Ex-Ante Evaluation
South Asia Division 1, South Asia Department
Japan International Cooperation Agency
１．Name of the Project（１） Country: India（２） Project Title：Project for the Improvement of Urban Water Supply Systemin Uttarakhand（３） Project Site/ Target Area: State of Uttarakhand (Total Population: about
10 million (2011))
Loan Agreement: February 20, 2024
２．Background and Necessity of the Project（１）Current State and Issues of the Water Sector and Priority in India
India is expected to have the world's largest population in 2023 and willcontinue to experience higher demand for water due to continued population
growth (population growth rate of 0.8% as of 2021 (World Bank, 2023)) and higheconomic growth (GDP growth rate of 8.7% as of 2021 (World Bank, 2023)). In
addition to developing water sources, there is a need to increase water supply
and develop efficient water supply systems by rehabilitating aging existing
facilities and strengthening operations and maintenance capacity, including
reducing the non-revenue water rate (38% as of 2020 (Industrial Automation,2020)). In light of this situation, the Government of India has been promoting thedevelopment of waterworks with the goal of providing piped water to all
households by 2024. However, as of November 2023, only about 71% of allhouseholds in India are connected to the water supply system (Ministry of Jal
Shakti, 2023), so the government needs to accelerate its efforts.
Located in northern India and bordering China and Nepal, the state ofUttarakhand has a population of about 10.08 million (Census, 2011) and an areaof about 53,483 km2, of which about 86% (46,035 km 2) is steep mountainous
terrain that extends from the Himalayas (Government of Uttarakhand, 2017).
The state is the source of major rivers, including the Ganges, which originatesfrom melting snow in the Himalayas and plays an important role as a water
reservoir for the states located downstream. In addition, the urban population
has continued to grow rapidly, increasing by about 42% in the 10 years from2001 to 2011, well above the 32% average for urban areas across India overthe same period (Government of Uttarakhand, 2019). In many areas around theHimalayas, including this state, rainfall is concentrated during the monsoon

season while other seasons are dry, making it difficult to secure sufficient water
for agriculture and drinking water from surface water throughout the year. There
are 13 districts and 102 urban towns in the state, and in 50 urban towns, morethan 50% of all households are still not connected to the water supply system.
Particularly in mountainous and remote rural areas, the number of households
without access to sufficient drinking water throughout the year is 18.4%, higher
than in urban areas of the state (3.0%) and the Indian average (9.1% in urban
areas and 12.4% in rural areas), indicating that securing a stable source of water
is an issue (Government of India, 2023). In addition, the effects of climatechange are becoming more severe, as some districts in the state experienced
droughts in 2016 and 2021 due to depletion of groundwater and lack of rainfall.
Some areas in the state also suffer from delays in the development of watersupply systems, forcing 60% of women and children to travel an average of 0.5
km and 10% to travel an average of 4 km to carry water daily (ENVIS, 2017).
There are concerns about the physical burden of fetching and carrying water, as
well as the loss of employment and schooling opportunities, making watersupply in the state a critical issue not only from the perspective of stable accessto water, but also from the perspective of gender mainstreaming.
Recognizing this situation, the Government of Uttarakhand has formulated
the “Uttarakhand Vision 2030” and the “Improving Drinking Water Policy for Peri
Urban Areas” and is promoting the development of water supply systems with afocus on providing safe and stable drinking water and efficient water resource
management in the mountainous and remote areas of the state wheredevelopment is lagging behind. The Project for the Improvement of Urban Water
Supply System in Uttarakhand (hereinafter referred to as "the Project") isconsistent with the state's policy to support the provision of stable water supply
services to households through the development of an efficient water supply
network in areas including mountainous and remote areas of the state.
（２）Japan's and JICA's Policy for Cooperation and Operations in the Water
Sector (especially in relation to key foreign policies such as the Free and Open
Indo-Pacific Partnership (FOIP))Country Assistance Policy for India (March 2016), formulated by theGovernment of Japan, stipulates “supporting sustainable and inclusive growth”
as one of the priority areas, and positions cooperation in water supply andsewage as important areas to tackle environment and climate change issues.
The JICA's Country Analysis Paper on India (March 2018) also highlights

“improvement of basic social services ” in “Supporting Sustainable and InclusiveGrowth”, which is one of the priority areas, stating that JICA will support India inachieving sustainable economic growth and ensuring that the benefits of thisgrowth will be shared equally by society.
In addition, the Project is consistent with one of the Pillars of the “Free andOpen Indo-Pacific” initiatives, “Addressing Challenges in an Indo-Pacific Way”
in that the Project will stable water supply and climate change responses
through water resource management.
The JICA Global Agenda also identifies “Sustainable Water Resources
Management and Water Supply” as an important issue. Its cooperation policy
and analysis to support the growth of the country by increase the revenue fromwater utilities through service improvement such as expansion and maintenanceof water supply facilities, promoting stable operations, and expanding thepotential for further investment are in line with this Project.
Furthermore, the Kumamoto Water Initiative, announced by Prime Minister
Kishida at the 4th Asia-Pacific Water Summit in April 2022, calls forapproximately 500 billion yen in assistance over 5 years to promote thedevelopment of high-quality water supply and accelerate water-related
initiatives in the Asia-Pacific region and the rest of the world. This Project is inline with such initiatives as well.
（３）Other Donors’ Activities
The World Bank has been supporting Uttarakhand Water Supply Program forPeri Urban Areas (USD 150 million) since 2018. The ADB has been supporting
Uttarakhand Integrated and Resilient Urban Development Project (USD 156million) since 2021, which includes support to improve access to affordable andsafe drinking water. KfW banking group has been supporting EnvironmentallyFriendly Urban Development Program in Ganga Basin (USD 218 million) toprevent untreated sewage from entering the Ganges River and improve the river's
water quality.
３．Project Description（１）Project Description① Project Objective
The Project aims to provide stable water supply services to areas in thenorthern Indian state of Uttarakhand that do not have access to sufficient drinking
water, including mountainous and remote areas, and thereby contribute toimproving the living environment of the people in these areas and their adaptation

to climate change.
② Project Components
The Project aims to achieve the above-mentioned project objectives byimplementing multiple projects (hereinafter referred to as "sub-projects") in thetarget area to develop water supply facilities of one of the three types: pumping
distribution system, gravity flow distribution system, and tube well intake system,
up to ODA loan amount. The executing agencies prepared the Detailed Project
Reports (hereinafter referred to as “DPR”) for 38 urban towns as candidate
subprojects for the Project, of which 18 urban towns were selected as high-priority.
At the stage of implementation, sub-projects will be determined up to the loan
amount of the Project. The main components included in sub-projects are as
follows, and the components covered by ODA loans are (a) through (c) and (e).
Although included in (a) through (c), the cost for household connections (including
meter reading installation) and operation and maintenance costs (for 2 years) will
be borne by the India side.
＜Main components of the Project＞a） Development of pumping water distribution system (intake facilities, rising
mains, water treatment plants, intermediate pumping stations,transmission pipelines, distribution reservoir, distribution pipelines, IoT
system*, power receiving equipment, household connections (including
meter installation), etc.) and its operation and maintenance (2 years).
b） Development of gravity flow water distribution (intake facilities, rising
mains, water treatment plants, transmission pipelines, distribution
reservoir, distribution pipelines, IoT system*, power receiving equipment,household connections (including meter installation), etc.) and its
operation and maintenance (for 2 years)c） Development of water intake system from wells (intake facilities,
overhead tanks, transmission pipelines, distribution pipelines, IoT
system*, power receiving equipment, household connections (includingmeter installation), etc.) and its operation and maintenance (for 2 years)d） Consulting Services (1) (baseline surveys (e.g., data collection for subproject selection))e） Consulting Services (2) (review of the results of baseline survey, basic
design, bidding documents preparation and tender assistance,
construction supervision and monitoring, construction safety
management, assistance in procedures and monitoring related toEnvironmental and Social Considerations, strengthening capacity andorganizational structure of the executing agencies and operation andmaintenance organizations, awareness-raising activities (promotion ofhousehold connections), support for activities related to gendermainstreaming (results monitoring, awareness-raising activities, etc.),
etc.)*A cloud-based system that monitors and manages water supply facilities
centrally. Automatic meter reading are sought be introduced in some areas.
③ Project Beneficiaries (Target Groups)
Customers who will use the water supply facilities to be developed under
the Project, and staff of the executing agencies who are the target of thehuman resource development and organizational capacity development
activities.
（２） Estimated Project Cost
24,729 million yen (Japanese ODA loan: 16,211 million yen)
（３） Schedule (Cooperation Period)
February/2024 - May/2033 (112 months). The commencement of operationof the facilities for all selected sub-projects (April 2031) is considered as thecompletion of the Project.

（４） Project Implementation Structure１）Borrower: President of India
２）Guarantor: N/A
３ ） Executing Agency: Department of Drinking Water and Sanitation,
Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam) (hereinafter referred
to as “UKPJN”)
４）Operation and maintenance system:
Upon completion of the Project, ownership and authority for operation andmaintenance of all facilities will be transferred from UKPJN to Uttarakhand JalSansthan (hereinafter referred to as "UJS"). However, in order to allow time forUJS to procure contractors responsible for operation and maintenance(hereinafter referred to as “the O&M contractors”), operation and maintenance ofeach facility will continue to be implemented by the construction contractors for aperiod of two years. During this period, UJS will procure the O&M contractors,
and upon expiration of the two-year period, the O&M contractors will begin
operation and maintenance of the facilities. The outsourced O&M costs areusually covered by grant from the Government of Uttarakhand, and it has been
confirmed with Finance Department of the state government that the same will
be applied for the Project and that the budget will be securely allocated.
（５） Collaboration and Sharing of Roles with Other Donors
１） Japan's Activities: None
２） Other Donor’s Activities: None
（６） Environmental and Social Considerations① Category：FI② Reason for Categorization
The Project cannot identify sub-projects before JICA's loan approval under the“JICA Guidelines for Environmental and Social Considerations” (issued inJanuary 2022), and such subprojects are expected to have environmental
impacts.
③ Other/Monitoring
Under the Project, the executing agencies, with the assistance of ProjectManagement Consultant hired under JICA ODA loan project, will classify subprojects into categories based on India's domestic legal system and JICA
Guidelines for Environmental and Social Considerations, and the necessary
measures will be taken according to the result of categorization. The Project will
not include any sub-projects which is Category A.

（７） Cross-Sectoral Issues① Climate change related projects
As the Project includes sub-projects to change the water resource from springwater to surface water, it is expected to mitigate an effect of climate change, andwill reduce the risk of adverse climate change impacts by providing a relatively
stable water resource that will not be affected by rainfall variability. Therefore, theProject contribute to climate change countermeasures (adaptation).
② Consideration for persons with disabilities
In consideration of people with disabilities, the Project will install universallydesigned toilets and rest areas at construction sites and promote employment ofpeople with disabilities.
（８）Gender Category:【Gender Project】■GI（S）(Gender Informed (Significant) )＜ Reason for Categorization ＞ Awareness-raising activities to change
stereotypical gender roles on gender issues such as the burden of carrying water,which is mainly done by women, will be conducted with the target community
residents and the results and progress will be monitored. For these reasons, theProject is classified as a “gender activity integration project”.
（８） Other Important Issues: None
４. Target Outcomes（１） Quantitative Effects
2） Outcomes (Operation and Effect Indicators)
Indicator

Baseline

Target (2033)【2 years after
project completion】

Population with water supply(thousand)
Daily water supply (hours)
Water supply volume (m3/day)(Note)

Percentage of urban towns
within the Project target areathat have achieved 135 liters perperson per day (LPCD) (%)（
(Note) The baseline and target values will be determined based on the results ofthe baseline survey to be conducted after the commencement of the Projectthrough discussions between the executing agencies and JICA with theassistance of consultant/s hired under the ODA loan.
（２） Qualitative Effects
Stable water supply, improvement of the health condition and living
environment of the population, promotion of women's social participation,
adaptation to climate change, etc.
（３）Internal Rates of Return
Based on the assumptions listed below, the economic internal rate of return(EIRR) for the Project is 33.2%. The Project is not intended to generate revenue
from water service charges, and the financial internal rate of return (FIRR) is not
calculated.
【EIRR】
Cost: Project costs (excluding taxes), operation and maintenance costs
Benefit: Effects of water tariffs based on willingness to pay, reducing costs fromuse of non-piped resources, reducing water collection time, reducing earning
loss due to waterborne diseases, and reducing domestic water treatment cost.
Project Life: 30 years５. External Factors and Risk Control（１）Preconditions: None
（２）External Factors: None
６. Lessons Learned from Past Projects
From the ex-post evaluations of the ODA loans for India, such as the West
Bengal Piped Water Supply Project (evaluated in FY2017), the Guwahati
Sewerage Project (evaluated in FY2020), and the Kerala Water Supply Project(I) (II) (III) (evaluated in FY2020), lessons learned are that in order to prevent
project delays due to obtaining permits and scoping changes, etc., it is necessary
not to rely solely on the DPR and information submitted by the executing agencies,
but to collect detailed data through JICA's own survey and other means
separately, and to fully confirm the appropriateness, feasibility, etc. of the Projectat the appraisal stage. In the Project, detailed data was collected through the Data
Collection Survey for Urban Water Supply and Sewerage System in Uttarakhand,and feasibility was examined based on the appropriateness of the project's water
resource management plan, land acquisition status, etc. In addition, sub-projects
will be selected through baseline surveys to fully confirm the sustainability of thewater source, operation and management system of the entity after thedevelopment of the facilities, and the safety during project implementation.
７. Evaluation Results

The Project is in line with the development agenda and policies of theGovernment of India and the development cooperation policies and analysis ofJapan and JICA, and will contribute to the provision of stable water supply
services, improvement of the living environment of the people in the region andadaptation to climate change through the development of water supply facilities .
It is also expected to contribute to SDGs Goal 3 “Ensure healthy lives andpromote well-being for all at all ages”, Goal 6 “Ensure availability and sustainable
management of water and sanitation for all”, and Goal 13 “Take urgent action tocombat climate change and its impacts”, making the implementation of thisProject highly significant.
８. Plan for Future Evaluation（１） Indicators to be Uses.
As indicated in Section 4.
（２） Future Evaluation Schedule
Ex-post evaluation: 2 years after project completion
END
Appendix: Map of Project for the Improvement of Urban Water Supply System in
UttarakhandAppendix
Map: Project for the Improvement of Urban Water Supply System inUttarakhand

Uttarakhand State(Source：JICA survey team）
Candidate urban towns for subprojects ( red circles )（Source：JICA survey team）