92637 the world bank 24/7 Water Service to 3 Cities in Karnataka IBRD Results Synopsis Starting small, 3 cities in northern Karnataka demonstrated that a well-operated water supply company could deliver affordable, reliable service in an urban area. More than 175,000 individuals are benefit- ing from water supplied directly to their homes, even surprising skeptics with evidence that 20 percent less water is being used than before. What had been a burden to collect, primarily by the women in the household, was not a convenient commodity of life-sustaining importance. Challenge water utility. The high levels (80 percent and improving) of water bill collection express beneficiary satisfaction; this level having risen from virtually no collection before. Con- As in most urban areas of India, water supply in the 3 cities trary to earlier critical arguments, the pilot areas are using of Karnataka was unreliable and limited in coverage. Resi- an average of 20 percent less water than before the piloted dents with house connections (about 50 percent, both legal project. These and other performance indicators are well and illegal) had been use to getting unreliable water for 1 documented. or 2 hours, and with varying frequency of up to once ev- ery 10 days. All residents had to cope with this situation by Having water available at the turn of a tap any time of purchasing costly and unreliable service from water tankers the day or night, has transformed the life of project ben- or by walking up to 200 meters to fetch water from stand eficiaries. Women, in particular, have been freed from the posts. No sense of being a customer who pays for and ex- time-consuming chore of collecting water, now enabling pects reliable water service existed. Results KEY STATS AND RESULTS –– 24/7 hours/days of reliable uninterrupted water For more than 2 years, pilot areas of Belgaum, Hubli- supply in 3 cities of northern Karnataka Dharwad, and Gulbarga in northern Karnataka now re- –– 25,000 households benefiting from the new ceive reliable uninterrupted water supply service 24 hours “customer-approach” system of water supply a day, 7 days a week. About 25,000 households (175,000 –– 100 percent of households with meter connections individuals or 10 percent of 3 cities’ total population) ben- and monthly bills in the beneficiary households of efit from a new sound “customer approach” system that the 3 pilot cities includes 100 percent metered connections, monthly bills –– 20 percent less water used than before project was based on consumption with affordable tariffs, and 24/7 initiated customer service; and that operates at the level of a well-run March 2010 2 24/7 Water Service to 3 Cities in Karnataka them to go out and work to supplement their family in- shown that continuous water supply for 24 hours a day 7 comes. Medical statistics show impressive declines in days a week is indeed achievable in Indian cities. water-borne diseases, and anecdotal evidence indicates increase in the value of beneficiary households. Residents outside the demonstration areas have demanded, through Approach their politicians and other means, the immediate scale up to the entire area of the 3 cities. The initiation of a formal Karnataka Urban Water Sector Improvement Project was impact evaluation study, which will duly quantify such launched in 2005. It was conceived as a pilot—its first phase outcomes, is imminent. demonstrated that continuous, efficient, and sustainable water services could be achieved in India’s urban areas. The Given the project’s success, and being the first of its kind first phase comprised 5 demonstration areas in the north in India, has mobilized the attention of policy makers Karnataka cities of Belgaum, Hubli-Dharwad, and Gulbar- and politicians and government at all levels in India and ga —three of the most water-stressed cities in the region. As is influencing many decisions in how water supply invest- originally envisaged, subsequent phases would extend 24/7 ments are made. In the words of a poor slum dweller: “Ear- service to the entire area of the 3 cities and into other mu- lier I waited for water and could not go to work. Now I go nicipalities in Karnataka. to work and the water is waiting for me.” The project has The demonstration areas were selected together with the State and the cities having in mind political economy, techni- cal feasibility, and inclusion of low-income areas. These pilot areas were ring-fenced from the rest of the cities. Investments in bulk water supply were needed to improve service in the entire cities, as well as help assure supply to the demonstra- tion areas. The project aimed at strengthening decentraliza- tion, by involving the cities with decision power throughout the project design, construction, and operation phases. Through a competitive process, an experienced private op- erator was selected to design, contract, and then operate the system for 2 years. The operator’s obligations included pro- viding100 percent metered connections to residents and providing a billing and commercial system, including 24/7 customer service. A third party technical auditor would help cities ensure compliance. In parallel, an intense social interaction and communica- tions campaign established an enabling environment by addressing stakeholders concerns like metering and volu- metric tariffs and the notion of a private operator, and in general providing continuous information and interaction. Summary Timeline The project was approved by the World Bank Board in April 2004, and was extended to allow full implementation IBRD RESULTS 3 ideas were necessary, helping with tools and techniques, and preparing action plans, all resulting in effective support to the client. The Government of Karnataka, which showed high-level commitment throughout the project, brought together the interests of various groups—politicians, communities, and local and state institutions. Despite several changes of ad- ministrators and political parties during the course of the project, the commitment was unwavering. The Karnataka Urban Infrastructure Finance Corporation (KUIDFC), an agency of the Government of Karnataka, managed the project in partnership with Karnataka Urban (given late start and delays in the construction period). The Water Supply and Drainage Board (KUWSDB), the urban project closes March 31, 2010, and the World Bank is con- local bodies, and local NGOs. A private operator managed sidering a further extension request, mainly to support the the design, construction and operations and maintenance transition period until the full scale-up process is initiated of the water distribution systems in the demonstration (in early 2011), including the consolidation of the water zones of the 3 participating cities, while the KUWSDB or supply institutional, regulatory, and financial framework in the municipalities managed the bulk water systems to as- Urban Karnataka and the design of the scale up to the entire sure bulk supply to the demonstration zones. city areas. IBRD Contribution Good Practices Developed/ Replicated The project total cost is US$51 million and is partially fi- nanced with an IBRD loan of US$39.5 million. The project incorporated the following good practices: ÔÔ A discreet pilot, rather than a big bang approach, Partners helped test the feasibility and learn from experiences and was instrumental in better managing the project The Karnataka Urban Water Sector Improvement Proj- risks and expectations. ect evolved from dialogues with the World Bank. Initially ÔÔ Managing water demand to avoid wastage through proposed by the Government of Karnataka to be a13-mu- volumetric pricing helped to achieve 24/7 customer nicipalities project, the World Bank advised a smaller and service and improve the distribution network. pragmatic alternative to demonstrate feasibility of con- ÔÔ A turn-key, performance-based contract (design, con- tinuous water supply in India; no other example existed struct, operate) with an experience operator, a first of in the country. The project’s design, an exercise among all its kind in India water supply, was critical in achieving partners, including the World Bank, reflected the reali- sound risk allocation and in facilitating the enforce- ties of Indian political economy situation. All through the ment of water service standards. project’s implementation, the Bank team closely assisted in ÔÔ Consultation with all major stakeholders, particularly addressing the technical, social, environmental, and mana- the community with their involvement during the gerial issues. The World Bank followed a strategy of putting design and implementation of the project, and a com- the client in the driver’s seat, while giving background sup- munication campaign has been critical to the project port through field visits, brainstorming when alternatives success. 4 24/7 Water Service to 3 Cities in Karnataka ÔÔ Active state involvement in managing the political in- In parallel, the state has began orienting other investments terests helped in smoothening the process of service and programs related to urban water (financed by Central transformation. Government, Asia Development Bank and other multilat- ÔÔ Focus on the poor with equal level of service (house- erals, and the state), toward achieving sustainable 24/7 level metered connections) and guaranteed lifeline water of water supply service, with a similar approach. Many other supply with affordable tariff has helped gain confidence states are continuously visiting the project, and initiating of the partners. similar investment approaches. The Government of India ÔÔ World Bank’s decentralized management with active is now promoting urban water investments leading to 24/7 support from its field office resulted in effective engage- service levels. ment with the client. learn more Next Steps MULTIMEDIA The Government of Karnataka has decided to scale up the –– Video for 24/7 hour water supply 3-city pilot interventions (Phase-I), and the feasibility stud- http://web.worldbank.org/WBSITE/EXTER- ies are underway. The Government of Karnataka has also NAL/COUNTRIES/SOUTHASIAEXT/0,,con requested the Bank to continue supporting the next phase, tentMDK:22250608~pagePK:146736~piPK:14 both through the preparatory period and with the required 6830~theSitePK:223547,00.html investments, as well as continued assistance in consolidat- –– You tube ing the institutional, financial, and regulatory framework http://www.youtube.com/worldbank#p/ for the urban water supply. search/1/vTekimOShQU