Japanese ODA Loan

Ex-Ante Evaluation (for Japanese ODA Loan)
1. Name of the ProjectCountry: India
Project: Yamuna Action Plan Project (III)Loan Agreement: February 17, 2011
Loan Amount: 32,571 million yen
Borrower: The President of India
2. Background and Necessity of the Project(1) Current State and Issues of the Water Supply / Sewerage and Sanitation Sector in India
In India, the rate of the development of water resources utilizing surface water and water supply
facilities is not prompt enough to keep up with the demand boosted due to the population/economic
growth. The scarce availability of potable water supply has resulted in serious situation, which isfurther coupled with over extraction of the groundwater. On the other hand, the sewerage systemcoverage rate is merely 28% even in the urban areas. In particular, the rapid rate of the populationinflux from rural to the urban areas and the industrialization is accelerating wastewater discharge
which is not only causing problems such as contamination of rivers, soil and ground water but also
resulting others constraints due to the limited sewage treatment capacity, thereby threatening the
public health and living environment.
(2) Development Policies for the Water Supply/Sewerage and Sanitation Sector in India and Priorityof the Project
In its Eleventh Five Year Plan (April 2007- March 2012) the Government of India has outlined agoal of providing water supply, sewerage and sanitation facilities to all the urban population by
FY2011. Further, the Ministry of Environment and Forests has been carrying out the riverconservation projects since 1985 on 34 major rivers, which are severely contamination in 160 cities,
by improving the sewer systems based on the National River Conservation Plan (NRCP) so thatwastewater in the urban areas can be completely treated before being discharged into rivers.
The Yamuna Action Plan (YAP) on River Yamuna (the river runs through major cities such as
Delhi and Agra) has been one of the key projects under the NRCP, which was introduced in the
Eighth Five Year Plan and serve as a basis for this project.
(3) Japan and JICA’s Policy and Operations in the Water Supply/Sewerage and Sanitation Sector in
India
The Country Assistance Program for India by the Government of Japan will consider the rapid
growth of urban population and support the supply of adequate and safe drinking water and theremediation of poor public sanitation as part of measures on environmental issues in order toimprove living standards and prevent water contamination in the major rivers. Further, in rural areas,water supply development projects are supported as part of the development of basic infrastructure
for the living environment of the poor. In Japanese ODA loans for India in the watersupply/sewerage and sanitation sector, 23 projects with loans totaling 402.5 billion yen including
the Phase I (FY1992, ¥17,773 million) and the Phase II (FY2002, ¥13,333 million) of the project
have been approved. JICA Experts have also been dispatched under the technical corporation since2004 to the National River Conservation Directorate, Ministry of Environment and Forests, which
has been in-charge of the NRCP. The training curriculum, teaching materials have also beendeveloped and the trainings have been provided in order to improve capacity of the organizations
related to the operation and maintenance of sewerage facilities.
(4) Other Donors’ Activity
The World Bank and the ADB have provided assistance to the water supply/sewerage sector as
part of their measures to reduce poverty. Focus areas are (a) assistance to states/cities that areproactive in making reform, (b) promotion of competition in service improvements in watersupply/sewerage services among local governments, (c) rationalization of water tariff levels, (d)utilization of private sector resources and (e) consideration of poverty impacts.
(5) Necessity of the Project
The rapid urbanization and more than expected population growth in the recent years haveresulted in huge sewage generation. This has caused severe water pollution in River Yamuna andthereby the sanitation and health problems in urban areas in river basin cities. The improvement ofsewerage infrastructure is a pressing issue for the better living conditions. In particular, National
Capital Territory of Delhi is heavily populated. Delhi’s population was 16.2 million in 2006, which
is now estimated to be 18.2 million in 2011, the 90% of which live in urban areas. The total waste
water generated in the territory is approx 2.91 million m3/day. Though the capacity of the sewage
treatment plants is 2.33 million m3/day, only 1.64 million m3/day is being treated. The length ofRiver Yamuna in National Capital Territory of Delhi is only 2% of the total length of the river,
however, it is discharging 80% of the pollution load in the entire basin. Therefore, in order toimprove water quality of River Yamuna, it is imperative to improve the sewage systems including
sewage treatment capacity in this particular territory. The water quality improvement of River
Yamuna is very vital, in accordance with the Yamuna Action Plan under the National River
Conservation Plan of the Government of India, which is consistent with JICA’s assistance policy.
Therefore, absolute necessity and relevance of the project justify JICA’s support to this project.
3. Project Description(1) Project Objective(s)The objective of the project is to improve the water quality of River Yamuna by modernizationof sewage treatment plant rehabilitation and replacement of the existing sewerage system and byimplementing public outreach activities in National Capital Territory of Delhi, thereby
contributing to improvement of public health conditions for inhabitants.
(2) Project Site/Target Area
National Capital Territory of Delhi(3) Project Component(s)This project will improve the operational efficiency of the existing sewage facilities in National
Capital Territory of Delhi through improvement and construction of new facilities for treatedsewage recycle, to provide recycled water and improve the quality of management andmaintenance.
1) Modernization, rehabilitation and replacement of sewerage facilities (sewage treatment plants,
trunk sewer, etc.)
2) Construction of facilities for treated sewage recycle
3) Public outreach program4) Consulting services (assistance for bidding, construction management, etc.)(4) Estimated Project Cost (Loan Amount)
40,663 million yen (Loan Amount: 32,571 million yen)(5) Schedule
February 2011 - April 2018 (total 87 months). Project completion is defined as thecommencement of the service of the facilities (April 2017).
(6) Project Implementation Structure1) Borrower: The President of India
2) Executing Agency: Delhi Jal Board (DJB)3) Operation and Maintenance System: Same as in 2)(7) Environmental and Social Consideration / Poverty Reduction/Social Development
1) Environmental and Social Considerations(i) Category: B(ii) Reason for Categorization

This project is not considered to have significant undesirable impact on the environment,
given the characteristics of the sector and the characteristics of the project area, under the“Japan Bank for International Cooperation Guidelines for Confirmation of Environmental
and Social Consideration” (established in April 2002). For this reason, this project isclassified as Category B.
(iii) Environmental Permit
The Environmental Impact Assessment (EIA) report is not required for this project under
the country’s legal system.
(iv) Anti-Pollution Measures
Wastewater from the sewage facilities will be treated to meet the local wastewater criteria
before being discharged to river, and no particular impact is expected. Each of the seweragefacilities will be reconstructed and renewed, sustaining a certain treatment capacity andtaking anti-pollution measures fully into consideration.
(v) Natural Environment
The target sites of the project and peripheral areas are not in the vicinity of any of the nature
reserves, etc. No negative impact on natural environment expected.
(vi) Social Environment
The project consists of reconstruction and renewal of the existing facilities, and involves
neither land acquisition nor involuntary resettlement.
(vii)Other/Monitoring
In this project, the DJB will monitor quality of the wastewater discharged from treatment
plants, and the Central Pollution Control Board will monitor the water quality of River
Yamuna.
2) Promotion of Poverty Reduction：The project will implement awareness activities and public
relations among residents including those in the slum areas.
3) Promotion of Social Development: The aspect of gender will be taken into consideration in theactivities of awareness and public relations.
(8) Collaboration with Other Donors：The project will collaborate with local NGOs in publicawareness, public relations, and provide trainings for the DJB staff using the teaching materials
developed in the above-mentioned technical cooperation project.
(9) Other Important Issues: None
4. Targeted Outcomes(1) Performance Indicators (Operation and Effect Indicators)
Indicator
Amount of Wastewater Treated(m3/day)
Rate of Facility Utilization (%)
Effluent BOD Concentration(mg/L) (Annual Average)
Amount of Recycled Water Supply(m3/day)

Baseline(Actual Value in 2009)

Target (2019)【Expected value 2 years
after project completion】

887,400

1,546,000

82.2

100
After secondary treatment＜20
After advanced treatment＜10

After secondary
treatment ＜20.9－

190,000(2) Internal Rate of Return
Based on the conditions indicated below, the Economic Internal Rate of Return (EIRR) for the
Project is 8.11%.

【EIRR】
Cost: Project cost (excluding tax), operation and maintenance expenses
Benefit: Sewage fees, sales of recycled water, water saved by recycled water
Project Life: 30 years
5. External Risk Factors and Risk Control
Population growth significantly exceeding the projections
6. Lessons Learned from Past Projects
From ex-post evaluations of the phase I of the project, a certain effect of sewerage facilities has
been observed in improving the sanitary environment, but the water quality of River Yamuna has
been improved only in a limited manner, because, in addition to the upstream intake for drinking
water, the rate of contamination caused by the population growth is faster than estimated. Therefore,
it is considered necessary to develop an approach to cope with the current level of contamination.
Considering such situation as well as the sewage facilities to be reconstructed through this project,designs are under way so that untreated wastewater can be collected more thoroughly and thecapacities of transportation and treatment can keep up with the level of wastewater discharge.
7. Plans for Future Evaluation(1) Indicators to be Used
1) Amount of Wastewater Treated (m3/day)2) Rate of Facility Utilization (%)3) Effluent BOD Concentration (mg/L) (Annual Average)4) Amount of Recycled Water Supply (m3/day)
5) Economic Internal Rate of Return (EIRR) (%)(2) Timing
Two years after project completion
Two years after project completion