maintained Customer Ledger which is also

the basis for the preparation of the Aging of

accounts.

The Customer Ledger should be maintained

properly and resources provided (computers and

staff training) to allow revenue staff to compute

the totals of customer accounts. Eventually, the

computerized billing and collection system will

correct system deficiencies.

X X X X X

(b) The WASA’s disconnection policy is as follows.

A red notice is given to the consumer whose

outstanding bills exceed Tk.5000. On this basis, a

KWASA team goes on door collection drive door

and requests the party with arrears to pay the bill.

If the party does not pay the bills after receiving

the red notice and verbal request, then his /her

Implementation of a computerized billing and

collection system.


22


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

connection is disconnected.

Effective implementation of the disconnection

policy depends to a large extent on well

maintained Customer Ledgers.

3. Aging of receivables

Aging of receivables is not prepared because of the

absence of a well maintained Customer Ledger.

Aging should be done which can be the basis for

developing a policy on writing off of accounts and

providing an allowance for bad Debts.

• Unrecoverable receivables from KCC

• Consumers who are not available now or who

have shifted to an unknown place

• Outstanding receivables of more than 10

years

X X X X X

4. Allowance for Bad Debts

KWASA has no policy for writing off bad debt Develop policies on providing allowances for

uncollectible accounts. KWASA needs to develop

a policy for setting up an allowance for bad debts

and discuss this with the auditor. This can be set

up based on the aging of receivables.

KWASA can also consider DWASA’s policy which

is to provide 5% of water sales as an allowance

for bad debts in setting up the policy.

X

5.Write Off of Bad Debts

Based on the aging of accounts, a policy on

writing off of accounts can be developed and

discussed with the auditor. The policy can

X X X


23


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

consider the following:

• Unrecoverable receivables from KCC

• Consumers who are not available now or who

have shifted to an unknown place

• Outstanding receivables of more than 10

years

E. FIXED ASSETS

There are no policies for asset requisitioning,

transfer, disposal, depreciation and retirement.

There is no system on fixed asset management.

KWASA needs to develop appropriate policies on

asset requisitioning, transfer, disposal,

depreciation and retirement. There is no system

on fixed asset management

1. Physical Count

A listing of assets that were turned-over during the

establishment of KWASA is available. However, the

amounts reported have not yet been verified as to

the correctness of the values of the assets.

Individual property cards have yet to be set up.

Also, the assets reported in the listing of assets are

not properly classified and no depreciation is

computed and recognized.

External Auditor is expected to conduct physical

verification of fixed assets. Subsequently staff

members should conduct the annual

verification.If funds will allow, an asset condition

survey should also be conducted to establish

sufficient information on the assets and which

will be useful later on for asset management

planning.

X x x X

2. Assets Register

There is no fixed assets register to keep record of

fixed assets

Fixed assets register will be computerized. Staff

members will be developed through training.

Implementation with the help of software

consultant.

X

3. Purchasing of Assets


24


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

At present there is no policy on purchasing and

procurement of fixed assets

Appropriate policies need to be developed. X x

4. Depreciation

Depreciation has not yet been taken into account. Depreciation should be charged at prescribed

rate against each fixed asset. External auditor will

help in this regard.

X X X X X

5. Safeguarding fixed assets

Responsibilities have not been allocated among the

staff members to safe guard fixed assets. Security

arrangement is inadequate to safe guard the fixed

assets.

Responsibilities are to be allocated among staff

members to safeguard and protect the fixed

assets. Proper security is to be provided to

protect the fixed assets.

X

6. Sale and disposition

Rules for sales and disposition of fixed assets are

lacking now

Rules for sale and disposition should be framed

immediately

X

7. Insurance

Valuable fixed assets are not insured All fixed assets should be insured X

8. Project Accounting -

At present no one handles project accounting.

KWASA does not record any construction in

progress.

In near future there will be a need for introducing

project accounting to the accounting unit so that

the proper construction in progress accounts can

be reflected in the financial reports. The Accounts

Officer needs to be given training to equip her to

handle Project Accounting in the future.

X

F. INVENTORY MANAGEMENT

1. Warehousing

The stores (inventory) are still maintained centrally

in KWASA although KWASA does not have

sufficient space with which to store these stocks.

KWASA needs to study how to address these

warehousing space issues.

X X

2. Inventory Policies


25


Implementation

2010/

2011

2011/

2012

2012/

2013

2013/

2014

2014/

2015

There is a lack of policies on inventory, such as

minimum stock levels, valuation of obsolete items,

disposal, etc.

Moreover, all purchases are approved by the MD

up to Tk 14999 beyond which a Purchase

Committee evaluates and approves purchases.

Appropriate policies need to be developed in

these areas including policies on approval levels

for purchases.

X X

3. Inventory System

The existing inventory system is not adequate.

There are simple systems whereby requisition slips

are the basis for release of inventory items.

KWASA also maintains inventory registers

containing quantities received and issued.

However, KWASA finds it difficult to properly

maintain the registers manually. And since

summary totals are not also determined, there is

no way to check whether the information in the

registers is correct.

Development of a computerized inventory

system is proposed in the MIS and IT Plan to

resolve these problems.

X X X X X

4. Physical Verification

KWASA received list of inventories from KCC which

as of June 2009 amounted to some Taka 702,000

but to date KWASA has not had the opportunity to

verify the existence of these inventories as well as

inventories of purchased items on stock. There are

no stock cards maintained for individual inventory

items.

External Auditor will conduct physical verification

of all stores. Subsequently, at the end of each

year KWASA should conduct physical verification

of all inventories.

X X x X X


26

Appendix 6

Khulna Water Supply and Sewerage Authority

Financial Management Assessment Questionnaire

Topic Response Remarks

1. Implementing Agency

1.1 What is the entity’s legal

status / registration? Khulna WASA was established

under Ordinance No. Gazette No.

(Dhaka, 25 February 2008; S.R.O

no-43-law/2008- law/division pass-

2/K 1/2007) as an autonomous

entity in charge of water supply and

sewerage services in Khulna. Under

the ordinance, the assets and

liabilities of the then waterworks

department were transferred to the

new organization including all the

rights and obligations of a WASA

under the WASA Act of 1996.

Khulna WASA is in very early stage of development.

It is still in the process of staffing its organization

and setting up required systems and procedures.

1.2 Has the entity implemented

an externally-financed project

in the past (if so, please

provide details)?

No, Khulna WASA has just recently

been established.

There are proposed projects already, the JICA and

ADB projects among others.

1.3 What are the statutory

reporting requirements for

the entity?

These reporting requirements are

not yet well defined, except those

contained in the KWASA Act.

1.4 Is the governing body for the

project independent?

The Board is the Governing Body of

KWASA. In the spirit of the 1996 Act

the Board should perform its

functions in full autonomy.

There is no basis yet to comment on this as the

Board has also been recently established.

1.5 Is the organizational structure

appropriate for the needs of

the project?

Several key positions such as the

Accounts Officer and Revenue

Officers have been recently

recruited.

Phase 2(FY 2013/2014) organization structure

creating a separate department handling customer

service and Phase 3 (FY 2016/ 2017) organization

structure introducing a zonal operation system have

both been proposed in the Business Plan.


27


2. Funds Flow Arrangements

2.1 Describe (proposed) project

funds flow arrangements,

including a chart and

explanation of the flow of

funds from ADB, government

and other financiers.

The funds will be lent to GoB which

in turn will re-lend them to KWASA.

Proposed re-lending terms include:

- Interest rate 2%

− 30 years repayment

period including grace

period of 8 years.

- 70% Loan

- 30% Grant

JICA will also lend USD 100 Million

for water supply development

2.2 Are the (proposed)

arrangements to transfer the

proceeds of the loan (from

the government / Finance

Ministry) to the entity

satisfactory?

The current system of transfer of

funds is from the Ministry of Local

Government and Rural

Development to KWASA.

KWASA receives funds from the national govt.

through the MLGRD for its on-going project which is

a grant and for its regular subsidies.

2.3 What have been the major

problems in the past in

receipt of funds by the entity?

Nothing to report on this yet.

2.4 In which bank will the Imprest

Account be opened?

Most probably Janata Bank, Ltd. in

Khulna

This is a state owned commercial bank

2.5 Does the (proposed) project

implementing unit (PIU) have

experience in the

management of

disbursements from ADB?

No experience yet.

2.6 Does the entity have/need a

capacity to manage foreign

exchange risks?

There is no need to develop the

capacity to manage foreign

exchange risks, as the relending will

be most likely in local currency.

2.7 How are the counterpart

funds accessed?

ADB and GOB funds will be

allocated in the Annual

Development Program (ADP) with

regards to the budget estimates

prepared by the PMU based on the

annual work plan of the project.


28


2.8 How are payments made

from the counterpart funds?

The Project Director (PD) of PMU

who is the authorized signatory to

withdraw ADB loan proceeds is also

the Drawing and Disbursement

Officer (DDO) to draw the

Government funds. GOB funds

allocated in the ADP will be

released quarterly and the PMU will

present the bills to the Chief

Accounts Officer (CAO) for actual

disbursement.

2.9 If part of the project is

implemented by communities

or NGOs, does the PIU have

the necessary reporting and

monitoring features built into

its systems to track the use of

project proceeds by such

agencies?

No.

2.10 Are the beneficiaries required

to contribute to project

costs? If beneficiaries have an

option to contribute in kind

(in the form of labor), are

proper guidelines formulated

to record and value the labor

contribution?

N/A

3. Staffing

3.1 What is the organizational

structure of the accounting

department? Attach an

organization chart.

Under the approved organization

structure, the Financial Unit (A/C

and Budget) is under the

Commercial Department.

Please refer to the organization and composition of

the finance unit in Chapter IV of the main report.

3.2 Identify the (proposed)

accounts staff, including job

title, responsibilities,

educational background and

professional experience.

Attach job descriptions and

CVs of key accounting staff.

Please refer to Appendix for

accounting staff qualifications

3.3 Is the project finance and

accounting function staffed

adequately?

No, these divisions are yet to be

established


29


3.4 Is the finance and accounts

staff adequately qualified and

experienced?

Not yet. Recruitment is still in

process to complete the staff

complement for the accounting and

revenue sections.

3.5 Is the project accounts and

finance staff trained in ADB

procedures?

They are not yet trained on ADB

procedures.

Some of the staff are qualified and can be trained

on ADB procedures

3.6 What is the duration of the

contract with the finance and

accounts staff?

7 out of the 15 staff finance and

commercial staff are on contractual

basis with annual renewable

contracts and have been with

KWASA (KCC) for a long time

already

3.7 Indicate key positions not

contracted yet, and the

estimated date of

appointment.

Key positions already contracted. In

the coming months, KWASA plans

to hire an accountant, revenue

inspectors (2) and assistant

accountants (2).

3.8 Does the project have written

position descriptions that

clearly define duties,

responsibilities, lines of

supervision, and limits of

authority for all of the

officers, managers, and staff?

No

3.9 At what frequency are

personnel transferred?

There is very little transfer of

personnel as most staff have been

on the job for quite some time,

even the casual/temporary

employees.

Those who are deputed from other govt. agencies

(like the posts of the DMD for Finance and the

Secretary) have indefinite period of assignments

and may or not stay for a long period with KWASA.

3.10 What is training policy for the

finance and accounting staff?

Not existing


30


4. Accounting Policies and

Procedures

4.1 Does the entity have an

accounting system that allows

for the proper recording of

project financial transactions,

including the allocation of

expenditures in accordance

with the respective

components, disbursement

categories, and sources of

funds? Will the project use

the entity accounting system?

No, the current system is cash

based, using a single entry method.

Contracts for software

development for the general

accounting and billing and

collection systems are currently

being negotiated. Eventually, the

project will be using the proper

entity accounting system.

4.2 Are controls in place

concerning the preparation

and approval of transactions,

ensuring that all transactions

are correctly made and

adequately explained?

Not sufficient.

4.3 Is the chart of accounts

adequate to properly account

for and report on project

activities and disbursement

categories?

No chart of accounts. Contracts for software development for the general

accounting system is currently being negotiated.

This includes the development of a chart of

accounts.

4.4 Are cost allocations to the

various funding sources made

accurately and in accordance

with established agreements?

Not yet applicable

4.5 Are the General Ledger and

subsidiary ledgers reconciled

and in balance?

Since the system is still on single-

entry; this is not yet applicable.

There are however subsidiary

ledgers particularly for accounts

receivable but there is no general

ledger balance

4.6 Are all accounting and

supporting documents

retained on a permanent

basis in a defined system that

allows authorized users easy

access?

Per GOB regulations there is no

prescribed period for disposal of

accounting and supporting

documents. Everything is retained.

i Segregation of Duties


31


4.7 Are the following functional

responsibilities performed by

different units or persons: (i)

authorization to execute a

transaction; (ii) recording of

the transaction; and (iii)

custody of assets involved in

the transaction?

Yes, to a limited extent, since the

staff complement is not yet

complete

4.8 Are the functions of ordering,

receiving, accounting for, and

paying for goods and services

appropriately segregated?

Not yet implemented

4.9 Are bank reconciliations

prepared by someone other

than those who make or

approve payments?

No. PPTA consultants are providing

on the job training on the

preparation of bank reconciliation

statements.

ii Budgeting System

4.10 Do budgets include physical

and financial targets?

They have annual budgets but

these are not tied to physical

targets.

4.11 Are budgets prepared for all

significant activities in

sufficient detail to provide a

meaningful tool with which to

monitor subsequent

performance?

They have annual budgets but do

not provide for sufficient details.

4.12 Are actual expenditures

compared to the budget with

reasonable frequency, and

explanations required for

significant variations from the

budget?

Not yet being done.

4.13 Are approvals for variations

from the budget required in

advance or after the fact?

Yes, it is required.

4.14 Who is responsible for

preparation and approval of

budgets?

The MD with support from the

DMD for Finance is responsible for

budget preparation. Approval of

the budget is by the Board of

Directors under the current set-up.


32


4.15 Are procedures in place to

plan project activities, collect

information from the units in

charge of the different

components, and prepare the

budgets?

Project activities are being done

sparingly under the Engineering

Division under the DMD for

Engineering. The systems for

planning and budgeting for various

activities are not yet in place.

4.16 Are the project plans and

budgets of project activities

realistic, based on valid

assumptions, and developed

by knowledgeable

individuals?

The existing plans and budgets (for

proposed investments) are not very

clear on the effect on the levels of

service, as in they do not indicate

details on projected production and

demand for instance.

Payments

4.17 Do invoice-processing

procedures provide for: (i)

Copies of purchase orders

and receiving reports to be

obtained directly from issuing

departments? (ii) Comparison

of invoice quantities, prices

and terms, with those

indicated on the purchase

order and with records of

goods actually received? (iii)

Comparison of invoice

quantities with those

indicated on the receiving

reports? (iv) Checking the

accuracy of calculations?

Some procedures are in place, but

they are very limited to provide

internal controls.

4.18 Are all invoices stamped PAID,

dated, reviewed and

approved, and clearly marked

for account code assignment?

Not being done.

4.19 Do controls exist for the

preparation of the payroll and

are changes to the payroll

properly authorized?

Yes

Policies And Procedures

4.20 What is the basis of

accounting (e.g., cash,

accrual)?

Cash basis


33


4.21 What accounting standards

are followed?

The following standards were used

in the initial statements prepared

by KCC and subsequent ones (for

June 2009) prepared by Hoda Vasi:

Generally Accepted Accounting

Principles (GAAP) and the

Bangladesh Accounting Standards

adopted by the Institute of

Chartered Accountants of

Bangladesh (ICAB).

4.22 Does the project have an

adequate policies and

procedures manual to guide

activities and ensure staff

accountability?

Not yet applicable.

4.23 Is the accounting policy and

procedure manual updated

for the project activities?

Not yet applicable.

4.24 Do procedures exist to ensure

that only authorized persons

can alter or establish a new

accounting principle, policy or

procedure to be used by the

entity?

No.

4.25 Are there written policies and

procedures covering all

routine financial management

and related administrative

activities?

None

4.26 Do policies and procedures

clearly define conflict of

interest and related party

transactions (real and

apparent) and provide

safeguards to protect the

organization from them?

None None

4.27 Are manuals distributed to

appropriate personnel?

No. No.

Cash and Bank

4.28 Indicate names and positions

of authorized signatories in

the bank accounts.

Abdullah Pinze (Managing Director)

and Alimuddin (Deputy Managing

Director for Administration and

Finance


34


4.29 Does the organization

maintain an adequate, up-to-

date cashbook, recording

receipts and payments?

Yes

4.30 Do controls exist for the

collection, timely deposit and

recording of receipts at each

collection location?

Yes

4.31 Are bank and cash reconciled

on a monthly basis?

No

4.32 Are all unusual items on the

bank reconciliation reviewed

and approved by a

responsible official?

Not applicable. Bank reconciliation

is not currently prepared

4.33 Are all receipts deposited on

a timely basis?

Yes

Safeguard over Assets

4.34 Is there a system of adequate

safeguards to protect assets

from fraud, waste and abuse?

None

4.35 Are subsidiary records of fixed

assets and stocks kept up to

date and reconciled with

control accounts?

Records are incomplete especially

for fixed assets and are not

reconciled with total ledger

balance.

4.36 Are there periodic physical

inventories of fixed assets and

stocks?

No.

4.37 Are assets sufficiently covered

by insurance policies?

No.

Other Offices and Implementing

Entities

4.38 Are there any other regional

offices or executing entities

participating in

implementation?

No.


35


4.39 Has the project established

controls and procedures for

flow of funds, financial

information, accountability,

and audits in relation to the

other offices or entities?

NA.

4.40 Does information among the

different

offices/implementing

agencies flow in an accurate

and timely fashion?

NA.

4.41 Are periodic reconciliations

performed among the

different

offices/implementing

agencies?

NA

Other

4.42 Has the project advised

employees, beneficiaries and

other recipients to whom to

report if they suspect fraud,

waste or misuse of project

resources or property?

Not yet applicable.

5. Internal Audit

5.1 Is there an internal audit

department in the entity?

No. No.

5.3 To whom does the internal

auditor report?

N.A.

5.4 Will the internal audit

department include the

project in its work program?

An Internal Control Unit is proposed

to be created as part of Phase 3

organization structure to be

implemented in FY 2016/2017. This

unit will perform the internal audit

function for KWASA transactions

including those pertaining to the

project.

.

5.5 Are actions taken on the

internal audit findings?

N.A.


36


6. External Audit

6.1 Is the entity financial

statement audited regularly

by an independent auditor?

Who is the auditor?

KWASA is in the process of hiring an

external auditor.

6.2 Are there any delays in audit

of the entity? When are the

audit reports issued?

Not yet applicable.

6.3 Is the audit of the entity

conducted according to the

International Standards on

Auditing?

Not yet applicable.

6.4 Were there any major

accountability issues brought

out in the audit report of the

past three years?

Not yet applicable

6.5 Will the entity auditor audit

the project accounts or will

another auditor be appointed

to audit the project financial

statements?

Not yet applicable.

6.6 Are there any

recommendations made by

the auditors in prior audit

reports or management

letters that have not yet been

implemented?

Not yet applicable.

6.7 Is the project subject to any

kind of audit from an

independent governmental

entity (e.g., the supreme

audit institution) in addition

to the external audit?

6.8 Has the project prepared

acceptable terms of reference

for an annual project audit?

Not yet


37


7. Reporting and Monitoring

7.1 Are financial statements

prepared for the entity? In

accordance with which

accounting standards?

Yes. GAAP, and Bangladesh

Accounting Standard ( BAS), see

question 4.21

7.2 Are financial statements

prepared for the

implementing unit?

Yes, initial statements being

prepared by KCC; subsequent ones

(for June 2009) were prepared by

Hoda Vasi.

7.3 What is the frequency of

preparation of financial

statements? Are the reports

prepared in a timely fashion

so as to useful to

management for decision

making?

Not yet defined.

7.4 Does the reporting system

need to be adapted to report

on the project components?

Yes

7.5 Does the reporting system

have the capacity to link the

financial information with the

project's physical progress? If

separate systems are used to

gather and compile physical

data, what controls are in

place to reduce the risk that

the physical data may not

synchronize with the financial

data?

No.

Project management guidelines will

be established to link financial

information and physical progress

of the project.

7.6 Does the project have

established financial

management reporting

responsibilities that specify

what reports are to be

prepared, what they are to

contain, and how they are to

be used?

This is to be part of the Loan

Agreement.

7.7 Are financial management

reports used by

management?

No.


38


7.8 Do the financial reports

compare actual expenditures

with budgeted and

programmed allocations?

No. the only financial statements

available were those prepared with

the aid of the consultants.

7.9 Are financial reports prepared

directly by the automated

accounting system or are they

prepared by spreadsheets or

some other means?

KWASA does not have an

automated accounting system.

Reports are prepared manually by

spreadsheets.

8. Information Systems

8.1 Is the financial management

system computerized?

No.

8.2 Can the system produce the

necessary project financial

reports?

Not Applicable

8.3 Are the staff adequately

trained to maintain the

system?

Not Applicable

8.4 Does the management

organization and processing

system safeguard the

confidentiality, integrity and

availability of the data?

Not Applicable

Appendix 9 FINANCIAL ANALYSIS OF KHULNA WASA

1

FINANCIAL ANALYSIS OF KHULNA WASA

A. Past and Current Financial Performance

Financial assessment of past and current financial performance was based on estimates of KWASA’s

results of operations for FY 2009 and FY 2010 and its financial condition as of FY 2010. Income and

balance sheet figures for FY 2009 were based on the ADB SSTA1 as well and the JICA feasibility study

2

reports. In addition to these, the consultants prepared preliminary financial reports for FY 2010 based

on available data provided by KWASA and results of the consumer survey. See Annex 2 of Appendix 6 -

Business Plan for the Preliminary Financial Statements. It is understood that the figures presented in the

Preliminary Financial Statements are indicative figures and the financial audit will provide a more sound

basis for the assessing the current and future financial viability of KWASA. KWASA is taking steps to get

the audit completed by end of FY 2010. When the audited financial reports are available, it may be

necessary to revise the assessment of KWASA’s financial performance.

Based on the preliminary financial statements, it appears that KWASA’s performance has deteriorated

from FY 2009 to FY 2010. The net loss has increased from Tk 8.5 million to Tk 50 million due to the

significant reduction in revenue and the huge increase in expenses as shown in Table 1.

Table 1. Summary Income Statement (FY 2009 to FY 2010)

There were different bases for estimation of revenues for the two years. It appears that revenue

estimates for FY 2009 were based on 15,236 registered connections while the figure for FY 2010

revenues is based on a significantly lower number of connections of 12,238 based on the survey results.

The significant increase in expenses from was also due to the following:


Inc/Dec

Income

Operating Revenues 16,444 100.0% 11,764 100.0% -28%

Non-Operating Revenues 64 0.4% 109 0.9% 70%

Total Income 16,508 100.4% 11,873 100.9% -28%

Expenses

Personnel Expenses 17,758 108.0% 36,696 311.9% 107%

Fuel and Electricity 4,659 28.3% 11,230 95.5% 141%

Chemicals 0.0% 0.0%

Repair & Maintenance 546 3.3% 5,497 46.7% 907%

Administrative and General Expenses 2,081 12.7% 8,005 68.0% 285%

Total Expenses 25,044 152.3% 61,428 522.2% 145%

Net Profit/Loss (8,536) -51.9% (49,555) -421.2% 481%

June 30, 2009 June 30, 2010

In Thousand Taka


2

• Increase in salaries and allowances due to implementation of the new pay scale as well as hiring

of additional personnel.

• Higher electricity bills due to the general increase in cost of power as well as the increase in

number of pumps from 60 in 2009 to 78 in 2010.

• KWASA undertook numerous repair and maintenance of pipelines, pump motors, vehicles,

office equipment and buildings in 2010 resulting in higher repairs costs.

Analysis of KPIs in Table 2 also show other factors leading to the lack of revenues to sustain operations.

These factors include flat rate billings instead of consumption based billings, less than 100% ratio of

connections billed due to illegal connections, around 70% of households which are not billed since

billing does not consider number of households and an 80% collection efficiency. The resulting low

revenues could only partially cover cash operating and maintenance expenses resulting in an operating

ratio of 5.17.

Table 2. KPIs

Formula FY 2011

Metered Connections 0

Total Number of Connections Connections billed 84%

No. of Connections Supplied

Households billed 37%

No. of households Supplied

Total Year-to-Date Collection 80% Total Year-to-Date Billing

Operating Expenses (excl depreciation) 4.17

Operating Revenues

B. Projected Financial Performance

The financial plan is prepared to ensure that KWASA will remain viable during the period of project

implementation up to loan repayment of the ADB/JICA loan. Financial viability is demonstrated through

the financial projections which should show sufficiency of revenues to cover O&M (excluding

depreciation) and sufficiency of cash to cover operational expenses and debt service, thereby

eliminating the need for government subsidy. The financial projections shown in this report cover up to

year 2020.

1. Major Assumptions

In order to assess future performance, during the projection period, the following basic assumptions

were used:

a. Investment and Production. The investment plan shows that KWASA will implement 5

major projects including 2 projects implemented by KCC to be turned over to KWASA upon


3

completion, 2 projects funded by GoB and the ADB/JICA project all totalling Tk 26 billion.

These projects will result in an increase in production from the current 30,100 m3/day to

162,427 m3/day in 2017. Investments in the network will reduce Non Revenue Water from

the current estimated level of 36% to 25% by 2017 and down further to 20% by 2018.

b. Revenues. Although the survey reports 32,292 domestic users, only 11,853 households are

currently registered. The rest are unbilled household users resulting from the practice of

several households sharing a connection or else are illegal users. In the coming years, the

KWASA will embark on five major programs to increase connections and bill all users as

shown in Table 3 below.

Table 3 - Key Revenue Improvement Action Plan

c. O&M. Salaries and allowances will increase substantially as number of staff will increase

from 284 to 502 by 2017. Average salaries and % allowances will also increase, the latter the

result of the planned conversion of most of casual staff to permanent staff by 2017.

Chemicals and Depreciation expenses will start to be recognized and recorded as part of

O&M expenses.

See detailed assumptions in Annex 3 of Appendix 7- Business Plan.

2. Financial Projections

a. Financial Model

Under the PPTA, the consultants prepared a draft Business Plan to help KWASA attain its corporate

objectives and targets in the years to come. A strategic tool used in the preparation of the Business Plan

is the financial model which allows management to assess the impacts of various scenarios on the

Numbers Fiscal Year

a Increase in number of connections from 2011 to 2017

as more volume of water is made available from ongoing

and future projects.

Domestic Connections (end of fiscal year) 11853 40863 FY 2017

Non Domestic Connections (end of fiscal year) 385 4334 FY 2017

b Registration of all illegal connections 2206 illegal

domestic

connections and

138 illegal non

domestic

connections

zero FY 2012

c Conversion billing per household

Domestic Households (end of fiscal year) 11853 32292 FY 2012


e Charging owners of private deep tubewells an annual flat

fee

no charges 17,799 private

DTWs billed

FY 2017


PresentTarget


4

financial performance of KWASA. Under the PPTA consultancy, a model was developed which is the

basis for the financial assessment of KWASA’s future performance in the succeeding sections.

b. Base Case

The base case considers the following tariff scenario:

• Tariff increases on the monthly flat rate at 5% per year from 2012 to 2016

• At the start of the metering program in 2017, an initial tariff in real prices of Tk 13.00/m3 for

domestic connections (Tk 19.21/m3 in 2017 prices) and Tk 26.00/m3 for non domestic

connections (Tk 38.41/m3 in 2017 prices)

• Annual tariff increases at 5% after 2017

The base case also assumes that 30% of the project cost will be funded by government equity and 70%

through government loan. The assumed concessional terms of the loan are 2% interest rate per annum,

30 years repayment including an 8 year grace period on principal and interest payment. The results of

the analysis in Table 4 reveal that:

• While some years will result in annual cash deficits, KWASA’s cash balances will generally be

sufficient to cover cash operating and maintenance costs and debt service.

• Debt service coverage ratios are lower than the standard 130%, but this target will eventually be

met in future years

• Operating ratio before depreciation shows significant improvement from the current 5.17 to .46

in 2017 when the metered tariffs are implemented. As a result, net income ratio also improves

in the coming years with the implementation of the metered tariffs and the growth in

connections.

See Annex 4 of Appendix 6 – Business Plan showing the resulting financial projections for the base

case.


5

Table 4 – Results of Base Case

c. Sensitivity Scenarios

Two other scenarios were developed to test the financial viability of the project. See Table 5.

Year

2010 (28,513) 27,108 5.17 (4.17)

2011 32,571 59,679 4.17 (5.22)

2012 57,926 117,605 1.48 (1.26)

2013 57,607 175,212 1.52 (1.26)

2014 (48,320) 126,893 1.97 (1.47)

2015 (38,584) 88,308 1.57 (1.06)

2016 (37,629) 50,679 1.49 (1.11)

2017 332,878 383,557 0.46 0.46 19.21

2018 522,838 906,395 0% 0.39 0.58 20.17 5%

2019 612,295 1,518,690 0% 0.37 0.60 21.18 5%

2020 (406,833) 1,111,857 65% 0.36 0.27 22.23 5%

2021 (392,116) 719,741 67% 0.39 (0.15) 23.35 5%

2022 (312,424) 407,316 73% 0.38 (0.07) 24.51 5%

2023 (240,147) 167,170 80% 0.37 (0.01) 25.74 5%

2024 (162,356) 4,813 87% 0.37 0.06 27.03 5%

2025 (70,043) (65,230) 96% 0.36 0.04 28.38 5%

SCENARIO 1 (Option 1) - Selected KPIsAnnual

Cash

Surplus

(Defiiciency)

Ending

Cash

(Tk000)

Debt

Service

Ratio

Operating

Ratio before

depr

Net Income

Ratio

Domestic

Tariff

Tariff

Adjustment


6

Table 5 – Financial Model Scenario Variables

The scenario analysis results reveal the following:

Under Scenario 2, KWASA’s operations will result in substantial losses and cash deficits under a scenario

where a lower domestic tariff of Tk 6/m3 and non domestic tariff of Tk 12/m3 (both in real prices) are

implemented.

Under Scenario 3, KWASA’s revenues can recover O&M costs and debt service under a scenario where a

higher domestic tariff of Tk 26.00/m3 and non domestic tariff of Tk 52..00/m3 (both in real prices) are

implemented.

The results of the sensitivity analysis are given in Annex E of Appendix 6 – Business Plan.

C. Major Risks and Safeguards

Major risks to the attainment of the project objectives include:

a) Inadequate capacity of EA to manage the project

b) Inadequate capacity of EA to implement the key assumptions in the Business plan including the

revenue enhancement measures and the required tariff increases

KWASA needs to operationalize the Business Plan which provides a roadmap toward the attainment of

the project viability. The Government on the other hand, needs to give KWASA the support it needs

particularly in the area of more concessionary loan terms to enable the project to be viable.

Scenario 1 (Base) Scenario 2 Scenario 3

Tariffs

Starting Tariff (2009 prices)

Domestic connections Tk 13.00/m3 Tk 6.00/m3 Tk 26.00/m3

Non domestic connections Tk26.00/m3 Tk12.00/m3 Tk52.00/m3

Annual Tariff Increases starting 2012 5% 5% 5%

Financing

% Grant, % Loan 30% Grant; 70% Loan 30% Grant; 70% Loan 30% Grant; 70% Loan

Loan terms

Interest Rate 2% 4% 4%

Grace/Repayment period

8 years grace period,

22 years repayment

period


15 years repayment

period


15 years repayment

period

FINAL REPORT

I

PÖ

YR

Y ID

P C

ON

SU

LT, I

NC

.

PREPARING THE KHULNA WATER SUPPLY ADB TA 7385 - BAN

Pöyry IDP Consult, Inc.

In association with

HB CONSULTANTS LTD.

APRIL 2011

Asian Development Bank

Khulna Water Supply & Sewerage Authority (KWASA)

APPENDIX 10: Annex A - G

Appendix 10 ANNEX A TUBE WELL RECONNAISSANCE AND MONITORING SURVEY

Khulna Water Supply and Sewerage Authority (KWASA)

ADB TA 7385 BAN: Preparing the Khulna Water Supply

Report on Survey and Monitoring

Of

Existing Production Tube Wells and Pumping Equipment in KWASA

POYRY IDP Consult, Inc.

In association with

HB CONSULTANTS LTD

November 2010


1

Report on Survey and Monitoring of Existing Production Tube Wells and Pumping Equipment

Table of Content

1.0 Background

2.0 Methodology

2.1 Reconnaissance Survey

2.2 Detail Field Investigation and Monitoring

3.0 General Observations and Findings

3.1 Status of Wells

3.2 Status of Pumps and Motors

3.3 Electrical Control Panel

3.4 Water Meters

3.5 Chlorination Facilities

3.6 Operators and Operating Hours

3.7 Water production cost

4.0 Recommendations for Improvement of Production Well Operational Efficiency

Appendix-1 : Technical Details of Existing Production Wells and Pumping Equipment Appendix-2 : Technical Details of Existing Mini Wells and Pumping Equipment


2

ADB TA 7385-BAN, Preparing the Khulna Water Supply

Report on Reconnaissance Survey of Existing

Production Tube Wells and Pumping Equipment

Abbreviations

ADB Asian Development Bank

JICA Japan International Co-operation Agency

KWASA Khulna Water Supply and Sewerage Authority

DTW Deep Tube Wells

PTW Production Tube Wells

SWL Static Water Level

PWL Pumping Water Level

DD Draw Down

DP Delivery Pressure

TFH Total Field Head

WP Water Power

MP Motor Power

RC Rated Current

LC Load Current

PF Power Factor

LV Load Voltage

IP Input Power

OE Overall efficiency

OpC Operator’s Cost

PrC Power Cost

PdnC Production Cost

UWC Upper Well Casing

DOL Direct On Line

FS Feasibility Study


3

1.0 Background

As stipulated in TOR, one of the important goals of the program of ADB TA 7385 BAN: Preparing the Khulna Water Supply is to optimization of ground water resources. In order to achieve the target, survey, investigation and detailed monitoring were carried out since commencement of the project to know the actual status of the production wells currently in operation in KWASA service area. The survey and monitoring data were carefully analyzed and detail observation and findings were prepared for each of the individual wells, based on which recommendations for rehabilitation of each of the individual wells for operational efficiency improvement were made. Considerable improvement on ground water production and distribution is expected after proper implementation of proposed rehabilitation activity.

The activities carried out by the Consultant under the program such as reconnaissance survey, field

monitoring, survey methodology, observation and findings, recommendation etc are described in detailed

in the following paragraph of the report.

2.0 Methodology

The program of survey, investigation and monitoring on production wells & pumping equipment were

conducted by Engr Mr. Musa Mollah, the National Water Supply Engineer (Pumps) of the TA team. He was

assisted by a team of KWASA staff in carrying out the work in the field. The list of the KWASA team members are as follows:

1. Md. Monirul Islam, Assistant Engineer (In-charge) 2. Md. Abu Bakar Siddique, Supervisor

3. Md. Kabir Hossain, Supervisor

4. Md. Abul Kalam, Electrician

The total program of survey and monitoring activity was executed in two Phases: (i) Reconnaissance Survey

and (ii) Detail field investigation and monitoring.

Phase-1: Reconnaissance survey was conducted in order to get an overall status of the tube wells located

across the Khulna city based on which the next Phase of the detailed investigation and monitoring was

designed.

Phase-2: Detail survey, investigation and monitoring were carried out and analysis was done to obtain

actual status of production wells based on which detail rehabilitation plan was prepared for operational

efficiency improvement of the tube wells.

2.1 Reconnaissance Survey

Reconnaissance survey was conducted during the period of 3 August, 2010 to 7 September, 2010. This

survey included collection of key information through a specific format such as size and depth of well, type of

pumps and motors used, existing provisions available & additional provisions required for detail monitoring

activities etc.

A total of 110 DTW’s are in use at 70 sites across Khulna City. Two different types of wells are in use. Wells

of 350mm x 150mm size are named as production well where as wells of 200mm x 75mm, 150mmx75mm

and 150mmx50mm sizes are named as mini well.

There are total 31 nos. of production wells in 31 sites and 81 nos. mini wells in 40 sites. Out of 31

production wells 29 are found in operation and remaining 2 are abandoned. An overall picture of existing

production wells and mini wells as found during reconnaissance survey are summarized in Appendix-1 & 2

respectively.


4

2.2 Detail Field Investigation and Monitoring

During reconnaissance survey it is observed that out of 81 mini wells, 37 nos. are being operated by

centrifugal pumps which become inoperable due to significant lowering of ground water level goes beyond

suction limit during dry season. Moreover yield of almost all the mini wells are very poor and not

economical to keep them operated. The KWASA management’s intention is not to continue the mini well

operation too. Considering the situation, detailed monitoring has been carried out only to the 29 nos.

running production tube wells.

Detailed survey and monitoring on Production Wells and related Pumping Equipment have been conducted

during the period of 3 October to 3 November, 2010. The specific parameters monitored for each of the

well are as follows:

• Static and Pumping Water Level;

• Draw Down;

• Yield and Specific Capacity of Well;

• Delivery Pressure;

• Type of pump;

• Load Current;

• Overall Efficiency;

• Production Cost

The data and information were inserted in data sheet (Table-01) and analysis was made in order to find out

the actual tube well status based on which recommendation were made for operational efficiency

improvement of the wells.

The tools and equipments used in investigation and monitoring are summarized as:

• Water level monitoring equipment;

• Pressure gauge;

• Bulk water meter;

• Trajectory equipment to monitor yield of well;

• Clip –on-meter to measure load current and line voltage.

It was identified during reconnaissance survey that, there were no provisions in most of the existing tube

wells to perform monitoring of water level, delivery pressure, discharge etc. Consequently the Consultant

had to made necessary provision in the tube wells for performing the monitoring which are stated below:

• 25 mm dia. inspection hole on the well in order to introduce water level monitoring probe;

• Arrangement to install pressure gauge on the well discharge pipe;

• Arrangement to install trajectory for well yield monitoring.


5

Table-01: Production Well Monitoring Data

Ward No

Sl No

Welll No

SWL (m)

PWL (m)

DD (m)

DP (m)

TFH (m)

Yld. (m3/h)

Sp.Cap. m3/h/m

WP (KW)

MP (KW)

RC (A)

LC (A)

% of LC/RC

PF LV (Volt)

IP/hr (KW)

OE (%)

OpC (Tk/hr)

PrC (Tk/hr)

PdnC Tk/m3

Daily Prdn (m3)

PdnC Tk/day

9

1 18 4.26 21.65 17.4 17 38.65 70 4.03 7.363 18.5 40.0 26 65 NA 405 17.80 41 62.50 89.00 2.16 1120 2,424

2 83 3.81 22.00 18.2 10 32 50 2.75 4.355 22.5 39.5 21 53 0.7 405 13.00 33 62.50 65.00 2.55 800 2,040

3 84 3.96 16.77 12.8 10 26.77 80 6.25 5.828 18.5 40.0 32 80 0.6 405 13.00 45 62.50 73.62 1.70 1280 2,178

12 4 85 6.10 22.26 16.2 19 35.16 45 2.78 4.306 18.5 40.0 26 65 0.7 380 15.00 29 62.50 71.25 2.97 720 2,140

16

5 67 3.96 24.39 20.4 10 34.39 22 1.08 2.059 18.5 37.5 22 59 NA 390 9.00 23 62.50 42.75 4.78 352 1,684

6 62 3.96 21.34 17.4 5 26.34 9 0.52 0.645 7.5 16.5 9 55 NA 390 4.50 14 62.50 21.37 9.32 144 1,342

7 76 5.18 13.11 7.93 5 18.11 16 2.02 0.789 7.5 7.0 6 86 NA 390 4.00 20 62.50 19.00 5.09 256 1,304

17

8 43 5.03 21.34 16.3 5 26.34 46 2.8 3.298 15.0 32.0 28 88 NA 380 11.00 30 62.50 52.25 2.49 736 1,836

9 70 5.18 9.60 4.42 12 21.6 15 3.39 0.882 15.0 7.0 6 86 0.7 380 3.00 29 62.50 14.25 5.12 240 1,228

10 85 5.03 19.82 14.8 12 31.82 80 5.41 6.928 15.0 40.0 32 80 0.7 380 17.50 40 62.50 83.12 1.82 1280 2,330

20 11 60 5.49 19.82 14.3 5 24.82 9 0.63 0.608 2.2 9.0 7 78 0.98 380 3.00 20 62.50 14.25 8.53 144 1,228

12 92 6.40 22.26 15.9 5 27.26 20 1.26 1.484 7.5 16.5 12 73 NA 380 7.50 20 62.50 35.62 4.91 320 1,570

21 13 72 6.40 22.87 16.5 5 27.87 55 3.34 4.171 18.5 37.5 23 61 NA 374 14.50 29 62.50 68.87 2.39 880 2,102

22 14 51 6.40 23.78 17.4 1 24.78 10 0.58 0.674 2.2 16.0 12 75 0.98 230 4.00 17 62.50 20.00 8.25 160 1,320

23 15 90 6.10 23.78 17.7 14 37.78 35 1.98 3.599 18.5 40.0 19 48 0.8 402 12.20 29 62.50 57.95 3.44 560 1,927

24 16 36 5.18 18.60 13.4 8 26.6 38 2.83 2.751 18.5 35.5 19 54 0.7 395 9.50 29 62.50 45.12 2.83 608 1,722

24 17 79 5.79 20.73 14.9 8 28.73 50 3.35 3.91 22.5 42.5 15 35 0.75 395 10.00 39 62.50 47.50 2.20 800 1,760

25

18 44 6.10 20.73 14.6 10 30.73 45 3.08 3.764 7.5 16.5 17.5 106 0.98 390 9.50 40 62.50 45.12 2.39 720 1,722

19 82 6.40 10.67 4.27 6 16.67 52 12.14 2.351 18.5 37.5 17 45 0.43 380 6.47 36 62.50 30.73 1.80 829 1,492

20 93 6.71 23.78 17.1 10 33.78 35 2.05 3.218 18.5 41.0 28 68 0.98 390 16.77 19 62.50 79.65 4.06 560 2,275

26 21 81 6.40 21.34 14.9 15 36.34 60 4.02 5.935 22.5 42.5 16 38 0.76 373 12.50 25 62.50 35.62 3.81 512 1,950

22 88 6.40 24.39 18 10 34.39 39 2.17 3.65 18.5 40.0 21 53 0.76 385 10.84 34 62.50 51.49 2.92 624 1,824

27 23 45 6.10 24.39 18.3 8 32.39 24 1.31 2.116 18.5 40.0 25 63 0.5 400 10.00 21 62.50 47.50 4.58 384 1,760

24 86 5.49 19.82 14.3 12 31.82 120 8.37 10.39 18.5 40.0 40 100 0.8 400 25.00 42 62.50 118.75 1.51 1920 2,900

28 25 89 5.18 22.87 17.7 12 34.87 35 1.98 3.321 18.5 40.0 26 65 0.8 400 14.00 24 62.50 66.50 3.69 560 2,064

29 26 78 5.79 9.76 3.96 12 21.76 45 11.35 2.665 18.5 35.5 19 54 NA 400 11.00 24 62.50 52.25 2.55 720 1,836

29 27 91 6.10 22.87 16.8 5 27.87 70 4.17 5.309 7.5 16.5 16.5 100 0.8 400 10.00 53 62.50 47.50 1.57 1120 1,760

30 28 69 6.10 24.39 18.3 2 26.39 6 0.33 0.431 2.2 12.0 9 75 0.8 380 3.00 14 62.50 14.25 12.79 96 1,228

31 29 57 3.05 19.21 16.2 5 24.21 38 2.35 2.504 18.5 35.5 16 45 NA 405 10.00 25 62.50 47.50 2.89 608 1,760

Average yield rate per production well in m3/h= 42.02 Total production and production cost per day respectively= 19,501 52,706

Average Production Cost Tk/m3

2.68

SWL=Static water Level PWL=Pumping Water Level DD =Draw Down DP =Delivery Pressure TFH=Total Field Head Yld.=Yield Sp. Cap.=Specific Capacity

WP =Water Power MP =Motor Power RC=Rated Current LC =Load Current PF =Power Factor LV =Load Voltage IP=Input Power

OE =Overall Efficiency OpC=Operator Cost PrC=Power Cost PdnC=Production Cost NA = Not Available


6

3.0 General Observation and Findings

General observation and findings on production wells derived from the data collected during investigation and

monitoring are summarized below:

3.1 Status of Wells

Static and Pumping Water Levels

• Static Water Levels of the existing production wells varies from 3.0 to 6.71m.

• Pumping Water Levels of the existing production wells varies from 9.6m to 24.39m.

• Pumping Water Level of 13 wells goes below pump bowl assembly when operated with full opening of delivery

valves.

Draw-Down

• Draw down of 4 nos. wells found below 8m indicating the well is being operated by the pump with lower capacity;

• Draw down of 7 wells found between 8-15m indicating the well is being operated by the pump with appropriate

capacity;

• Draw down of 18 wells are found beyond 17m which indicate higher pump capacity as compared to actual field

requirement;

Yield

Yield of the existing wells varies from 6 to 120 m3/h. Average yield of the existing wells as found from the monitoring

survey is 42 m3/h.

Delivery Pressure

Delivery pressure of all the production wells have been measured by installing a pressure gauge at the discharge pipe

of the production wells. The maxm pressure was observed below 10 MWC when read with full opening of the delivery

sluice valve. It was observed in some cases that the water is flowing in the discharge pipe like open channel flow

indicating no pressure at all in the pipe.

Specific capacity of wells

The specific capacity of all the wells have been calculated based on well monitoring data and the well have categorized

accordingly into following groups:

• Specific capacity of 3 nos. wells is found above 8 m3/h/m indicating rich well;

• Specific capacity of 5 nos. wells is found between 3.5-8 m3/h/m indicating moderately good well;

• Specific capacity of 17 wells are found between 1-3.5 m3/h/m indicating poor well condition and needs to be

improved;

• Specific capacity of 4 wells are found below 1 m3/h/m indicates not to be economical to operate wells.

3.2 Status of Pumps and Motors

Pumps

Out of total 29 functional wells, 9 nos. are being operated by turbine pumps while 20 nos by submersible pumps.

It has been found by field monitoring that 13 nos. of the production wells are being operated with throttling of delivery

valve as pumping water level of the wells goes below pump-bowl assembly within 3 minutes of pump starts keeping


7

delivery valves full open. It indicates that wells are being operated by the pumps of higher discharge capacity compared

to the yield capacity of wells. It may be mentioned here that abstraction of ground water from wells with higher discharge

capacity pump beyond the safe yield is a major cause for clogging/damaging of wells.

Motors

Assessment of running condition of motors has been made based on data collected from the field and findings are

shown below:

• Load current of 3 nos. motors are found above 98% of rated current indicating critical condition of motor;

• Load current of 5 nos. pump motors are ranging from 80-98% of rated current indicates appropriate motor

selection.

• Load current of 12 nos. ranging from 55-79% of rated current within acceptable limit;

• Load current of 9 nos. pump motors are found below 55% of rated current and considered for replacement

including rejected wells.

Overall Efficiency of Pump-Motor

Overall efficiency of pump and motor derived from field data is shown below:

• Overall efficiency of 4 nos. pump-motors is found above 40% indicating appropriate selection of pump-motor;

• Overall efficiency of 7 nos. pump-motors found between 31-40%, is within acceptable limit;

• Overall efficiency of 14 nos. pump-motors found between 20-30% indicates poor selection of pump and motor;

• Overall efficiency of 4 nos. pump-motors are found below 20% indicates very poor selection of pump and motor;

3.3 Electrical Control Panel

Pumping Equipment of Production Wells is operated by Star-Delta Starter and that of Mini Wells are operated by Direct

on Line (DOL) Starter. It is found that Ammeters and Voltmeters in the control panel are not working in most of the

cases.

Component of starters & measuring instrument are often found accommodated in an unnecessary big steel panel board

which occupied a major space of the control room.

Some control room are occupied with unusable, old and rejected panel boards which make the room dark and dirty.

3.4 Water Meter

Out of 29 nos. operational wells, 22 nos. have water meter. The water meter can be classified into two groups:

(i) 150 mm Dia.: There is a total of 17 nos. water Meters of which 4 are functional.

(ii) 75 mm Dia.: There is a total of 5 nos. water Meters of which 4 are functional.

3.5 Chlorination Facilities

There are provisions for chlorination units (with chlorine gas cylinder) with production wells. But all the chlorination units

are out of order in all the production wells due to lack of maintenance.

3.6 Operators & Operating Hours

The scheduled operation hours of production wells are 16 hours a day. Two operators are operating the pump for 8 hours

in a day with shifting duty.


8

3.7 Water production cost

• Water production cost of 5 wells are found below Tk. 2./m3 indicating economic for operation;

• Water production cost of 20 wells are found between Tk. 2-6/m3 indicating that the wells are in moderately good

condition and need rehabilitation to increase operational efficiency;

• Water production cost of 4 wells are found above Tk. 6/m3 indicating the wells have very poor efficiency and

difficult to improve by rehabilitation; that’s why the wells may be abandoned.

4.0 Recommendation for Improvement of Production Well Operational Efficiency

Based on the above findings of the survey work, the Consultant’s recommendations for operational efficiency

improvement of the wells are given in the following table:

Ward

No.

Sl.

No.

Well

No. Existing Status Proposed Rehabilitation

9 1 18 i) Draw-down =17.4m

ii) Specific capacity =4.03 m3/h/m

iii) Load current =65% of rated current

iv) Overall efficiency =41%

v) Production cost =Tk.2.16/ m3

vi) Capacitor bank -Not available

vii) Regeneration-Twice & last in 2007

i) No rehabilitation is required except installation of

capacitor bank in motor circuit;

ii) The well can be allowed to be operated.

9 2 83 i) Draw-down =18.2m (suction cut-off)





vi) Motor control panel -Not -standard

vii) Regeneration-Once in 2008

i) Regeneration of the well;

ii) Replacement of existing turbine pump-motor and

column pipe assembly by submersible pump-motor and

riser pipe sets as per well improvement after

regeneration;

iii) Replacement of the existing motor control panel.

9 3 84 i) Draw-down =12.8m




v) Production cost =Tk.1.70/m3


vii) Ammeter – Not functional

viii) Voltmeter-Not functional

i)Performance of the well is satisfactory and can be

allowed to be operated;

ii) Installation of 7.5 KVAR TP capacitor bank with the

motor circuit to improve the power factor;

iii) Replacement of ammeter and voltmeter;







vii) Voltmeter – Not functional

viii) Regeneration-Not yet carried out


ii) Replacement of existing submersible pump unit as per

well improvement after regeneration;

iii) Replacement of motor control panel with DOL Starter

including protective & measuring device.







i) Replacement of existing turbine pump-motor (25HP)

with new submersible pump set (30m3/h discharge at

40m head and 7.5 HP submersible motor) including

pump cable & DOL starter of adequate size.

ii) Replacement of column pipe assembly with 75mm dia

flanged steel riser pipe sets


9

Ward

No.

Sl.

No.

Well


vii) Regeneration-Twice & last in 2009

16 6 62 i) Draw-down =17.4m(suction cut-off)




vi) Regeneration-Twice & last in 2009

i) The well condition is very poor and cannot be

improved by regeneration. The well may be abandoned.

16 7 76 i) Draw-down =7.93m





vi) Regeneration-Thrice & last in 2009

i) Replacement of existing submersible pump-motor

(3HP) with new submersible pump set (35m3/h

discharge at 45m head and 10 HP submersible motor)

including pump cable & DOL starter of adequate size.

ii) Replacement of column pipe assembly with 75mm dia

and 36m long flanged steel riser pipe sets.









ii) Reduction of Impeller diameter of existing pump set

as per well improvement after regeneration;

iii) Replacement of the damaged Voltmeter with new

one.

iv) Installation of one 5.0 KVAR TP capacitor Bank with

the motor circuit to improve the power factor.

17 9 70 i) Draw-down =4.42m





i) Replacement of existing submersible pump set with

higher capacity submersible pump-motor (35m3/h x 35m

x 7.5HP) including submersible pump cable & DOL

starter and 75mm dia flanged steel riser pipes.

17 10 85 i) Draw-down =14.8m





Performance of the well and pump are satisfactory and

can be allowed to be operated

20 11 60 i) Draw-down =14.3m












i) Regeneration of the well












regeneration;

iii) Replacement of the existing motor control panel with

DOL starter including protective device.


ii) Specific capacity =.58 m3/h/m





10

Ward

No.

Sl.

No.

Well








v) Production cost =Tk.3.44 m3







including protective and measuring device.

24 16 36 i) Draw-down =13.4m

ii) Specific capacity =2.83m3/h/m






i) Replacement of the existing turbine pump-motor and

column pipe assembly 45m3/h x 36m x 12.5 HP

submersible pump and 100mm dia riser pipe

ii)Replacement of the existing Motor Control Panel with

DOL Starter including protective & measuring device,

24 17 79 i) Draw-down =14.9m











regeneration;


DOL starter including protective device.













25 19 82 i) Draw-down =4.27m





i) Replacement of existing Turbine pump-motor and

column pipe assembly with 80 m3/h x 36m x 25 HP

submersible pump & 125mm dia riser pipe.













26 21 81 i) Draw-down =14.9m





vi) Sand Yielding

Regeneration of the well will not be feasible due to sand

yielding. The well may be operated as it is.

26 22 88 i) Draw-down =18m (suction cut-off)









11

Ward

No.

Sl.

No.

Well


v) Production cost =Tk.2.92 m3 including protective & measuring device.





v) Production cost =Tk.4.58/m

i) Replacement of existing submersible pump-motor

(25HP) with 35m3/h x 35m x 7.5 HP submersible pump

motor including pump cable & riser pipe of adequate

size.(75mm)

ii) Replacement of the existing Motor Control Panel with

DOL Starter including protective & measuring device

27 24 86 i) Draw-down =14.3m





vi) Motor control Panel-Very bad condition

i) Performance of the well and pump are satisfactory and

can be allowed to be operated.

ii) Motor control panel including accessories are to be

replaced with new ones as per existing motor capacity

(25HP)











29 26 78 i) Draw-down =3.96m





vi Ammeter – Not functional


viii) Capacitor bank -Not available

i) Replacement of existing Turbine pump-motor and

column pipe assembly with 80 m3/h x 36m x 25 HP

submersible pump unit & 125mm dia riser pipe sets.

ii) Replacement of motor control panel with 25HP DOL

Starter including protective & measuring device.

iii) 7.5 KVAR TP capacitor bank shall be connected in

the motor circuit.

29 27 91 i) Draw-down =16.8m





vi TP MCCB– Not Available

viii) Capacitor bank -Not available

i) Withdrawing, dismantling and reduction in diameter of

pump impellers by 2mm and then lowering after re-

assembling.

ii) Installation of 3 KVAR TP Capacitor Bank and 40A TP

MCCB shall be connected with the motor circuit.

30 28 69 i) Draw-down =18.3m







31 29 57 i) Draw-down =16.2m









regeneration;


DOL starter including protective & measuring device.

During Consultant’s investigation, it was observed that almost all the pump houses are not well maintained and found dirty. All

chlorination cylinders in the production tube well are out of order. The pump houses should be cleaned and the inactive

chlorination cylinders should be removed.


12


13

Appendix-01

Technical Details of Existing Production Wells and Pumping Equipment


14

Table-01: Technical Details of Existing Production Wells and Pumping Equipments

Ward No

Well No

Well Location Year of Constn.

Depth of Well, m Pump

Type Motor Details

Size, Mat & Length of Riser Pipe

Condition of Pumping Unit Total UWC Filter

9

18 R & H Baikali 1980 275 36 30 Submersible 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, flanged) Workable

83 Mujgunni Lebutala 2002 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 30 HP 150mm x 24m Frequent malfunction

84 Mujgunni Battala (MSP) 2003 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m Workable

10 75 Khalispur Jheel pukur 2000 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, threaded) Not Workable

12 85 Khalispur KCC Branch Office (MSP)

2003 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m (MS, flanged) Workable

16

67 Noor Nagar Fire service 1995 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, threaded) Workable

62 250 Bed Hospital 1995 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 2 HP 40mm x 24m Poor Workability

76 Modina Mosque Boyra 2000 275 76 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP 125mm x 24m (MS, flanged) Workable

17

43 Sonadanga-1 1987 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 10 HP 100mm x 24m Workable

70 Sonadanga KCC Park 1997 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI, Flanged) Workable

87 KDA App. Road (MSP) 2004 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m Workable

20 60 Saikpara Bazar-3 1994 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI, Flanged) Workable

20 92 Saikpara Bazar Mosq. (MSP)

2005 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 10 HP 100mm x 24m (GI, Flanged) Workable

21 72 D.C. Office 1997 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, threaded) Workable

22 51 Zilla School 1994 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI, Flanged) Workable

23 74 Sir Iqbal Road Park 2000 275 36 30 Submersible 1-Phase, 50 HZ, 2900 RPM, 2 HP 40mm x 24m (GI, Flanged) Workable

23 90 PTI More (MSP) 2004 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m (MS, Flanged) Workable

24 36 Nirala WF-3 1986 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, threaded) Very Poor Workability

24 34 Nirala WF-1 1980 275 36 30 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI, Flanged) Very Poor Workability

24 79 Nirala KCC Park 2001 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 30 HP 125mm x 24m (MS, threaded) Workable

25 44 Arambag 1987 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 10 HP 100mm x 24m (GI, Flanged) Not Workable

25 82 Bosupara Graveyard 2002 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 30 HP 125mm x 24m) Workable

25 93 Old Gollam- ari Road 2005 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m Workable


15

Ward No

Well No

Well Location Year of Constn.

Depth of Well, m Pump

Type Motor Details



26 81 West Baniakhamar Urban 2002 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 30 HP 150mm x 24m Workable

26 88 Sher-A-Bangla Road 2004 275 36 18 Submersible 3-Phase, 50 HZ, 2900 RPM, 10 HP 100mm x 24m (MS, Flanged) Workable

27 45 Tarer Pukur 1987 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 10 HP 125mm x 24m (MS, Flanged) Workable

27 86 East Baniakhamar Madrasha

2003 275

36 30 Submersible

3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m (MS, Flanged) Workable

28 89 West Toothpara Primary School (MSP)

2004 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 25 HP 125mm x 24m (MS, Flanged) Workable

29 78 Babu Khan Road 2001 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, threaded) Workable

29 91 KCC Rest House (MSP) 2004 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 10 HP Workable

30 69 Rupsa Kasai khana 1997 275 36 30 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI, Flanged) Workable

31 57 Hazi Malek College 1994 275 36 30 Turbine 3-Phase, 50 HZ, 1450 RPM, 25 HP 125mm x 24m (MS, threaded) Workable


16

Appendix-02

Technical Details of Existing Mini Wells and Pumping Equipment


17

Table-02: Technical Details of Existing Mini Wells with Pumping Equipment

Ward No

Well No

Well Location Year of

Construction

Depth of Well, m Pump Type Motor Details



9 M-4 Mujgunni Well Field-3 2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP 75mm x 24m (PVC) Workable*

2002 284 36 18 Centrifugal. 3-Phase, 50 HZ, 2900 RPM, 3 HP 75mm x 24m (PVC) Not Workable

9 M-40 Muzgunni Park 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable

284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP Workable

10 M-1 Khalispur Durbar Shanga

2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP

75mm x 24m (PVC)

Not Workable

2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP Workable*


10 M-2 Khalispur Nayabati More

2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP 75mm x 24m (PVC) Malfunction

2002 284 36 18 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged) Workable

10 M-33 Babur salam Mosque 2010

284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI, Flanged)

Workable


10 M-8 Khalispur Maternity Hospital

2003 284 36 18 Centrifugal 1-Phase, 50 HZ, 2900 RPM, 2 HP 75mm x 24m (PVC)

Workable*


11 M-32 Peoples 5th floor 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


11 M-19 Khalispur Toyeba Mosque 2006 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP

75mm x 24m (PVC) Workable*


12 M-9 Khalispur 12 no Road 2003 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



13 M-20 Khalispur Charer Hat ghat 2008 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



14 M-10 Boyra Public College 2004 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



14 M-37 Rayer Mohal Bazar Mondir 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


14 M-17 Royer Mohal School 2006 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP




18

Ward No

Well No


Construction




16 M-5 Noor Nagar Mosque 2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP

75mm x 24m (PVC) Not Workable


16 M-26 Women Hostel Boyra 2010


Workable


16 M-25 Front of 250 Bed Hospital 2010


Workable


16 M-11 Sonadanga Swiper quarter


Workable*


18 M-39 Galla Mari Bypass 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


18 M-12 Front of Sonadanga Police Station


Workable*


19 M-35 Polli Mongal 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


19 M-21 Islamabad Community Centre


Flanged)

Workable


20

M-7 Ferryghat-3 (KCC Workshop)

2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP 75mm x 24m (PVC) Not Workable


Flanged) Workable

M-34 Ferighat Zinna Mosque 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


21

M-3 Khulna Circuit House 2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



M-27 Kornation Tech. School 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP

75mm x 24m (PVC) Workable


22

M-15 Zilla School Quarter 2004 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP


2004 284 36 18 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP Workable

M-29 Bagmara Tetultala 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged) Workable


19

Ward No

Well No


Construction





25 M-25 Basupara PWD Quarter 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


26

M-38 Nort Khal Bank Road 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


M-22 Habelibag 2008 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



M-13 Mistiripara Bazar 2004 275 36 30 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



M-24 Dole Khola More 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


M-30 Toothpara Gastola Mondir 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


29

M-6 Alia Madrasha 2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP


2002 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP Workable

M-31 Saburunnesa School 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP

50mm x 24m (GI, Flanged)

Workable


M-14 Municipal Tank Road 2010 284 36 18 Submersible 3-Phase, 50 HZ, 2900 RPM, 3 HP

50mm x 24m (GI, Flanged)

Workable

284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP Workable*

30

M-16 Toothpara Taltola Hospital 2005 284 36 18 Centrifugal 3-Phase, 50 HZ, 2900 RPM, 3 HP



M-23 Chanmari Bazar Madrasha


Flanged)

Workable


M-28 Hazi Malek Pakar Matha 2010 284 36 18 Submersible 1-Phase, 50 HZ, 2900 RPM, 3 HP 50mm x 24m (GI,

Flanged)

Workable


* Centrifugal pumps frequently become inoperative due to lowering of ground water level during dry season

Appendix 10 ANNEX B SUMMARY OF WORKSHOPS AND TECHNICAL MEETINGS

Report on Technical Training Conducted By TA Team 1.0 Introduction In compliance with the requirement of ToR, special emphasis has been given on imparting training to KWASA staffs. Both the theoretical classroom training and field demonstration have been rendered to the relevant officers/staffs of KWASA. The main training topics selected by the TA Team with consent of client relevant to develop skill of KWASA are as follows: A. Water Distribution System

- Pipeline Installation Standard and technique; - Rehabilitation and System Improvement; - Understanding Un-accounted for Water (UFW); - Non-revenue Water (NRW); - Leak Detection Methodology.

B. Wells and Pumps

- Production Well; - Pumps; - Pump Station/Pumping Plant; - Operation, Maintenance & Trouble Shooting; - On – Job- Training/Field Demonstration

Training Team comprised mainly Mr. Md. Zahangir Alam, Deputy Team Leader and Md. Abu Musa Mollah, National Consultant (Pump). They are supported by KWASA management and assisted by KWASA staffs in organizing the training programs. 2.0 Selection of Trainees The Consultant collected the total list of KWASA technical staffs; out of which around 29 were nominated based on education, experience and position in KWASA for involving them in the regular training programs. The list of technical staffs finally approved by KWASA management is shown in the Table 01 below:

Table 01: List of Trainees Participated in Regular Technical Training Programs Conducted by

ADB TA Team

SL No Name of Officer/Staff Designation

1 Md. Mofiz Uddin Ahmed Executive Engineer (In Charge)

2 Md. Rezaul Islam Executive Engineer

3 Debotosh Kumer Das Assistant Engineer (In Charge)

4 Md. Monirul Islam Assistant Engineer (In Charge)

5 Md. Ashekur Rahman Asst. Engineer

6 Sk. Maruful Haque Asst. Engineer

7 Rafiqul Alam Sarder Sub-Asst. Engineer

8 G. M. Abdul Gaffer Sub-Asst. Engineer


SL No Name of Officer/Staff Designation

9 Amit Kumar Kundu Sub-Asst. Engineer

10 Biplab Majumdar Sub-Asst. Engineer

11 Md. Afiqual Islam Sub-Asst. Engineer

12 Abul Bashar Sub-Asst. Engineer

13 Md. Tazamul Haq Sub-Asst. Engineer

14 A.B.M Sattar Supervisor

15 Abu Bakar Siddique Supervisor

16 Md. Kabir Hossain Supervisor

17 Md. Saiful Islam Sardar Head Mechanic

18 Md. Abul Kalam Electrician

19 Sanjoy Kumar Devnath Asst. Electrician

20 Md. Abu Said Pump Mechanic

21 Md. Selim Pump Mechanic

22 Md. Jasim Pump Mechanic

23 Md. Abdur Rab Pump Mechanic

24 Md. Abul Kalam Electrical Meter Reader

25 Abdul Motleb Pipe Line Mechanic

26 Khoka Mia Pipe Line Mechanic

27 Aziar Hossain Pipe Line Mechanic

28 Edris Ali Pipe Line Mechanic

29 Zahangir Hossain Pipe Line Mechanic

Note : Serial no of the trainee as mentioned above does not represent the seniority of staff


3.0 Details of Training Conducted by TA Team The TA Team conducted 12-Technical Training Programs; of which 7 programs include only theoretical classroom discussion, 3 include field demonstration along with classroom discussion, 1 were only field demonstration on some practical issues related to well and pump operation and the rest 1 program was outing to Faridpur Pourashava to gather practical knowledge of water works operation and billing activity. All the trainings except training no. 8 & 9 were conducted to the technical staffs mentioned in the Table 01. Training no. 8 & 9 were conducted exclusively for the pump operators (60+65) of KWASA in two phases on pumps and wells operation and trouble shooting. Adequate refreshments with tea/ coffee were served during the tea breaks of the training. Good lunch was arranged in the nearby restaurants as well as the training venue. Training bags have been provided to the trainees. The summary of the training program conducted by TA Team is shown in the Table 02 below:

Table 02: Summary of Training Activities Conducted by TA Team


Sl No. Training Topics in Brief Conducted By No. of Trainees Attended Date and Duration Venue

1 Classroom Training a. Interaction on some relevant MCQ on pumps and water distribution system; b. Introduction and classification of pumps. c. Pumps used in water supply system

Md. Abu Musa Mollah National Consultant (Pumps) &


23 October 2010 (09:30 am-03:30 pm)


d. Water pipeline Installation Technique (Part-01) Md. Zahangir Alam Deputy Team Leader

2 Classroom Training a. Major Component of Pump Unit b. Selection of Appropriate Pumps c. Determination Pump Head and Discharge d. Pump Characteristics Curves



19 November 2010 (09:30 am-03:30 pm)

Conference Hall of Hotel Castle Salam, Royal Mor, Khulna

e. Water pipeline Installation Technique (Part-02) Md. Zahangir Alam Deputy Team Leader

3 Classroom Training a. Well Fixture b. Static Water Level (SWL) c. Pumping Water Level (PWL) d. Draw Down e. Well Yield f. Specific Capacity



01 December 2010 (09:30 am-03:30 pm)


Field Demonstration a. SWL & PWL Monitoring b. Determination of Draw Down c. Well Discharge Measurement by Trajectory d. Determination of Specific Capacity of Well e. Dismantling & Assembling of a Multi-stage submersible Pump-unit


Pump House and Office yard for field demonstration


Sl No. Training Topics in Brief Conducted By No. of Trainees Attended Date and Duration Venue

4 Classroom Training a. Series Operation of Pumps b. Parallel Operation of Pumps c. Combined Characteristic Curves for Series Operation d Combined Characteristic Curves for Parallel Operation



14 December 2010 (09:30 am-01:15 pm)


5 Classroom Training

a. Basic of Electricity

b. Electrical Control & Protective Component used in

Pumping Plant.

c. Measuring Instrument in Pumping Plant.

d. Circuit Diagram of Elec. Equipment in Pumping Plant



23 December 2010 (09:30 am-01:15 pm)



a. Pump Station

b. Piping Gallery

c. Measuring instrument

d. Identification & Selection of Cable



29 December 2010 (09:30 am-01:15 pm)


Field Demonstration

a. Pumps & Piping Gallery

b. Measuring instrument and Electrical Component in a

pump station

Nearby Pump House


a. Installation of Submersible Pump

b. Operation

b. Maintenance

c. Monitoring

d. Trouble Shooting

e Points to be considered during O & M of Electrical

equipment



05-01- 2011 (09:30 am-01:15 pm)

Conference Room of KWASA HQ Building for Classroom Discussion.


Field Demonstration

Visit to nearby Pump House and demonstration of

operation and monitoring of pump & well.

Nearby Pump House


Technical Details, Operation, Maintenance, Monitoring

and Trouble Shooting of Production Well with

Submersible Pumping Equipment.


65 Nos. Pump Operators & 4 nos Pump Mechanics (1st Group)

11-01- 2011 (2:30 PM-5:30 PM)



Technical Details, Operation

Maintenance, Monitoring and Trouble Shooting of

Production Well with Submersible Pumping Equipment.


60 Nos. Pump Operators (2nd Group)

12-01- 2011 (9:30 AM-12:30 PM)


10 Classroom Training a. Un-accounted for Water (UFW) b. Non-Revenue Water (NRW) c. Measure to Control Wastage d. Key to Non-Revenue Water e. Leak Detection Methods f. Benefits of Leak detection g. Leak Detection Equipments


29 Nos. (Engineers,

Supervisors, Mechanic,

Electricians)

20-01- 2011 (9:30 AM-12:30 PM)


b. Continuity Equation c. Bernaullie’s Equation d. Water Hammer e. Cavitations f. Air Locking g. Principle of Water Treatment


11 Visit to Faridpur Paurashava

• Power Point Presentation on present status of Water Supply System and billing status of Faridpur Paurashava, presented by Pourashava Authority.

• Visit & observe Water Treatment Plant (480m3/h) operation at Old W/W, Jhiltuli

• Visit & Observe Water Treatment Plant (480m3/h) operation at Goalchamat.


MD. Abu Musa Mollah National Consultant (Pumps)

Md. Kayemuddin National Consultant (Finance)

46 Engineering and Financial Staffs of KWASA

22-01-2011 (7:30AM to 7:30PM)

Faridpur Pourashava Water Works

12 Field Demonstration Practical Demonstration with hydraulic model (fabricated)


29 Nos. (Engineers, Supervisors, Mechanic,

26-01-2011 (7:30AM to 7:30PM)

KWASA Office Compound


to explain the following technical terms:

• Continuity Equation & Bernaullie’s Equation

• Head Loss

• Water Hammer

• Air Locking

Electricians)


Appendix-01

Attendance List of the Participants


Appendix-02

Training Materials 1

GUIDE TO PIPELINE INSTALLATION

Discussion Summary

⇒ General ⇒ Excavation ⇒ Transportation and Storing Pipes and Fittings ⇒ Installation Technique ⇒ Pipe Bedding & Backfilling ⇒ Road Crossings ⇒ Bridge and Culvert Crossing

1. Detailed of Standard Chamber All the

� All Existing Utility Lines and Services have been Located; � Safety Measures – Arrangements for Lighting, Watching and

Signposting etc.; � Obtain Permission from Concerned Authorities for Diverting Traffic; � Observation Regularly the Arrangements so that Inconvenience to

Public would be minimized.

2. Excavation

� Obtain Road Cutting Approval from Authority; � Identification of Pipe Alignment; � Width of Excavation will be within Design Limit; � Excavation for Invert Elevation Must Allow Pipe Bedding; � Excavated Material Placed might not Create Obstacle to Traffic

Movement; � Shoring

- Shoring is required to ensure workers in excavated trenches are sufficiently protected and working in safe condition;

- Ensure the timbers used for upright and bracing are of sufficient size;

- Width and shoring must produce sufficient access to permit installation of pipe;


� Depth of Trench: Recommended Depth for Pipelines in Different

Situations:

- Through bush : 100 cm (min 40 cm) - Along roads : 100 cm - Underneath roads : 120 cm

� Utmost care should be taken to ensure that each pipe is properly and

uniformly bedded along its whole length except at the joints.

3. Transportation and Storing Pipes and Fittings

� PVC Pipes should be Transported in a Vehicle having a Bed Long Enough to Provide Support for the Full Length of the Pipe;

� PVC Pipes should be Stored in a Flat Horizontal Position; � In General the Height of Pipes Stack should not be more than 7

Times of its Diameter.

4. Installation Technique: Operation Involved in the Laying of Pipelines include the Following Steps:

� Preparation of Detailed Maps of Roads and Streets: Showing

Position of: - Curbs; - Gutters; - Existing water line; - Sewerage pipes; - Gas Pipes; - Telephone & electric conduits.

� Locating the proposed alignment on the ground: the trench line is marked by driving centrally stakes 30 meter apart on straight lines and 10 meter apart on curves.

� Excavating the Trenches: The Trench will be Sufficiently Wide to

Allow the Pipes to be Laid Properly. The Width of the Trench Generally Depends on:

- Diameter of pipes; - Soil type and conditions; - Cost involves.

� Preparation of Laying


- All pipes and fittings would be checked for class; - The entire length of the barrel of the pipe should be well

supported on solid and even foundation; - Check the grade level of each pipe laying to ensure that the

invert level is correct; - Check the alignment to ensure that the deviations at the joints

do not exceed the permissible amounts; - Pipe jointing should be carefully supervised to ensure the

specifications and manufacturer’s instructions are strictly followed.

- Where concrete surrounds, thrust blocks and valve chambers are to be provided, attention should be paid to the quality of materials and workmanship

- In no case, pipe shall be jointed before lowering.

� Pipes Laying

- The pipeline should be laid along the straightest route possible; - Road crossings should be done at 450 angle to the road; - Pipe should be laid with a continuous rise of about 2% to 5% to

high points so that air can be released through air valves or with a continuous fall to low point.

- Pipes should be laid on firm ground in order to prevent uneven settlement which may damage pipe joints.

- Couplings (rubber sealing rings) may be loaded unevenly and may cause of leakage.

- Immediately before the pipes being laid, all dust, dirt and foreign matter shall be removed from the inside;

- In order to prevent stones and soil from entering the pipe, a suitable plug shall be provided with the last pipe laid when pipe laying is not actually in progress.

- All trees roots between the surface and a depth of 1 m should be cut prevent damage to pipes from root growth or by uprooted trees.

5. Pipe Bedding & Backfilling

� The pipe should be laid in bed of sand, 150 mm below the bottom

and 150 mm above the top of the pipe barrel and over the full trench width;

� The applied sand should be free of clay, stones or hard lumps. � In road crossings, sand filling shall be done over the full depth of the

trench � Backfilling of trenches shall be carried out by excavated soil in 150

mm layers; each layer being thoroughly rammed and consolidated before the succeeding layer is placed.


6. Road Crossings

� Pipes at road crossing preferably are of galvanized (G.I) or mild steel (M.S) casing with a minimum cover of 1.0 meter above the pipe.

� The entire backfilling over the length of the crossing shall consist of sand.

� Where the application of G.I or M.S pipes is not possible, the PVC pipe shall be protected on a proper manner against the pressure caused by traffic.

� The contractor shall operate a system of traffic control; � Road, drain and channels should be free from obstructions at all time. � Excavated material should not be placed in such way that it will

obstruct the flow of traffic. � Backfill should be placed in 150 mm lifts and proper effort to be

applied to obtain consolidation and compaction. � Restoration of the roads damaged at the time of laying of pipeline into

its original condition. 7. Bridge and Culvert Crossing

� Pipes in Bridge or Culvert Crossing shall be of galvanized Iron or Mild Steel;

� In no Case the Pipe shall Hamper any Boat, Traffic or the Free Flow of Water;

� It is better to Cross the Bridge or Culvert Outside of the Bridge or Culvert and Clamped to the Railing Post than Passes Inside the Bridge or Culvert;

� During the Crossing of Bridge or Culvert the Bend Use should be 450 to minimize the Head Losses. Head Loss for 900 = 1.5 Times of Head Loss for 450

� During construction of bridge or culvert crossing fewer joints should

be provided and joints should be of flanged type. � If possible full length of a pipe should be used for minimizing the

joints.

To be Continued………


GUIDE TO PIPELINE INSTALLATION (Part – 02)

8. Details of Standard Valve Chamber The Main Objective of Valve Chamber in Water Distribution System are:

⇒ Easy Location of Sluice Valve; ⇒ Easy Operation in Diverting Water Flow; ⇒ Protection from Damage;

The Chambers are also urgently required for:

⇒ Washout Point; ⇒ Air Release Valve Location;

The Valve Chamber can be Categorized into:

⇒ Inside the Road for Heavy Traffic; ⇒ Off the Road for Light Traffic;

The Points to be Considered during Construction of Chamber:

⇒ Slab shall be constructed in three parts; ⇒ Top slab of the chamber shall be flushed with the existing

road/ground level; ⇒ The base slab of the chamber shall be of CC or RCC; ⇒ A concrete block shall be provided under the seat of the sluice

valve so that load of sluice valve does not transfer to PVC pipelines;

⇒ Sufficient space shall be provided between floor and pipe for easy maintenance;

⇒ Fittings and joints should not be within brick wall of the chamber; ⇒ For PVC pipe, casing shall be provided inside brick wall to

overcome any load from the brick wall;

9. Anchoring of Pipes and Thrust Block At all bends, tees, valves and other branch connections, it should be necessary to provide thrust blocks of concrete to transmit the hydraulic thrust and distribute it over a wide area of the ground.


Where hydraulic thrust is upward in case of pipes on sloping ground, anchor blocks would be required to be provided at regular intervals and pipes should be firmly secured to them with steel straps.

⇒ The thrust block shall be constructed in such way that the force resulting from internal pressure in pipe is transferred to the undisturbed soil;

⇒ Anchorage blocks shall have such dimension that upward force resultant from internal pressure in pipe is counterbalanced by its weight;

9.1 Size of Thrust Blocks Every change of direction in a pipe line will cause lateral forces, when the water inside the pipe is brought under pressure. These forces can be calculated as follows: F = C x P x A Where, F = Force (Kg) C = Coefficient, depending on the angle c = 2Sinα/2 for bends c = 0.7 for tee,s c = 1.0 for end caps P = Internal Pressure (bar = kg/cm2 ) A = Cross Sectional Area of Pipe = 0.25 x π x d2 , d = Pipe Diameter (cm) Table: Force (F in kg) in bends, Tee’s and End Caps (under pressure 6 bar/87 psi)

Pipe Dia. (mm)

Angle of Bends Tee End Cap 22.5 0 30 0 45 0 90 0

100 180 240 360 660 330 470 150 410 550 820 1500 740 1100 200 740 1000 1450 2700 1320 1900 250 1150 1500 2300 4200 2100 2900 300 1650 2200 3300 6000 3000 4200

Thrust block must be designed in such way that the force F is transferred from the pipe to the surrounding.


The Contact Area of Thrust Block C = (µ x F)/r Where, C = Contact Area (cm2) µ = Safety Factor = 1.4 F = Force (kg) r = Soil Resistance (kg/cm2) Soil Resistance (r) Soft Clay 0.5 kg/cm2

Medium Clay 0.7 kg/cm2

Sand 1.0 kg/cm2

Force F for 150 mm Tee = 740 kg C for Soft Clay = (1.4 x 740 ) / 0.5 = 2072 cm2 9.2 Size of Anchorage Blocks In case of providing anchorage block, weight of the block must be equal 1.4 x Force F Table: Volumes of Anchorage Blocks (Cubic Meter)

Pipe Diameter Type of Special 22.5 0 & 30 0

Bend 45 0 Bend 90 0 Bend

75 & 100 mm 0.14 0.21 0.39 150 mm 0.32 0.48 0.88 200 mm 0.58 0.85 1.58 250 mm 0.88 1.34 2.45 300 mm 1.28 1.93 3.50

For Internal Pressure up to 5 Bar 10. Different Type of Pipe Joints


Pipe joint is one of the vital point to give attention at time of pipe laying, even many transmission and distribution system with high quality pipe material deteriorate due to poor workmanship and material at the pipe joint. Few common types of pipe joints are given below: a. PVC Coupler Joint with Gasket This type of joint is good for PVC, medium diameter DI and CI pipes. It gets more flexibility also construction procedure is much easier. In this type of joint, two pipe ends are pushed into a socket piece with built in rubber gasket.

b. Push-fit Joint

There should be a groove in the female end of the pipe where rubber can placed. The male end is pushed inside with pressure. There may be provision of more grooves. c. Socket Nipple Joint with Glue (Solvent Cement) For PVC pipes less than 100 mm this type of joint is feasible and economical. On technical point of view this type of joint is not very good due to less flexibility and precise working procedure. Following important points should be considered very carefully to overcome trouble. d. Socket Nipple Joint with Thread This type of Joint is commonly used for small diameter PVC and GI pipes in Bangladesh. It is good for small diameter fittings at in house plumbing. e. Mechanical Joint For bigger diameter pipes and fittings this type of joint is suitable. Also this is commonly used in fitting installation of medium diameter pipes. The maintenance of this type joint is very easy. The common mechanical joints in pipe laying are done by dresser coupling and flange adaptor fittings. f. Welding Joints Presently the use of this joint is very limited in water pipeline. In special cases like production wells, culvert, bridge and railway crossing it is commonly used. It is difficult to maintain also in construction.


UNDERSTANDING UN-ACCOUNTED FOR WATER Unaccounted-for Water (UFW): It can be defined as the difference between the amount of water supplied to the system and the sum of water billed or in other word, equivalent sold water quantity. Q Supplied – Q Sold = Ufw Unaccounted for Water can be categorized into two major heads:

Technical Water Losses: It means actual quantity of water lost from leaking valves, pipe leaks, bursts, over flow from high level reservoir and the like.

Commercial/ Administrative losses: It comprises a number of separate items which do not necessarily refer to lost water but mainly to loss of income for the utility through:

• Unauthorized connection;

• By-pass around the water meter;

• Inaccurate water meters;

• Meters with a relatively high starting flow (i.e. starting flow for a 3/4”

meter is normally 40 l/hr, if the actual starting flow is say 60 l/hr then at

each such service connection 20 l/hr are lost.);

• Broken/tampered water meters;

• Unmetered customers are charged with a flat rate;

• Meter reading errors, calculation error of water consumption;

Non-Revenue Water (NRW): Non-revenue Water refers to water that a water utility does not receive any compensation for. Figure -1 presents details of Non-revenue Water. Water Wastage: Wastage is that quantity of water in the water supply system which is received, but not utilized by the consumers for any useful purpose. Wastage is considered to occur behind the service water meter so it is actually paid for but it is not available to others. At flat rate billed unmetered connections, where the quantity of water used has no influence on the revenue, but only on the availability of water to others. Reduction in wastage will create the possibility for postponement of extensions and corresponding investment due to more water being available in the system, thereby generating additional revenue for Water Supply Department.

Wastage is occurring basically due to the following reasons: • Users keep taps open when no water is required (for both house

connection and street hydrant);

• Overflowing of storage tanks;

• Leaks in the in-house plumbing in service connection;

Loss of Water Due to Leaky Bib Cock:


Sl. No. Leakage Loss of Water (Liter/day) 1 30 drops per minute 8

2 60 drops per minute 17


4 13 mm deep solid stream 153


Measure to Control Wastage:

• Good quality in-house plumbing;

• Good quality service connection and street hydrant fittings;

• Public awareness;

• Appropriate supervision by KWASA engineers before connecting the

service connection to the water supply line.

Figure -1: Key to Non Revenue Water (NRW)

TOTAL WATER PRODUCTION

Total equivalent water quantity sold

Lump sum payment

Water tanker supply

Metered payment

Un-metered payment

Others

Technical losses

Non-Revenue water

Administrative Losses

Tampered meter

Inaccurate meters

Un-metered connection

Illegal connection

Faulty reading

Non-billing/forgotten

Improper consumer

Public hydrant usages

Seepage and over flow of tanks and

reservoirs

Open washout

Pipe leak

Leakage from service connections

Mains flushing, etc.

Others

Others


Leakage Control: The aim of leakage control is to reduce Leakage (and Wastage) in a systematically and economically. Leak Detection Program: Leak detection program includes thorough investigation of water distribution system in order to identify most vulnerable areas causing major leakages in the system, determine water and revenue losses and help the utility to select and implement programs to reduce the distribution system loss and make better use of water resources. The major steps of Modern Leak Detection Program are as follows:

• Selection of Study Area (Pilot Area);

• Survey and Investigation of Pilot Area;

• Pilot Area Preparation;

• Monitoring and Measurement;

• Leak Detection Campaign;

• Post Leak Detection Activity

• Data Analysis and Findings;

• Conclusion and Recommendations. Leak Detection Methods: The leak detection methods generally in practice are:

• Pressure Control;

• Passive Leakage Control;

• Routine or Regular Sounding;

• District Metering;

• Waste Metering;

• Combined District and Waste Metering

Benefits of Leak Detection: The benefits of leak detection are as follows:

• Reduced Water Losses;

• Financial Improvement;

• Increased Knowledge of the Distribution System;

• More Efficient Use of Existing Supplies;

• Safeguarding Public Health and Property;

• Improved Public Relations;

• Reduced Legal Liability.

Leak Detection Equipments: The followings are the popular equipments widely used in leak detection activity:

• Tokimec Portable Ultrasonic Flowmeter (UFP-10);

• Fuji Portable Water Pressure Recorder (FJN-501);

• Fuji Digital Sound Recorder (FSB-8D);

• Fuji Water Leak Detector (Hydrolux DNR-18);


• Fuji Metal Pipe and Cable Locator (PL-960);

• Fuji Metal Locator (F-90M).

Guide to Pipeline Installation

Slide 1


Discussion Summary

� General� Excavation� Transportation and Storing Pipes and Fittings� Installation Technique� Pipe Bedding & Backfilling� Road Crossings� Bridge and Culvert

Slide 2

1. General

Before Starting Construction of Pipelines, It is Necessary to Ensure That:

� All Existing Utility Lines and Services have been Located;� Safety Measures – Arrangements for Lighting, Watching and Signposting etc.;� Obtain Permission from Concerned Authorities for Diverting Traffic;� Observation Regularly the Arrangements so that Inconvenience to Public would be

Minimized.


Slide 3

2. Excavation

� Obtain Road Cutting Approval from Authority;� Identification of Pipe Alignment;� Width of Excavation will be within Design Limit;� Excavation for Invert Elevation Must Allow Pipe Bedding;� Excavated Material Placed might not Create Obstacle to Traffic Movement; .� Shoring

- Shoring is required to ensure workers in excavated trenches are sufficientlyprotected and working in safe condition;

- Ensure the timbers used for upright and bracing are of sufficient size;- Width and shoring must produce sufficient access to permit installation of pipe;

Slide 4


Slide 5

� Depth of Trench: Recommended Depth for Pipelines in Different Situations:- Through bush : 100 cm (min 40 cm)- Along roads : 100 cm- Underneath roads : 120 cm

� Utmost Care Should be Taken to Ensure that Each Pipe is Properly and UniformlyBedded along its Whole Length Except at the Joints.

Slide 6

3. Transportation and Storing Pipes and Fittings

� PVC Pipes should be Transported in a Vehicle having a Bed Long Enough to Provide Support for the Full Length of the Pipe;

� PVC Pipes should be Stored in a Flat Horizontal Position;

� In General the Height of Pipes Stack should not be more than 7 Times of its Diameter.


Slide 7

Slide 8


Slide 9

4. Installation Technique

Operation Involved in the Laying of Pipelines include the Following Steps:

� Preparation of Detailed Maps of Roads and Streets: Showing Position of:

- Curbs;

- Gutters;

- Existing water line;

- Sewerage pipes;

- Gas Pipes;

- Telephone & electric conduits.

� Locating the Proposed Alignment on the Ground: The Trench Line is Marked by Driving Centrally Stakes 30 Meter Apart on Straight Lines and 10 Meter Apart on Curves.

� Excavating the Trenches: The Trench will be Sufficiently Wide to Allow the Pipes to be Laid Properly. The Width of the Trench Generally Depends on:

- Diameter of pipes;

- Soil type and conditions;

- Cost involves.

Slide 10

� Preparation of Laying

- All pipes and fittings would be checked for class;

- The entire length of the barrel of the pipe should be well supported on solid and

even foundation;

- Check the grade level of each pipe laying to ensure that the invert level is

correct;

- Check the alignment to ensure that the deviations at the joints do not exceed

the permissible amounts;

- Pipe jointing should be carefully supervised to ensure the specifications and

manufacturer’s instructions are strictly followed.

- Where concrete surrounds, thrust blocks and valve chambers are to be

provided, attention should be paid to the quality of materials and workmanship

- In no case, pipe shall be jointed before lowering.


Slide 11

� Pipe Laying

- The pipeline should be laid along the straightest route possible;

- Road crossings should be done at 450 angle to the road;

- Pipe should be laid with a continuous rise of about 2% to 5% to high points so

that air can be released through air valves or with a continuous fall to low point.

- Pipes should be laid on firm ground in order to prevent uneven settlement

which may damage pipe joints.

- Couplings (rubber sealing rings) may be loaded unevenly and may cause of

leakage.

Slide 12


Slide 13

Slide 14

5. Pipe Bedding & Backfilling

� The pipe should be laid in bed of sand, 150 mm below the bottom and 150 mm above the top of the pipe barrel and over the full trench width;

� The applied sand should be free of clay, stones or hard lumps;

� In road crossings, sand filling shall be done over the full depth of the trench;

� Backfilling of trenches shall be carried out by excavated soil in 150 mm layers; each layer being thoroughly rammed and consolidated before the succeeding layer is placed.


Slide 15

Slide 16

6. Road Crossings

� Pipes at road crossing preferably be of galvanized (G.I) or mild steel (M.S) casing with a minimum cover of 1.0 meter above the pipe.

� The entire backfilling over the length of the crossing shall consist of sand.

� Where the application of G.I or M.S pipes is not possible, the PVC pipe shall be protected on a proper manner against the pressure caused by traffic.

� The contractor shall operate a system of traffic control;

� Road, drain and channels should be free from obstructions at all time.

� Excavated material should not be placed in such way that it will obstruct the flow of traffic.

� Backfill should be placed in 150 mm lifts and proper effort to be applied to obtain consolidation and compaction.

� Restoration of the roads damaged at the time of laying of pipeline into its original condition.


Slide 17

Slide 18


Slide 19

To

Be

Continued…….

THANKS

Slide 1

7. Details of Standard Valve Chamber

The Main Objective of Valve Chamber in Water Distribution System are:

� Easy Location of Sluice Valve;� Easy Operation in Diverting Water Flow;� Protection from Damage;

The Chambers are also urgently required for:

� Washout Point;� Air Release Valve Location;



Slide 2

The Valve Chamber can be Categorized into:

� Inside the Road for Heavy Traffic;� Off the Road for Light Traffic;

The Points to be Considered during Construction of Chamber:

� Slab shall be constructed in three parts;� Top slab of the chamber shall be flushed with the existing road/ground level;� The base slab of the chamber shall be of CC or RCC;� A concrete block shall be provided under the seat of the sluice valve so that

load of sluice valve does not transfer to PVC pipelines. � Sufficient space shall be provided between floor and pipe for easy

maintenance.� Fittings and joints should not be within brick wall of the chamber� For PVC pipe, casing shall be provided inside brick wall to overcome any

load from the brick wall

Slide 3


Slide 4

Slide 5

8. Anchoring of Pipes and Thrust Block

At all bends, tees, valves and other branch connections, it should be necessaryto provide thrust blocks of concrete to transmit the hydraulic thrust anddistribute it over a wide area of the ground.

Where hydraulic thrust is upward in case of pipes on sloping ground , anchorblocks would be required to be provided at regular intervals and pipes shouldbe firmly secured to them with steel straps.

� The thrust block shall be constructed in such way that the force resultingfrom internal pressure in pipe is transferred to the undisturbed soil ;

� Anchorage blocks shall have such dimension that upward force resultantfrom internal pressure in pipe is counterbalanced by its weight


Slide 6

9.1 Size of Thrust Blocks

Every change of direction in a pipe line will cause lateral forces, when the waterinside the pipe is brought under pressure.

These forces can be calculated as follows:

F = C x P x A

Where,

F = Force (Kg)C = Coefficient, depending on the angle

c = 2Sinα/2 for bendsc = 0.7 for tee,sc = 1.0 for end caps

P = Internal Pressure (bar = kg/cm2 )A = Cross Sectional Area of Pipe

= 0.25 x π x d2 , d = Pipe Diameter (cm)

Slide 7

Pipe Dia.(mm)

Angle of Bends Tee End Cap

22.5 0 30 0 45 0 90 0

100 180 240 360 660 330 470

150 410 550 820 1500 740 1100

200 740 1000 1450 2700 1320 1900

250 1150 1500 2300 4200 2100 2900

300 1650 2200 3300 6000 3000 4200

Table: Force (F in kg) in bends, Tee’s and End Caps (under pressure 6 bar/87 psi)

Thrust block must be designed in such way that the force F is transferred from the pipe to the surrounding.


Slide 8

The Contact Area of Thrust Block

C = (µ x F)/r

Where,

C = Contact Area (cm2)µ = Safety Factor = 1.4F = Force (kg)R = Soil Resistance (kg/cm2)

Soil Resistance (r)

Soft Clay 0.5 kg/cm2Medium Clay 0.7 kg/cm2Sand 1.0 kg/cm2Force F for 150 mm Tee = 740 kgC for Soft Clay = (1.4 x 740 ) / 0.5

= 2072 cm2

Slide 9

9.2 Size of Anchorage Blocks

In case of providing anchorage block, weight of the block must be equal 1.4 x Force F

Table: Volumes of Anchorage Blocks (Cubic Meter)

Pipe Diameter Type of Special

22.5 0 & 30 0 Bend 45 0 Bend 90 0 Bend

75 & 100 mm 0.14 0.21 0.39

150 mm 0.32 0.48 0.88

200 mm 0.58 0.85 1.58

250 mm 0.88 1.34 2.45

300 mm 1.28 1.93 3.50

For Internal Pressure up to 5 Bar


Slide 10

Slide 11


Slide 12

Slide 13

10. Different Type of Pipe Joints

Pipe joint is one of the vital point to give attention at time of pipe laying, even many transmission and distribution system with high quality pipe material deteriorate due to poor workmanship and material at the pipe joint. Few common types of pipe joints are given below:

a. PVC Coupler Joint with Gasket

This type of joint is good for PVC, medium diameter DI and CI pipes. It gets more flexibility also construction procedure is much easier. In this type of joint, two pipe ends are pushed into a socket piece with built in rubber gasket.

b. Push-fit Joint

There should be a groove in the female end of the pipe where rubber can placed. The male end is pushed inside with pressure. There may be provision of more grooves.


Slide 14

Slide 15

c. Socket Nipple Joint with Glue (Solvent Cement)

For PVC pipes less than 100 mm this type of joint is feasible and economical. On technical point of view this type of joint is not very good due to less flexibility and precise working procedure. Following important points should be considered very carefully to overcome trouble.

d. Socket Nipple Joint with Thread

This type of Joint is commonly used for small diameter PVC and GI pipes in Bangladesh. It is good for small diameter fittings at in house plumbing.


Slide 16

e. Mechanical Joint

For bigger diameter pipes and fittings this type of joint is suitable. Also this is commonly used in fitting installation of medium diameter pipes. The maintenance of this type joint is very easy.

The common mechanical joints in pipe laying are done by dresser coupling and flange adaptor fittings.

f. Welding Joints

Presently the use of this joint is very limited in water pipeline. In special cases like production wells, culvert, bridge and railway crossing it is commonly used. It is difficuilt to maintain also in construction

Slide 17

To

Be

Continued…….

THANKS


Slide 1

Khulna WASA 1

Presentation

On

Understanding of Unaccounted for Water (UFW)

Slide 2

Khulna WASA 2

UNDERSTANDING UNACCOUNTED FOR WATER

Un-accounted for Water (UFW)

It can be defined as the difference between the amount of water supplied to

the system and the sum of water billed or in other word, equivalent sold water

quantity.

Q Supplied – Q Sold = Ufw

Unaccounted for Water can be categorized into two major heads:

• Technical Water Losses

• Commercial Water Losses

Technical Water Losses: It means actual quantity of water lost from leaking

valves, pipe leaks, bursts, over flow from high level reservoir and the like.


Slide 3

Khulna WASA 3

Commercial/ Administrative losses: It comprises a number of separate items

which do not necessarily refer to lost water but mainly to loss of income for the

utility through:

• Unauthorized connection;

• By-pass around the water meter;

• Inaccurate water meters;

• Meters with a relatively high starting flow (i.e. starting flow for a 3/4”

meter is normally 40 l/hr, if the actual starting flow is say 60 l/hr then at

each such service connection 20 l/hr are lost.);

• Broken/tampered water meters;

• Unmetered customers are charged with a flat rate;

• Meter reading errors, calculation error of water consumption.


Slide 4

Khulna WASA 4


Water Wastage: Wastage is that quantity of water in the water supply system

which is received, but not utilized by the consumers for any useful purpose.

Wastage is considered to occur behind the service water meter so it is actually

paid for but it is not available to others.

At flat rate billed unmetered connections, where the quantity of water used

has no influence on the revenue, but only on the availability of water to others.

Reduction in wastage will create the possibility for postponement of extensions

and corresponding investment due to more water being available in the

system, thereby generating additional revenue for Water Supply Department.

Wastage is occurring basically due to the following reasons:

• Users keep taps open when no water is required (for both house

connection and street hydrant);

• Overflowing of storage tanks;

• Leaks in the in-house plumbing in service connection;


Slide 5

Khulna WASA 5


Sl. No. Leakage Loss of Water (Liter/day)






Loss of Water Due to Leaky Bib Cock:

Measures to Control Wastage:

• Good quality in-house plumbing;

• Good quality service connection and street hydrant fittings;

• Public awareness;

• Appropriate supervision by KWASA engineers before connecting the

service connection to the water supply line.

Slide 6

Khulna WASA 6


TOTAL WATER PRODUCTION

Total equivalent water quantity sold

Lump sum payment

Water tanker supply

Metered payment

Un-metered payment

Others

Technical losses

Non-Revenue water

Administrative Losses

Tampered meter

Inaccurate meters

Un-metered connection

Illegal connection

Faulty reading

Non-billing/forgotten

Improper consumer lassification

Public hydrant usages

Seepage and over flow of tanks and reservoirs

Open washout

Pipe leak

Leakage from service connections

Mains flushing, etc.

Others

Others

Key to Non Revenue Water (NRW)


Slide 7

Khulna WASA 7


Leakage Control: The aim of leakage control is to reduce Leakage (and

Wastage) in a systematically and economically.

Leak Detection Program: Leak detection program includes thorough

investigation of water distribution system in order to identify most vulnerable

areas causing major leakages in the system, determine water and revenue

losses and help the utility to select and implement programs to reduce the

distribution system loss and make better use of water resources. The major

steps of Modern Leak Detection Program are as follows:

• Selection of Study Area (Pilot Area);

• Survey and Investigation of Pilot Area;

• Pilot Area Preparation;

• Monitoring and Measurement;

• Leak Detection Campaign;

• Post Leak Detection Activity

• Data Analysis and Findings;

• Conclusion and Recommendations.

Slide 8

Khulna WASA 8

Leak Detection Methods: The leak detection methods generally in practice are:

• Pressure Control;

• Passive Leakage Control;

• Routine or Regular Sounding;

• District Metering;

• Waste Metering;

• Combined District and Waste Metering



Slide 9

Khulna WASA 9


Benefits of Leak Detection: The benefits of leak detection are as follows:

• Reduced Water Losses;

• Financial Improvement;

• Increased Knowledge of the Distribution System;

• More Efficient Use of Existing Supplies;

• Safeguarding Public Health and Property;

• Improved Public Relations;

• Reduced Legal Liability.

Slide 10

Khulna WASA 10


Leak Detection Equipments: The followings are the popular equipments widely

used in leak detection activity:

• Tokimec Portable Ultrasonic Flowmeter (UFP-10);

• Fuji Portable Water Pressure Recorder (FJN-501);

• Fuji Digital Sound Recorder (FSB-8D);

• Fuji Water Leak Detector (Hydrolux DNR-18);

• Fuji Metal Pipe and Cable Locator (PL-960);

• Fuji Metal Locator (F-90M).


Slide 11

Khulna WASA 11

THANKS

For

Patience Hearing




Presentation-01-(23-10-10)

Slide 1

ADB TA 7385-BAN : Preparing

the Khulna Water Supply Project

WELCOME

TO

Training on Pumping Equipment,

Guide to Distribution Pipes

Installation and Accounts

Keeping

Participants : Officers/Staffs of KWASA

Date-23 October, 2010


Slide 2

Multiple Choice Questionnaires

1. Main responsibility of KWASA is to

a) Supply safe water to consumer

b) Supply safe & adequate water to consumer

c) Supply safe & adequate water to consumer

with minimum/cheapest price.

2 A Standard W/S system should have

capability to supply safe water

a) As per consumer requirement

b) 3 times per day

c) 24 hours in a day


Slide 3


3. Any W/S System must have

a) Production Well

b) Pipeline

c) Pump Unit

d) Overhead/underground Reservoir

e) House Connection

4. General function of a Pump is to

a) Lift water from ground reservoir to OHT

b) Supply water to consumer

c) Transfer any liquid from one place to

another place.


Slide 4


5. Appropriate type of pump to extract

ground water from production well is

a) Turbine Pump

b) Submersible Pump

c) Surface Centrifugal Pump

6. KWASA are using following types of

pumps to extract ground water from PTW

a) Turbine & Submersible Pump

b) Submersible & Centrifugal Pump

c) Turbine, Submersible & Surface type

Centrifugal Pump


Slide 5


7. Theoretically centrifugal pump can lift

water from a maximum lift of

a) 8.33m

b) 9.33m

c) 10.33m

d) 11.33m

8. Output of a Pump mainly depends on

a) Capacity of drive unit (Motor/Engine)

b) Size, Type & RPM of Pump Unit

c) Power Supply to the Pump Unit.


Slide 6


9. Main parameters to be provided for

procurement of a pump

a) Pump Discharge/Flow Rate

b) Motor Power (HP/KW)

c) Total Field Head and Discharge

10. Higher head pump as compared to field

requirement

a) Is always better

b) May causes serious problem for the system

c) Has no adverse effect to the system


Slide 7

Roles of Pump in a Water Supply System

• Nobody can imagine a Water Supply

System without Pump

• Breakdown of pump unit causes

breakdown of the Water Supply System

• Standby pump is essential for continuous

Water Supply System

• Fig-1.2 & Fig-1.2 indicate roles &

importance of Pump Unit for a Water

Supply System

Exception-A gravity flow system may run

without any pump unit and it depends on

geographical location of source, Treatment

unit & service area.


Slide 8

Fig-1.1 : General Flow diagram of

Water Supply System


Slide 9

Fig-1.2 : W/S System Flow Diagram at

Noakhali Paurashava

IRP

AN OVERVIEW FOR THE COMPLETE WATER SUPPLY SYSTEM OF NOAKHALI POURASHAVA

CWR

Booster Pump Station

Pump

Well Field

House OGR

CONTROL ROOM

LLP

IRP

OHT


Slide 10

Topics on Pump

⇒Definition

⇒Principal of operation

⇒Application

⇒Classification

⇒Example of different types of pumps

used in Water Supply System

⇒Different types of pumps used in

Water Supply System of KWASA


Slide 11

Pump

⇒Pump is a mechanical device by

which liquid can be transferred

from one place to another place.

⇒Function of a pump is to

convert mechanical energy to

hydraulic/pressure energy.

Rotating/reciprocating motion

(mechanical energy) of pump

component causes pressure

difference for flowing of fluid.


Slide 12

Principle of Pump Operation

• One nature of any fluid is to flow from high pressure region toward low presser region.

• The function of a pump is to bring liquid from the source by creating artificial low pressure at suction side and delivering the liquid to targeted point by creating artificial high pressure at the delivery side (see Fig-1.3 & Fig-1.4 )

• Pump cannot run alone. Rotating (impeller, gear, screw etc)/Reciprocating (Piston etc.) component of pump unit is being driven by Engine or Electric Motor and creates pressure difference which in turn causes fluid to flow from one place to another place.


Slide 13

Fig-1.3 Principle of Pump Operation


Slide 14

Fig-1.3 : Principal of operation of a

Centrifugal Pump

Impeller

Water

delivery

due to high

pressure

Water

coming

due to low

pressure

Principal of operation of a

Centrifugal Pump

Pump

Shaft

Volute casing

(pump body)


Slide 15

Application

• There is no other mechanical m/c like

pump which have a wide range of field

application such as

• Irrigation for Agriculture including

fisheries

• Water Supply System

• Sewerage & Drainage Faciolities

• All types of Chemical; Industries

• Swimming Pool

• Flood Control etc.


Slide 16

Classification of Pumps

According to Principal of Operation

• Positive displacement pumps (Such as Reciprocating Pump,Rotary Pump, Diaphragm Pump etc)

• Variable displacement pumps (Such as Centrifugals, propellerpumps, Jets Pumps, Air Lift pumps)

According to Number of Stages

• Single Stage Pumps

• Multi Stage pumps

According to types of suction inlet

• Single Suction Pumps

• Double Suction pumps

According to construction of casing

• Horizontally Split

• Vertically Split

Type of pumps used in urban/municipal water supply system

� Turbine Pump

� Submersible Pump

� Centrifugal Pump


Slide 17

Example of Different types of

Pumps used in W/S System

• Turbine Pump in production well-

• Mixed flow, single/multi-stage centrifugal

–Fig-2.1

• Submersible Pump in production well-

Mixed Flow/ Radial flow, single/multi-

stage centrifugal-Figure-2.2

• Section with Parts details of Multi-stage

Mixed Flow Submersible Pump set-Fig-

2.3

• Pump to lift water from Ground Reservoir

to Overhead Reservoir-Radial flow single

stage centrifugal- Fig-2.4

• Hand Tube well Pump-Manual

Reciprocating Pump


Slide 18

Fig-2.1 Turbine Pump-Motor Assembly

mvKkvb cvBc

cv¤ú evDj

G‡mge-x

Kjvg cvBc

Kjvg cvBc Kvcwjs G‡mge-x

jvBb k¨vdU

dvcv k¨vdU †gvUi

wWmPvR© †nW


Slide 19


Slide 20


Slide 21

Fig-2.4 : Installation drawing for

surface type centrifugal pump

ARRANGEMENT FOR INSTALLATION OF CENTRIFUGAL PUMP

CWR

PUMP HOUSE


Slide 22

Maximum Suction Lift of a Pump

• When water is moving into a pump, the maximum

suction lift is limited by four factors i.e. atmospheric

pressure, vapour pressure, head loss due to friction and

net positive suction lift of the pump itself.

Formula for maximum suction lift of a pump is expressed by

Hs=Ha-Hf-es-NPSH-Fs

Where

Hs=Maximum practical suction lift, m

Ha=Atm. pressure at the water surface, m (10.33m at sea level)

Hf=Head loss due to friction in Suction line, m

es=Saturated vapor pressure of water at specified temp., m

NPSH=Net positive suction head of the pump itself, m

Fs=Factor of safety, which is taken as 0.6m

Example : Determine the maximum practical suction lift for a pump

having discharge of 38l/s operated at an altitude of 300m above

sea level. Water temp=20oC, Friction loss in suction line &

fittings is =1.5m. The NPSH of the Pump, as obtained from the

characteristic curves supplied by the manufacturers is 4.7m.


Slide 23

•Thank You

for your

participation

with attention



Slide 1



WELCOME

TO

Training on Pumping Equipment,

Guide to Distribution Pipes

Installation and Accounts

Keeping

Participants : Officers/Staffs of KWASA

Date-13 November, 2010


Slide 2

Component Parts of a Surface Type

Centrifugal Pump


Slide 3

Static Head of Centrifugal Pump


Slide 4

Static Head of Submersible Pump


Slide 5

Typical Pump Characteristics Curve


Slide 6

Characteristics curve at different

impeller diameters


Slide 7

Family Curve


Slide 8

•Thank You

for your

participation

with attention


Slide 9

Pump Characteristic Curves



Slide 1



WELCOME

TO

Training on Wells & Pumps

Participants : Engineers & Supervisors of

KWASA

Date-01 December, 2010


Slide 2

Topics on Training

A. Class-room Discussion on

• Well Fixture

• Well Terminology

• Well Monitoring

B. Field Demonstration on

• Measurement of SWL & PWL

• Determination of Draw-Down

• Measuring Yield by Trajectory Method

• Determination of specific Capacity Capacity

• Dismantling & Assembling of a submersible pump


Slide 3

Well Fixture


Slide 4

Well Terminology

1. Tube Well : A technical arrangement for tapping

ground water from the pervious zone.(Aquifer)

2. Static Water Level (SWL) : The level at which

the water stands in a well before pumping starts is

called the Static Water Level.

3. Pumping Water Level (PWL) : The level at

which water stands in a well when pumping at any

given rate is called the Pumping Water Level.

4. Draw Down : Draw down at any instant is the

difference between the static water level and the

pumping water level

5. Specific capacity of Well : Specific capacity of a

well is its yield per unit draw down and generally

expressed as cubic meter per hour per meter draw

down.

6. Yield of Well : The yield of a well is the volume

of water from it per unit time (m3/h or GPH).


Slide 5

Measurement of Water flow rate

by Trajectory Tethod


Slide 6


Slide 7


Slide 8

•Thank You

for your

participation

with attention


Slide 9

Pump Characteristic Curves



Slide 1



WELCOME

TO

Training on Wells & Pumps

Participants : Engineers & Supervisors of

KWASA

Date14 December, 2010


Slide 2

Topics on Training

• Discussion on Series operation of

Pump 9 : 30AM to 10: 30 AM

• Discussion on Parallel operation of

Pump 10 : 30AM to 11 : 30 AM

• Revision on previous trainings

carried out so far 11: 30AM to

1 : 15 PM


Slide 3

Series & Parallel Operation of Pump

• Pumps are required to be connected in series

to meet up field head when head of one pump

available is not enough to meet up field head

(Figure-4.1.2). Pressure in transmission pipe

is also minimized by using series connection

of pumps.

No of Pump required in series=total head

required divided by the head available for one

pump.

• Pumps are required to be connected in

parallel to meet up total discharge when

discharge of one pump available is not

enough to meet up total discharge (Figure-

4..2. 2) .

No of Pump required in Parallel=Total

discharge required divided by the discharge

capacity for one pump.


Slide 4


Slide 5


Slide 6


Slide 7


Slide 8

•Thank You

for your

participation

with attention



Slide 1

ADB TA 7385-BAN : Preparing the Khulna Water Supply Project


Technical Training Program-5

Date : 22-12-2010

Venue : Conference Room

Topics on Training

Basic of Electricity 9 : 30- 10:30

•Refreshment 10 : 30- 10:45

•Electrical Control & Protective Component used in

Pumping Plant (including field demonstration).10: 45- 11:45

•Measuring Instrument in Pumping Plant 11 : 45- 12:30

•Circuit Diagram of Elec. Equipment in Pumping Plant12 : 30- 1:15


Slide 2

Session-1

BASIC OF ELECTRICITY

⇒ we`ywe`ywe`ywe`y¨̈̈̈ZZZZ wKwKwKwK ????

⇒ cwievnx cwievnx cwievnx cwievnx (Conductor), ‡iva ‡iva ‡iva ‡iva (Resistance)

⇒ ‡fvë ‡fvë ‡fvë ‡fvë (Voltage) ,‡fvë ‡fvë ‡fvë ‡fvë (Volt)

⇒ Kv‡i›U (Kv‡i›U (Kv‡i›U (Kv‡i›U (Current), G, G, G, G¨̈̈̈vw¤úqvi vw¤úqvi vw¤úqvi vw¤úqvi (Ampier)

⇒ cvwbi cÖevn I we`ycvwbi cÖevn I we`ycvwbi cÖevn I we`ycvwbi cÖevn I we`y¨̈̈̈r cÖev‡n mv`„kr cÖev‡n mv`„kr cÖev‡n mv`„kr cÖev‡n mv`„k¨̈̈̈ tttt

we`ywe`ywe`ywe`y¨̈̈̈rrrr cÖevncÖevncÖevncÖevn (G(G(G(G¨̈̈̈vw¤úqvvw¤úqvvw¤úqvvw¤úqv )))) cvwbicvwbicvwbicvwbi cÖevncÖevncÖevncÖevn

(Nbwgt/N›Uv)(Nbwgt/N›Uv)(Nbwgt/N›Uv)(Nbwgt/N›Uv)

KbvWvKUiKbvWvKUiKbvWvKUiKbvWvKUi cvBvccvBvccvBvccvBvc jvBbjvBbjvBbjvBb

‡iwRó‡iwRó‡iwRó‡iwRó¨̈̈̈vÝvÝvÝvÝ wd«Kkbwd«Kkbwd«Kkbwd«Kkb jmjmjmjm

‡fv‡ëR‡fv‡ëR‡fv‡ëR‡fv‡ëR cvwbicvwbicvwbicvwbi PvcPvcPvcPvc

‡fv‡ëRWªc‡fv‡ëRWªc‡fv‡ëRWªc‡fv‡ëRWªc ‡cÖmvi‡cÖmvi‡cÖmvi‡cÖmvi WªcWªcWªcWªc


Slide 3


Slide 4

Session-2

Electrical Protection & Control Component

⇒myBPu wK , eënvi I cÖKvi‡f`

⇒ wdDR wK, eënvi I cÖKvi‡f`

⇒ mvwK©U ‡eªKvi wK, e¨venvi I cÖKvi‡f`

⇒ g¨vM‡bwUK KbUvKUi wK, eënvi I Qwe

⇒ Ifvi‡nW wi‡j wK, eënvi I Qwe

⇒ UvBgvi wK, eënvi I Qwe


Slide 5


Slide 6


Slide 7


Slide 8

Session-3

Measuring Instrument in Pumping Plant

⇒ ‡fvëwgUvi wK , eënvi I GKK

⇒ G‡gUvi wK, eënvi I GKK

⇒ GbvwR© wgUvi wK, eënvi I GKK

⇒ ‡d¬vwgUvi wK, eënvi I GKK

⇒ ‡cÖmviwgUvi wK, eënvi I GKK





Slide 9


Slide 10

Session-3 : 1:30 Minutes

Measuring Instrument

⇒ ‡fvëwgUvi wK , eënvi I GKK

⇒ G‡gUvi wK, eënvi I GKK

⇒ GbvwR© wgUvi wK, eënvi I GKK

⇒ ‡d¬vwgUvi wK, eënvi I GKK

⇒ ‡cÖmviwgUvi wK, eënvi I GKK





Slide 11

Session-4 : 1:30 Minutes

Electrical Circuit Diagram

GjwUGjwUGjwUGjwU cccc¨̈̈̈v‡bjv‡bjv‡bjv‡bj

⇒ wK wK hš¿vsk _v‡K

⇒ ‡KvbwUi wK KvR

⇒ e-K WvqvMÖvg

‡gvUi‡gvUi‡gvUi‡gvUi K‡›UªvjK‡›UªvjK‡›UªvjK‡›Uªvj BDwbUBDwbUBDwbUBDwbU

⇒ wK wK hš¿vsk _v‡K

⇒ ‡KvbwUi wK KvR

⇒ c¨v‡bj †ev‡W© Zv‡`i Ae¯’vb †Kv_vq


Slide 12


Slide 13


Slide 14



Slide 1

ADB TA 7385-BAN : Preparing the Khulna Water Supply Project.


Technical Program-10

Date : 20-01-2011

Venue : Hotel Castle Salam

Participants: Engineers & Supervisors

Topics on Class-room Discussion 9: 30AM-1:00 PM

•Un-accounted for Water (UFW)

•Continuity Equation

•Bernaullie’s Equation

•Water Hammer

•Cavitation

•Air Locking

• Principle of Water Treatment

Slide 2


Slide 3

Slide 4


Slide 5

Pressure Relationship

Slide 6

Water Hammer, Air Locking, Cavitations etc.

• Water Hammer is a very destructive force that exists in a pumping

installation or piping system when the rate of flow changes abruptly for

various reasons.

• Cavitation : While pumping water, if the pressure at any point inside a

pump drops below the vapour pressure, corresponding to the

temparature of the liquid, the liquid will vaporize and form cavities of

vapour. The bubbles of vapour are carried along with the stream until a

reason of higher pressure is reached, when they collapse or expolde with

tremendous shock on adjacent walls. This phenomenon is called

cavitation.

• Air Locking : Accumulation of air (contained in water) in the elevated

portion of a pipeline system is called Air Locking which causes serious

resistance in the flow of liquid. Air release valve is used to remove air from

the pipeline.


Slide 7

Principle of Water Treatment

Slide 8


Slide 9

Typical Section of Iron Removal Plant

Slide 10

Standard Details of Washout


Slide 11

• Thank You for your

Attentive




Slide 1



Technical Training Program-6

Date : 05-01-2011

Venue : Conference Room

Topics on Class-room Discussion 9: 30-11:30 AM

•Installation of Submersible Pump

•Operation

•Maintenance

•Monitoring

•Trouble Shooting

•Points to be considered during O & M of Electrical equipment

•Causes of loss of energy in pump operation

•Review on Survey & Monitoring Results of Existing PTW of KWASA

Topics on Field Demonstration 11:45– 1:00 PM

Visit to nearby Pump House and demonstration on operation and monitoring of pump & well.

Slide 2

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• ivBRviivBRviivBRviivBRvi cvB‡cicvB‡cicvB‡cicvB‡ci eeee¨̈̈̈vmvmvmvm AbyhvqxAbyhvqxAbyhvqxAbyhvqx gagagaga¨̈̈̈w¯’Zw¯’Zw¯’Zw¯’Z cvwbicvwbicvwbicvwbi IRbIRbIRbIRb||||

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• ‡‡‡‡gvUigvUigvUigvUi Kv‡bKkbKv‡bKkbKv‡bKkbKv‡bKkb t t t t

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• ÷÷÷÷vwU©svwU©svwU©svwU©s t t t t

• KwgkwbsKwgkwbsKwgkwbsKwgkwbs tttt.


Slide 3

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• cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©¨̈̈̈

• 2.2| 2.2| 2.2| 2.2| cwiPvjbvcwiPvjbvcwiPvjbvcwiPvjbv

• cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©¨̈̈̈vejx tvejx tvejx tvejx t

• cv¤ú Pvjy Kiv tcv¤ú Pvjy Kiv tcv¤ú Pvjy Kiv tcv¤ú Pvjy Kiv t

• cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)

• cv¤ú e‡Üi wbqgvejxcv¤ú e‡Üi wbqgvejxcv¤ú e‡Üi wbqgvejxcv¤ú e‡Üi wbqgvejx

• Ri“ix wfËx‡Z cv¤ú eÜRi“ix wfËx‡Z cv¤ú eÜRi“ix wfËx‡Z cv¤ú eÜRi“ix wfËx‡Z cv¤ú eÜ

• mvemvemvemve----gviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b tgviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b tgviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b tgviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b t

Slide 4

2.3| 2.3| 2.3| 2.3| i¶Yv‡e¶Yi¶Yv‡e¶Yi¶Yv‡e¶Yi¶Yv‡e¶Y

• i¶bv‡e¶b cwiKíbv I wb‡`©kvejxi¶bv‡e¶b cwiKíbv I wb‡`©kvejxi¶bv‡e¶b cwiKíbv I wb‡`©kvejxi¶bv‡e¶b cwiKíbv I wb‡`©kvejx

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1. cv¤ú, cv¤ú, cv¤ú, cv¤ú,

2.2.2.2. ivBRvi cvBcivBRvi cvBcivBRvi cvBcivBRvi cvBc

3.3.3.3. ‡gvUi‡gvUi‡gvUi‡gvUi

4.4.4.4. cvBc jvBb, cvBc jvBb, cvBc jvBb, cvBc jvBb,

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7.7.7.7. cv¤ú Ni I cwi‡ek6cv¤ú Ni I cwi‡ek6cv¤ú Ni I cwi‡ek6cv¤ú Ni I cwi‡ek6

8.8.8.8. bjK‚cbjK‚cbjK‚cbjK‚c


Slide 5

gwbUwis Kvh©gwbUwis Kvh©gwbUwis Kvh©gwbUwis Kvh©¨̈̈̈vejx vejx vejx vejx isisisis

• ‰`wbK gwbUwis Kvh©‰`wbK gwbUwis Kvh©‰`wbK gwbUwis Kvh©‰`wbK gwbUwis Kvh©¨̈̈̈vejx (cv¤ú PvjK):vejx (cv¤ú PvjK):vejx (cv¤ú PvjK):vejx (cv¤ú PvjK):

• mvßvwnK gwbUwis Kvh©mvßvwnK gwbUwis Kvh©mvßvwnK gwbUwis Kvh©mvßvwnK gwbUwis Kvh©¨̈̈̈vejx (cv¤ú PvjK, IqvUvi vejx (cv¤ú PvjK, IqvUvi vejx (cv¤ú PvjK, IqvUvi vejx (cv¤ú PvjK, IqvUvi

mycvi): mycvi): mycvi): mycvi):

• gvwmK gwbUwis Kvh©gvwmK gwbUwis Kvh©gvwmK gwbUwis Kvh©gvwmK gwbUwis Kvh©¨̈̈̈vejx (cv¤ú PvjK, IqvUvi mycvi): vejx (cv¤ú PvjK, IqvUvi mycvi): vejx (cv¤ú PvjK, IqvUvi mycvi): vejx (cv¤ú PvjK, IqvUvi mycvi):

• ‰ÎgvwmK gwbUwis Kvh©‰ÎgvwmK gwbUwis Kvh©‰ÎgvwmK gwbUwis Kvh©‰ÎgvwmK gwbUwis Kvh©¨̈̈̈vejx (IqvUvi mycvi, vejx (IqvUvi mycvi, vejx (IqvUvi mycvi, vejx (IqvUvi mycvi,

†gKvwbK): †gKvwbK): †gKvwbK): †gKvwbK):

• evrmwiK gwbUwis Kvh©evrmwiK gwbUwis Kvh©evrmwiK gwbUwis Kvh©evrmwiK gwbUwis Kvh©¨̈̈̈ejx (IqvUvi mycvi):ejx (IqvUvi mycvi):ejx (IqvUvi mycvi):ejx (IqvUvi mycvi):

Slide 6

cv¤ú †gvUi cwiPvjbvq mgmcv¤ú †gvUi cwiPvjbvq mgmcv¤ú †gvUi cwiPvjbvq mgmcv¤ú †gvUi cwiPvjbvq mgm¨̈̈̈vejx, m¤¢vevejx, m¤¢vevejx, m¤¢vevejx, m¤¢ve¨̈̈̈ KvibKvibKvibKvib GesGesGesGes Dnvi mgvavb Dnvi mgvavb Dnvi mgvavb Dnvi mgvavb (we‡klfv‡e UvievBb Ges mvegvimxej

cv‡¤úi Rb¨)

• myBP Ab Kiv m‡Ë¡I cv¤ú †gvUi Pwj‡Z‡Q bv

• cv¤ú P‡j A_P cvwb D‡V bv ev Kg D‡V Ges wWmPvR© †cÖmvi L~e Kg nq

• cv¤ú Pvjy nIqvi wKQy¶Y ciB cvwb mieivn eÜ n‡q hvq

• cv¤ú Pvjbv Ki‡Z AwZwi³ kw³i cÖ‡qvRb nq (‡gvUi Kv‡i›U †ekx Uv‡b)

• cv¤ú †gvU‡ii K¤úb ev A¯^vfvweK kã AbyfyZ nq


Slide 7

. ‰e`y‰e`y‰e`y‰e`y¨̈̈̈wZK miÄvgvw` cwiPvjbv I i¶Yv‡e¶Y Kv‡R wZK miÄvgvw` cwiPvjbv I i¶Yv‡e¶Y Kv‡R wZK miÄvgvw` cwiPvjbv I i¶Yv‡e¶Y Kv‡R wZK miÄvgvw` cwiPvjbv I i¶Yv‡e¶Y Kv‡R

wbivcËv i¶vi RbwbivcËv i¶vi RbwbivcËv i¶vi RbwbivcËv i¶vi Rb¨̈̈̈ mZ©KZv Aej¤^b|mZ©KZv Aej¤^b|mZ©KZv Aej¤^b|mZ©KZv Aej¤^b|

‡h †Kvb ê`y¨wZK miÄvgvw` cwiPvjbv I i¶Yv‡e¶‡Yi mgq wbivcËvi Rb¨ wbæwjwLZ mZ©KZv Aej¤^b Acwinvh©¨ t • ‰e`y¨wZK eZ©bxi †gBb myBP eÜ Kivi c~‡e© †Kvb ai‡bi i¶Yv‡e¶Y KvR Kiv hvB‡e bv |

• hZUzKz m¤¢e mKj ai‡Yi ê`y¨wZK KvR w`‡bi †ejvq Ges ch©vß Av‡jvi Dcw¯’wZ‡Z m¤úbœ Kwi‡Z nB‡e|

• mKj ai‡Yi ê`y¨wZK ‡givg‡Zi KvR h_vh_ KZ…c‡¶i Aby‡gv`b K…Z jvB‡mÝ cÖvß †jv‡Ki gva¨‡g Kwi‡Z nB‡e|

• ‰e`y¨wZK mK ev `~N©Ubv Gov‡bvi Rb¨ †h †Kvb ai‡Yi ê`y¨wZK KvR Kivi mgq Bbmy‡jUi RvZxq ivevi †M-ve, Kv‡Vi RyZv BZ¨vw` eënvi Kwi‡Z nB‡e|

• ‰e`y¨wZK m‡K Avµvš— †h †Kvb e¨w³i ms¯úk© cwinvi Ki“b | hZ ZvovZvwo m¤¢ê ê`y¨wZK cÖavb myBP‡K Ad Ki“b| ê`y¨wZK m‡K Avµvš— e¨w³‡K Kv‡Vi i‡Wi gZ †Kvb Bbmy‡jUi w`‡q gy³ Kiv DwPr|

Slide 8

Major Factors Influencing Wastage of energy In Pump Installation

• Wrong foot-valve and strainer units, causing high frictional losses and reduced discharges

• Undersized suction and/or delivery pipes

• Unnecessary height of delivery pipe and/or too long suction pipes

• Non-matching of pump with pumping head and discharge required

• Use of electric motors/engines with low efficiency

• Use of over-sized electric motors. i.e. under-loading of motor which reduces the power factors of the motor and hence the efficiency or use of over-sized engines like tractor to operate a small pump.

• Use of inferior quality pipes and or wrong pipe fittings.

• Non-replacement of worn-out bearings of pumps and electric motors and absence of periodic oiling and greasing of bearings.

• Excessive suction lift.

• Non-availability of information on draw down-discharge characteristics with those of well characteristics.

• Use of suction and delivery pipes with excessive friction.

• Leaky joints in the suction/delivery pipeline

• Too-tight gland packing, clogging of impeller/foot valve and improper bearings


Slide 1



Training on O & M of PTW (Program-8)

Date : 11-01-2011

Venue : KWASA Premises

Duration : 2: 30 PM-5:30 PM

Participants: Pump Operators (65 Nos)

Topics:

•Production Well Pump House

•Operation

•Maintenance

•Monitoring

•Trouble Shooting

•Points to be considered during O & M of Electrical equipment

Slide 2

Drcv`b bjKyc cv¤ú nvDR

• 2.1 Drcv`b bjK‚c

• 2.2 mve-gviwmej cv¤ú-‡gvUi ‡mU

• 2.3 cvBc jvBb

• 2.4 ‰e`y¨wZK K‡›Uªvj c¨v‡bj


Slide 3

Slide 4


Slide 5

cvw¤ús ccvw¤ús ccvw¤ús ccvw¤ús c-v‡›U ev‡›U ev‡›U ev‡›U e¨̈̈̈eüZ ‰e`yeüZ ‰e`yeüZ ‰e`yeüZ ‰e`y¨̈̈̈wZK wbqš¿b I wZK wbqš¿b I wZK wbqš¿b I wZK wbqš¿b I

cÖwZi¶v hš¿vw`cÖwZi¶v hš¿vw`cÖwZi¶v hš¿vw`cÖwZi¶v hš¿vw`

• 1.1| wdDRwdDRwdDRwdDR

• 1.2| mvwK©U †eªKvi mvwK©U †eªKvi mvwK©U †eªKvi mvwK©U †eªKvi (Circuit Breaker)

• 1.3| Ifvi‡jvW wi‡j Ifvi‡jvW wi‡j Ifvi‡jvW wi‡j Ifvi‡jvW wi‡j (Overload Relay)

• 1.4| gggg¨̈̈̈vM‡bwUK KbUvKUivM‡bwUK KbUvKUivM‡bwUK KbUvKUivM‡bwUK KbUvKUi (Magnetic

Contactor)

• 1.5| Kv‡i›U UªvÝdigviKv‡i›U UªvÝdigviKv‡i›U UªvÝdigviKv‡i›U UªvÝdigvi (Current Transformer) :

• 1.6| UvBgviUvBgviUvBgviUvBgvi (Timer)

Slide 6

cwiPvjbv I i¶Yv‡e¶YcwiPvjbv I i¶Yv‡e¶YcwiPvjbv I i¶Yv‡e¶YcwiPvjbv I i¶Yv‡e¶Y

• cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©cwiPvjbv I i¶Yv‡e¶‡Yi Zvrch©¨̈̈̈

2.2| 2.2| 2.2| 2.2| cwiPvjbvcwiPvjbvcwiPvjbvcwiPvjbv

• cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©cv¤ú Pvjy Kivi c~‡e© KiYxq Kvh©¨̈̈̈vejx tvejx tvejx tvejx t

• cv¤ú Pvjy Kiv tcv¤ú Pvjy Kiv tcv¤ú Pvjy Kiv tcv¤ú Pvjy Kiv t

• cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)cv¤ú Pvjy Ae¯’vq ch©‡e¶bxq welqvejx (gwbUwis)

• cv¤ú e‡Üi wbqgvejxcv¤ú e‡Üi wbqgvejxcv¤ú e‡Üi wbqgvejxcv¤ú e‡Üi wbqgvejx

• Riix wfËx‡Z cv¤ú eÜRiix wfËx‡Z cv¤ú eÜRiix wfËx‡Z cv¤ú eÜRiix wfËx‡Z cv¤ú eÜ

• mvemvemvemve----gviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b gviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b gviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b gviwmej cv¤ú cwiPvjbvq mveavbZv Aej¤^b


Slide 7

i¶Yv‡e¶Yi¶Yv‡e¶Yi¶Yv‡e¶Yi¶Yv‡e¶Y

• i¶bv‡e¶b cwiKíbv I wb‡`©kvejxi¶bv‡e¶b cwiKíbv I wb‡`©kvejxi¶bv‡e¶b cwiKíbv I wb‡`©kvejxi¶bv‡e¶b cwiKíbv I wb‡`©kvejx

µwgK bs welq µwgK bs welq µwgK bs welq µwgK bs welq ‰`wbK‰`wbK‰`wbK‰`wbK gvwmKgvwmKgvwmKgvwmK evrmwiKevrmwiKevrmwiKevrmwiK

1. cv¤ú, cv¤ú, cv¤ú, cv¤ú,

2.2.2.2. ivBRvi cvBcivBRvi cvBcivBRvi cvBcivBRvi cvBc

3.3.3.3. ‡gvUi‡gvUi‡gvUi‡gvUi

4.4.4.4. cvBc jvBb, cvBc jvBb, cvBc jvBb, cvBc jvBb,

5.5.5.5. fvj¦, wgUvi Ges wdwUs BZfvj¦, wgUvi Ges wdwUs BZfvj¦, wgUvi Ges wdwUs BZfvj¦, wgUvi Ges wdwUs BZ¨̈̈̈vw` vw` vw` vw`

6.6.6.6. ‰e`y‰e`y‰e`y‰e`y¨̈̈̈wZK K‡›Uªvj cwZK K‡›Uªvj cwZK K‡›Uªvj cwZK K‡›Uªvj c¨̈̈̈v‡bj v‡bj v‡bj v‡bj

7.7.7.7. cv¤ú Ni I cwi‡ekcv¤ú Ni I cwi‡ekcv¤ú Ni I cwi‡ekcv¤ú Ni I cwi‡ek

8.8.8.8. bjK‚cbjK‚cbjK‚cbjK‚c

Slide 8

gwbUwis Kvh©gwbUwis Kvh©gwbUwis Kvh©gwbUwis Kvh©¨̈̈̈vejx vejx vejx vejx isisisis

• ‰`wbK gwbUwis Kvh©‰`wbK gwbUwis Kvh©‰`wbK gwbUwis Kvh©‰`wbK gwbUwis Kvh©¨̈̈̈vejx (cv¤ú PvjK):vejx (cv¤ú PvjK):vejx (cv¤ú PvjK):vejx (cv¤ú PvjK):

• mvßvwnK gwbUwis Kvh©mvßvwnK gwbUwis Kvh©mvßvwnK gwbUwis Kvh©mvßvwnK gwbUwis Kvh©¨̈̈̈vejx (cv¤ú PvjK, IqvUvi vejx (cv¤ú PvjK, IqvUvi vejx (cv¤ú PvjK, IqvUvi vejx (cv¤ú PvjK, IqvUvi

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KWASA Finance Revenue and Accounts Training

25 January 2011

Introduction:

Training is an integral component of any kind of development program. Rapid development of

the country is only possible through proper use of modem science and technology and this

necessitates human resource development through appropriate training. It actually involves

project preparation, appraisal, implementation and financing. For achieving efficiency in those

aspects of project implementation and management, training has been recognized as a major

input. It has been considered as an essential element for creating awareness, improving skills

and bringing a change in the attitude of the concerned staff members.

The training 'need' is the lack of something and a systematic-training program can overcome this

shortfall. Training is, thus, a process of increasing knowledge, developing skill and changing the

attitude of the human resources so as to enhance their job performance. To be effective, a

training program needs to be adjusted to the needs of individual employees. In order to design a

needs based training program, a training needs assessment is a pre-requisite. The program

consists of course design, development and implementation of the program according to the

terms of reference and specifications of the requesting client organization. It has been found

that the development of human resources - "human capital" - has been critical to long term

success of such programs. And by "human capital" it is not only meant for the implementing staff

but also the intended beneficiaries in the program areas.

Formal training in a classroom is one of the most expensive communication methods available. It

requires physical facilities, trainers, transportation and a great deal of time on the part of both

the trainees and the trainers. All of the training elements were made available by the KWASA

and the ADB TA project.

Training Approach

The training institutions in the developing countries of this region used to have, until the recent

past, a conventional approach to training characterized by a one way communication. The need

for change in favor of a participatory approach to training has increasingly been realized since

the 1980s. This approach emphasizes the increased use of methods and techniques which allow

greater interaction between the trainers and the trainees in the process of learning. The trainees

are generally called -participants' and the trainers are called facilitators, a gaming process thus

becomes a mutually shared activity. Efforts are being made to incorporate this approach into the

planning, management and evaluation of training programs on development activities

Objectives of the course:

The specific objectives of the training course will be as follows:

i. to help the staff members of the Accounts, Revenue, Store and Finance Sections to

acquire practical knowledge in record and repotting of financial transaction.

ii. to enable the staff members to acquire knowledge and understanding of the various

aspects of financial management, such as cash management, recording and reporting

of financial transactions of day today affairs.


iii. to enable the staff members of accounts and financial, revenue and store section to

help management in improving organizational performance and advise management in

proper planning and appropriate decision making.

iv. to enable the staff members of accounts and finance, stores and revenue sections to

acquire knowledge and understanding of financial management budget, and budgetary

control, breakeven analysis in the context of practical problems of the present time.

v. to create awareness and interest among the staff members about the benefit of the

training on the proposed activities.

vi. to make the accounts keeping concept clear to the staff members of

vii. Accounts, Revenue, and Finance Section. And to give them knowledge on finance and

billing system.

viii. to increase knowledge, develop skills; bring changes in the attitudes of the trainees for

making improvement of the KWASA.

ix. to enhance managing and organizing, capability of the staff members.

x. to bring about changes in the attitude of the staff members so as to adopt innovative

ideas for improving the financial condition of KWASA.

Training Technique:

TNA - Set Training objectives - Design Programme

1. On the job training

2. Job instruction Training

3. Lectures and group discussions

4. Audiovisual Training

5. Training for team building and team work

6. Using time most effectively-Time management

7. Evaluating Training Efforts.

8. Motivational training to the staff members for better performance

Training Contents:

Brief training contents are as follows

- Accounting concepts, convention and principles

- Documentation and preparation of vouchers

- Double entry concepts and maintenance of accounts under double entry system

- Cash book, Bank book and bank reconciliation statement

- Preparation of financial statements

- Analysis and interpretation of financial statements

- Cash and fund flew analysis

- Concept of financial management

- Breakeven analysis

The detailed training course is as follows:

A. Books of Account and Forms and Forms required for maintaining Accounts of KWASA

1. Books of Accounts and Forms required for KWASA.

2. Other Records and Registers required for keeping accounts of KWASA.

3. Preparation of voucher & Journal Vouchers Trial Balance, Cash Planning, Cash book and Bank

book


B. Receipt and Payment Vouchers

1. Introduction to relevant Vouchers and Documents required in preparation of accounts.

2. Items of receipts

3. Preparation of Receipt Voucher and Recording (credit voucher)

4. Items of Payment

5. Preparation of Payment Voucher and Recording (Debit voucher)

6. Preparation of Journal Voucher

C. Banking of KWASA.

1. Types of Bank Accounts and their control

2. Collection of Bills through Banks

3. Bank Reconciliation Statement.

D. Writing of Cash Book

1. Posting of figures from Cash Book to General and Subsidiary Ledgers

E. General Ledger/ Control Ledger

1. Writing and Balancing of General Ledger

2. General Ledger and Trial Balance

F. Subsidiary Ledger

1. Types of Subsidiary Ledger

2. Writing and Balancing of Subsidiary Ledgers

G. Adjustment Entries

1. Types of Adjustment Entries

2. Adjustment through Journal Book

3. Adjustment through Journal Voucher

4. Adjustment of Advances to staff, contractors, suppliers etc.

5. T.A. Bills- Checking + Passing

H. Trial Balance

1. Types of Trial Balance

2. Preparation of different Types of Trial Balance

3. Preparation of Income Statement

I. Balance Sheet

1. Items of Assets and Liabilities

2. Preparation of Balance Sheet and related schedule of outstanding assets & liabilities.

J. Budget

1. Budget –Physical Targets in the Budget

2. Resource of Budget

3. Utilization of Budgeted Resources

4. Preparation of Budget and Budget Variance Report

K. Stock

1. Types of Stock Books and Preparation of Stock Books (Inventory Books).

2. Physical Verification of Stock.


L. Others

1. Accounting Ratios

2. Business Plan and Financial Management Improvement Plan

3. Field visit to Faridpur WASA to look into their Financial Management System and Accounts

Keeping System

Actual Training:

A total of 17 staff members were trained from the Accounting, Finance, Revenues and Store

Section of KWASA. All facilities required to conduct the training course was available at the

proposed place for training. They are conducting such training courses for their employees as a

routine matter. As such there was no problem for conducting training. The training programs

were supervised locally by the coordinator of training who was designated as such from one of

the trainers of the project. Moreover the Deputy Team Leader supervised all training programs as

routine work. Monitoring and evaluation has been done by the Deputy Team Leader for the

training program. The evaluation of trainees for the course has been done locally at the class

room by the project assistant of the project. The trainers of the training course have reported

the training activities to the Deputy Team Leader Who have also monitored the training program.

Training activities and the Program

i. Selection of participants as per eligibility of the participant for the course

ii. Designing the course curriculum including training plan, lesson plan/Sheet etc.

iii. Institutional/arrangements including availability of training facilities.

iv. Fund mobilization.

v. Selection of trainers and their availability.

vi. Implementation of the training course.

vii. Supervision of the program.

viii. Monitoring & evaluation of the program.

ix. Reporting.

x. Documentation of the training program.

Conclusion:

During the training, the trainees reported that they have learned many things in the areas of

accounts keeping, budgeting, provision of depreciation, bank reconciliation statement, cash

planning, cash budget, financial management , etc. Developed training materials and distributed

among the trainees before the beginning of the class. These materials would be very much

helpful to enrich their knowledge of keeping accounts.

Besides this accounts keeping, training on motivation, time management, team building and

team building and team work also given at the request of the trainees.

This training program would be useful and helpful to them in many ways. Their (trainees)

conception about Double Entry System, Debit, Credit etc, are now clear to them. They wanted to

express their gratefulness and thanks to the ADB TA project for arranging such a training program

for them.

Education level of the trainees was not equal. Some of them were much below the expectations

and as such their understanding was very low. These training programs is expected to increase

their understanding and thinking power However, the trainees were very much attentive and

participative. The trainees expressed their opinions that the duration of the course was very


short. They recommended that the duration of the future courses for Accounts keeping

should be increased to15 days.

Annex 1

Training Program for the Accountants of KWASA (From 13 Dec 2010 to 22 Dec 2010)


2011

13 January

16 January

18 January

20 January

25January

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

2.00-3.00

3.00-4.00

4.00-5.00

Books of Accounts and Forms required for

KWASA.

Other Records and Registers required for

keeping accounts of KWASA.

Introduction to relevant Vouchers and

Documents required in preparation of

accounts.

Preparation of Receipt and Payments Vouchers

and Recording.

Debit Voucher and Credit Voucher Journal

Voucher

Types of Bank Accounts and their control.

Collections of Bills through Banks.

Bank reconciliation Statement.

Preparation of Double column Cash book &

Petty Cash Book, Imprest System of Petty Cash

Book.

Posting of figures from Cash Book to General

and Subsidiary Ledgers.

Writing and Balancing of General Ledger

General Ledger and Trial Balance.

Writing and Balancing of Subsidiary Ledgers.

Types of Adjustment Entries.

Adjustment through Journal Book

Adjustment through Journal Voucher.

Adjustment of Advances to staff, contractors,

suppliers etc.

Types of Trial Balance.

Preparation of different Types of Trial Balance.

Preparation of Income Statement.

Items of Assets and Liabilities.

Preparation of Balance Sheet and related

ALL Classes will be

taken by Prof. Dr.

Md. Kayemuddin


26

January

10-11

11-12

12-1.00pm

2.00-3.00

3.00-4.00

4.00-5.00

schedule of outstanding assets & liabilities

schedule.

Budget –Physical Targets in the Budget.

Resource of Budget.

Utilization of Budgeted Resources.

Preparation of Budget and Budget Variance

report.

Accounting Ratio.

Preparation of break-even and their uses.

Fund Flow, Cash planning & Budgeting.

Business Plan and Improving Financial

Management System.

List of Officers and Staff

Members of Finance,

Accounts and Revenue Sections

Sl.No. Name Designation

1 Khademul islam Commercial Manager

2 Jasmin Akter Accounts Officer

3 Biplob Kanti Das Revenue Officer

4 M.M. Iftakarul Islam Revenue Officer

5 M. M. Nadimul Islam Revenue Officer

6 Bhola Biswash Budget Officer

7 Dara Shiko Accountant

8 Kazi Ileash Hossain Account Assistant

9 Mizanur Rahman Cashier

10 Mobarok Ali Account Assistant

11 Gazi Saleh Habib Store keeper

12 Probin Kumar Biswash Assistant Store keeper

13 Abdul alim Account Assistant

14 Md. Golam jafri Revenue Supervisor

15 Sk. Abdul Motaleb Revenue Assistant

16 Mohim Kumar Joarder Revenue Assistant

17 S.M. Abdur Rashid Revenue Assistant

Appendix 10 ANNEX C EXISTING AND FUTURE NETWORK

1

Appendix-03

Existing Network

Appendix 10 ANNEX C EXISTING AND FUTURE NETWORK

2

Proposed Network

Appendix 10 ANNEX D DRAFT METER CONNECTION POLICY



CONNECTION POLICY FOR PIPED WATER SUPPLY

SERVICE CONNECTIONS

2010


ADB TA 7385 – BAN


Contents 1. Introduction .............................................................................................................................................. 1

2. Types of connection .................................................................................................................................. 1

3 Application Procedure ............................................................................................................................... 2

4. Approval of Connection ............................................................................................................................ 3

5. Services to Low Income Customers .......................................................................................................... 3

6. Connection Charges .................................................................................................................................. 3

7. Installation and Technical Specifications .................................................................................................. 3

8. Inspection of customers Connection and Internal Water Supply ............................................................. 4

9. Change of Connection ............................................................................................................................... 4

10. Disconnection / Reconnection .............................................................................................................. 4

11. Illegal Connection .................................................................................................................................. 4

12. Termination of Service Contract ........................................................................................................... 5

13. KWASA’s Responsibility ......................................................................................................................... 5

14. Customer’s Responsibility ..................................................................................................................... 5

15. Metering ................................................................................................................................................ 5

16. Water Tariff ........................................................................................................................................... 6

17. Customer Relationships and Grievances ............................................................................................... 6


1

House Connection Policy - KWASA

1. Introduction

KWASA’s long term policy is to provide connections to all customers including domestic institutions,

housing and commercial complexes, and institutional buildings within its service area. Newly developing

housing complexes where multiple households reside would probably require bulk water supply with

individual connections distributed subsequently. However, during the interim service improvement works

being carried out, it may not be technically feasible to carry out the connection program in an effective

manner.

Although the survey reports 27,917 domestic and 492 non-domestic users, only 7762 domestic and 134

non-domestic users are registered. The rest are unaccounted and unbilled household users resulting from

the practice of several household sharing a connection or else are illegal users. In the coming years, KWASA

will embark on six major programs, as follows:

1. Increase in number of households and connections from 2011 to 2017 as more volume of water is

made available from ongoing and future projects.

2. Registration of all illegal connections by 2014

3. Conversion billing per household by 2014

4. Metering of all connections to start by 2012 and be completed for all existing and new connections by

2016

5. Charging owners of private deep tubewells at an annual flat rate by 2012

6. Charging users of hand tubewells by 2013

The water demand for Khulna shows that the number of households served will increase from the existing

27,917 to 55,932. Similarly on domestic units will increase from 492 to 536. The number of domestic

connections is determined by dividing the number of households with the factor of 2.72 above resulting in

a total of 20,563 domestic connections by 2016. KWASA will also embark on a Metering Program starting

2012 and by the end of 2016 all connections will be metered.

A provision for 90,000 metered connections is included in the JICA FS costing. The demand forecast

indicates that connections will be around 140,000 following commissioning of the SWTP in 2017. It is

therefore imperative that a sound house connection policy be adopted by KWASA to install new

connections and monitor all service connections. The following sections of this brief document deal with

installing, monitoring, terminating and overall management approach for service connections.

2. Types of connection

KWASA has adopted a policy to supply water to its consumers, which are primarily domestic consumers.

Domestic consumers are to be supplied based on demand of water mainly through ½”, ¾” and 1”

connections. Other consumers including commercial, government and academic institutions are classified

as non-domestic consumers, who shall also be supplied through connections of varying sizes depending on

their demand.

In addition, low income communities (LIC) and slum areas will be provided water through communal water

points serving about 10 households. The communal water points will be metered for monitoring the level

of consumption.


2

KWASA shall provide all service connections from secondary and tertiary distribution pipes / networks. No

connection shall be provided through the main transmission pipes. KWASA shall provide private connection

through following diameter connection pipeline based on the requirement of the customer and type of

customer:

½” (15mm)

¾” (20 mm)

1” (25 mm)

1 ½ “(40 mm)

2” (50 mm)

3” (80 mm)

4” (100 mm)

Standard connection to individual house-building shall be provided through a ½” and ¾” ferrule on service

pipelines. However, large diameter pipelines can be provided if a group of customers jointly apply for a

larger diameter connection such as in a housing complex and apartment buildings. Such customers will be

provided with bulk supply and the distribution collection of tariff from individual users and payment of

dues to KWASA shall be the responsibility of the owner / operator of such complexes. Larger diameter pipe

connections will only be provided to housing complexes, apartment buildings, institutional, commercial

and industrial customers, if the demand is justifiable. Approval for large connections shall be made by the

committee for such activities within KWASA.

3 Application Procedure

The customers residing within KWASA service area can apply to the respective KWASA Zonal / Branch

Office for a new connection or upgrading of an existing connection. A standard application form available

at KWASA offices will be required to be filled up with the following supporting documentary evidences:

Domestic Customer

• One photograph of the applicant

• Attested photocopy of the land ownership certificate

• Attested photocopy of the citizenship certificate of resident permits

• Attested photocopy of the approval of “building drawing” or “certificate of completion” or any

other proof of the premises issued by the municipal office (KCC)

• Sketch of the location of the premises showing distance from the distribution network, name of

the street, junction, etc.

• In case of joint ownership of the property, a written consent of the co-owners attested by the ward

office of KCC

Commercial, institutional and industrial Customers

• Attested photocopy of registration / approval from concerned government authority for the

activities of the applicant

• Attested photocopy of the approval of “building drawing” or “certificate of completion” or any

other proof of the premises issued by the municipal office (KCC)

• A brief description of the quantity and quality of water needed

• Sketch of the location of the premises showing distance from the distribution network, name of

the street, junction, etc.


3

4. Approval of Connection

The following procedure shall be followed for the approval of a connection:

• Application for new water connection by customer / applicant (First visit)

• Assessment and screening of the application by the concerned Inspector / supervisor

• Inspection of the customer’s premises and technical feasibility assessment

• Approval of new connection by the Zonal Manager based on recommendation from field

supervisors’ report

• Second visit by the applicant for payment of connection fees, deposits and other approval

documents from Roads authorities for digging, etc.

• Connection of the tap, commissioning of the house connection and handover of customer service

cards and other details.

5. Services to Low Income Customers

The proposed service area under KWASA clearly indicates that there are several low-income communities

including slums where there is a need for supplying potable water to the urban poor. It has been observed

that most of such areas have very less space for having independent water supply connections. They also

may lack resources to pay for individual private connections. Therefore, in such cases it is imperative that

an approach needs to be developed to install common water points – community stand posts / hydrants /

standpipes. Such common facilities should also be metered and responsibility given to a local tap group for

operating and maintaining the unit and collecting monthly tariff. A standard set of designs suitable for

specific LIC or slum areas should be developed and numbers estimated for investment purposes.

6. Connection Charges

The following fees will be levied upon the applicant before connection is made:

• Application fee to cover the administrative and inspection costs of KWASA

• Deposit money; once connection is approved and a service contract between the customer and

KWASA is made.

• House connection fee (BF Tk. 7500) to be paid by the customer prior to installation works, which

shall be inclusive of tapping saddles, fittings, one length of pipe, water meter and related

accessories.

• Any additional length of pipe required to reach the premises from the distribution network shall be

the responsibility of the customer / house owner.

7. Installation and Technical Specifications

All materials and workmanship shall be according to KWASA standards. All fittings, saddle taps, ferrules,

stop cocks, water meter, etc. will be supplied by KWASA once the connection has been approved and fees

paid. Additional pipe length, as required, will be purchased by the customer either from KWASA or KWASA

approved vendors.

Laying and installation of house connection pipe and fixtures shall be the responsibility of KWASA, while

excavation and filling in accordance with the KWASA specifications shall be done by the customers

themselves under the supervision of KWASA personnel.


4

8. Inspection of customers Connection and Internal Water Supply

KWASA reserves the right to enter into the premises of a customer by giving a notice to the concerned

person along with the reason thereof, provided that there is sufficient reason or basis to suspect that a

person is misusing the service or conducting unauthorized use of service. KWASA can terminate services to

customers or premises found guilty of misuse, non-payment or unauthorized use of service connections

after giving due to notice to the owner.

Reconnection will be made after the customer carries out the remedial measures identified to check the

misuse to the satisfaction of KWASA. Any additional cost incurred by KWASA in this regard including

reconnection charges (BD Tk. 3500) will be levied upon the customer by KWASA.

9. Change of Connection

The customer may apply for a change of connection from the previous location if there is justifiable reason

for doing so. The change of connection shall be made at the cost of the customer and the process shall be

similar to a new connection.

However, if a change in connection is warranted because of technical reasons like installation of a new

main, removal of spaghetti connections etc., and all costs associated with such a change will be borne by

KWASA.

10. Disconnection / Reconnection

A connection may be disconnected if misuse, change in use, wastage of water, pollution of water from the

connection, tampering with the meters, etc. is found by KWASA. Any cost incurred in rectifying the

problem by KWASA in this regard including reconnection charges (BD Tk. 3500), fines, etc. levied upon the

customer in accordance with the authority vested with KWASA will be recovered from the customer /

owner.

Similarly, if the water bills are not cleared for a period of three (3) months in a row, the connection may be

disconnected after issuing necessary warnings / notices with a seven (7) days notice to pay the dues.

Reconnection may be done after the payment of arrears or in the case of technical reasons (misuse) after

the remedial measures have been taken to the satisfaction of KWASA. However, the due reconnection fees

will be levied upon the customer.

11. Illegal Connection

Any connection made to any of the water lines owned and operated by KWASA without its knowledge and

approval shall be deemed illegal connection. Illegal connections may be of the following type:

• Connections not approved by KWASA

• All self re-connected connections, which were earlier disconnected by KWASA due to reasons

mentioned earlier under Section 10.

KWASA will charge a penalty covering the total dues for the period of illegal use and a surcharge of 50% to

the total amount. The minimum penalty in any case will be equivalent to 12 months of fixed monthly tariff

or average tariff for the connection type.


5

The connection may be legalized after payment of the penalty and the regular fees for new connections, if

the connection is technically feasible and the connection meets the KWASA standards.

12. Termination of Service Contract

Termination of the service contract between KWASA and the customer shall be done if the customer

applies in writing and all dues to KWASA are cleared.

However, termination of services shall also be done by KWASA, if:

• Water supply to the customer is found to be technically unfeasible.

• Non-payment of dues including any penalties, fees and tariff, etc.

• Misuse of services including tampering with water meters and other assets of KWASA

A temporary disconnection may be provided for a fixed period of time based on a written request from the

customer for a valid reason such as the house building or premise not being used for a prolonged period or

transfer of home base of customer, etc.

13. KWASA’s Responsibility

• KWASA will supply water to the customers as per the prevailing rules and regulations. However,

KWASA will not be held responsible for disruption in supply due to any force majeure events

beyond its control.

• KWASA is committed to supply or distribute water in an equitable manner to all its customers.

• KWASA reserves the right to inspect pipe lines, valves, appurtenances, etc. and to recover costs

due to losses and damages occurring from the customers’ negligence or actions.

• In case recommended repair and maintenance works are not carried out by the customers even

after a written notice, KWASA will execute the works and the costs thus incurred shall be

recovered from the customer concerned.

• KWASA will strive to address all complaints and grievances of the customers at the earliest and

rectify problems to have a smooth supply.

14. Customer’s Responsibility

• All dues including monthly tariff, fees, fines, penalties, etc. shall be paid in accordance with the

rules and regulations of KWASA.

• Customers are responsible for the upkeep of the plumbing system within its premises to prevent

wastage, pollution and other such events.

• Customers shall ensure full access to the water meters to KWASA staff and its designated staff.

• The customer shall immediately inform KWASA if there is any change in the ownership of the

priority and change the service contract with KWASA is warranted.

• Customers can and should provide information to KWASA complaint window, if any leaks or

damages are observed, as a matter of civic responsibility.

15. Metering

It is KWASA policy to install appropriate water meters in all connections so that tariff for water use can be

charged according to the volumetric use. All house connection, commercial, institutional and other such


6

premises with KWASA service connections will be provided with standard meters from KWASA duly

checked and calibrated. A lead seal shall be tagged on each meter to prevent any tampering.

Considering the wear and tear of all mechanical equipment including water meters, it is necessary to

replace them if such equipment reach their normal working life (six years) or develop a technical snag.

Water meters shall be replaced by KWASA authorized personnel, as part of the routine replacement

procedures when required. The cost of such replacement shall be borne by KWASA.

However, if replacement is warranted because of external factors including manipulation or tampering by

the customers amounting to vandalism then all costs associated with such a meter replacement shall be

borne by the customer themselves.

All repairing including recalibration of household meters shall be done by trained and authorized KWASA

personnel using approved and standard testing facilities at KWASA. Repair works related to manufacturing

defects, flow problems, erroneous measurements and readings, etc. not related to the customer’s

activities shall be carried out by KWASA.

16. Water Tariff

Water tariff approved and administered by KWASA shall be charged to the customers. KWASA encourages

volumetric tariff based on the monthly meter reading and although a lump sum monthly fee will be

administered to unmetered connection – eventually KWASA will bring them all under metered

connections. The water tariff may be revised from time to time depending upon the cost of production and

distribution of potable water to the consumers, but the customers will be notified of such changes in

advance for consultation and communal approval.

17. Customer Relationships and Grievances

A customer relationship and grievance handling cell will be established and operated in each of the five

zonal offices of KWASA and the KWASA head office. Such complaints shall be handled in a prompt manner.

The Zonal manager will be responsible for supervising the cell and the actions required to handle the

grievances from KWASA management will be duly forwarded by the Zonal Managers, if required. The

central customer relations and grievances unit at the KWASA head office shall be supervised by the Head of

the Customer Service section / division.

Appendix 10 ANNEX E CUSTOMER METER SPECIFICATION



TECHNICAL SPECIFICATIONS

HOUSEHOLD WATER METERS

2010


ADB TA 7385 – BAN


1

1. General

The water meters shall be used to record discharge to consumers from distribution systems and

recorded data shall be used for billing purposes. The meters must be accurate, easily readable,

multi-jet turbine type, magnetically driven with vane wheel and supplied with accessories as

specified herein. The supplier shall furnish all goods and supplies and conduct performance testing

as specified herein.

2. Materials & Construction

The materials should be of new and of the kind and quantities specified herein and shall be to the

satisfaction of the purchaser, that the material is equal to or superior to in quality and performance

as specified hereinafter. All components shall be new, robust in design and fit for purpose. Materials

should not create toxic hazard, shall not support microbiological growth, and shall not give rise to

unpleasant taste, odor or discoloration in the water supply.

The main casing of the meter must be made of good quality non-corrosive brass alloy conforming to

DIN50930 or equivalent; other materials will not be accepted. Materials must have adequate

strength and durability to ensure a design life of no less than 10 years.

The measuring chamber must have very high precision finishing. All materials must be resistant to

internal and external corrosion. The spindle and bearings inside the hydraulic chamber shall be made

of polished stainless steel with tungsten carbide tip and sapphire. The internal pressure cup shall be

made of low-ferrous non-magnetic brass not exceeding 0.05% iron and must overlap the meter

body.

3. Standards

All goods and workmanship throughout should where applicable comply with the latest provisions of

ISO standards or codes of practices as specified herein. Meters must conform to ISO-4064. The meter

manufacturers must have ISO 9001:2000 certificate (latest version) and ISO-14001 certificate or EEC

Directive 75/33 (or where superceded 2004/22/EC) or equivalent AWWA standard and at least 10

(ten) years experience in manufacturing meters.

Meters shall be suitable for use with water having the following characteristics:

Fe up to 5mg/l

Mn up to lmg/1

Chloride up to 500mg/l

Conductivity up to lOGOuS/cm

pH 6.5 to 8.5

Alkalinity 220mg/l

Temperature 30°C

Free chlorine 25ppm.


2

4. Marking:

The following information shall be marked in an indelible manner or cold stamped clearly on the

meter:

• Year of manufacture,

• Direction of flow,

• The name or trade name of the manufacturer and its trade mark,

• Individual serial number in one or two places (Digit height not less than 2 mm),

• Nominal flow rate in m3/h,

• Maximum working pressure in bars.

• Size in mm,

• The letters 'KWASA'.

5. Sizes

Meter sizes shall be 20mm, 25mm and 40mm.

6. Meter Flow Chamber

The flow chamber shall conform to ISO standards and be completely water tight from the register. It

shall include the following:

• All moving parts shall be self-lubricating.

• Calibrating screen for flow adjustment should be sealed by a cap nut and seal wire.

• The inlet shall have non- ferrous strainer.

7. Register

The register shall be super-dry and be hermetically sealed and water tight to IP68. The register shall

also be protected with antimagnetic shield whereby meter manipulation by any outside magnetic field

can not be possible. The reading dial shall be of straight reading type of 15 mm to 50 mm diameters.

The registers shall be straight reading totalizer with roller type mechanism recording at least 99, 999

m3 (The smallest graduation being 0.05 liter). A visible indicator of flow through the meter shall be

included. The meter recording device should be such that after recording full capacity it will

automatically revert to zero. The unit symbol m3 should be shown on the dial. The dial should have a

hinged hood for protection.

8. Connectors

The end-connectors of the meters shall be included with supply. The meter shall be threaded on both

ends with tail-pieces which shall conform to BS 21 for threaded-end meters. It shall also include slip-

nuts and rubber washers. Slip-nuts shall have a ring to accept seal wire and be attached to main case

of meter to prevent theft of water.

Accessories to be supplied with each meter:

(i) 2 Coupling tail pipes,

(ii) 2 Coupling tail nut.

(iii) 2 Coupling gasket.


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9. Performance requirements of water meters

The water meters shall have a proven performance record with measuring error according to ISO

4064 standard class-C. In transitional flow to maximum flow range measuring error should not

exceed ± 2% and in minimum flow to transitional flow range measuring error should not exceed +

5%. The following data are the specified flow rates for class C meter:

Meter Size(mm) Qmax (m3/hr) 5.00

20mm Qn (nvVhr) 2.5

Qt (m3/hr) 0.0375

Qmin (m3/hr) 0.025

Approval Class C 25mm Qmax (m

3/hr) 7.00

Qn (m3/hr) 3.5

Qt (m3/hr) 0.0525

Qmin (m3/hr) 0.035

Approval Class C 40mm Qmax (m

3/hr) 20.00

Qn(m3/hr) 10.00

Qt (mj/hr) 0.150

Qmin (m3/hr) 0.100

Approval Class C

10. Pressure:

The working pressure (maximum admissible pressure) shall not be less than 16 bar and shall conform

to the testing in accordance with ISO-4064. The meter shall be tested at 25 bar with no leakage. The

supplier shall provide test results to prove that the meters perform to the accuracy specified above.

11. Head loss

The loss of pressure through the meter must conform to ISO-4064. The pressure loss must not

exceed 0.2 bar at the nominal flow rate and 0.8 bar at the maximum flow rate.

12. Sealing

The meters shall be equipped with a tamper-proof device consisting of a water-proof synthetic

thread/seal wire and lead seal which must be broken in order to remove the register box and

calibrating cap nut.

13. Coatings

Where necessary metallic parts of the meters shall have corrosion resistant coating applied suitable

for a tropical humid environment. Materials shall be selected to have adequate mechanical,

chemical and electrochemical resistance against abrasion and corrosion. Materials in contact with

the water shall be non-toxic and shall not affect the quality of the water

14. Manuals

For each size of meter the supplier shall furnish 10 (ten) copies of complete meter manual booklets

for installation, operation and maintenance.


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15. Spares

The supplier shall supply 5% spare parts of each size (comprising meter register unit, vane wheel and

spindle) of the total number of meters to be supplied.

16. Tools

The supplier shall supply 50 (fifty) complete sets of standard tools with boxes for repair and

maintenance of the meter.

17. Packing:

The finished materials should be packed for worthy handling following international standard suitable

for tropical climate. Also should be protected from damage during handling and delivery. All loose

items should be carefully packaged to protect during storage. Each package should be carefully

marked as to contents, quantity and date of packaging in an indelible manner.

18. Warranty

Bidder shall provide 1 (one) year warranty on the meter against material defects, workmanship and

design defects. In case of loss of meter accuracy or any defect with the installed meter, the Supplier

shall replace the defective meter with new one within 15 (Fifteen) days of instruction from the

Purchaser against the above stated warranty condition.

19. Inspection and Testing Samples at Bid Stage

The bidder shall submit 2(two) nos. sample of each size along with the Bid. Physical verification and

performance tests of these samples maybe carried out prior to the evaluation of the Bid

documentation. The purchaser reserves the right to test each meter in regard to all metrological

aspects at the Purchaser's test bench (Dhaka WASA Meter Laboratory) and for material composition of

the meter body at the BUET Laboratory, Dhaka or laboratories of similar standard. These tests may

form part of the evaluation of the Bid. Failure to submit the samples along the Bid will result in rejection

of the Bid.

Pre-shipment physical inspection and performance tests shall be done at the Manufacturer's factory

during production in order to determine the conformity of the goods to the Technical Specifications.

The bidder must notify the Purchaser a minimum of three weeks prior to production and final assembly.

The Purchaser reserves the right for two (2) engineers to visit the Manufacturer's factory during the

production run. Any such visit shall be organized by the Supplier at the request of the Purchaser and

at the Supplier's own cost. During the visit, the Purchaser reserves the right to select a mutually

agreed number of meters of each size at random for testing at the Supplier's own facilities in the

presence of the Purchaser's representatives. A further set of meters of each size shall be selected at

random and returned to the Purchaser's premises for testing.

In the event of non-compliance of meter(s) to the specification either at the Manufacturer's or the

Purchaser's premises, the non compliant meter shall be tested at a mutually agreed location which

shall be Internationally registered, qualified and certified to carry out water meter testing. Non

compliance of the meter shall result in termination of the contract.

Alternatively, the purchaser and the manufacturer can appoint an internationally recognized quality

assurance agent to carry out quality assurance checks in conformity with the ISO procedures for

each supply lot. Such a process shall be carried out in the presence of representatives from the

purchaser and the manufacturer, if the parties so decide. Expenses related with this quality

assurance process shall be built into the Manufacturers bid.

Appendix 10 ANNEX F AUDITORS TERMS OF REFERENCE

TA7385/FR App 10 Annex F Auditors Terms of Reference Page 1 of 2

Terms of Reference (TOR) for the Appointment of the Auditor of KWASA

for the Fiscal Year 2008/09 and 2009/10

A. Scope of Work

The auditor will be responsible for conducting the audit of the KWASA financial statements for the fiscal

year ending 2009 and 2010. The auditor shall use appropriate audit procedures following lnternational

Standards of Auditing (lSAs) in performing the following:

1. Preparation of an inventory of fixed asset and Consumable Store

2. Valuation of all Fixed Assets (All Land & Building, Plant & machinery, Vehicles) of KWASA and setting up of

appropriate depreciation charges

3. Valuation of Accounts Receivable and setting up appropriate Allowance for Bad Debts

4. Examination and verification of the Cash Book and other records

5. Preparation and submission of Audit Report for the fiscal years 2008/2009 and 2009/2010

6. Preparation of annual accounts including Income Statement, Balance Sheet, and Cash Flow Statement.

In addition to the audit report the auditor shall prepare a separate management Report containing among

others the following:

1. Analysis of annual budget including (a) comments on actual expenditure in comparison with budget of

different sections / units / projects and analysis of variance and on (b) Comments and proposals on the

budgetary control system of KWASA

2. Comments and proposals on record keeping of expenditure and income

3. Comments and proposals on billing system of KWASA

4. Specific Comments and proposals on vouchers and books of accounts of KWASA

5. Guidelines for KWASA's Financial Plan based on Historical Evidence

6. Guidelines on all procurement procedure

7. Performance evaluation of different Sections / Units / Projects.

B. Reporting Requirements

The audit should be concluded with a meeting/ presentation as well as written reports to the KWASA as

follows:

1. Audit Report

The auditor is to report whether in his opinion and based on his examination of KWASA books and records,

proper books of accounts as required by law have been kept by the KWASA;

The auditor is to report whether or not the balance sheet and income and expenditure statement and cash

flow statements have been prepared in accordance to the requirements of the standard accounting rules and

regulations;

Appendix 10 ANNEX F AUDITORS TERMS OF REFERENCE

TA7385/FR App 10 Annex F Auditors Terms of Reference Page 2 of 2

2. Management Report covering comments and proposals on the accounting system, budgeting, billing,

procurement and internal control as discussed above

C. Schedule of Audit

The proposed time period for carrying out the audit will be 2 months from the date of signing the contract.

D. Proposal

The firm should prepare a Technical and a Financial proposal to be submitted, in separate envelopes, to the

Managing Director of KWASA at the address given below no later than 12 noon on 23rd

September 2010. The

technical proposal should include a detailed methodology and timeline for delivering the required outputs; the

financial proposal will be used as the basis for negotiation with the selected firm.

Mr Md Abdullah

Managing Director

Khulna Water Supply & Sewerage Authority

Khan-a-Sabur Road, Khulna

Bangladesh 1062-1

Appendix 10 ANNEX G GRAMEENPHONE CONTRACT

1

SOFTWARE DEVELOPMENT AGREEMENT

This Software Development Agreement ("Agreement") is made as of October 04, 2010 (the

"Effective Date") between

Khulna Water Supply & Sewerage Authority, 1062/1 KA, Khan-a-Sabur Road, Khulna-9100,

Bangladesh (hereinafter referred to as "Party-1")

And

Grameenphone IT Ltd., a company incorporated under the laws of Bangladesh, having registered

office at GP House, Bashundhara, Baridhara, Dhaka-1229 Bangladesh, (hereinafter referred to as

"Party-2").

WHEREAS

1. Party-1 intends to purchase software which is custom developed as per the need of the

Party-1.

2. Party-2 has submitted a proposal to Party-1 mentioning its skill and efficiency to develop

such software for the Party-1.

3. Being satisfied that the Party-2 possesses the necessary expertise to successfully develop

software as per its need, Party-1 has signed a Memorandum of Understanding (MOU) dated

…29th

September, 2010 with the Party-2.

4. Now the Parties intend to execute this agreement to list out the roles and responsibilities of

the Parties in consideration of the mutual covenants set forth herein, sufficiency of which is

acknowledged by each party and subject to the terms and conditions as set forth herein.

NOW THIS DEED OF AGREEMENT WITNESSETH AND IT IS HEREBY AGREED

AMONG THE PARTIES AS FOLLOWS:

1. DEFINITIONS.

(a) "Deliverables" means the deliverables Party-2 provides to Party-1 as described in this

Agreement, including, without limitation, the Software Deliverables.

(b) "Government Authority" means any governmental authority or court, tribunal, agency,

department, commission, arbitrator, board, bureau, or instrumentality of the Bangladesh or any

other country or territory, or domestic or foreign state, prefecture, province, commonwealth, city,

county, municipality, territory, protectorate or possession.

(c) "Law" means all laws, statutes, ordinances, codes, regulations and other pronouncements having

the effect of law of any Government Authority.

(d) "Services" means the development and consultancy services Party-2 provides to Party-1 as

listed in the Annexure A of this Agreement.


2

(e) "Software Deliverables" means the software described in this Agreement, including for all

software the following:

(i) Executables: At least two (2) copy of executables of the software deliverables on a computer-

readable magnetic medium.

(ii) Documentation. Two (2) copies of the user manual provided to Party-1 of the Software

Deliverables.

(f) "Initial Maintenance Period" means the period following satisfactory receipt of the deliverables

during which software and user support will be provided free of charge to Party-1 by Party-2.

(g) "Future Maintenance Period" means the period after completion of successful initial

maintenance period of the deliverables during which software and user support will be provided

with mutually agreed charge by Party-1 and Party-2.

2. SERVICES. Party-2 agrees to provide all the Services listed in the Annexure A (List of

Services, Deliverables and Specifications) of this Agreement, which is a part of this Agreement and

details the specifications of the Services. it is agreed by the Parties that within the validity period of

this Agreement, upon mutual agreement, the Parties may include new services and/or deliverables

along with its specification in the Annexure A by following Clause No16 (a) (Entire Agreement

and Amendment) of this Agreement. Fees for such new services and/or deliverables shall be

decided as per the mutual agreement between the Parties and shall be included in the Annexure B

by following Clause No16 (a) (Entire Agreement and Amendment) of this Agreement

3. PERSONNEL.

(a) Competence. Party-2 agrees to provide the Services through fully trained and competent

personnel or subcontractors having a skill level appropriate for the tasks assigned to them.

(b) Key Personnel and Project Managers. Below appears an initial designation of a project

manager for each party who is the principal point of contact between the parties for all matters

under this Agreement. Either party may designate a new project manager by written notice to the

other party. Party-1's project manager: [Md Miraj ul Haque Bashir,Senior Specialist] Party-2's

project manager: Mr Jaglul Haider, Deputy Managing Director for Engineering.

4. DELIVERABLES. Party-2 agrees to provide all Deliverables including the Software

Deliverables and maintenance deliverables according to the specifications mentioned in the

Annexure A of this Agreement.

5. DEADLINE. The Services and Deliverables will be provided within the Ninety (90) of days

after the Effective Date: 04-Oct-10. Party-1 shall provide such support and assistance as may be

reasonably required by Party-2. If Party-1 delays in providing any such support or assistance

required by Party-2, Party-2's deadline shall be extended by the time necessary for Party-1 to meet

these requirements.


3

6. OWNERSHIP, TITLE, AND RISK OF LOSS. Ownership of, title to, and risk of loss for the

Deliverables passes to Party-1 upon acceptance of the Deliverables by Party-1. However,

ownership, title and risk of loss for the Software Deliverables applies to the copy only and does not

extend to the intellectual property and other proprietary rights in the Software Deliverables.

7. ACCEPTANCE. The Service shall be deemed accepted and delivered once Party-1 signs the

‘Acceptance’ in writing. Upon completion of the Services required under the Scope, Party- 2 shall

request in writing to Party-1 (Notice of Completion) to sign the Acceptance within 10 (ten)

working days. Party-1 reserves the right to delay the Acceptance if it is not satisfied with the

performance and completion of the Service as per Contract documents. In such case, Party-1 shall

provide a written notice to Party- 2 describing the reasons for non-acceptance (Non-Acceptance

Notice). If Party-1 unreasonably delays in signing the Acceptance and does not provide any Non-

Acceptance Notice to Party- 2 within 10 days from the date of receipt of Notice of Completion

from Party- 2, at the completion of 10 (ten) working days, the Service shall be deemed accepted

and delivered and Party- 2 shall be entitled to issue Invoice and receive payment. For any

unreasonable delay, Party- 2 shall be entitled to claim interest at the rate of 1.0% per month on the

unpaid amount.

8. FEES. In consideration for Party-2's performance under this Agreement, Party-1 agrees to pay

the Party-2 the fees set forth in Annexure B (the “Payment Schedule”). The amounts payable to the

Party-2 set forth in the Payment Schedule are inclusive of VAT inclusive of income tax. If Party-

1is required to pay any taxes based on this Clause, Party-1shall pay such taxes with no reduction or

offset in the amounts payable to the Party-2 hereunder. In the event that new or increased VAT

(when compared to the taxes applicable at the date of this Agreement commencement) are levied by

the governmental authorities on any Deliverable, then such new or increased taxes shall be borne

by the Party-1.

9. INVOICES AND TAXES. Party-1 agrees to pay to Party-2 all fees owed under this Agreement

within thirty (30) days after the date of Party-1's receipt of a complete invoice. A complete invoice

is one that contains the invoice number, invoice date, description of the transaction, and total

invoice amount along with the VAT 11. If past due amounts owing from Party-1 are not paid within

thirty (30) days, the unpaid amount shall accrue interest at the rate of 1.0% per month.

10. INTELLECTUAL PROPERTY RIGHTS IN THE DELIVERABLES. Party-2 grants

Party-1 an irrevocable, perpetual, non-exclusive, worldwide, transferable, and sublicenseable

license in the Deliverables to permit Party-1 to exercise all intellectual property and proprietary

rights to the Deliverables. Party-1 may sublicense its Deliverables license to Party-1's third party

contractors for Party-1's internal business purposes.

11. WARRANTIES.

(a) Mutual Warranties. Each party represents, warrants and covenants to the other that:

(i) General. It: (a) is a company duly organized and validly existing and in good standing under the

Laws of its jurisdiction of organization; (b) is qualified or licensed to do business and in good

standing in every jurisdiction where qualification or licensing is required; and (c) has the corporate


4

power and authority to negotiate, execute, deliver and perform its obligations under this

Agreement.

(ii) Law Compliance. It complies with all applicable Laws.

(b) Warranties by Party-2. Party-2 represents, warrants and covenants to Party-1 that:

(i) Warranty Length. For a period of one year after receipt, the Services and Deliverables conform

to the requirements of this Agreement, are free from any defect in material and workmanship, and

are free of all liens, claims and encumbrances of any kind.

(ii) Infringement. The Services and Deliverables do not violate any patent, trade secret, or other

intellectual property or proprietary rights of any third party, and as of the Effective Date.

(iii) No Litigation. There is no actual or threatened litigation: (a) that affects its ability to comply

with this Agreement, or (b) concerning the Services or Deliverables.

(iv) Service Performance. The Services are performed in a professional and competent manner,

conforming to generally accepted standards applicable to services provided by nationally

recognized firms specializing in the area of Services provided under this Agreement. Each of the

individuals assigned to provide any Services under this Agreement have the proper skill, training,

and background to provide the Services.

(v) Malicious Code Representation. All Software Deliverables are free of any "time-bombs,"

"worms," "viruses," "Trojan horses," "protect codes," "data destruct keys" or other programming

devices or code that might, or might be used to, access, modify, delete, damage, deactivate or

disable any Software Deliverables or other software, computer hardware, or data.

(c) Disclaimer. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, PARTY-1 AND

PARTY-2 EACH MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OR

COVENANTS OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT

LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A

PARTICULAR PURPOSE.

12. LIMITATION OF LIABILITY. THIS LIMITATION OF LIABILITY PROVISION

APPLIES IN THE AGGREGATE AND NOT ON A PER CLAIM BASIS, WHETHER ANY

DAMAGES ARE CHARACTERIZED IN TORT, NEGLIGENCE, CONTRACT, OR OTHER

THEORY OF LIABILITY, REGARDLESS OF WHETHER A PARTY HAS BEEN ADVISED

OF THE POSSIBILITY OF OR COULD HAVE FORESEEN ANY DAMAGES, AND

IRRESPECTIVE OF ANY FAILURE OF ESSENTIAL PURPOSE OF A LIMITED REMEDY.

THIS LIMITATION OF LIABILITY PROVISION DOES NOT LIMIT A PARTY'S LIABILITY

FOR GROSS NEGLIGENCE, INDEMNIFICATION OBLIGATIONS, BREACH OF

CONFIDENTIALITY REQUIREMENTS, INTENTIONAL MISCONDUCT, INTENTIONAL

TORTS AND INTENTIONAL VIOLATIONS OF LAW. NEITHER PARTY IS LIABLE TO THE

OTHER OR ANY THIRD PARTY UNDER THIS AGREEMENT FOR ANY INDIRECT,

SPECIAL, INCIDENTAL, PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL DAMAGES

ARISING OUT OF OR RESULTING FROM THIS AGREEMENT. EACH PARTY'S

LIABILITY SHALL NOT EXCEED THE AMOUNTS PAID, DUE AND PAYABLE UNDER


5

THIS AGREEMENT.

13. INDEMNIFICATION. If a third party makes a claim against either Party-1 or Party-2

(“Recipient” which may refer to Party-1 or Party-2 depending upon which party received the

Material), that any Deliverable, information, design, specification, instruction, software, data, or

material (“Material”) furnished by either Party-1 or Party-2 (“Provider” which may refer to Party-1

or Party-2 depending on which party provided the Material), and used by the Recipient infringes its

intellectual property rights, the Provider, at its sole cost and expense, will defend the Recipient

against the claim and indemnify the Recipient from the damages, liabilities, costs and expenses

awarded by the court to the third party claiming infringement or the settlement agreed to by the

Provider, if the Recipient does the following:

a) notifies the Provider promptly in writing, not later than 30 days after the Recipient

receives notice of the claim (or sooner if required by applicable law);

b) gives the Provider sole control of the defense and any settlement negotiations; and

c) gives the Provider the information, authority, and assistance the Provider needs to

defend against or settle the claim.

If the Provider believes or it is determined that any of the Material may have violated a third party’s

intellectual property rights, the Provider may choose to either modify the Material to be non-

infringing (while substantially preserving its utility or functionality) or obtain a license to allow for

continued use, or if these alternatives are not commercially reasonable, the Provider may end the

license for, and require return of, the applicable Material and refund any fees the Recipient may

have paid to the other party for the Material. If Party-1 is the Provider and such return materially

affects Party-2’s ability to meet its obligations under the relevant order, then Party-2 may, at its

option and upon 30 days prior written notice, terminate whole or relevant part of this Agreement.

The Provider will not indemnify the Recipient if the Recipient alters the Material or uses it outside

the scope of use identified in the Provider’s user documentation or if the Recipient uses a version of

the Materials which has been superseded, if the infringement claim could have been avoided by

using an unaltered current version of the Material which was provided to the Recipient. The

Provider will not indemnify the Recipient to the extent that an infringement claim is based upon

any information, design, specification, instruction, software, data, or material not furnished by the

Provider. Party-2 will not indemnify Party-1 to the extent that an infringement claim is based upon

the combination of any Material with any products or services not provided by Party-2. Party-2 will

not indemnify Party-1 for infringement caused by the actions of Party-1 against any third party if

the Deliverables of the Party-2 delivered to you and used in accordance with the terms of this

agreement would not otherwise infringe any third party intellectual property rights. This section

provides the parties’ exclusive remedy for any infringement claims or damages.

14. TERM AND TERMINATION.

(a) Term. The term of this Agreement (together with any renewals, the "Term") begins on the

Effective Date and expires One 1 year. Any renewal term shall be mutually agreed to by the parties

in writing.

(b) Survival. The following captioned sections survive any termination, expiration or non-renewal

of this Agreement: "Disclaimer", "Limitation of Liability", "Indemnification", "Survival", and

"General", as well as any other provisions expressly stating that they are perpetual or survive this

Agreement.


6

(c) Termination for Insolvency. If either party is adjudged insolvent or bankrupt, or upon the

institution of any proceedings by it seeking relief, reorganization or arrangement under any Laws

relating to insolvency, or if an involuntary petition in bankruptcy is filed against a party and the

petition is not discharged within sixty (60) days after filing, or upon any assignment for the benefit

of a party's creditors, or upon the appointment of a receiver, liquidator or trustee of any of a party's

assets, or upon the liquidation, dissolution or winding up of its business (each, an "Event of

Bankruptcy"), then the party affected by any Event of Bankruptcy must immediately give notice of

the Event of Bankruptcy to the other party, and the other party may terminate this Agreement by

notice to the affected party.

(d) Termination for Breach. If either party breaches any provision contained in this Agreement, or

the breach is not cured within thirty (30) days after the breaching party receives notice of the breach

from the non-breaching party, the non-breaching party may then deliver a second notice to the

breaching party immediately terminating this Agreement.

15. FORCE MAJEURE. Any failure or delay by a party in the performance of its obligations

under this Agreement is not a default or breach of the Agreement or a ground for termination under

this Agreement to the extent the failure or delay is due to elements of nature or acts of God, acts of

war, terrorism, riots, revolutions, or strikes or other factor beyond the reasonable control of a party

(each, a "Force Majeure Event"). The party failing or delaying due to a Force Majeure Event agrees

to give notice to the other party which describes the Force Majeure Event and includes a good faith

estimate as to the impact of the Force Majeure Event upon its responsibilities under this

Agreement, including, but not limited to, any scheduling changes. However, should any failure to

perform or delay in performance due to a Force Majeure Event last longer than thirty (30) days, or

should three (3) Force Majeure Events apply to the performance of a party during any calendar

year, the party not subject to the Force Majeure Event may terminate this Agreement by notice to

the party subject to the Force Majeure Event.

16. GENERAL.

(a) Entire Agreement and Amendments. This Agreement is the entire agreement between the

parties and supersedes all earlier and simultaneous agreements regarding the subject matter,

including, without limitation, any invoices, business forms, purchase orders, proposals or

quotations. All the annexes constitute an integral part of this Agreement. This Agreement

may be amended only in a written document, signed by both parties.

(b) Independent Contractors, Third Party Beneficiaries, and Subcontractors. The parties

acknowledge that they are independent contractors under this Agreement, and except if

expressly stated otherwise, none of the parties, nor any of their employees or agents, has the

power or authority to bind or obligate another party. Except if expressly stated, no third

party is a beneficiary of this Agreement. Party-1 may not subcontract any obligation under

this Agreement without Party-2's prior written consent. Party-2 can subcontract without

Party-1's consent. Each party is responsible for its subcontractors' compliance with and

breach of this Agreement as if the subcontractors' acts and omissions were the party's own.

(c) Governing Law and Forum. All claims regarding this Agreement are governed by and

construed in accordance with the Laws of Bangladesh. Any controversy or claim arising out


7

of or relating to this Agreement or its breach shall only be settled in accordance with the

following sequence of dispute resolution procedures. First, authorized persons of the

Parties must meet to attempt to resolve their differences based upon advance written

submissions to each other. Second, if the parties are unable to resolve their issues, all

disputes whatever or claims arising out of or relating to this contract, or the breach,

terminating or invalidity thereof, shall be settled by the Arbitral Tribunal comprising of

three arbitrators in accordance with Arbitration Act, 2001 of Bangladesh. The place of

arbitration shall be Dhaka, Bangladesh. The language to be used in the arbitral proceedings

shall be English.

(d) Assignment. This Agreement binds and inures to the benefit of the parties' successors and

assigns. This Agreement is not assignable, delegable, sublicenseable or otherwise

transferable by any party in whole or in part without the prior written consent of the other

party (or parties). Any transfer, assignment, delegation or sublicense by a party without

such prior written consent is invalid. However, any party may assign this Agreement to a

third party purchasing: (a) majority control of the party's equity shares; or (b) all or

substantially all of either (i) a party's assets or (ii) the assets of the party's relevant business

unit under this Agreement.

(e) No Waivers, Cumulative Remedies. A party's failure to insist upon strict performance of

any provision of this Agreement is not a waiver of any of its rights under this Agreement.

Except if expressly stated otherwise, all remedies under this Agreement, at Law or in

equity, are cumulative and nonexclusive.

(f) Severability. If any portion of this Agreement is held to be unenforceable, the

unenforceable portion must be construed as nearly as possible to reflect the original intent

of the parties, the remaining portions remain in full force and effect, and the unenforceable

portion remains enforceable in all other contexts and jurisdictions.

(g) Notices. All notices, including notices of address changes, under this Agreement must be

sent by registered or certified mail or by overnight commercial delivery to the address set

forth in this Agreement by each party.

(h) Captions and Plural Terms. All captions are for purposes of convenience only and are not

to be used in interpretation or enforcement of this Agreement. Terms defined in the

singular have the same meaning in the plural and vice versa.

(i) Non Hire Non Solicitation. The Parties agree that during the period that this agreement is

in force, including extensions or modifications thereto, and for an additional 24 months

following this period, neither Party will directly or indirectly recruit, or solicit employees of

other Party without the prior written approval of the other Party. In case of non-compliance

with this clause, the innocent Party will be entitled to obtain an amount equivalent to 6 (six)

months’ salary of the recruited/ solicited employee or employees from the Infringing party.

Notwithstanding any other provision of this agreement, this clause shall survive termination

of this Agreement.

IN WITNESS WHEREOF, the parties execute this Agreement as of the Effective Date. Each

person who signs this Agreement below represents that such person is fully authorized to sign

this Agreement on behalf of the applicable party.

FOR AND BEHALF OF: FOR AND BEHALF OF:

KHULNA WASA Grameenphone IT Ltd


8

Name: Md Abdullah, P Eng.MBA Name: Kazi N. Islam

Designation: Managing Director Designation: Chief Executive Officer

In Presence of the following witness: In Presence of the following witness:

1. 1.

Name: Engr. S.M.Jaglul Haider Name: Dan Gallegos

Designation:Deputy Managing Director Designation: Director,

Strategy & Business Development

2. 2.

Name: Zahangir Alam Name: A.K.M Fahmedul Haque

Designation: Deputy Project Manager Designation: Head of Proposal Management

Deputy General Manager

Annexure A List of Services, Deliverables and Specifications for Utility Billing Software

Annexure B List of Services, Deliverables and Specifications for Accounting Software

Annexure C Payment Schedules

Appendix 10 ANNEX

Annexure A – List of Services, Deliverables and

Understanding of the Requirement: Khulna WASA (Khulna Water supply And Sewerage Authority) established on 2nd March 2008.

Specific objective of KWASA:-

• Construction, operation and maintenance of necessary

domestic, industrial and commercial purposes

• Construction, operation and maintenance of sewerage system

• Construction, operation and maintenance of drainage system

Implementation and execution of Water utility Billing so

achieving above visions. The developed software should be capable of followings:

Figure1: Modules of Utility Billing Software

Our Approach to meet Project objective

After going through the scope of work and discussions with KWASA team we have

understood that KWASA wants to a solution which will bring following benefits:

• Enhance Citizen Service

• Facilitate Real time Decision Making

• Improves Operational efficiency

• Easy to operate

• Maximize Revenue

• Dynamic Rate/surcharge/tariff management etc.

GPIT will leverage its expertise by providing high quality billing functionality for

managing tariffs/rates, conduct bill runs and proper reporting and invoices as an

integrated solution designed specifically for the unique needs of Khulna WASA.

Our focus area for the designing solutions;

Master Data Management

Bill Generation

Reconciliation

Reporting

ANNEX G GRAMEENPHONE CONTRACT

9

List of Services, Deliverables and Specifications for Utility Billing Software

Khulna WASA (Khulna Water supply And Sewerage Authority) established on 2nd March 2008.

Construction, operation and maintenance of necessary infrastructure for water supply for


Construction, operation and maintenance of sewerage system

Construction, operation and maintenance of drainage system

Implementation and execution of Water utility Billing software will be an effective enabler in

achieving above visions. The developed software should be capable of followings:

Figure1: Modules of Utility Billing Software

Our Approach to meet Project objective:



Enhance Citizen Service

Facilitate Real time Decision Making

Improves Operational efficiency

Dynamic Rate/surcharge/tariff management etc.



lution designed specifically for the unique needs of Khulna WASA.

Our focus area for the designing solutions;

•Customer Information Management

•Bank Information Management

•Municipality Information Management

Master Data Management

•Bill generation

•Advanced Bill generation (Customized)

•Due alert

•Invoicing & Deposit

Bill Generation

•Collection Information

•Reconciliation & proactive auditingReconciliation

•Capable of generating static & Dynamic reports

•Support for auditing

•Provide output to different system as per requirements

for Utility Billing Software


infrastructure for water supply for

ftware will be an effective enabler in





lution designed specifically for the unique needs of Khulna WASA.

Provide output to different system as per requirements

Appendix 10 ANNEX

Figure: Focus on designing the solution

User Friendly

• Easy to implement

• Easy to Operate

• Easy to Monitor


10

Figure: Focus on designing the solution

Easy to Monitor

Secured

• Ensure all level of Security

• Proper Access Management

• Secure data management

Flexibility

• Openness for expansion and integration

• Ensure availability

• Efficient Change Management

Flexibility

Openness for expansion and integration

Ensure availability

Efficient Change Management


11

Scope of Work:

Following is the Scope of work for this engagement:

Scope of Work Modules & Services

Software

Development

Master Data Management:

Maintenance Customer Lifecycle from creation to till deactivation and

reactivation with demographic and personal information’s

Customer Type Entry & Edition

Bank Information’s Entry & Edition

User Management

Rate/Tariff Management (Customer Type and Diameter wise)

Address/Location Information and edition

Meter Information and Edition

Customer Activation/Deactivation

System Administration

Bill Generation:

Customer wise Bill Entry

Different types of bill generation

Bill posting

Reconciliation:

Input Reconciliation for Bill Generation

Invoice Reconciliation

Collection Reconciliation

Reporting


12

Customer Register

Active/Deactivate/Cancel Customers Information

Dia and Customer type wise report

Arrear Bill reporting

New Customer Reports

Advance Bill payment Report

Bank Information Report

Bank Collection Report

Location Report

Single or all Bill Generation report

Part Arrear Bill Generation Report

Testing &

Implementation

Unit Testing

User Acceptance Testing

Deployment

Training Functional Training

Technical Training

Maintenance Operational Maintenance

Out of Scope:

1. Legacy System modification if any

2. Data Entry in Live Systems

3. Basic Computer Training

Note: For detail functionalities please go through chapter 4.


13

Roles & Responsibility:

Following is the Roles & Responsibility for this project between GPIT & KWASA:

GP IT KWASA

Application Development & Deployment Data Entry, Report Generation,

Hardware Readiness

Test case preparation & Facilitate

Testing

Do the Test and approve the test

Training Maintenance, Regular Backup &

Infrastructure Administration

2nd Level Support 1st Level Support to KWASA user


14

Risks and Mitigation Plan: Given in the table below are a few of the critical risks that GP IT has identified, with Action

Plans to mitigate them. During the course of Project Planning, these can be looked at in

greater detail.

Risk Intensity Mitigation Plan

Change in project

scope and

definition

High • The scope of the implementation project has to be

frozen before the start of the project.

• Any change in scope after the start of the project

will be addressed through Change Control

Procedures and may impact the project time and

cost.

• GP IT would raise all scope change requests from

users to the Steering Committee before accepting

such changes.

Delay in

providing inputs

or completing

activities for

which the KWASA

is responsible.

High • KWASA to identify personnel to work on the project

- full-time personnel on the project should be

relieved of non-project related responsibilities.

• GP IT to assign responsibilities and timelines to

KWASA designated personnel and help them

understand what is required of them.

• Commitment from the KWASA Top Management is

an important check against delays for their

activities.

Adaptability to

change

Medium • KWASA top management to communicate their

commitment to the project to all levels.

• KWASA to formulate a Change Management

Strategy through planned communication and user

training.

• GP IT to assist KWASA in change management by

providing inputs on progress, clarifications on

functionality and post-production support.

Delay in

providing

Hardware

Medium • KWASA to ensure that the Hardware is available as

per the Project Plan for Implementation.

Availability of

user SMEs

High • To plan for availability of user SMEs as required in

the resource plan. Mobilization / Year end pressures

as well as vacation have to be anticipated and

planned accordingly


15

Proposed Project Team & Structure

GP IT Proposes below team structure for the implementation.

Role Title Description of the role

Project Manager /

Architect

• Provide direction to GP IT team for this engagement

• Identify overall plans and requirements from KWASA for

people, technical skill areas, resources, etc.

• Resolve any outstanding issues

• Define project plan. Work closely with KWASA project

manager to identify participants for workshops

• Work closely with KWASA to enable seamless translation

of requirements for development of overall architecture

• Recommend best practices and provide technical inputs for

implementation plan of the same

• Report project status to KWASA project manager

Functional

Consultant

• Provide Functional Consultancy

• Understand information flow/source data structures/data

quality

• Participate in project reviews

• Configuration and implementation

Trainers • Train KWASA resources on functional & Technical Part

Developer • Responsible for developing the solution as per design and

requirements

QA Engineers • Responsible for total Quality Assurance

• User Acceptance


16

Expected Team Structure from KWASA:

Role Title Description of the role

KWASA Project

Manager

(100% During

Requirement

Phase )/ Rest

50%

• Coordinate all the project related activities from KWASA

side

• Responsible for Risk Management and Mitigation during

the project

• One point of contact for GP IT team to interact with the

business users

• Conduct ongoing reviews with GP IT team focusing on

project execution related issues

• Ensure infrastructure for GP IT team

• Facilitate issue resolution - scope of work, definition of

requirements or deliverables, and acceptance of final

product

• Work closely with GP IT team in resolving and

troubleshooting any conflicts that arise

KWASA subject

matter experts

(100% During

Entire

Implementation

Phase )

• Provide planning requirements

• Provide environment for implementing the solution

• Map requirements to source data and provide gap analysis

• UAT

• Support in integration and implementation as when

required


17

Assumptions:

Grameenphone IT Ltd. has been working closely with this project, and bellow is the

assumption and constrains that has been identified.

Business Discovery Sessions:

• As part of the business discovery sessions, GP IT would like to meet the identified

SPOC or Project Manager of KWASA who will share the business requirements for the

implementation.

• Minutes of Meeting to be signed for each and every business meetings conducted by GP

IT. These would be ‘deemed signed’ if there are no feedback received within 2 working

days

• KWASA and GP IT will together prepare business requirement that needs to be

captured for each entity & attribute.

Process Oriented assumptions

• Implementation is based out of Khulna at Head Quarters of KWASA.

• KWASA team, HW vendors and their partners shall be taking care of Installation of

Hardware, Operating System and Web Server Configurations.

• With the help of GP IT, KWASA IT team shall be taking care of installation and

Configuration for Utility Billing Software in production environments.

• UAT participants from the KWASA are available for the Testing

• All the required network ports would be opened on request

• Required KWASA testing team to be constituted

• Availability of Application and web servers to run the Accounting Software

• Required office space, computers, equipments, passes etc for GPIT are available

• Implementation assumed to be at Head Quarters of KWASA.

• All data would be captured from the Live source system environment or excel sheets,

no data would be loaded from tapes & other media devices

• GP IT consultants will be deployed at both Onsite and Offshore

• Change in scope would be handled through CRs

• GP IT assumes that all process specific formula will be provided by KWASA.

Project

• KWASA would provide round the clock access to GP IT personnel to KWASA

development & test environment.

• KWASA will provide VPN connectivity to GPIT team for remote access as and when

required

• The implementation team will be based out of a single location.

• KWASA would provide GP IT development team with Printer and scanner access for

onsite resources


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3.5. Project Management:

Project management is the application of knowledge, skills, tools and techniques to a broad

range of activities in order to meet the requirements of the particular project. A project is a

temporary endeavor undertaken to achieve a particular aim.

GP IT’s Project Management is composed of several different types of activities such as:

� Planning the work

� Assessing and mitigating risk

� Estimating resources

� Organizing the work

� Acquiring human and material resources

� Assigning tasks

� Directing activities

� Controlling project execution

� Reporting progress

� Analyzing the results based on the facts achieved

� Analysis & Design

� Project control variables

GP IT’s Project Management tries to gain control over five variables:

Time - The amount of time required to complete the project. Typically broken down for

analytical purposes into the time required to complete the components of the project, which is

then further broken down into the time required to complete each task contributing to the

completion of each component.

Cost - Calculated from the time variable. Cost to develop an internal project is time multiplied

by the cost of the team members involved. When hiring an independent consultant for a

project, cost will typically be determined by the consultant or firm's hourly rate multiplied by

an estimated time to complete.

Quality - The amount of time put into individual tasks determines the overall quality of the

project. Some tasks may require a given amount of time to complete adequately, but given

more time could be completed exceptionally. Over the course of a large project, quality can

have a significant impact on time and cost (or vice versa).

Scope - Requirements specified for the end result. The overall definition of what the project is

supposed to accomplish, and a specific description of what the end result should be or

accomplish.

Risk - Potential points of failure. Most risks or potential failures can be overcome or resolved,

given enough time and resources. According to some definitions, risk can also be negative,

meaning that there is an opportunity to e.g. complete the project faster than expected.

GP IT’s project management models adopt a KWASA centric approach to the entire

engagement. These include workflow and project flow determination and domain and technical


19

teaming and help in proper requirements capture, regular project reporting and monitoring

and an efficient feedback mechanism for project progress

GP IT’s project engagement processes are customized to address specific project needs for

varying projects, right from service projects to maintenance projects to development and

conversion projects. This ensures that we can manage projects with different and evolving

needs seamlessly

GP IT employs several project management tools for smooth delivery of projects. GP IT’s

process documentation and consulting tools support multiple lifecycle models and ensure

everything on record. GP IT’s visibility tools help monitor projects on a real time basis and

ensure that customers are never out of touch

Process documentation tools

• Web enabled process documentation

• Supports multiple life-cycle models

• Process release updates to practitioners

• Employee participation through a PCR board

• Process consulting tools

• Tools identification and training

• Audits and assessments

• Automation

• Project Management

• Software Engineering


20

Management visibility tools

• Project kick-off reviews

• Project status reviews

• Post-mortem reviews

• Quarterly management reviews

• Clearly defined responsibilities and authorities

Customer visibility tools

• Customer extranets for project visibility

• Secure relationship portal for information needs

• Project dashboard for up-to-date information

• Built-in workflow and collaborative features

Our business continuity planning approach ensures un-interrupted project executions. GP IT

Limited has a robust infrastructure, an intensely managed communication network and a well-

implemented physical security policy to guard the integrity of our premises and a clear risk

mitigation state.

Project Meetings, Reporting and Review mechanisms:

The following project meetings will be held for proper co-ordination in successful execution of

the project.

• Steering Committee Meeting – The meeting with the Steering Committee (SC) will

be held once a month. The Project Manager will report the progress of the project to

the SC.

• Project Team Meeting – The Project Team Meeting will be held every week. This

meeting would include the GP IT Project Manager, Technical Leads, KWASA User

Manger and IT Project Manager.

• Module Team Meetings -- Module Team Meetings will be held twice a week. The

meetings would include GP IT Module Lead, Developers and Test Engineers.

• GP IT Project Manager may convene an extraordinary SC meeting if some unresolved

issues in the project need immediate escalation.

• The minutes of each meeting along with the action points, date and responsibility of

closure will be recorded and circulated at the end of each meeting. The problems

identified during these meetings will be escalated, if required.

• During these team meetings the following will be tracked:

a. Action points of previous team meetings

b. Technical issues

c. Project schedule

d. Changes in project resource requirements

e. Changes in project commitments

f. Critical dependencies within the project and with the support groups

g. Progress of the project with respect to the effort, size, productivity and other

commitments

h. Project risks


21

i. Any configuration management related issues like pending Change Requests,

changes to baseline library, etc.

Status Reporting

This report will be sent on every Monday during the entire duration of the project. In addition

to the weekly status reporting GP IT also, conduct Milestone reviews involving appropriate

KWASA personnel. Some of the reporting activities are mentioned below:

GP IT will follow the following reporting schedules:

Type of

reporting

Schedule Details

Status

Reporting

Weekly This will have a detailed Project report for the 15-day period. It

will consist of the Project schedule, Milestones achieved,

Activities performed for the fortnight, issues / concerns. The

status report will be initiated by GP IT Project Manager by

email and sent to KWASA IT Project Manager

Escalation

reporting

Fortnightl

y

This will be a report, which will highlight concern areas with

respect to technology, user, and project. It is expected that

KWASA will act on this escalation report with due diligence and

address the issues within 5 days to avoid schedule overruns

Conference

Calls

Fortnightl

y

Fortnightly conference call will be initiated by GP IT from the

station where the Project Manager is situated. The conference

call will be for 1 hour. All the team members from GP IT will be

present in this call & from KWASA; the Project Sponsor is

expected to participate.

Project Monitoring: This project would be tracked and monitored for the following:

• Schedule

• Effort

• Project activities

• Risks – Identification, prioritization and tracking throughout the project lifecycle

• Critical path, identified in the schedule

• Identification of potential overruns and under runs and appropriate corrective action

Review & Inspection Mechanisms

The purpose of this procedure is to ensure that the items that are reviewed or inspected are

complete, correct and fit for use. The review of document (or code) is done to evaluate that

the requirements are met and to identify the problems. It is done once the documents

prepared are complete and ready for review or once the code is free of compilation errors.

The review team should consist of the author of the work item, and one or more independent

reviewers who are technically capable of reviewing the work item. The Project Manager will

decide on the number of reviewers based on the size, complexity and criticality of the work

item to be reviewed.


22

Communication & Escalation procedures:

GP IT’s Project Management expertise will help reduce issues related to un-addressed

solutions. However, GP IT suggests the following escalation process, should issues be not

solved at the Project Manager level.

Type of Issue Who to communicate /

escalate

Location

Business Issues Business Development Manager Dhaka

Project & Schedule issues Delivery Head Dhaka

There would be three levels of escalation for issues/concerns raised by the KWASA Project

Manager.

Level – 1

The first level of escalation will be to the GP IT Project Manager.

Level – 2

Delivery Manager / Program Manager – GP IT

The table below describes the escalation process.

Level 1 Project Manager - GP IT

Level 2 Delivery Manager /

Program Manager (GP IT)

The proposed escalation procedure will address technical, personnel and invoicing issues. The

technical issues could originate from either KWASA or GP IT and will be handled as per the

above escalation chart.


23

Functionalities of Proposed Solution:

To develop an integrated solution to meet KWASA need GPIT proposed a web based

client/server solution. Following is the Architectural Diagram:

Figure: Architecture of the solution

Business Model of KWAS Billing Solution:

Appendix 10 ANNEX

Figure: KWASA Billing Solution Business Model

Detail Functionalities:

Master Data Management:

i) Maintenance Customer Lifecycle:

With this functionality KWASA will able to store customer related all information’s starting from customer

name, Location Address (Holding no, Street Address, etc), type of Customer, etc. After successful storing

of the record system will provide an Account ID. There will be functionality to associate Bank

information’s and Dia information with each Customer. As per need there will be option to active or

deactivate of the customer.

Sample of Customer information:

Account

ID

Account

No

Name of

The

Account Address

001-001-

100 1234

Mr. Abdul

Hakim

1st phase,

Sondanga

Resident

Residence


24

Figure: KWASA Billing Solution Business Model

i) Maintenance Customer Lifecycle:



Account ID. There will be functionality to associate Bank


Address

Father/Husband

Name

Customer

Type Status 1st phase,

Sondanga

Residential

Residence

late Md. Hazer Ali

Gazi Residential Active



Account ID. There will be functionality to associate Bank


Rate

Type

Connection

Date

Fixed 01/12/09


25

ii) Customer Type Entry:

As per nature of usage there are different types of customer. Followings are some common types:

Residential, Commercial, Industrial, Government, etc.

There will be option to add or remove customer type in the system.

iii) Bank Information’s Entry:

In this system there will be option to entry for customer wise bank accounts including KWASA collection

bank accounts.

iv) User Management:

To get access in this system every person has to have a system account with password. There will be

additional functionalities for super user who will have access to create users, cancel access to user and

execute system administration.

v) Rate/Tariff Management:

There will be two types of Rate/Tariff definition in the System:

1. Dynamic Rating:

In this option there will be way to define customer and Dia wise Rate/Tariff. For an example:

If Customer type is Residential and Dia 0.5 Meter the rate/ tariff may be 250 taka per month.

For same dia different Customer type like Industrial rate /tariff may be different: 350 taka per month

2. Fixed Rating:

There may be fixed rate charge applicable for Customer type wise or Dia wise or location or combination

of any or all.

There will be an option to use slab wise billing and it can also be configured on customer type, Diameter

wise and usage basis. Other Pricing elements like surcharge, equipments cost, arrear charge etc.

Also in the system there will be options to add new pricing elements.

vi) Address/Location:

This system will have the both functionality of coding of address or location in numerically or

alphabetically. The system will provide the functionality of designing address hierarchy.


26

vii) Meter Information:

There will be option to store meter detail information’s like Meter type, Manufacturer, Billing cycle, etc.

Also will be additional features to tie up customer wise meter so that meter lifecycle can be tracked in

the system.

viii) Diameter Information:

There are different type of diameters exists in the whole water supply process and due to this there are

direct impact on Tariff/rate and water supply. In the system we will provide the features to add or

remove diameter types any point of the time. For removal of diameter all associated tariff/rate needs to

be changed first before execution.

ix) System Administration:

System administration is not only maintains the user creation and access management, also it will

ensure the uptime the system including backup of the database as well. Other system administration

functionalities will be shared in during training and handover process.

Bill Generation:

i) Customer wise Bill Entry:

If the rate/tariff designed in customer registration process then no need to enter any month transactional

data but if the process to rate on consumption although in fixed rate setup there is no need to entry data

for Bill generation. This will be integrated functionality for fixed rate. System will provide the options to

add additional charge for penalty or due to other reason if required.

For slub wise tariff there need to enter monthly consumption of each consumer to generate bill.

ii) Different types of bill generation:

There will be option to generate parametric reports starting from individual billing, all billing, Connection

bill, Advance bill, Part Arrear Bill, etc.

iii) Bill posting:

There will be functionality to post bills to confirm the calculation and processing. System will produce

both posted and unposted billing to review. User should post after proper reconciliation.

Reconciliation:

i) Input Reconciliation for Bill Generation: There will be an option to reconcile for entry of the

systems and it will provide the feature to check the entered data properly processing bill generation.


27

ii) Invoice Reconciliation: There will be mechanism for reviewing bill generation process through

invoice reconciliation functionality. Through this process user will be able to match with no of bill

generations data and invoice printed data.

iii) Collection Reconciliation:

This functionality will assist user to reconcile the collection of money in bank and system, so that it will

be ensure the right financial information the organization and review customers for collecting dues.

Reporting:

There will be several types of parametric reports as per business need and finalize in the requirement

finalization phase. Major already known reports are as follows:

Customer Register Report,

Active/Deactivate/Cancel Customers Information Report

Dia and Customer type wise Report

Arrear Bill Report

New Customer Report

Advance Bill payment Report

Bank Information Report

Bank Collection Report

Location Report

Single or all Bill Generation report

Part Arrear Bill Generation Report

Formats and parameters will be reviewed by KWAS at the time of requirement analysis phase.

Deliverables of this Engagement:

In this engagement GPIT will provide followings to KWASA:

1. Executables in Computer Readable Format to setup the Software: In Two Copies (2)

2. User Manual: Both Functional and Technical Manual in Two Copies (2)


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3. Initial Maintenance: Software Maintenance and user support will be provided free of charge

for an initial maintenance period of 4 calendar months.

4. Future Annual Maintenance:

After successful completion GPIT will provide two years annual maintenance support to KWASA.

For pricing please review commercial section.

Schedule of Project Delivery:

The schedule for the development and implementation for this project is given below

Major Milestone includes:

• Business requirement Document including sign off

• Development

• System Integration

• Installation and Configurations

• UAT

• User Training

• Go live

• Initial Maintenance period

Project timeline considering additional requirements collected so far:

The schedule for the development and implementation for this project is given below

Major Milestone includes:

• Business requirement Document including sign off

• Development

• System Integration

• Installation and Configurations

• UAT

• User Training

• Go live

• Initial Maintenance period

• Future Maintenance


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Project timeline considering additional requirements collected so far:

M4 M5 M6 2011 2012

W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 M2 M3 M4 Y1 Y2

Project Plan

Project Management

Requirement Analysis

Sign off Specification by WASA

Design

Development

Testing

Implementation

Training

Go Live

Handover

Initial maintenance

Future Maintenance

Utility Billing Software

Month1 Month2 Month3


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Annexure B- List of Services, Deliverables and Specifications for Accounting Software

Understanding of the Requirement:


Specific objective of KWASA:-

• Construction, operation and maintenance of necessary infrastructure for water supply for


• Construction, operation and maintenance of sewerage system

• Construction, operation and maintenance of drainage system

To achieve KWASA’s objective with other initiatives they want to implement integrated Accounting

software by establishing controls and regular reporting. ADB is providing their support under TA

project. In this regard KWASA already developed integrated accounting software with the help of

renowned chartered accountant firm Huda Vasi Chowdhury & Co. After reviewing existing software

and meeting with KWASA identifies following financial module’s which are required to make

functional:

1. Accounting Module

2. Inventory Module

3. Human Resource Information Module

4. Training Module

KWASA also requires training needs on above modules to execute the application by their own.

Our Approach to meet Project objective:


understood that KWASA wants to make functional their accounting software and train

the resources.

Considering all these GPIT propose following solutions:

• Send Professional resources to make this system functional

• Proper Training for resources to build capability both functional and technical

side

• Ensure support and maintenance to make the system up and running

This will ensure faster and Quality delivery to customer

Scope of Work:

Following is the Scope of work for this engagement:


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1. making functional of the existing Accounting System

2. Review Accounting Manuals prepared by Hoda Vasi as follows and if require revise:

• Accounts Manual

• Inventory Manual

• HR and Payroll Manual

• Training Manual

3. Guide KWASA personnel in data entry of existing accounting data and help them

generating tentative 6 month Financial Statements as of December 2010

4. Train accounting staff and provide intensive on the job training and coaching sessions as

necessary.

Out of Scope:

1. New module or new functionality development in the application.

2. Change request of existing functionality in the application.

Roles & Responsibility:

Following is the Roles & Responsibility for this project between GPIT & KWASA:

GP IT KWASA

Application Deployment Data Entry, Report Generation

Training Maintenance, Regular Backup &

Infrastructure Administration

2nd Level Support 1st Level Support to KWASA user


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Risks and Mitigation Plan:

Given in the table below are a few of the critical risks that GP IT has identified, with Action

Plans to mitigate them. During the course of Project Planning, these can be looked at in

greater detail.

Risk Intensity Mitigation Plan

Change in project

scope and

definition

High • The scope of the implementation project has to be

frozen before the start of the project.

• Any change in scope after the start of the project

will be addressed through Change Control

Procedures and may impact the project time and

cost.

• GP IT would raise all scope change requests from

users to the Steering Committee before accepting

such changes.

Delay in

providing inputs

or completing

activities for

which the KWASA

is responsible.

High • KWASA to identify personnel to work on the project

- full-time personnel on the project should be

relieved of non-project related responsibilities.

• GP IT to assign responsibilities and timelines to

KWASA designated personnel and help them

understand what is required of them.

• Commitment from the KWASA Top Management is

an important check against delays for their

activities.

Adaptability to

change

Medium • KWASA top management to communicate their

commitment to the project to all levels.

• KWASA to formulate a Change Management

Strategy through planned communication and user

training.

• GP IT to assist KWASA in change management by

providing inputs on progress, clarifications on

functionality and post-production support.

Delay in

providing

Hardware

Medium • KWASA to ensure that the Hardware is available as

per the Project Plan for Implementation.

Availability of

user SMEs

High • To plan for availability of user SMEs as required in

the resource plan. Mobilization / Year end pressures

as well as vacation have to be anticipated and

planned accordingly

Hardware

Delivery

High • On time Hardware delivery may impact project

schedule


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Annexure C – Payment Schedules

Based on the requirements and proposed Solution GPIT provide following pricing, which is agreed

by both the Parties:

A) Utility Billing Software:

Software Development, Implementation & Training:

Description Sub-Total (BDT)

1 Requirement Study, System Analysis & Design 200,000

2 Application Development 425,000

3 System Setup, Implementation 70,108

4 Training 163,040

5 Contingencies * 84,402

Grand Total (BDT) 942,550

Note: BDT Nine Lac Forty Two Thousand Five Hundred Fifty Taka only.

B) Accounting Software:

Based on the requirements and proposed Consultancy GPIT Provide

following Pricing:

Head Sub-Total

(BDT)

1Implementation & Training

3,54,000.00

Grand Total

3,54,000.00

In Words: BDT Three Lac Fifty Four Thousand

Change Request / Customization price:

If Party 1 requests for any application development or

enhancement within the validity period of this Agreement,

the same will be addressed by the Party 2 on the following

man day charge basis through amendment of this Agreement

vide change Request.

Man Day Rate: BDT 8520


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Future Maintenance:

After completion of successful initial maintenance period Party-1 and Party-2 may go for an

annual maintenance agreement. The pricing for the annual maintenance shall be as per the

followings:

Words: BDT Five Lac forty Thousand

Change Request / Customization price:

If Party 1 requests for any application development or enhancement within the validity period

of this Agreement, the same will be addressed by the Party 2 on the following man day charge

basis through amendment of this Agreement vide change Request.

Man Day Rate: BDT 8520

Payment Schedule:

The payment shall be made as per the following schedule:

Mile Stone Percentage

Successful Testing 50%

Successful Handover 50%

Commercial Terms and Conditions:

1. The pricing for software development is inclusive of any tax, vat and govt. duties

2. The pricing for Future Maintenance is exclusive of any tax, vat and govt. duties

3. The price quoted is based on the scope of work, assumptions and dependencies stated in this

document. Any changes to the scope will be taken up separately or change requests.

4. The pricing does not include hardware, software or third party tools.

Payment of Invoices:

• All invoices raised shall be payable within 15 days from the date of invoice. All invoices shall be

deemed to be accepted unless disputed within 7 days from the date of receipt of invoice.

HeadSub-Total

(BDT)

1 1st Year Maintenance Charge (20000/Month) 240,000.00

2 2nd Year Maintenance Charge (25000/Month) 300,000.00

Grand Total (BDT) 540,000.00


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• All payments required to be made by the Customer shall be in the currency stated in the invoice

and shall be transferred to a designated bank account in Bangladesh.

• If the customer fails to pay the fees and other payments within the stipulated time, the customer

shall be liable to pay interest at 1.5% per month on such amount of Fees and Payments that have

become due.

• If whole or any part of the Fees and other payments remain outstanding for 90 days after the same

have become due, GP IT shall at its sole discretion, be entitled to discontinue the provision of

services