Ex-Ante Evaluation Paper (for Japanese ODA Loan)
South Asia Division 1, South Asia Department, JICA
1.

Name of the ProjectCountry: India
Project: Project for Pollution Abatement of Nag River in Nagpur
Loan Agreement: March 27, 2020
2.

Background and Necessity of the Project(1)

Current State and Issues of the Sewerage Sector in India
In India, sewerage emissions are increasing as the demand for clean water

increases following the population growth and economic development, but
only about 37% of sewerage emissions are treated with the current treatment
capacity of the sewerage treatment facilities (according to the data of the India
Central Pollution Control Board, 2016), and the access ratio to sanitaryfacilities is 39.6% (World Bank, 2015), which is low and causing problems suchas water pollution in rivers in various regions. Moreover, there are problems interms of operation, maintenance, and management such as insufficient humanresources of entities in charge of sewerage services.
The Indian government has set the policy goals of providing sewerage andsanitary facilities to the whole population in urban areas and eradicating
outdoor excretion, etc. in the National Urban Sanitation Policy 2008. The
insufficient water supply and sewerage systems was pointed out as an issue
for urban development in the Three Year Action Agenda (from 2017/18 to2019/20) announced in 2017, and toward the solution of the issue, the Clean
India Mission: Swachh Bharat Mission to eradicate outdoor excretion andimprove environments of each city through the development of sewerage andsanitary facilities and the Atal Mission for Rejuvenation and Urban
Transformation (AMRUT) to promote infrastructure developments, including
water supply and sewerage facilities in major cities, started in 2014.
In Maharashtra, the target region of the Project, water policies have beenformulated in accordance with the directions of both of the above policies of
the central government, and efforts have been made proactively such asutilization of water resources, conservation of rivers, and mandatory recyclingof industrial water, etc.
Nagpur in Maharashtra is a hub city of the state, whose population is approx.
250 million (2011 census). The city is being rapidly urbanized, but pipes anddrains in the city have not been developed accordingly, and untreatedsewerage is discharged into the rivers flowing though the city, causing serious
pollution and enormous adverse effects in dwelling environments especially ofnorthern and central zones, where the populations are concentrated. Theserivers flow into the dams that are used for irrigation and industrial water
downstream, so the water pollution in the dams is also a serious problem. This
Project, whose purpose is to improve the water quality of the Nag River, PiliRiver, etc. and improve the sanitary and living environments of residents in thebasins of the rivers and downstream through the developments of the intakeweir that takes sewerage at the point before flowing into the mainstreams ofthe Nag River and Pili River, major pipes and drains to deliver the sewerage tosewerage treatment facilities, and sewerage treatment facilities, is positioned
as a key project in the Indian Sewerage Sector.
(2)
Japan and JICA’s Sewerage Sector Policy and the Positioning of theProjectCountry Assistance Policy for India (March 2016) has set a priority goal of“assistance for sustainable and comprehensive growth” and positioned theassistance for water supply and sewerage as a part of countermeasuresagainst environmental problems and climate change. Moreover, the paper of
the JICA Country Analysis Paper for India (March 2018) set “assistance forsustainable and comprehensive growth” as a priority field and assumed that
responses to rapid urbanization could be made by providing assistance to thesocial sector such as fundamental social infrastructure development, etc.,
including sewerage and sanitary facilities as a part of urban development in
the water supply and sewerage, sanitary improvement, and pollution
prevention measure program. Therefore, this Project is consistent with theanalysis and policies. This Project also agrees with the development issues
and policies of India as well as cooperation policies and analyses of Japan andJICA and is presumed to contribute to the SDGs Goal 6, “securing ofsustainable water resources, water, and sanitation for everyone”.
(3)
Other Donors’ Activities
The World Bank set the revitalization of urban areas and the sustainability
improvement as a priority item in the Country Partnership Framework (from2018 to 2022), adopted the policy of providing assistance to water discharge
management and waste management, and placed emphasis on theenhancement of collaboration in the private sector and capacity enhancement

of autonomous communities in urban areas in order to achieve the goal. The
Asian Development Bank is promoting the development of public infrastructure,including water supply and sewerage, toward comprehensive urbanization asa priority field in the Country Partnership Strategy (from 2018 to 2022) as well
as placing emphases on institutional system enhancement, capability
improvement, and promotion of PPP utilizing lessons from other countries.
They have recently implemented the Tamil Nadu City Flagship Investment
Program, which supports the supply water and sewerage development inTamil Nadu (3 tranches in total, up to 500 million USD. The 2nd tranche (206million USD) was approved in 2019). The United States Agency forInternational Development has a proven record of supporting the capacity
development of business operation institutions of water supply and sewerageand the sanitation sector in 70 cities of 13 states in total, such as Karnataka
and Maharashtra, from 1993 to 2011. Moreover, they provided technicalassistance for effective utilization of water sources in Maharashtra, Haryana,and Rajasthan from 2012 to 2013. Agence Française de Développement(AFD) has set the sustainable urban development in assistance to India as apriority item and has a proven record of implementing water supply andsewerage development projects, etc. in the field of water resources. It isplanning to implement the Riverfront Development Project also in Nagpur,
Maharashtra that is a target region of this Project as described later in 3. (7).
3.

Project Description(1)

Project Objective
The objective of the Project is to improve the water quality and abate thepollution of Nag River and Pili River in Nagpur, Maharashtra by developing
sewerage system and sanitary facilities in their basins, thereby contributing tothe improvement of urban environment.

(2)
(3)
1)

2)

Project site / Target Area: Nagpur in Maharashtra (northern and centralzones)
Project Components
Establishment and renovation of sewerage facilities (seweragetreatment plants, pumping stations, and sewerage pipes and drains,etc.)
Establishment of other facilities that contribute to the improvement ofsanitary environments (public toilets, electric crematoriums, andcattle-washing facilities)3)

Consulting services (basic design, detailed design, bidding support,
construction management, PR and enlightenment activities, andinstitutional capability enhancement, etc.)(4)
Estimated Project Cost37,637 million yen (of which, the ODA Loan amount is 29,082 million yen)
(5)
ScheduleMarch 2020 - October 2029 (116 months in total). The Project will becompleted upon the commencement of services of the facilities of the entire
package (July 2028).
(6)
Project Implementation System
1)
2)
3)
4)

Borrower: President of India
Guarantor: None
Executing Agency: National River Conservation Directorate, Ministry ofJal Shakti (NRCD)
Operation and Maintenance System: Nagpur Municipal Corporation

(NMC)
(7)
Collaboration with Other Schemes and Donors
1) Japan’s Assistance Activity: N/A2) Other Donors’ Assistance Activities
AFD is planning to implement riverfront development projects, such asbank protection to mitigate floods and renovation of roads and facilities
surrounding rivers in the basin of the Nag River, Nagpur City, and themaster plan that summarized the project plan and DPR were created by
the NMC at the time of examination and are now in the process of approvalby the Indian government. It has been confirmed that there is nooverlapping in the contents between the project of AFD and this Project,but if the river pollution is mitigated by this Project, the significance ofriverfront development will increase.
(8)

Environmental and Social Consideration / Cross-Sectoral Issues / GenderCategory
1) Environmental and Social Consideration① Category: B② Reason for Categorization: This Project is not located in a sensitive area,
nor falls in to sensitive sectors under JICA Guidelines for Environmentaland Social Considerations (published in April 2010), and its potential
adverse impacts on the environment are not likely to be significant.

③ Environmental Permit
There is no obligation to prepare an environmental impact assessment(EIA) report concerning this Project in the domestic laws of India.
④ Anti-Pollution Measures
During the work, mitigation measures are planned to be taken such as
water sprinkling, transport of waste to appropriate disposal sites,
utilization of low-pollution equipment, and installation of sound insulation
walls, etc. in order to meet the domestic emission criteria andenvironmental criteria of the country in terms of air pollution, waterpollution, noise, etc. When the services are commenced, the effects ofbad odor, noise, and vibration, etc. shall be reduced by deploying
facilities and equipment concerning deodorization and noise insulation tomeet the criteria of the country. Regarding the water quality and soil,
early detection of leakage is performed, and countermeasures are taken
through the monitoring of untreated sewerage and sludge. Moreover,regarding the components which are likely to influence the environment
such as heavy metals in untreated sewerage, it has been confirmed thatvalues exceeding the domestic standard in India and international
effluent standards are not detected. Furthermore, in the project
implementation phase, the NMC makes it a point to perform water quality
surveys periodically in the environmental monitoring plan.
⑤ Natural Environment
The project target area does not fall under national parks and othervulnerable areas or their vicinities, and adverse effects on the naturalenvironment are assumed to be minimal.
⑥ Social Environment
This Project includes a land acquisition of 2.5 ha, and the acquisition is
implemented in accordance with domestic procedures in the country and
the JICA Guidelines. Moreover, the stakeholders meeting concerning theProject has already been held and no objections to the projectimplementation have been confirmed.
⑦ Other / Monitoring
The contractor and the NMC perform monitoring of air quality, waterquality, noise, waste disposal, and ecosystem, etc. during theconstruction. After the commencement of services, regarding seweragetreatment plants, the NMC sewerage department performs themonitoring of pipes and drains in the form that the NMC monitors theprivate company to which they have consigned the operation andmanagement/maintenance and administration.
2) Cross-Sectoral Issues① Projects related to the countermeasures against climate change
In Nagpur, a forecast has been made that while the average temperaturein the city may increase owing to climate change in the future,
precipitation is unlikely to increase. Therefore, the amount of river water
may decrease in the future and subsequently cause problems such asdeterioration of the water sanitation environment, etc. This Project, which
mitigates the pollution of a river by taking and treating untreatedsewerage before it flows into the river and discharging the treated water
into the river, is something that contributes positively to climate change(adaptation measures) because it can control the deterioration of thewater sanitation environment.
② Poverty countermeasures and consideration
It falls under the category of poverty countermeasures because it isplanned to develop sewerage facilities in the areas, including slums
spread across northern and centralzones.
③ Countermeasures against infectious diseases like AIDS/HIV
The HIV infection risk is presumed to be high because a lot of workers areplanned to be engaged in this Project. Therefore, in order to prevent therisk of HIV infection during the construction work, HIV/AIDS prevention
provisions are contained in bidding documents, and contractors arerequested to collaborate in HIV/AIDS countermeasures for workers.
④ Participation-type development: N/A⑤ Disability consideration, etc.
The country ratified the UN Convention on the Rights of Persons withDisabilities in October 2007 and has to observe accessibility stipulated inArticle 9 of the convention. Regarding the installation of public toilets, etc.,
an agreement has already been made with implementation institutions on
the consideration for securing accessibility assuming the use by disabled
and elderly people. A greenhouse gas (GHG) emissions reduction effectis expected from improvements in traveling performance, etc. through theProject, which contributes positively to climate change (mitigation

measures). The expected climate change mitigation effect of the Project(rough estimation of the GHG emissions reduction) is approx. 2050t/year(as of 2025).
3) Gender Category: ■GI (S) (Gender activity integration project)<Activities/Classification Rationale>
This Project has surveyed the gender mainstreaming needs in the sewerage
sector in the cooperation preparation survey, and an agreement has alreadybeen made under which women participate in the resident conference andequal pay for equal work at the stage of construction between men andwomen is secured in the future. Moreover, an agreement has already been
made such that if a public toilet is installed as a public sanitation facility, thelocation and instruments shall be determined in consideration of women.
Therefore, it falls under the category of Integrated Gender Activity Project.
(9)
Other Important Issues: N/A4.

Targeted Outcomes(1)
Quantitative Effects
1) Outcomes (Operation and Effect Indicators)
Baseline

Target (2030)

Indicator(Actual value in2019)[2 Years afterCompletion]

Amount of wastewater treated (m3/day)*

7,400

91,000

74

100

30-70

20

1,485,000

2,428,000

Percentage of population served in theproject area (population in treatment area/ populations in northern and centralzones) (%)**
Improvement of river water quality.
(BOD：mg/L)***
Population
treated(population
treatment area****) (person)

in*The actual values are sewerage treatment amounts (the amount of seweragethat flows into and is treated in each sewerage treatment plant) as of 2019 at two
existing sewerage treatment plants scheduled to be renovated in the Project.
The estimated sewerage treatment amounts as of 2030 at three seweragetreatment plants that are scheduled to be newly constructed in the Project areadded to the target values.

**The population of the region where the sewerage generated is treated /Population of the whole target area of the project (northern and central zones)
This is not the development ratio of house connection pipes to each household.
***The BOD concentration of river water in central and northern zones that areproject target region.
****The sewerage treatment district refers to the treatment basins of four existing
sewerage treatment plants in 2019 and the whole regions of northern and centralzones in 2030.
(2)
Qualitative Effects:
Sanitary and living environment improvement (reduction of bad odor andmitigation of inundation damage), health condition improvement by the
mitigation of waterborne infectious diseases and raised awareness ofresidents regarding living environment improvement.
(3)Internal Rate of Return
According to the following preconditions, the Project’s Economic Internal
Rate of Return (EIRR) will be 8.3%. Moreover, income to cover sufficiently theProject costs and maintenance/operation costs cannot be expected from theproject, so the Economic Internal Rate of Return (EIRR) is not calculated.
[EIRR]
Cost: Project costs and maintenance/operation costs (both excluding tax)
Benefit: Increase in the sewerage charge due to the household effluent andhuman waste treatment cost reduction effect and new sewerage treatments
Project Life: 40 years
5.

External Factors and Risk Control

(1)
(2)

Preconditions: N/A
External Factors: N/A

6.

Lessons Learned from Past Projects and Application to the Project

Lessons have been learnt from the ex-post assessment results (2005) of theRegional Supply Water and Sewerage Sanitation Environment Development
Project, the yen loan to India, that tell us consideration of charge systems, houseconnection support, operation and maintenance system enhancement, financial
management enhancement, decision-making process rationalization and PR
activity support are important for the smooth implementation of projects andsecuring of sustainability.

This Project supports the institutional enhancement related to the operationand maintenance system and financial management, etc. of implementation
institutions through consulting services concerning institutional capability
enhancement and considers appropriate fee structures and house connection
promotion of sewer pipes, etc. Moreover, PR and enlightenment activities areplanned to be implemented in order to further improve the understanding ofpeople regarding the importance of sewerage treatment facilities and theprevention of solid waste dumping.
7.

Evaluation Results

This Project also agrees with the development issues and policies of India as
well as cooperation policies and analyses of Japan and JICA and is presumed tocontribute to the SDGs Goal 6, “securing of sustainable water resources, water,and sanitation for everyone”. Therefore, the necessity of supporting theimplementation of this Project is high.
8.

Plan for Future Evaluation(1)
Indicators to be Used
As indicated in sections 4. (1) to (3).
(2)
Timing of the Next Evaluation
Two years after the project completion
End