Lok Sabha Question No. 3941 (UNSTARRED), answered on 2016-08-10
Subject: Externally Aided Projects
Ministry: URBAN DEVELOPMENT
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENT OF INDIA MINISTRY OF URBAN DEVELOPMENT

## LOK SABHA

## UNSTARRED QUESTION NO.3941

## TO BE ANSWERED ON AUGUST 10, 2016

## EXTERNALLY AIDED PROJECTS

## No. 3941   ADV. NARENDRA KESHAV SAWAIKAR:

Will the Minister of URBAN DEVELOPMENT be pleased to state:

- (a) whether foreign aided projects are progressing as per schedule;
- (b) if  so,  the  details  thereof and if not, the reasons therefor along with the action taken / being taken by the Government in this regard;
- (c) the funding pattern of these projects;
- (d) whether external aid is likely to be provided to more projects in other parts of the country; and
- (e) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF URBAN DEVELOPMENT

## (RAO INDERJIT SINGH)

- (a)&(b): The details of foreign aided projects under implementation in urban development sector given at Annexure - I. The reasons for delay, wherever  applicable, are also included in the annexure.
- (c): Funding pattern of these projects are given at Annexure - II.
- (d)&(e): Project proposals are received from various State Governments  and  Central  Line  Ministries,  who  appraise  and prioritize  the  same  and  recommend  it  to  the  Department  of Economic  Affairs  for  posing  the  projects  to  the  concerned external agency. The above mentioned procedure is a continuous process.

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## Annexure-I referred to in reply to Lok Sabha Unstarred Question No.3941 for 10.08.2016 regarding Externally Aided Projects.

Details of ongoing World Bank assisted projects in Urban Sectors implemented as on 30.6.2016

(Amount in US$ million)

| Sl. No          | Name of the project                                        | Participating States / Cities                                                                                       | Donor           | Date of Agreement/ closing   | Loan amount                 | Disburse- ment Upto 30.6.2016       | Reasons for delay                                                                                                                                                                                                                                                                                                                                                                                                                                                | Action Taken                                                                                                              |
|-----------------|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------|------------------------------|-----------------------------|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| 1               | Andhra Pradesh and Telangana Municipal Development Project | Andhra Pradesh/ Telangana                                                                                           | IBRD            | 22.01.2010/ 15.12.2017       | 300                         | 120.88                              | Andhra Pradesh & Telangana Urban Development Project has been delayed due to events related to bifurcation of the erstwhile state Andhra Pradesh The World / ADB projects reviewed time to through structured process. includes periodic Implementation Support Missions conducted the MDBs, term conducted way through projects periodic tripartite portfolio review meetings (TPRMs) / State Reviews the of the DEA delay Nadu and Water are in of project has | Bank assisted are from time a This                                                                                        |
| 2               | Capacity Building of Urban Development Project             | Central Project                                                                                                     | IDA             | 8.12.11/ 30.06.2018          | 45                          | 5.24                                | No                                                                                                                                                                                                                                                                                                                                                                                                                                                               | by                                                                                                                        |
| 3               | Tamil Nadu Sustainable Urban Development Project.          | Tamil Nadu                                                                                                          | IBRD            | 3.6.2015/ 31.3.2022          | 400                         | 21.07                               | The Tamil Sustainable Urban Development Project Karnataka Urban Modernization Project early phase implementation The                                                                                                                                                                                                                                                                                                                                             | mid- reviews half the and                                                                                                 |
| 4               | Karnataka Urban Water Supply Modernisation                 | Karnataka (Hubli- Dharwad)                                                                                          | IBRD            | 24.5.2016/ 30.11.2022        | 100                         | 0.25                                | The Tamil Sustainable Urban Development Project Karnataka Urban Modernization Project early phase implementation The                                                                                                                                                                                                                                                                                                                                             | Project                                                                                                                   |
| Urban Transport | Urban Transport                                            | Urban Transport                                                                                                     | Urban Transport | Urban Transport              | Urban Transport             | Urban Transport                     | with                                                                                                                                                                                                                                                                                                                                                                                                                                                             | with                                                                                                                      |
| 5               | Sustainable Urban Transport Project                        | Madhya Pradesh (Indore)/ Maharashtra (Pimpri- Chinchwad)/ Chhattisgarh (Naya Raipur)/ Karnataka (Hubli- Dharwad and | IBRD & GEF      | 05.02.2010/ 31/3/2018        | Ln. 105.23 GEF Grant: 18.45 | IBRD: 47.91 GEF: 10.29 Total: 58.20 | implementation schedule been restructured in November, 2015 and is schedule to conclude by 31.03.2018.                                                                                                                                                                                                                                                                                                                                                           | participation MDBs, and Project Implementing Agencies. Based on the outcomes of such missions and TPRMs, specific actions |
| 6               | Mumbai Urban Transport Project-2A                          | Mysore) Maharashtra (Mumbai)                                                                                        | IBRD            | 23.07.10/ 31.12.2016         | 344                         | 255.15                              | The MUTP-2A Project is expected to be closed by its scheduled closing date of 31.12.2016                                                                                                                                                                                                                                                                                                                                                                         | plans and timelines are drawn up for timely implementation of the projects.                                               |

## JICA assisted projects

|   S. No | Name of the Project                                 | Reasons for delay                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | Bangalore Water Supply and Sewerage Project (II-2)  | At present, 20 JICA assisted ODA projects are under implementation in urban development sector. The progress of the projects is monitored on a regular basis by holding periodical review meetings at various levels. The progress of such projects is dependent on various factors such as land acquisition, rehabilitation, tendering, appointment and mobilization of Project Management Consultant (PMC), availability of fund, requisite clearances, etc. and it may vary from project to project. These factors are inter-linked to each other and delay in completion of one parameter affects the others. Since these factors make a complex and lengthy framework, hence accessing the delay in mid-way of any project is difficult. Extension for completion has been granted to the following ongoing projects |
|       2 | Bangalore Water Supply& Sewerage Project Phase II-I | At present, 20 JICA assisted ODA projects are under implementation in urban development sector. The progress of the projects is monitored on a regular basis by holding periodical review meetings at various levels. The progress of such projects is dependent on various factors such as land acquisition, rehabilitation, tendering, appointment and mobilization of Project Management Consultant (PMC), availability of fund, requisite clearances, etc. and it may vary from project to project. These factors are inter-linked to each other and delay in completion of one parameter affects the others. Since these factors make a complex and lengthy framework, hence accessing the delay in mid-way of any project is difficult. Extension for completion has been granted to the following ongoing projects |
|       3 | Amritsar Sewerage Project                           | At present, 20 JICA assisted ODA projects are under implementation in urban development sector. The progress of the projects is monitored on a regular basis by holding periodical review meetings at various levels. The progress of such projects is dependent on various factors such as land acquisition, rehabilitation, tendering, appointment and mobilization of Project Management Consultant (PMC), availability of fund, requisite clearances, etc. and it may vary from project to project. These factors are inter-linked to each other and delay in completion of one parameter affects the others. Since these factors make a complex and lengthy framework, hence accessing the delay in mid-way of any project is difficult. Extension for completion has been granted to the following ongoing projects |
|       4 | Orissa Integrated Sanitation Improvement Project    | At present, 20 JICA assisted ODA projects are under implementation in urban development sector. The progress of the projects is monitored on a regular basis by holding periodical review meetings at various levels. The progress of such projects is dependent on various factors such as land acquisition, rehabilitation, tendering, appointment and mobilization of Project Management Consultant (PMC), availability of fund, requisite clearances, etc. and it may vary from project to project. These factors are inter-linked to each other and delay in completion of one parameter affects the others. Since these factors make a complex and lengthy framework, hence accessing the delay in mid-way of any project is difficult. Extension for completion has been granted to the following ongoing projects |
|       5 | Amritsar Sewerage Project                           | At present, 20 JICA assisted ODA projects are under implementation in urban development sector. The progress of the projects is monitored on a regular basis by holding periodical review meetings at various levels. The progress of such projects is dependent on various factors such as land acquisition, rehabilitation, tendering, appointment and mobilization of Project Management Consultant (PMC), availability of fund, requisite clearances, etc. and it may vary from project to project. These factors are inter-linked to each other and delay in completion of one parameter affects the others. Since these factors make a complex and lengthy framework, hence accessing the delay in mid-way of any project is difficult. Extension for completion has been granted to the following ongoing projects |

## Other Projects funding by JICA / ADB

| Ongoing Metro Project (Name of State &Stretch)                                                                                                         | Original schedule of completion      | Expected schedule of completion   | Reasons for Delay                                                                                                                                                             | Major steps taken to mitigate delay                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Bangalore Metro Phase-I (Karnataka, East West Corridor - Baiyappanahalli to Mysore Road Junction and North South Corridor - Nagasandra to Puttenhalli) | December, 2015 (After restructuring) | November, 2016                    | Delay in getting possession of land, shifting of uncharted utilities and delay in progressing tunneling operations due to difficult strata and in thickly populated area.     | (i) Continuous and close monitoring of project activities. (ii) Regular meeting with Police Depts. for required traffic diversions permissions. (iii) Monitoring by High Powered Committee of respective State Government. (iv) Prompt release of funds by stakeholders and advance payment to needy contractors to speed up the work. |
| Chennai Metro Rail Project (Tamil Nadu, Corridor I from Washermanpet to Chennai Airport & Corridor II from Chennal Central to St. Thomas Mount.        | March, 2015                          | December, 2016                    | Due to limited availability of work sites and non- performance of some contractor leading to re- tendering.                                                                   | (i) Continuous and close monitoring of project activities. (ii) Regular meeting with Police Depts. for required traffic diversions permissions. (iii) Monitoring by High Powered Committee of respective State Government. (iv) Prompt release of funds by stakeholders and advance payment to needy contractors to speed up the work. |
| Efficient & Sustainable City Bus Transport Service (ESCBS) through the Project Management Unit (PMU) in Chandigarh, Jaipur, Bhopal, Mira- Bhayandar    | -                                    | -                                 | The project has become functional recently upon signing of the Project Grant Agreement on 31 st May, 2016                                                                     | The project has become functional recently upon signing of the Project Grant Agreement on 31 st May, 2016                                                                                                                                                                                                                              |
| NERUDP - Water Supply project in Agartala (Tripura)                                                                                                    | -                                    | -                                 | Construction of 5 overhead tanks under water supply project in Agartala could not be completed by the contractor. The contract for these balance works was terminated and re- | Construction of 5 overhead tanks under water supply project in Agartala could not be completed by the contractor. The contract for these balance works was terminated and re-                                                                                                                                                          |
| NERUDP - Solid Waste Management at Shillong, Meghalaya                                                                                                 | -                                    | -                                 | Work for development of existing landfill site in Shillong was running very slow. The contract for the balance works was terminated and re- tendered.                         | Work for development of existing landfill site in Shillong was running very slow. The contract for the balance works was terminated and re- tendered.                                                                                                                                                                                  |

## Annexure-II referred to in reply to Lok Sabha Unstarred Question No.3941 for 10.08.2016 regarding Externally Aided Projects.

## Funding Pattern

## 1. World Bank Assisted Projects

As a general rule, for State Sector Projects upto 70% of project cost is funded by the MDBs, and for Central sector projects, 50% of the project cost can be financed by through the MDB loan. The specific funding pattern is stipulated in the respective loan/ financing agreements.

2. JICA Projects Normally, maximum 85% of the project cost is allowed by JICA as ODA loan.

## 3. Bangalore Metro Rail Project (Phase-1) - Funding Pattern

(Rs. in crores)

| Sources                                                                     | Govt. of India   | Govt. of India   |                 | State Govt.     | State Govt.     | Financial Institutions   |
|-----------------------------------------------------------------------------|------------------|------------------|-----------------|-----------------|-----------------|--------------------------|
| Equity                                                                      | 1983.27          | 14.32%           |                 | 1983.27         | 14.32%          |                          |
| Sub debt                                                                    | 1089.94          | 7.88%            |                 | 2969.05         | 21.45%          |                          |
| Senior Debt                                                                 |                  |                  |                 | 130.01          |                 |                          |
| PTA Source 1 -PTA JICA Source 2 -PTA AFD Source 3 -PTA Grant, If any Others |                  |                  |                 |                 |                 | 3689.41 873.29 1126.77   |
| Total                                                                       | 3073.21          |                  |                 | 5082.33         |                 | 5689.47                  |
| Grand Total                                                                 |                  |                  | Rs. 13845.01 Cr | Rs. 13845.01 Cr | Rs. 13845.01 Cr | Rs. 13845.01 Cr          |

## 4. Chennai Metro Rail Project - Funding Pattern

(Rs. in Crore)

*Includes the residual land cost (i.e. Rs.935-Rs.844 = Rs.91 Cr.)

|   Sl. No. | Particulars             | GOI               | GoTN             | Total             |
|-----------|-------------------------|-------------------|------------------|-------------------|
|         1 | Equity                  | 2190 (15.00%)     | 2190* (15.00%)   | 4380.00 (30.00%)  |
|         2 | Subordinate Debt        | 730 (5.0%)        | 844** (5.78%)    | 1574.00 (59.22%)  |
|         3 | Senior Term Debt (JICA) | 8646.00 (59.22%)  | -                | 8646.00 (59.22%)  |
|         4 | Grand Total             | 11556.00 (79.22%) | 3034.00 (20.78%) | 14600.00 (100.0%) |

## 5. Funding pattern of SUTP

| Funding Agency                         | Project Cost of SUTP (Rs. in Crore)   |
|----------------------------------------|---------------------------------------|
| Govt. of India                         | 284.34                                |
| State Govt.                            | 502.14                                |
| Project Implementing Agencies (Cities) | 346.83                                |
| IBRD (Loan through World Bank)         | 629.82*                               |
| GEF (Grant through World Bank & UNDP)  | 135.00*                               |
| Total                                  | 1898.13                               |

6. Funding Pattern of ESCBS
* Varies due to fluctuation in the value of US Dollar.
3. ** GEF (Grant through World Bank)
7. Funding pattern of NERUDP

| Funding Agency                         | Project Cost of ESCBS (Rs. in Crore)   |
|----------------------------------------|----------------------------------------|
| Govt. of India                         | 343.90                                 |
| State Govt.                            | 179.20                                 |
| Project Implementing Agencies (Cities) | 99.40                                  |
| IBRD (Loan through World Bank)         | 0.00                                   |
| GEF (Grant through World Bank & UNDP)  | 50.60*/**                              |
| Total                                  | 673.10                                 |

ADB is providing 70% of project cost as loan to the Govt. of India and rest 30% is being borne by the GoI through budgetary support.

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