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

Name of the ProjectCountry: India
Project: Madhya Pradesh Rural Water Supply Project
Loan Agreement: March 27, 2020
2.

Background and Necessity of the Project(1)
Current State and Issues of the Water Supply Sector in India
Although the Ministry of Water Resources, Government of India aims to“establishing access to drinking water for the entire population of India” in National
Water Policy formulated in 2012 and has promoted the development of water supply
facilities throughout the country, the development of water resources and constructionof water supply facilities have not caught up with the increase in potable water
demand caused by population increase and economic development. In India, thepercentage of households where water is supplied through pipes is about 70.6% in
urban areas (2011 Census of India), while that percentage in rural areas is only about
30.8% (same census). Thus, construction of water supply facilities lags behind in ruralareas. The Department of Drinking Water and Sanitation, Ministry of Rural
Development therefore started National Rural Drinking Water Program in 2009 andhas promoted the development of water resources and water supply facilities, aiming
to supply safe and sufficient drinking water to all residents in rural areas. In addition,
Three Year Action Agenda 2017/18 to 2019/20, a national development plan
published by NITI Aayog in 2017, also mentions construction of water supply facilities
in rural areas as an especially important issue and emphasizes the necessity of stable
implementation of the above program. Moreover, Modi’s second government,
inaugurated in May 2019, organized departments relating to water resources into thenewly established Ministry of Jal Shakti to unitarily manage water resources and watersupply in India. The Ministry of Jal Shakti reorganized the National Rural Drinking
Water Program into the newly started Jal Jeevan Mission in August of the same year,
aiming to supply potable water to all households in rural areas of India through pipes
by 2024.
The state of Madhya Pradesh, the target area of the Madhya Pradesh Rural Water
Supply Project (hereinafter referred to as the “Project”), has a population of about
73.00 million (2011 Census of India). The percentage of piped water supply is 9.9% inrural areas of the state (same census), which is significantly lower than the 30.8% in
the whole rural areas of India (same census). The state is one of six states wheresuch connection rates are lower than 10%. Although the state currently depends on

groundwater for 98% of resources of drinking water, including that for houseconnection supply, it is considered difficult to supply water stably for a long time
because the lowering of the groundwater level due to over-extraction has been
observed. On top of that, groundwater in 32 of the 51 districts of the state contains
fluoride originating from nature exceeding the WHO standard (1.5 mg/L), salt, nitricacid and others, and cases of fluorosis and other water-related diseases have beenreported. In 2015, 880,000 onset cases of dysentery, cholera and other waterborne
diseases were reported as a result of groundwater contamination by bacteria
originating from feces of domestic animals and others.
In this situation, the urgent issue of the state is to improve the health conditions andliving environment of its residents through the construction of water supply facilities
taking water from a dam or other surface water and the development of water supply
networks. In 2013, the state formulated the Madhya Pradesh Vision 2018, aiming toincrease the number of residents who can receive piped water supply in rural areas,and to gradually shift water resources from groundwater to surface water.
The Project, which aims to develop water supply facilities taking water from surface
water in rural areas of the state, is ranked as an important project in thesedevelopment plans.
(2)
Japan and JICA’s Water Supply Sector Policy and the Positioning of theProject
In Country Assistance Policy for India (March 2016), Japan designates “assistancefor sustainable and inclusive growth” as a priority area and ranks assistance in thefield of water supply as part of the countermeasures against environmental problems
and climate change. In addition, the JICA Country Analysis Paper for India (March2018) states a “program for improving basic social services” in “assistance forsustainable and inclusive growth,” which is one of the priority areas, and plans toprovide support for achieving the sustainability of Indian economic growth, whose
benefits are equitably shared throughout society. The Project is consistent with thesepolicies and analyses.
The necessity to support the implementation of the Project is high because it willcontribute to the SDGs Goal 6 (Ensure availability and sustainable management ofwater and sanitation for all) and Goal 3 (Ensure healthy lives and promote well-beingfor all at all ages).
(3)
Other Donors’ Activities
The World Bank has provided support through, for example, the Punjab Rural
Water Supply and Sanitation Project (approved in 2015, USD 354 million). The AsianDevelopment Bank has implemented the Tamil Nadu Urban Flagship Investment
Program-Tranche 2 (approved in 2019, USD 206 million), which aims to support thedevelopment of water supply and others in urban areas of the state of Tamil Nadu.

The state of Madhya Pradesh has decided to implement a total of nine rural watersupply projects (estimated project cost: about USD 670 million) with support from theNew Development Bank (NDB), and five of the projects have already started. The
target areas of these projects are nine districts mainly located in the central andeastern parts of the state, which are different from, and do not overlap with, theplanned area of the Project.
3.

Project Description(1)
Project Objective
The objective of the Project is to provide sustainable and safe water supply in three
Northwest districts of Madhya Pradesh State by constructing water treatment plants
and related facilities including Functional Household Tap connection to rural
households, thereby contributing to the improvement of health condition and living
environment of residents in the area.
(2)
Project Site / Target Area
Three districts in northwestern Madhya Pradesh (Mandsaur, Neemuch and Ratlam)
Scheme 1 (East) target area: A total of 807 villages of five blocks of Mandsaur
district (118 villages of Malhargarh block and Mandsaur block are included in Scheme
1 (East)) and one block of Ratlam district
Scheme 2 (West) target area: A total of 890 villages of three blocks of Neemuch
district and two blocks of Mandsaur district (257 villages of Malhargarh block andMandsaur block are included in Scheme 2 (West))(3)
Project Componentsa)
Construction of water supply facilities: two intake facilities (intake tower
method, 254,000 m3 per day in total), raw water transmission pipelines (about 32 km
in total), two water treatment plants (245,000 m3 per day in total), 11 pump stations, 14master balancing reservoirs, transmission pipelines (about 2,409 km), 511 distribution
reservoirs, distribution pipelines (about 7,981 km), house connections and othersb)
Capacity development of community and enlightenment activities by NGOs:
The implementation of activities for supporting the formation of Village Water
Sub-Committee (hereinafter referred to as the “VWSC”) and for enhancing theorganization (such as the establishment of a fee collection system and enlightenment
activities for promoting house connection), the implementation of publicity activities,and othersc)
Consulting services: Facilities basic design, bidding assistance, construction
supervision, enhancement of the executing agency’s institutional capability, promotionof implementing environmental management plans and environmental monitoring
programs, and others(4)Estimated Project Cost
65,484 million yen (of which, the ODA Loan amount is 55,474 million yen)
(5)
ScheduleApril 2020 - March 2028 (96 months in total) The Project will be completed whencapacity development of community and enlightenment activities end (March 2028).
(6)
Project Implementation Structure1) Borrower: President of India
2) Guarantor: N/A
3) Executing Agency: MP Jal Nigam Maryadit (hereinafter referred to as“MPJNM”)
4) Operation and Maintenance System: In the Project, the DBO (Design BuildOperation) method is applied to the operation and maintenance of most of thefacilities, including raw water transmission pipelines, water treatment plants,transmission pipelines and distribution networks in each village. The same contractors
implement the design and construction of facilities, and their operation andmaintenance for ten years after they are put into service; and MPJNM supervises thatimplementation.
(7)
Collaboration with Other Schemes and Donors
1) Japan’s Assistance Activity
N/A
Other Donors’ Assistance Activity
N/A(8)
Environmental and Social Consideration / Cross-Sectoral Issues / GenderCategory
1) Environmental and Social Consideration
2)① Category: B② Reason for Categorization
It is considered that the Project is not located in a sensitive area, nor has
sensitive characteristics, nor falls into sensitive sectors under JICA Guidelines
for Environmental and Social Considerations (published in April 2010), and its
potential adverse impacts on the environment are not likely to be significant.
③ Environmental Permit
It is not required to prepare an environmental impact assessment (EIA) reporton the Project under the domestic laws of India.
④ Anti-Pollution Measures
During construction, mitigation measures, such as water sprinkling, leachate
treatment and the restriction of working hours, are planned to be taken in order
to meet the domestic emission criteria and environmental criteria of India interms of air quality, the water quality of water resources, noise and others.

Waste and other matter will be collected, carried and disposed of upon set up
in compliance with domestic procedures.
⑤ Natural Environment
The target area of the Project is located near the Gandhi Sagar Wildlife
Sanctuary, and part of the facilities, such as service reservoirs and distribution
pipelines, and villages to which water is distributed, are located in theEco-sensitive Zone (ESZ) around the sanctuary. Because it is necessary toobtain a permit in order to implement a project in the ESZ under the domestic
laws of India, construction works can be started after obtaining the permit from
the Ministry of Environment, Forest and Climate Change of the Central
Government of India. The permit has already been applied and it is expected tobe obtained around June 2020 because such acquisition usually takes 135 to150 days. No opposite opinion has been given since stakeholder discussions
were held with residents.
⑥ Social Environment
The Project requires a land acquisition of 1,590 m2, and procedures for theacquisition will be implemented in accordance with domestic procedures andJICA Guidelines.
⑦ Other / Monitoring
During construction, MPJNM and consultants monitor air quality, water quality

2)

at intake points, waste, noise, ecosystems, land acquisition and other mattersevery week, month or quarter. For two years after the completion ofconstruction, MPJNM monitors waste and other matters every month.
Cross-Sectoral Issues① Projects related to the countermeasures against climate change
The Project makes it possible to secure water resources stably without being
affected by estimated rainfall change caused by climate change, is expected toreduce the risk of an adverse effect by climate change, and therefore
contributes to adaptation to climate change.
② Countermeasures against infectious diseases, such as AIDS/HIV:
Because many workers are engaged in the Project, the HIV infection risk ispresumed to be high. Thus, in order to prevent HIV infection risk during
construction work, HIV/AIDS prevention provisions are included in bidding
documents, and contractors are required to cooperate in HIV/AIDS prevention
measures for workers. In addition, enlightenment activities to encourage
residents to use groundwater and surface water for different purposes throughNGOs’ activities is planned, in order to prevent water-related diseases andwaterborne diseases which are caused by directly drinking groundwater.

③ Participation-type development
VWSC, which consists of representatives chosen by residents, needs to know
whose houses are connected to water supply and collect water tariff from thosepeople. In the Project, formation of VWSC is supported, training on operation isprovided, and thereby participation of beneficiaries is promoted.
3) Gender Category: ■GI (S) (Gender activity integration project)<Classification Rationale> Because, in each ward (area unit consisting of 200
people on average) of each village located in the target water supply area, one
man and one woman will be chosen as members of the VWSC of the village(that is, half of its members will be women) in order to reflect their opinions in
VWSC management.
(9)

Other Important Issues: N/A4.

Target Outcomes(1)

Quantitative Effects

1)

Outcomes (Operation and Effect Indicators)

Indicator

Baseline*(Actual value in2019)

Target (2030)[2 Years after Project
Completion]―

96,634 (Scheme 1)(East)
92,296 (Scheme 2)(West)―

726 (Scheme 1)(East)801 (Scheme 2)(West)

―

100―

50

Operation Indicators
Water supply amount by theproject (m3/day)Number of VWSCs established

Percentageofthesamples

meeting the drinking waterqualitystandard(Residualchlorine) at a tap of thehousehold (%)
Female ratio of VWSC members(%)
Effect Indicators
NumberconnectionofHousehold

Water tariff collection rate from
VWSCs (%)――

203,441 (Scheme 1)(East)
192,928 (Scheme 2)(West)
85* Since all facilities are newly established, no baseline can be set in the Project.
In the Project, endline survey is planned to be carried out by NGOs about
one-and-a-half years after construction of distribution network is completed(September 2026), and the completion of the survey is defined as the projectcompletion. Construction of household connection will continue after the completion ofdistribution network and until project completion.
2) Impact
As to the number of cases of waterborne diseases in each household, the amountof paid medical expenses, the number of schools having usable toilet facilities, andothers, baseline survey before the commencement of water supply and endline
survey one year after that commencement will be carried out through community
activities by NGOs.
(2)
Qualitative Effects
The improvement of health conditions and living environment of residents throughsafe and stable water supply, and the enhancement of operation and maintenanceability of the executing agency(3)Internal Rate of ReturnAccording to the following preconditions, the Project’s Economic Internal Rate ofReturn (EIRR) will be 13.5%. In this regard, because sufficient income to cover project
costs and operation/maintenance costs cannot be expected from the Project, theFinancial Internal Rate of Return (FIRR) is not calculated.
[EIRR]
Cost: Project costs and operation/maintenance costs (both excluding tax)
Benefit: Willingness to pay, expenses relating to alternative water resources,
which will be reduced by the Project, and the reduction of medical expenses
due to lower rates of water-related diseases and waterborne diseases
Project Life: 35 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
From the results of ex-post evaluation (FY 2012) on the Rural Water Supply Project(I) and (II), an ODA loan project in the Republic of Tunisia, it is considered that,
because enlightenment activities for residents and support for irrigation associations
were provided effectively, and water-supply systems hardly broke down nor stopped
working, the ability of irrigation associations of the project’s target area became higher
than those of other areas of the country, and residents’ satisfaction for water supply
services also became higher, and thereby the water cost recovery rate was high. Also,from the results of ex-post evaluation (FY 2014) on the Rural Water Supply andSanitation Project (V), an ODA loan project in the Republic of the Philippines, it islearned that because there were cases where residents who received training inpreparation for the establishment of water supply associations lost motivation due to adelay in the construction of real facilities, it is desirable to match the timing of training
for residents with that of the construction of facilities.
In the Project, it is planned to raise awareness of the necessity of establishing

VWSC in each village and of house connection supply through activities by NGOs
employed by MPJNM, integrally promote the establishment of a water tariff collection
system and house connection supply and improve the water tariff collection rate in theProject. In addition, cooperation of consulting service and NGOs in supervising theprogress of the Project will be managed so that there will be no large time lag between
preliminary dissemination to residents in each village and the construction schedule.
7.

Evaluation Results

The Project is consistent with the development issues and development policies ofIndia, and with the cooperation policies and analyses of the Government of Japan andJICA, contributes to the improvement of health conditions and living environment ofresidents in the target area through the development of water supply networks in thenine target towns of three districts, and also contributes to the SDGs Goal 6 (Ensureavailability and sustainable management of water and sanitation for all) and Goal 3(Ensure healthy lives and promote well-being for all at all ages). Therefore, thenecessity to support the implementation of the 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