Project Implementation Plan (PIP)

Transcription

1 Andhra Pradesh Rural Water Supply & Sanitation Project (World Bank Assistance) Project Implementation Plan (PIP) August 2009 Volume - I GOVERNMENT OF ANDHRA PRADESH Rural Water Supply & Sanitation Department 1

2 Table of Contents 1 EXECUTIVE SUMMARY SECTION I- PROJECT CONTEXT THE STATE OF ANDHRA PRADESH BRIEF PROFILE OF ANDHRA PRADESH DEMOGRAPHIC CHARACTERISTICS PHYSIOGRAPHIC CHARACTERISTICS WATER RESOURCES Surface water Ground water RURAL WATER SUPPLY & SANITATION SECTOR STATUS COVERAGE AND ACCESS OF WATER SUPPLY Water Supply- Coverage of Habitations Water Supply- Scheme coverage SOURCES OF DRINKING WATER QUALITY OF WATER RURAL SANITATION Overall current status of rural sanitation Sanitation coverage RWSS SECTOR INSTITUTIONS RWSSD Strengths and weaknesses of RWSSD PRI Institutions Overall existing institutional structure Recent institutional initiatives taken by GoAP Key issues under existing arrangements Justification for the Project SECTION II- THE AP RURAL WATER SUPPLY & SANITATION PROJECT AP RURAL WATER SUPPLY AND SANITATION PROJECT GOAP RWSS VISION & STRATEGY GUIDING PRINCIPLES AND DESIGN FEATURES OF THE APRWSS PROJECT FIVE YEARS GOALS APRWSSP KEY COMPONENTS Component A: Sector development Rs crore (US$12m) Component B: Infrastructure development - Rs crore (US$153.5m) Component C: Project Implementation Support Rs crore (US$14.5m) PHYSICAL OUTPUTS FROM THE PROJECT Sector development Infrastructure development Project Implementation Support Sub-component C1: Staffing & consultancy for PSU and D-PSU Sub-component C2: Equipment & Miscellaneous costs Sub-component C3: M&E Sub-component C4: Governance and Accountability Sub-component C5: Engineering support Sub-component C6: Community Support FUNDING REQUIREMENTS AND FINANCING OF THE PROJECT Financing plan SECTION III- IMPLEMENTATION ARRANGEMENTS INSTITUTIONAL ARRANGEMENTS FOR THE PROJECT

3 5.1 GUIDING PRINCIPLES FOR INSTITUTIONAL ARRANGEMENT PROPOSED INSTITUTIONAL ARRANGEMENT DETAILS OF THE PROPOSED INSTITUTIONAL ARRANGEMENTS FOR DISTRICT PROGRAM Overall structure State level arrangements District level arrangements Village level arrangements Institutional arrangements for SVS Institutional arrangements for MVS Roles and Responsibilities of various agencies Confirmation of Processes and Outputs IMPLEMENTATION ACTION PLAN FOR THE DISTRICT PROGRAM BATCH WISE IMPLEMENTATION OF WATER SUPPLY SCHEMES SANITATION & HYGIENE PROMOTION (SHP) ENVIRONMENTAL SANITATION GROUNDWATER MANAGEMENT BY COMMUNITIES CRITERIA FOR SELECTION OF DISTRICTS CRITERIA FOR SELECTION OF VILLAGES/ SCHEMES SCHEME CYCLE FOR SVS Pre-planning phase (2 months) Planning Phase (4 months) Implementation Phase (6-12 months) O&M Phase (4 months) SCHEME CYCLE FOR MVS Pre-planning Phase (2 months) Planning Phase (4 months) Implementation Phase (10-20 months) O&M Phase (4 months) CONTRACTUAL AGREEMENTS FOR DISTRICT PROGRAM IMPLEMENTATION Contractual Agreements for SVS (a)(i) MoU between DWSC & RWSSD upfront at the start of the Project (a)(ii) Joint undertaking for SVS between DWSC & GP (b)(i) Service Agreement between DWSC & RWSSD (b)(ii) Service Agreement between DWSC & Engineering Support (Private) (c) Service Agreement between GP-WSC, DWSC and Private Operator for O&M of SVS Contractual Agreements for MVS (a) MoU between DWSC, MVS-WSC & RWSSD (b) Joint Undertaking between GPs & MVS-WSC (c)(i) Service agreement between MVS-WSC, DWSC & Private Operator for O&M of MVS (Common Facilities) (c)(ii) Service agreement between GP-WSC, DWSC & Private Operator for O&M of MVS (Intra-Village Facilities) Service Agreements between DWSC & Self Help Group or Support Organisation IDENTIFIABLE MILESTONES TO MONITOR PROJECT USER COST SHARING PRINCIPLES Capital cost recovery O&M cost recovery FINANCIAL MANAGEMENT ARRANGEMENTS FINANCIAL MANAGEMENT FRAMEWORK BUDGETING FUND-FLOW AND DISBURSEMENT ARRANGEMENT ACCOUNTING AND FINANCIAL REPORTING FINANCE STAFFING INTERNAL/CONCURRENT AUDIT EXTERNAL AUDIT SUPERVISION PLAN TECHNICAL ARRANGEMENTS TYPE OF ACTIVITIES PROPOSED

4 8.2 QUALITY ENHANCEMENT IN DETAILED ENGINEERING TECHNICAL MANUAL DESIGN CRITERIA OF SVS DESIGN CRITERIA FOR MVS INDEPENDENT CONSTRUCTION QUALITY SURVEILLANCE CONSULTANTS (ICQSC) WATER QUALITY MONITORING CONSTRUCTION OF SCHEMES WITH INNOVATIVE TECHNOLOGIES TECHNICAL CAPACITY BUILDING AND ENGINEERING SUPPORT PROCUREMENT ARRANGEMENTS PROCUREMENT POLICY PROCUREMENT IMPLEMENTATION ARRANGEMENT PROCUREMENT ARRANGEMENTS Civil Works Goods Consultancies Operating Costs PROCUREMENT CAPACITY AND RISK ASSESSMENT METHODS OF PROCUREMENT AND PRIOR REVIEW THRESHOLD: PROCUREMENT PLAN PROCUREMENT-RISK MITIGATION ACTION PLAN Procurement Cell Contract Management System Procurement Monitoring Report Procurement Manual Capacity Building Social Oversight Disclosure Record keeping Complaint Redressal Mechanism Procurement Review and Audit NCB CONDITIONS RISK RATING FREQUENCY OF PROCUREMENT SUPERVISION MIS-PROCUREMENT Fraud and Corruption PROCUREMENT OF GOODS & WORKS Procurement schedule PROCUREMENT OF CONSULTANCY SERVICES Guidelines for procurement of consultancy services Steps for Hiring of Consultants Scope of Work Estimating Cost and Budget Advertisement seeking Expression of Interest Short Listing Evaluation Committee Evaluation Role of Bank in Evaluation Process Procurement of Services of Individual Consultant Procurement of Services of SO / SHGs COMMUNITY PROCUREMENT Principles of community procurements Key rules of community procurement Procurement of Goods Social Audit DELEGATION OF AUTHORITY Delegation of financial powers in the RWSS department Performance Indicators REVIEW REQUIREMENTS BY THE BANK Bank Review of Procurement of Goods and civil Works: Post Review Bank Review of Procurement of Consultancy

5 Prior Review: Post Review: SOCIAL ASSESSMENT SOCIAL ASSESSMENT OBJECTIVES BENEFICIARY ASSESSMENT STAKEHOLDER ANALYSIS IMPACT ASSESSMENT RISK ANALYSIS PLAN FOR ACQUIRING LAND FOR THE PROJECT TRIBAL DEVELOPMENT PLAN ECONOMIC ANALYSIS CAPACITY BUILDING NEED FOR CAPACITY BUILDING NEED ASSESSMENT CAPACITY BUILDING EXISTING INSTITUTIONAL SET-UP ROLE OF PSU AND CCDU CAPACITY BUILDING STRATEGY CAPACITY BUILDING DELIVERY MODEL At community/ GP Level At district level At state Level CAPACITY BUILDING PLAN PROJECT SPECIFIC RESOURCES FOR CAPACITY BUILDING TRAINING INSTITUTIONS COMMUNICATION STRATEGY FINDINGS FROM THE FIELD Level of awareness, availability and practice Issues in villages: readiness of the community Media usage patterns COMMUNICATION ACTION PLAN Diagnosis of field requirements The Overall Strategy Suggested Communication Strategy: Choice of media ENVIRONMENTAL MANAGEMENT FRAMEWORK OVERVIEW KEY ENVIRONMENTAL ISSUES & MITIGATION MEASURES Key environmental issues OBJECTIVES OF EMF ENVIRONMENTAL MANAGEMENT FRAMEWORK Key Elements of the EMF Application of EMF to Project Environmental Supervision and Monitoring INSTITUTIONAL ARRANGEMENTS FOR ENVIRONMENTAL MANAGEMENT PERFORMANCE INDICATORS TRAINING AND CAPACITY BUILDING Objectives Approach Institutions for Training Details of Training Programmes Budget for Environmental Management GOVERNANCE, TRANSPARENCY AND ACCOUNTABILITY ACCOUNTABILITY FRAMEWORK FACILITATING COMMUNITY AND CIVIL SOCIETY OVERSIGHT TECHNICAL AUDIT INDEPENDENT CONSTRUCTION QUALITY SURVEILLANCE CONSULTANTS

6 15.5 SOCIAL AUDIT MID TERM REVIEW BENEFICIARY ASSESSMENT FINANCIAL AUDIT ENHANCED DISCLOSURE OF INFORMATION FOR TRANSPARENCY DEVELOPING A CREDITABLE SYSTEM TO HANDLE COMMENTS, SUGGESTIONS AND GRIEVANCES MONITORING BY THE BANK MONITORING & EVALUATION OBJECTIVE COMPONENTS OF MONITORING & EVALUATION OF OUTCOMES RESULTS FRAMEWORK IMPLEMENTATION ARRANGEMENT Arrangement for Results Monitoring Reporting Management Information System Data Collection Tools Implementation Steps Annual Performance Awards M&E INDICATORS PILOT BATCH IMPORTANCE OF PILOT BATCH IDENTIFICATION OF 150 GPS MOBILIZING SUPPORT ORGANIZATIONS APPOINTMENT OF SHGS/ NGOS / SOS Baseline survey and WATSAN analysis Planning activities LIST OF ANNEXURE VOLUME II Annexure 1 Characteristics of Andhra Pradesh Annexure 2 Existing manpower details of RWSSD Annexure 3 Composition of PSU & DPSU Annexure 4 Cost of providing engineering support Annexure 5 Unit costs assumed for APRWSSP Annexure 6 MVS-WSC Bye-Laws Annexure 7 GP-WSC Bye Laws Annexure 8 The sequence of steps in promoting Total Sanitation Annexure 9 Summary of Scheme Cycle of SVS and MVS Annexure 10 A Scheme Cycle of SVS Annexure 10 B Scheme Cycle of MVS Annexure 11 MoU for Single Village Scheme Annexure 12 Joint Undertaking for SVS between DWSC and GP Annexure 13 Service Agreement for TSP - RWSSD Annexure 14 Service Agreement for TSP - Private Annexure 15 Service Agreement for O&M of SVS Annexure 16 MoU for Multi Village Scheme Annexure 17 Joint Undertaking for MVS between GP and MVS-WSC Annexure 18 Service Agreement for O&M of MVS (Common Facilities) Annexure 19 Service Agreement for O&M of MVS (Intra Village Facilities) Annexure 20 A Service Agreement for Support Organizations Annexure 20 B Service Agreement for Self Help Groups Annexure 21 Estimation of tariff for MVS Annexure 22 Existing financial management practices at PRIs Annexure 23 Existing financial management practices at RWSSD 6

7 Annexure 24 Format for works to be procured Annexure 25 Format for Goods, Equipment, Vehicle, Furniture to be procured Annexure 26 Format for consultancy services to be hired Annexure 27 Format for bid packages Annexure 28 Tools & techniques used for Social Assessment Annexure 29 Socio-economic profiles of direct beneficiaries of APRWSSP Annexure 30 Expectations of beneficiaries from the Project Annexure 31 Project impacts Annexure 32 Methodology to address Project risks Annexure 33 Resettlement Policy Framework and Land Entitlement Framework Annexure 34 Scheme cycle of a TDP Annexure 35 Economic Analysis Annexure 36 Capacity Building Delivery Model Annexure 37 Guidelines for identification and selection of water supply sources - EMF Annexure 38 Water quality monitoring & surveillance Annexure 39 Guidelines to conduct sanitary survey of water supply sources Annexure 40 Sanitary protection of water supply sources Annexure 41 Guidelines for sustainability of ground water sources Annexure 42 Fluoride mitigation Annexure 43 Selection of safe sanitation technologies and environmental considerations in location of toilets Annexure 44 Recommended Construction Practice and Pollution safeguards for Twin Pit Pour Flush Latrines Annexure 45 Guidelines for Safe Sullage Disposal at household and community level Annexure 46 Guidelines for community solid waste management Annexure 47 - Safety provisions (building) convention, 1937 (No. 62) Annexure 48 Sample format for Environmental Data Sheet (EDS) Annexure 49 Screening tools for categorizing schemes Annexure 50 Internal supervision of completed schemes Annexure 51 External audit of the completed schemes Annexure 52 Arrangements for Results Monitoring of Key Indicators Annexure 53 Quarterly summary report Annexure 54 Program physical progress & process indicator report Annexure 55 Annual Performance Award Annexure 56 Baseline indicators Annexure 57 - Procurement Performance Indicators Annexure 58 Indicators for measuring performance of SVS Annexure 59 Indicators for measuring performance of MVS Annexure 60 Output based indicators Annexure 61 Governance and Accountability indicators Annexure 62 Sustainability indicators Annexure 63 APRWSSP calculations (Spread Sheets) LIST OF EXHIBITS Exhibit 1: Total outlay of APRWSSP (Rs. crore) Exhibit 2: Overall proposed institutional structure for the proposed Work Bank Project Exhibit 3: Key Outcome Indicators (details in Annexure 57, Annexure 58, Annexure 59, Annexure 60, Annexure 61 and Annexure 62) Exhibit 4: Depletion of ground water level: pre-monsoon to post monsoon Exhibit 5: Habitation coverage through rural water supply (2008) Exhibit 6: Sources of drinking water supply Exhibit 7: States affected by fluoride Exhibit 8: Coverage with household toilets (July 2009) Exhibit 9: Status of environmental sanitation

8 Exhibit 10: Coverage of drainage Exhibit 11: Existing institutional structure Exhibit 12: Physical outputs for construction of water supply facilities Exhibit 13: Physical outputs for rehabilitating and augmenting existing water supply schemes Exhibit 14: Physical outputs for construction of sanitation facilities Exhibit 15: Physical outputs for construction of environmental sanitation facilities Exhibit 16:- The staffing requirements at PSU and D-PSU Exhibit 17: Physical targets in terms of habitations to be provided with engineering / community support Exhibit 18: Physical targets in terms of habitations to be provided with engineering / community support Exhibit 19: Component wise outlay for proposed APRWSSP Exhibit 20: Overall proposed institutional structure for the District Program Exhibit 21: State level institutional arrangements Exhibit 22: Composition of SWSM Exhibit 23: Staffing requirements at PSU Exhibit 24: Set up of DWSM Exhibit 25: Set up of DWSC Exhibit 26: Composition of MVS-WSC Exhibit 27: District level institutional arrangements Exhibit 28: Composition of GP-WSC Exhibit 29: Village level arrangements Exhibit 30: Institutional arrangements for SVS & MVS (Asset creation & O&M) Exhibit 31: Roles & responsibility matrix Exhibit 32: Batch wise coverage of Habitations (APRWSSP) Exhibit 33: Physical outputs for construction of sanitation facilities Exhibit 34: Physical outputs for construction of environmental sanitation facilities Exhibit 35: Scheme cycle for SVS Exhibit 36: Project cycle of new MVS Exhibit 37: Existing PAO system Exhibit 38: Proposed fund flow and disbursement arrangements Exhibit 39: Audit reports Exhibit 40: Design components of MVS Exhibit 41: Checklist of construction quality monitoring Exhibit 42: Procurement methods for works, goods & services and threshold value Exhibit 43: Procurement methods for consultancy services Exhibit 44: Flow chart of the procurement process Exhibit 45: Grouping of service contracts Exhibit 46: Delegation of authority Exhibit 47: Delegation of financial powers Exhibit 48: Direct and indirect stakeholders of the APRWSSP Exhibit 49: Land requirement depending on scheme type Exhibit 50: Land requirements for SVS & MVS Exhibit 51: Implementation arrangements for TDP Exhibit 52: Grievance Redressal Mechanism Exhibit 53: Key stakeholders and their learning requirements Exhibit 54: Key stakeholders and their learning requirements Exhibit 55: Training institutions and their possible role Exhibit 56: Checklist to find out community readiness Exhibit 57: Stakeholder message media Exhibit 58: Choice of media Exhibit 59: Overview of EMF activities Exhibit 60: Institutional arrangements for environmental management Exhibit 61: Number of suggested training programs Exhibit 62: Budget for environmental management Exhibit 63: Accountability Framework at various stages of the scheme cycle Exhibit 64: Disclosure of information for transparency Exhibit 65: Key Indicators - Result framework matrix Exhibit 66: IDA project monitoring and evaluation indicators Exhibit 67: Summary of Monitoring Reports Exhibit 68: MIS - Flow of Information / Reports Exhibit 69: Project Monitoring Reports Exhibit 70: Feasibility format used to select the initial list of GPs Exhibit 71: Appointment of SOs/GPs Exhibit 72: Criteria for selection of GPs Exhibit 73: Name of selected GPs

9 AE AEE AMR-APARD AP APMAS APMSS APRWSSP APSPCB APWALTA ARWSP ASCI AUWSP BCM BE BRO CAG CAP CBO CCDU CE CGG CGWB CLTS CP CQ CSS CV CWRDM DAP DDWS DEE DPR DRP DSR DSTE DSU DTC DWSC DWSM EA ECOP EE E-in-C EMF EOI LIST OF ABBREVIATIONS Assistant Engineer Assistant Executive Engineer AMR- A.P. Academy of Rural Development Andhra Pradesh Andhra Pradesh Mahila Abhivruddhi Society Andhra Pradesh Mahila Samatha Society Andhra Pradesh Rural Water Supply & Sanitation Project Andhra Pradesh State Pollution Control Board Andhra Pradesh Water and Land Tree Act Accelerated Rural Water Supply Program Administrative Staff College of India Accelerated Urban Water Supply Program Billion Cubic Metres Budget Estimate Budget Release Order Comptroller and Auditor General of India Community Action Plan Community Based Organization Communication and Capacity Development Unit Chief Engineer Centre for Good Governance Central Ground Water Board Community Led Total Sanitation Commercial Practices Consultants Qualification Community Sanitation Schemes Curriculum Vitae Centre for Water Resources Development and Management Devolution Action Plan Department of Drinking Water Supply Deputy Executive Engineer Detailed Project Report District Resource Person Detailed Scheme Report Department of Science, Technology & Environment District Support Unit District Training Centre District Water and Sanitation Committee District Water and Sanitation Mission Environmental Analysis Environmental Code of Practices Executive Engineer Engineer-in-Chief Environment Management Framework Expression of Interest 9

10 ESCI FBS FC FMM FT GIS GoAP GoI GP GP-WSC GWD Hab HP HRD HUDCO IC ICB ID IDA IEC IHHL IPCR IPQA IPTA ISL LCS LoC LPCD M&E MCRHRDIAP MIS MLA MNP MoEF MoF MoRD MoU MP MP MRP MVS MVS-WSC MWSC NABARD NAC NC LIST OF ABBREVIATIONS Engineering Staff College of India Fixed Budget Selection Fully Covered Financial Management Manual Facilitating Team Geo Information System Government of Andhra Pradesh Government of India Gram Panchayat Gram Panchayat Village Water Supply and Sanitation Committee Ground Water Department Habitation Hand Pumps Human Resource Development Housing and Urban Development Corporation Limited Individual Consultant International Competitive Bidding Irrigation Department International Development Association Information Education and Communication Individual Household Latrine Implementation Phase Completion Report Implementation Phase Quadruple Agreement Implementation Phase Tripartite Agreement Individual Sanitary Latrine Least Cost Selection Letter of Credit Liters per capita daily Monitoring and evaluation Dr. MCR Human Resource Development Institute of Andhra Pradesh Management Information System Member of Legislative Assembly Minimum Needs Program Ministry of Environment and Forests Ministry of Finance Ministry of Rural Development Memorandum of Understanding Mandal Parishad Member of Parliament Mandal Resource Persons Multi Village Scheme Multi Village Scheme - Water Supply Committee Mandal Water & Sanitation Committee National Bank for Agriculture and Rural Development National Academy of Construction Not Covered 10

11 NCB NGO NGP NIRD NSS O&M OHSR PAF PAP PC PMGY PMR PRA PRED PRI PSP QBS QCBS RO RFP RTI RWSSD SA SE SEA SEIAA SHG SMP SO SRP SRTRI SSS SVS SLWM SWSM TOR TSC UC VST WALAMTARI WB WSM ZP LIST OF ABBREVIATIONS National Competitive Bidding Non Government Organization Nirmal Gram Puraskar National Institute of Rural Development No Safe Source Operation and Maintenance Over Head Storage Reservoir Project Affected Family Project Affected Person Partially Covered Pradhan Mantri Gramodya Yojna Project Monitoring Report Participatory Rural Appraisal Panchayati Raj Engineering Department Panchayati Raj Institution Public Stand Post Quality Based Selection Quality & Cost Based Selection Reverse Osmosis Request for Proposal Right to Information Rural Water Supply and Sanitation Department Service Agency Superintending Engineer Sector Environmental Analysis State Environmental Impact Assessment Authority Self Help Group Sub-Mission Program Support Organization Sector Reform Project Swamy Ramananda Tirtha Rural Institute Single Source Selection Single Village Scheme Solid and Liquid Waste Management State Water & Sanitation Mission Terms of Reference Total Sanitation Campaign Utilization Certificate Village Support Team Water and Land Management Training and Research Institute World Bank Water and Sanitation Mission Zilla Parishad 11

12 1 Executive Summary A Project context In recent years, the Government of Andhra Pradesh (GoAP) has taken a number of steps to improve rural water supply and sanitation (RWSS) situation, including important policy decisions for greater devolution to the Panchayat Raj Institutions (PRIs). GoAP also plans to enhance investments to achieve substantially higher coverage of RWSS services in the rural areas. It is in this context that GoAP has envisioned an Andhra Pradesh Rural Water Supply and Sanitation Project (APRWSSP), which forms part of the GoAP s medium term sector investment program. The APRWSSP uses a District Program approach to develop the RWSS sector programs in six districts with uniform policies and institutional arrangements adopted across the district, irrespective of sources of financing. B Sector status and issues Andhra Pradesh (AP) is the fifth largest state in the country with over 76 million population (census 2001) and spread across 276,754 sq. km. While the state has three major rivers, the Godavari, Krishna and Pennar and also significant amount of ground water, it faces serious challenges in water resources management for drinking and domestic purposes. The challenges of depletion of ground water levels and quality problems (fluoride and salinity) in some parts of the state need to be addressed urgently. There is a high dependence on ground water for drinking and other domestic purposes. About 40% rural households have access to piped water schemes, with most villages getting water supply through public stand posts. Out of 72,072 habitations in the state, about 46% are Fully Covered, 9% are Not Covered and 1% have No Safe Source. About 80% habitations covered under water supply schemes are served through Single Village Schemes (SVS) and about 11% habitations are covered through Multi Village Schemes (MVS), and the balance through hand-pumps. Sanitation coverage is 59% in the state with about 63% in the rural areas. Open defecation is quite prevalent, leading to significant pollution and health issues. AP, like many other states, has introduced Total Sanitation Campaign (TSC), a centrally sponsored scheme for promoting sanitation programs. C RWSS Institutions RWSS Department (RWSSD) is the nodal agency for all activities related to rural water supply and sanitation. The RWSSD is responsible for planning, design and implementation of schemes (SVS and MVS) and operations and maintenance (O&M) of MVS. The department has extensive network of staff at the state, district and mandal levels with rich field experience in planning and implementation of simple and complex schemes. Gram Panchayats (GPs) are presently involved in the O&M of SVS and intra-village facilities (IVFs) of MVS with substantial hand-holding support by the RWSSD field staff. The role of PRIs such as Mandal Parishad (MP) and Zilla Parishad (ZP) has been limited to implementation of programs such as Swajaldhara, TSC and provision of TFC funds for O & M of MVS. The state has set up State Water and Sanitation Mission (SWSM) to implement Swajaldhara and TSC programs. D Institutional Initiatives GoAP has recently taken-up several institutional initiatives, including the following: Devolution to Zilla Parishads and Gram Panchayats: In view of importance being accorded to the PRIs at the district and village levels, the GoAP has devolved certain 12

13 RWSS sector responsibilities to lower levels of the governance structure. For example, the responsibility of O&M of SVS has been devolved to the GPs. Demand driven participation and decentralization: GoAP has introduced Sector Reform Program (SRP), a Government of India (GoI) sponsored program in This program was scaled up as Swajaldhara in December 2002 and has been implemented throughout the State. Formation of Water & Sanitation Missions (WSMs): Water and Sanitation Missions (WSMs) at the State and District level have been formed to support reform programs like Swajaldhara and the TSC. Significant efforts have been made by the SWSM towards building capacity of the PRIs. E Key issues under existing arrangements The rural water supply schemes in AP have been largely implemented under the supply driven approach. This supply drive (top-down) approach has been followed in scheme designing, implementation and O&M. The community is generally not involved in deciding the technology options, site and infrastructure locations, actual demand for services etc. Some key institutional issues are: Conflicting role of governance and execution: Governance, policy making, execution and regulation roles have all converged at present into the RWSSD. There is need for separation of roles and responsibilities pertaining to governance and execution in order to achieve higher levels of accountability. Role shift of RWSSD from provider to facilitator: At present, the role of the RWSSD is that of a provider. Despite attempts at decentralization and devolution of roles and responsibilities, the RWSSD has not yet started the transformation process. Linkages with Water & Sanitation Missions: Operational linkages between the RWSSD and the Water & Sanitation Missions (WSMs) at the state, district, mandal and village level requires strengthening. Centralized decision making in approval and sanction of schemes: The current system of centralized administrative sanctions and technical sanctions results in long processing time and delays in execution. Limited involvement of community: There is limited involvement of the community in planning, implementation and O&M of RWSS facilities. Awareness and capacity building: There is hardly any technical capacity with the PRIs and the community for effectively taking over and managing the RWSS services. There is immediate need for building capacity of the PRIs and the communities to enable their effective participation in all stages of RWSS activities. F Vision, Policy and outcomes In the context of key sector issues, the GoAP has envisioned the APRWSSP to realize the goal of improving service delivery through progressive decentralization. The GoAP has prepared an investment plan to support improvements in service delivery. The GoAP s strategy is based on the key fundamental principles of: a) decentralization and devolution b) accountability and transparency c) financial and environmental sustainability. The GoAP is committed to strengthening the three tier PRIs (district, mandal and village levels) through a gradual program of devolution of funds, functions and functionaries. It is also proposed that there will be progressive transformation of the role of RWSSD from a Provider of services to Facilitator. To achieve financial sustainability, the GoAP will adopt policy decisions on full O&M cost recovery, based on affordability and equity. Capital cost contributions are also envisaged in a limited and progressive manner. 13

14 The physical targets expected to be achieved under the APRWSSP are listed below: 2,235 (NC / NSS / PC) habitations will be provided with water supply through SVS. 400 (NC / NSS / PC) habitations will be served with water supply through MVS. 600 SVS will be augmented or rehabilitated 1,250 rain water harvesting structures will be built. 30 habitations will be provided with innovative technology. 2,235 ground water sources will be recharged. Individual Sanitary Latrines (ISLs) in 105,400 BPL households will be built. 45 selected major GPs will be provided with pavements, drains and Solid and Liquid Waste Management (SLWM). Soak pits will be dug in households in all the 2,635 habitations. 10 Mandal head quarters will have UGD. In addition, capacity building activities will be taken up. These activities include, but are not limited to, the following: IEC to all stakeholders. Capacity building of sector institutions, PRIs and communities. Project implementation and M&E support to the sector institutions and PRIs. G APRWSSP The APRWSSP covers 6 selected Districts with an overall budget of Rs 864 crore or $180 million (@Rs 48=1$). It will be implemented through 3 major components: Component A: Capacity and Sector Development (US$12m): This component will support the building of institutional capacity for implementing, managing and sustaining the project activities, along with sector development studies to inform policy decisions. Component B: Infrastructure Development (US$153.50m): This component will support investments for improving water supply and sanitation services in the project habitations, including construction of new infrastructure or rehabilitation and augmentation of existing schemes, with safe disposal of waste-water. These investments would be made in an integrated manner with source strengthening and catchment area protection activities; construction of latrines for BPL households; solid waste management activities; community awareness programs for improving sanitation and hygiene practices; and incentives for achieving open defecation free status. The MVSs, mainly relying on surface water sources, will be taken up for habitations where the local source is either not sustainable or of not acceptable quality. Component C: Project Implementation Support (US$14.50m): A Project Support Unit (PSU) under the SWSM, assisted by staff in the districts (D-PSUs), will implement and manage the WB Project. This component includes establishing and operationalizing the following systems: (i) Sector Information System (SIS) and Monitoring and Evaluation (M&E) System for the Sector Program and the Project; and (ii) Financial Management System for administering funds and expenses for the Project. Exhibit 1: Total outlay of APRWSSP (Rs. crore) Total A. Sector development B. Infrastructure development C. Project Implementation Support TOTAL (A+B+C)

15 H Institutional and implementation arrangements The GoAP has proposed an institutional arrangement for effectively implementing the Project (Exhibit 2). The proposed arrangements are based on extensive stakeholder discussions, including a number of criteria such as improvements in service delivery, decentralization, accountability, sustainability and a pragmatic approach for a five year program. The project will finance RWSS programs in those districts that commit upfront and adopt the following district-wide principles: (i) Progressive Decentralization: The participating districts will scale up the policies and institutional arrangements based on Swajaldhara principles. The District Water and Sanitation Mission (DWSM) established under the Zilla Parishad (ZP-district PRI) will be responsible for the district RWSS program and policy, with the District Water and Sanitation Committee (DWSC) as its executive arm for implementing the program. The RWSSD Engineering Divisions, under a service contract agreement, will provide technical support to the DWSC for designing and implementing the schemes. The following are the main devolved responsibilities: New Single Village Schemes: The DWSC will work with the GP Water Supply and Sanitation Committee (GP-WSC), a sub-committee of the GP, to plan, design and implement the SVS and the intra-village facilities of the MVS. The community participation will be strengthened with inclusion of women Self Help Groups in the GP-WSC. The GP-WSC will endorse and sign-off the final scheme design and payments made during scheme implementation stage. The tariff-setting and O&M of the scheme will be the responsibility of the concerned GP. New Multi Village Scheme: The RWSSD Engineering Divisions will assist the DWSCs to form Multi Village Water Supply and Sanitation Committees (MVS-WSCs) comprising Chairpersons of the participating GPs. The RWSSD will then support the DWSC to plan, design and implement the MVS in participation with the MVS-WSC. The RWSSD Engineering Division will take endorsement and sign-off from the MVS-WSC during each stage of scheme planning, design and implementation. The O&M of the common facilities (bulk water supply) for the MVS will be the responsibility of the MVS-WSC. A single contract for designing, building and operating the MVS is encouraged. The commercial orientation of all schemes will be improved through performance improvement plans, contractual agreements for construction and maintenance, billing and collection of user charges, bulk water metering, etc. Existing SVS and MVS: The district program will support the rehabilitation and augmentation of existing schemes under common program and policies throughout the district. (ii) District-wide Program and Planning: The DWSC under the District Collector will be responsible for implementing the district program and policies. The DWSC will take into consideration the district demand and priorities, and technical feasibility and sustainability requirements. Planning and prioritization of water supply schemes will be based on demand for SVS from GP (bottom-up) and reconciled with proposals identified by the DWSC for MVS (top-down). Sanitation programs will be specially designed, taking into consideration the need for IEC and hygiene promotion activities. Capacity will be built with the DWSC for implementing the district program. 15

16 (iii) Community Participation: The project supports community participation at all stages of the scheme cycle, with the GP-WSC ensuring representation from the participating habitations. The existing Self Help Groups, which are powerful and well-established women groups under various on-going programs in AP, will help the GP-WSC in reaching out to the communities. (iv) Improved Accountability: Accountability will be enhanced through a clear separation of Governance and Operational Aspects, with clear mandates and relationship structures between the various sector agencies, institutions and stakeholders. At the state level, the SWSM will be responsible for overall RWSS policy formulation and budget allocation. At the district level, the DWSM will be responsible for the RWSS program and policies, which will be implemented through the DWSC. The RWSSD Engineering Divisions will enter into a service contract agreement with the DWSC to provide technical support to the DWSC for designing and implementing the schemes. For SVS, the GP-WSC will endorse and sign off the scheme design and the payments made during implementation stage, and will be responsible for O&M of the scheme. For MVS, the MVS-WSC will endorse and sign-off the MVS scheme design and payments made during implementation stage, and will be responsible for the O&M of the MVS common facilities. The O&M service performance criteria will be agreed and monitored for all schemes. The use of robust and transparent procurement and financial processes along with technical and social audits will enhance accountability. The RWSSD Engineering Divisions will be responsible for the technical quality of the district sub-projects. The State level PSU will carry out the independent quality checks and beneficiary assessments. (v) Improved Financial Sustainability: The participating districts will adopt district-wide policies on capital cost contributions and O&M cost recovery based on agreed affordability criteria2. The capital cost contributions will be applicable to all new schemes, while O&M cost recovery will be applicable for all schemes (existing and new). The following are the guiding principles: Contributions to Capital Cost: The GP will contribute towards the cost of all new investments (amount not to exceed 10% of capital cost or Rs 500 per household, whichever is lower), through beneficiary household contributions. The community contribution for the Scheduled Caste (SC) / Scheduled Tribe (ST)/ BPL households will be on a concessional basis (amount not to exceed 5% of capital cost or Rs 250 per household, whichever is lower). The above contributions may be in cash or labour, as decided by the GP. Contributions to O&M Cost: The O&M cost for all investments (SVS and MVS) will be fully recovered through user charges, subject to an affordability ceiling. The O&M charges for all new schemes will be fixed prior to the commencement of the scheme. For MVS, the DWSC will decide the bulk water charges prior to approval of the MVS. In case of high cost schemes, the amount exceeding household affordability level (Rs 45 per month) will be subsidized by the GP for SVS and ZP for MVS. (vi) Integrated Water Supply and Sanitation Program: The water supply investments will be made in an integrated manner with source strengthening and catchment area protection activities, rainwater harvesting systems, sanitation programs for construction and use of individual household latrines, safe disposal of waste-water, solid waste management, and community health and hygiene awareness programs for improved and sustainable benefits across the community. The sustainability of water and sanitation systems will be strengthened through improved design, construction and O&M practices. Awards to the best performing GPs: Under the project, annual awards to the best performing 10 GPs in each district per year will be given, using a score card method for 16

17 combined water supply and sanitation service delivery improvements that are endorsed by the beneficiary communities. The prize money shall be utilized to improve internal roads, drainage, street lighting etc, for community purpose as prioritized by Grama Sabha, as is being done in NGP declared villages of TSC. Exhibit 2: Overall proposed institutional structure for the proposed Work Bank Project Implementation of APRWSSP is planned through 4 overlapping batches over a period of 5 years, starting December Each batch would be about 2 years in duration. Each SVS batch will follow the agreed scheme cycle which consists of distinct phases viz. pre-planning (2 months), 17

18 planning (4 months), implementation (6-12 months) and post implementation (4 months). Similarly each MVS batch will require pre-planning (2 months), planning (4 months), implementation (10-20 months) and post implementation (4 months) and thus spread over 20 to 30 months. Within the selected Districts, communities and villages from where the demand arises will be prioritized for inclusion, based on predefined prioritization criteria by the district level institutions. The choice of SVS or MVS will be based upon a number of techno-economic criteria and as defined in the PIP. Operation and Maintenance of SVS and Intra-village facilities would be taken up by GP-WSC. O & M of MVS (Common facilities) would be taken up by RWSSD by outsourcing through a service management contract. Formats for Agreements/ MoUs/ Joint Undertakings to be signed between various stakeholders such as DWSC, RWSSD, GP-WSC, MVS-WSC, etc. have been developed. The existing state financial management systems of GoAP will be used for the project. These systems relate to budget allocations and fund flow for the project, financial sanctions and approvals, and require all payments to be made through the state government's Pay and Accounts (PAO) System, as per rules of the GoAP. As per the state financial management system, the Engineer-in-Chief RWSSD allocates the funds to the RWSSD Engineering Divisions through the LoC mechanism, authorizing them to incur expenditures till the limit indicated in the LoC. A copy of the LoC will be sent to the DWSC to provide information on the allocation and limits to which the DWSC can authorize payments. Once a specific work or component of work is completed and check measured, the Deputy Executive Engineer of the RWSSD field division will raise the bill for payment in respect of the works completed. The GP-WSC will "endorse and sign-off" the bills raised by the Deputy Executive Engineer for payment, who will then forward these it to the Executive Engineer of the RWSSD Engineering Division. The latter will approve the bills, seek authorization from the DWSC and forward these to the PAO for payment. In respect of the MVS, the same procedure will be adopted with the concerned MVS-WSC for endorsing and signing-off the bills for works or components completed, before sending it to the PAO for payment. For disbursements, the quarterly Interim Unaudited Financial Reports (IUFRs) will be prepared by the PSU on the basis of consolidated actual expenditure information received from the D-PSU. Procurement arrangements will be based on a Procurement Manual prepared for the Project that outlines the procurement policies, processes, checks & balances for procurement of goods, works and services. The Manual stipulates that procurement of goods, works and services will be carried out in accordance with the World Bank Guidelines: Procurement Under IBRD Loans and IDA Credits dated May 2004, revised October 2006 and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004 revised October This Manual will be disseminated to all DWSCs and other agencies engaged in the implementation of the project and all procurement under the project will be handled as per provisions in this Manual. Audit - The Comptroller and Auditor General (CAG) will be the statutory auditor and will follow clearly established procedures for all utilization of funds and other financial matters. Technical and social audits will also be carried out to bring about efficiency, transparency and accountability. Independent Construction Quality Surveillance Consultants (ICQSC): The RWSSD will carry out the day-to-day monitoring of works and materials procured for SVS & MVS. In addition, the State PSU will hire ICQSC to monitor the quality of supervision of works and ensure the quality of the materials procured and the construction quality of works. I Project Monitoring and Evaluation A monitoring and evaluation framework has been developed for the APRWSSP which includes: Project Monitoring on the Project inputs, processes and outputs to assess the Project implementation performance. Results Monitoring consisting of intermediate result indicators to measure performance of Project components and sub-components including sustainability of service delivery. 18

19 Evaluations to assess achievement of development objectives of the Project using specific outcome indicators. The key outcome Indicators are given below. Exhibit 3: Key Outcome Indicators (details in Annexure 57, Annexure 58, Annexure 59, Annexure 60, Annexure 61 and Annexure 62) 2. USE OF OUTCOME PDO 1. OUTCOME INDICATORS INFORMATION To improve rural water supply and sanitation services through progressive decentralization, community participation and enhanced accountability. Intermediate Results Indicator 1: People / households (number) in project areas with access/use to improved water supply services. Indicator 2: People / households (number) in project areas with access/use to adequate piped water supply throughout the year. Indicator 3: People / households (number) in project areas adopting improved hygiene and sanitation practices. Indicator 4: Improvements in cost recovery (%): (i) contribution to capital cost; (ii) contributions to O&M cost; and (iii) collection efficiency. 1. RESULTS INDICATORS FOR EACH COMPONENT Component 1: Sector Development and Capacity Building R 1: Decentralized institutional framework established and functional. R 2: Capacities built of participating PRIs and RWSSD Indicator 5: Number of water utilities the project is supporting Indicator 6: Number of other water service providers the project is supporting Indicator 7: % SVSs constructed in participation with GPs against the total target. Indicator 8: % MVSs constructed in participation with ZPs as against the total target. Indicator 9: % participating GPs meeting the full O&M cost through user charges. Indicator 10: Capacity building activities undertaken as per agreed strategy and plan in response to the requirements of the scheme cycle Indicator 11: Annual project fund utilization within 10% shortfall as per agreed estimates Assess whether expected results are being achieved and whether district program implementation strategy and plan are working. 2. USE OF RESULTS MONITORING Review of decentralization process as a sector development activity. Ensure that planned capacity building activities like exposure visits, training, IEC, technical assistance, analytical studies and knowledge sharing are undertaken to achieve expected results. 19

20 Component 2: Infrastructure Development R 3: Improved RWS asset creation and management R 4: Improved hygiene and sanitation practices Component 3 : Project Management R 5: World Bank Project M&E System and Sector Information System established and operational Indicator 12: Improved Community water points (shared connections) constructed or rehabilitated under the project. Indicator 13: New piped household water connections that are resulting from the project intervention. Indicator 14: Piped household water connections affected by rehabilitation works undertaken under the project. Indicator 15: % constructed SVS and MVS yielding required quantity and quality of water Indicator 16: % commissioned schemes with catchment area treatment/source sustainability measures in-built into the design Indicator 17: % households having access to safe sanitary latrines. Indicator 18: % habitations/villages having well maintained drainage as against the total habitations/villages planned to be covered. Indicator 19: % habitations/villages with compost pits, soak pits, and garbage pits constructed as against the total number of villages planned. Indicator 20: Field based periodic reviews undertaken by SWSM /PSU Indicator 21: % SVS/MVS which have carried out: (a) third party supervision quality checks; (b) community monitoring /social audits; (c) beneficiary assessments. Indicator 22: Baseline data collected for project villages as per agreed baseline format; and impact evaluation (mid-term and end-term) as planned by independent agencies Indicator 23: External Audit of environmental performance of Project. Track functionality and source sustainability of created RWS schemes for improved asset management. Assess improvement in access to safe sanitation, with midcourse corrections in implementation strategy and plan, as required. Track results, ensure concurrent community oversight, and undertake third party verification of program outcomes and impact Monitoring Reports formats have been designed to incorporate the reporting needs of all functionaries. A MIS will be designed and implemented for strengthening the existing databases within the RWSSD. Financial Management reporting system will also be incorporated in the MIS, 20

21 covering physical outputs for each sub-component; financial utilization against planned annual budget, as well as component wise result indicators. J Detailed Project Implementation Plan This PIP covers exhaustive details of APRWSSP and its components, institutional model, policy initiatives and implementation arrangements covering planning, financial; technical; environmental; procurement and social processes. The PIP is organized as Volume I containing the main text and Volume II with all Annexure required for implementation of the Project. 21

22 Section I- PROJECT CONTEXT 22

23 2 The State of Andhra Pradesh 2.1 Brief profile of Andhra Pradesh AP is India s 5 th largest state and is spread over 276,754 sq. km accounting for 8.37% of the total area of the country. It has a coastline stretching over 1,200 kilometers. For administrative purposes, AP has been divided into 23 districts (22 rural districts), each of which is divided into revenue mandals. The state comprises of 1,105 revenue mandals and 21,856 Gram Panchayats. Each mandal has around revenue villages with Gram Panchayats as the village level local government. Each revenue village has around 1 to 5 habitations. On the basis of history and socio-cultural aspects, the state can be classified into three regions - Coastal Andhra, Rayalseema and Telangana. The tribal dominated hilly areas which spread across the Telangana and Coastal Andhra regions are particularly under-developed and have a unique set of problems. The economy of the state is largely dependent on agriculture. About 70 % of the total population of the state depends on farming for their livelihood. The state also has a vast variety of mineral resources and is ranked 2 nd in the country in minerals. These mineral resources contribute significantly to the state s economy. Rural literacy is 55 percent as against all-india average of 59 percent. Over a period of time, AP has improved its economy. Currently around 25 percent of the population in AP lives below the poverty line. This is a steep decline from the past. The same trend is true of rural populations as well. The detail profile of Andhra Pradesh is presented in Annexure Demographic characteristics AP has a population of over 76 million (as per 2001 census) (55.4 million rural population) accounting for 7.4% of the country s population. Key characteristics, as per 2001 census, are: 73% of the population lives in rural areas; Decadal growth rate during is 14.59% (All India %). Sex ratio is 978 as against 933 for India. Population of SCs and STs works out to 16.19% and 6.59% respectively. Literacy rate is 60.47% as against the literacy rate of 64.84% in India. Per capita income is estimated at Rs 33,970 in Physiographic characteristics AP is endowed with a variety of physiographic features ranging from high hills, undulating plains to a coastal deltaic environment. The state has three major perennial rivers Godavari, Krishna and Pennar and several other rivers of lesser significance. The rivers flow easterly towards the Bay of Bengal. The state has areas rich in water resources but also has semi-arid regions where agriculture is mainly rain-fed. The rainfall of AP is influenced by the south-west monsoons (accounts for 70% of the annual rainfall) as also north-west and north-east monsoons. It varies considerably across the state. For example, although average annual rainfall is 940 mm, the southwestern area of Rayalseema district typically receives less than 700 mm. One third of the population of AP lives in drought-prone areas especially in Rayalseema and Telangana districts. On an average, once every five years, the average state rainfall is below 750 mm. 2.4 Water Resources The natural sources of available water in the state are surface and ground water. The state s water resources 1 are estimated to be billion cubic meters (BCM), out of which about BCM (56%) are currently being utilized for drinking, agriculture, industry and power generation. The 1 Source: Mission Support Unit, Water Conservation Mission AP Water Vision 23

24 availability of per capita annual water resources is around 1,400 cu.mts and utilization is about 800 cu.mts. Due to various reasons like presence of minerals, variation of ground water levels, pollution etc. the available water in some places is contaminated with fluoride, salinity, iron, arsenic etc. At present, about 72 % of rural water supply schemes are based on ground water as source and 28% are covered with surface sources Surface water Availability of surface water: The state has three major rivers, the Godavari, Krishna and Pennar and 37 smaller rivers. Krishna and Godavari account for almost 90% of the state s surface water resources. The total surface water of entire river systems across the state is estimated at BCM. Apart from the rainfall received, surface inflows into the state are through inter-state rivers. Usage of surface water: Of the total available surface water estimated to be BCM, BCM is utilized. The river waters are extensively utilized for irrigation, industry, aquaculture and drinking purposes. The water resources of Krishna and Pennar have been completely utilized. Where ground water is not sustainable, surface water is treated and used for drinking purposes. Surface water is the source of supply in around 90% of MVS. Quality of surface water: Like in many other states of the country, in AP also increased population, industrialization, agriculture intensification and other activities like aquaculture have contributed to increased waste discharge into surface water bodies especially into rivers. Surface water i.e. water in rivers, streams and tanks, has been contaminated with sewage and other solid wastes from urban and rural habitations and industrial pollution. In most of the places, where surface water is used for drinking purposes, appropriate treatment plants are provided Ground water Availability of ground water: Net annual ground water availability in the state is 33 BCM. The availability of ground water level varies significantly from district to district. In many parts of the state, in summer by May and June every year, most of the irrigation wells and drinking water wells run dry, due to significant depletion of ground water levels. Ground water levels measured during winter (January) and summers (May) show depletion of ground water during summer with some regions like Rayalseema having very high depletions (graph on next page). Exhibit 4: Depletion of ground water level: pre-monsoon to post monsoon Ground water depletion between pre & post monsoon Averagedepthof water level (mbgl) Coastal Rayalaseema Telangana Andhra Pradesh Depletion of ground water in these regions seriously affects sustainability of drinking water sources, especially during summer. Quality of Ground Water: Quality of ground water is also a problem in many parts of the state. Ground water in some parts is affected with excessive concentration of fluorides, Total Dissolved Solids (TDS) and nitrates and the Source: State Ground Water Department, 2008 Over exploitation of ground water - AP As per Central Ground Water report, in AP, 4190 habitations in 212 mandals are over-exploited 77 are at critical stage 175 are at semi-critical stage concentration is increasing due to over extraction of ground water and scanty rainfall. About 1,064 habitations are fluoride affected. In the past, many water supply schemes have failed due to depletion of ground water and due to contamination of ground water through fluoride and salinity. 24

25 As per the RWSSD seasonal bore well status report, 3298 (cumulative number) bore wells have dried up due to depletion of ground water level. Hence, relying on ground water in the long run without appropriate ground water recharge is not advisable. District-wise water resource maps: RWSSD and State Ground Water Department have prepared district-wise water quality and water table maps. RWSSD has prepared base maps based on GIS for all districts. Separate maps are also prepared for water quality and scarcity areas. State Ground Water Department monitors the ground water table using their own observation wells and from the data sent by RWSSD from their sources / monitoring wells. The monitoring also covers the quality of surface water sources. RWSSD is planning to set up facilities to develop an MIS for maintaining a database on water quality. Water harvesting structures for ground water recharge: The RWSSD and State Ground Water Department have identified appropriate watershed structures for construction in various districts in the over-exploited mandals. These are normally point recharge structures. 25

26 3 Rural Water Supply & Sanitation Sector Status 3.1 Coverage and access of water supply Although AP is known as a river state, the recurring drought and expanding demand have resulted in a disturbing water scenario. About 40 percent of rural households have access to piped water schemes to meet drinking and domestic water needs. Others use water from bore wells or open wells, while a small minority uses village tanks and springs. There is a high dependence on groundwater for drinking and other domestic purposes. In most villages, water is distributed through Public Stand Posts (PSPs) and some villages having house connections in a limited way. Most rural households (about 90 percent) collect water from stand-posts and hand-pumps, thus spending a substantial amount of time and effort in water collection in rural AP. At present, about 72 % of water supply schemes are based on ground water as source and 28% are based on surface water sources. About 1,498 habitations do not have any safe source while 1,064 habitations are fluoride affected. Apart from providing treated surface water to fluoride affected habitations, the RWSSD has tried various options for de-fluoridation, including treated water through Reverse Osmosis Plants. The RWSSD has launched various schemes from time to time for providing drinking water supply to the rural population, with the aim of covering all rural habitations with water supply schemes Water Supply- Coverage of Habitations Out of the 72,072 habitations in the state, 33,208 are Fully Covered (FC) 2, 37,366 are Partially Covered (PC), 560 habitations are Not Covered (NC) and 938 habitations have No Safe Source (NSS) of water supply for drinking purpose. The current status of habitation coverage is presented in the graph below. Exhibit 5: Habitation coverage through rural water supply (2008) Source: RWSSD, April 2009 Currently, the method of ascertaining access to water supply and sanitation services, based on traditional habitation survey, does not provide information on the actual coverage of households with safe drinking water. Though schemes are constructed every year, the FC habitations slip to PC category and PC habitations slip to NC category due to source failure and increase in population. 2 FC/PC/NC (Fully/ partially/not Covered) are as defined by standard GoI definitions. 26

27 3.1.2 Water Supply- Scheme coverage Usually, if a village has a sustainable source of water supply, the SVS is the most preferred option, taking into consideration the ease of implementation, lower technology intensiveness and lower capital and O&M cost involved, as compared to MVS. Most SVS depend on ground water as the source of water supply. In case the ground water suffers from quality and/or quantity problems, the MVS (mostly dependent on surface water as source) is considered by the RWSSD as a preferred option for safe and sustainable water supply. In terms of habitations coverage, out of total 72,072 habitations, 41,046 habitations are covered through SVS and 10,176 habitations through MVS. Often the houses of the poor and deprived sections of society are in the fringes of the habitation and get excluded from accessing water by being at the tail end of the scheme. Participation of the poor and deprived sections in planning and implementation of the schemes does not happen and hence their exclusion leads to inequity of benefits from the water supply schemes in the villages. In some villages the water supplied may not be potable. Other quantity related observations are: Yield is less than demand, especially during the summer months due to depletion of groundwater. Where bore wells are fitted with power pumps, the pumps are operated beyond the safe yield of the bore well. Demand is more than supply in majority of the habitations. Unequal distribution of water. In some schemes, some villages / habitations get less water due to being located on elevated areas. 3.2 Sources of drinking water Of the 40 percent of rural households who have access to piped water supply schemes, only 10 percent have these sources within their premises. Others use water from bore wells or open wells, while some households using village tanks and springs. There is a high dependence on groundwater for drinking and other domestic purposes, even though the depletion of ground water level during summer creates problem. Breakup of sources for drinking water is presented in the graph below. Exhibit 6: Sources of drinking water supply Sources of drinking water in rural areas Percentage 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 31% 20% 6% Tap Handpump Well Tubewell Tank/ pond/ lake 1% 1% 1% River/ Canal Spring Source: Census of India, 2001 Majority of the households served by the water supply scheme collect water from stand posts. There are hardly any house connections in habitations served by the MVS and in most of the SVS. About 1,950,000 house connections (18% households) are provided in the state. The reason for lesser house connections seems to be the apprehension that service level of 40 lpcd will not facilitate house connections. However, in case of SRP schemes where service level is 40 lpcd, about 80% of households have house connections. At present, there is considerable wastage of water since there are no taps to the house connections or the public stand posts. 27

28 3.3 Quality of water Water quality is a problem in many parts of the state. Coastal salinity and fluoride are the most common quality problems for groundwater. Seawater intrusion has occurred in coastal regions and aquaculture is also affecting coastal zone aquifers since village tanks are located in sandy areas. Fluoride affects interior semi-arid areas, especially Nalgonda, Anantapur, Cuddapah, Guntur, Nellore, Chittoor, Prakasam and Krishna districts. In all, around 16 districts are fluoride affected. Another quality problem- coastal salinity - largely affects villages in the coastal districts of East Godavari, West Godavari, Krishna, Guntur and Prakasam districts. AP is not alone in quality problems relating to fluoride (see chart for states affected by fluoride) but extent of problem in AP is quite significant. Exhibit 7: States affected by fluoride No of districts affected by fluoride Maharashtra Tamil Nadu Madhya Pradesh Karnataka Andhra Pradesh Orissa No of Districts Source: Central Ground Water Department The other water quality related issues are: Disinfection facilities are not provided in most habitations. Even where a facility is available, disinfection is not carried out on a regular basis. Sources are generally not protected to avoid depletion of groundwater. Disinfection facilities are provided only in MVS. Disinfection units are not installed in several SVS. 3.4 Rural Sanitation Overall current status of rural sanitation The present level of sanitation coverage in the state is about 60%, while the rural household coverage is 63% (and half of the rural households with latrines are using them regularly). This implies that still more than 70% of rural population resort to open defecation with its associated risks relating to public health and also to water supply sources. Open defecation constitutes a major source of pollution of surface and ground waters in addition to soil contamination. This problem is more acute in densely populated settlements, especially in coastal areas. Poor environmental sanitation conditions and lack of adequate supply of safe water are factors responsible for high incidence of water-borne and water-related diseases among the rural population in AP. In addition to the in-sanitary disposal of human waste, the sanitation situation in rural areas becomes more acute due to: Wastewater generated by households, including cattle sheds, flows into open surface drains that often get choked, leading to stagnation of wastewater in the lanes and by-lanes. Facilities for safe disposal of enormous amounts of animal and agriculture solid waste are absent. Construction of dry-pits to discharge sullage is done without any consideration to sanitary aspects of the pits. 28

29 Discharge of septic tank effluents into open drains creates in-sanitary conditions. Lack of proper sanitation facilities for disposal of various wastes results in the following: Wastewater seepage into shallow aquifers which are sources of water for hand-pumps, open dug wells, percolation wells. Contamination of village ponds by wastewater and dumping of other wastes on its periphery. Presence of stagnant water in open drains and open areas. This is a breeding ground for mosquitoes and other harmful organisms, which lead to water and sanitation-related diseases. Total Sanitation Campaign (TSC): The RWSSD has implemented various schemes for rural sanitation including Government of India sponsored schemes since 2003 and has taken all efforts to reach the target of a 100% sanitized state by 2012 in all the districts. After launching of the TSC, the coverage of household sanitation has increased to about 60% in the state. Under the NGP scheme, about 753 GPs have received awards. In addition to the financial support of Rs 900 from GoI under the TSC, the GoAP is providing additional support to the BPL families at Rs 1,850 per household toilet. The GoAP has integrated the component of household toilets with the ongoing Indiramma housing scheme wherein 80 lakh rural houses are targeted to be completed. The GoAP is providing funds for solid and liquid waste management (environmental sanitation facilities) under the Twelfth Finance Commission (TFC) and Total Sanitation Campaign (TSC) programs. The GoAP has launched an annual competition amongst GPs, to reward the cleanest GPs, MPs and ZPs with Shubram awards, which include cash incentives. GoAP with technical assistance from WSP-SA and UNICEF has been taking various capacity building activities in the provision of sanitation services. TSC emphasizes Information, Education and Communication (IEC), Human Resource Development (HRD) and Capacity Development activities to increase awareness and demand generation for sanitary facilities Sanitation coverage In AP as in many other states, sanitation at the household or habitation level has been managed as a latrine construction program in an ad-hoc target driven manner, characteristically constrained by funds. Budget limitations of local bodies have resulted in piece-meal drains in habitations, taken up under annual budgets. This has meant that there are no systematic improvements to environmental sanitation or hygiene and there is little ownership or incentive to upgrade and maintain these locally. Coverage with household toilets: The current status of coverage of household with toilets for both people Above Poverty Line (APL) and Below Poverty Line (BPL) has been presented in the exhibit below. Exhibit 8: Coverage with household toilets (July 2009) Source: Ministry of Rural Development, DDWS 29

30 Exhibit 9: Status of environmental sanitation HH members without household toilets defecates (%) Andhra Rayalseema Telangana Average Public Latrine Fields (open defecation) Total Source: Baseline survey Coverage of environmental sanitation: Wastewater generated by households including cattle sheds flows into open surface drains. Currently, only 6.3% of rural household are connected to the closed drainage system. The connectivity for waste water disposal for rural households has been presented in the graph below. Exhibit 10: Coverage of drainage Type of drainage connectivity for waste water outlet Closed drainage 6% No drainage 59% Open drainage 35% Source: Baseline survey The RWSS sector does not cover provision of environmental sanitation facilities like drainage systems which are constructed by PRIs. 3.5 RWSS Sector Institutions RWSSD The RWSSD is the nodal agency for rural water supply & sanitation in the state of AP. It is responsible for planning, design and construction of SVS and MVS and O&M of MVS. The department has been receiving budget sanctions based on works to be taken up and estimated O&M activities. The department has deployed their staff at state, district, mandal and village level. Extensive network and experience of RWSS staff in rural water supply is an advantage for the sector. The roles and responsibilities of key officials involved in the rural water supply at various levels are highlighted below. State level: At the State Government level, the Secretary, RWSSD is the head of the institution. Apart from policy making function, he has the overall responsibility for the performance of the sector. The Engineer-in-Chief (E-in-C), RWSSD and the Chief Engineers (CE) are the key personnel at the state level responsible for implementation of program in the RWSS sector. District level: The Superintending Engineers (SEs) and Executive Engineers (EEs) are responsible for implementation of the sector programs at the district level. The officials at the district level play an important role in monitoring and evaluation, besides executing the projects. Mandal & GP level: The Deputy Executive Engineers (DEEs) are in charge of all RWSS activities with 1 DEE for 2-3 Mandals. The DEEs are assisted in their activities by Assistant Executive Engineers (AEEs) / Assistant Engineers (AEs) who are in charge of RWSS works for the entire mandal allocated to them. 30

31 3.5.2 Strengths and weaknesses of RWSSD Key strengths Creation of an extensive network of rural water supply infrastructure through SVS & MVS has given the department a thorough understanding of the field situation and a good database of the field situation has been created. Competent and experienced technical human resource pool has been built up over the years in the department, thus making it easier for efficient asset creation. A well laid out organizational structure reaching up to the village & scheme level, thus making expertise available where it is required. High standards of construction quality and good design standards. Key weaknesses Slow coverage with only 46% habitations being fully covered by rural water supply schemes and NSS habitations yet to be covered. Rural household sanitation coverage is 63% with low level of services. Low percentage of house service connections (about 18% households) is likely to affect financial sustainability of existing schemes. Lack of proper disinfection facilities in the existing schemes affects the safety of drinking water. Centralized decision making in approval and sanction of schemes has led to delays with long implementation periods. A top-down (supply driven) implementation process has resulted in non-involvement of the communities in planning and operations. This has led to a lack of ownership by the community, which in turn has implications on financial sustainability and quality of asset maintenance. The RWSSD manpower details are given in Annexure PRI Institutions The 73rd Constitutional Amendment and the consequent Andhra Pradesh Panchayati Raj Act, 1994, assigns local bodies the responsibility of providing safe drinking water supply and sanitation. Under the AP Panchayati Raj Act, O&M of water supply installations is the responsibility of Gram Panchayats. The Act also empowers Gram Panchayats to collect house tax from its constituents. In reality, most Gram Panchayats have financial and administrative constraints in taking over the responsibility of O&M. Involvement of higher level PRIs such as MPs and ZPs in the overall functioning of the RWSS activities has been very nominal so far. Only in certain reform oriented WSS programs such as Swajaldhara and TSC other PRIs at higher levels (ZPs and MPs) have a role as members of SWSM and DWSMs Overall existing institutional structure For all RWSS activities other than Swajaldhara and TSC, the institutional arrangement is as described in the earlier sections with RWSSD playing a dominant role. For Swajaldhara and TSC, the institutional arrangement is as per GoI guidelines with a state level SWSM for overall governance and policy, supported by district level DWSMs and DWSCs. Under these reform oriented programs, the operations are carried out by the PRIs with assistance from the RWSSD. The existing institutional structure for service delivery of all programs of rural water supply & sanitation at the state, district, mandal and village level is presented below. Exhibit 11: Existing institutional structure 31

32 In the context of the current situation, a number of initiatives have been taken by the GoAP to improve the rural water supply service delivery. Some of the important policy initiatives are highlighted below Recent institutional initiatives taken by GoAP Devolution to ZPs and GPs: In view of the importance being accorded to the PRIs at the district and village levels, the GoAP has devolved certain RWSS sector responsibilities to lower levels in the governance structure. The O&M of MVS are now under the control of the ZPs. Similarly, the responsibility of O&M of SVS has been devolved to the GPs. The current policy environment is poised to continue facilitation of such devolution and provide necessary inputs for augmenting technical and organizational capacities of the ZPs and GPs to successfully discharge their responsibilities. Demand driven participation and decentralization: In a move to introduce the concept of demand-driven participation and decentralization in the RWSS sector, the GoI and GoAP jointly introduced the SRP in The motive of the SRP was to institutionalize communitybased rural drinking water supply with assistance from PRIs and local communities and equip 32

33 them to plan, implement, use, maintain and repair water supply schemes themselves. The SRP was scaled up and launched as Swajaldhara in December Swajaldhara scheme have been implemented in the AP state from 2002 onwards. Formation of WSMs: The WSMs were created to support reform programs like Swajaldhara and TSC. Significant efforts have been channeled by the SWSM through DWSCs towards developing IEC and capacity building programs. These IEC and capacity building programs are aimed at augmenting awareness and capacity of end users and their representative institutions to adopt a demand-driven approach in the sector Key issues under existing arrangements Some of the key institutional issues which need to be addressed in the proposed institutional structure to achieve enhanced service and performance are highlighted below Conflicting role of governance and execution Governance, policy making and execution roles have converged at present into the RWSSD. There is need for separation of roles and responsibilities pertaining to governance and execution so as to achieve higher levels of accountability Role shift of RWSSD - from provider to facilitator At present, the role of the RWSS sector is that of a provider of RWSS assets. In view of decentralization and devolution of roles and responsibilities pertaining to planning, implementation and O&M of water supply related assets to ZPs and GPs, the RWSSD role should gradually transform into that of a facilitator and that of technical support provision to the ZPs and GPs. RWSSD and its personnel need to be geared up for this transformation Linkages with GoI, Swajaldhara Reform Program The current institutional structure of the RWSSD does not fully subscribe to the principles of the demand driven approach that the state is contemplating to scale up. Structural changes to the RWSSD need to be undertaken so as to ensure that operational linkages between the RWSSD and the PRIs at the state, district, mandal and village levels - are strengthened in order to assist in scaling up and sustaining demand driven approaches in the RWSS sector in the state Centralized decision-making in approval and sanction of schemes The current system of administrative sanction and technical sanction results in long process time and delays in execution. More and more functions and decisions need decentralization. The current procedural bottlenecks and delays in drawing up schemes, sanctioning of schemes, funds flow and procurement methods are delaying schemes beyond reasonable limits Limited involvement of community Limited involvement of the community in planning, implementation and O&M of RWSS facilities needs to be addressed. Significant IEC efforts need to be effectively channeled to improve community participation Centralized fund flow The fund-flow structure of the RWSSD shows limited decentralization in case of capital works. The transfer of funds by the TFC to the ZP and GP for O&M of MVS and SVS are positive trends that indicate devolution of responsibilities to the lower levels in government. However, the RWSS sector should move towards adopting a more decentralized fund flow structure similar to reform programs like Swajaldhara and TSC. Capacities of personnel at the district, mandal and village levels need to be significantly augmented to promote such devolution of responsibilities. 33

34 Awareness and capacity building There is hardly any technical capacity in the community and in PRIs to effectively take over and manage the RWSS services, due partly to the lack of any role for these agencies historically. The plans of GoAP to scale up demand-driven approaches in the state would require to be supported by substantial IEC activities at the village level to promote awareness and build capacities of people to inculcate a sense of ownership and to enable their effective participation in planning, design, implementation, monitoring & evaluation, financial management and O&M of the RWSS facilities Justification for the Project As a conscious effort to enhance the quality of service in the RWSS sector, the GoAP has taken a number of policy steps, including transferring of the constructed water supply facilities to the PRIs for O&M. The GoAP has approached the World Bank, through GoI, to extend financial support for not just infrastructure creation but more importantly for investments into reform components such as institutional development, capacity building, communications, monitoring and evaluation, etc. Thus a World Bank supported Andhra Pradesh Rural Water & Sanitation Sector Project has been conceived which encompasses all these important components and is expected to cover 6 Districts of the State. GoI, Swajaldhara Reform Program will be adopted to enhance service delivery focusing on Adoption of reform principles of devolution and demand responsive approach in the 6 Districts taken up under the Project. Strengthening of RWSSD and PRIs for performing their changed roles in a better and co-ordinated manner The details of the APRWSSP are indicated in the subsequent chapters. 34

35 Section II- THE AP RURAL WATER SUPPLY & SANITATION PROJECT 35

36 4 AP Rural Water Supply and Sanitation Project 4.1 GoAP RWSS Vision & Strategy GoAP envisions a decentralized and demand-driven approach for the RWSS sector, for which policy notes were issued by the GoAP in October The key elements of the GoAP RWSS vision are: (i) Significant improvement in RWSS service levels and coverage; (ii) Devolution to the PRIs; (iii) Enforcement of O&M cost recovery and sharing of capital cost, taking into consideration affordability, particularly of the disadvantaged groups; and (iv) Improvement of the "accountability framework" by clarifying roles and responsibilities of various actors of the RWSS sector at the state, district and village levels. A significant initiative of the GoAP RWSS vision is the evolution of the role of the erstwhile PRED (now RWSSD) into that of a facilitator and provider of technical assistance to the PRIs. The GoAP has proposed APRWSSP which forms part of its medium term RWSS sector program. The Project will support RWSS programs in six selected Districts in AP. It serves as an action plan for channelling resources for integrated rural water supply and sanitation development in the six Districts. The selected districts will sign a Memorandum of Understanding (MoU) with the RWSSD for adopting a common RWSS program across the district, including consistent safeguards (environment and social) and financial management systems. The Project is expected to directly benefit at least 2.1 million rural populations, with improvements in sanitation and hygiene practices in about 30% of the rural villages. 4.2 Guiding principles and design features of the APRWSS Project The selected six districts commit upfront and adopt the following key principles. Progressive decentralization and devolution District level Planning Community participation and demand responsiveness Enhanced accountability Enhanced Financial Sustainability, and Integrating Water Supply and Sanitation for Improved and Sustainable Benefits. Progressive Decentralization and Devolution APRWSSP is a combination of significant institutional changes, substantially enhanced investments and shifts in policies and procedures, which together will achieve the goal of improved service delivery. Decentralization and devolution is achieved through institutional changes and policy changes wherein PRIs are empowered to participate in the Project design and implementation. The participating districts will scale up the policies and institutional arrangements based on Swajaldhara principles. The District Water and Sanitation Mission (DWSM) established under the Zilla Parishad (ZP-district PRI) will be responsible for the district RWSS program and policy, with the District Water and Sanitation Committee (DWSC) as its executive arm for implementing the program. DWSC will decide the works to be carried out at the district level (package of cost-effective GP programs). In case RWSSD Engineers are not available or do not have the capacity, the DWSC could hire private Technical 36

37 Service Provider (TSP). In either case, the engineers will be accountable to DWSC and the concerned GP through a service contract agreement. The DWSC, under the District Collector will be responsible for implementing the district program and policies. The DWSC will take into consideration the district demand and priorities, technical feasibility and sustainability requirements. Planning and prioritization of water supply schemes will be based on demand for SVS from GPs (bottom-up) and reconciled with proposals identified by the DWSC for MVSs (top-down). Sanitation programs will be specially designed, taking into consideration the need for IEC and hygiene promotion activities. Capacity will be built with the DWSC for implementing the district program. The project supports community participation at all stages of the scheme cycle, with the GP-WSC ensuring representation from the participating habitations. The existing Self Help Groups, which are powerful and well-established women groups under various on-going programs in AP, will help the GP-WSC in reaching out to the communities. Enhanced accountability Accountability will be enhanced through a clear separation of Governance and Operational Aspects. At the state level, the SWSM will be responsible for overall RWSS policy formulation and budget allocation. At the district level, the DWSM will be responsible for the RWSS program and policies, with DWSC as the executing arm for implementing the RWSS activities. The RWSSD Divisions will enter into a service contract agreement with the DWSC. For SVS, the GP- WSC will endorse and sign off the design of the scheme and payments made during implementation of schemes. The GP-WSC will be responsible for O&M of the scheme. For MVS, the MVS-WSC will endorse and sign-off the design of the scheme and payments made during implementation of schemes. The MVS-WSC will be responsible for the O&M of the MVS common facilities. The O&M service performance criteria will be agreed and monitored for all schemes. The use of robust and transparent procurement and financial processes along with technical and social audits will enhance accountability. The RWSSD Divisions will be responsible for the technical quality of the district sub-projects. The State level PSU will carry out the independent Construction Quality checks and beneficiary assessments. The grievance redressal measures will be provided at the State, District and GP level. Detailed M&E system will capture inputs, outputs and outcomes with disclosure of all reports on the RWSSD web site. Enhanced Financial Sustainability: The participating districts will adopt district-wide policies on capital cost contributions and O&M cost recovery based on agreed affordability criteria. The capital cost contributions will be applicable to all new schemes, while O&M cost recovery will be applicable for all schemes (existing and new). The following are the guiding principles: Contributions to Capital Cost: The GP will contribute towards the cost of all new investments (amount not to exceed 10% of capital cost or Rs 500 per household, whichever is lower), through funds raised from beneficiary households. The community contribution for the Scheduled Caste (SC) / Scheduled Tribe (ST)/ BPL households will be on a concessional basis (amount not to exceed 5% of capital cost or Rs 250 per household, whichever is lower). The above contributions may be in cash or labour, as decided by the GPs. Contributions to O&M Cost: The O&M cost for all investments (SVS and MVS) will be fully recovered through user charges, subject to an affordability ceiling. The O&M charges for all new schemes will be fixed prior to the commencement of the scheme. For MVS, the DWSC will decide the bulk water charges prior to approval of the MVS. In case of high cost schemes, the amount exceeding household affordability level (Rs 45 per month) will be subsidized by the GP for SVS and DWSC for MVS. Integrating Water Supply and Sanitation for Improved and Sustainable Benefits The water supply investments will be made in an integrated manner with source strengthening and catchment area protection activities, sanitation programs to provide incentives for construction and use of individual household latrines, safe disposal of waste-water, solid waste 37

38 management, and community health and hygiene awareness programs. The sustainability of water and sanitation systems will be strengthened through improved design, construction and O&M practices. 4.3 Five years goals The scope and outputs of physical activities during the Project period is summarized in the following points: 2,235 (NC / NSS / PC) habitations will be provided with water supply through SVS. 400 (NC / NSS / PC) habitations will be served with water supply through MVS. 600 SVS will be augmented or rehabilitated 1,250 rain water harvesting structures will be built. 30 habitations will be provided with innovative technology. 2,235 ground water sources will be recharged. Individual Sanitary Latrines (ISLs) in 105,400 BPL households will be built. 45 selected major GPs will be endowed with pavements, drains and Solid and Liquid Waste Management (SLWM). Soak pits will be dug in households in all the 2,635 habitations. 10 mandal head quarters will have UGD. In addition, activities in soft areas will be taken up. These activities include, but are not limited to, the following: IEC to all stakeholders Capacity building of Sector Institutions, PRIs and users Project implementation and M &E support to Sector Institutions and PRIs Resource requirements and financial flows are projected to meet requirements for implementing. 4.4 APRWSSP Key Components The project comprises of the following three main components: (A) Capacity and Sector Development; (B) Infrastructure Development; and (C) Project Implementation Support Component A: Sector development Rs crore (US$12m) This component will provide institutional capacity support to implement, manage and sustain the project activities, along with sector development studies. The main sub-components include: (a) Capacity Building and Training activities for state level institutions, PRIs and sector stakeholders; (b) Communications Strategy and Information, Education and Communications (IEC) Program; (c) Sector Development Studies to inform policy decisions Component B: Infrastructure development - Rs crore (US$153.5m) This component will support investments for improving water supply and sanitation services in the project habitations, including construction of new infrastructure or rehabilitation and augmentation of existing schemes with safe disposal of waste-water. These investments would be made in an integrated manner with source strengthening and catchment area protection activities; soak-pits; construction of latrines for BPL households; community awareness programs for improving sanitation and hygiene practices; and incentives for achieving open defecation free status. Solid waste management and surface drainage activities will be taken up in major GPs. Underground piped drainage will be supported in select Mandal Headquarters. About 80% habitations are expected to be served by SVS using local groundwater sources. The MVSs, mainly relying on 3 The PIP will be periodically reviewed and modifications (if any) will be proposed by the GoAP for review and approval by the Bank task-team. 38

39 surface water sources, will be taken up for habitations where the local source is either not sustainable or of not acceptable quality Component C: Project Implementation Support Rs crore (US$14.5m) A Program Support Unit (PSU) under the SWSM, assisted by staff in the districts (D-PSUs), will implement and manage the WB Project. Main functions of the PSU will be to coordinate with various stakeholders including the SWSM, DWSM, DWSC; procure external services (as required) to support the implementation of the WB Project; and review and report the progress of the WB Project. This component includes establishing and operationalizing the following systems: (i) Sector Information System (SIS) and Monitoring and Evaluation System (M&E) for the Sector Program and WB Project; and (ii) financial management system for administering funds and expenses for the WB Project. 4.5 Physical outputs from the Project Details of the targeted physical outputs under the APRWSSP are given below Sector development For capacity building to stakeholders, 12 training modules (85 programs) at state level, 19 training modules (599 programs) at district level and 16 training modules (39,925 programs) at village level are proposed at governance and operation levels. Along with building capacity by training stakeholders at various levels, IEC activities will be taken up in the Project Districts. SO/ SHG will be hired in each of the six Districts to assist the department in the IEC activities. Under the project, annual awards to the best performing 10 GPs in each district per year will be given, using a score card method for combined water supply and sanitation service delivery improvements that are endorsed by the beneficiary communities. The award money shall be utilized to improve internal roads, drainage, street lighting etc, for community purposes as prioritized by the Gram Sabha Infrastructure development The year-wise targeted physical outputs for construction of water supply facilities are captured in the table below Construction of water supply facilities Exhibit 12: Physical outputs for construction of water supply facilities Habitations Total SVS (PC to FC) SVS (NC to FC) ,125 SVS (NSS to FC) Total under SVS MVS (PC to FC) MVS (NC to FC) MVS (NSS to FC) Total under MVS Grand Total Rain water harvesting structures Construction of schemes with Innovative technologies

40 Rehabilitation and augmentation of existing water supply schemes The year-wise targeted physical outputs for improvement of existing water supply schemes are captured in the table below. Exhibit 13: Physical outputs for rehabilitating and augmenting existing water supply schemes Improvements to existing Unit schemes Total Augmentation and SVS rehabilitation of existing SVS Improving ground water Habitati sources on Sanitation and hygiene promotion The year-wise targeted physical outputs for construction of sanitation facilities are captured in the table below. Exhibit 14: Physical outputs for construction of sanitation facilities Sanitation facilities to be constructed Total ISL for BPL 13,200 20,000 21,800 23,400 27, ,400 Exhibit 15: Physical outputs for construction of environmental sanitation facilities Environmental sanitation facilities Total Pavements, drains and SLWM in major GPs Soak pits in habitations to be provided with water supply ,635 UGD and SLWM in mandal HQs GPs to be awarded for good performance in sanitation sector to promote hygiene Project Implementation Support A Project Support Unit (PSU) will be constituted at the state level to manage the Project, by coordinating with stakeholders at various levels and facilitating in planning and implementation of the Project. A D-PSU will be constituted in each selected District to support DWSC in the District and the PSU at the state level. The cost components included under Project Management are discussed in Annexure Sub-component C1: Staffing & consultancy for PSU and D-PSU The PSU and D-PSU staff will be recruited from the RWSSD, supplemented with officers on deputation from other departments, or recruited on a contract basis from the market (if required). The main functions of the PSU will be o to coordinate with various stakeholders including SWSM and DWSCs, o review and report the progress of the Project. The D-PSUs will be responsible for implementing the Project at the district level. The D-PSU staff in districts will coordinate with the Headquarter PSU staff. Each D-PSU will report administratively to the DWSC and functionally to the Project Director PSU. The composition of the PSU and D-PSU is shown below. 40

41 Exhibit 16:- The staffing requirements at PSU and D-PSU Designation Number of staff required State level Project Director, PSU 1 Deputy Project Director, PSU 1 Procurement specialist 1 Engineering specialist 1 Social expert 1 Environmental expert 1 M&E specialist 1 Financial expert 1 Assistant Project Director 2 Managers technical 6 Accountants 2 Computer operators 2 Office subordinates & drivers 3 Total PSU staff 24 District level (6 districts) Procurement specialist 6 Engineering specialist 6 Social expert 6 Environmental expert 6 M&E specialist 6 Financial expert 6 Assistant Project Director DEE 6 Managers Technical AEE 18 Accountants 12 Computer operators 12 Office subordinates & drivers 12 Total DPSU staff 96 Grand Total (PSU and D-PSU) Sub-component C2: Equipment & Miscellaneous costs The operational costs of the PSU are included under this component including routine establishment expenses like rent and costs of computers, stationery, fuel etc Sub-component C3: M&E This sub-component will support development and establishment of sector MIS for the APRWSSP. MIS would be developed for monitoring of sector status including physical aspects of schemes, service provision, water quality, IDA and other indicators and parameters of all schemes in the state Sub-component C4: Governance and Accountability This component includes cost for independent construction quality surveillance, costs of audits to be carried out by technical auditors, social auditors and financial auditors during the Project period Sub-component C5: Engineering support The Project will go through distinct stages from Pre-Planning, Planning, Implementation to the O&M phase. In the Pre-Planning phase, the community will participate in expressing their felt needs by demanding appropriate water supply schemes. Technical inputs at Pre-planning phase involve identifying a source with community concurrence, identifying a site for overhead reservoir, determining service level and arriving at approximate cost estimates for installation and O&M. The scheme proposals will be discussed in the Gram Sabha, and after consensus the scheme will 41

42 go the next stage of planning wherein the technical inputs would require detailed survey, designing; preparation of drawings, estimates and bid documents, and entrustment of works to the appropriate agencies. In the Implementation phase technical support will be provided for day to day supervision, ensuring quality of construction and materials and regulating the payments and contract management to prevent cost and time overruns. In the O&M phase, technical support will be provided to train the community in the O&M of the scheme, fixing of appropriate tariff and ensuring sustainability of the water supply scheme. RWSSD engineers will provide the required technical support for both SVS and MVS. However the work of Total Station Survey, preparation of AutoCAD drawings and Geo-Technical Investigations may be outsourced. The DWSC will choose a private TSP if RWSSD engineers are not available or do not have the required capacity. Costing of engineering support for the outsourced activities by RWSSD is detailed in Annexure 4. Exhibit 17: Physical targets in terms of habitations to be provided with engineering / community support Year Total Engineering support ,635 Engineering support costs for outsourced activities is provided at Rs. 0.5 lakh per habitation Sub-component C6: Community Support Under this sub-component, community will be mobilized for participation in the various phases of the project. This will be done through appointing community mobilizers / SHGs at the GP levels. This would be linked to the IEC sub component (A2). Exhibit 18: Physical targets in terms of habitations to be provided with engineering / community support Year Total Community support ,635 Community support will be provided to mobilize the community for participating throughout the scheme cycle of Pre-Planning, Planning, Implementation and O&M phases. About Rs. 0.3 lakh will be spent on every habitation to facilitate the mobilization of the community. 4.6 Funding requirements and financing of the Project Financing plan The total project cost of Rs 864 crore will be met by funding from World Bank (Rs 720 crore), GoAP (Rs 123 crore) and Community Contribution (Rs 21 crore). The total cost for APRWSSP is summarized below: Exhibit 19: Component wise outlay for proposed APRWSSP In Rs crore Total % of APRWSSP A. Sector development A1 Capacity building % A2 Program IEC % A3 Sector development studies % A4. District excellence awards % Total - Sector development % B. Infrastructure development B1 New investments a. SVS a1 PC habitations % a2 NC habitations % a3 NSS habitations % b. MVS 42

43 In Rs crore Total % of APRWSSP b1 PC habitations % b2 NC habitations % b3 NSS habitations % c. Rain water harvesting % d. Pilot testing of new innovations/ technologies % Total new investments % B2 Rehabilitation and augmentation a. Rehabilitation and augmentation of SVS % b. Rehabilitation and augmentation of MVS % c. Recharging ground water sources % d. Protecting catchment areas % Total - Rehabilitation and augmentation % B3 Sanitation and hygiene promotion - 0.0% a. ISL in BPL households % b. Solid and Liquid waste management in major GPs % c. Soak pits in habitations to be provided with water supply under % the Project d. Under Ground Drainage and SLWM in mandal headquarters % e. Hygiene promotion % Total Sanitation and hygiene promotion % Total - Infrastructure development % C. Project Management 0.0% C1 Staffing & Consultancy costs of PSU % C2 Equipment and Misc costs % C3 M & E % C4 Governance and accountability costs % C5 Engineering support % C6 Community support % Total - Project Management % APRWSS Project % * Due to rounding off of numbers, rows and columns in tables may not add exactly The assumptions related to unit costs are listed in Annexure 5. 43

44 Section III- IMPLEMENTATION ARRANGEMENTS 44

45 5 Institutional Arrangements for the Project 5.1 Guiding principles for institutional arrangement An analysis of the existing RWSSD operations revealed the need for improving and strengthening the existing service delivery structure. The proposed reforms in the institutional arrangement arise out of need for: 1. devolution to PRIs 2. improving service delivery 3. decentralising decision-making 4. filling capacity building gaps 5. developing partnerships with PRIs 6. separation of governance and execution functions, and 7. improving the planning and implementation efficiency within the RWSSD. 5.2 Proposed institutional arrangement Various options were evaluated based on the key objectives of GoAP for the sector and the guiding principles for reform. The basic criteria used in evaluation were: 1. Service delivery- whether the option results in improved service delivery 2. Decentralization- how closely aligned is the option with state Government policy of implementation of constitutional 73 rd amendment (devolution to PRIs) 3. Accountability- nature and extent of accountability to consumers- whether the option results in enhanced accountability 4. Technology option - whether the option will result in technical innovations 5. Sustainability- whether the option chosen leads to any significant risks associated with sustainability (financial, environmental, technological) 6. Feasibility- practicality of implementation 7. Scalability/ Replicability- whether the option enables scalability and replicability The proposed model is described below: 5.3 Details of the proposed institutional arrangements for District Program The proposed institutional arrangement has been summarized here for the state, district & village levels. The project will support progressive decentralization and devolution to the PRIs, with increased community participation, financial sustainability and enhanced accountability at all the levels Overall structure The overall structure at the state, district and village levels are as follows: At state level-rwssd, SWSM, PSU. The Secretary, RWSSD will have the overall responsibility for implementing the RWSS Project. The SWSM will carry out overall sector policy formulation, planning and review, including the setting-up of the Sector Information System for periodic monitoring of the sector performance. The secretariat of SWSM will be the State Project Support Unit (PSU) assisted by the district units (D- PSUs) for implementing the World Bank Project in select districts. The PSU will be headed by a Project Director of the rank of a Chief Engineer. 45

46 At district level ZP, DWSM, DWSC, D-PSU, RWSSD Division and MVS-WSC. The DWSM will be formed as a sub-committee of the ZP, headed by the ZP Chairperson, and will be responsible for the overall district program and policies, development of annual plan and budget and periodic review of targets and achievements. The DWSC headed by the District Collector will be the executive arm of DWSM. It will carry out all district activities including planning, designing and implementation of the District Program and the Project, ensuring that the decentralization and community participation agenda is implemented. The DWSC will also carry out IEC and capacity building activities and management and monitoring of all sub-projects. Similar to the state level, the District PSU (D-PSU) will be the secretariat to the DWSC. The D-PSU will be headed by the Program Director and staffed with officers from various disciplines. The RWSSD Division, under a service contract, will provide engineering support for schemes to be implemented in the District. The MVS-WSC will be formed as a sub-committee of the ZP. It will consist of representations from GPs covered. It will be responsible for approving all MVS schemes and undertaking O&M of common facilities. It will also endorse the scheme design and sign-off all payments during the design and implementation stage. At village level GP, GPWSC - The GP-WSC, a sub-committee of the GP, under the Chairman, Gram Panchayat, will work with the DWSC for planning, designing and implementing the SVS (including intra-village facilities of MVS) and the village sanitation program. It will be responsible for approving all SVS schemes and undertaking O&M of intra-village facilities of MVS schemes. It will also endorse the scheme design and sign-off all payments during the design and implementation stage. The overall proposed institutional arrangement is presented in the diagram in a summarized fashion and the details at each level (state, district and village) are explained thereafter. 46

47 Exhibit 20: Overall proposed institutional structure for the District Program State level arrangements State Water and Sanitation Mission (SWSM): The SWSM will be responsible for the entire RWSS Sector Program. The Executive Committee of SWSM, headed by Secretary RWSSD will be responsible for planning and policy formulation; capacity building; fund flow; approval of annual plan and budget allocation; review, monitoring and evaluation of the 47

48 Sector and District Programs. It will also be responsible for coordination with various departments of GoAP, GoI and other sector partners wherever necessary. Exhibit 21: State level institutional arrangements Exhibit 22: Composition of SWSM Rank Department Position SWSM Secretary Rural Water Supply Chairman Secretary Rural department Member Secretary Panchayati Raj Member Secretary Education Member Secretary Health Member Secretary Finance Member Secretary Planning Member Secretary Information & Public Relation Member Representative, GoI Department of Drinking Water Supply Member Executive Committee of SWSM Secretary Rural Water Supply Chairman Engineer-in-Chief RWSSD Member Joint Secretary Rural department Ex-officio Member Joint Secretary Panchayati Raj Ex-officio Member Joint Secretary Education Ex-officio Member Joint Secretary Social Welfare Ex-officio Member Joint Secretary Health Ex-officio Member Joint Secretary Finance Ex-officio Member Joint Secretary Planning Ex-officio Member Joint Secretary Information & Public Relation Ex-officio Member Project Director, PSU RWSSD Member Secretary Rural Water Supply & Sanitation department (RWSSD): The RWSSD will work as the facilitator for all aspects of District Programs, including technical support for RWSS activities (as required), capacity building, training programs, etc. RWSSD Engineering Wing will continue to plan and implement the MVSs in participation with ZP, while O&M will be devolved to the ZP. State Project Support Unit (PSU): The State PSU will implement the World Bank Project in the selected districts. It will assist SWSM in monitoring and implementation of policy decisions by the Project partners such as various departments of GoAP, GoI etc. The Project Director (PD), PSU will be of the rank of a CE. The PD-PSU will oversee the implementation of the World Bank supported District Program. In addition, the Project Director, PSU will also be responsible for: (a) Overseeing the implementation of policy decisions by SWSM relating to all aspects including Community participation, Communications and Capacity Building 48

49 (b) Dissemination of policy decisions of SWSM and assisting SWSM in monitoring the implementation of the policy decisions by various Project partners (c) Overseeing the implementation of World Bank funded Projects in 6 selected Districts (d) Monitoring participation of PRIs along with village communities for implementation of IEC programs. (e) Coordination with various departments of GoAP, GoI and other sector partners as appropriate on Project implementation issues. (f) Reporting of Project implementation progress to all authorities concerned, including the World Bank. (g) Appointing state level Independent construction quality surveillance consultants for the project. Composition of PSU The staff required for the PSU will be drawn from RWSSD on deputation as well as employed through contract. The staffing composition of the PSU as per the suggested organizational structure is given below. Exhibit 23: Staffing requirements at PSU Designation Number of staff required State level Project Director, PSU 1 Deputy Project Director, PSU 1 Procurement specialist 1 Engineering specialist 1 Social expert 1 Environmental expert 1 M&E specialist 1 Financial expert 1 Assistant Project Director 2 Managers - technical 6 Accountants 2 Computer operators 2 Office subordinates & drivers 3 Total PSU staff 24 Communication and Capacity Development Units (CCDUs): The Project will liase with the existing CCDU for IEC and capacity building activities District level arrangements District Water and Sanitation Mission (DWSM): The DWSM will be the governing body at the district level and has already been established under the Swajaldhara program. DWSM will be responsible for providing policy guidelines received from the SWSM for the implementation of the district program. DWSM will also be responsible for overseeing implementation of the Sector Program, ensuring that the decentralization and community participation agenda is implemented. The overall functions of DWSMs include overall planning of RWSS in the district, approval of the annual budget related to RWSS, prioritization/selection of GPs to be included in the proposed SVS/MVS and review implementation progress. The DWSM will be assisted by the District Water and Sanitation Committee (DWSC), which will function as its executive arm. The set up of DWSM would be as follows: 49

50 Exhibit 24: Set up of DWSM Set-up of DWSM Zilla Parishad (ZP) Chairperson District Collector Honorable Member of Parliament Honorable MLAs Three members of the ZP nominated by the ZP Chairman by rotation Three Chairmen Mandal Parishads nominated by the ZP Chairman by rotation Superintending Engineer, RWSS District Development Officer District Education Officer District Panchayat Raj Officer District Medical Officer District Social Welfare Officer Divisional Forest Officer Superintending Engineers, Irrigation & Minor Irrigation Position Ex-Officio Chairman Vice-chairman Member Members Members Members Convener Member Member Member Member Member Member Member District Water and Sanitation Committee (DWSC): The DWSC established under Swajaldhara will be headed by the District Collector and will be responsible for implementation of entire District Program in the state. The SE will function as its Member Secretary. The DWSC will facilitate in decision making of all district RWSS activities, including design and implementation of all schemes and sanitation program through concerned GPs, administrative sanctions, capacity building, IEC programs, and management and monitoring of all district projects. The DWSC will also take a decision on the works to be carried out at the district level (if necessary, packaging of GP programs for cost effectiveness) and the requirement of engineers and Self Help Group (SHG) or Support Organizations (SOs). In case the RWSSD Engineers are not available or do not have the capacity, the DWSC could hire the services of private Technical Service Providers. The overall functions of DWSC will be as follows: (a) Overall planning and implementation of the district program including planning, designing and implementation of SVS through participating GPs based on the policy framework given by SWSM/DWSM. (b) Selection of GPs for the Project and review of schemes proposed by GPs (c) Packaging of GPs programs based on their cost effectiveness (d) Prioritization/selection of GPs to be included in the proposed SVS/MVS (e) Selection process for SHGs / SOs for capacity building and IEC (f) Hiring Technical Service Providers (RWSSD / Private) for SVS (g) Administrative sanction for SVS and MVS (h) Authorisation for all payments made under district program (i) Providing guidance & support to the ZP sub-committees (Multi Village Scheme - Water Supply Committees for MVS) (j) Review implementation and progress of schemes (k) Review the service levels achieved in the O & M of completed and ongoing schemes The set up of the DWSC is given below. Exhibit 25: Set up of DWSC Set-up of DWSC Position District Collector Chairman Superintending Engineer, RWSS Convener & Member Secretary Superintending Engineers, District Panchayat Raj Office Member District Education Officer Member District Health Officer Member District Panchayat Raj Officer Member District Social Welfare Officer Member District Information & Public Relations Officer Member 50

51 Set-up of DWSC Position Divisional Forest Officer Member Executive Engineers, Irrigation & Minor Irrigation Member Manager (Rank of DEE, RWSS) Member & Assistant to Member Secretary 3 Representatives from Women s groups Members 3 Representatives from NGOs Members District Project Support Units (D-PSU): The District Collector will be the Program Director who will head the D-PSU. D-PSU will report to the DWSC and will have staff for supporting the implementation of program and policies of DWSM, including technical, financial, communications, capacity building, monitoring and evaluation of programs and social audits. The D-PSUs will coordinate with various departments at the district level. RWSSD Divisions: The RWSSD Divisions (Engineering Wing at the district level including Superintendent Engineer / Executive Engineer) will be responsible for designing and implementing the MVS in partnership with the MVS-WSC. All design, supervision or operational activities will be undertaken through an agreement between the RWSSD, DWSC and MVS-WSC. The MVS-WSC will sign off on all activities related to the MVS. The DWSC can also select the RWSSD Engineering Wing to provide engineering support, through a service contract agreement, for SVS. Zilla Parishad: The ZP through its sub-committee MVS-WSC (one for each MVS) will be responsible for management of common facilities of MVS. Multi Village Scheme - Water Supply Committee (MVS-WSC): The MVS-WSC at the district level will be a representative committee of the group of GPs for a MVS. This will be a subcommittee of the ZP and will work closely with the RWSSD Engineering Wing in planning, designing and implementing the MVS. The responsibilities of MVS-WSC is to ensure community participation and to put forth the requirements of the user (group of GPs) in terms of preferences for technology, site selection, infrastructure requirements such as household connections etc. to the RWSSD for consideration. The roles & responsibilities along-with bye-laws of MVS-WSC are detailed in Annexure 6. The set up of MVS-WSC is presented in the table below. Position Chairman Vice Chairman Members Secretary Member Member Exhibit 26: Composition of MVS-WSC Set up Zilla Parishad President (or his nominee who should be an elected representative to the ZP) ZPTC (of Mandal where source is located) Chairpersons from participating GPs (on rotation basis for one year in alphabetical order - 5 nos.) EE, RWS ZPTC (other Mandal (s)) Representatives of SHG/ Youth Group/ Citizen (1/3rd of the members shall be SC/ ST, 1/3rd of the members shall be women. Minimum number of members 8) Technical Service Providers (Engineering Support): RWSSD will provide technical support to DWSC to carry out planning, designing, procurement and implementation of SVS and MVS. In case of capacity constraints at RWSSD to provide technical support, DWSC will have the option to recruit private TSP. Monitoring of RWSSD or private TSP will be the responsibility of DWSC. In either case, the RWSSD or private TSP will be accountable to the DWSC and the concerned GP through a service contract agreement. The overall district level arrangements are presented in the exhibit below. 51

52 Exhibit 27: District level institutional arrangements Village level arrangements Gram Panchayat (GP): The GP will be actively involved in all stages of the scheme cycle, including pre-planning, planning, design and implementation of SVS and intra-village facilities of the MVS. The GP through the GP-WSC, a sub-committee of GP, will provide endorsements during various stages of the scheme cycle and will sign off the payments made during the scheme implementation stage. Further, the GP will be responsible for tariff fixation, accounts, management, financial audits, M&E, and conflict resolution for the RWSS village level program. It will also provide capacity support to the GP-WSC and will ensure regular O&M and cost recovery through user charges Gram Panchayat Water & Sanitation Committee (GP-WSC): The GP-WSC, a subcommittee constituted by the GP under the AP Panchayati Raj act will work with the DWSC for SVS planning, design and implementation. The GP-WSC will endorse the planning, designing and implementation of the scheme and sign off payments at all stages. The committee will perform a similar role for intra-village facilities of MVS. The GP-WSC will be in charge of O&M of SVS and intra-village facilities of MVS. The tariff fixation and O&M of the SVS and intravillage facilities of MVS will also be the responsibility of GP-WSC. The set up of GP-WSC is presented below. Exhibit 28: Composition of GP-WSC Position For Plain areas For Tribal areas Chairman GP Sarpanch GP Sarpanch Members Elected ward members of participating village Elected ward members of participating villages Secretary GP Secretary GP Secretary Member Representatives of SHG/ Youth Group/ Citizen 1/3rd of the members shall be SC/ ST 1/3rd of the members shall be women Minimum number of members 8 Maximum number of members 12 Representatives of SHG/ Youth Group/ Citizen 50% of the members shall be ST 1/3rd of the members shall be tribal women Minimum number of members 8 Maximum number of members 12 Self Help Group (SHG) / Support Organizations (SOs): The SHGs or SOs / NGOs shall be identified and selected by DWSC based on pre-agreed criteria. They would be responsible for carrying out IEC and capacity building activities based on reform principles and policies issued 52

53 by SWSM and DWSMs. The SHGs or SOs would closely interact with the GPs/ GP-WSCs for executing their responsibilities. They would also obtain guidance from the Social and Community specialists working at the D-PSUs at the district levels. The overall institutional arrangements at village level are presented in the exhibit below. Exhibit 29: Village level arrangements Institutional arrangements for SVS The DWSC will be responsible for planning, designing and implementation of SVS and intravillage facilities of MVS. The DWSC will have the option of taking technical support from the RWSSD or Private Engineers (in case there are capacity constraints with RWSSD). In either case, the technical support provider will be accountable to the DWSC and the concerned GP-WSC through a service contract agreement. The GP-WSC will be actively involved at all stages of the scheme cycle. The GP-WSC will endorse the design of the scheme and sign-off the payments made during the scheme implementation stage. As per policy of GoAP and the Panchayati Raj Act, 1994, the O&M of water supply is the responsibility of the PRIs. The O&M of SVS will be carried out by the GPs through the GP-WSCs. Process and mechanisms for active participation of GP/GP-WSCs: The following processes and mechanisms will be adopted for active involvement of the GP/GP-WSC in all RWSS activities (these could be further improved during project implementation): Pre-Planning Phase Activities At the start of the project, the DWSC through the D-PSU will provide detailed information to all the GPs about the project and invite proposals from the GPs. These proposals will be sent to the DWSC, along with upfront commitment by the GP for adopting key principles of progressive decentralization, community participation, enhanced accountability and financial sustainability. The proposals will be gathered across the district and will be prioritized by the DWSC, using transparent prioritization criteria for NC, NSS villages. The selected GPs will be informed by the D-PSU. The DWSC will select the SO/SHG for assisting the GPs in carrying out the planning phase activities. 53

54 Planning Phase Activities The DWSC will build capacity of the SO/SHG for carrying out the GP level activities. The SO/SHG will be responsible for community mobilization, dissemination of the project principles and making the GPs understand its roles and responsibilities. The SO/SHG will assist the GP in forming the GP-WSC (in case it does not exist). The SO/SHG will assist the GP-WSC and the RWSSD Division/ private engineer in the preparation of the Preliminary Scheme Report (PSR) for water supply and sanitation activities in the village. The GP-WSC will be fully involved in the preparation of the PSR, including site selection, technical design, service levels and community contributions for capital cost and O&M cost of the scheme. Village level sanitation activities will also be part of the PSR. The PSR details will be displayed at prominent public places in the village, including the GP notice-board. The entire village community will be informed about the proposed RWSS activities through tom-tom in the village. The PSR will be discussed at the Gram Sabha with at least seven days prior notice to the community. The Gram Sabha, assisted by the GP-WSC, will take a decision through consensus or majority opinion. The minutes of the Gram Sabha will be recorded. The GP-WSC will inform the decision taken to the D-PSU/DWSC for preparation of detailed project report. The detailed project report (DPR) on the village water supply and sanitation activities will be displayed at prominent public places in the village, including the GP notice-board. The DPR will be discussed by the GP-WSC at the Gram Sabha meeting. After incorporating feed-back from the Gram Sabha, the DPR will be endorsed and signed off by the GP-WSC. The GP-WSC will sign the undertaking (Annexure 7), MoU for SVS (Annexure 11), Joint under taking by GP to participate in the SVS (Annexure 12), Service agreement for O&M of SVS for Single Village Schemes (Annexure 15). GP-WSC will sign joint undertaking for MVS (Annexure 17), service agreement for O&M of intra-village facilities of MVS (Annexure 19). GP-WSC will collect community contribution and deposit in separate bank account opened in the name of the GP-WSC. Implementation Phase The GP-WSC will provide oversight in the implementation of the village level RWSS activities. It will take to the notice of the D-PSU/DWSC any deviations pertaining to specifications/quality for immediate rectification. The GP-WSC will provide information to the Gram Sabha on the progress of the RWSS activities as well as display the expenditures incurred and outputs achieved on the GP notice board and other public places. The GP-WSC will take community feed-back and satisfy itself regarding the quality of work-in-progress on the RWSS activities in the village. The GP-WSC will sign-off the payments to be made during the implementation stages of SVS and intra-village facilities of MVS. After completion of the scheme, the GP-WSC will take over the O&M and oversee the supply of designed quantity and quality water to the community and sanitary facilities provided. The GP-WSC will collect the O&M user charges, as fixed by the GP in the Gram Sabha to maintain the scheme to the desired level. The roles & responsibilities along-with bye-laws of GP-WSC are detailed in Annexure Institutional arrangements for MVS The RWSSD will continue with planning, designing and construction of MVS. The DWSC will set-up the Water and Sanitation Committees for the MVS (MVS-WSCs) comprising Chairpersons of the participating GPs. The MVS-WSC will sign-off of the design of the scheme and payments made during scheme implementation stage. The O&M of the common facilities (bulk water 54

55 supply) for all MVSs will be responsibility of MVS-WSC. The GP-WSC will be responsible for O&M of intra-village facilities of MVS. The RWSSD will carry out O&M of common facilities of MVS through service contract arrangements. Process and mechanisms for active participation of MVS-WSC and GP-WSC: The following processes and mechanisms will be adopted for active involvement of the MVS-WSC and the GP- WSC for the MVS: [These could be further improved during project implementation.] Pre-Planning Phase Activities At the start of the project, the DWSC through the D-PSU will provide detailed information to the GPs about the proposed MVS project and seek the willingness to participate by them along with upfront commitment by the GP for adopting key principles of progressive decentralization, community participation, enhanced accountability and financial sustainability. The DWSC, through RWSSD, will finalise the proposal of MVS. The respective GPs will be informed by the D-PSU about the inclusion of the GP in the MVS-WSC. The DWSC will select the SO/SHG for assisting in carrying out the planning phase activities. Planning Phase Activities The DWSC will build capacity of the SO/SHG for carrying out the GP level activities of the participating GPs in MVS. The SO/SHG will be responsible for community mobilization, dissemination of the project principles and making the GPs understand its roles and responsibilities as part of the MVS-WSC. The SO/SHG will assist the GP in forming the GP-WSCs (in case they do not exist) in participating GPs and Multi Village Scheme Water Supply Committee (MVS-WSC) for MVS. The SO/SHG will assist the GP-WSC, MVS-WSC and the RWSSD Division in the preparation of the Preliminary Scheme Report (PSR) for water supply and sanitation activities in the villages. The MVS-WSC and GP-WSCs will be fully involved in the preparation of the PSR, including site selection, technical design, service levels and community contributions for capital cost and O&M cost of the scheme. Village level sanitation activities will also be part of the PSR. The PSR details will be displayed at prominent public places in the villages, including the GPs notice-boards. The information will be communicated to all the GPs which are included in MVS and also to the communities about the proposed RWSS activities through tom-tom in the villages. The PSR will be discussed at the MVS-WSC with at least seven days prior notice to the committee members. The MVS-WSC will take a decision through consensus or majority opinion. The minutes of the MVS-WSC will be recorded. The MVS-WSC will inform the decision taken to the D-PSU/DWSC/GP-WSCs for preparation of detailed project report. The Abstract details of detailed project report (DPR) for MVS water supply and sanitation activities of GPs will be displayed at prominent public places in the villages, including the GPs notice-boards/zp notice board. The DPR will be discussed by the MVS-WSC at the meeting. After incorporating feed-back from the GP-WSCs, the DPR will be endorsed and signed off by the MVS-WSC. The MVS-WSC will sign the undertaking (Annexure 6), MoU for MVS (Annexure 16), Joint under taking for MVS between GP and MVS-WSC (Annexure 17), Service agreement for O&M of MVS (Common facilities) (Annexure 18), Service agreement for O&M of MVS (Intra village facilities) (Annexure 19). GP-WSCs will collect community contribution and deposit in separate bank accounts opened in the name of the GP-WSCs. Implementation Phase The MVS-WSC/GP-WSCs will provide oversight in the implementation of the MVS. It will take to the notice of the D-PSU/DWSC any deviations pertaining to specifications/quality for immediate rectification. 55

56 The MVS-WSC/GP-WSCs will take community feed-back and satisfy itself regarding the quality of work-in-progress on the MVS. The MVS-WSC will sign-off the payments to be made during the implementation stages of MVS. After completion of the scheme, the MVS-WSC will take over the O&M and oversee the supply of designed quantity and quality water to the community. The MVS-WSC will be responsible for co-ordination between RWSS department and GP-WSCs for O&M of common facilities of MVS and bulk water supply to the participating GPs/ Villages/ Habitations.The GP-WSCs will collect the O&M user charges and transfer the bulk water supply charges to MVS-WSC to maintain the scheme to the desired level. The roles & responsibilities along-with bye-laws of MVS-WSC are detailed in Annexure 6. Exhibit 30: Institutional arrangements for SVS & MVS (Asset creation & O&M) * The intra-village facilities of MVS will however be operated and maintained by GP-WSCs. 56

57 5.3.7 Roles and Responsibilities of various agencies The institutional arrangements discussed above for asset creation and O&M of SVS and MVS is presented in the Table below. Sl.No Exhibit 31: Roles & responsibility matrix Roles and Responsibilities ( P- Primary, S- Secondary) Pre-Planning Phase 1 Project Information Dissemination P S S S 2 Orientation of SWSM, RWSSD, DWSM,DWSC,D- PSU,SO\SHGs P S 3 Orientation of GPs, Elected Representatives P 4 Selection of GPs P 5 Formation of Group of GPs for SO support P 6 Selection of SOs\ SHGs P 7 Selection of SOs for a group of GPs P 8 Signing of Agreements with SO/SHGs P 9 Selection of Agencies for out sourced Engineering Activities P Planning Phase 10 Capacity Building of PSU, D-PSU, RWSS&D, SOs at all levels P P 11 SO/SHG orientation and capacity Building P 12 GP Capacity Building P S 13 GP-WSC formation S P 14 GP-WSC Capacity Building P S S 15 MVS-WSC formation P S S 16 Preparation of Preliminary Scheme Report (PSR) on Water supply and Sanitation P S S S 17 Community Contribution S S S P 18 Preparation of Detailed Scheme Report (DSR) P S S S 19 Sign off for design of SVS S P 20 Sign off for design of MVS S S P 21 Administrative Approval for Implementation Phase Proposal (IPP) P S 22 Land in Possession P S S Implementation Phase Infrastructure Development (SVS / MVS/Schemes using Innovative Technologies/ Rain Water Harvesting/Aug. of SVS/Recharging Ground Water sources/ UGD/ Drains & Solid Liquid Waste Management etc.,) 23 a Technical Sanction S P b Preparation of Bid Document P S c Tender Invitation P S d Evaluation of Tender P S e Approval of Tender P P S f Award and Signing of Agreement P S g Construction Supervision P S S h Check Measurement and Certification of Bills S P i Independent Construction Quality Surveillance (ICQS) P S S j Endorsement of Bills for payment for SVS P SWSM\PSU DWSC RWSSD SO/SHG GP GP-WSC MVS-WSC 57

58 Sl.No Roles and Responsibilities ( P- Primary, S- Secondary) k Endorsement of Bills for payment for MVS P l Bills Payment through PAO S P m Preparation of Completion Plans and Report S P 24 Sanitation facilities by Beneficiaries * a Construction of Individual Sanitary Latrines & Soak Pits S S P b Certification & Release of Payment S S P Post Implementation Phase 25 O&M training for GP, GP-WSC & MVS-WSC S S P 26 Monitoring Evaluation P P 27 Impact Evaluation P P 28 Selection of O&M operators P S S S * Construction of ISLs and Soak Pits shall be done by Individual Beneficiaries. 29 Governance and Accountability a Independent Construction Quality Surveillance (ICQS) P S S b Vigilance and Quality Control P S S c Technical Audit P S S d Social Audit P P S S S e Financial Audit P P S SWSM\PSU DWSC RWSSD SO/SHG GP GP-WSC MVS-WSC Confirmation of Processes and Outputs The DWSC will confirm, on a six monthly basis, the key processes followed under the scheme planning and implementation stages. Processes followed and Outputs Achieved for SVS and MVS Stages Key Processes 1 Scheme Planning and Design Stage completed (as per scheme cycle) 2 Scheme Implementation Stage completed (as per scheme cycle) DWSC confirms: o Baseline data established as per agreed indicators o GP-WSC/MVS-WSC participated at planning and design stages o GP-WSC/MVS-WSC endorsed and signed-off the design of scheme o Initial (agreed) capital cost contributions collected o MOU signed between GP-WSC/MVS-WSC and DWSC o Implementation Phase Plan including Community Action Plan Prepared o SVS/MVS appraised and approved by DWSM DWSC confirms: o System has been built o Satisfactory Independent Implementation Quality Checks carried out o Satisfactory independent technical and social audits carried out o Payments endorsed and signed-off by GP-WSC/MVS-WSC 58

59 6 Implementation Action Plan for the District Program The Project implementation will start on 1 st December 2009 and will be rolled out in the 6 selected Districts of the state. An integrated water supply, sanitation and environmental sanitation approach, along with IEC programs and capacity building will be adopted for each Batch. A detailed batch-wise implementation schedule is given in this chapter. 6.1 Batch wise implementation of Water Supply Schemes A phased implementation in batches is planned for the project over a period of five years with subsequent overlapping batches to be launched every year. Each SVS batch will follow an agreed scheme cycle consisting of distinct phases of pre-planning (2 months), planning (4 months), implementation (6-12 months), and post-implementation (4 months). Similarly, each MVS batch will go through a scheme cycle of 20 to 30 months. Model scheme cycles have been developed in consultation with key stakeholders for both SVS and MVS which are described in the following sections. A detailed batch-wise implementation schedule for water supply scheme is given below. Batch Exhibit 32: Batch wise coverage of Habitations (APRWSSP) Batch planning Single Village Multi Village Schemes Schemes From To No of Habitations No of Habitations No of Schemes Coverage Schemes Coverage Schemes Total Habitations Coverage Batch-1 Dec 09 Nov Batch-2 Dec 10 Nov Batch-3 Dec 11 Nov Batch-4 Dec 12 Nov Total Sanitation & Hygiene Promotion (SHP) Sanitation and hygiene promotion activities will be carried out simultaneously with water supply in an integrated manner. In accordance with TSC guidelines, the Project would focus on creating awareness and demand on health, hygiene, and sanitation at the community level, and on motivating the communities in groups, rather than individual households, to attain Open Defecation Free status. The Project envisages reducing open defecation significantly ensuring that GPs and habitations taken up under the Project are free from open defecation by the end of the Project period. To ensure a planned approach, a Total Sanitation Plan would be prepared by GPs. The sequence of steps to be taken for preparation of Total Sanitation Plan during preplanning, planning, implementation and sustaining improvements are detailed in Annexure 8. The year-wise targeted physical outputs for construction of sanitation facilities are captured in the exhibit below: Exhibit 33: Physical outputs for construction of sanitation facilities Sanitation facilities to be constructed ISL for BPL , , , , ,000 Total 1,05, Environmental Sanitation Open defecation constitutes a major nonpoint source of pollution of surface and ground water. This problem is more acute in densely populated settlements, especially in coastal areas. Poor environmental sanitation conditions and lack of adequate supply of safe water are factors responsible for high incidence of water borne / water related diseases among the rural population. 59

60 Source strengthening and catchment area protection activities will be taken up to ensure sustainability of source. Soak-pits and drainage systems will be taken up for safe disposal of waste-water. Solid waste management will also be supported under the project. The year-wise targeted physical outputs for construction of environmental sanitation facilities are captured in the exhibit below: Environmental sanitation facilities Exhibit 34: Physical outputs for construction of environmental sanitation facilities Soak pits in Pavements, drains UGD and habitations to be and SLWM in SLWM in provided with water major GPs mandal HQs supply GPs to be awarded for good performance in sanitation sector to promote hygiene Total 45 2, Groundwater Management by Communities In addition to integrating source strengthening measures as part of each scheme, the project will include software activities for promoting a better understanding of the groundwater issues, especially the trade-off between agricultural use and drinking water in over-exploited and critical aquifers. A pilot program for select GPs will be taken up to promote self-management of groundwater in the villages. This initiative will link up with the World Bank supported Technical Assistance for Groundwater Management in AP. 6.5 Criteria for Selection of Districts On the basis of historical, social and cultural aspects the State can be classified into three regions - Coastal Andhra, Rayalaseema and Telangana. The tribal dominated hilly areas are spread across 10 districts. Districts proposed for the project have been prioritized on the basis of percentage habitations that are Not Covered (NC), No Safe Source (NSS), Partially Covered (PC) and Scheduled Cast & Scheduled Tribe population. In Coastal Andhra region Prakasam district has been selected since it has the highest population (80%) in the region to be brought to the fully covered category. Vishakhapatnam district has highest number of tribal habitations to be covered to FC category in tribal areas and hence has been selected. In respect of Telangana region, Karimnagar district has the highest percentage of population to be brought to FC category from NC, NSS & PC and hence has been selected. Adilabad district is also selected since it has maximum (62%) tribal habitations under PC category in this region. Mahabubnagar district consists of the maximum critical and overexploited (ground water stressed) mandals in this region and hence has been selected. In Rayalaseema region Kadapa district is selected since it has maximum (77%) percentage of population in the region to be brought to FC category from NC, NSS & PC. The selected districts will enter into a Memorandum of Understanding (MoU) expressing interest to participate in APRWSSP and adopt all principles and rules of project like affordable capital cost contributions and O&M cost recovery with community participation. 6.6 Criteria for Selection of Villages/ Schemes Within the 6 selected Districts, DWSC will be responsible for prioritizing the selection of villages/ schemes. The prioritization criteria is: Priority 1: Quantity and Quality affected areas (NC/NSS): GPs where there is no coverage and GPs affected by Fluoride/Brackishness/Nitrate/ Iron contamination etc. will be given a higher priority over others. 60

61 Priority 2: Lack of sustainable sources of water supply (PC2 and PC3) ( PC2, PC3 and PC4): GPs classified as having schemes with less water supply service levels on sustainable basis will be given priority over other GPs. Other important criteria that are considered to select among GPs with equal ranking will be the extent of scheduled caste/ scheduled tribe / population in the GP. Priority would be given to those GPs which have a higher scheduled caste/ scheduled tribe / population. Selection criteria to be used for the tribal habitations are described in the Tribal Development Plan later in this document. 6.7 Scheme Cycle for SVS DWSC will ensure participation of GPs through GP-WSCs in scheme planning, implementation and O&M. The GP-WSC will also be responsible for collection of user charges for O&M. The engineering support will be provided by RWSSD. Pre-planning, planning, implementation and operations & maintenance (O&M) of SVS would conform to project principles. The participation by the community will also enable sharing of costs and achieving decentralized service delivery. The key activities and the milestones in every phase are described below for SVS: Exhibit 35: Scheme cycle for SVS Sr. Phases Indicative timescale in months A Pre-planning phase 2 B Planning phase 4 C Implementation phase (depending on the type of 6 to 12 technology chosen) D Operations & maintenance phase 4 Total 16 to 22 * *The timescale provided for the above phases are indicative in nature. Factors that could influence timescales are size of the project, awareness and capacity building requirements and time taken for community participation Pre-planning phase (2 months) The key activities undertaken under pre-planning phase shall be: MoU signed between RWSSD & DWSC Inviting application from GPs by DWSC based on agreed criteria Prioritization of GPs by DWSC based on pre-agreed criteria Packaging of the schemes, if necessary, based on their cost effectiveness by DWSC Joint undertaking between GP & DWSC Inviting application from Self Help Group (SHG)/SOs by DWSC based on long list chosen by PSU for providing community support Selection of SHG or SO by DWSC Signing of contract between SHG or SO and DWSC Initial IEC at GP level carried out by SHG or SO Selection of SVS or MVS as appropriate by GP-WSC (with RWSSD assistance) Obtaining willingness of GPs about the scheme facilitated by SHGs/SOs Opening of bank account by GP-WSC Selection of agencies for outsourced engineering activities by DWSC Selection of Technical Service Provider (RWSSD/ Private 4 ) by DWSC 4 Private TSP will be recruited if RWSSD Engineers are not available or do not have the capacity 61

62 6.7.2 Planning Phase (4 months) The key activities undertaken under planning phase shall be: Agreement between DWSC & TSP to carry out the Project Techno-Economic feasibility study by Technical Service Provider Obtaining GPs resolution by DWSC to carry out scheme implementation and O&M Capacity building of GP-WSC members by SHG/SO Mobilization of communities, participatory planning, awareness on hygiene and environmental sanitation by GP-WSC with assistance from SHG/SO. Identifying technology options, site selection, infrastructure requirements by GP-WSC with help of Technical Service Provider. Carrying out preliminary designs, line estimates by DWSC through Technical Service Provider. Preparation of Detailed Project Report (DPR) including (i) physical field survey with total station survey, preparation of computerized village road map, (ii) source selection with geo physical survey, (iii) Geo technical investigation for determining safe bearing capacity of OHSR site, (iv) Preparation of structural designs for OHSR, (v) Preparation of designs of distribution system, and preparation of CAD drawings (vi) Preparation of detailed estimates. Sign off final scheme design of SVS and intra village facilities of MVS Administrative approval by DWSC and Technical sanction by RWSSD Collecting initial community contribution (for SC/ST/BPL Rs.250 per household or 5% of capital cost & for others Rs.500 per household or 10% of capital cost which ever is lower in cash or labour as decided by GPs) by GP-WSC with assistance from SHG/SO Implementation Phase (6-12 months) The key activities undertaken under implementation phase shall be: Preparation of bid documents and Invitation of tenders by DWSC with assistance from Technical Service Provider for construction of scheme Evaluation & selection of contractor by DWSC Signing agreement with contractors by DWSC Construction of water supply scheme by contractor Construction supervision by Technical Service Provider Independent Construction Quality Surveillance by State PSU Sign off the payments to be made during implementation stage of SVS and intra village facilities of MVS Further training for GP-WSCs members by SHG/SO and Technical Service Provider The preparation of Implementation Phase Completion Reports (IPCRs) by DWSC with assistance from SO and Technical Service Provider Preparation of Utilization Certificates by EE, RWSSD Trial run of the scheme Sign off by GP-WSC O&M Phase (4 months) The key activities undertaken under O&M phase shall be: Agreement between GP-WSC, DWSC & Private Operator for O&M Fixation of tariff by GPs Training by construction contractor on O&M to GP-WSC Carrying out of O&M by GP-WSC or through private operator (if necessary) with assistance from SHGs / SOs and Technical Service Provider 62

63 Collection of water charges by GP-WSC Exit of SHGs or SOs from the GP. Exit of Technical Service Provider The summary of Scheme Cycle of SVS and MVS is in Annexure 9. The detailed scheme cycle of a SVS is presented in Annexure 10 A. 6.8 Scheme Cycle for MVS DWSC will ensure participation of GPs through MVS-WSCs in scheme planning, implementation and O&M. The MVS-WSC will also be responsible for collection of user charges for O&M. The engineering support will be provided by RWSSD. Pre-planning, planning, implementation and operations & maintenance (O&M) of MVS would conform to project principles. The participation by the community will also enable sharing of costs and achieving decentralized service delivery. The key activities and the milestones in every phase are described below for MVS: Exhibit 36: Project cycle of new MVS Sr. Phases Indicative timescale in months 1 Pre-planning phase 2 2 Planning phase 4 3 Implementation phase (depending on the type of technology 10 to 20 chosen) 4 Operations & Maintenance Phase 4 Total 20 to 30 * *The timelines indicated in the above table are dependent on the technology of the MVS, the number, extent and coverage of habitations and the quantum of work and investment needed Pre-planning Phase (2 months) Inviting application from GPs by DWSC based on agreed criteria Tripartite agreement signed between RWSSD, DWSC, & MVS-WSC Prioritization of GPs by DWSC based on pre-agreed criteria Selection of SHG/SO by DWSC Signing of contract between SHG/SO and DWSC Initial IEC at GP level carried out by SHG/SO Selection of SVS or MVS as appropriate by GP-WSC (with RWSSD assistance) Formation of MVS-WSC a sub-committee by ZP with help of SO Opening of bank account by MVS-WSC Selecting cluster of GPs to be covered under MVS Obtaining willingness of cluster of GPs for MVS facilitated by SOs Joint Undertaking between GPs covered under MVS & MVS-WSC Selection of agencies for outsourced engineering activities by DWSC Planning Phase (4 months) Mobilization of communities, participatory planning, awareness on hygiene and environmental sanitation by GP-WSC with assistance from SHG/SO Capacity building of GP-WSC/MVS-WSC members by SHG/SO Identifying technology options, site selection, infrastructure requirements by MVS-WSC with help of RWSSD Carrying out preliminary designs, line estimates for common and intra-village facilities by RWSSD 63

64 Approval of preliminary scheme design and by MVS-WSC for common facilities and GP- WSC for intra-village facilities. Preparation of Detailed Project Report (DPR) including (i) physical field survey with total station survey, preparation of computerized village road map, (ii) source selection with geo physical survey, (iii) Geo technical investigation for determining safe bearing capacity of OHSR site, (iv) Preparation of structural designs for OHSR, (v) Preparation of designs of distribution system, and preparation of CAD drawings (vi) Preparation of detailed estimates. Approval of DPR by MVS-WSC for common facilities and GP-WSC for intra-village facilities Administrative approval by DWSC and Technical sanction by RWSSD Collecting initial community contribution (for SC/ST/BPL Rs.250 per household or 5% of capital cost & for others Rs.500 per household or 10% of capital cost which ever is lower in cash or labour as decided by GPs) by GP-WSC with assistance from SO towards intra-village facilities Implementation Phase (10-20 months) Preparation of bid documents and Inviting tenders by RWSSD for construction of scheme Evaluation & selection of contractor by DWSC Signing agreement with contractors by DWSC Construction of water supply scheme by contractor Construction supervision by RWSSD in coordination with MVS-WSC Independent Construction Quality Surveillance by State PSU Release of payment, as per the Agreement, to the contractors after bills are endorsed by MVS-WSC and authorised by DWSC, passed by Executive Engineer, RWSSD and sent to PAO for payment Further training for MVS-WSCs members by SHG/SO and RWSSD The preparation of Implementation Phase Completion Reports (IPCRs) by RWSSD with assistance from SO Preparation of Utilization Certificates by Executive Engineer, RWSSD. Trial run of the scheme O&M Phase (4 months) Agreement between GP-WSC, DWSC & Private Operator (if necessary) for O&M of Intra Village Facilities Training on O&M of intra-village to GP-WSC and common facilities to MVS-WSC by RWSSD with help of SHG/SO Carrying out O&M of intra-village facilities by GP-WSC with assistance from SHG/SOs and common facilities by MVS-WSC Fixation of tariff by GP-WSC in coordination with GPs to carry out O&M of intra-village facilities Collection of water charges by GP-WSC Handing over of common facilities to ZP and provision of funds for O&M. After the initial O&M period as per construction period is over, ZP (MVS-WSC) will select a private operator to carry out O&M of MVS and sign a service agreement with private operator. Agreement between MVS-WSC, DWSC & Private Operator for O&M of Common Facilities Training of private operator by construction contractor Exit of SHGs/SOs from the GP. The detailed scheme cycle of a MVS is presented in Annexure 10 B. 64

65 6.9 Contractual Agreements for District Program Implementation Contractual Agreements for SVS Under the district program, the DWSC will work through the GPs for planning, designing and implementing the SVSs and intra-village facilities of MVSs. RWSSD will work under a service contract agreement with DWSC for planning, designing and implementing the SVS. The GP Water and Sanitation Committee (GP-WSC) will take decisions including signing-off for the scheme design and payments. The GP-WSC will be strengthened by self-help groups for participation at the design, implementation and O&M stages. The agreement signed between different parties involved at planning, implementation and O&M stages are described below (a) (i) MoU between DWSC & RWSSD upfront at the start of the Project This MoU shall be signed by two parties i.e. DWSC & RWSSD for co-ordinating and participating in the planning, design and implementation of the SVS. The activities under this MoU shall be carried out in accordance with the project rules. Activities to be performed by each party has been divided into pre-planning, planning, implementation and post-implementation (O&M) phases. Duration of the MoU shall be during the entire scheme cycle from the date of signing the MoU. The roles and responsibilities of each party are presented in Annexure (a) (ii) Joint undertaking for SVS between DWSC & GP This JU will be signed between DWSC & GP covered under SVS to co-ordinate, collaborate, support and manage the SVS including operation and maintenance of the assets, existing or newly created, in accordance with this JU. The roles and responsibilities of each party are presented in Annexure (b) (i) Service Agreement between DWSC & RWSSD This agreement shall be signed between two parties i.e. DWSC & RWSSD for planning, designing and implementation of SVS. As per project design, RWSSD will work under service contract agreement with DWSC for planning, design and implementation of SVS. The fee (if any) payable to RWSSD will be borne by GoAP. The roles and responsibilities of each party are presented in Annexure (b) (ii) Service Agreement between DWSC & Engineering Support (Private) This agreement shall be signed between two parties i.e. DWSC & Engineering Support (Private) for planning, designing and implementation of SVS. As per project design DWSC will be responsible with technical support from private TSP for planning, designing and implementation of SVS. The roles and responsibilities of each party are presented in Annexure (c) Service Agreement between GP-WSC, DWSC and Private Operator for O&M of SVS This agreement shall be signed between GPWSC, DWSC and Private Operator for Operation & Maintenance of the SVS. Under the agreement, the Private Operator shall be responsible for all activities required to be executed on a day-to-day basis for the successful Operation & Maintenance of the SVS. The roles and responsibilities of each party are presented in Annexure 15. DWSC s role is to primarily regulate the service delivery and also provide assurance to the Private Operator on payments for the O&M services to be made by GPWSC Contractual Agreements for MVS The DWSC will be responsible for planning, designing and construction of MVS. The RWSSD will provide technical assistance to DWSC for MVS and will take endorsement of the MVS-WSC 65

66 during each stage of scheme planning, design and implementation. The O&M of the common facilities (bulk water supply) for all MVSs will be the responsibility of the ZP (MVS-WSC) and intra-village facilities of MVS will be operated and maintained by GP-WSC. The agreement signed between different parties involved at planning, implementation and O&M stages are described below (a) MoU between DWSC, MVS-WSC & RWSSD A MoU shall be signed by three parties DWSC, MVS-WSC & RWSSD for co-ordinating and participating in planning, design and implementation of MVS. The activities under this MoU shall be carried out in accordance with the District Program guidelines as approved by the Rural Water Supply and Sanitation Department. Activities to be performed by each party has been divided into pre-planning, planning, implementation and post-implementation (O&M) phases. Duration of the MoU shall be during the entire scheme cycle from the date of signing the MoU. The roles and responsibilities of each party are presented in Annexure (b) Joint Undertaking between GPs & MVS-WSC This JU will be signed between GPs covered under MVS & MVS-WSC to co-ordinate, collaborate, support and manage the multi village scheme including operation and maintenance of the assets, existing or newly created, in accordance with this JU. The roles and responsibilities of each party are presented in Annexure (c) (i) Service agreement between MVS-WSC, DWSC & Private Operator for O&M of MVS (Common Facilities) This agreement shall be signed between MVS-WSC (ZP), DWSC and Private Operator for Operation & Maintenance of the common facilities of MVS. Under the agreement, the Private Operator shall be responsible for all activities required to be executed on a day-to-day basis for the successful Operation & Maintenance of the public water supply through MVS. The roles and responsibilities of each party are presented in Annexure 18. DWSCs role is to primarily regulate the service delivery and also provide assurance to the Private Operator on payments for the O&M services to be made by MVS-WSC (c) (ii) Service agreement between GP-WSC, DWSC & Private Operator for O&M of MVS (Intra-Village Facilities) This agreement shall be signed between GP-WSC, DWSC and Private Operator for Operation & Maintenance of the MVS (intra-village facilities). Under the agreement, the Private Operator shall be responsible for all activities required to be executed on a day-to-day basis for the successful Operation & Maintenance of the public water supply through MVS. The roles and responsibilities of each party are presented in Annexure 19. DWSC s role is to primarily regulate the service delivery and also provide assurance to the Private Operator on payments for the O&M services to be made by GP-WSC Service Agreements between DWSC & Self Help Group or Support Organisation The service agreement shall be signed between DWSC & Self Help Group (SHG) or Support Organisation (SO) to perform IEC & capacity building activities under district program. The roles and responsibilities of parties are presented in Annexure 20 A and Annexure 20 B Identifiable milestones to monitor Project At the start of the Project Government Orders issued regarding roles and responsibilities of SWSM, PSU, DWSM, DWSC, D-PSU, ZP, MVS-WSC, GP and GP-WSC for the implementation of the District Program. 66

67 The PSU fully functional and manned by senior officers deputed from RWSSD and other contractual arrangements. Batch I fully identified. Capacity development program initiated for RWSSD, SWSM, PSU, DWSM, DWSC, ZP, D-PSU and GP. At the end of first year of Project SWSM, DWSM, DWSC, PSU and District PSUs - all fully operational. Bulk water tariff policy and O&M policy issued. All aspects of IEC program launched. Capacity of at least 25% of the staff of DWSM, DWSC and PRIs built on principles of demand responsive and community managed RWSS systems. Batch 1 completes pre-planning and planning stages. Wherever MVS is taken up, appropriate capacity building plans have been taken up for MVS-WSCs. The bye-laws required for formation of MVS-WSC for MVS is given in Annexure 6. By the end of Second year of Project Capacity of at least 75% of the staff of DWSM, DWSC, and PRIs built on principles of demand responsive and community managed RWSS systems. Batch 1 completed. Batch II completes pre-planning and planning stages. Batch III and IV identified. By the end Third year of Project Capacity of 100% staff of DWSM, DWSC, and PRIs built on the principles of demand responsive and community managed RWSS systems. Batch II completed. Batch III and IV complete pre-planning and planning stages. By the end of the Project Batch III and IV completed. Capacity development for the PRI staff will be an ongoing and regular Program. Uniform district policy and guidelines applied and all RWSS functionaries work in participatory mode with the PRIs. At least 70% O&M cost recovery achieved. Post Project Sector Institutional Vision GoAP s vision for the RWSS Sector envisages a gradual transformation of the role of the RWSSD from service provider to a facilitator, while decentralizing RWSS services and building capacity of the PRIs. Based on the success of the proposed project, the RWSSD will scale-up the district program to other interested districts as a follow-up Phase II program User cost sharing principles One of the key elements of the demand responsive approach is to introduce the concept of capital cost sharing and full recovery of operation and maintenance expenses through user charges. Thus, 67

68 in order to enhance financial sustainability of schemes, GoAP will adopt policy decisions on capital cost contributions and full O&M cost recovery based on affordable community contributions, with the guiding principles given below Capital cost recovery The GP will contribute towards the cost of all new investments (amount not to exceed 10% of capital cost or Rs 500 per household, whichever is lower), through funds raised from beneficiary households. The community contribution for the Scheduled Caste (SC) / Scheduled Tribe (ST)/ BPL households will be on a concessional basis (amount not to exceed 5% of capital cost or Rs 250 per household, whichever is lower). The above contributions may be in cash or labour, as decided by the GPs O&M cost recovery The O&M cost for all investments (SVS and MVS) will be recovered through user charges, subject to an affordability ceiling. The O&M charges for all new schemes will be fixed prior to the commencement of the scheme. For MVS, the DWSC will decide the bulk water charges prior to approval of the MVS. In case of high cost schemes, the amount exceeding household affordability level (Rs 45 per month) will be subsidized. The detailed estimation of tariff is presented in Annexure

69 7 Financial Management Arrangements 7.1 Financial Management framework The Project will use the existing PAO system, with certain modifications, for funds disbursements. In accordance with the existing PAO system, the PRED Rural Water Supply will receive funds from the State Government. The State Government will release the funds to the Engineer-in-Chief, Rural Water Supply by way of BRO for the purpose of meeting expenditures for various schemes. The Engineer-in-Chief in turn will issue LoC to the divisional office. The AEE will prepare the bills based on progress of work and through the DEE will send the bills to the Executive Engineer for approval. The Executive Engineer will approve the bill received from the sub-divisional office and will forward the bill to the PAO, after obtaining the authorization from the DWSC. The PAO, after verifying the bill, will issue a cheque and forward it to the divisional office. The divisional office in turn will issue the cheque to the contractor. The community contributions will be deposited in a separate bank account of the GP-WSC. GP- WSC shall make payments from the deposited community contributions to the executing agency during the pre-final bill, after the bill has been raised by DEE, passed by the EE and also endorsed by GP-WSC. The payment cheque shall be signed by GP-WSC and AE/AEE. The final bill shall be paid by the PAO. The chart showing the existing PAO fund flow is given below. Exhibit 37: Existing PAO system Funds contributed by Central Government Funds Contributed by the State Government State Government Account State Government releases the fund to Engineer-in-Chief by way of Budget On the proposal sent by RWSSD to State Government Engineer-in-Chief issues letter of credit to the Divisional Office On presentation of bills by the contractor to the Divisional Office Actual Flow of Funds Process work for Fund Flow PAO issues cheque to the Divisional Office. Divisional Office issues cheque to the Contractor On approval of bills by PAO A detailed assessment of the financial management capacity of the GPs was undertaken. The existing financial management arrangements at RWSSD were also studied in detail. These are compiled and presented in the Annexure 22 & 23 respectively. 7.2 Budgeting The GoAP will make an appropriate allocation for the project through a budget line item and release funds through the mechanism of the budget. The state government will make an annual budgetary allocation for the project as a Plan- Capital item (expenditure head of account); under 69

70 a separate budget line item AP RWSS World Bank Project, in the demand for Grants by the RWSSD. 7.3 Fund-flow and disbursement arrangement The GoAP s existing FM procedures and rules, as applicable to the current activities undertaken by the RWSSD divisions/ GPs will be followed for the project. These systems relate to budget allocations and fund flow for the project, financial sanctions and approvals, and require all payments to be made through the state government's Pay and Accounts (PAO) System as per the rules of the Govt. of AP. The Finance Department will provide the Budget Release Order (BRO) to the Engineer-in-Chief of the RWSSD, who would be responsible for allocating the LoCs to the RWSSD field divisions for all the works. The RWSSD will utilize funds to the limit of the LoC for implementing the works. A copy of the LoC will be sent to the DWSC to provide information on annual allocation and the limits to which the DWSC can authorize payments as per the annual budget allocation. Once a specific work is completed and is verified and check measured, the Dy. Executive Engineer of the RWSSD field division raises the bills for payment in respect of the work completed. The Executive Engineer of the division (who is the DDO as per the existing FM system in the state) will seek authorization from the DWSC prior to sending the bill to the PAO for the payment. The PSU will have funds allocated for the Capacity building component and the Project Management component through the respective budget sub- heads. In respect of Single Village Schemes, the GP-WSC will "endorse and sign-off" the bill raised by the Deputy Executive Engineer for payment, who will then forward it to the Executive Engineer of the RWSSD Engineering Division. The latter will pass the bills, seek authorization from the DWSC and forward them to the PAO for payment. In respect of the MVS, the Executive Engineer will pass the bill received from DEE and get endorsement from the MVS-WSC and authorization from DWSC, before sending it to the PAO for payment. The above procedure will be followed for making payments in respect of other works implemented by DWSC such as UGD. SLWM, Drains, roof water harvesting systems, ground water recharge measures. In the case of small in-village works (like Individual Sanitary works, soak pits, etc.) implemented by beneficiaries, payments will be made as per the procedure followed under Total Sanitation Campaign (TSC). In case of Component A (Capacity and Sector Development) and Component C (Project Implementation Support), funds will be allocated to these components under the respective budget sub - heads under the Project Major Head. The Project Director will then allocate these funds as per regular procedures of the state government to the concerned Implementing Agency for the Component A and to the D-PSUs for Component C. The proposed fund flow and disbursement arrangements for new schemes are given in the figure below. 70

71 Exhibit 38: Proposed fund flow and disbursement arrangements Legends: World Bank Govt. of India Flow of Funds Requirements of Funds Govt.of AP, Finance Dept. Authorisation payment for BRO Secretary, RWSSD E-in-C RWSSD SWSM LoC Division-wise requirement of funds DWSC Authorisation of payment EE, RWSSD & PSU PAO MVS-WSC Bills endorsed and sign-off GP (GP-WSC) Bills endorsed and sign-off Works Contractors/ Executing Agency The following fund flow arrangements have been agreed in principle with GoAP: World Bank to GoI: The World Bank shall make available project funds into the Special Account opened by GoI with Reserve Bank of India. The World Bank releases funds into the special account as reimbursement based on quarterly Interim Unaudited Financial Reports (IUFRs) prepared by the PSU on the basis of consolidated actual expenditure in the specified agreed formats. GoI to GoAP: MoF, GoI will transfer the Rupee equivalent of the funds credited into the Special Account to the Consolidated Fund of GoAP within specific number of days on a back to back arrangement. GoAP, Finance Department to RWSSD: GoAP, Finance Department will provide the BRO to E-in-C, RWSSD as per project requirements RWSSD to respective Divisions: The Engineer-in-Chief will release LoCs based on the annual allocations by DWSC. 7.4 Accounting and Financial Reporting The GoAP s existing FM procedures and rules will be applicable to all the activities undertaken in the project. The accounting and expenditure reporting in respect of the schemes will be as per information generated through the standard Government Accounting Systems in which monthly RWSSD divisional level accounts are rendered to the AG by the district Pay and Accounts 71