Page 48 In this study, we have prepared a preliminary mapping all slum, chawl, and gamtal areas, as shown in Figure III.4. Our rough estimate of the population of the slums and chawl areas is 1.88 million persons, or 422,000 households<sup>28</sup> . We have estimated the costs of the basic package of providing the neighborhood upgradation services to these slum and challi households, based on experience with the Slum Networking Program (SNP) and updated to reflect today’s market costs. These costs include project management, community organization and a full complement of seven key services in all neighborhoods: in house toilets, in house water connections, sewer connections, road paving, drainage, garbage collection, and street lighting. These costs amount to Rs. 56,000 per household in today’s prices. Table V. 1 summarizes the full costs of the program if executed over a five year period<sup>29</sup> . This table shows a program phased over five years. If the implementation period could be reduced to three years, costs could be reduced by about 11 percent, because of lower cost escalation in the current environment of moderate inflation estimated here for simplicity at 9 percent per annum, a relatively conservative figure. **We note that the current costs for civil works have been estimated on the basis of market prices for labor and building materials, not the standard rates often used for estimation purposes in government, which often cannot be achieved and may lead to underestimates of costs and insufficient budget provisions.** These costs are estimated conservatively, assuming that all slum and challi household would need the full upgradation complement. To the extent that households may have already gotten these services, they may be lower. For example, if as some believe, up to 60 percent of all households already have in house water and toilet facilities, the total cost of the program would decline by about 40 percent to Rs. 1800 crore or $360 million.

# **Table V. 1. Summary of Total Costs of  Upgradation in Ahmedabad**

|**Ahmedabad: Slum and Chawl Upgr**<br>**Summary of Program Cost**<br>**Data**|**ading - Implemen**|**tation Plan**||||
|---|---|---|---|---|---|
|Households to be upgraded|400000|||||
|**Key Assumptions**||||||
|Option=<br>1||Year 1|Year 2<br>Year 3 Year 4|Year 5||
|1 - 5 Year||10|15<br>25<br>25|25||
|2- 3 Year||25|40<br>35|||
|Inflation % p.a.||9|9<br>9<br>9|9||
|**Summary of Cost of SUP Program**||||R|s. in Crores|
|Item|Initiation|Year 1<br>Ye|ar 2<br>Year 3<br>Year 4|Year 5<br>T|otal|
|Households upgraded||40,000|60,000<br>100,000<br>100,000|100,000|400,000|
|Management Structure|0.05|0.78|0.86<br>0.93<br>1.02|1.11|4.75|
|Project Preparation % of Civil Cost|1<br>2.05|3.35|6.09<br>6.63<br>7.23||25.35|
|Project management % of Civil Cost|2.5|5.12|8.38<br>15.22<br>16.59|18.08|63.38|
|Survey, Household Data, Community||31.39|51.33<br>93.24<br>101.63|110.78|388.37|
|Consultation & Design|||||0.00|
|Civil Works||204.92|335.04<br>608.66<br>663.44|723.15|2535.22|
|**Total**|**2.10**|**245.57**|**401.69**<br>**724.69**<br>**789.91**|**853.12**|**3017.08**|

Source: Authors’ calculations NB. Rs. 1 crore is equal to roughly $ 200,000. Rs. 3000 crore is roughly equal to $600 million 28 The average household size is assumed to be 4.7 persons based on recent sample surveys of slums. Many gamtals have good services, or are in the process of upgradation. We have left them out of this initial estimate. If the city takes on a strategy of providing services for all as advocated in this paper, a more detailed survey and assessment would be needed. We understand that CEPT has started work on such a survey for slums.

29 Please see Annex 3 for details of the costing exercise and assumptions.