Document o f The World Bank FOR OFFICIAL USE ONLY Report No: 5 1144-IN PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND IN THE AMOUNT OF US$20,330,000 TO THE REPUBLIC OF INDIA FOR A SUSTAINABLE URBAN TRANSPORT PROJECT (GEF-SUTP) November 11,2009 Sustainable Development Unit India Country Management Unit South Asia Region This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective {May 3 1,2009)) US$1 = 48 Indian Rupees Crore = 10 M i l l i o n Government o f India FISCAL YEAR April 1 - March 31 World Bank FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS / A2W -. ................... -1 Auto. two-wheeler .. .. . ........ . I *..t.. ...... ~ . Light Motor Vehicles _" . ............................................................ 4 ~ 1 ACA 1 Additional Central Assistance 1 Municipal Corporation o f Hyderabad i j i AFCS : 1 Automatic Fare Collection Svstem ._ . ~ . < _ MD I 4 ! Managing....Director ......... .... ....... " ?r! !4 " ~ .............. I I AFS . I_ I Audited Financial Statements j.- ..... ..........1.....__ MIS ~ i 1 Management Information System ............... .. l." "" I ~ 1 APSRTC 1 Andhra Pradesh State Road I MMTS 1 Hyderabad Multi- Modal Transit i II._.......... ... " 41 Transport Corporation _ . .. . .. - i! I ............................ System 1""" ................................................. ............-............... " 4 1; .............................................. i1 Administrative Staff College o f India . ! ARCS ASCI Audit Report Compliance System ..................................... ! 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FM ? ~ ................................................................................. ..... -.......... ............. _ Financial Management ~ ~ " ~ i PMC ,....................................... ............................................................................................... Manual FMM Financial Management " I PMC * ..................................................... I Foot over-bridges I PMPML Pune Mahanagar Parivahan 1 ~ I FOB I I i. " - 1 " ........................................................ 1 ..... i " ,. j Mahamandal Ltd. ._ ................. : I GAAP ; Governance and Accountability PMU1 Project Management Unit ~ j i i Action Plan ~ ............... ; GDP i.................... i Gross Domestic Product ................................................................................................................................................... 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S I A ......_.........I Social_.. ................................................................... ,.............................. ~ i Impact Assessment ..... ......... ....................... , ........ ~ This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. I t s contents may not be otherwise disclosed without W o r l d Bank authorization. .............................. ................... _ ........................... i IRIDP I Indian Road Infrastructure j SIL I Specific Investment Loan j ij ~ Development ......... ............. ....... ..... !. ............................................. .......... Project ............. ~ ~ ._ ~ " .... I............... ~ ISDS i Integrated Safeguards Data..Sheet ............. ............ ............................................ ......... .... .. I Intelligent..Transport System 1. ......... ........... I sss ~ I ........... .,.... Single Source Selection ................................................... .......................................................................................... { P I Institute o f Transport Development Ij SUTP I Sustainable Urban Transport Project .......................and Policy : .. j ....... .................................................................................................................................................. I i.............. I j ..Interim Unaudited Financial Reports . 1.- .......... ~ " TA I / ( . . IUT ....... .....41 Institute o................ ......_..... ................ ..... ............... ....... ". f Urban Transport . . ._ j JnNURM 1 Jawharlal Nehru National Urban i ! ............. ........ Renewal Mission 1 ............. . ! ... ................... ......... i... " " I ..t .................... ..................... II ~,_,,.I,.. I & ~ ~ ~ ~ KSRTC Karnataka State Road Transport TOR j Terms o f Reference ! Corporation I ........... ~ i i i I 1 KSRTC L... j Kerala State Road Transport ~ . 1i Transportation Research Board ~ ~ .............................. 1 ~ . 1 Corporation ~ j ~ I I.- ........ ..................4.. " .- ~ ~ > I...L..A........ ... ... ....... 1 Lan uisition ._................ .......... ............ .... ............ iI I......................................................... 1 UrbanLocalBodies I " " " uisition Officer ULBs ........ " "" .(.(....... i i ............................................ I Least Cost Selection I1 UT j LED 1 light-emitting diode ' I VKT I i ......... " __ ~.~ .... ....... _ .......... vo ,......................................................... 1 k .......... ~ ............... , " ......... I: voc I Vehicle operating Cost <................................................................................................................................................................................ . ! Vice President: Isabel M. Guerrero Country Director: Roberto Zagha Sector Director: John H. Stein Sector Manager: M i c h e l AudigC Task Leader: K e Fang iv INDIA Sustainable Urban Transport Project CONTENTS Page . I STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A . Country and Sector Issues................................................................................................... 1 B. Rationale for Bank Involvement ......................................................................................... 4 C. Higher Level Objectives to Which The Project Contributes .............................................. 5 I1 . PROJECT DESCRIPTION. ................................................................................................ 6 A . Lending Instrument. Financing Arrangements and Other Approaches .............................. 6 B. Project Objective and Key Indicators ................................................................................. 6 C. Project Components and Costs ........................................................................................... 7 D. Lessons Learned and Reflected in The Project Design ...................................................... 8 E. Alternatives Considered and Reasons for Rejection ......................................................... 10 I11 . IMPLEMENTATION .................................................................................................... 11 A. Partnership Arrangements (if applicable) ......................................................................... 11 B. Institutional and Implementation Arrangements .............................................................. 12 C. Monitoring and Evaluation o f Outcomes/Results............................................................. 14 D. Sustainability and Replicability ........................................................................................ 14 E. Critical Risks and Possible Controversial Aspects ........................................................... 16 F. LoanlCreditJGrant Conditions and Covenants.................................................................. 17 IV . APPRAISAL SUMMARY ............................................................................................. 18 A. Economic and Financial Analyses .................................................................................... 18 B. Technical ........................................................................................................................... 18 C. Fiduciary and Governance ................................................................................................ 19 D. Social................................................................................................................................. 22 E. Environment...................................................................................................................... 23 F. Safeguard policies ............................................................................................................. 24 G. Policy Exceptions and Readiness...................................................................................... 24 V Annex 1 Country and Sector o r Program Background : ......................................................... 25 Annex 2: M a j o r Related Projects Financed by the B a n k and/or other Agencies ................. 43 Annex 3: Results Framework and Monitoring ........................................................................ 45 Annex 4: Detailed Project Description...................................................................................... 50 Appendix 1to Annex 4: UNDP supported National L e v e l Capacity Development ..............52 Appendix 2 to Annex 4: Detailed description o f city projects under Component 2 .............54 Annex 5: Project Costs ............................................................................................................... 76 Annex 6: Implementation Arrangements. ................................................................................ 77 Annex 7: Financial Management and Disbursement Arrangements ..................................... 82 Annex 8: Procurement Arrangements ...................................................................................... 90 Annex 9: Economic Analysis .................................................................................................... 100 Annex 10: Safeguard Policy Issues .......................................................................................... 101 Annex 11: Project Preparation and Supervision ................................................................... 110 Annex 12: Documents in the Project File ............................................................................... 111 Annex 13: Statement o f Loans and Credits ............................................................................ 113 Annex 14: Country at a Glance ............................................................................................... 117 Annex 15: Governance and Accountability Assessment and Action Plan........................... 119 Annex 16: Supervision Strategy .............................................................................................. 132 Annex 17: Incremental Cost Analysis o f GEF SUTP ............................................................ 138 Maps IBRD 35771, 36766, 36768, 36770, and 36772 .............................................................. 151 vi INDIA SUSTAINABLE URBAN TRANSPORT PROJECT PROJECT APPRAISAL DOCUMENT SOUTH ASIA SASDT Date: November 11,2009 Team Leader: Ke Fang Country Director: Roberto Zagha Sectors: General transportation sector (100%) Sector ManagedDirector: Michel Audige Themes: Climate change (50%); Municipal Project ID: P100589 governance and institution building (25%); Focal Area: Climate change Pollution management and environmental Environmental Assessment: Partial health (25%) Assessment Lending Instrument: Grant Project Financing Data [ ] Loan [ ] Credit [XI Grant [ 3 Guarantee [ 3 Other: For Loans/Credits/Others: Total Bank financing (USsm.): 20.33 ProDosed terms: Source Local Foreign Total BORROWERRECIPIENT 223.1 0 223.1 International Bank for Reconstruction and 0 105.2 105.2 Development * Global Environment Facility (GEF) 0 20.3 20.3 Total : 223.1 174.6 348.7 hmulativel 2.00 1 6.00 I 13.00 I 18-00 I 20.3 I 20.3 I Project implementation period: Start: February 1,2010 End: June 30,2014 Expected effectiveness date: March 15,201 0 Expected closing date: November 30,20 14 vii Does the project depart f r o m the C A S in content o r other significant respects? [ ]Yes [XINO Re$ PAD I.C. Does the project require any exceptions from Bank policies? Re$ PAD I K G. [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [XINO I s approval for any policy exception sought f r o m the Board? [ ]Yes [XINO Does the project include any critical risks rated "substantial" or "high"? Re$ PAD III.E. The project includes risks rated "substantial" because some TA activities funded by the GEF grant will support city level investments [XIYes [ ] N o which are considered substantially risky in the areas o f fiduciary controls and governance/cormption. Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ] N o Ref: PAD I K G . I . Project development objective (PDO) Re$ PAD II.C., Teclznical Annex 3 The project's development objective (PDO) i s t o promote environmentally sustainable urban transpoi-t in India and to improve the usage o f environment-friendly transport modes through demonstration projects in selected cities. Global Environment Objective (GEO) Re$ PAD ILC., Technical Annex 3 Same as the PDO. Project description [one-sentence summary o each component] Re$ PAD II.D., Technical f Annex 4. The project includes the following components: Component 1: Providing technical assistance to the M o U D to improve the national, state and local capacity to implement the capacity building elements and the public- and non-motorized- transport- related aspects o f National Urban Transport Policy. Component 2: Supporting design and implementation o f demonstration projects in six participating cities (in five states), which will create models o f sustainable transport solutions for other Indian cities to replicate. The six cities, selected by GO1 through a competitive selection process, include Pune and Pimpri-Chinchwad (in Maharashtra), Naya Raipur (in Chhattisgarh), Jalandhar (in Punjab), Indore (in Madhya Pradesh), and Mysore (in Karnataka). The proposed GEF grant would finance technical assistance activities under the Component 1 and Component 2. The recipient and participating statedcities would finance other project activities (including civil works) by utilizing JnNURM grant and other sources o f funds (including an IBRD loan being processed under a parallel loan project for three cities: Pune, Pimpri-Chinwad, and Naya Raipur). Which safeguard policies are triggered, if any? Re$ PAD M E , Technical Annex 10 Environmental Assessment (OP/BP 4.0 l), Physical Cultural Resources (OP/BP 4.1 l), and Involuntary Resettlement (OP/BP 4.12), because some TA activities funded by the GEF grant are linked with city level investments, some o f which may trigger the above safeguard policies. ... Vlll Significant, non-standard conditions, if any, for: Re$ PAD III. F. Board presentation: Nil Loadcredit effectiveness: Nil Covenants applicable to project implementation: Re$ PAD III. F. In addition to the standard loan covenants, the following loan covenants should be incorporated into the legal agreements: M o U D shall maintain a dedicated, multi-disciplinary team o f suitably qualified personnel o f the national Project Management Unit, with resources sufficient to carry out (i) the technical and fiduciary supervisions, monitoring and evaluation, and public communication activities required to achieve the Project Development Objective o f the Project; and (ii) technical, financial management, procurement management, and the monitoring and evaluation activities required to implement the GEF-funded technical assistance activities under Component 1, in a timely and effective manner. M o U D shall ensure that each participating State Government will maintain a dedicated, multi-disciplinary team o f suitably qualified personnel in the Project Implementation Unit within the designated Project Implementing Agency (PIA), with resources sufficient to carry out the technical, financial management, procurement management, and monitoring and evaluation activities required to implement the GEF-funded technical assistance activities under Component 2 in a timely and effective manner. M o U D shall ensure that all participating State Government will transfer the project funds, which are released from GoI, to the designated PIAs within reasonable time. M o U D shall take all necessary measures, or cause others to take such measures, to ensure implementation o f SUTP is in accordance with the provisions o f the Operations Manual, which include, among others, Financial Management Manual, Procurement Guidance, Governance and Accountability Action Plan (GAAP), Environmental and Social Management Framework (ESMF). The Operations Manual may be amended from time to time with the prior approval o f M o U D and the Bank. ix I. STRATEGIC CONTEXT AND RATIONALE A. Country and Sector Issues 1. Rapid Motorization. India's continuing urbanization and surging economic growth over the last decade has led to an inevitable rise in ownership and use o f motorized vehicles across cities and towns, characterized in particular b y reliance o n two-wheelers. The average two wheeler and car ownership levels in metropolitan cities have been more than doubled, and motorized per capita trip rate has also increased 60 percent. This motorization process, already well-underway, may be exacerbated by the introduction o f very low-priced cars into the vehicle market, as well as the ongoing expansion o f urban and industrialized areas. Recent studies show that in many Indian cities where walking, cycling, and use o f buses have traditionally dominated, the share o f the use o f two-wheelers, three-wheelers (intermediate public transport, or IPT), and, more recently, private cars, has been increasing dramatically. 2. Urban Transport Problems. These changes in travel patterns are placing heavy pressures on the available transport infrastructure and on the institutions in charge o f road construction and maintenance, traffic management, road safety, and public transport services. The most visible. consequences include greater traffic congestion, increased air pollution, and more traffic accidents. But such changes are also accompanied by a number o f less visible, but equally costly, consequences, such as increased travel time, reduced predictability o f travel time (particularly for the poor), more hazards and impedances for pedestrians (again, disproportionately affecting the poor), and increased greenhouse gas emissions. These deleterious consequences o f rapid and poorly managed motorization have substantial knock-on effects for the economy o f cities in India, including increased transport costs for doing business, reduced accessibility to work, education, health facilities, and other social services in urban areas, and increased damage to health and quality o f l i f e in urban areas. Given that cities contribute about 60 percent o f Indian national economic growth and more than 90 percent o f government revenues, these problems represent substantial impedances to the robustness o f the Indian economy. While they impact all segments o f Indian society, these consequences have a particular impact on the urban poor, since they are the worst affected and have the fewest alternatives to avoid these negative impacts. 3. Impact on Climate Change. The increased mode share by private vehicles and widely spread congestion in city centers are also increasing the Green House Gas (GHG) emissions. While GHG emissions from India's urban transport sector currently are relatively l o w (less than ten percent o f India total), the urban transport sector i s becoming the fastest growing sector in terms o f consumption o f fossil fuel. I t i s projected that if the current urbanization and motorization trends continue, GHG emissions from urban transport could be eight to ten times higher than the current level by 2030. This drastic increase could negate much o f the effort being made in other sectors in India and in the rest o f the world to reduce GHG emissions. 4. Urban Transport Institutions. Institutional arrangements for urban transport in India currently are s t i l l highly fragmented, and sometimes overlapping. Since Urban Transport i s intertwined with Urban Development, which i s State responsibility as defined in India's Constitution, Urban Transportation i s primarily a State subject. However, the national government i s s t i l l deeply involved in urban transport, as all critical laws impacting urban transport are administered by the national government. I t also collects the majority o f tax 1 revenues and, therefore, provides financial support to large public investments. At the city level, while the 74'h Amendment to India Constitution includes urban transport as a subject for decentralization, most o f municipal governments s t i l l lack adequate capacity to play a substantial role in urban transport development. 5. Involvement o f national, state and city governments in urban transport may be both necessary and unavoidable, as demonstrated in many other countries. Yet the key issue lies in the fact that there are no effective mechanisms for coordinating the national, state and municipal actors. In addition, systematic procedures (e;g., requirements on public consultation, alternative analysis, and social and environmental analysis) and technical guidelines for planning, preparing, appraising, and monitoring and evaluating urban transport investments, especially large scale projects, have not been well established at either the national or state level. Investment decisions are often made in an ad-hoc manner b y individual agencies without going through a well defined and thorough planning process. 6. National Urban Transport Policy 2006. The Ministry o f Urban Development (MoUD), which i s the nodal Ministry for planning and coordination o f Urban Transport matters, has recognized the commonality o f many o f the transport problems that urban areas are facing, and has responded by promulgating a National Urban Transport Policy (NUTP) in April 2006. The policy puts forward a vision for urban transport in India that focuses on people, not vehicles, emphasizes livability, and facilitates urban growth and form orientated toward local geography, rather than transport infrastructure per se (see details in Annex 1). While the promulgation o f the N U T P i s an important and commendable development for urban transport development in India, in practice, given the Federal system in India, i t s impact would be limited unless fully embraced and effectively implemented at the local level. 7. National Urban Renewal Mission. The MoUD's leverage to see that the N U T P i s so embraced and implemented, however, i s limited. The principal mechanism for M o U D to incentivize local acceptance o f the N U T P i s through the Jawaharlal N e h r u National Urban Renewal Mission (JnNURM), a national program launched in November 2005 which provides funds to pre-selected cities to cover 35 percent-80 percent o f their urban infrastructure development costs. The funding comes with a number o f requirements, including that the states in which the recipient cities are located co-finance a certain proportion o f the investment, and that cities undertake certain reforms, develop a City Development Plan if they do not already have one, and identify the financing for the remainder o f the investment (using either city, private sector, or external resources such as Donor funds). 8. Needs for Capacity Development. Under the influence o f the N U T P and JnNURM initiatives, urban transport has received considerable attention since 2006, and i s no longer the least important issue in urban governance. However, it has been recognized that limited institutional and human capacity in urban transport at both national and local levels i s a major constraint. At the national level, the Institute o f Urban Transport (IUT) which had been set up in 1996 but was languishing for lack o f funds, was suddenly flush with work and had to quickly hire more people to deliver o n the jobs awarded to it from the M o U D and other government agencies. At the state and city level, implementation o f JnNURM urban transport projects has been slow, and in several cities, poorly designed and implemented. If anything, these projects were actually antithetical to sustainable urban transport and land development. 2 9. With the Support o f the UNDP, the Bank, ADB and other donors, M o U D has carried out several studies/surveys and public consultations to assess urban transport capacity needs. A number o f institutional and human resource barriers have been identified within the urban transport sector that inhibit effective implementation o f N U T P and other urban transport initiatives: Inadequate capacity in many state and municipal institutions that are poorly organized and staffed to address urban transport issues in a comprehensive and collaborative fashion; Weakness in local knowledge base o f sustainable urban transport and absence of contextual and problem-solving oriented research support to practitioners in urban transport planning, operations and management at all levels o f government; Lack o f formal, two way communication mechanisms for the users and providers o f non- motorized and public transport and the general public to provide inpuvfeedback to urban transport decision-making and learn about issues and progress; Absence o f high-quality projects and locally generated good practices that can demonstrate the benefits o f sustainable urban transport and help catalyze/cultivate change in the way urban transport i s planned, operated and managed. Clearly, capacity development i s extremely important. Though ad-hoc seminars, workshops, conferences and study visits have been organized by the M o U D and other agencies as well as donors since 2006, integrated and comprehensive institutional and capacity development programs needs to be developed and implemented at the national, state and local government levels. These are necessary to build sufficient institutional and human capacity to successfully address already severe and rapidly growing urban transport challenges. 11. India-GEF- World Bank-UNDP Sustainable Urban Transport Program With support from GEF, the Bank and UNDP, M o U D has been working with a number o f states and cities since early 2006 to develop an India-GEF- World Bank-UNDP Sustainable Urban Transport Program (hereinafter referred as SUTP Program). The aim was to strengthen the national and local governments' capacity in urban transport planning and management in a more integrated and comprehensive manner. The SUTP Program essentially consists o f two parts (See Figure 1 and Table 1): , Part I to be supported b y UNDP (with a GEF grant), would include a number o f national level capacity building initiatives, which will be executed by UNDP'; and 0 Part 11, to be supported by the Bank (with a GEF grant and an IBRD loan), would include a series o f demonstration capacity building and investment projects in selected states and cities, which will be implemented by M o U D and participating states and cities. 12. UNDP and the Bank will support the two respective parts o f the Program simultaneously and coordinate with each other. As agreed with GEF, GO1 and U N D P at GEF work program stage, the Bank will be the leading GEF agency for this Program and play the role o f quality assurance for entire program. This implementation support arrangement positions the two GEF ' Descriptionof the UNDP-supportedactivities i s summarized in Appendix 1 of Annex 2. 3 agencies based on their comparative advantages and complements with each other to ensure better results. Figure 1: The Structure of India-GEF-World Bank-UNDP Sustainable Urban Transport Program (The SUTP Program) , ______ ____- India-GEF-WB-UNDP ! SUTPProgram Ii I Component 2: Demonstration Assistance Projects , . 1 . -__-- _ _ _- I I------L- - .- Investments in ..- I . __, ' I T,___-.IT Program Cost (%million) GEF WB India' Total Part l ( U N D P supported) 4.05' 4.50 8.55 Part 2(World Bank supported) 18.453 105.2 223.1 346.8 Total Base Cost 22.5 105.2 227.6 355.3 GEF Agency Fee4 2.3 2.3 TOTAL 24.8 105.2 227.6 357.6 B. Rationale for Bank Involvement 13. The Bank i s ideally positioned and uniquely suited to help Go1 tackle the above institutional and capacity barriers for the implementation o f the NUTP. The Bank has extensive global experience with the development o f institutional mechanisms and policies for sustainable urban transport plans, pro-public transport solutions, particularly development o f Bus Rapid Transit (BRT) systems, integration o f non-motorized modes into transport systems, and demand management approaches. The Bank also has extensive experience in India in preparing and implementing investment projects, institutional reforms, technical assistance and capacity 4 building programs at both national and state/city levels. In particular, the Bank's involvement in the SUTP Program can provide: (a) A means for bringing global knowledge to help M o U D implement policy and technical measures for sustainable urban transport development as recommended in the NUTP; (b) A comprehensive perspective in integrating technical, economic, social, environmental, and financial analysis in urban transport planning and project design and ensuring that the proposed investment projects for JnNURh4 are sound investment proposals and they also fit within the states and cities fiscal constraints; (c) Extensive knowledge and experience in implementation; operation, and maintenance o f infrastructure investments, including those relatively new types o f investments, such as Bus Rapid Transit, cycle lanes, Intelligent Transport Systems (ITS), etc.; (d) Opportunities to learn good practices from, and disseminate to, a wide network o f partners in the world; (e) Convening powers to help facilitate the exchange o f information among key stakeholders at both national and local levels. 14. The Bank has a long history o f working with Indian national and local authorities in the urban transport sector, although the Bank's current India transport portfolio concentrates on roads (mostly non-urban roads). In the recent years, Go1 and several statedcities have requested the Bank to provide technical and financial assistance in this sector, and broader policy dialogue and a strong partnership between India and the Bank are expected to be established in the sector in the foreseeable future. C. Higher Level Objectives to Which The Project Contributes 15. The overarching objective o f the Bank's Country Strategy for India (FY09-12) i s to help India achieve the long-term vision encapsulated in the Eleventh Plan o f a country free o f poverty and exclusion. To this effect, the Bank will assist India in dealing with the following inter-related challenges: (a) Sustaining high growth; (b) Making growth inclusive; (c) increasing the effectiveness o f service delivery; and (d) Ensuring development i s sustainable. 16. The proposed GEF funded Sustainable Urban Transport Project (hereinafter referred as the Project or GEF SUTP) will contribute to addressing all these challenges, particularly the latter three. Improving the implementation o f measures to improve public and non-motorized transport will enhance the accessibility o f the urban poor, while capacity building, TA and other aspects o f the project will assist local governments' ability to effectively manage public transport service delivery over the long term. In addition, helping to ensure more effective implementation o f the N U T P - and creating a program around which i t s successes can be given prominence and visibility in India in general - will help facilitate a shift toward sustainable urban transport policies and programs at the state and local level in India. 5 17. The Project i s also consistent with the Bank's Transport Business Strategy for 2008- 2012, which promotes "safe, clean, and affordable" transport for development. It directly follows three (out o f total five) strategic directions set up in the Strategy: (i) create the conditions for increased support for transport investments and governance; (ii) increase engagement in the link urban transport subsector, and (iii) transport and climate change. 18. The proposed GEF financing for the Project i s consistent with the overall objectives o f the climate change focus area, and advances the strategic priorities for the GEF-IV replenishment, particularly that o f promoting market transformation o f sustainable innovative systems for urban transport. 11. PROJECT DESCRIPTION A. Lending Instrument, Financing Arrangements and Other Approaches 19. A GEF grant, following the structure o f a Specific Investment Lending (SIL), i s proposed to support the implementation o f the GEF SUTP. In parallel, an IBRD Loan i s also proposed (and being processed separately) to complement the GEF grant and finance city investment projects in three (out o f total six) participating cities under Component 2. As the project design involves multiple cities, certain characteristics o f a programmatic approach were also adopted, Le., phased implementation and fund allocation arrangements. B. Project Objective and Key Indicators 20. Project Development Objective and Global Environmental Objective. The Project's development objective (PDO) and global environment objective (GEO) are essentially the same: to promote environmentally sustainable urban transport nationally and to improve the usage of environment-friendly transport modes through demonstration projects in selected cities.' The project aims to achieve this objective by supporting the implementation o f India National Urban Transport Policy (NUTP), particularly those aspects o f the policy that emphasize: (a) Priority to the use o f public transport; (b) Priority to non-motorized transport; and (c) Capacity building for developing and implementing sustainable transport systems (at both national and local levels). 2 1. Performance Monitoring Indicators. The key overall indicators to measure performance in achieving the project development and global environmental objectives are: 2 The GEO and PDO are the same because urban transport development that i s environmentally sustainable simultaneously contributes, to both the emerging pillars being highlighted in the current India Country Strategy - achieving rapid, inclusive growth and ensuring sustainable development - and the strategic priorities for the GEF-IV period o f facilitating market transformation for sustainable transport. The estimated GHG emissions reductions from the project range from 128,280 tons of COz equivalent (direct effect only) to 18 million tons (including indirect effect). See detailed discussion in Annex 17: incremental cost analysis. 6 a The number o f cities that develop an identifiable urban transport planning process (i.e., managed b y professional units o f government, following certain procedures and guidance, and involving various level o f analytical work) increases. a Mode shares in Pune, Pimpri-Chinchwad, and Naya Raipur become more sustainable by project end. a A significant amount o f co-benefits are achieved as forecast transport C 0 2 emissions in the demonstration cities are lower than their "business-as-usual" or "without-project" forecasts. 22. To help monitoring progress in working toward the intended project results, a set o f intermediate indicators are also proposed for both the national components and city components o f the project (See details in Annex 3: Results Framework.) C. Project Components and Costs 23. The Project includes the following components (see details in Annex 4): Component 1: Capacity Development Assistance for Urban Transport: This Component will provide technical assistance to the Ministry o f Urban Development to improve national, state and local capacity to implement the capacity building elements and the public- and non-motorized-transport- related aspects o f National Urban Transport Policy. Such assistance includes: (i) development o f implementation strategies and plans to implement key urban transport reforms envisioned in the National Urban Transport Policy; (ii)piloting model urban transport databases; (iii)assisting cities in the , identification and preparation o f potential environmentally friendly urban transport investments; and (iv) developing a nationalAoca1 governments cooperative research program on sustainable urban transport, aiming at finding local solutions for planning, operation, and management problems encountered by local practitioners. Component 2: City Demonstration Projects. This Component will catalyze high profile demonstration projects in six selected cities in five participating states that will create models o f sustainable transport solutions for other Indian cities to replicate. These projects focus on four themes: (i) Public transport development; (ii) Non-motorized transport development; (iii) Pilot Intelligent Transport System (ITS); and (iv) Integrated land use and transport planning and Transit-Oriented Development. The six cities, selected by GO1 through a competitive selection process, include Pune and Pimpri- Chinchwad (in Maharashtra), Jalandhar (in Punjab), Naya Raipur (in Chhattisgarh) Indore (in Madhya Pradesh), and Mysore (in K a ~ x a t a k a ) . ~ Go1 originally selected ten cities through a public consultation and competitive process for participating in this GEF project. However, only the above six cities have completed required design work by Appraisal. Ahmedabad (Gujarat) withdrew i t s project proposal as it started i t s project by its own funds. Other three cities (Hyderabad in Andhra Pradesh, Ajmer in Rajasthan, and Thiruvananthapuram in Kerala) are still in the process o f preparing their project design. Their projects may be financed by GEF under a follow up project or by other source o f funds in the future. 7 24. The proposed GEF grant would finance technical assistance activities in Component 1 and Component 2.4 GoI, participating states and cities will finance the Project (including civil works under the Component 2) by utilizing JnNURM grant and other sources o f funds (including a parallel World Bank loan being processed under a separate project for three cities: Pune, Pimpri- Chinchwad and Naya Raipur). The costs and financing arrangements for all components are summarized below (details are provided in Annex 5): Table 2: The Costs o f the S U T P Project Project Cost ($ million)* Implem. GO1 State MOUD PIA GEF IBRD Total Phase TA Loan** A . l Pimpri-Chinchwad Phase 1 35.5 17.8 0.9 47.4 1.9 43.1 147.2 A.2 Pune Phase 2 0.0 0.0 2.9 25.8 1.9 47.3 78.0 B.l Indore Phase 1 5.9 0.6 0.2 1.4 1.9 0.0 10.0 B.2 Mysore Phase 1 2.1 0.0 0.2 0.6 1.9 0.0 4.8 B.3 Jalandhar Phase 2 00 490 40 4.5 19 0.0 59.5 . , ~- -2:o I " PMU Proidit Mgmt Cost I 2 - %' Total Financing Requested 53.2 68.1 8.4 93.3 20.33 105.23 348.7 * Physical and price contingencies are all included. ** The IBRD loan for 3 Group A cities o f Component 2 i s being processed separately under a parallel loan project. D. Lessons Learned and Reflected in T h e Project Design 25. Projects focusing solely on capacity building without addressing further implementation are often found ineffective in achieving and sustaining project impacts. O n the other side, capacity building projects, such as the India Road Infrastructure Development TA Project (IRIDP), which link capacity building directly with preparation and implementation of investments, have proven to be able to motivate the implementing agencies and sustain their commitment to implementing the required institutional reforms, and also to ensure learning-by- doing opportunity for them to practice and sustain their strengthened capacity. Inspired by the IRIDP, this project includes support to both capacity development activities and preparation and f implementation o small or median size demonstration projects, aiming to enhance the capacity development impact o the project with limited GEF and the World Bankfinancing. f 26. Political commitment is best obtained by supporting the client's own strategies and programs. The Bank's experience in India and elsewhere shows that there i s significant value in relying on country's own strategies and programs to establish and maintain political and . institutional commitment. In this project, the demonstration cities and projects were selected 4 The GEF grant w i l l also be used t o finance the financial gap in procurement o f small size goods (pilot Intelligent Transport System applications) in t w o project cities, i.e., Indore and Mysore, as these two cities do not receive World Bank loan support. 8 primarily by M o U D through an extensive consultative and competitive selection process. The Bank reviewed and commented on the selection process and i s appraising the content o f the proposals, but it i s the Steering Committee chaired by the Secretary o Ministry o Urban f f Development that has obtained commitments f r o m the participating states and cities to preparation and implementation o the environmentally friendly investments which are eligible f for G E F co-financing. This commitment i s likely more meaningful and stronger than an equivalent direct commitment to the Bank. 27. Multi-city projects are considered being both risky and rewarding. O n one hand, when a project covers a large number o f cities, supervision tends to be resource-intensive and often the Bank i s not able to assign the required level o f supervision resources. O n the other hand, if successful, the project will generate broad benefits across a large size o f areas, which i s more cost-effective. This approach may be particularly appropriate when the objective o f the project i s to promote demonstration impacts in a very large and populous country, such as India, in a sub- national sector where both Go1 and the Bank have proposed strategy to broaden engagement with numerous local governments. The challenge i s to design the project in such way that the project complexity can be managed within the capacity o f the institutions involved in project implementation and proper risk mitigation measures are incorporated to the project design to minimize the potential risks. 28. Multi-city projects Jinanced by the Bank are generally performing well. There i s a significant number o f past and ongoing multi-city projects in the urban transport sector including as Russia Urban,Transport Project (14 cities), Colombia Integrated Mass Transit Systems Project (six cities), Liaoning Urban Transport Project in China (three cities), Liaoning Urban Transport Project I1 in China (six cities), China GEF Urban Transport Project (14 cities plus one province), and Argentina GEF Transport and Air Quality Project (ten cities in four metropolitan areas). All o f them have performed satisfactorily (See Annex 2 for details) 29. Lessons from the previous and on-going multi-city projects have revealed the following critical factors which would help reduce risks o f such projects: (a) Strong government commitment. I t i s important that the central government and participating local governments demonstrate strong commitment that they are prepared to make any necessary effort to ensure a successful implementation. Such government commitment to SUTP has been demonstrated through the project preparation process, f including preparation and submission o project proposals, selection o cities, participation f in city workshops, establishment o P M U and PIUS, allocation and approval o adequate f f f project budgets, preparing and signing o the commitment letters and Participation f Agreements. Finally, endorsement o the Operations Manual, which contains Project Planning and Appraisal Process, ESMF, GAAP, FM Manual, Procurement Guidance, is required prior to Negotiations, and compliance with the Operations Manual w i l l be one covenant o the legal agreements. f (6) Strengthened national level project management. National government plays a critical role in coordinating project implementation activities and ensuring the project qualities and fiduciary controls. A strong P M U at the national level i s required to help the government to fulfill i t s responsibility for the project. To help strengthen the PMU, the Bank has agreed 9 with G O I that a project management consultant w i l l be engaged by MoUD to support the P M U and strengthen its function in overseeing, supervising, and monitoring the various project preparation and implementation activities carried out by different local agencies. (c) I nformation sharing and broad public communication during project design and implementation. In particular for multi-statehity projects, dissemination and discussion o f the experiences and insights among stakeholders are o f much benefit to participating statedcities, as well as other stateshties. A series o consultation workshops have been held f in Delhi and other cities during the project preparation stage. During the project implementation, a GEF grant executed by UNDP will support nation-wide dissemination and f promotion o good practices. I n addition, a NGO forum initiated at Pune and a city-to-city peering program funded by AusAid Trust F u n 4 being developed for the six participating cities w i l l help share their experiences and learn from each other. (d) Bank supervision led by staff from local office. Multi-city projects require more intensive supervision, especially when there i s a wide variation in the capacity o f participating cities. Supervising the project with staff based in the country office reduces supervision costs, allows more frequent field visits (including unscheduled technical audits), and facilitates more smooth and effective communication between the Bank and the cities. Several locally based staflhas been involved in project preparation and they w i l l continue to play a crucial role in project supervision. (See details in Annex 17: Supervision Strategy.) (e) Phased project implementation. To make the limited project management resources more efficient and effective, most multi-city projects have some phasing arrangements for inclusion o f cities in a phased manner based o n appropriate conditions/criteria, such as political and financial commitment, project readiness, implementation structures, etc. A two- phase approach has been introduced to the project design. The phase 1 cities are those where detailed project designs have been completed before appraisal and they w i l l be allocated project funds once the project is approved by the World Bank. The phase 2 cities will not be allocated funds until their project designs are completed and appraised by the Bank. Performance-based criteria/process for excluding non-performing statedcities and re- allocating funds from them to other statedcities may be developed and agreed during the project implementation. fl Involvement o professional NGOs. Previous Bank experience has shown that f meaningful involvement o f NGOs in the project preparation and implementation i s critical to the success o f the project. Several international professional NGOs have been identi$ed, such as ITDP, EMBARQ and ICE which are active in the transport sector in India. These NGOs w i l l play a technical advisor's role in project cities to help ensure the technical quality o the project implementation. Formal agreements have been made between the f NGOs and three project cities, namely, Pune, Pimpri-Chinchwad and Indore. E. Alternatives Considered and Reasons for Rejection 30. The original project proposal included both national level capacity building activities and city level demonstration projects. Meanwhile M o U D was working with U N D P separately to prepare a much smaller size GEF project, which also includes both national and city level 10 activities. The intention was to implement the UNDP-supported small size project first and then scale up the project impact through the Bank-supported large size project. The concept was rejected b y GEF which was in favor o f one integrated program to enhance coordination between GEF agencies in project preparation and implementation and project impacts. After extensive consultation and joint-preparation efforts, the joint India-GEF-World Bank-UNDP SUTP Program was prepared which focuses UNDP support on national level capacity building and Bank support on city level capacity building and demonstration projects. The final design o f the SUTP Program and Bank supported GEF SUTP project maximize the comparative advantage o f the Bank and UNDP, and would provide a model for broader coordination among government agencies and donors in urban transport capacity building in the future. 31. A Center Sector Scheme was considered for Component 2, Le., M o U D would be the direct recipient o f GEF and World Bank funds for Component 2 and the M o U D would be responsible for financial management, procurement, safeguard management and other responsibilities for implementation o f city demonstration projects. This proposal was not supported by the Planning Commission and DEA, as they believe that the city level capacity development objectives would more likely be achieved, if states and cities have the ownership o f those demonstration projects through preparing and implementing the projects by themselves. 32. As the project involves a national program (SUTP Program) and multiple cities, an Adaptable Program Lending (APL) approach was considered but rejected during the project preparation phase. Main reasons for rejection include: (i) participating cities and their projects all had already been identified; (ii) GEF had unsatisfactory experience with A P L projects in the the past and therefore did not recommend A P L approach for this project; (iii) possibility o f a the follow-on GEF grant to continue supporting the SUTP Program i s not confirmed yet, because i t relies on the replenishment o f GEF funds which would only take place after 201 1. Alternatively, although this GEF project adopts a Special Investment Lending (SIL) approach, some A P L features, such as the phasing arrangements for project implementation and funds allocation have been incorporated into the project design. 111. IMPLEMENTATION A. Partnership Arrangements (if applicable) 33. GoI-GEF-Bank-UNDP Partnership. As discussed in paragraph 11 and 12, it was agreed that the Bank and UNDP will work together to assist Go1 in preparation and implementation o f the SUTP Program, and the Bank as the leading GEF Agency will also play a leading role in technical quality assurance for the entire program. Through GoI's GEF Empowerment Committee led by MoEF, and the SUTP Steering Committee led by MoUD, effective coordination has been established among Go1 departments, Bank and UNDP during project preparation. This has ensured development o f one integrated program. Joint-supervision and mechanisms to enhance communication among all parties involved have been proposed to further strengthen coordination during project implementation in order to achieve high quality outcome. 34. National Partnership. After selecting demonstration cities, M o U D has sought commitment letters from all participating states which agree to fully support implementation o f 11 the city demonstration projects in accordance with the requirements o f the SUTP. Prior to project appraisal, M o U D has signed a SUTP Participation Agreement with each participating state and each designated project implementing agency (PIA). Besides basic requirements for the project, the Participation Agreement includes commitment to five major reforms required by the JnNURM and the National Urban Transport Policy.' 35. NGO Participation. Coordination i s ongoing with the ITDP, E M B A R Q and ICE, three They international good-practices NGOs that are also active in sustainable transport in Indiaa6 will provide technical advisory for project cities. A N G O forum has been initiated in Pune, through which NGOs can participate in discussion on urban transport problems as well as plans/projects being carried out in the city. A pilot Citizen Report Card i s also being implemented in Pune. Similar approaches can be developed in other cities during project implementation through city-to-city peering program and other information sharing among the participating cites. 36. Capacity Building Coordination. To make the planned national urban transport capacity development efforts more effective, M o U D and the Bank have initiated discussions with a number o f other multi-lateral and unilateral development organizations and NGOs to better coordinate the broad variety o f activities underway and/or being planned. In addition to ITDP, Embarq and ICE mentioned above, other organizations include the ADB and CAI-'Asia, GTZ S from Germany, U Federal Transit Administration, and Energy Foundation. The SUTP provides a platform on which the M o U D can organize and leverage the activities o f different international and local stakeholders, enhance coordination, and achieve better results. B. Institutional and Implementation Arrangements 1. Overall Project Management. The SUTP Steering Committee, consisting o f the Secretary o f M o U D (chairperson) and senior officers from MoUD, DEA, MoEF and other relevant Ministries, will guide and oversee the implementation o f the SUTP through the national Project Management Unit (PMU) set up at the MoUD. The P M U i s headed by a National Project Director, who i s a senior officer from M o U D and also the Member Secretary o f the Steering Committee. The P M U comprises a full time SUTP Project Manager, specialists and a Project Management Consultant (PMC) team. The P M U will be responsible for advisory and technical assistance to the participating cities and state implementing agencies, coordination o f the entire program at national level, technical and financial audits, and overall monitoring and evaluation. (Detailed implementation arrangements are described in Annex 6.) The five major urban transport reforms include: constitution of Unified Metropolitan Transport Authority, formulation and implementation o f a parking policy, setting up o f dedicated funds for urban transport, formulation o f advertisement policy and preparation of Comprehensive Mobility Plan. , ITDP i s active in the development o f a BRT system in Ahmedabad and promotion o f public transport and non- motorized transport across Indian cities. EMBARQ i s working with local authorities to address transport energy efficiency and air quality in Pune and Indore. ICE i s working with Delhi and Pune in non-motorized transport, and it is also going to work in Jalandhar on pedestrian safety issues. A l l three international NGOs are also supporting in implementation o f the NUTP. 12 2. Implementation o Component 1. The M o U D with support o f the P M U will be also f responsible for implementation o f all activities under the Component 1, including procurement, financial management, as well as monitoring and evaluation. 3. Implementation o Component 2. The participating state governments, through their f designated Implementing Agencies (PIAs), will be responsible for implementation o f their city demonstration projects. A Project Implementation Unit (PIU) led b y a full-time project manager has been established at each PIA to manage the day-to-day project implementation activities, including procurement, financial management, social and environmental management, as well as monitoring and evaluation. 4. Phased Implementation. To ensure quality o f the preparation and implementation o f city demonstration projects, a two-phase approach has been introduced into the project design. Participating cities are grouped into Phase 1 cities and Phase 2 cities, based on the implementation readiness o f the participating cities. Phase 2 cities will not be allocated funds until their project designs are completed and appraised by the Bank. Performance-based criteria for excluding non-performing statedcities and re-allocating funds to other statedcities will be agreed by Negotiations and included to Project Agreements. 5. Operations Manual. The P M U has developed a draft Operations Manual (OM) for SUTP which contains detailed requirements and procedure for project preparation and implementation, including FM, procurement, safeguards requirements, information disclosure, and governance and accountability actions. The draft O M has been consulted and agreed with all PIAs.' 6. Information Disclosure. The Operations Manual includes a Disclosure Policy for the SUTP, which requires MoUD, PMU/IUT and all implementing agencies at state level to promptly disclose the project related information as per India's Right to Information Act (RTIA) and the World Bank requirements on information disclosure. The Disclosure Policy for the SUTP specifies the project documents to be disclosed, the media, the timing and frequency for disclosure, and the responsible agencies and officers. 7. Capacity Building for PMU and PIU Staff: The P M U will develop an annual national and local SUTP training plan, based on specific needs o f the project and other activities in which the respective institutions and individual staff will be involved. In the beginning o f the project period, the project will focus on topics covered in the operations manual such as procurement, financial and information disclosure. As the project proceeds, the emphasis will move more toward the policy and technical aspects o f public transport and non-motorized transport planning, public consultation and communications and social and environmental management. 8. Supervision. A supervision strategy has been developed for SUTP (see Annex 16). The national P M U will conduct regular supervision and audits to ensure compliance with the Operations Manual, in addition to routine supervisions by each P I U and general oversight by the concerned state departments. Non-compliance may result in MoUD's objection to endorse the funds request submitted by the respective PIU. The Bank regular supervision will focus on fiduciary control o f project funds, technical quality o f the city demonstration projects, and 7 The Operations Manual has been consulted with a l l PIAs and approved by MoUD before Negotiations. 13 technical assistance and capacity building for M o U D and participating stateshties. The Bank supervision will be strengthened by additional technical missions and random site visitslaudits to be led by locally based staff and technical audits by independent NGOs or experts. C. Monitoring and Evaluation o f Outcomes/Results 37. Monitoring and Quality Assurance. The P M U and PIUs will regularly collect the data required for monitoring and evaluation o f outputs, outcomes and results o f the Project (see Annex 3: Results Framework.) Each city project has an M&E Component (with a specific budget allocation) which will be carried out either by PIAs own staff or b y consultants, following the M&E framework for each city project. P M U will also monitor the milestones o f each city project at the national level. Technical audits will be carried out by P M U to ensure the implementation o f city projects meets certain quality requirements. The PMC, which i s supporting the PMU, will have a technical team that will focus on monitoring and evaluation as one of their primary tasks. N G O technical advisory as well as community based monitoring will also be introduced to some project cities to strengthen the M&E o f the project (see details in Annex 6). As per GEF procedures, the Bank will submit a PIR (Project Implementation Report) annually after the first year o f project implementation with inputs from P M U and PIUs. D. Sustainability and Replicability 3 8. Sustainability The project design addresses key concerns about the sustainability o f India's urban transport systems raised in earlier Bank analytical work. The Capacity Building Component will address some fundamental institutional and capacity weaknesses in the urban transport sector which have prevented effective implementation o f national urban transport policy, specifically: 0 Supporting preparation and implementation o f key institutional reforms in pilot cities as envisaged in the national urban transport policy will significantly influence the manner in which states and cities address urban transport issues, which would allow more sustainable urban transport planning and management in the long term. Helping cities develop a uniform transport database will enable cities to undertake more thorough urban transport planning (including monitoring and evaluation), which will facilitate more effective communication among stakeholders and better decision making in the future. Developing a national program focusing on local and problem-solving research activities will enhance the knowledge development in the country in the field o f sustainable urban transport development, which in turn will have significant impact on long-term capacity building. There i s a strong interest from the national government on this program, and if the initiative succeeds under the GEF project, they would continue it at IUT and expand i t into a national program. 3 9. The transparent and competitive selection process for demonstration projects provides the basis for wide demonstration impact. The GEF and World Bank "certification" to these projects helps address a key technical risk: in the absence o f the GEF "certification", many o f these projects would have been planned and implemented without adequate technical input, review or oversight and thus would have produced poor results which may even have adverse impact on 14 local and global environment. The project cities have already demonstrated a high level o f political will that illustrates their commitment to implementation. The head o f all Project Implementing Agencies (e.g., Municipal Commissioners, Mayors, or Managing Directors) and their representatives have attended several project preparation workshops organized b y P M U and met with the Bank mission as part o f a review prior to project appraisal to express their commitment to project implementation. This official expression o f commitment, a result o f the selection mechanism (that identified cities with an interest and track record in promoting public transport) and process (the ownership and oversight provided by the national level agencies) is a clear indication that there i s high likelihood that this project will produce impacts. Some cities have requested Bank support in implementation o f demonstration projects, which further strengthens the impact o f the project. 40. The parallel national capacity building initiatives to be implemented simultaneously with UNDP support will further enhance the sustainability o f the Project, by strengthening the national urban transport institutions, providing technical guidance on urban transport planning, delivering training programs and tools for government officials involved in urban transport, and promoting and disseminating international and local good practices. 4 1. Replicability. Replicability and demonstration effects are fundamental to the manner in which innovations are mainstreamed in India. The Steering Committee structured the pilot project selection process accordingly. Specifically, to enhance the demonstrative nature o f the city projects, proposals were solicited from cities throughout the county. In addition, all cities were requested in their proposals to reflect upon and identify the particular demonstration potential o f their proposed projects. Their responses were a key component o f the selection criteria. The final outcome i s a set o f cities that mirror the m i x o f size, economic, and regional characteristics found throughout Indian cities, and a set o f projects whose demonstrative effects have been incorporated into their very conceptualization. The six selected cities with different size are distributed in different regions: one in east India (Chhattisgarh), one in central India (Madhya Pradesh), one in the south (Karnataka), one in the north (Punjab) and two in the west (Maharashtra). Economically, three cities are in advanced states (Maharashtra and Punjab), one i s in a middle-income state (Karnataka), and the remaining two are in low-income states (Chhattisgarh and Madhya Pradesh). 42. More and more Indian cities have started learning from successful ideas and initiatives elsewhere all over the world, and cities that reflect successful demonstrations (and their leaders) see an increase in profile, prestige and stature, not only in India but also outside India. Indeed, the SUTP cities made clear, in some cases explicitly, that the title o f `GEF-demonstration projects' was as important to them as the GEF co-financing and the technical expertise that the Bank brings to the city. The Project design reinforces this inherent proclivity towards replicability. Dissemination activities to be implemented with U N D P support under the SUTP Program include a series o f workshops where the demonstration cities experience will be shared, discussed, analyzed and evaluated. Additionally, the Bank i s supporting development o f a City- to-City Peering Program to help the SUTP cities to share experience with each other and with other cities. 15 Risk Rating Potential Risks Proposed Mitigation Measures with ~~~ Mitigation From Outputs to Objective Institutional and capacity ' - Maintain high-level policy dialogue with MoUD to sustain its strong L development achieved under commitment and provide assistance to help scale up implementation o f the project will not be NUTP and JnNURM. sustained - Work closely with UNDP team to further enhance the dissemination program by utilizing other resources. - Carefully design the preparation and implementation o f key institutional reforms in selected states and cities. - Support preparation o f new sustainable urban transport investment projects to help utilization of capacity developed under the project. - Coordinate with other donors to increase investments on sustainable urban transport projects. Demonstration projects will - Strengthen the project selection and preparation process. L not be replicated in other - Continue supporting implementationo f the National Urban Transport cities and states without GEF Policy and JnNURM, both of which provide policy and financing grant support incentive for replication o f SUTP projects in other cities. - Support knowledge sharing among cities through development o f local practice-oriented research program a city-to-city peering program - Facilitate financing support to replication o f demonstration projects from the Bank and through other financial institutiordmechanisms From Components to Outputs Social and environmental - Avoid or minimize social and environmental impacts in the early L safeguard risk: adverse project identification and preparation stage. impacts on environment and - Develop a uniformed ESMF at early design stage to guide social and affected people and environment assessment and development o f management plans. community - Emphasize importance o f public consultation during project preparation - Integrate the findings of environmental assessments and public consultations in engineering design. Technical Risk: delay in - Maintain the oversight role of MoUD and Steering Committee in M project implementation and project preparation and implementation poor quality, due to - Facilitate Statedcities to sign the commitment letters and participation involvements o f multiple agreements with GoI. cities and states whose - Strengthen PMU at the national level with additional staffing and capacity varies and whose resource, including hiring a Project Management Consultant (PMC) commitments to project may that will play a vital role in supervision and M&E, overseeing FM, change. procurement and safeguards, and evaluation o f city level implementation activities. - Adopt phasing approach to implementation, giving more time for phase 2 cities to prepare their projects and also helping the PMU and Bank focus supervision efforts on fewer cities at early stage o f implementation. - Adopt a uniformed Operations Manual for all city projects to ensure consistency in project preparation and implementation - Strengthen Bank supervision through utilization o f more locally-based staff and more frequent site visits (including unscheduled audits). - Involve international professional NGOs to complement supervision efforts by the Bank. - Intensify TA and capacity building support to participating stateskities 16 Potential Risks - Proposed Mitigation Measures I RiskRating with I Mitigation Fiduciary risk: some cities - Mitigation measures have been designed based on detailed S have inadequate FM systems FMFrocurement assessment and will be agreed with MoUD and and limited World Bank participating states and cities (See details in Annex 7 and 8) procurement experience Governance and corruption - Include the anti-corruptionclause in participation agreements. S risk: many cities are still - Develop a GAAP with MoUD and cities, and include it to the weak in information Operations Manual. disclosure, complaints - Strengthen the PMU at national level, which would carry out handling, and construction independent audits to ensure PIAs comply with fiduciary requirements. quality control and - Obtain agreement with Go1 that Go1 would stop releasing funds or monitoring. relocate funds if the SUTP steering committee/PMU finds non- compliance in implementation o f ParticipationAgreements and Operations Manual in any statekity. - Provide regular training and capacity building to project staff in the areas o f project implementation, F M procurement, and safeguards. Overall Risk Rating S ' 43. The standard loan effectiveness conditions will apply. 44. In addition to the standard loan covenants, the following loan covenants should be incorporated into the legal agreements: 0 M o U D shall maintain a dedicated, multi-disciplinary team o f suitably qualified personnel o f the national Project Management Unit, with resources sufficient to carry out (i) the technical and fiduciary supervisions, monitoring and evaluation, and public communication activities required to achieve the Project Development Objective o f the Project; and (ii) technical, financial management, procurement management, and the monitoring and evaluation activities required to implement the GEF-funded technical assistance activities under Component 1, in a timely and effective manner. M o U D shall ensure that each participating State Government will maintain a dedicated, multi-disciplinary team o f suitably qualified personnel in the Project Implementation Unit within the designated Project Implementing Agency (PIA), with resources sufficient to carry out the technical, financial management, procurement management, and monitoring and evaluation activities required to implement the GEF-funded technical assistance activities under Component 2 in a timely and effective manner. M o U D shall ensure that all participating State Governments will transfer the project funds, which are released from GoI, to the designated PIAs within a reasonable time. M o U D shall take all necessary measures, or cause others to take such measures, to ensure implementation o f SUTP i s in accordance with the provisions o f the Operations Manual, which include, among others, Financial Management Manual, Procurement Guidance, Governance and Accountability Action Plan (GAAP), Environmental and Social Management Framework (ESMF). The Operations Manual may be amended from time to time with the prior approval o f M o U D and the Bank. 17 IV. APPRAISAL SUMMARY A. Economic and Financial Analyses 45. The proposed GEF grant will finance a series o f technical assistance and capacity building activities. Economic and financial analyses are not required for such activities. In the demonstration cities, some TA activities funded by the GEF grant will support development or enhancement o f Bus Rapid Transit corridors, ITS applications to public transport, improvement in non-motorized transport, integrated public transport and non-motorized transport development, and development o f plans for transit-oriented development. While the Bank's experience in India and elsewhere suggests that these types o f investments have high economic returns with desirable distributional benefits, economic and financial analysis will be incorporated into the planning process for these investment activities. B. Technical 46. Capacity building .activities under Component 1 were identified by M o U D and the Bank during preparatiw o f city projects under Component 2, in coordination with U N D P which assisted M o U D in preparing national capacity building initiatives under the umbrella program - SUTP Program. These activities were intended to respond directly to some critical needs from states and cities, such as weak capacity for implementing the institutional reforms required by the National Urban Transport Policy, lack o f accountable urban transportation data to support planning and decision making, and lack o f local research support and tailored TA to help solve problems in preparing and implementing new and innovative transport solutions, etc. The component design also devises an appropriate, multi-pronged strategy to address the shortcomings in an incremental and systematic manner to ensure long t e r m sustainability. 47. The demonstration cities and city projects were selected by the Steering Committee, with the need to maximize the demonstration impact. Proposals were solicited from cities based o n selection and appraisal criteria discussed with (and reviewed by) the Bank (see Annex 4). These criteria reflect an appropriate balance o f the probability o f success in terms o f local government commitment and public support, and the demonstration potential in terms o f replicability and innovation. Each investment project as a whole i s also requested to meet GEF eligibility. The city projects included in the SUTP reflect the city's investment priorities identified through the participatory City Development Planning process required by the JnNURM and further extensive technical discussions between the cities and PMU, facilitated by MoUD's domestic consultants and Bank specialists. 48. The Bank's review focused on ensuring that all project proposals were consistent with World Bank, Go1 as well as GEF SP five objectives, priorities, and eligibilities, adequacy o f data collection and analysis, soundness and appropriateness o f technical design, implementable within the political and economic context o f the particular city, incremental and innovative with respect to GEF requirements, adequacy in poverty focus, and reflective o f Indian and international best practices with regard to stakeholder participation and consultation, institutional coordination and integration, and monitoring and evaluation. During the review process, the Bank engaged international experts, working together with the consultant commissioned by M o U D and experts from the professional NGOs such as I T D P and EMBARQ, to help cities rationalize the technical 18 design o f each city project to maximize global and local benefits to be generated from the project. 49. The assessment concludes that the project clearly i s consistent with WB, Go1 and GEF objectives, with appropriate technical design and public participation and consultation, able to be implemented, incremental, and innovative, and reflects national and international best practices. The project planning and design also reflects a significant advance in the dialogue and discussion on the urban transport sector in India. C. Fiduciary and Governance 50. This section consists o f three subsections focusing on: C.1 Procurement, C.2 Financial Management, and C.3 Governance and Accountability. C.l Procurement 5 1. Component 1 and Component 2. All procurement financed b y the proposed GEF grant would be carried out as per the World Bank Procurement Guidelines, May 2004 revised October 2006, and Consulting services shall be procured following Guidelines Selection and Employment o f Consultants by World Bank Borrowers, May 2004, revised October 2006. The GEF grant will finance technical assistance activities (mainly consultancy services) and Goods procurement related to Intelligent Transport Systems in Mysore and Indore. N o civil works will be financed by the GEF. 52. P M U and every PIA o f the Component 2 i s required to prepare a Procurement Plan for the first 18 months for activities to be implemented by them, which will include estimated cost o f each package, the method o f procurementhelection, the prior review requirements and other bidding details. Phase 1 Cities have developed the procurement plan which has been agreed with the Bank. Goods procurement in Indore i s envisaged in one package for Automatic Fare Collection System. Goods procurement for Mysore i s envisaged in one package for implementation o f ITS. Presently no goods procurement i s envisaged in GEF -SUTP for Pimpri- Chinchwad. Procurement for consulting services for Indore, Mysore and Pimpri-Chinchwad envisages technical assistance and capacity building activities. The Procurement Plan by Phase 2 cities would be developed and agreed with the Bank during implementation. Component 1 o f the project i s aimed at providing Technical Assistance to the cities participating in demonstration projects. This Component 1 i s to be implemented by PMU set up by MoUD. The exact nature o f assistance that may be required by the cities, and consequently procurements that will be required will be known only after start o f the project. Therefore, procurement plan for Component 1 will also be developed during the implementation. A procurement capacity assessment was conducted for all PIAs and PMU. PIAs do not have any experience o f World Bank funded project in the past and therefore were not conversant with the Bank's procurement requirements. The procurement assessment identified weaknesses and areas for improvement for both PIAs and PMU. The risks and mitigation measures as detailed in Annex-8 and are briefly summarized below. The residual procurement risk i s assessed as substantial. a) The P M U will play an oversight role to ensure that procurement i s implemented efficiently, economically and in a transparent manner following the agreed arrangements. PMU will also 19 provide assistance to the PIAs to help them understand and carry out procurement properly. To fulfill these roles o f oversight and assistance, PMU i s in the process o f selection o f Project Management Consultant which will also have g an experienced procurement expert, as a member o f the team. As PIAs have no experience in Bank funded project and the procurement i s Substantial, prior review thresholds have been kept low which would be reassessed during the project implementation, and modifications made if found justified by the Bank. In addition, i t has been agreed that contracts above equivalent o f a defined value but below the agreed prior review thresholds will be prior reviewed by PMU, which otherwise would be subject to post review by the Bank. Each PIA has assigned one dedicated procurement officer. These officers have attended the training on World Bank's procurement guidelines at ASCINIFM before project implementation starts.' The Bank team has also provided hands-on training workshops at the PMU and PIU during project preparation. I t will continue to provide such training through the early stage o f the project implementation. An independent grievance redressing mechanism i s required to be developed by project effectiveness as per the Governance and Accountability Action Plan (GAAP). Disclosure o f procurement information, including publishing results o f the bidding, debriefing the unsuccessful bidders, etc, i s required to be conducted .promptly and in accordance with the agreed Disclosure Policy for the project. C.2 Financial Management 53. Financial Management (FM) Capacity. The F M capacity assessment finds that the F M capacity varies widely among project implementing agencies (PIAs). Hence a common system for accounting and financial reporting i s required for the project. While the main implementation responsibility i s that o f the PIAs and o f the concerned state governments, PMU would also extend oversight over the project to ensure compliance with the Operations Manual which includes detailed FM requirements as well as F M arrangements for the project. The F M capacity assessment concludes that subject to the minimum procedures and oversight required in the Annex 7, F M arrangements are considered satisfactory to support the GEF grant. 54. Funds Flow Arrangements. Each PIA (for Component 2) and PMU (for Component 1) will submit an Interim Unaudited Financial Report (IUFR) each quarter in respect o f its project for reporting purpose. The Bank would provide an initial advance o f $2 million towards the Designated Account. The Bank will disburse funds every six months based on the IUFRs submitted by MoUD which will be based on actual expenditure. They will be accompanied by detailed Statements o f Sources and Uses o f Funds which will report actual expenditures and a l l other statements outlined in the Interim Unaudited Financial Reports (IUFRs). The Interim Unaudited Financial Reports (IUFRs) will form the claim statements for the purposes o f the Bank which would be submitted to the Bank on a six monthly basis for disbursement purposes. *MoUD has funded procurement officers from all six PIAs to attend the Bank procurement training in ASCI in Hyderabad in February 2009. In addition, three half-day or full-day procurement training workshops have been conducted by the Bank team for the IAs during project preparation missions. 20 55. The PIAs are expected to monitor their budget requirements against expenditures and make necessary changes required, particularly where there are surplus funds available from previous quarters. The Bank will adjust disallowances and ineligible expenditures annually after comparing actual expenditures certified by Statutory Auditors with annual claimed amounts in the IUFRs. The Bank will monitor the amounts requisitioned in the IUFRs against the total amount expected to be reimbursed under GEF. 56. The P I A would maintain separate bank accounts and accounting records for the project based on which such reports would be generated and submitted to the bank. 57. Financial Audits. External audit o f M o U D and project accounts o f PIAs will be conducted by the C&AG of India through i t s offices in the respective states in accordance with TORS agreed with the Bank. Audit reports for all PIAs and P M U will be monitored separately in ARCS (Audit report Compliance System). Quarterly Internal audit will be conducted at all PIAs and P M U by an Internal Audit firm, which will be appointed by M o U D . The Steering Committee o f the project will appoint an Audit Committee at MoUD, which will review the findings o f internal audit on a quarterly basis. C.3 Governance and Accountability 5 8. Governance and Accountability Assessment and Action Plan. Governance assessment was carried out for all six participating cities to assess the existing mechanisms o f governance and accountability in those cities, focusing on information disclosure, complaints handling, and construction quality control and monitoring (See details in Annex 15). Based o n the assessment, a Governance and Accountability Action Plan (GAAP) has been developed for the project, which includes actions to address both common weaknesses in all cities and unique needs for improvement in specific cities. The GAAP has been consulted and agreed upon with all state PIAs and will be included to the Operations Manual and implemented during the project implementation. 59. Information Disclosure. A common weakness in all cities i s that the information disclosure mechanisms are inadequate to meet the requirements o f India's RTIA. The G A A P includes a disclosure policy, which details the documents to be disclosed, the frequency o f their disclosure and the media to be used for such disclosure. 60. Complaint Handling Mechanism. Most cities have an online complaint handling mechanism and a corresponding tracking mechanism to track the status o f complaints. However, there are s t i l l various deficiencies. I t i s agreed that each city will adjust i t s complaint handling systems to enable bidders to submit complaints, if necessary, about the bidding process and for the public to air i t s grievances about projects, during and after project implementation. Cities will also post the contact information o f officers on citizen information boards for people to address their complaints. 61. Anti-Corruption. The GAAP requires all PIAs to carry out their demonstration projects funded under the SUTP in accordance with the Bank's Anti-Corruption Guidelines and any other requirements relating to governance and anti-corruption that are agreed between India and the 21 Bank. Same requirements were also included in the SUTP Participation Agreement signed between M o U D and the participating state governments and PIAs prior to appraisal. D. Social 62. Assessment o Social Impacts. The proposed GEF grant will only support TA activities f which are not expected to have direct adverse social impacts. However some o f these activities are supporting physical investments under Component 2 o f SUTP. Social assessment was therefore carried out for the entire project (including those investments) to ensure adverse impacts are either avoid or, if unavoidable, minimized and mitigated. 63. Land Acquisition and Resettlement. Among all city projects, only public transport, non- motorized transport, and ITS (intelligent transport system) projects will involve civil works and therefore there will be instances o f private land acquisition and/or government land transfer resulting in negative social impacts. As per the current design, most o f the works will be carried out on vacant land or within the existing land already occupied by the government, and therefore no significant social impacts, e.g., large scale resettlement activities, are envisaged. Encroachments and squatters have been found in several project sites; and special attention and proper mitigation are required. Project interventions in Pimpri-Chinchwad will affect approximately 1,200 households. 64. Cultural Properties. All necessary and adequate care has been taken to minimize impact on cultural properties (which includes cultural sites and remains, places o f worship including temples, mosques, churches and shrines, etc., graveyards, monuments, etc). If unavoidable, the affected cultural property will be relocated in consultation with the community prior to the civil works. 65. Scheduled Tribeshdigenous Peoples. As all city projects are being implemented in the urban areas, there would be minimal impact on the Scheduled Tribes who are equivalent to indigenous people as per OP 4.10. Appropriate Tribal Development Plans will be prepared as required, if any impacts are found on tribes. 66. Management o Social Risk. An environmental and social management framework f (ESMF) along with the consultation framework has been developed to provide overall guidance for addressing adverse social impacts at each stage o f project cycle (refer to Annex 10). In accordance with the ESMF, a social screening has been carried out for all city projects, and a qualitative and quantitative survey will be carried out to assess the adverse social impact, wherever social screening has identified adverse impacts. A general entitlement matrix i s included in the ESMF and will be adapted to meet the specific requirements o f the project in compliance with the Bank's OP 4.12 and R&R policies o f Go1 and the respective state governments. Resettlement Action Plan (RAP) will be prepared if land acquisition i s unavoidable to assist the affected persons or families. 67. Community Consultation Framework (CCF). A CCF has been developed as part o f the ESMF to guide P M U and PIUs to ensure participation o f all key stakeholders at each stage o f project planning and implementation, which i s not limited to sharing and disclosing project 22 information, but interaction and communication between the project implementing agencies and the communities which may benefit from the project or be affected by the project. E. Environment 68. Environment Category. The proposed GEF grant will only finance technical assistance (TA) activities. However some o f these TA activities will support civil works under Component 2 o f SUTP. The environmental category for this GEF project i s Category "B", based on those physical investments to be supported under SUTP. 69. Potential Environmental Impacts. City-specific project interventions have been designed to promote use o f public transport, non-motorized transport and pedestrian - friendly infrastructure. All these are targeted to reduce vehicular GHG emissions that would have continuedhncreased in the absence o f project activities. This should simultaneously result in the reduction in the emissions o f other air pollutants resulting in health co-benefits locally. In most cases, the interventions will have limited adverse impacts, except during construction stage, when they need to be properly managed. Key construction phase impacts could include removal o f damage to roadside trees, and other amenities, increased localized pollution due to construction activities, and safety o f road-users and workers. 70. Environmental Assessment Approach. An Environmental and Social Management Framework (ESMF) has been developed for the project to harmonize the approach to development o f mitigation plans in all the participating cities. The ESMF was developed o n the basis o f scope o f the proposed projects, City Development Plans/ City Mobility Plans, information about the project sites, consultations with city officials and other stakeholders, and review o f international experience o f implementation o f projects in similar urban settings. The ESMF provides appropriate mitigatiodenhancement measures which can be used to address common potential adverse impacts o f their projects. In a few cities such as Pimpri, where more significant impacts such as higher noise level, increased tree cutting, and pollution are anticipated, a prioritized approach o f avoidance, mitigation and compensation, followed b y enhancement, wherever possible, has been adopted. The ESMF also provides guidance for preparation o f city-specific E I N E M P in such cases. 71. Environmental Management. Following the ESMF provisions, each city will prepare an appropriate mitigation plan based on i t s specific situation - site conditions, proposed intervention, and i t s institutional arrangements. Details are provided in Annex 10. In most cases, the mitigation measures proposed in the ESMF can be directly used, such as mitigation measures for potential impacts on road side trees, cultural properties, safety for workers and traffic, and temporary pollution. These measures are to be integrated with project design and works contracts. In Pimpri-Chinchwad where the largest size investment o f the project i s proposed, a more detailed assessment has been carried out and there will be an E M P for implementing the proposed interventions. Final designs are informed by i t s findings and the E M P would be suitably incorporated into the BoQ and specifications. In some o f the selected cities, sub-project monitoring indicators include air/emissions quality parameters that will help confirm the extent to which the interventions are being implemented as envisaged during preparation. 23 72. Implementation Arrangements. The implementation o f the city-specific measures will be the responsibility o f the project implementation units at the city level. These will be staffed with environmental and social professionals. At the national level, the P M U also includes an Environmental and Social Safeguards professional to coordinate with and monitor the implementation in participating cities (see Annex 10 for details). F. Safeguard policies Environment Category [B]. , Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OPBP 4.0 1) [XI [I Natural Habitats (OPBP 4.04) [I [XI Pest Management (OP 4.09) [I [XI Physical Cultural Resources (OPBP 4.1 1) [XI [I Involuntary Resettlement (OP/BP 4.12) [XI [I Indigenous Peoples (OP/BP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety o f Dams (OP/BP 4.37) [I [XI Projects in Disputed Areas (OP/BP 7.60). [I [XI Projects on International Waterways (OP/BP 7.50) [I [XI G. Policy Exceptions and Readiness 73. N o policy exceptions are sought. This project will be ready for implementation upon Board approval. By supporting the proposedproject, the Bank does not intend to prejudice the final determination ofthe parties' claims on the disputed areas 24 Annex 1: Country and Sector or Program Background INDIA: Sustainable Urban Transport Project A. Urban Transport Issues in India 1. India is continuing its transformation from an overwhelmingly rural to increasingly urban society. Since 1960 India's total population has increased three fold, and the urban share has risen from 17 percent to about 30 percent (Figure 1). This urbanization process has involved the largest shift o f population that has ever occurred (with the exception o f China), abetted b y accelerated economic growth and corresponding demographic and spatial expansion o f urban areas. India i s one o f the developing economies in the world with roughly 60 percent of the country's GDP coming from urban areas (2005 data). Figure 1: India's Rural and Urban Population, 1950 to 2030 1850 1955 1880 1885 1870 1975 1980 3985 1890 1985 2000 2005 2010 2015 2020 2025 2030 Ye., r+ Rural populsllon (Ihous~nds) +Urban popullllon (IhOusands) Source: United Nations, World Urbanization Prospects, the 2005 Revision 2. The Indian urban system includes 35 cities with more than a million people. The urban population i s spread across over 5,000 cities including three o f the world's twenty-one mega- cities, four with a population between four and ten million and another 28 other with populations o f more than one million (Table 1). Class V I I Below 5,000 221 0.80 Total (Ito VI) 5151 1 279.84 25 3. The urbanization and urban-led economic growth have led to simultaneous changes in two fronts: First, there is a rise in ownership and use o motor vehicles, mostly led by small f vehicles (two-wheelers and three-wheelers). The number o f registered personal vehicles has increased by 75 percent in 2001-2005, driving the average vehicle ownership rate to above 60 vehicles per 1,000 people. In some Indian cities, this rate has exceeded 300 vehicles per 1,000 people. The number o f two-wheelers, in particular, has increased dramatically(Figure 2). Figure 2: Growth in Number o f Vehicles Registered in Indian Cities (1976 -2004) I 80.00 tn 5 70.00 60.00 +All Vehicles 0 8 50.00 -m- Tw o Vvheelers c Cars, Jeeps and Taxi: 40.00 cn Buses .$ .- 30.00 -m- Goods Vehicles c g 20.00 -eOthers' r O 10.00 0 2 0.00 I I I Source: different years national statistics 4. f Second, there has been a continuing decline in the quality o and utilization o f traditional Indian urban transportation modes, including walking, bicycling and conventional bus-based public transport services (Figure 3). According to two similar nation-wide traffic studies carried out by the M o U D in 1994 and 2007, there i s clear decline in the share o f public transport and cycles, which most o f the poor depend upon (Figure 3). For example, passenger kilometers travelled by walking had declined from 40 percent o f the total in 1985 to around 20 percent in 2005 and projected to reach as l o w as ten percent in 2030. Out o f 423 cities with population o f 100,000 or above, only 15 cities are served by organized state-owned public transport corporations while others are left to be served by small unorganized and unregulated informal mini-bus and "tempo" operations. While NMT i s a declining mode in some large cities (in Delhi, for example, bicycle share has declined from 17 percent in 1981 to seven percent in 1994), i t s t i l l remains a dominant form o f travel for many cities such as Indore and Raipur with over 50 percent o f trips dependent on walking or cycling. Sidewalks exist mainly in upper- income neighborhoods in large cities but are either completely missing, broken, or taken over by unauthorized activities in smaller cities. A recent survey carried out by M o U D found that less than 30 percent o f urban roads are provided with pedestrian footpaths. Cycling facilities are few and not continuous and where they are present, other users are either not aware about them or view them as inviting opportunity for encroachment or parking. 5. f The increase share o motorized transportation mode has important negative consequences in the werfare o the Indian population. The most visible consequences are f increased traffic congestion with longer and less predictable travel times, traffic accidents, and environmental deterioration, mapped into increased transport costs for businesses, transport operators, and workers. 26 Figure 3: M o d a l Shares in Urban Transport 1980-2030 100% 00% 8046 7 0Yo GO% 50% 30Sb 30% 20% 10% 0% 1380 1985 1990 1935 2000 2005 2010 2015 1020 2025 2030 year Source: Schipper et. al. 2007 6. Increased transport cost is n major binding constraint o India's future development. f The fast growth in travel and new modal split patterns placed a increasingly heavy pressure on the available urban transport infrastructure and on the institutions in charge o f urban transport. In many cases, the transport demand has clearly outstripped the existing capacity o f both the infrastructure and the urban transport institutions. These urban transport problems, if left unresolved, would severely affect India's economic growth, as Indian cities contribute about 60 percent o f national GDP and account for over 90 percent o f government revenue (2005 data). This in turn would also undermine GoI's efforts on poverty alleviation. Figure 4: C02 Emissions from India's Urban Transport Sector in 2005 and 2030 300,000 250,000 200,000 150,000 100,000 50,000 2 (in rnllion kgs) 2030 Source: Schipper et. al. 2007 7. The current motorization trends are not environmentally sustainable. Local air quality, already a major health issue in most large Indian cities, will continue to decline with exponentially increasing motorization, irrespective o f improvements in engines and fuel. In terms o f global environmental impacts, while the urban transport sector has been a relatively small contributor to India's Green-House Gas (GHG) emissions compared to that in the US, OECD countries, or China, the rapid pace o f urbanization and likely acceleration o f motorization trends present a threat to mitigation efforts in the future. According to a study carried out b y EMBARQ in cooperation with the World Bank in 2007, continuation o f the rapid motorization trends without adequate policy and technological interventions (the "business-as-usual" scenario) 27 would increase the annual C 0 2 emssions from urban transport sector to 253.9 million tons in 2030, which i s more than nine times o f the emissions level in 2005 (see Figure 4 below). This scenario, if realized, would negate ,much o f the efforts being made in India as well as in other countries to reduce the GHG emissions. 8. Many factors have contributed to the rapidly increasing trend in motorized transportation. The critical factors are: rapid increases in household income and wide availability o f easily financed and l o w priced motorized two and four-wheeled vehicles; the absence o f high quality, reliable public transport system; lack o f adequate NMT facilities; inefficient traffic management; intensified commercial and industrial activities;; and urban sprawl. These factors along with fragmented institutional arrangements, lack o f adequate planning and appraisal, and insufficient financing, have contributed to the unsatisfactory state o f urban transport in India. The Bank's policy note: Towards A Discussion o Support to Urban f Transport Development in India (World Bank, 2005) presents an in-dept discussion o f these factors. Roads and individual vehicles often obtained more priority than non-motorized transport (IVMT) and public transport. Urban transport investments tended to favor high-cost road infrastructure, such as arterial roads, ring roads, flyovers, multi-grade interchanges, etc. Consideration o f public transport investments has been limited to high- cost metro rail systems in afew cities. Inadequate attention has been paid to bus-based public transport, despite the fact that it i s are relatively l o w cost and an essential part o f any urban transpot system, even if it includes metro. In addition, much less expensive bus rapid transit can be as or more effective than rail-based modes and much more environmentally-friendly than road construction. Finally, the majority o f urban populations, espeically low-middle income travelers, will continue to depend on bus- based and non-motorized transport for the clear majority o f their travel, even in the face o f rising incomes and motorization. . Where there are fomal public transport services (only 15 o 38 metropolitan areas o f f over I m population), they are o poor quality and rapidly declining due to the l o w f productivity o f rigid state-owned monopolies and l o w fares that do not reflect the cost o f providing service and maintaining over-strained infrastucture, facilities and rolling stock. State owned bus companies often lack organizational flexibility, the ability to hire and fire staff, the market acumen or the business discretion needed to adapt to changing conditions. In the meantime, they are obliged to keep l o w bus fares, provide concessional services to various social groups, and pay fuel and service taxes and even higher duties for importing vehicles or parts than private car owners. As a result, most publicly owned bus companies operate at higher unit costs than comparable transport operations provided by the private sector, which in turn leads to poor operational performance and deterioration in quality o f services. In recent years, some cities (such as Indore and Raipur) have successfully started public transport services, which are provided completely by private operators procured through transparent competitive tendering processes. 28 Traffic management remains very inefficient. Traffic management measures to improve the safety and efficiency o f the road network and junctions (such as one-way streets, restriction on turns, synchronized signals, and intersection channelization), have not been appropriately utilized due to the lack o f political will, institutional capacity, and enforcement. In addition, little attention i s paid t o transport demand management tools such as integrated transpodland use planning, transit-oriented development, and parkinghoad pricing. 0 Many urban roads projects are planned and designed to encourage car-dependent urban development patterns. This makes public transport ineffficient and ineffecive compared to private modes (both two and four-wheelers), difficult to sustain financially and in the long term make cars the only viable travel option for most people living in Indian cities. Urban transport finance is inadequate to meet increasing demand. Public transport services in most cities are losing money, requiring substantial subsidies from state or city governments. National and state taxes on fuel and motor vehicles are substantial, but only a fraction o f the revenue (approximately 25 percent) i s returned to the urban transport sector, and then in a circuitous way. Locally-based road user charges do not exist. Some cities charge for on-street parking, a major local tool for both traffic management and revenue generation, but this approach i s rare and i s still crude. The use o f competitive procurement to reduce public transport operating costs and/or increase revenue i s s t i l l underdeveloped, although a few cities have started outsourcing bus services and contract- based street maintenance. In addition, the problems o f inadequate urban transport finance are further exacerbated by the poor fiscal situation in many municipalities. Institutional arrangements for urban transport are still highly fragmented. Responsibility and accountability for urban transport in India are spread among a variety o f national, state and local institutions and parastatals. Though some fragmentation is both necessary and unavoidable, the key issue i s that there are no appropriate umbrella inistutional arrangements at the state, regional, or city level to coordinate urban transport activities carried out by the various organizations active in the same city. In addition, many cross-cutting, multi-modal metropolitan transport functions are no one's responsbility. Investment decisions are often made in an ad-hoc manner, without adequate planning and appraisal. Systematic processes (e.g., requirements on public consultation and alternative analysis) and technical guidelines for planning, preparing, and appraising large-scale urban transport investments have not been established. Central, state, and municipal governments lack adequate technical capacity and human resources to carry out such processes and procedures. B. Government's Strategy for Urban Transport Development since 2005 9. Institutional arrangements for urban transport are still highly fragmented, and sometimes overlapping. Responsibility and accountability for urban transport in India are widely 29 spread among national, state and local institutions and parastatals. Urban transport i s considered part o f over-all urban development, which i s primarily a State subject, and the, major responsibility for Urban Transport infrastructure and service delivery rests with State Governments and the respective municipal bodies which are their local institutions. 10. f The national government has a key role in the administration o urban transport laws, and in the support o public investment in the sector. Despite the State's responsibilities, the f national government has been deeply involved in urban transport. All critical laws impacting urban transport are also administered by the Central Government, including the Motor Vehicles Act, which lays down the safety standards and procedures for road transport, the procedures for permitting the operation o f public vehicles, etc. The Central Government also collects the majority o f tax revenues and, therefore, large public investments need i t s support. The Ministry o f Urban Development has been assigned by GO1 as the nodal Ministry for planning and coordination o f Urban Transport matters since 1986. 1 1. Municipal governments have traditionally played a limited role in urban transport due to their lack o technical andfinancial capacity, leaving the major responsibilities in the sector f under the State governments. The State governments are responsible for building major roads (such as highways, ring roads or artery roads) in or around cities. They are providing bus based public transport in urban areas through state owned road transport corporations. They also regulate private bus operators and issue private vehicle licenses through state transport departments and regional transport authorities and manage urban traffic through the state Home Departments and State Police. In many states, State governments also control over the development planning for cities (including land use plans and road network plans) through the state urban departments and urban development agencies. W h i l e the 74`h Amendment to India Constitution includes urban transport as a subject for decentralization, most o f cities s t i l l lack adequate capacity to play a substantial role in urban transport development and operations, notwithstanding the decentralization process has been very slow in most states. The municipal governments' responsibility has been limited to building and maintaining local roads within the city limits. 12. Government agency coordination at all levels is crucial but still inadequate. Involvement o f national, state and city governments in urban transport may be both necessary and unavoidable, as demonstrated in many other countries. Yet the key issue lies in the fact that there are no effective mechanisms for coordinating national, state and municipal actors. This coordination issue i s more crucial at the metropolitan level, as most o f urban trips start and end within a metropolitan area, but not necessarily within the boundary o f a single municipality. In addition, systematic procedures (e.g., requirements on public consultation, alternative analysis, and social and environmental analysis) and technical guidelines for planning, preparing, appraising, and monitoring and evaluating urban transport investments, especially large scale projects, have not been well established. Investment decisions are often made in an ad-hoc manner b y individual agencies without going through a thorough planning process. 13. There has been growing attention to the importance o urban transport development in f the past several years. The national government as well as many local governments have acknowledged that effective strategies to ensure more sustainable urban transport development are urgently needed for economic growth, poverty reduction, and environmental protection in 30 India. Without such strategies and appropriate technical guidance, simply increasing infrastructure investment would not effectively solve current urban transport problems; on the contrary, if too much investment goes to costly road infrastructure, it may creat a vicious circle o f automobile dependency and make it more difficult to address urban transport needs in the future, as happened in many other cities throughout the world. 14. The national government has been leading the efforts to develop and implement sustainable urban transport strategiesfor Indian cities. Although provision o f urban transport services i s mainly the responsibility o f state and municipal governments, the national government argued that there i s a strong national interest in urban transport, as the national issues such as air quality, GHG emissions, and o i l security all have a strong conection with the urban transport sector. Therefore the national government should play a vital role in promoting and enabling establishment o f the sustainable urban transport strategies for each city. 15. The Ministry o f Urban Development (MoUD) has undertaken substantial steps in promoting sustainable urban transport since 2005. Two important and nation-wide initiatives are particularly admirable: adoption o f the National Urban Transport Policy (NUTP) in April 2006 propagation o f a funding mechanism for implementation o f the national policy through the Jawaharlal Nehru National Urban Renewal Mission (JnNURM). which was launched in December 2005 16. The National Urban Transport Policy requests states and cities to ensure "safe, affordable, quick, comfortable, reliable and sustainable access for the growing number o cityf residents to jobs, education, recreation and such other needs within our cities. " It puts forward a vision for urban transport in India that focuses on people, not vehicles, emphasizes livability, and facilitates urban growth and form orientated toward local geography, rather than transport infrastructure per se. Specifically, the N U T P enunciates 12 policy objectives: Integrating land-use and transportation planning; Equitable allocation o f road space; Priority to the use o f public transport; Priority to non-motorized transport; Discourage use o f personal motor vehicles; Limiting availability o f low-cost (subsidized) parking for personal motor vehicles; Temporal and spatial segregation o f freight traffic, to the extent possible; Coordinated planning and management o f city transport; Capacity building for developing and implementing sustainable transport systems; U s e o f cleaner technologies; Innovative finance using land as a resource; and Participation o f the private sector. 17. f To incentivize states and cities to implement o the National Urban Transport Policy at the local level, the MoUD provides funding support through JnNURM. The JnNURM was launched in December 2005 to improve urban infrastructure in major cities, Le., all state capitals, cities with population o f more than one million, and other cities considered important from 31 religious, historic, and tourist point o f view. Under this program, the national government provides 35 percent o f infrastructure investment funds to cities over four million people; 50 percent o f such funds to cities over one million people; and 80 percent o f such funds to certain enumerated cities under one million people. In all cases, the cities must undertake some reforms, develop a City Development Plan if i t does not already have one, and finance the remainder o f the investment with a combination o f state, city, or outside resources (such as funds from international finance institutions). 18. The Go1 has formally tied approval o f any JnNURM funds being used for urban transport infrastructure to the NUTP, such that any city applying for JnNURM funds for transport improvements must, on paper, use them in a manner consistent with the NUTP. Cities which request JnNURM funds for urban transport infrastructure would need to prepare a Comprehensive Mobility Plan which gives priority to public transport and NMT, and commit to critical institutional reforms called for b y the National Urban Transport Policy, such as (i) Constitution o f Unified Metropolitan Transport Authority; (ii) Preparation o f Comprehensive Mobility Plan; (iii) Formulation o f Parking Policy; (iv) Formulation o f Advertisement Policy; (v) Setting o f dedicated funds for Urban Transport. While such a requirement facilitates policy consistency at the national level, compliance with that policy does not necessarily mean that local governments who receive JnNURM funding are fully embracing the N U T P policy; rather, there i s some evidence that local governments see such a requirement simply as a constraint on expenditures, that this source o f funds can only be used for certain types o f investments. As money i s fungible, many local governments seem to simply be reallocating the resources they use to fund different pieces o f infrastructure they would have funded anyway, even if the N U T P were not promulgated. In other words, the tie between the JnNURM funding and N U T P i s output-based, not outcome-based, and this weakness risks being exploited by some local governments looking for funding. 19. To effectively implement the NUTP, there are tremendous needs for capacity development at both national and local levels. Under the influence o f the N U T P and JnNURM initiatives, urban transport has received considerable attention since 2006, and i s no longer the least important issue in urban governance. However, it has been recognized that limited institutional and human capacity in urban transport at both national and local levels i s a major constraint. At the national level, the Institute o f Urban Transport (IUT) which had been set up in 1996 but was languishing for lack o f funds, was suddenly flush with work and had to quickly hire more people to deliver on the jobs awarded to it from the M o U D and other government agencies. At the state and city level, implementation o f JnNURM urban transport projects has been slow, and in several cities, poorly designed and implemented. If anything, these projects were actually antithetical to sustainable urban transport and land development. 20. With the Support o f the UNDP, the Bank, ADB and other donors, M o U D has carried out several studies/surveys and public consultations to assess urban transport capacity needs. A number o f institutional and human resource barriers have been identified within the urban transport sector that inhibit effective implementation o f N U T P and other urban transport initiatives: 32 (a) Inadequate capacity in many state and municipal institutions that are poorly organized and staffed to address urban transport issues in a comprehensive and collaborative fashion; (b) Weakness in local knowledge base o f sustainable urban transport and limitation o f contextual and problem-solving oriented research support to practitioners in urban transport planning, operations and management at all levels o f government; (c) Limited formal, two-way communication mechanisms for the users and providers o f non-motorized and public transport and the general public to provide inputlfeedback to urban transport decision-making and learn about issues and progress; (d) Absence o f high-quality projects and locally generated good practices that can demonstrate the benefits o f sustainable urban transport and help catalyze/cultivate change in the way urban transport i s planned, operated and managed. 2 1. Clearly, capacity development i s extremely important. Though ad-hoc seminars, workshops, conferences and study visits have been organized by the M o U D and other agencies as well as donors since 2006, integrated and comprehensive institutional and capacity development programs needs to be developed and implemented at the national, state and local government levels. These are necessary to build sufficient institutional and human capacity to successfully address already severe and rapidly growing urban transport challenges. 22. Sustainable Urban Transport Program. With support from the Bank, GEF, and UNDP, M o U D has been working with a number o f states and cities since early 2006 to develop a Sustainable Urban Transport Program. The aim was to strengthen the national and local governments' capacity in urban transport planning and management in a more integrated and comprehensive manner. After extensive consultations at the early stage o f project preparation, it was agreed that the Bank would be the leading GEF agency, and the U N D P a partnering GEF agency, for assisting M o U D and participating statedcities to prepare and implement this program. The India-GEF- World Bank- UNDP Sustainable Urban Transport Program (The Program or SUTP Program) essentially consists o f two parts: , Part I supported b y UNDP, would include a number o f national level capacity building initiatives, which will be implemented directly by MoUD'; Part 11, supported by the Bank, would include a series o f demonstration capacity building and investment projects in selected states and cities, which will be implemented b y M o U D and participating states and cities." 23. The development o the SUTP Program closely reflects GoI's intention to address the f institutional and capacity barriers in the implementation o NUTP. The entire project i s aimed f to develop a national/local partnership program which can make concerted efforts to address these issues in a more systematic and sustainable manner. The UNDP-supported national capacity-building initiatives (Part Io f the Program) has been designed to strengthen the ability o f the key national institutions, such as the Institute o f Urban Transport, to provide training (for regional/local trainees and senior government officials) and other capacity development initiatives for organizations and individual officials that are involved in urban transport planning, ~ 9 See description of the UNDP-supported activities in Appendix 1 to Annex 4. loSee description of the UNDP-supported activities in Annex 4, and Appendix 2 to Annex 4. 33 management and implementation at all levels o f government. The Program also includes development and dissemination o f a variety o f technical guidelines, manuals and regulations to address the technical and knowledge gap in implementing the National Urban Transport Policy. Issues o f public participation, sustainable financing mechanisms for urban transport, and long- term capacity development will be explicitly addressed by both the technical guidance and good- practices dissemination sub-components o f the national component. 24. The Part I1 o f the SUTP Program, which i s the Bank-supported SUTP Project, i s intended to focus on capacity building at local level. The proposed activities will not only provide capacity building for participating states and cities, through tailor-designed technical assistance and project preparation and implementation, but also help them leverage funds and catalyze potential paradigm shift in urban transport development towards more sustainable approaches. This Bank-supported project will also address some fundamental weaknesses in the urban transport sector by providing funds to support development o f a reliable urban transport database in Indian cities and support local research development to increase the local knowledge o f sustainable urban transport. 25. Coordination in Capacity Building. Development o f the SUTP reflects not only the GoI's intention to address critical institutional and capacity barriers in the urban transport sector, but also i t s attempt to use the SUTP as a platform to develop and enhance coordination among different international and local stakeholders to achieve better results. The SUTP complements a number o f capacity development initiatives which have been undertaken b y the MoUD, in partnership with many states and cities as well as international partners such as the World Bank, PPIAF, UNDP, ADB, DFID, GTZ, CAI-Asia, ITDP, and EMBARQ. Among these initiatives, the SUTP i s the largest capacity development program which M o U D has ever carried out in the urban transport sector. C. A Proposed Framework f o r Bank Support to Urban Transport in India 26. Overall Objectives. The proposed Bank assistance, responding to the Government o f India's growing emphasis on sustainable urban transport, will target national, state and local governments with the following objectives: (i) support the Go1 to effectively implement the National Urban Transport Policy (NUTP), and (ii) help Indian cities develop urban transport to systems that are safe, secure, financially and environmentally sustainable, equitably provide affordable access and mobility to every `citizen and support the efficient movement o f the freight and goods necessary for economic development. Key indicators to measure achievement o f the objectives include: increased investment in public and non-motorized transport; increased public and non motorized transport mode shares, reduced travel times for low-income residents, lower traffic accident, injury and fatality rates and increased citizen satisfaction with the urban transport system. 27. Focus o Bank Support. The Bank support will give priority to addressing a limited f number o f key urban transport issues. Given the urban transport problems in India, the NUTP emphasis areas, and the comparative advantage o f the World Bank, the key urban transport aspects to be addressed through the Bank support are the following: 34 0 Priority to public transport, which includes improvements in urban transport policies, regulations (provision, publidprivate division o f labor, pricing, subsidies, and low- income strategies) and investment planning; 8 Traffic management (especially the allocation o f street space among competing modes, safety and right o f way for pedestrians and other non-motorized transport, and introduction o f traffic demand management) and law enforcement; 0 Financial instruments for urban transport, especially public transport; 0 Integrated urban land use and transport planning; 0 Capacity development and institutional reforms for national, state, and city institutions (including development o f urban transport training programs in educational institutes) 28. National Level Support. At the national level, the Bank will assist the Go1 in development o f its technical capacity to support both the state and municipal levels o f government in urban transport. The Bank will provide capacity building and TA support to IUT, the currently only one national institute focusing o n urban transport, and other national and regional organizations (including the centers o f excellence for urban transport designated by GoI). I t will also provide policy, technical, institutional and financial support to strengthen the partnership among national, state and local governments in urban transport development. The Bank will, in particular, focus on the JnNURM effort to reform the urban transport sector for major cities. The DFID-funded Urban Transport Planning Technical Assistance Project and the GEF-World Bank-UNDP supported SUTP are the first two national initiatives. They will be followed up by two TA 'studies: (a) capacity development for Unified Metropolitan Transport Authorities; and (b) technical support to urban bus sector reforms, and possibly a national urban transport investment project focusing on the five priority areas identified above. 29. Local Level Support. At the state and city level, the Bank will provide lending and advisory assistance which will have a strong link to the Bank's urban operations. Building on both international and Indian experience, success o f the Bank support will be built upon the following policy and institutional development in the recipient state (or city): Development o f a statewide urban policy aiming to clarify roles in urban development (including transport) and to enable Municipal Corporations or ULBs to become financially viable and accountable; Quality o f municipal management, including capital planning and budgeting, financial management, revenue administration, and financial performance at least at the level o f Indian good practice; Commitment to institutional and regulatory reforms required for urban transport development; and Quality o f the stakeholder participation process and o f the social and environmental aspects, at least at the level o f Indian good practice; Capacity in handling the complex issues in urban transport; and Quality in preparation and implementation o f urban transport investments, especially environmentally sustainable investments. 35 30. Instruments for Bank Support. Depending on the context o f the city that requests Bank support, the Bank may consider utilizing different lending or policy advisory instruments in the future. They will vary as follows: In cities where urban reforms have been carried out or a strong commitment to urban reforms has been demonstrated, and UT policy frameworks which are in consistent with national urban transport policy have been developed, the Bank can work with these cities to prepare large size (US$l50-300 million) specific investment operations (SIL) targeting on public transport, non-motorized transport, vehicle emission control, traffic management, and/or urban road network. Single city urban transport projects can be prepared for large cities (with population o f more than four million) while multiple-city urban transport projects may be prepared for a group o f small and median size cities to enhance the project impacts. In cities where urban reforms have been carried out or a strong commitment to urban reforms has been demonstrated, but there i s s t i l l a need to build basic consensus for developing appropriate UT policy and institutional reforms, the Bank can provide technical assistance for these cities to prepare intended policy and institutional reforms. Development policy lending (DPL) or small size (less than US$l50 million) TA loans may be provided to help implement these reforms. These cities can also apply for loans from the proposed National Urban Infrastructure Fund (NUIF), which i s supported by the Bank. 0 In cities where the commitment to urban reforms has s t i l l been weak, the Bank may engage in the urban transport sector through small scale UT components o f on-going urban or transport operations or policy dialogue to promote broader municipal reforms (including urban transport policy and regulatory reforms). GEF may also be utilized to support development o f UT policy frameworks in these cities, as sustainable urban transport should be one o f the essential elements o f these policy frameworks. 3 1. Additionally, in collaboration with the on-going urban development projects (e.g., in TN, Gujarat, AP, Karnataka, etc.), proposed Bank urban transport operations will leverage the urban operations and research on municipal finance, roles and responsibilities o f ULBs, and overall urban sector policy reforms. However, the urban transport components o f these urban development projects, which primarily focus on constructing or maintaining urban roads, are not supposed to be the substitute o f specific urban transport interventions to be discussed above. 32. While the GoI's current policy measures and initiatives are highly admirable, they may not be sufficient to address the impending increase in urban transport G H G emissions. The demand for vehicular travel was forecasted to be high even before the announcement o f plans to build and market small, low-cost cars in India. Even more aggressive measures than those already underway may be limited in maintaining l o w transport emissions if motorization rates accelerate precipitously as a result. 3 3. Large scale investments on environmentallyfriendly urban transport interventions are required. A recent study carried out by M o U D estimates that Go1 and local governments need to spend more than $1 10 billion investment in urban transport infrastructure in the next 20 years in order to just maintain the current mode share by public transport (27 percent on average) in Indian cities. This level o f funding request i s already about three times bigger than the JnNURM 36 of which finances all urban sectors including water, sanitation, urban transport, solid waste management, etc. To increase the mode share by public transport would request much more investments. 34. Integrated, comprehensive and cooperative urban transport planning is the key to achieving sizable mitigation in the urban transport sector in India. A scenario that included integrated public transport systems, including local bus and bus and rail-based rapid transit, harmonizing transport and land-use development, and implementing aggressive transport demand management strategies was found to lead to the lowest level o f C 0 2 emissions growth through 2030, compared with a Business-as-usual (BAU), an energy efficiency, and a "Nano" auto World scenario (See Box 1). In the integrated urban transport scenario, total transport- related C 0 2 emissions were s t i l l projected to increase by a factor o f nearly five - and per capita transport-related C 0 2 emissions by a factor o f 3.4 - but these increases were the lowest o f the scenarios, and about 39 percent less than the BAU scenario (Box 1). 35. The Bank will also strengthen its institutional position in India through the development o partnerships with other key players in the UT sector. I n order to go beyond the f role o f simply financing and providing technical assistance to particular projects, the Bank needs to develop the dexterity to not only engage national and local governments on issues related to the demand for vehicular travel, the energy intensity o f vehicle fleets and the fuels available for use in the transport sector, but also to understand the best way to engage with governments and other institutions on each o f these issues. 36. The Bank will also be prepared to provide expertise and policy clarity to Indian stakeholders. This would involve developing partnerships with other key players in the urban transport sector, such as ITDP and Embarq, and identifying more resources to allow more concerted engagement in ongoing processes, such as TRB, GTZ and CAI-Asia or for organizing events to help disseminate best practice. I t will need to engage counterparts at national and sub- national levels, particularly in cities, given that motorization and policies will have their loci primarily at the city level. Again, the SUTP could provide a model for the type o f engagement necessary. 37 Box 1 Scenario Assessment of Potential Future Growth for Transport Sector in India The study, carried out by Embarq and the World Bank in 2007, defined four scenarios on which the transport sector's growth could potentially develop in India. They were the following: i. A baseline scenario ("Business-as-Usual" o r BAU), whereby projections o f GDP are used to forecast projections o f vehicle ownership; vehicle ownership rates at different levels o f G D P are assumed to be the same as those observed in South Korea over the past two decades; two-wheelers ownership rates continue at the same trajectory; and infrastructure (or lack thereof) i s not considered a constraint on this level o f ownership. ii. An energy efficiency scenario (EF), whereby "higher fuel prices and taxes drive consumers to both smaller and more efficient cars". Those taxes are assumed to be the rates that presently characterize Japanese policy. These prices drive not only choice o f cars but also the extent to which they are driven. A clean two- and three- wheeler scenario (`&Two-WheelerWorld" o r TWW), in which Indian policy focuses on developing very clean two-wheelers in recognition of the enormous difficulties in transforming i t s infrastructure to one that accommodates the large growth in passenger cars assumed under the baseline scenario. Under this scenario, use o f public transport grows marginally faster than in the base case, and growth in car ownership grows slower than in the base case. ... 111. An integrated urban transport planning approach, in which cities focus on developing integrated public transport systems, including Bus Rapid Transit, coordination with land-use development, and engagement in rather aggressive transport demand management strategies. In response to the announcement o f the production o f the low-price Nan0 by Tata Motors, and a competitor by the Renault-Nissan-Bajaj consortium, an additional scenario, Nan0 World, was added to the repertoire." The adapted results of the study are shown in the figure below. Forecast of Modal C 0 2Emissions for Adjusted WRI's Embarq-World Bank India Scenarios 1980 2000 2030. 2030. 2030 2030 2030 BAU Nano Fueleff TWW Int Urb world Pin. Source: Schipper et. al. 2007 * "Other" refers to small, low-cost car use in the "Nano world" scenario, and BRT use in the Integrated Urban Planning scenario. " The Nan0 scenario should probably be integrated into the business-as-usual scenario, since it appears to be an inevitable part o f the business-as-usual baseline. 38 D. Selection and Preparation of Demonstration Cities and Investments f o r SUTP 37. City Selection Process. The selection process started in mid-2006 after M o U D issued the National Urban Transport Policy (NUTP). A SUTP Steering Committee, consisting o f Secretary o f Urban Development and senior officials from M o U D, Planning Commission, DEA, Ministry o f Environment and Forest was established in September 2006 to review the project proposal for GEF and oversee preparation o f the SUTP (including selection o f demonstration cities). A Project Management Unit (PMU) was set up at the Institute o f Urban Transport (IUT) for preparation o f the SUTP. PMU/IUT then organized several regional workshops to disseminate the National Urban Transport Policy and the concept o f sustainable urban transport. 38. In June 2007, the Bank and M o U D organized a GEF Workshop together with a PPIAF sponsored Public Transport training workshop in Indore to promote sustainable urban transport and encourage cities to participate in SUTP. About 25 cities expressed interest and 14 cities made presentations at the workshop on their urban transport challenges and their development plans. After the workshop, the Steering Committee made a nation-wide call for proposals for GEF demonstration projects in July 2007. Under a GEF Project Preparation Grant, M o U D appointed a domestic consultant (SUTP Consultant) through an international competition to help review proposals submitted by cities and prepare the SUTP. 39. The SUTP Consultant, with good working knowledge o f GEF.objectives, the India's National Urban Transport Policy and the urban transport situation on the ground in Indian cities, shortlisted 11 candidate cities based on two sets o f criteria (which were discussed and agreed with the Bank team in advance): (a) Demonstration value e.g., level o f expected GHG impacts, innovation, expected outcome o f the proposed projects, geographic location and size o f cities, etc; (b) Probability o f success, e.g., policy and regulatory framework, government commitment to implementation, organizational and management capacity, financial priority for Urban Transport, etc. 40. The SUTP Steering Committee met on December 13, 2007 and selected ten cities from the shortlist, based on (a) the above criteria used by the consultant and (b) consideration o f regional balance. The ten cities are the following: Ahmedabad (Gujarat), Ajmer-Pushkar (Rajasthan), Hyderabad (Andre Pradesh), Indore (Madhya Pradesh), Jalandhar (Punjab), Mysore (Karnataka), Naya Raipur (Chhattisgarh), Pune, and Pimpri-Chinchwad (Maharashtra), and Thiruvananthapuram (Kerala). 41. The collection o f these ten cities i s representative o f the diversity nature o f Indian cities in four important ways. First, i t includes cities from major geographic regions in India (the selection criteria mentioned above were designed to ensure such an outcome): one in an east State (Chhattisgarh), two in central India (Madhya Pradesh and Andhra Pradesh), two in the South (Kerala and Karnataka), two in the North (Punjab and Rajasthan) and three in the West (Gujarat and Maharashtra). 39 Growth rate in Economy of city Mode ownership o f Size o f city Mode share Mode share share by (Average two wheelers Cities (urban income (Rs) by Public byNMT two- (Average States population Transportation (walk+cycle) Latest available wheelers annual rate in 2001) Year) ("/.I (%) past 5 years, YO) Ahmedabad 4,5 18,240 69,099 11 48 26 na Gujarat Ajmer 490,520 2,925 0 61 27 7.8 Rajasthan Hyderabad 5,742,036 62,125 31 31 22 123 Andhra Pradesh Indore 1,506,062 4,177 14 28.6 34 10.4 Madhya Pradesh Jalandhar 714,077 65,922 (*) 0.2 49.2 34.4 na Punjab Mysore 799,228 7,185 13 50 22 8.4 Karnataka Naya Raipur(+) 700,113 na 9.6 52 24 14 Chhattisgarh Pune 3,760,636 46,3 13 12 33 36 55 Maharashtra Pimpri-Chinchwad 1,012,472 na 4.2 13.7 67.8 na Maharashtra Thiruvananthapuram 889,635 na 25 32 21 12.6 Kerala Source: India Census 2001(extracted from www.citypopulation.de on January 2009). Annex 3.1, Study on India Traffic and Transportation Policies and Strategies in Urban Areas in India, MoUD, India, May 2008. Trafic data was collected from cities under preparation o f SUTP. Note: (+) Naya Raipur i s a planned new city and therefore the figures used here are from Raipur; (*) calculated dividing average household income by average household size in the state. 42. Second, the chosen cities are a representative sample o f the development status o f the country. Four cities are from advanced states (Gujarat, Maharashtra and Punjab), three from middle-income states (Andhra Pradesh, Kerala and Karnataka), and the remaining three from low-income states (Rajasthan, Chhattisgarh and Madhya Pradesh). 43. Third, the sample i s representative o f different sizes o f cities which are growing throughout India. Hyderabad, Ahmedabad, Pune, Pimpri are large cities where growth i s mainly taking place in the sub-urban areas and metropolitan areas. AjmedPushkar and Jalandhar are typical small-size Indian cities where growth i s concentrating on their small and old city centers, while Indore, Mysore, Thiruvananthapuram are booming median size cities. Naya Raipur i s a completely planned new city. 44. Fourth, the .chosen cities are a representative sample o f the range o f urban transport problems and challenges in India. Most o f the cities report severe traffic congestion and air pollution in the city center. The number o f registered personal vehicles (mostly two wheelers) i s increasing much faster than the economic growth and growth o f urban population. There are no oiganized public transport services in smaller cities, while in big cities, the public transport corporations report frustration that their buses are in very poor conditions, the public transport networks are ineffective, and they cannot attract ridership in substantial numbers. Majority o f the trips are s t i l l carried out by NMT (including walking and cycling), especially in smaller cities. 40 However, the recent survey carried out by M o U D estimates that averagely only 30 percent o f urban roads have footpaths. Where sidewalks exist, most o f them are either broken or encroached by parking and other commercial activities, which pushes pedestrians to walk on the carriageway and expose themselves to motorized traffic. 45. Development o Demonstration Investment Proposals. After selection o f the ten cities, f the P M U and the SUTP Consultant were then requested b y the Steering Committee to help all selected cities fine tune their project proposals and make their demonstration projects more focused and more GEF-able. A detailed Project Profiles were prepared by all cities and then endorsed by the SUTP Steering Committee to be included to SUTP as City Demonstration Projects.l2The final selected projects focus on the following initiatives: Public transport development, including development o f new bus systems with BRT characteristics in Naya Raipur, Pimpri (Group A), improvements o f existing bus services and operations in Indore and Mysore (Group B), operation support to the bus services in Pimpri (Group A), improved access to public transport in Pune (Group A). Non-motorized transport development, including cycle track investments in Pune and Naya Raipur (Group A), and comprehensive non-motorized transport improvements for Jalandhar (Group B). Pilot Intelligent Transport System (ITS) application to public transport in Mysore and Indore (Group B). Pimpri-Chinchwad and Naya Raipur (Group A) will also introduce some basic ITS functions to its bus operations. Technical Assistance in integrated land and transport development or Transit-Oriented Development (TOD) for Naya Raipur (Group A). 46. Detailed project design for these demonstration projects are carried out by the cities themselves with guidance from P M U and the SUTP Consultant. As some cities were quicker in detailed project design than others, a phasing arrangement for project implementation was adopted b y the Steering Committee in September 2008, i.e., the ten participating cities are divided into two groups: Phase 1 cities which will complete detailed design as well as bid documents in adequate quality by Appraisal will be allocated project funds once the World Bank/GEF financing become effective; the remaining cities will be considered as Phase 2 cities for which project funds will not be confirmed until detailed design (including social and environmental impact assessments and estimated GHG emission reduction targets) and bid documents are completed and appraised by the Bank. 47. Financing for tlze Demonstration Projects. All ten cities (except for Jalandhar) are eligible for assistance under Jawaharlal Nehru National Urban Renewal Mission (JnNRUM). Many o f the demonstration projects proposed by these cities are also eligible for JnNURM funds. Go1 originally selected ten cities through a public consultation and competitive process for participating in this GEF project. However, only six cities, i.e., Pune and Pimpri Chinchwad (in Maharashtra), Naya Raipur (in Chhattisgarh), Jalandhar (in Punjab), Indore (in Madhya Pradesh), and Mysore (in Karnataka), have completed required design work by Appraisal. Ahmedabad (Gujarat) withdrew i t s project proposal as it started its project by i t s own funds. Other three cities (Hyderabad in Andhra Pradesh, Ajmer in Rajasthan, and Thiruvananthapuram in Kerala) are still in the process o f preparing their project design. Their projects may be financed by GEF under a follow up project or by other source o f funds in the future. 41 47. Financing for the Demonstration Projects. All ten cities (except for Jalandhar) are eligible for assistance under Jawaharlal Nehru National Urban Renewal Mission (JnNRUM). Many o f the demonstration projects proposed b y these cities are also eligible for JnNURM funds. N U M Depending on different categories o f cities and projects, the SUTP cities can obtain J N R grant to finance from cero percent up to 80 percent o f total investment costs. The proposed GEF grant will finance the remaining financing gap in those cities, and therefore enable these cities to utilize JnNURM grant, which they would otherwise not. 48. Final selection o cities for GEF and Bankfinancing support. Six out o f the ten cities f are now ready for GEF financing: Pune, Pimpri-Chinchwad (in Maharashtra State) Indore (in Madhya Pradesh State), Mysore (in Karnataka State), Jalandhar (in Punjab State), and Naya Raipur (in Chhattisgarh State). Among these six cities, three cities, namely Pune, Pimpri- Chinchwad and Naya Raipur where the financing gap i s large, a World Bank loan i s being requested to co-finance the project implementation. Ahmedabad in Gujarat has withdrawn its project proposal. Other three cities (Hyderabad in Andre Pradesh, Ajmer in Rajasthan, and Thiruvananthapuram in Kerala) are s t i l l in the process o f preparing their project design. Their projects may be financed by GEF under a follow-up project or b y other source o f funds in the future. 49. Capacity Development Assistance to Demonstration Cities. For most o f the participating cities, it i s the first time for them to prepare and implement environmentally friendly transport investments in a professional manner and in a fair large scale. During preparation o f the demonstration projects, it becomes evident that most demonstration cities have weak capacity for project preparation and implementation, and their capacity gap also varies. A particular capacity development component (Component 1) was included to SUTP, targeting these demonstration cities and aiming to address their unique capacity development needs as well as some common capacity weaknesses identified during the preparation o f city investments, such as lack o f reliable transport data for planning and lack o f research support to address operational questions/problems. The Component 1 will also include technical assistance to help these cities in preparation and implementation o f major urban transport sector reforms which cities have committed to. The documented results and materials will be synthesized and made available through the IUT for use by all cities in India. 50. Additionally, there will be hands-on "mentoring" by PMU, the PMC, Bank staff and consultants, and/or independent quality advisors during the detailed project preparation and execution o f Component 2. There are also a number o f specific technical assistance activities within each demonstration city project which will lead to an enhanced local understanding o f sustainable urban transport concept, and related new planning and development processes and procedures. 42 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies I N D I A : Sustainable Urban Transport Project Issue I Project II Latest Supervision (ISR) Ratings (Bank-financed projects only) Bank-financed, completed or on-going 1 Implementation I PDO Road sector institutional development and capacity building at the state level Capacity expansion o f commuter rails, urban roads and bus services, and institutional strengthening o f concerned agencies Capacity expansion o f national highways and institutional strengthening o f MOSRTH and NHAI Capacity expansion and maintenance o f state highways and institutional development o f state road agencies Economic Reforms Improvements o f road infrastructure in a commercial format Municipal reforms and investments Karnataka Municipal Services Project (Ln. MS MS (including improvements of urban 4818-IN) road infrastructure) Improvements o f urban transport Tamil Nadu Urban Development Project (Ln.4798- MU MS infrastructure Ratings: HS (Highly Satisfactory), S (Satisfactory), M S (Moderately Satisfactory), U (Unsatisfactory), MU (Moderately Unsatisfactory), HU (Highly Unsatisfactory) 43 Issue Project I Latest Supervision (ISR) Ratings (Bank-financed projects only) I Bank- on-going M U L T I - C I T Y Projects Implementation PDO Progress MULTI-CITY project involving six China: Liaoning Medium Cities Infrastructure Project M S M S cities (P099992) - Liaoning Urban Transport Project I1 MULTI-CITY project involving ten Argentina-GEF-World Bank Sustainable Transport and S S cities in four metropolitan areas Air Quality Project (P114008) MULTI-CITY project involving 11 China-GEF-World Bank Urban Transport Partnership MU MS cities and one province (total 17 cities) Program Project (P090335) MULTI-CITY project involving six Colombia Integrated Mass Transit Project ((P082466) Ratings have been consistently cities and Additional Financing (P101356) satisfactory Bank Borrower Bank-completed M U L T I - C I T Y Projects Performance: Performa nce: MULTI-CITY project involving 14 Russia Urban Transport Project (P008806) HS S cities MULTI-CITY project involving three China: Liaoning Urban Transport Project (PO4 1890) S S cities Ratings: H (Highly Satisfactory), S (Satisfactory), M (Moderately Satisfactory), U (Unsatisfactory), MU (Moderately S S Unsatisfactory), HU (Highly Unsatisfactory) Other development agencies, completc Japanese Bank for International Delhi Metro Rail Project On going Cooperation (formerly OECF) - Capacity expansion o f Urban Transport ADB - TA for Urban Transport Development of national urban transport Ongoing guidance and identification and preparation o f a Urban Transport investment project ADB - Capacity expansion o f NH National Highway Corridor I Surat-Manor , Ongoing and SH and institutional Tollway Project, Chhattisgarh State Roads strengthening of agencies Project, National Highway Corridor 11, MP - - State Roads Project ADB- improvements o f urban Kerala Sustainable Urban Development Ongoing roads in major Kerala cities Project UNDP- capacity development for India capacity development program Ongoing national and local governments 44 Annex 3: Results Framework and Monitoring INDIA: Sustainable Urban Transport Project A. Project Development Objective 9. The Project's development objective (PDO) and global environment objective (GEO) are essentially the same: to promote environmentally sustainable urban transport in India and t o improve the usage o f environmentally friendly transport modes through demonstration projects in selected cities.13 The project aims to achieve this objective by supporting the implementation o f India National Urban Transport Policy (NUTP), particularly those aspects o f the policy that emphasize: (a) Priority to the use o f public transport; (b) Priority to non-motorized transport; and (c) ,Capacity building for developing & implementing sustainable transport systems (at both national and local levels). 10. While not all o f the participating national and local agencies will focus equally o n all o f these objectives, the project seeks to enhance ownership of, and substantial achievement toward, these particular objectives by participating agencies. B. Key Indicators 11. Performance Monitoring Indicators. The key overall indicators to measure performance in achieving the project development and global environmental objective are: 0 The number o f cities that develop an identifiable urban transport planning process (Le., managed by professional units o f government, following certain procedures and guidance, and involving various level o f analytical work) increases. M o d e shares in Pune, Pimpri-Chinchwad, and Naya Raipur become more sustainable by project end. A significant amount o f co-benefits are achieved as forecast transport C 0 2 emissions in the demonstration cities are lower than their "business-as-usual" or "without-proj ect" forecasts. 12. T o help monitoring progress in working toward the intended project results, a set o f intermediate indicators are also proposed for both the national components and city components o f the project. (See details in the table below.) 13. I t should be noted that, at the individual city level, many o f the proposed "intermediate" outcome indicators have the characteristics o f project outcome indicators, again because o f the composite nature o f the project. l3 The GEO and PDO are the same because urban transport development that i s environmentally sustainable simultaneously contributes to both the emerging pillars being highlighted in the current India Country Strategy - achieving rapid, inclusive growth and ensuring sustainable development - and the strategic priorities for the GEF-IV period o f facilitating market transformation for sustainable transport. 45 Results Framework Objectives Outcome Indicators Use o f Outcome Information Project Development The number o f cities that develop an identifiable Gauge the success o f the Objective and Global urban transport planning process (i.e., managed SUTP in capacity building at Environment Objective: by professional units/institutions o f government, state and city level and to promote following certain procedures and guidance, and engagement o f the NUTP environmentally involving various level of analytical work and objectives. sustainable urban transport stakeholders' participation) increases, by project in India and to improve the end. usage o f environmentally friendly transport modes Mode shares in Pune, Pimpri-Chinchwadand Gauge the success o f the through demonstration Naya Raipur become more sustainable by SUTP in effecting sustainable projects in selected cities. project end. transport changes in project cities. As co-benefits, the forecast transport C02 Gauge the success o f the emissions in the demonstration cities are lower SUTP in reducing GHG than their "business-as-usual" or "without- emissions from the transport Droiect" forecasts. sector Intermediate Intermediate outcome indicators Use o f intermediate Outcomes outcome monitoring Pimpri-Chinchwad: New At project end, the BRT corridors developed in Gauge the service BRT substantially meets Pimpri will carry at least 75 percent o f their effectiveness o f the BRT its ridership projections anticipated ridership for that year funded under the project Pune: Bicycle access to The proportion of BRT riders accessing the BRT Demonstrate the success o f BRT increases. through bicycles or by foot increases by 2 project investments in percent by EoP. inducing bicycle access to BRT Naya Raipur: Commuters At least two Public transport corridors are Measure the effectiveness o f between Naya Raipur and established and in operation between Naya the Naya Raipur public old Raipur prefer using Raipur and Raipur transport system funded under public transport. Safe sidewalks and cycle tracks are provided on the project the main roads o f Naya Raipur Indore and Mysore: ITS systems and units are installed, functioning, Gauge the effectiveness o f Public transport service i s and utilized for at least 80 percent o f their GEF intervention in helping enhanced through intended of revenue vehicle kilometers o f ITS implementation advanced technology service in Mysore, lndore by project end applications and enhanced operation efficiency Jalandhar: NMT and Citizen`s satisfaction with Public transport and Gauge the effectiveness o f Public Transport facilities N M T systems on the main corridors o f the city GEF intervention in helping are improved i s increased formulation and implementationo f urban transport plans which promote public transport and N M T * The urban transport reforms consist o f Constitution o f Unified Metropolitan Transport Authority (UMTA) Setting up o f Dedicated Urban transport Fund (UTF) Preparation o f Comprehensive Mobility Plan Formulation o f Parking Policy Formulation of Advertisement Policy 46 3 L 6 5 n u - i 2 ! 3 3 z 3 a 0 3 3 0 3 z 2 i 2 a 2 z b 5 N .- C 0 s 0 Annex 4: Detailed Project Description INDIA: Sustainable Urban Transport Project 1. The project includes the following components: Component 1: Capacity Development Assistance for Selected Cities 0 Component 2: City Demonstration Projects. 2. Component 1: Capacity Development Assistance for Urban Transport (Total $7.75 million, including GEF: $7.05 million and GoI: $0.7 million). This Component will provide technical assistance to the M o U D to improve national, state, and local capacity to implement the national urban transport policy. This includes (i) development o f implementation strategiedplans in at least four pilot cities for the five key urban transport reforms envisioned in the NUTP; (ii) piloting o f model urban transport databases in at least four pilot cities (including development an uniformed data system, collecting baseline, and training); (iii) development o f a national Sustainable Urban Transport Research Program (SUTRP) which will focus on local, problem-solving research and other technical activities in response to the priority need o f practitioners (such as government officials/planners/operators involved in urban transport) in planning, implementation and management o f sustainable urban transport initiativedsystems; (iv) provide technical assistance to cities in identification and preparation o f new environmentally friendly urban transport investments; and (v) provide project implementation support to Component 2 participating cities. 3. This component includes design and implementation o f technical assistance specifically tailored to the needs o f SUTP cities, especially the Phase 2 cities. I t will address their unique capacity development needs which may arise during the ' implementation o f the project. The documented results and materials will be synthesized and made available through the IUT for use by all cities in India. Activities under this Component will be further defined during the implementation stage. 4. This component i s only one way that demonstration cities will be offered capacity development support over the course o f the SUTP. There will be hand-on "mentoring" by PMU, Bank staff and consultants, and independent quality advisors during the detailed project preparation and execution o f Component 2 (discussed below). There are also a number o f specific technical assistance activities within each demonstration city project which will lead to an enhanced local understanding o f sustainable urban transport concept, and related new planning and development processes and procedures. 5. Component 2: City Demonstration Projects. (Total $336.8 million, including WB:$l05.Omillion; GEF:$11.4 million; GoI: $58.9 million; States:$68.1 million; and PIAs: $93.3 million). This component includes a series o f high-profile demonstration projects in six selected cities in five participating states. The project cities are divided into two distinct groups. Group A cities will combine NURM funding, a GEF grant, and a World Bank Specific Investment Loan to undertake a substantial investment in a particular aspect o f sustainable urban transport infrastructure to demonstrate the effectiveness o f the strategy in influencing traveler behavior and perceptions. Group B 50 cities, on the other hand, will utilize GEF funding alone to influence project implementation under the NURM, to strengthen the ability o f transport practitioners in understanding and putting into effect the sustainability objectives o f the NURM. Project success for group A cities (Pune, Pimpri-Chinchwad, and Naya Raipur) will be measured by the extent of actual changes in transport behavior associated with the project outputs, while success for group B cities will be more modest, and will depend on observed changes in transport planning and management practice. 6. Generally, the selected demonstration projects focus on the following initiatives: Public transport development, including development o f new bus systems with BRT characteristics in Naya Raipur, Pimpri and Jalandhar (Group B), improvements o f existing bus services and operations in Indore and Mysore (Group B), operation support to the bus services in Pimpri (Group A), improved access to public transport in Pune (Group A), Non-motorized transport development, including cycle track investments in Pune and Naya Raipur (Group A), and comprehensive non-motorized transport improvements for Jalandhar (Group A). Pilot Intelligent Transport System (ITS) application to public transport in Mysore and Indore (Group B). Pimpri-Chinchwad and Naya Raipur (Group A) will also introduce some basic ITS functions to i t s bus operations. Technical Assistance in integrated land and transport development or Transit- Oriented Development (TOD) for Naya Raipur (Group A). Table 1: Participating CitiedStates and Focus of DemonstrationProjects Integrated Non- Intelligent Land and City State Motorized Transport Transport Transport Transport Systems Development '."Y -1. t .... 1 1 A.1 Pimpri- Chinchwad Maharashtra 4 4 4 A.2 Pune Maharashtra M a h R r a shtra 4 J 4 J A.3 Jalandhar Punjab A uJnJJuv I 4 I I I I I A.4 Naya Raipur Chhattisgarh I . 4 4 Madhya B.l Indore Pradesh 4 4 B.2 Mvsore Karnataka 4 4, 7. A detailed description o f each o f the city demonstration projects in all six cities i s included in Appendix 2 to Annex 4. 51 Appendix 1 to Annex 4: UNDP supported National Level Capacity Development India-GEF- UNDP- World Bank SUTP Project 1. The UNDP supported activities are part o f the India-GEF-World Bank-UNDP Sustainable Urban Transport Program (SUTP Program). The UNDP project will support a series o f national level capacity development initiatives to address key institutional and technical barriers which affect the effective implementation o f the National Urban Transport Policy. 2. The project aims at enhancing the capacity o f the national institutions charged with providing technical assistance to India's states and cities in urban transport. This includes (i)Institutional Capacity Development, focusing on strengthening the Institute o f Urban Transport (IUT); (ii) Individual Capacity Development through training o f trainers and o f a group o f about 1,000 professionals at national, state, and city levels; (iii)Identification and development o f technical manuals; and (iv) Promotion, raising-awareness, and dissemination o f information to expand and enhance the impacts o f the GEF-SUTP. 3. Sub-Component 1: Activities under this Sub-Component include: 1) appointment o f Project Preparation Consultant to prepare an action plan for this activity in conjunction with the IUT; 2) development o f knowledge management system for the IUT; 3) design and publication o f technical publication for distribution and dissemination by the IUTI; 4) organizing and conducting workshopdseminars; 5) training o f IUT staff in urban transport and in i t s knowledge management functions. 4. Sub-component 2: Under the auspices o f the IUT, a group o f about 1,000 professionals at national, state and local levels will be trained, utilizing materials already developed by professional organizations such as GTZ, the U.S. Transportation Research Board (TRB) and U S National Transit Institute, the UK's Transport Research Laboratory, France's CERTU, a number o f NGOs such as ITDP, EMBARQ, and CAI-Asia, and other foreign or domestic agencies, as well as courseware to be developed under the Bank and PPIAF- supported urban transport training program. The idea here i s that these 1,000 individuals, including newly hired IUT staff, M o U D officials, and staff from other national/state/city institutions will then be able to mentor and train the next cadre o f experts and so on until sufficient human resources have been developed in the detailed disciplines o f sustainable urban transport. 5. This Sub-Component include the following activities: 1) appointment o f Project Preparation Consultant to prepare an action plan for this activity; 2) preparation o f training material for trainers; 3) selection o f a target audience for the first training and development program 4) training o f trainers; 4) further training 6. Sub-Component 3: This component includes development o f ten high priority sustainable urban transport technical manuals and toolkits, complimenting and expanding upon those already developed under other initiatives funded by the Bank, DFID, GTZ and the ADB. These manuals (see the l i s t on Table 1 below), to be distributed and disseminated by the IUT, have been grouped into four broad blocks by category o f planning/ design activity and user. The various blocks and the suggested manuals and 52 tool kits in each have been listed in the Table 1 below. Activities under this Sub- component include: 1) appointment o f Project Preparation Consultant to prepare an action plan for this Sub-Component; 2) procurement and publication o f manuals and tool kits. BLOCKS MANUALS AND TOOLKITS Block 1: Comprehensive 1. Land-use and Transport: Macro Planning Mobility Planning 2. EnvironmentalConsiderations in Urban Transport Planning 3. Public Participation in Urban Transport Planning Block 2: Detailed Project 4. Sustainable Urban Transport Data Collection and Reports Management 5. EnvironmentalImpact Assessment ~ ~~ ~ _ _ _ _~ ~ _ _ _ _ ~~ ~~ Block 3: Planning and Design 6. Pedestrian-friendlyand Public Transport-friendly Site Planning 7. Urban Street Design for Promoting Public and Non- Motorized Transport Block 4: Operations 8. Traffic Engineering giving priority to Public Transport Management 9. Intelligent Traffic System (ITS) for Public Transport 10. Travel Demand Management 7 . Sub-Component 4: This Sub-component will support promotion, awareness-raising, learning events, and dissemination activities, to expand and enhance the impacts o f the SUTP, again through the IUT. Other national/state/city institutions may be also involved in organizing and delivering particular events. Activities under this Sub-Component will be further defined during the implementation stage. GEF (UNDP) Go1 TOTAL Component 1: Strengthening of IUT 2.26 1.63 3.89 Component 2: Training and Skill 0.80 1.44 2.24 Development Component 3: Manuals, Standards and 1.36 0.25 1.61 Toolkits Component 4: Promotion and 0.00 0.20 0.20 Dissemination Contingency 0.08 0.08 0.16 Component 1A: National Initiatives 4.50 3.60 8.10 53 City: State: Implementing Agency: Pimpri-Chinchwad Maharashtra Pimpri-Chinchwad Municipal Corporation 11. URBAN TRANSPORT Background 1. The city o f Pimpri-Chinchwad i s situated northeast o f Pune across a major river and forms part o f the Pune metropolitan area. It was predominantly an industrial area, but recently there has also been substantial residential development. The establishment o f the Maharashtra Industrial Development Corporation in 1961-62 spurred industrial development in the area, and the establishment o f large-scale core industries has led to the growth o f ancillary and small-scale industries. With a current population estimated at 1.3 million, Pimpri-Chinchwad i s expected to reach about 1.5 million by 201 1 and over two million by 2020. As the city continues to grow, the Pimpri-Chinchwad Municipal Corporation (PCMC) has prepared a City Development Plan which envisions an ambitious road and BRT development program in the next 20 years. 2. Pimpri-Chinchwad i s situated northeast o f Pune across a major river and forms part o f the Pune metropolitan area. Pune i s the second largest city in Maharashtra and i t has also been growing very past in the recent years. The connection between Pune and Pimpri-Chinchwad has become even closer after the Pune Transport Corporation and Pimpri-Chinchwad Transport Corporation were merged two years. ago to form the Pune Mahanagar Parivahan Mahamandal Ltd. (PMPML) which now i s providing public transport services to both cities. Urban Transport Institutions The Pimpri-Chinchwad Municipal Corporation (PCMC) i s responsible for the development o f road and other transport infrastructure in the city; 0 The Pune Mahanagar Parivahan Mahamandal Ltd. (PMPML).is the sole bus service provider in both Pune and Pimpri-Chinchwad. It i s owned by PCMC (40 percent) and Pune Municipal Corporation (60 percent). Central Institute o f Road Transport (CIRT) i s located in Pimpri-Chinchwad, which often offers technical advisory services to both Pune and Pimpri- Chinchwad on urban transport issues. 54 Traffic M o d e Share 3. Pimpri-Chinchwad has about 500,000 registered motor vehicles, o f which 79 percent are motorized two-wheelers, and 12 percent are cars and other light motor vehicles. The traffic mode share o f different modes (displayed in Figure 1 below) indicates a significant portion o f trips are carried out by private vehicles, such as two- wheelers (67.8 percent) and private cars (1 1.6 percent). Buses only carry out less than 5 percent o f total trips. This i s not a sustainable transport system for the city. Figure 1: Vehicle composition in Pimpri-Chinchwad (percent of person trips) ** c 4.2 5.8 1 Walk Bicycle 2W 3W Car Q Bus & mini Bus 1 Source: data provided by Pinipri-Chinchwad Municipal Corporation, 2008 M a j o r U r b a n Transport Problems and Issues 4. The following summarizes some o f the significant transport characteristics o f the metropolitan area 0 Vehicle Growth and Ownership: During 1961 and 2001 the decadal growth rate o f registered motor vehicles was 100 percent and 180 percent. The growth rate i s dominated by motorized two-wheelers, the number o f which quadrupled in last decade resulting in an ownership rate o f 328 two-wheelers per 1,000 population. The developed area o f Pimpri-Chinchwad expanded by a stunning 84 percent between 2000 and 2007, creating an exceptional need for new road construction. .Similarly, there i s a great backlog o f bus supply in Pimpri-Chinchwad. This has been partly addressed in 2007 by the merging of i t s bus services with those o f the Pune bus company, to form the Pune Mahanagar Parivahan Mahamandal Limited (PMPML). Before the formation o f P M P M L there were only about 200 buses serving about 1.2 million populations. This i s less than half the required 480 buses based on commonly accepted norms. Following the recent announcement o f JnNURM financing for buses throughout India, P M P M L i s about to place an order for new buses, o f which 150 would be assigned to services in Pimpri-Chinchwad. 55 Major urban transport issues o f the metropolitan area include: Lack o f coordinated planning and decision-making between Pune and Pimpri- Chinchwad; Absence o f road hierarchy; Narrow rights-of-way o f some o f the existing road network; L o w average speed; Lack and poor quality o f pedestrian facilities; Mixed traffic; Encroachments; Poor public transport services; Inadequate parking supply; Large number o f para-transit vehicles; and Poor-quality access roads to bushailway stations. Road safety i s another serious issue. The rate o f road accidents in Pune and Pimpri-Chinchwad has been leading other cities in India. In 2006, 120 fatal accidents were registered in Pune, much ahead o f even Delhi. Major reasons for the high accident rates are unplanned roads and poor traffic discipline. Urban Transport Policy and Priorities 7. The Comprehensive Mobility Plans (CMP) for Pimpri-Chinchwad envisages that the urban transport sector should permit efficient travel on the roads and afford an effective transport system easily accessible to everyone with the completion o f the following prioritized works: 0 Increased carrying capacity o f roads through widening; Improve riding quality through strengthening and upgrading o f existing roads; 0 Construct new roads to provide missing l i n k s and cater developing areas; inclusion o f segregated BRT busways in the center o f new arterial roads; 0 Establishment o f an integrated bus service (including' BRT) serving both cities; Improve the transport and traffic management systems; Efficient, safe and accessible mass transport system for the entire region; and Geometric improvements in the form o f grades separators, flyovers etc. and installation o f automated signaling system. 8. Pimpri-Chinchwad has established and Urban Transport Fund and plans to implement an innovative land-use strategy under which relatively high-density development will be encouraged along the BRT corridors. 56 111. DEMONSTRATION PROJECT BR T Enhancement in Pimpri-Chinch wad This project would include the following major components for PCMC: Construction o f new road-cum-BRT corridors (1 9 km); On two previously built BRT corridors, passenger access to BRT stations, such as over- and underpasses and improved at-grade crossings; GPS system to control BRT operation. This i s a relatively small addition to a similar component for Pune (see above) and would be implemented jointly with PMC and PMPML; Three bus terminals to serve the previously built BRT corridors; Technical assistance and capacity building, including Transport planning and BRT service plan, fare structure and fare collection, assistance to build up the proposed BRT cell, capacity building and training for PCMC staff; and IV. PROJECT COST AND FINANCING PLAN Component cost Two road-cum-BRT corridors 105.2 Other BRT enhancements 8.5 TA and capacity building 2.1 Monitoring and evaluation 0.8 Contingencies and Price escalation 17.2 Project preparation and management 13.4 SUB-TOTAL 147.2 WB Front-end Fee 0.1 Total NURM Other Indian Sources International GO1 State MoUD Grant Implementing GEF World for TAs Agency Bank 147.3 35.5 17.8 0.9 47.4 1.9 43.8 *World Bank co-financing includes Front-end fee. 57 A2. Pune (Phase 2 City) I.GENERAL INFORMATION City: State: Implementing Agency: Maharashtra Pune Municipal Corporation I I I I 11. URBAN TRANSPORT Background 1. Pune City has always been an important centre o f governance in both the pre- British era and the modern times. It has emerged as an educational and industrial centre o f eminence and attracts large number o f students from other parts o f India, particularly for technical education. During the early 60's and ~ O ' S , Pune became an industrial centre for automotive industries. 2. Due to the location o f eminent educational and research institutions and laboratories o f the Central Government and Defense Department in and around Pune, Pune acquired a critical mass o f scientific community. This social overhead capital along with prestigious educational center o f Pune University created a place o f attraction for establishment o f Information and Communication Technology (ICT) based industries in and around Pune. 3. This latest addition has seen vigorous growth in population o f Pune City in the recent past. From a city ofjust 1.2 million in 1981 the city has grown to a population o f over 2.5 million in 2001at a compounded annual growth rate o f 3.8 percent. The growth in years subsequent to 2001 has been particularly forceful and the city presently accommodates about 3.0 to 3.5 million population. 4. The city o f Pimpri-Chinchwad i s situated northeast o f Pune across a major river and forms part o f the Pune metropolitan area. Pimpri-Chinchwad has also been growing very past in the recent years. Urban Transport Institutions 0 Pune Municipal Corporation (PMC) i s responsible for the development o f road and other transport infrastructure in Pune. The Pune Mahanagar Parivahan Mahamandal Ltd. (PMPML).is the sole bus service provider in both Pune and Pimpri-Chinchwad. It i s owned by P M C (60 percent) and PCMC (40 percent). 0 Central Institute o f Road Transport (CIRT) i s located in Pimpri-Chinchwad, which often offers technical advisory services to both Pune and Pimpri- Chinchwad on urban transport issues. 58 Traffic M o d e Share 5. About 44 percent o f all trips in Pune are made by non-motorized means. The modal share for walk trips and cycle trips are 3 1 percent and 13 percent respectively, whereas public transport share only stands at around 13 percent. Private car ownership is limited, although the number has been growing rapidly in recent years. There i s a large number o f intermediate public transport vehicles in the city, primarily three-wheeled motor-rickshaws. The public bus operator o f Pune i s the Government-owned Pune Mahanagar Parivahan Mahamandal Limited (PMPML). In addition to many traditional bus routes, it operates since 2007 services on a BRT demonstration corridor which, when completed, i s planned to be 15 km long. Figure 2: Urban transport mode share in Pune (percent of person trips) 36% Walk rn Bicycle 0 2W 0 3W Car Bus & mini Bus Source Annex 3 I , Study on India Traffic and Transportation Policies and Strategies in Urban Areas i n India Ministry o Urban Development. India May 2008 f M a j o r U r b a n Transport Problems and Issues Major urban transport issues o f the Pune metropolitan area include: Lack o f coordinated planning and decision-making between the two cities. Absence o f road hierarchy. Narrow rights-of-way o f some o f the existing road network. L o w average speed. Lack and poor quality o f pedestrian facilities. Mixed traffic. Encroachments. Poor performance o f Pune's pilot BRT corridor, compared to international experience. Poor public transport services. Inadequate parking supply. Large number o f para-transit vehicles. Poor-quality access roads to bushailway stations. 59 7. Road safety i s another serious issue. The rate o f road accidents has been leading other cities in India. In 2006, 120 fatal accidents were registered in Pune, much ahead o f even Delhi. Major reasons for the high accident rates are unplanned roads and poor traffic discipline. Urban Transport Policy and Priorities 8. The Comprehensive Mobility Plans (CMP) for Pune envisages that the urban transport sector should permit efficient travel on the roads and afford an effective transport system easily accessible to everyone with the completion o f the following prioritized works: e Increase carrying capacity o f roads through widening; e Improve riding quality through strengthening and upgrading o f existing roads; e Construct new roads to provide missing l i n k s and cater developing areas; e In Pune, upgrading o f public transport through widening o f major roads, dedicated bus lanes; developing high capacity mass transit systems (BRT) etc ; e Establishment o f an integrated bus service (including BRT) serving both cities. e Improve the transport and traffic management systems; e Improve non-motorized transport (NMT) infrastructure and facilities and encourage more people to use more NMT; e Efficient, safe and accessible mass transport system for the entire region; and Geometric improvements in the form o f grades separators, flyovers etc. and installation o f automated signaling system. 111. DEMONSTRATION PROJECT 9. The demonstration project supports both non-motorized transport by infrastructure improvement, primarily on side streets o f major mass transit corridors, and public transport improvement. The Sub-components are: Pedestrian and Bicycle infrastructure improvements in Pune, including the construction o f underpasses for pedestrian access to BRT stations on the pilot corridor. Above all, it includes the construction o f cycle tracks and footpaths. Ample and well-lit space will be provided for non-motorized movement, while mixed traffic lanes would be kept to the absolute minimum; Education and Promotion in Pune. This includes the development and promotion o f a strategy that would help creating the environment for people to use cycles for short to medium distance trips. Improvement o Public Transport. Pune shall develop a project for the f improvement o f public transport within the city o f Pune. 10. The Institute o f Transportation Development and Policy (ITDP, a US-based non- governmental organization), has recently been advising the technicians and consultants o f 60 P M C and PMPML with regard to public transport planning and operations; this advice i s expected to continue during the duration o f the project. IV. PROJECT COST AND FINANCING PLAN Component cost Pedestrianand Bicycle infrastructure improvements 20.1 Education and promotion of N M T use 1.3 Immovement in Public TransDort 41.5 T A and capacity building 1.9 Monitoring and evaluation 0.6 Contingencies and Price escalation 9.7 Project preparation and management 2.9 SUB-TOTAL 78.0 WI3 Front-end Fee 0.12 TOTAL 78.1 Total NURM Other Indian Sources International GO1 I State MoUD Grant I Implementing GEF 1 World for TAs Agency Bank 78.1 0 0 2.9 '25.8 I 1.9 I 47.5 *World Bank co-financing includes Front-end fee. 61 A.3 Naya Raipur (Phase 2 City) I.GENERAL INFORMATION City: State: Implementing Agency: Naya Raipur Chhattisgarh Naya Raipur Development Authority I I I I 11. URBAN TRANSPORT Background 1. Naya Raipur i s being planned and developed at a distance o f about 20 km from Raipur, the capital o f Chhattisgarh. The city covers a total area o f 238.41 sq. km and i s located towards the south-east o f Raipur. The population projection o f the city for the year 2031 i s 5.6 lakhs. 2. The new city i s being planned to serve as an engine o f growth for the region o f Chhattisgarh that will be a hub for business and industries with SEZs, other small-scale industries, a logistic hub, hospitality business and a centre o f education and research. It would also become a major centre for cultural and recreational activities. 3. The Naya Raipur city i s well connected by four major roads viz. NH-6, NH-200, NH-43 and SH-5. The railway line almost runs parallel to the National and State highway and the proximity to the existing airport that falls between the Naya Raipur and Raipur city is an added advantage for the growth potential o f the new city. 4. The demand assessment for the city o f Naya-Raipur has been projected based on the demographic profile in 203 1. I t has been prepared by integrating the land use plan and interlinking o f all the activities to enable high accessibility and smooth flow o f people, vehicles and goods on an equitable and affordable basis. Urban Transport Institutions 5. According to the Master Plan, the Naya Raipur Development Authority i s going to provide public transport services to the city when developed. Traffic Mode Share 6. N o traffic data i s available for Naya Raipur as the city is being developed. Below i s the traffic mode share with regard to Raipur. 62 Figure 3: Modal Share Inter-City Modal Share-inter City rWalk, 0, 0 % -Bicycle, 0 , 0% I Cars and 2 Wheeler, 50, 46% IPT, 12, 11Yo Figure 4: Modal Split Intra-City - Modal Split intra City Bus LRT '0% \, 10% Walk LUYO 24% M a j o r Urban Transport Problems and Issues 7. Naya Raipur i s a complete new city. The major transport issue that i s expected to arise when the city i s developed i s that o f connectivity between the old and the new Raipur, as many people will commute between the two cities. H o w to provide adequate and good quality public transport to prevent people from depending o n personal motorized vehicles and also provide mobility to the poor i s a big challenge to the city. Urban Transport Policy and Priorities 8. The inter-city and intra-city public transport. system envisaged for Naya Raipur clearly focuses o n the needhequirement o f a public mass transportation system that i s efficient and cuts down the usage o f personalized modes o f transport systems. 9. The urban road traffic o f the existing Raipur city i s heterogeneous in nature i.e. a mixture o f fast and slow moving vehicles. Since the city o f Naya Raipur is planned to reduce the pressure o f Raipur city and i s also projected to be a major economic generator through various industries, i t poses a great challenge for the city planners/managers to prevent/avoid the prevailing concepts o f mixing up o f different classes o f vehicles thereby affecting the speed, capacity and the quality o f the roads in the city. In such 63 scenarios, the road networks in future will not be able to cope up with the rapid increase in vehicular traffic. 10. Hence, planning an effective environment and people-friendly mass rapid transit system from the very beginning becomes extremely critical. In addition to avoiding congestion o n the city roads, this also helps in reducing roads accidents that occur due to unplanned transportation systems and supporting infrastructure facilities. 11. As a planned city in i t s early stages o f implementation it would have fewer hurdles than elsewhere and the project will be launched o n a fast track basis. 111. DEMONSTRATION PROJECT 12. Recognizing the importance o f integrating urban transport planning with infrastructure investment in the initial stages o f city development, the N e w Raipur Development Authority (NRDA) has proposed a BRT system (BRTS) as well as bikeways for all major arterial routes o f the city spanning over the year 2031. GEF supports the physical investments for the initial BRT corridors and for bikeways in Naya Raipur, and provides technical assistance o f a Transit Oriented Development study. 13. Implementation o f BRTS. This Sub-Component support investment o f about 2 1 km o f BRT system, covering the central spine o f the new city and the expressway link with Raipur via NH-6. Activities include investment in bus lanes, rolling stock, transfer stations and information system. 14. TA for Transit Oriented Development. Apart from the new State Government building complex, the current master plan for Naya Raipur envisages a relatively low- density city which i s expected to be best served by cars and motorized two-wheelers. The GEF Sub-Component will examine possible modifications to the master plan which would be more conducive to public transport use. IV. PROJECT COST AND FINANCING PLAN Table 5: Proiect Cost (in million US$) Component cost Implementation o f BRTS ( For Phase 1) 28.85 Additional lanes on proposed road networks for providing dedicated roads for BRTS (about 7Km) 7.2 1 Cycle tracks and pedestrian walkways 7.85 Rolling stock including BRT Buses and Feeder Service -Mini Buses 6.67 Bus Stops / Bus Shelters 0.46 Bus Terminals 2.08 Bus Depots 1.88 Traffic safety system for N M T 0.2 1 GPSPIS System and ticketing system 1.04 64 Component cost Control and Information Centre (Including O f f Board ITS) 1.46 Contingency and Price Escalation 4.43 TA for Transit Oriented DeveloDment 0.21 Capacity Building Activities 0.48 Project Preparation 1.56 Implementation Expenses & Monitoring and Evaluation 1.79 SUB-TOTAL 37.3 WB Front-end Fee 0.03 TOTAL 37.40 NURM Other Indian Sources International GO1 State M o U D Grant Implementing GEF World Bank for TAs Agency 7.0 0.77 0.17 13.6 1.9 14.0 65 Group B Cities B.l INDORE (Phase 1 City) I. GENERAL INFORMATION City: Indore State: Madhya ImplementingAgency: Pradesh Indore City Transport Services Limited I I I I 11. URBAN TRANSPORT Background 1. Indore i s a commercial and industrial hub o f central India. The Indore metropolitan area extends over 504.87 sq k m s and consists o f Indore Municipal Corporation, four towns and ninety villages. I t s population was around 1.7 million in 2001 and i s projected to grow to about 3.7 million by 2021. 2. The economic growth and improvement o f livelihoods have changed Indore's urban transport patterns as in many other cities in India. I t s number o f registered motor vehicles has been growing at 8.8 percent per annum from 1993 to 2000, with growth rates in two-wheeler and taxi/car higher than ten percent. Private vehicle use has become the major trip mode followed by walking and public transport. 3. A Public Private Partnership model for public transport has been successfully implemented in Indore since 2005, with the creation o f the government-owned Indore City Transport Services Limited (ICTSL) which plans and supervises bus services, but contracts out all operations o f bus services to private operators. Currently ICTSL has 84 newly purchased buses operating on 24 routes with automatic fare collection, which has significantly improved public transport accessibility in the city. 4. The city i s facing traffic congestion, inadequate physical infrastructure investment, unorganized parking and lack o f an integrated public transport and para- transit service. Growth o f motor vehicles, absence o f road network hierarchy in urban transport planning, lack o f enabling policy, and inefficient traffic management are some o f the major reasons. Urban Transport Institutions Indore Municipal Corporation (IMC) i s responsible for the provision o f road infrastructure and services. Indore Development Authority (IDA) i s responsible for overall development planning. Indore City Transport Services Ltd. (ICTSL) i s responsible for the provision o f bus services. 66 Figure 5: Traffic Mode Share i M a j o r U r b a n T r a n s p o r t Problems and Issues 5. Major urban transport issues o f the city are summarized below: Inadequate circulation pattern in the central area. 0 Inadequate public transport. On-street and unorganized parking causing congestion and blocking sidewalks. 0 Encroachments on roads and sidewalks reduce the carriageway width, contribute to congestion, and force pedestrians to walk on the street. Mixed traffic conditions hinder public transport. 0 Lack o f traffic engineering result in poor geometric road design. U r b a n T r a n s p o r t Policy and Priorities 6. The City Development Plan (CDP) for Indore outlines the framework for investments in traffic and transportation over the planning horizon to 2021. I t includes a comprehensive traffic and transportation master plan to identify investment needs. The master plan envisages road and intersection improvements o f 60 percent o f city roads, road infrastructure upgrading, an efficient traffic management and public transport system and, significantly, introduction o f an integrated mass transport system. With regard to the last item, a comprehensive Bus Rapid Transit System has been approved; consisting o f seven corridors with an overall length o f 109 km. Operation activities are under development to achieve the above objectives. 7. Currently a number o f investment projects are under implementation within the context o f the CDP. This includes: 1) Physical infrastructure development projects as identified in CDP. 67 2) Reconstruction and widening o f A.B. Road, crossing the city from the north to the south and including the first BRT corridor. I t i s expected that pilot BRT services will start in 2010 along about 12 km o f segregated busway. 3) Other public transport service development projects, such as urban bus service expansion and improvement under ICTSL. 111. DEMONSTRATION PROJECT 8. With a view to improve the usage o f public transport and support the BRTS which i s under construction, two projects are envisaged under GEF SUTP, namely Traffic Signal Prioritization and Automatic Fare Collection. Sub-components o f the projects are mentioned below: Traffic Signal Prioritization along BRT Corridor Traffic signal co-ordination along the corridor with adaptive signal control systems which coordinate control o f 46 traffic signals, adjust the lengths o f signal phases based on prevailing traffic conditions, and give priority to BRT buses approaching on the busway. Centralized Traffic Control Center where the 46 upgraded traffic signals will be monitored and controlled. Traffic Surveillance and Detection System with Sensors/Cameras to Monitor Traffic Flow. Interface with GPRS and Passenger Information System. Automatic Fare Collection System (AFCS) for Integrated Public Transport Off-Board Fare Collection Mechanism for BRTS and Both O n and O f f Board Fare Collection for ICTSL Standard Buses. Fare integration and extension o f services to proposed radio taxi, autorickshaws, IPT's, parking tolls, etc. Central Computer System Depot Computer System Ticket Office Terminal - to issue contactless smart card, add value and enquiry centers Call Center for Card Holders Interface with GPRS and Passenger Information System 9. It i s proposed that bus fares will be collected b y a private company on behalf o f ICTSL. I t i s envisaged that this company would be contracted for a period o f about ten years and be responsible for the supply, installation, maintenance and operation o f the AFCS, and provide the personnel required for collecting the fares. This kind o f fare collection contract, often under a concession, has been shown effective in other countries and i s also planned for the AFCS o f Ahmedabad. 68 IV. PROJECT COST AND FINANCING PLAN Total NURM Other Indian Sources International cost GO1 I State MOUD Grant I Implementing GEF I World for DPRs, TAs Agency Bank 10.0 5.9 0.6 0.2 1.4 1.9 0.0 69 I.GENERAL INFORMATION ImplementingAgency: Mysore Karnataka Karnataka State Road Transport Corporation 1 1 . UFU3AN TRANSPORT Background 1. Mysore i s a heritage city famous for palaces and major tourist destination. It i s fast developing as a satellite city o f Bangalore, emerging as a centre o f commercial, industrial, educational and research activities. 2. The population has been increasing at a compounded annual rate o f 2.5 percent in the last two decades, which i s higher than the population growth rate for the state o f Kamataka. As per 2001 census, population o f Mysore i s 7.86 lakhs, mainly attributable to industrialization l i k e automobile and engineering. Urban Transport Institutions 3. The Karnataka State Road Transport Corporation (KSRTC) provides public transport (bus) services to the city o f Mysore. Figure 6: M o d a l Share of Person Trips in Mysore I Mysore Modal Split Cycle & Other 17% ._ I alk 33% Auto-Rickshaw 14% Bus 1 2 Wheeler 22% Car 1% M a j o r Urban Transport Problems and Issues 4. Following are some o f the significant transport characteristics o f the city: 0 Growth in Vehicle Ownership: In last ten years, number o f registered vehicles has doubled in Mysore with annual growth rate o f eight to nine percent. The current 70 vehicle fleet i s about 0.35 million, with motorized two-wheelers constituting 80 percent o f the registered vehicles. Trip and Travel Pattern: About 0.57 million passenger trips are generated each day within urban limits. Home to work trips constitute 23.2 percent , home to education trips 19.5 percent, home to shopping trips 2 percent and non-home base trips 5.4 percent .Recently conducted surveys as part o f CDP indicate that 21.7 percent o f trips are conducted by motorized two-wheelers followed by 17 percent by bicycles and other slow vehicles and 12.7 percent by bus. 5. Major urban transport issues o f the city are summarized below: Slow moving public transport: The current public transportation system i s not fast enough to accommodate the needs o f citizens o f Mysore. Heterogeneous traffic: Presence o f slow moving and fast moving vehicles o n the same lane o f a road presents a hazard o f collisions Increased traffic density resulting in bottlenecks. M a i n cause i s the growing number o f private motor vehicles Increase in rate o f accidents Urban Transport Policy and Priorities 6. Mysore i s one o f the cities which are eligible for assistance under the JNNRUM. The vision o f the CDP for Mysore i s that, at the end o f the ongoing interventions, Mysore will have a more efficient, affordable, integrated and safe transport system, which would meet the needs o f all its citizens and visitors. Congestion on main roads will be managed by a combination o f traffic engineering, capital work projects and controls (zoning etc). 7. The city recognizes the importance o f an effective and affordable transportation system to the surrounding tourist destinations, internal movement and to the capital city of Bangalore. Priorities for improving the transport facilities as included in the CDP are: Completion o f the outer ring road and converting the same into four lanes; New road additions (internal, extension areas and radial); Introduction o f a mass rapid transport system (Bus Rapid Transit); Hop in hop o f f tourist shuttles are also proposed for better mobility; Construction o f bus/truck terminals; Construction and maintenance o f footpath and medians; and More emphasis on safety related maintenance and upgrades on congested roads. 111. DEMONSTRATION PROJECT 8. This project supports the CDP in promoting a sustainable urban transport in Mysore. Subprojects include an Intelligent Transport System (ITS) t o improve bus operations. 71 9. Intelligent Transport System (ITS). ITS subproject i s designed to improve operational and managerial efficiency in the bus transport system. Activities in this Sub- component includes: 1) establishing a centralized traffic control center to handle the operational requirements o f traffic management; 2) introducing GPS services in city bus fleet (500 buses) to monitor the bus movement; 3) introducing LED display boards at all the bus-stops (80 stops) o f the city to provide real time information about bus operations; 4) introducing public information system (announcement system) inside 500 buses; 5) installing plasma display screens for checking the arrival and departure o f buses at two main bus stations; 6) introducing commuting buses and smart cards to reduce the ticket transaction time; 7) introducing information services to traveling passengers through SMS, PDA devices. 10. Project Management Consultants. KSRTC plans to outsource the supervision of ITS installation and charge the costs (estimated at 9.4 million Rupees) to the project. IV. PROJECT COST AND FINANCING PLAN Component cost ITS to improve bus operations 3.8 Centralized traffic control center 1.4 Display system 0.9 Facility management charges 0.6 TA for ITS application in transit operations / Citizen Report Card 0.2 Other ITS costs 0.6 Contingencies and Price Escalation 0.63 Monitoring and evaluation 0.42 TOTAL 4.8 Total NURM Other Indian Sources International cost GO1 State M O U D Grant Implementing GEF World for DPRs, TAs Agency Bank In 4.82 2.1 0.03 0.17 0.63 1.9 0.0 million 72 State: Punjab Jalandhar Municipal corporation aekground I. Jalandhar was the capital o f Punjab from India's independence in 1947 until Chandigarh was built in 1953. Located o n the intensively irrigated plain between the Beas and Sutlej rivers, the city i s a market for agricultural products. I t s manufacturing products feature textiles, leather goods, wood products and in particular sports goods. I t i s a highly industrialized center being India's foremost producer o f world class sports equipments. Jalandhar accommodates a population o f about two million, h a l f o f which i s urban population as per 2001 consensus. The city i s well connected with road and rail network. It i s about 350km from Delhi o n Delhi-Amritsar Highway and about 90 km to the Raja Sansi Airport. 2. The primary responsibility for transport infrastructure in Jalandhar i s with the Jalandhar Municipal Corporation (JMC). Other agencies responsible for some categories o f roads and highways are P W D and NHAI. In an effort to provide public transport in the city, a new bus service along the lines of the Indore I C T S L model involving private participation has been recently introduced. JCTSL has been incorporated as the bus company with ownership o f J M C and Punjab Infrastructure Development Board. The Board o f the company has representation from the City Traffic Police, District Transport Office, Municipal Corporation and the District Administration. Figure 7: Traffic ____ _____~ Walk rn Bicycle 2W o 3W Car rn Bus & mini Bus rn Truck + MTV+ LW _ _ _ _ ~ _ _ _ ~ _ _ _ . ~ -2 73 M a j o r Urban Transport Problems and Issues 3. Urban transport in Jalandhar i s characterized by heterogeneous traffic with inadequate right-of-way. There i s inadequate provisioning for pedestrians and cyclists along major arterial and sub-arterial streets despite a significant share o f traffic being non-motorized. Where footpaths and medians exist they are poorly maintained. The road width for arterial streets passing through the center o f the city in some cases i s much less than the standard width for urban arterial roads. Most o f the atterial and sub-arterial road system does not have uniform right-of-way. Such problems have resulted in increasing traffic congestion, reduced personal mobility and posed threat to passenger safety and health. In an effort to address the situation, a new bus service along the lines o f the Indore ICTSL model involving private participation has been recently introduced. Urban Transport Policy and Priorities 4. N o previous study undertaken till now. Since it i s not a city identified under JNNURM neither a CDP nor a C M P has been prepared. However, the municipal corporation i s developing a city-wide NMT plan in order to promote walking and cycling in the city. 111. DEMONSTRATION PROJECT 5. Considering the current urban transport scenario and problems, the GEF demonstration project for Jalandhar aims to introduce, improve and enhance the pedestrian infrastructure in the city o f Jalandhar. This project has the following objectives: 0 emphasis on energy efficiency, physical safety o f most vulnerable mode o f transport, 0 giving importance to most neglected elements o f traffic, 0 integration o f pedestrians and cyclists in land use distribution, and 0 providing opportunity for physical well being besides transport needs. 6. Based on these objectives, the Jalandhar GEF demonstration project will include the following sub-projects: Development o public transport and non-motorized transport facilities. This f project includes development o f bus priority lanes, construction o f varying width footpath and cycle track along various roads in the city, improvement o f roads and junction geometry, utilities and ancillary facilities. A TA program for promoting sustainable urban transport in the city. The following TA activities have been identified: (a) Development o f Comprehensive Mobility Plan for Jalandhar. (b) Formulation and implementation o f a Parking Policy. 74 (c) Development and implementation o f a NMT & PT Promotion Strategy. (d) Development o f short-term and long-term business plans for the City Bus Services. (e) Citizen Report Card (user satisfaction survey)(f) Monitoring and Evaluation o f the project implementation and final results. 7. The Jalandhar Municipal Corporation, through the Government o f Punjab State (GoP), has requested for an IBRD loan to finance the investment activities under the project. However, the GoP has not obtained the debt sustainability clearance from the Department o f Expenditure, Go1 b y negotiations, and therefore GoP i s not allowed to borrow the IBRD loan from the Bank until they obtained that clearance. The following has been agreed with the Go1 and GoP: a. the Bank will only provide GEF grant to finance the TA activities o f this project; b. the GoP will use i t s own funds to finance the investment activities; c. but all activities o f this project will comply with all applicable Bank policies, as agreed in the Project Agreement to be signed between the Bank and GoP; d. After GoP obtains the debt sustainability clearance, Go1 may discuss with the Bank for the IBRD loan through additional financing for this project. IV. PROJECT COST AND FINANCING PLAN Table 11: Project Cost (in million US$) Component cost Development of NMT Facilities (Footpaths and cycle tracks) Public Transport and NMT including Footpaths, cycle tracks, bus priority lanes, improvement o f roads and junction geometry, utilities, ancillary facilities I Traffic Signals I I 45*5 1.46 I I I Total I NURM Other Indian Sources International GO1 State M o U D Grant Implementing GEF World for TAs Agency Bank 59.5 0.0 49.0 4.02 4.55 1.90 0 75 Annex 5: Project Costs INDIA: Sustainable U r b a n Transport Project Project Cost by Implem. GO1 State MOUD PIA GEF IBRD Total Components($ million)* Phase TA Loan** A.2 Pune Phase 2 0.0 0.0 2.9 25.8 1.9 47.3 78.0 Phase 2 7.0 0.8 0.2 13.6 1.9 13.9 37.3 B.2 Mysore Phase 1 2.1 0.0 0.2 0.6 1.9 0.0 4.8 Total Financing Requested 53.2 68.1 8.4 93.3 20.33 105.23 348.7 * Physical and price contingencies are all included. ** The IBRD loan for 3 Group A cities o f Component 2 i s being processed separately under a parallel loan project. Project Costs by Consultancy Services and Trainine - .-. .. . . .0 7.1 7.8 Component 2 % 8:4- .. 11.4 . 93.3 . ' A '104.97 36.8 Civil Works 35.9 58.7 0.0 0.0 57.8 86.4 238.8 Goods 12.8 2.8 0.0 2.3 1.3 3.1 22.3 Consultancy Services and Training 1.8 0.0 8.4 , 6.9 16.4 0.0 33.5 M&E 0.0 0.0 0.0 2.2 0.0 0.0 2.2 Contingencies 0.0 4.4 0.0 0.0 11.8 10.3 26.4 Price Escalation 0.0 2.2 0.0 0.0 6.1 5.2 13.4 2.0 2.0 Consultancy Services and Training 1.5 1.5 M&E and incremental cost 0.5 0.5 Total Base Cost 53.2 68.1 8.4 18.4 93.3 104.97 346.5 Total Financing Requested 53.2 68.1 8.4 20.3 93.3 105.23 348.7 76 Annex 6: Implementation Arrangements INDIA: Sustainable Urban Transport Project 1. Steering Committee and PMU. The SUTP Steering Committee under the chairmanship o f the Secretary, MoUD, Go1 has been constituted and consists o f senior officers from MoUD, DEA, MoEF and other relevant Ministries. The Steering Committee will guide and oversee the implementation o f the SUTP (see Figure 1 for the overall structure o f project management). 2. The Steering Committee will oversee the implementation o f SUTP through the P M U (set up at M o U D with logistics support from IUT). The P M U i s headed b y a senior officer o f MoUD, who i s in charge or urban transport and also the Member Secretary o f the Steering Committee. The P M U also comprises a full time SUTP Project Manager, a Transport Specialist, a Finance Manager, several supporting staff, and a Project Management Consultant team. The P M U will be responsible for overall management o f the SUTP, including the following responsibilities: Plan, program and execute SUTP and provide advisory and technical assistance to the participating cities in project preparation and implementation. Manage the implementation o f Component 1 o f SUTP. Evaluate and appraise the projects submitted by the participating project implementingagencies and advice the Go1 to take decisions and accord approvals. Coordinate the activities among the many project implementing agencies, the State Government and other Ministries o f Go1 to ensure on-time implementation. Monitor progress o f project activities during the project period, compile project reports prepared b y cities, conduct FM and technical audits as per TORS to be finalized, ensure compliance with Operations Manual, and take necessary actions wherever required. Provide endorsement to fund request from cities if they prove to comply with the project Participation Agreement. Provide training for P I U staff to ensure they will properly follow the Operations Manual requirements. Evaluate the outcomes o f the projects being implemented under the three components and suggest how these can be formalized in the urban transport planning process in India. Complete the processes required for closing the project after i t s implementation at the end o f project period. Project Management Consultant (PMC). The P M C i s expected to provide technical assistance to the P M U in all aspects o f project management required for the effective implementation o f all three components o f SUTP. The P M C team comprises a Team Leader/Transport Specialist, a Procurement Specialist, a Social Development Specialist, an Environment Management Specialist, a Training/Institutional Development Expert, and an Information Specialists. In addition to desk reviews and maintaining the project M&E system at PMU, the PMC will carry out site visits (at least four times a 77 year) to verify project information provided b y PIUs, inspect quality o f project implementation, and provide on-site capacity building support. 4. Implementation o Component 1. The P M U will be also responsible for f implementation o f all activities under the Component 1, including procurement, financial management, as well as monitoring and evaluation. 5. Implementation o Component 2. The participating state governments, through f their designated Implementing Agencies (PIAs), will be responsible for implementation o f their city demonstration projects (as listed in Table l), including procurement, financial management, social and environmental management, as well as monitoring and evaluation. P M U at M o U D will provide overall project management services for all PIAs (as discussed in detail in Paragraph 1). Figure 1: Overall Implementation Arrangements for SUTP (Note: the diagram also includes the parallel activities to be supported by UNDP) State Governments ---------- + SUTP Steering Committee A A I I I I I I I National Project Director I I MoUD I I A I I I I I I V I PIAs --__----- PMU . --------': ,_____._._._______ IUT 1 4- (Municipal A 4 ._.....__._____..., Corporations, etc) I I I I I I 4 I I PMC I 1111.11 I I . .4.1.- . . ..............I 1 PIUS ~ UNDP-supported ~ Component 2 Component 1 Activities - :_____..__._________________._.___.______I ExecutiodClearance flow ---- -- - - - + Reportinghformation flow 78 6. Project Implementation Units (PIUs). Each PIA has set up a P I U to manage the day-to-day project implementation activities. The PIUs will be responsible for monitoring and evaluation o f the respective city projects and submit quarterly progress reports to P M U . Each P I U consists o f a project manager who i s supported by, at least, a Transport specialist, a Financial Management officer, a Procurement officer, and a Social/Environment officer. As most o f the P I A s are also JnNURM implementing agencies, it was agreed that the PIUs for SUTP can utilize the existing implementing units set up for J n N U R M (National Urban Renewal Mission) projects and their staff. City State Projects I Implementing Agencies A . l Pimpri- Pimpri-Chinchwad Maharashtra 1. Pimpri BRT Development Chinchwad Municipal Corporation Madhya 1. Automatic fare collection Indore City Transport B.1 Indore Pradesh 2. Signal priority for BRT Services Limited 1. ITS improvements on existing bus Kamataka State Road B.2 Mysore Karnataka services Transport Corporation 2. Ethanol-diesel infrastructure 1. Non-Motorized Transport (NMT) Pune Municipal A.2 Pune infrastructure and access to Bus Rapid Corporation Maharashtra Transit (BRT) 2. Pune Public Transport Improvement A`3 Nays Naya Raipur Chhattisgarh 1. BRT (including NMT) Development Raipur Development Authority 1. Promotion o f NMT/Public Transport Jalandhar Municipal B.3 Jalandhar Punjab Development Corporation 7. Phased Implementation. T o ensure quality o f the preparation and implementation o f city demonstration projects, a two-phase approach has been introduced to the project design. Participating cities are grouped into Phase 1 cities and Phase 2 cities, based o n the implementation readiness o f their projects. Phase 2 cities will not be allocated funds until their project designs are completed and appraised by the Bank. Performance-based criteria for excluding non-performing statedcities and re-allocating funds f r o m them to other stateskities will be agreed by Negotiations and included to Project Agreements. 8. Monitoring and Quality Assurance. Each city project has an M&E component which will be carried out either by P I A s o w n staff or by consultants, following the M&E framework developed by P M U for each city. In addition to general oversight o n the project implementation carried out by the concerned state departments (Department o f Urban Development in a l l states except Kamataka where the Department o f Transport will be responsible), PMU will also monitor the key milestones o f each city project and coordinate overall implementation o f all city project at the national level (see details in Annex 18: Supervision Strategy). P M U will provide necessary technical assistance and training to participating states and cities, etc. (as defined in the paragraph 7 above). 79 9. Technical Audit. P M U will conduct technical audits on the city projects to ensure the project implementation meets certain quality requirements. This technical audit could be carried out by the PMC or by the same firm that i s contracted for the internal FM audits. The TORi s being drafted and will be ready b y Appraisal. 10. NGO/Third Party Monitoring. The city governments in some project cities, such as Pune and Indore, have engaged several local and international best-practice NGOs, such as ITDP and EMBARQ, to participate in the project formulation, preparation and implementation, and have achieved positive results (refer Annex 6). The Bank has recommended to the city governments that it would be desirable to involve the NGOs, especially the professional NGOs in the implementation o f SUTP demonstration projects. The NGOs will play a technical advisor's role in project cities and provide prompt technical advice to help these cities address technical issues during the project implementation. The NGO/third party monitoring will supplement the periodic technical audits to be carried out by P M U and Bank's periodic supervision. 11. State Government's role in Project Implementation. At the state level, SUTP execution will follow the same procedures set up for JnNURM. All city projects will be sanctioned by the state governments before M o U D clears them. During the project implementation stage, the PIAs will be fully responsible for implementation, including carrying out procurement activities and making payments. The JnNURM committee o f the state government will monitor key milestones o f city projects. For minor variation in project scope and costs, PIAs do not need to go to state governments for approval, but state governments need to be informed. 12. Operations Manual. The P M U has developed a draft Operations Manual (OM), which contains detailed requirements and procedure for project preparation and implementation. The draft O M has been consulted with all PIAs and their comments have been incorporated in the final OM. The final O M has already been approved by M o U D before negotiations. 13. Participation Agreement. After selecting demonstration cities, M o U D has sought commitment letters from all participating states which agree to fully support implementation o f the city demonstration projects in accordance with the requirements o f the SUTP. Prior to project Appraisal, M o U D intends to sign a SUTP Participation Agreement with each participating state and their designated project implementing agencies. Besides basic requirements for the project, the Participation Agreement includes commitment to five major reforms required by the JnNURM and the National Urban Transport Policy: a. Constitution o f Unified Metropolitan Transport Authority b. Preparation o f Comprehensive Mobility Plan c. Formulation o f parking policy d. Formulation o f advertisement policy e. Setting up o f the dedicated funds for urban transport 80 14. I nformation Disclosure. The Operations Manual includes a Disclosure Policy for the SUTP, which requires MoUD, P M U and all project implementing agencies at state level to promptly disclose the project related information as per India's Right to Information Act (RTIA) and the World Bank requirements on information disclosure. The Disclosure Policy for the SUTP specifies the project documents to be disclosed, the media, the timing and frequency for disclosure, and the responsible agencies and officers. The Bank and the M o U D will conduct j o i n review o f the implementation o f the policy to ensure full compliance to the policy. 15. Capacity Building for PMU and PIU Stafi The P M U will develop an annual training plan for all staff at national and local level involved in the SUTP, based on specific needs o f the project activities in which the individual staff will be involved. The training will focus on the utilization o f the Operations Manual, helping project staff understand requirements and tools/measures for public transport and non-motorized transport planning, social and environmental management, procurement, financial management, contract management, as well as public consultation and information disclosure. 16. Review o Project Implementation Arrangements. To enhance the capacity f building impact and also mitigate the risks associated with currently weak capacity in most o f the participating cities, the Bank and M o U D will carry out a joint review o f the project implementation arrangements at the end o f the first year o f project implementation and then during the mid-term review. The subject to be reviewed includes the state and city's commitments, the organizational structure for implementation, effectiveness o f the GAAP, supervision and M& E arrangements, and other issues may arise during project implementation. Necessary changes may be agreed and made for the remaining period o f project implementation. Allocation o f funds to cities may also be adjusted based on commitment and performance demonstrated b y each Implementing Agency. The joint review may recommend dropping those cities with l o w commitment and poor performance from the Project. New cities may also be included following the due selection process. 81 Annex 7: Financial Management and Disbursement Arrangements INDIA: Sustainable Urban Transport Project . I Financial Management Capacity Assessment 1. This FM assessment i s based on the capacity assessment o f six Project Implementing Agencies (PIAs) for implementation o f Component 2 and P M U (MoUD) for implementation o f Component 1. The assessment was conducted after examining the current financial management and accountability arrangements at six state level PIAs comprising three Municipal Corporations (Jalandhar, Pune and Pimpri-Chinchwad), one Development Authority (Naya Raipur), one company (Indore City Transport Services), and one State Road Transport Corporation (Mysore) and holding consultations with MoUD. The FM assessment evaluated the prevalent systems for budgeting, accounting, internal and statutory audit and internal controls in the six PIAs. I t found that capacities and legal status o f all the PIAs were different. Since capacity and legal status varies between implementing entities, the assessment identifies the minimum acceptable fiduciary standards that would be considered appropriate for the purposes o f the GEF grant. 2. This assessment concludes that subject to the following minimum procedures and oversight, FM arrangements are satisfactory to support the GEF grant: 0 Maintenance o f separate accounts o f the project at the PIAs covering all sources and uses o f funds, expenditures and flows relating to the sub projects which receive any funding through GEF. Submission o f accounts (including Interim Unaudited Financial Reports (IUFR)) o f all PIAs to a centralized internal audit. 0 Receipt by the Bank o f audited annual accounts which have been reconciled with the IUFR which are to be used as a basis for disbursements 0 Presence o f Accountants (with qualifications and experience acceptable to the Bank) at all the PIAs. 3. P M U (MoUD) would extend oversight over the PIAs, while the actual implementation responsibility i s that o f the PIAs and the concerned state government. Funds for the project will flow through the budget o f the Ministry o f Finance (MoF) to state treasuries and from there to PIAs. For Component 1 funds will flow through the budget o f M o U D to the PMU. The grant will finance the project through an intial advance o f $2 million and reimburse every six-month based on actual expenditure requisitioned through IUFRs. These IUFRs will be submitted separately for every PIA. IUFRs shall be reconciled with the Audited Financial Statements (AFS) annually and disallowed expenditures will be recouped. 4. The statutory audit o f the PIAs will be carried out by the C&AG through i t s offices in the respective states in accordance with the agreed TOR. 82 11. Summary Project Description 5. Refer to Annex 4 Project Description. 111. Country Issues 6. Country issues relevant to this project are: Varied capacity in PIAs participating in the proiect and capacity weaknesses in some PIAs: The FM assessment for this project and previous diagnostic workI4 undertaken by the Bank suggest capacity weaknesses in small and medium Urban Local bodies, some o f which will be implementing agencies for this project. Since PIAs are disparate legal entities, there are significant differences in statutory requirements, which also contribute to differences in financial management capacities, practices and standards. The common weaknesses are incomplete accounts (including bank reconciliations in some cases), delays in finalization o f audit and inadequate staffing. These weaknesses have been mitigated in the project by putting in place accounting, reporting and control systems for sub projects, which will be overseen by the PMU. Another relevant country issue i s the long time taken to pass funds to implementing entities through state treasuries which has been the experience in JNNURM. This could be mitigated through establishment o f a performance standard for passage o f funds to PIAs from state treasuries in the Participation Agreements. IV. Strenkths Development o f FM section in the Operations Manual which sets out all the policies and procedures on FM i s a distinct strength o f this project. The presence o f qualified Accountants at all the PIAs would be a strength. The institution o f a robust Internal Audit function would also be a strength. V. Weaknesses: The fund flow to PIAs would be from the Go1 through the state treasuries as it i s a state sector project. This could lead to an issue o f timeliness in the fund flow from the states to the PIAs which would be mitigated through agreeing for a timeline for transfer o f funds from the state to the PIA. As the project i s being funded by multiple agencies (IBRD, GEF, GoI, State and internal funding from PIAs) the availability o f funds from all sources in a timely and coordinated basis could be a constraint. As the project i s dealing with third tier o f government it poses challenges in terms o f co-ordination and reporting on a timely basis. This could be mitigated by effective oversight and coordination by the state government. l4Synthesis Study O f PFMA I n Urban Local Bodies 83 VI. Risk Assessment and Mitigation. Risk Remarks (mitigation strategies) * Residual Risk Rating after Mitigation INHERENTE PK Country M Level Entity Level H - Reflects the risk o f implementation associated with six separate PIAs S ( Reflects the with central oversight and management through PMU. oversight risk o f the PMU at *Mitigation -PMU to be strengthened through hiring o a Manager f MoUD, since (Finance). Oversight role o State Governments will be documented in the f the PMU i s a Legal Agreements. new entity) Project Level H -Reflects the risk of six different implementing agencies, which have S (six different different capacity; there are significant weaknesses in some PIAs in implementing accounting, staffing and audit arrangements. agencies) *Mitigation-Minimum acceptable financial management standards to be set out in the FMsection in OM. H S Budgeting H -Budgets based on DPRs will be prepared by the PIAs and approved by S MoUD. Risk reflects weaknesses in PIA capacity for budget preparation and the risk of the PIAs' budget not being updated in state budget. *Mitigation - FM section o OM to document budgeting processes. Finance f professionals to be either hired or designated at the PIAs toprepare budgets andpeflorm other FMfunctions. PIAs to be made responsible for ensuring that annual State government budgets include PIA'S annual budget requirements in their budgets. Accounting H - Reflects weaknesses in some PIAs in accounting function. Some PIAs S had incomplete accounting records, others had weak capacity for accounting, and in some the process o f switchover from cash to accrual accounting i s being undertaken, thereby necessitating dual accounts. f *Mitigation - Books o Account for IBRD/GEF sub projects to be separately maintained apropos FM section o O M by professional Accountants. f Internal S - While documented controls are good, practices tend to be weak. M Control *Mitigation - FM section o O M to document control processes. Robust f Internal audit to be in place within three months o effectiveness. f Funds Flow H- Funds flow to PIAs through state treasuries has been known to be S delayed for JnhWRM. *Mitigation - Setting o Performance standards for funds transfer to be f agreed between GoI and State Governments Financial H - Reflects the risk o f sub project financial reporting through 6 PIAs. S Reporting *Mitigation - Will be partially mitigated through putting in place a robust internal audit function as per TORagreed with the Bank. 84 Auditing H - The statutory auditors o f most PIAs are the Local Fund Auditors S (LFAs). This presents a significant risk since Bank diagnostic work shows that LFA capacity i s weak. I *Mitigation- Audit would be carried out by C d A G as per the agreed TOR.. OVERALL RESIDUAL CONTROL RISK S OVERALL RESIDUAL FM RISK S a. The Borrower shall appoint no later than ninety days after the Effective Date and thereafter maintain throughout the period o f Project implementation, a finance manager with qualifications acceptable to the Bank at the Project Management Unit, and shall cause each o f the Participating States to maintain throughout the period o f Project implementation, a finance professional with qualifications acceptable to the Bank, at the respective Project ImplementingAgencies. b. The Borrower shall appoint internal auditors for the Project no later than ninety days after the Effective Date and establish and maintain throughout the period o f Project implementation an audit committee. 8. Project Agreement with state governments a. Participating states shall cause the Project Implementing Agency to appoint no later than ninety days after the Effective Date and maintain throughout the period o f Project implementation, finance professional with qualifications acceptable to the Bank. b. Participating states shall make adequate budgetary provisions for the city demonstration project in i t s annual state budget in accordance with estimates furnished by the Project Implementing Agency. C. Participating states shall ensure that Project funds are transferred to the Project Implementing Agency on a timely basis after they are received from the Borrower. It should be preferably within 30 days from when the funds are received from the Borrower. VIII. Implementation arrangements 9. The project will be implemented by six different agencies in five states and by the M o U D at the Central government level. The implementing agencies are three Municipal Corporations (Jalandhar, Pune and Pimpri-Chinchwad), one Development Authority (Naya Raipur); one company (Indore City Transport Services) and one State Road Transport Corporation (Mysore) and P M U - M o U D . The PIAs will be responsible for all aspects o f project implementation. Oversight responsibility will vest with state governments. Control framework as per the statutory and governance requirements o f the concerned P I A will apply. The PIAs (through professional accountants) will be responsible for maintenance o f separate books o f accounts, preparation o f budgets, presentation o f claims, following up with Go1 on amounts released, submission o f 85 accounts to internal and external audit and taking appropriate action on internal auditors' comments. 10. M o U D acting through a P M U will be responsible for coordination responsibility for all financial matters including budgeting, reporting, accounting and auditing through the state governments. IX. Staffing 11. All implementing agencies will appoint or hire professional accountants. In addition the P M U will hire a Manager (Finance) whose key tasks are mentioned below: (a) Training o f P I U accounts staff to strengthen their capacity apropos the FM section in the OM. (b) Exercising overall budgetary control on project activities. (c) Follow up with PIAs to ensure that annual budgets o f PIAs are included in state treasuries. (d) Preparation o f budget for P M U and accounting and reporting for P M U level activities. (e) Conduct limited review o f quarterly IUFRs (Interim Unaudited Financial Reports) submitted by the PIAs. (f) Coordinate timely completion of quarterly internal audit at all the PIAs and the P M U for the project and presentation of internal audit findings to Audit Committee at MoUD. (8) Coordinate timely submission of annual statutory audit reports to The Bank for the project. X. Budgeting 12. All PIAs will prepare budgets based on DPRs. PIAs' accountants will ensure that the required budgets are incorporated into the state budgets. XI. Accounting and Financial Reporting 13. Accounting for Component 1 will be done by P M U and for Component 2 by PIAs for their sub projects. Separate books and records will be maintained for each sub project by the PIAs. The accounting for each sub project will include all sources o f funding, including GEF and/or IBRD, and shall be on modified accrual basis. Accounting records at the PIAs will comprise the following: A. Statement o f Sources and Application o f Funds. B. Schedules Annexed to Project Financial Statements: ' An Annual Statement reconciling the claims received and actual expenditures made, both quarter b y quarter and annually". Statement comparing budgeted estimates with actual expenditures b y PIA 15 The statement will provide a reconciliation between expenditure reported as per the Statement o f Sources and Application o f Funds and expenditure claimed from the World Bank through IUFR. 86 Statement o f Commitments by PIA for the sub project (for the entire period) C. Significant Accounting Policies and Explanatory Notes (based on FM Manual) D. Statement o f Reconciliation between the State government releases, amounts claimed and those received by the PIAs. 14. All o f the above mentioned statements shall be submitted to the Bank on a annual basis along with the audit report. 15. The Financial Management section o f the Operations Manual (OM) will include information on accounting records (including formats) to be maintained at all accounting centers. XII. Internal Control and Audit 16. Internal audit vide an agreed Terms o f Reference will be in place. Other controls will be those already in place apropos the PIAs' legal requirements. Quarterly Internal audit reports shall be submitted to the Bank and to the PMU. XIII. Disclosure o f Financial Information 17. I t i s important to mention that all PIAs will disclose the entire set o f Interim Unaudited Financial Reports and statements referred to in paragraph 12 on their websites. XIV. Funds Flow and Disbursement 18. There are two components, Component 1 being handled by MoUD and Component 2 being handled by PIA. For reporting purposes, MoUD will submit IUFRs to the Bank for six PIAs and PMU, within 45 days from end of each quarter. An initial advance o f $2 million would be provided towards Designated Account and the Bank would reimburse every six-months based on actual expenditure as per IUFRs submitted by MoUD. They will be accompanied by detailed Statements o f Sources and Uses o f Funds which will report actual expenditures and all other statements outlined in the Interim Unaudited Financial Reports (IUFRs). 19. Seven such IUFRs will be submitted every six months in respect o f the project for six PIAs and PMU. The PIAs will be expected to monitor their budgeted requirements against expenditures and make necessary changes where required to the IUFR requests; particularly where there are surplus funds available from previous quarters. 20. The Bank will adjust disallowances and ineligible expenditures annually after comparing actual expenditures certified by Statutory Auditors with annual claimed amounts in the IUFRs. The Bank will monitor the amounts requisitioned in the IUFR against the total amount expected to be reimbursed under GEF. 21. A Designated Account would be maintained in the RBI and would be operated by the DEA of GOI. The Designated Account would be operated in accordance with the Bank's operational policies. An initial advance of $2 million would be provided as advance. The 87 project will submit withdrawal applications to CAA&A in DEA for onward submission to Bank for replenishment o f the Designated Account or reimbursementI6. Each disbursement o f funds by Bank in Designated Account will be transferred within a reasonable time on a "back to back" basis. XV. External Audit 22. The statutory audit o f the project accounts at the P I A level will be carried out by the C&AG through i t s offices in the respective states in accordance with the agreed TOR. 23. I t may be noted that there will be seven audit reports which will be monitored in ARCS. The TORS have been already agreed with the Bank and the C&AG and will be part o f the Operational Manual. 24. The Comptroller and Auditor General o f India will undertake audit o f financial statements with respect to Part 1 and 2 o f the Project through i t s offices for activities to be undertaken by various Project Implementing Agencies. Accordingly, as indicated in the Comptroller and Auditor General o f India's letter dated October 13, 2009 to the Department o f Economic Affairs, Ministry o f Finance, the state governments will make an appropriate request to the respective field offices o f C&AG promptly after legal agreements have been signed. The state governments shall also issue entrustment letters for this purpose after the C&AG conveys i t s acceptance. 25. The following annual audit reports will be received by the Bank and monitored in ARCS: Audit Report Implementing Agency Due Date I Special Account I DENGoI I September 30th. I P M U for Component 1 MoUD September 30th. Naya Raipur Naya Raipur Development Authority September 30th. Pune Pune Municipal Corporation September 30th. Pimpri-Chinchwad Pimpri-Chinchwad Municipal September 30". Comoration Mysore Karnataka State Roads Transport September 30th. Corporation Indore Indore City Transport Corporation September 30th. I Jalandhar I Jalandhar Municipal Corporation I September 30th. I XVI. Supervision 26. The project will require intensive supervision in the initial year since the P M U will have limited capacity. Reviews o f transactions and books and records will be undertaken l6 The bank would release the disbursements once the TTL from the bank approves the IUFR and application for disbursements. 88 periodically at all six PIAs and the P M U . Desk reviews o f internal and statutory audit reports, compliances and actions taken will also be done. Reviews o f IUFRs and Pending Actions By When By Whom Appointment o f Internal Auditors Within 90 days MoUD - PMU after the Effective Date Hiring of Manager (Finance) at PMU or Within 90 days MoUD- PMU providing continuity by ensuring existing after the Effective consultants continue till Manager (Finance) i s Date appointed DesignatiodAppointmento f Accounting Staff Within 90 days PIA at PIAs after the Effective Date Project costs are provided in the borrower's In Budget Go1 budget (Go1 (MoF) and States) Estimates o f next (MoF)/MoUD- financial year. PMU and PIAsIstates Proposal o f project audit to CAG offices in Promptly after PIAIStates the respective states signing o f the legal agreements 89 Annex 8: Procurement Arrangements INDIA: Sustainable Urban Transport Project A. General 1. Procurement for activities financed by the proposed GEF grant will be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits", dated May 2004, revised October, 2006 (Procurement Guidelines); and "Guidelines: Selection and Employment o f Consultants by World Bank Borrowers" dated May 2004, revised October 2006 (Consultancy Guidelines) and the provisions stipulated in the Legal Agreement. 2. For each contract to be financed by the GEF grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. General Procurement Notice (GPN) was published on October 1 2008 in UNDB on line and i t s printed version as well as in dgMarket online. Specific Procurement Notices (SPN) will be published for all I C B procurement and consulting Contract as the corresponding bidding documents and RFPs become ready and available. 3. The proposed GEF grant will finance technical assistance (mainly consultancy services) under Component 1 and Component 2 and Intelligent Transport Systems applications (goods) in Indore and Mysore. These activities will be implemented by P M U at M o U D and six Project Implementing Agencies (PIAs) in five different states (see the table below). N o civil works will be financed b y the GEF grant. 4. Goods procurement in Indore i s envisaged in one package for Automatic Fare Collection System. 90 5. Goods procurement for Mysore i s envisaged in one package for implementation o f ITS. 6. Presently no goods procurement i s envisaged in GEF -SUTP for Pimpri-Chinchwad 7. Procurement for consulting services for Indore, M ysore and Pimpri-Chinchwad envisages technical assistance and capacity building activities. 8. The details o f procurement b y Phase 2 cities and the procurement details under Component- 1 would be worked out during implementation. 9. All goods and services financed by the proposed GEF grant shall be procured using the Bank's Standard Bidding Documents (SBDs) and Standard Request for Proposals (RFPS). B Implementation Arrangement for the project: 10. The Govt. o f India has constituted a SUTP Steering Committee under the chairmanship o f the Secretary, MoUD, GoI. The Steering Committee consisting o f members from MoEF, DEA, Planning Commission and MoUD i s the approving authority for all policies and executive decisions related to this project. I t would also provide overall directions and guidance to the national and city level implementing agencies and monitor the progress o f the project. 11. The Ministry o f Urban Development (MoUD) i s the nodal ministry for implementing the GEF- SUTP on behalf o f the GoI. A Project Management Unit (PMU) has been set up at the MoUD, which i s operating under the overall directions and guidance o f the Steering Committee. P M U will provide technical assistance to M o U D in planning, preparation, procurement, find management and reporting. The P M U is headed by a National Project Director, a senior officer from MoUD, who will be followed b y a full time National Project Manager (already appointed). The Project Director and the Project Manager are an interface between P M U and various committees o f the national and state governments like the advisory, steering, standing committee etc. In order to effectively function as the PMU, the M o U D will augment the PMU's capacity by appointing a Project Management Consultant (PMC) for strengthening project implementation over a period o f four years. P M C will have various specialists including the procurement specialist, having experience in Bank Procurement, for overall coordination with all PIAs to provide guidance to PIAs on procurement matter and will facilitate uniformity and consistency in the procurement procedures and documents o f all PIAs. 12. For prior review cases P M U carry out quality check on all procurement documents to be prepared by the PIAs and then forward the same with i t s recommendations to the Bank for prior review. In addition, it has been agreed that contracts (goods and consultancies) above equivalent o f a defined value under paragraph titled "Prior Review Threshold" , but below the agreed prior review thresholds will be prior reviewed by PMU, which otherwise would be subject to post review by the Bank.. 91 C. Assessment o f the agency's capacity to implement procurement 13. A procurement capacity assessment has been carried out by the consultant appointed by M o U D and has been reviewed by the Bank staff. The Procurement specialist and the consultant during the mission to Mysore, Pune, Indore and Naya Raipur also had discussions with the PIAs. Based on Assessment carried out by M o U D and review by DPS/consultant including discussions held with above PIAs several gaps were observed. PIAs do not have any experience o f the Bank funded project and are therefore not conversant with the Standard Bidding Documents and Procurement and Consulting Guidelines o f the Bank. Cities are using their own tender documents which have several deviations with respect to Bank procurement system. Mysore i s still giving price preference up to 15 percent to S S I units o f the state. Some o f the cities exempt certain classes o f bidders in depositing the Bids and Performance securities. There i s no grievance/Complaint Handing Mechanism. 14. All PIAs have set up PIUs comprising a Project Manager, transport specialist, social and environment officer, procurement officer and a finance officer. The procurement officer in all PIUs have undergone two weeks training on Bank Procurement at NIFM, Faridabad during end January 2009/early February 2009. In addition to oversee the project implementation including procurement functions o f PIAs, M o U D shall appoint Project Management Consultant [PMC] which shall have Procurement expert having adequate experience in Bank Procurement. The terms o f reference o f PMC include guiding the PIAs in procurement b y conducting training and workshops for each PIA. M o U D i s in the process o f evaluation o f proposal received and i s likely to finalize the award immediately after the approval o f the project by the Bank. In addition Bank team will continue to provide hands-on training in early stages o f project implementation. A workshop for Pimpri-Chinchwad i s expected to be conducted in December 2009/January 2010 which will be followed by other cities on need basis. 15. Procurement risk in the project has been rated as high. This i s considering the non availability o f permanent procurement unit in MoUD, involvement o f multiple entities in procurement, lack o f prior experience in Bank procurement processes, and the need to augment procurement capacity M o U D and PIAs. Based on the capacity assessment, a number o f mitigation measures have been proposed and some o f them have been implemented during project preparation. The overall residual risk, with mitigation measures, i s rated Substantial: RisW Risk Rating Mitigation Measures Residual Factors Risk Non High - MoUD has constituted PMU at central level and Moderate availability of nominated Project Director and National Project permanent Manager, MoUD i s in the process o f hiring a PMC procurement that will have finance, transport environment and unit in MoUD. procurement specialist staff. MoUD i s in the process o f evaluation o f proposal received and i s likely to finalize the awardhign contract immediately after the approval o f the project by the 92 Bank. The availability of experienced PMC i s likely to substantiate the procurement capacity o f MoUD to provide oversight as i s envisaged for implementation under the project. Capacity of High PIAs have provided training on Bank Procurement Substantial PIAs in Bank to their staff at NIFM. In addition training Procurement workshop for all PIAs shall be conducted by the Bank for imparting procurement training to PIAs. First such workshop will be conducted for Pimpri- Chinchwad in December, 2009/January, 2010. In addition each PIA has set up PIU to be headed by Project Manager. Each PIU has a Procurement Specialist/Officer. Each PIU shall be responsible for managing the procurement activities and MoUD will be responsible for overall coordination with all PIUs and to provide guidance to PIUs on procurement matters. MoUD will facilitate uniformity and consistency in the procurement procedures and documents o f all PIAs. For Prior review cases PMU will carry out quality check on a l l procurement documents to be prepared by the PIAS and then forward the same with its recommendations to the Bank for prior review. In addition, it has been agreed that contracts above equivalent of a defined value as given in paragraph titled "Prior Review Threshold", but below the agreed prior review thresholds will be prior reviewed by PMU, which otherwise would be subject to post review by the Bank. PIA in Phase 1 city has also hired Project Management Consultant to assist PIUs in bidding - documents preparation, and evaluation o f bids. Inconsistencies High Use of Bank SBD and Model bidding documents Moderate in procurement as agreed with GO1 task force including conditions systems of for NCB. PIAS with respect to Bank An Operational Manual has been developed where Guidelines and the procurement procedures are described in detail SBD like for the guidance o f PIAs, PMU and MoUD. purchase preference, Bid Security exemptions, twolthree envelope system and absence of complaint 93 handling etc. Overall Substantial Residual Risk 16. Procurement Risk and the progress on the various mitigation measures listed in the table above will be re-assessed/ reviewed during the implementation phase o f the project. 17. The Bank will conduct post review o f the contracts entered into by the project implementing agencies whether at the central, state, or districts levels. The concerned agencies will be required to make all relevant documentation available to the Bank or i t s nominated auditors, as and when required. The post review by the Bank will be conducted either by Bank staff or by i t s nominees in accordance with Paragraph 5 o f Appendix 1 to the Bank's Procurement Guidelines. D. Procurement Plan 18. Each P I A i s required to prepare a procurement plan for first 18 months which will include estimate cost o f each package, the method o f procurement/selection, the prior review requirements and other bidding details. Phase- 1cities have developed the procurement plan and the same has been agreed with the Bank.. .Phase 2 cities will develop and agree with the Bank, the procurement plan during implementation. Component 1 o f the project i s aimed at providing Technical Assistance to the cities participating in demonstration projects. This Component 1 is to be implemented by P M U set up by MoUD. The exact nature o f assistance that may be required by the cities, and consequently procurements that will be required, will be known only after start o f the project. Therefore, procurement plan for Component 1 will also be developed during the implementation. The finalized procurement plan will be available in the Project's database and in the Bank's external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. E. Methods o f Procurement and Prior Review Threshold 19. Procurement Goods and non-consultingservices f Methods o Procurement: I C B contracts, above US$500,000 for I T System and above US$200,000 for goods N C B contracts, up to US$500,000 for IT System and up to US$200,000 for goods Limited Competitive Bidding/ Shopping, contracts up to US$lO,OOO for goods. Rate contracts o f Director General o f Supplies and Disposal (DGS&D) are also acceptable in l i e u o f shopping procedures. Direct Contracting: Goods which meet the requirements o f paragraph 3.6 o f the World Bank procurement guidelines may be procured Direct Contracting procedures. In addition proprietary items, such as spare parts, software, up to U S $ l ,000 equivalent per contract meeting requirements stated in the Procurement 94 Guidelines o f the Bank and petty items costing up to US$ZOO per contract may be procured through Direct Contracting 20. Prior Review Threshold, Procurement Decisions subject to Prior Review by the Bank as stated in Appendix 1 to the Procurement Guidelines In addition, it has been agreed that contracts above equivalent o f a defined value as given in Table 1, but below the agreed prior review thresholds will be prior reviewed by PMU, which otherwise would be subject to post review by the Bank. Table 3: Prior Review Threshold for Procurement o f Goods: Procurement Method I Prior Review 1 Prior Review by I Remarks Threshold by P M U at M o U D the Bank ICB (Goods) > US$200,000 NIL All I C B Contracts subject to prior review o f Bank irrespective o f value NCB (Goods) > US$lOO,OOO > US$O,OOO and us$loo,ooo > US$50,000 and US$lOO,OOO > US$50,000 and - (Firms) US$20,000 > US$lO,OOO and 97 List o f major consultancies to be procured in Phase-1 cities are given in table 6 below 1 2 3 4 5 6 Ref. Description of Estimated Selection Review by Expected No. Assignment cost Method Bank Proposals (Priormost) Submission INR Million Date (US$ Million) - A Ir OCDS 1. Project 35.62 Prior Aug 26, 2009 Management [Actual] Consultancy for (~~$0.8 - 2. ITS Consultancy for Operational million) 2.25 7 Prior December 2010 SUPPOfl to BRT (US$0.05 operation million) - 3. Users 1.5 QBS Post December Satisfaction 2010 Survey I (US$0.03 I million) - B. N: sore 1. Monitoring and 20 QCBS Prior June, 2010 Evaluation (US$0.44 million) - 2. Technical 10 QCBS Prior March, 20 10 Assistance for ITS Applications (US0.2 in Transit million) - Operations 3. Users 1.5 QBS Post June, 20 10 Satisfaction Survey (USrS0.03 million) - c. P pri-Chinchwad 1. Technical 52 QCBS Prior June, 20 10 Assistance Studies and Capacity Building (US1.15 million) 2 Monitoring and 40 QCBS Prior March, 20 10 evaluation (USrS0.9 million) 26. Short lists o f consultants .for services estimated to cost less than US$500,000 equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines. 27. Operation Manual. An operations manual has been g developed for the project which brings out in details the procedures to be followed by each P I A and MoUD. F. Advance Procurement 28. Retroactive financing up to an amount o f US$4 million will be available under the project, for financing expenditures incurred after January lSt, .and before the Loan 2009 signing to procure eligible activities procured under agreed guidelines. G. Frequency o f Procurement Supervision 29. In addition to the prior review to be carried out from Bank offices, procurement staff will participate in two formal review missions annually, along with the implementation support missions which will include post review o f procurement actions. In addition H. Anti Corruption Measures 30. Disclosure Policy: Invitation for Bids (IFB) for goods and equipment for all I C B contracts and advertisement for calling o f Letters o f Expression o f Interest (EOI) for short listing o f consultants for services costing more than US$200,000 equivalent will be published in UNDB and dg Market as well as on website o f PIAs. Also Invitation for Bids (IFB) for all N C B contracts would be published as per the agreement with the Bank. PIAs shall make the award o f contract details on UNDB and dgMarket online as stipulated in clause 2.60 o f the World Bank's Procurement Guidelines and 2.28 o f the World Bank's Consultancy Guidelines. In addition award details would be made available on website o f respective PIAs. PIAs will also make available Procurement Plan available o f website annually. In addition PIAs would also make the bidding documents, EOIs, RFP, and minutes o f bid conferences and addenddcorrigenda available on their website. Disclosure Policy has been agreed as part o f GAAP which i s included in operations manual. 3 1. Complaint Handling Mechanism: In order to deal with the complaints received from contractorhppliers effectively, a complaint handling mechanism has been developed as part o f operations manual. All complaints during the bidding/award stage as well as complaints during the contract execution along with the analysis and response o f the P I U shall invariably be submitted to the Bank for review. 99 Annex 9: Economic Analysis INDIA: Sustainable Urban Transport Project 1. The proposed GEF grant will finance a series o f technical assistance (TA) and capacity building activities. According to Bank's OP/BP 10.04, economic analysis i s not required for financing such activities. 2. In the demonstration cities, some TA activities funded b y the GEF grant will support development or enhancement o f Bus Rapid Transit corridors, ITS applications to public transport, improvement in non-motorized transport, integrated public transport and non-motorized transport development, and development o f plans for transit-oriented development. While the Bank's experience in India and elsewhere suggests that these types o f investments have high economic returns with desirable distributional benefits, economic and financial analysis will be incorporated into the planning process for these activities. 100 Annex 10: Safeguard Policy Issues INDIA: Sustainable Urban Transport Project A. Environment Safeguards 1. Under SUTP, demonstration investment interventions are planned in four cities across several priorities o f GEF OP11: (i) public transport improvement; (ii) non- motorized transport and pedestrian facilities; (iii) integrated land-use and transport facilities; and (iv) I T S (intelligent transport system) application t o public transport systems. While most o f the investments are likely to be environmentally benign, indeed almost all reduce green house gas emissions and are hence positive, some activities can have adverse impacts o n environmental resources. These are mostly confined t o the construction phase - increased noise and dust, reduced safety for road users and workers, etc. In order to systematically deal with these impacts in all cities, and t o reduce need for separate EAs for each city, an Environmental and Social Management Framework (ESMF) has been prepared for the entire project by the M o U D . All participating cities have endorsed this ESMF and ensured that project documents reflect i t s requirements for environmental management. 2. Environmental and Social Management Framework. Since several cities have common interventions and the adverse impacts due to these are mostly confined to the construction phase, a framework approach has been adopted for the EA in SUTP. The M o U D has developed the framework based o n the information available about cities through their City Development Plans/Comprehensive M o b i l i t y Plans, followed by site visits, and discussions with city officials supplemented with a review o f applicable state, national and World Bank safeguards policies. I t identifies potential impacts for each o f the candidate interventions and a menu o f management measures for each impact. The ESMF aims to avoid, minimize, mitigate/compensate negative impacts while trying to enhance the positive impacts. 3. Environmental Impacts and Management Measures. The E S M F uses a screening mechanism to identify the interventions that have l o w and predictable negative impacts that can be managed using the menu o f measures provided. The common impacts identified include: temporary interruption to traffic and resultant increase in emissions due to idling, increased noise levels, risks to safety o f road users as w e l l as workers, pollution from plants and equipment used for construction - hotmix, crushers, etc as well as permanent impacts such as contamination f r o m parking and other facilities, damage to roadside cultural properties, cutting o f trees o n roadside, increased risk o f accidents for traffic diverted f r o m pedestrian-only zones, increased noise levels, especially close to sensitive receptors like schoolshospitals. Cities have quantified the magnitude o f the anticipated impacts wherever practicable. Generic management measures have been identified for the common impacts and cities' EMPs reflect these with modifications to account for their environmental conditions and institutional capacity. In cases where large impacts are anticipated, such as provision o f bus transport related infrastructure, TORS for separate EIA and E M P preparation have been prepared as part o f the ESMF. 101 4. In cities where EIA / EMP are prepared separately, the costs are included as the EMP budget and integrated into project costs. Detailed assessment for the potential impacts o f the provision o f two new BRT corridors for Pimpri has included collection o f information about current air quality, presence o f sensitive receptors, water quality etc. along the proposed alignment (already finalized in the Development Plan for the city). Following the hierarchy o f avoidance, minimization, and mitigation o f adverse environmental impacts, management measures have been worked out in a separate EIA. For Pimpri, these amount to approximately INR 18.48 million and includes (i) provision for water sprinkling to prevent dust pollution during construction, (ii) landscaping and plantation o f 3800 saplings to compensate for about 400 trees that need to be cut, (iii) construction o f noise barriers close to 4 identified sensitive locations, (iv) occupational safety, (v) monitoring o f pollution in construction and operation phase. 5. In cities where no separate EIA/EMP i s required, DPRs prepared for the interventions include the cost o f environmental management as indicated in the ESMF either separately or as part o f civil works costs or as separate costs. In Pune, the DPR states that while there are on average 39 trees per kilometer trees along the about 41 km of roads where project interventions are proposed, cutting o f trees has been avoided almost completely. Where cutting i s unavoidable, these will be transplanted nearby. The DPR also specifies the use o f personal protective equipment for workers, as well as storage o f material o f impervious base to prevent land/water pollution. 6. Implementation Arrangements. A two-tiered implementation arrangement i s being considered for environmental management in SUTP. At the national PMU, an Environmental Officer would be in place to co-ordinate with / guide all the eight cities on environmental management. The selected candidate should be a Civil Engineer with specialization in Environment with experience in the management o f infrastructure projects and environmental management. His/Her responsibilities would include: Review the EIA Documents prepared by the consultants to assess adequacy under the World Bank Safeguard policies including the OP4.01, Co-ordinate application, follow up processing and obtain requisite Environmental Clearances required for the project, if required Advise PIUs for compliance with statutory requirements. Develop, organize and deliver training programme for P I U staff, the contractors and others involved in the project implementation, in collaboration with the Project Director / Environmental Expert o f the PIUs Liaise with various Central and State Government agencies on environmental and other regulatory matters Continuously interact with the NGOs and Community groups that would be involved in the project Review environmental performance o f the project, Compile periodically environmental monitoring reports submitted b y the PIUs and provide a summary o f the same to the National Project Director for necessary follow-up actions 102 Provide support and assistance to the Government Agencies and the W o r l d Bank to supervise the implementation o f the EMP during the construction as w e l l as operation stages o f the project. Document the good practices in the project o n incorporation and integration o f environmental issues into engineering design and o n implementing measures in the construction and maintenance programs o f urban infrastructure projects, and disseminate the same 7. At the city level, the P I U shall have a designated Environmental and Social Officer to manage the environmental (as w e l l as social) aspects o f the interventions in each city. The roles and responsibilities o f the incumbent have been specified (see paragraph 13 below). 8. Monitoring and Reporting. The monitoring o f implementation o f environmental management measures would be done as part o f the regular monitoring o f the interventions and periodic reporting with other works under the project. This w o u l d include air quality, noise levels, rates o f survival o f plantation, etc. In specific cities l i k e Pune and Mysore, ambient air / emissions quality would be considered as a sub-project indicator. Estimates o f GHG emission reduction over the no-project scenario would also periodically calculated to establish the global benefits o f the project. 9. Capacity Building and Training. Targeted training focusing o n urban environmental management i s built into the SUTP for the state and city level officers o f participating cities as well as the national PMU. I t includes workshops, site visits, lectures and interactive sessions. B o t h project planning and implementation stage environmental issues are covered in the training. Depending o n the audience, issues o f operational as well as strategic importance are t o be covered in training modules to be conducted by external experts. This has been budgeted for as part o f the ESMF. B. Social Safeguards 10. Social Impacts. Care will be taken while planning for the facilities so as t o have least impact o n the community. However, project interventions in Pimpri will affect approximately 1,200 households. If a particular location i s suitable for a l l factors except for limited resettlement, necessary compensatory and rehabilitation measures as per the resettlement framework will be worked out. The affected persons will be assisted as per their entitlements. A Resettlement Action Plan at the sub project level to this effect will be prepared to address the impacts. I t will be ensured that all R&R activities are t o be completed before the initiation o f c i v i l works, o n any sub-section o f project roads. In case o f displacement due to project interventions, resettlement activities including construction o f resettlement sites will be carried out prior to the contractor mobilization at site. Suitable locations for resettlement sites will be identified in consultation with the PAPSto be relocated. The entitlement matrix will be adapted to the project initiatives to arrive at appropriate entitlements for identified impacts. The entitlement framework has additional provisions for vulnerable people affected by the project. As major resettlement impacts would mostly be on encroachers and squatters, they will be rehabilitated at 103 appropriate location and provided with capacity building / skill enhancement training for livelihood support. The table 1 below shows the city wise demonstrative projects. 11. The location impacts being analyzed are associated with site selection and project location on resettlement or livelihood related impacts on communities. Some o f the generic impacts associated with location o f project facilities that involves construction activities either by acquiring additional land and/or public land encroached b y residents/commercial establishments are as below: Loss o f land leading to loss o f livelihood and/or livelihood sources and/or shelter Relocation o f encroachments and squatters leading to loss o f livelihood and/or shelter. The impact will be greater on vulnerable squatters and encroachers. Fragmentation o f social fabric and severance o f established relationships amongst the community Loss o f services provided by the squatters due to their relocation Pimpri X Substantial land taking; displacement o f titleholders and non titleholders; loss o f livelihood: relocation o f CPRs and cultural properties Pune Maharashtra X X Displacement o f non- titleholders, loss o f livelihood, relocation o f CPRs and cultural properties Jalandhar Punjab X LA, loss o f livelihood, displacement o f non- titleholders, relocation o f CPRs and cultural properties Naya Raipur Chhattisgarh X X X Substantial private land Acquisiton, displacement o f title and non-titleholders, relocation o f CPRs and cultural properties, loss o f livelihood Indore Madhya x X Pradesh Mysore Karnataka 1 12. Some o f the specific impacts associated with construction o f FoB/RuB involves disruption to existing traffic flow, especially, if located in the congested urban stretches. These would also involve land acquisition (either temporary or permanent) and would also impact the squatters and encroachers affecting residences and/or commercial establishments. Construction o f the FoB/RuB would cause traffic congestion and delays and may also involve changes in the project design and alternatives. Project interventions 104 as ITS application, improvement in public transport infrastructure would only improve the environment rather than causing pollution though resettlement impacts will exist to a limited extent. 13. Environmental and Social Management Framework. In line with the OP 4.01 and OP 4.12 an Environmental and Social Management Framework (ESMF) has been prepared by the borrower which will be applied to all sub projects to be taken up under the project. The ESMF spells out the potential impacts in the project cities due to the planning, design, implementation and operation o f the Green Transport projects and outlines the management measures required for an effective addressal o f the same. Appropriate institutional arrangements towards implementing the measures proposed and the capacity building efforts required have been detailed in the framework. The ESMF i s to be applied at all stages o f project as in identification o f sub-projects, screening; implementation and operation stage. The framework emphasizes on participatory approach to preparation o f sub-projects in respective cities. The consultation and participation framework as part o f the ESMF provides an overview o f consultation and participation activities to be carried out in various stages o f the project. 14. Implementation Arrangements. In the Project Management Unit (PMU), a Social Officer will be appointed/designated to oversee the implementation o f ESMF as well as any other social provisions as deemed fit for project implementation. The specific roles and responsibilities o f the Social Officer will include: e Review the social impact assessment documents prepared by the consultants to assess adequacy to address impacts as per the ESMF and Operational Manual. e Co-ordinate application, follow up processing and obtain requisite clearances for the project at the state level, if required e Advise P I U for compliance with statutory requirements. e Develop, organize and deliver training programme for the P I U staff, the contractors and others involved in the project implementation, in collaboration with the National Project Director/Environment and Social Officer o f the P I U e Liaise with various Central and State Government agencies on social; environmental and other regulatory matters e Review and monitor the performance o f the project through periodic social monitoring reports submitted by the PIU; provide a summary o f the same to the National Project Director, and initiate necessary follow-up actions e Provide policy level support and assistance to the ESO at P I U to facilitate supervision o f the implementation o f the RAP/LAP during the construction as well as operation stages o f the project e Document the good practices in the project on incorporation and integration o f social and resettlement issues into engineering design and on implementing measures in the construction and maintenance programs o f urban infrastructure projects, and dissemination o f the same 15. Project Implementation Unit (PIU) setup for assisting the implementation agency will also appoint / designate an Environment and Social Officer (ESO) to assist the Environment and Social officer in the Project Management Unit especially for project 105 cities that have potential issues. Interventions in Phase 1 cities - Pimpri-Chinchwad would require an ESO at the PIU. The Environmental and Social Officer shall oversee the implementation o f ESMF as well as any other social provisions as deemed fit for project implementation as per the regulations o f the World Bank and Government o f India. The roles and responsibilities o f Environmental and Social Officer include: 0 Review the environmental and social assessment documents prepared by the consultants and provide feedback to the ESO at P M U level. 0 Ensure that the project design and specifications adequately reflect the recommendations o f the EINSIA Co-ordinate application, follow up processing and obtain requisite clearances required for the project at the project level, if required Prepare compliance reports with statutory requirements. Assist ESO at P M U level to organize and deliver training programme for the P I U staff, the contractors and others involved in the project implementation, in collaboration with the P M U Review and approve the Contractor's Implementation Plan for the environmental measures, as per the EIA and any other supplementary environmental studies that may need to be carried out by the P I U 0 Monitor Contractors and the PIU/State Implementing agency on implementation o f the EMP/RAP Continuously interact with the NGOs and other community groups that would be involved in the project Consult affected communities and ensure that the social concerns and community's suggestions are incorporated if found feasible and implemented in the project Compile periodic social and environmental monitoring reports submitted by the P M C and forward the same to ESO at PMU; provide a summary o f the same to the Project Director, and initiate necessary follow-up actions Liaise with local government agencies and supervise the implementation o f the EMP/RAP during the construction as well as operation stages o f the project 16. A Rehabilitation and Resettlement Committee shall be c o n ~ t i t u t e dwithin the '~ P I U to (i)monitor and review the progress o f implementation o f rehabilitation and resettlement plan; (ii) carry out post implementation social audits; and (iii) redressal o f grievances. The committee shall be formed including the following members: Municipal Commissioner/CEO as the Chairman; 0 Social officer o f the PIU; Environment and social officer in PMU; 0 A representative o f a voluntary organization; 0 Representativeh o f the affected community (or communities). 17 This committee will only be constituted in those cities where the city demonstration projects involve rehabilitation and resettlement. In other cities, any complaints or grievances regarding social and environmental safeguards should be handled by the PIU's environment or social officer. 106 17. 18. The functions o f the Rehabilitation and Resettlement Committee are: to publicize within the district the l i s t o f affected persons and the functioning of the grievance redressal procedure established hereby; to evaluate grievances from affected persons concerning the application to them o f the Entitlement Policy; to recommend to the Social Officer, P I U as the case may be, solutions to such grievances from affected persons; to communicate the decisions to the Claimants; 0 to hear appeals from persons, households or groups who, not being affected persons, believe that they are qualified to be recognized as affected persons, to recommend to the P I U whether such persons should be recognized as affected persons, and to communicate the decision o f the P I U in that regard to the Claimants; 0 To ensure that all notices, forms, and other documentation required by Claimants are made available in local language; Receive and act upon complaints pertaining to environmental management such as excessive noise and dust. 19. Disclosure o f Documents. The table 2 below specifies the documents that need to be disclosed and frequency o f dissemination. Table 2: Information to be Disclc sed Topic Documents to be disclosed Frequency Media Once in the entire project World Bank's Infoshop. cycle. But to remain on the Deputy Commissioner's Office Resettlement Action Plan website and other Project Management Unit & Project (RAP) disclosure locations Implementation Units (PIU) throughout the project period. World Bank's Infoshop. MoUD / Implementation agency's Resettlement, website. Rehabilitation Resettlement & Deputy Commissioner's Office Once in the entire project and Land Rehabilitation Policy State and District Libraries cycle. Acquisition translated in local language Project Management Unit & Project Implementation Units (PIU) Distributed among Project Affected Persons (PAP) Through one-to-one contact with PAPS. Information regarding Once at the start o f the Community consultation impacts and their project and as and when entitlements List o f PAPS with impacts and demanded by the PAP. entitlements to be pasted in the ULB office / PIU/Imdementina Agencies 107 , Frequency Media MoUD / Implementation agency's R&R and L A monthly website. progress report. 10th day of every month Project Management Unit & Project Implementation Units (PIU) RAP Impact Assessment After substantial MoUD / Implementation agency's Report completion o f each phase website. Land Acquisition As required under the LA MoUD / Implementation agency's notifications Act website. World Bank's Infoshop. MoUD / Implementation agency's website. Continuous process Grievance redressal Deputy Commissioner's Office throughout the project process. State and District Libraries cycle. Project Management Unit & Project Implementation Units (PIU) One to one contact with PAPS. MoUD / Implementation agency's website. Public Minutes o f Formal Public Within two weeks o f Deputy Commissioner's Office Consultation Consultation Meetings meeting State and District Libraries Project Management Unit & Project ImDlementation Units (PILI) Once in the entire project World Bank's Infoshop. cycle. But to remain on the Deputy Commissioner's Office website and other Project Management Unit & Project ESMF disclosure locations Implementation Units (PIU) throughout the project Environmental Deriod. Management Once in the entire project World Bank's Infoshop. cycle. But to remain on the Deputy Commissioner's Office Environmental website and other Project Management Unit & Project Management Plan disclosure locations Implementation Units (PIU) throughout the project period. 20. The consultation o n and disclosure o f ESMF has been completed in all the participating cities viz., Pune, Pimpri (as part o f R A P preparation), Mysore. Indore; and Naya Raipur. 21. Monitoring. Implementing agency in each o f the states where there is a single project and the corresponding agency for each project in case o f multiple projects will be responsible for monitoring and reporting at project level to the state level implementing agency or the Project Implementation Unit. The P I U would in turn report to the Project Management Unit at the centre. 22. An officer in P I U to be designated as the Environment and Social Officer to ensure compliance o f the project activities with the World Bank safeguards as well as oversee implementation o f environment and social provisions as per the ESMF, E M P and R A P where applicable. 108 2 Status o f Land Acquisition Quarterly Environment and Social PMC under the Officer, PIU PMU 3 Progress on Census Survey Quarterly Environment and Social PMC under the Officer. PIU PMU 4 Progress on Socio-Economic Quarterly Environment and Social PMC under the Survey Officer, PIU PMU 5 Verification o f PDFs Quarterly Environment and Social PMC under the Officer. PIU PMU 6 Verification of Squatters Monthly Environment and Social PMC under the Officer, PIU PMU 7 Verification o f Encroachers Monthly Environment and Social PMC under the Officer, PIU PMU 8 Distribution o f Entitlements Monthly Environment and Social PMC under the and Assistances Officer, PIU PMU 9 Progress o f Relocation o f Quarterly Environment and Social PMC under the CPRs Officer, PIU PMU 10 Progress o f Relocation of Quarterly Environment and Social PMC under the Cultural Property Officer, PIU PMU 11 Progress o f Relocation and Monthly Environment and Social PMC under the Site Clearance Officer, PIU PMU 12 Community Consultations Environment and Social PMC under the Quarterly Officer, PIU PMU 13. Progress o f Grievance Quarterly Environment and Social PMC under the Redressal Officer, PIU PMU 109 Annex 11: Project Preparation and Supervision INDIA: Sustainable Urban Transport Project Planned Acutal PCN review 03/21/2006 03/21/2006 Initial PID to PIC 04/28/2006 05/02/2006 Initial I S D S to PIC 04/28/2006 0510 112006 Appraisal 0211512008 0411612009 Negotiations 1011512009 10/26/2009 BoardRVP approval 12/08/2009 Planned date o f effectiveness 03/15/2010 Planned date o f mid-term review 03/15/2012 Planned closing date 11/30/2014 Key institutions responsible for preparation o f the project: Ministry o f Urban Development, and the GoI. Bank staff and consultants who worked on the Droiect included: ~ Name Title Unit Atul Aganval Transport Specialist SASDT Manmohan Singh Bajaj Senior Procurement Specialist SAWS Asha Bhagat Financial Management Specialist (Consultant) SARFM Venkata Rao Bayana Social Development Specialist (Consultant) SASDI Said Dahdah Road Safety Specialist (E T Consultant) ETWTR Krishnamurthy S. Financial Management Specialist SARFM Neha Dhoundiyal F M Analyst SARFM Gizella Diaz Program Assistant SASDO Ke Fang Senior Urban Transport Specialist, Team Leader SASDT Parthapriya Ghosh Social Development Specialist (Consultant) SASDI Priya Goel Senior Financial Management Specialist SARFM Roger Gorham Transport and Environment Economist (Consultant) SASDT Nupur Gupta Transport Specialist SASDT Yash Gupta Procurement Specialist (Consultant) SARPS Gaurav D. Joshi Environmental Specialist SASDI S. Krishnamurthy Financial Management Specialist SARFM Ajay Kumar Lead Transport Economist (Peer Reviewer) AFTTR Shomik Raj Mehndiratta Senior Transport Specialist (Peer Reviewer) EASCS Gerhard Menckhoff BRT Specialist (Consultant) SASDT Hubert Nove-Josserand Senior Urban Transport Specialist SASDT Fernanda Ruiz Nuiiez Young Professional SASSD Justina Parambaloth, Program Assistant SARFM Richard C. Podolske Urban Transport Specialist (Consultant, Peer ECSSD Reviewer) Neetu Sharda Team Assistant SASDO Yingying Shi Junior Professional Associate SASDT Krishnan Srinivasan Governance Specialist (Consultant) SASDT Natalya Stankevich Operations Analyst SASDT Samuel L. Zimmerman Senior Urban Transport Specialist ETWTR 110 Annex 12: Documents in the Project File INDIA: Sustainable Urban Transport Project 1. Client documents: a. MoUD, National Urban Transport Policy, April 2006 b. DEA, letter to the World Bank, endorsing the project proposal for SUTP from MoUD, February 13,2006 c. MoEF, letter to the World Bank, endorsing the project proposal for SUTP from MoUD, March 28,2006 d. MoUD, letter to the World Bank, requesting Project Development Fund Block B (PDF-B) grant, March 7,2006 e. MoUD, Training needs assessment and operational plan for training in the area o f urban transport planning, June 2006 f. MoEF, letter to the World Bank, endorsing allocation o f US$25 million to SUTP under the GEF 4 Resource Allocation Framework, October 3,2006 g. MoUD, Draft Detailed Project Profiles for city demonstration projects, January 28,2008. h. MoUD, letter from JnNURM Directorate to SUTP Project Management Unit, in- principle approval for providing JnNURM funds to support all JnNURM-eligible SUTP demonstration projects, May 5,2008 i. M o U D, forwarding the copy o f Planning Commission's in-principle approval for SUTP dated May 19,2008 to the Bank, May 20,2008 j. DEA, letter to the World Bank, endorsing the updated project proposal for SUTP from MoUD, September 29,2008 k. MoUD, Project Information Document, Volumes 1-4, Septembre 15,2008. 1. MoUD, model Participation Agreement, September 25,2008. m. M o U D, final Environment and Social Management Framework (ESMF), February 20,2008. n. MoUD, final Operation Manual, May 26,2009. 2. Bank documents: a. Policy Note: Towards A Discussion o Support to Urban Transport Development f in India, March, 2005 b. Project Concept Note, March 21, 2006 c. Integrated Safeguard Data Sheet at PCN stage, March 2 1,2006 d. Project Information Document at PCN stage, March 2 1,2006 e. PCN review meeting minutes, March 2 1, 2006 f. GEF Project Development Fund Block B (PDF-B) grant application, April 7, 2006 g. GEF Project Identification Form (PIF), October 20,2006 h. Management Letter and Aide Memoire, the 1'' Preparation Mission, June 7-9, 2006. i. GEF Project Preparation Grant (PPG) grant application, February 5,2007 j . GEF Project Identification Form (PIF) using new template, September 15,2007 111 k. Management Letter and Aide Memoire, 2ndPreparation Mission, October 15-24, 2007. 1. Management Letter and Aide Memoire, 3rdPreparation Mission, December 6-13, 2007. m. Management Letter and Aide Memoire, 4'h Preparation Mission, March 3 1-April 11,2008 n. Management Letter and Aide Memoire, 5'h Preparation Mission, September 15- 26,2008. 0. Quality Enhancement Review Meeting Minutes, October 30,2008. p. Management Letter and Aide Memoire, Pre-appraisal Mission, December 8-19, 2008. 3. GEF documents a. GEF Secretariat, letter to the World Bank, approval for PIF, October 24,2006 b. GEF Secretariat, letter to the World Bank, approval for PPG application, May 7, 2007 c. GEF Secretariat, letter to the World Bank, approval for PIF, September 26, 2007 112 Annex 13: Statement o f Loans and Credits INDIA: Sustainable Urban Transport Project Difference between expected and actual Original Amount in US$ Millions disbursements Project 1D FY Purpose lBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev'd PO96021 2010 P A Road Sector Project 320.00 0.00 0.00 0.00 0.00 320.00 0.00 0.00 PI01650 2010 A. P. RWSS 0.00 150.00 0.00 0.00 0.00 153.34 0.00 0.00 P102771 2010 - llFCL lndia lnfras Finance Company 1,195.00 0.00 0.00 0.00 0.00 1,195.00 0.00 0.00 Ltd P110051 2010 Haryana Power System lmprov Project 330.00 0.00 0.00 0.00 0.00 330.00 0.00 0.00 P116020 2010 Banking Sector Support Loan 2,000.00 0.00 0.00 0.00 0.00 2,000.00 0.00 0.00 P115566 2010 POWERGRID V 1,000.00 0.00 0.00 0.00 0.00 1,000.00 0.00 0.00 PO93478 2009 Orissa Rural Livelihoods Project 0.00 82.40 0.00 0.00 0.00 76.98 0.95 0.00 PO94360 2009 National VBD Control&Polio 0.00 521.00 0.00 0.00 0.00 492.61 48.98 0.00 Eradication PO96023 2009 Orissa State Roads 250.00 0.00 0.00 0.00 0.00 240.98 0.86 0.00 PlOOlOl 2009 Coal-Fired Generation Rehabilitation 180.00 0.00 0.00 0.00 0.00 180.00 4.50 0.00 PI00735 2009 Orissa Community Tank Management 56.00 56.00 0.00 0.00 0.00 105.31 -I.76 0.00 Project P112033 2009 UP Sodic Ill 0.00 197.00 0.00 0.00 0.00 198.44 0.00 0.00 P102331 2009 MPDPlP-I1 0.00 100.00 0.00 0.00 0.00 100.70 0.00 0.00 PO95114 2008 Rampur Hydropower Project 400.00 0.00 0.00 0.00 0.00 306.37 19.87 0.00 P105124 2008 HP DPL 1 135.00 65.00 0.00 0.00 0.00 99.75 0.00 0.00 P101653 2008 Power System Development Project I V 1,000.00 0.00 0.00 0.00 0.00 524.48 -84.52 5 1.48 P102737 2008 Bihar DPL 150.00 75.00 0.00 0.00 0.00 11 1.86 111.10 0.00 P100789 2007 AP Community Tank Management 94.50 94.50 0.00 0.00 0.00 174.53 28.93 0.00 Project PO96019 2007 HP State Roads Project 220.00 0.00 0.00 0.00 0.00 195.63 30.98 0.00 PO99047 2007 Vocational Training lndia 0.00 280.00 0.00 0.00 0.00 204.54 -4.27 0.00 P102768 2007 Stren India's Rural Credit Coops 300.00 300.00 0.00 0.00 0.00 287.38 155.25 0.00 PO90768 2007 TN LAM WARM 335.00 150.00 0.00 0.00 0.00 406.12 106.06 0.00 PO90764 2007 Bihar Rural Livelihoods Project 0.00 63.00 0.00 0.00 0.00 59.38 I.52 0.00 PO90592 2007 Punjab Rural Water Supply & 0.00 154.00 0.00 0.00 0.00 144.63 90.41 0.00 Sanitation PO90585 2007 Punjab State Roads Project 250.00 0.00 0.00 0.00 0.00 139.73 -2.92 0.00 PO71160 2007 Kamataka Health Systems 0.00 141.83 0.00 0.00 0.00 82.45 -9.66 0.00 PO75060 2007 RCH I1 0.00 360.00 0.00 0.00 0.00 204.65 69.17 0.00 PO75174 2007 AP DPL Ill 150.00 75.00 0.00 0.00 0.00 76.02 -77.33 0.00 PO78538 2007 Third National HIV/AlDS Control 0.00 250.00 0.00 0.00 0.00 197.47 136.73 0.00 Project PO78539 2007 I TB I 0.00 170.00 0.00 0.00 0.00 106.84 -19.90 0.00 PO83187 2007 Uttaranchal RWSS 0.00 120.00 0.00 0.00 0.00 109.84 52.61 0.00 PO86414 2006 l Power System Development Project I l 400.00 0.00 0.00 0.00 0.00 17.64 -1 12.36 0.00 PO78832 2006 Karnataka Panchayats Strengthening 0.00 120.00 0.00 0.00 0.00 69.67 -45.43 0.00 Proj PO79675 2006 Kam Municipal Reform 216.00 0.00 0.00 0.00 0.00 171.01 82.01 0.00 PO79708 2006 TN Empwr & Pov Reduction 0.00 120.00 0.00 0.00 0.00 83.50 34.63 0.00 PO93720 2006 Mid-Himalayan (HP) Watersheds 0.00 60.00 0.00 0.00 0.00 33.54 5.88 0.00 113 PO83780 2006 TN Urban Ill 300.00 0.00 0.00 0.00 0.00 188.68 109.43 0.58 PO92735 2006 NAIP 0.00 200.00 0.00 0.00 0.00 164.22 55.39 0.00 PO73370 2005 Madhya Pradesh Water Sector 394.02 0.00 0.00 0.00 0.00 294.74 224.58 0.00 Restructurin PO7365 1 2005 DISEASE SURVEILLANCE 0.00 68.00 0.00 0.00 0.00 50.48 42.29 0.00 PO75058 2005 TN HEALTH SYSTEMS 0.00 110.83 0.00 0.00 20.06 27.68 37.86 11.97 PO77856 2005 Lucknow-Muzaffarpur National 620.00 0.00 0.00 0.00 0.00 199.13 109.13 0.00 Highway PO77977 2005 Rural Roads Project 99.50 300.00 0.00 0.00 0.00 99.00 69.46 0.00 PO84792 2005 Assam Agric Competitiveness 0.00 154.00 0.00 0.00 0.00 69.04 48.16 0.00 PO84790 2005 MAHAR WSIP 325.00 0.00 0.00 0.00 0.00 218.36 136.36 0.00 PO865 18 2005 SME Financing & Development 520.00 0.00 0.00 0.00 0.00 320.65 -78.35 -38.35 PO84632 2005 Hydrology II 104.98 0.00 0.00 0.00 0.00 83.43 72.96 46.37 PO945 13 2005 India Tsunami ERC 0.00 465.00 0.00 0.00 0.00 397.49 377.68 -73.62 PO78550 2004 Uttar Wtrshed 0.00 69.62 0.00 0.00 0.00 33.41 2.72 0.00 PO50655 2004 RAJASTHAN HEALTH SYSTEMS 0.00 89.00 0.00 0.00 0.00 39.62 33.79 -0.64 DEVELOPMENT PO825 I O 2004 Kamataka UWS Improvement Project 39.50 0.00 0.00 0.00 0.00 7.38 7.38 0.00 PO67606 2003 UP ROADS 488.00 0.00 0.00 0.00 0.00 84.05 84.05 0.00 PO50649 2003 TN ROADS 348.00 0.00 0.00 0.00 0.00 38.67 38.67 0.00 PO71272 2003 AP RURAL POV REDUCTION 0.00 215.03 0.00 0.00 0.00 17.96 -68.30 -3.30 PO73094 2003 P A Comm Forest Mgmt 0.00 108.00 0.00 0.00 0.00 17.79 -3.19 0.00 PO76467 2003 Chatt DRPP 0.00 112.56 0.00 0.00 20.06 49.94 56.09 0.00 PO72539 2002 KERALA STATE TRANSPORT 255.00 0.00 0.00 0.00 0.00 87.96 87.96 0.00 P.071033 2002 KARN Tank Mgmt 32.00 130.90 0.00 0.00 25.07 113.61 49.87 -6.51 PO69889 2002 MlZORAM ROADS 0.00 78.00 0.00 0.00 0.00 8.08 -21.76 2.22 PO40610 2002 RAJ WSRP 0.00 140.00 0.00 0.00 25.84 37.49 23.67 0.00 PO50668 2002 M U M B A I URBAN TRANSPORT 463.00 79.00 0,OO 0.00 0.00 223.25 209.84 150.84 PROJECT PO50653 2002 KARNATAKA RWSS 11 0.00 151.60 0.00 0.00 15.04 16.06 3.26 0.00 PO50647 2002 UP WSRP 0.00 149.20 0.00 0.00 40.1 1 62.69 72.24 0.00 Total: 12,970.50 6,325.47 0.00 0.00 146.18 13,151.25 2,403.53 141.04 INDIA STATEMENT OF IFC's Held and Disbursed Portfolio S In Millions of U Dollars Corn rnitted Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2005 ADPCL 39.50 7.00 0.00 0.00 0.00 0.00 0.00 0.00 2006 AHEL 0.00 5.08 0.00 0.00 0.00 5.08 0.00 0.00 2005 AP Paper Mills 35.00 5.00 0.00 0.00 25.00 5.00 0.00 0.00 2005 APIDC Biotech 0.00 4.00 0.00 0.00 0.00 2.01 0.00 0.00 2002 ATL 13.81 0.00 0.00 9.36 13.81 0.00 0.00 9.36 2003 ATL 1.oo 0.00 0.00 0.00 0.68 0.00 0.00 0.00 2005 ATL 9.39 0.00 0.00 0.00 0.00 0.00 0.00 0.00 . 2006 Atul Ltd 16.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 114 2003 BHF 10.30 0.00 10.30 0.00 10.30 0.00 10.30 0.00 2004 BILT 0.00 0.00 15.00 0.00 0.00 0.00 15.00 0.00 200 1 BTVL 0.43 3.98 0.00 0.00 0.43 3.98 0.00 0.00 2003 Balrampur 10.52 0.00 0.00 0.00 10.52 0.00 0.00 0.00 2001 Basix Ltd. 0.00 0.98 0.00 0.00 0.00 0.98 0.00 0.00 2005 Bharat Biotech 0.00 0.00 4.50 0.00 0.00 0.00 3.30 0.00 1984 Bihar Sponge 5.70 0.00 0.00 0.00 5.70 0.00 0.00 0.00 2003 CCIL 1.50 0.00 0.00 0.00 0.59 0.00 0.00 0.00 2006 CCIL 7.00 2.00 0.00 12.40 7.00 2.00 0.00 12.40 1990 CESC 4.61 0.00 0.00 0.00 4.61 0.00 0.00 0.00 1992 CESC 6.55 0.00 0.00 14.59 6.55 0.00 0.00 14.59 2004 CGL 14.38 0.00 0.00 0.00 7.38 0.00 0.00 0.00 2004 CMScomputers 0.00 10.00 2.50 0.00 0.00 0.00 0.00 0.00 2002 COSMO 2.50 0.00 0.00 0.00 2.50 0.00 0.00 0.00 2005 COSMO 0.00 3.73 0.00 0.00 0.00 3.73 0.00 0.00 2006 Chennai Water 24.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2003 DQEL 0.00 1s o 1.50 0.00 0.00 1.50 1.50 0.00 2005 DSCL 30.00 0.00 0.00 0.00 30.00 0.00 0.00 0.00 2006 DSCL 15.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2005 Dabur 0.00 14.09 0.00 0.00 0.00 14.09 0.00 0.00 2003 Dewan 8.68 0.00 0.00 0.00 8.68 0.00 0.00 0.00 2006 Federal Bank 0.00 28.06 0.00 0.00 0.00 23.99 0.00 0.00 200 1 GTF Fact 0.00 1.20 0.00 0.00 0.00 1.20 0.00 0.00 2006 GTF Fact 0.00 0.00 0.99 0.00 0.00 0.00 0.99 0.00 1994 GVK 0.00 4.83 0.00 0.00 0.00 4.83 0.00 0.00 2003 HDFC 100.00 0.00 0.00 100.00 100.00 0.00 0.00 100.00 1998 LAAF 0.00 0.47 0.00 0.00 0.00 0.30 0.00 0.00 2006 IAL 0.00 9.79 0.00 0.00 0.00 7.70 0.00 0.00 1998 IDFC 0.00 10.82 0.00 0.00 0.00 10.82 0.00 0.00 2005 IDFC 50.00 0.00 0.00 100.00 50.00 0.00 0.00 100.00 IHDC 6.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2006 IHDC 7.90 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2006 lndecomm 0.00 2.57 0.00 0.00 0.00 2.57 0.00 0.00 1996 India Direct Fnd 0.00 1.10 0.00 0.00 0.00 0.66 0.00 0.00 200 1 Indian Seamless 6.00 0.00 0.00 0.00 6.00 0.00 0.00 0.00 2006 JK Paper 15.00 7.62 0.00 0.00 0.00 7.38 0.00 0.00 2005 K Mahindra INDIA 22.00 0.00 0.00 0.00 22.00 0.00 0.00 0.00 2005 KPlT 11.00 2.50 0.00 0.00 8.00 2.50 0.00 0.00 2003 L&T 50.00 0.00 0.00 0.00 50.00 0.00 0.00 0.00 2006 LGB 14.21 4.82 0.00 0.00 0.00 4.82 0.00 0.00 2006 Lok Fund 0.00 2.00 0.00 0.00 0.00 0.00 0.00 0.00 2002 MMFSL 7.89 0.00 7.5 1 0.00 7.89 0.00 7.5 1 0.00 2003 MSSL 0.00 2.29 0.00 0.00 0.00 2.20 0.00 0.00 2001 Mahlnfra 0.00 10.00 0.00 0.00 0.00 0.79 0.00 0.00 Montalvo 0.00 3.00 0.00 0.00 0.00 1.08 0.00 0.00 1996 Moser Baer 0.00 0.82 0.00 0.00 0.00 0.82 0.00 0.00 1999 Moser Baer 0.00 8.74 0.00 0.00 0.00 8.74 0.00 0.00 2000 Moser Baer 12.75 10.54 0.00 0.00 12.75 10.54 0.00 0.00 Nevis 0.00 4.00 0.00 0.00 0.00 4.00 0.00 0.00 115 2003 NewPath 0.00 9.3 1 0.00 0.00 0.00 8.3 1 0.00 0.00 2004 NewPath 0.00 2.79 0.00 0.00 0.00 2.49 0.00 0.00 2003 Niko Resources 24.44 0.00 0.00 0.00 24.44 0.00 0.00 0.00 2001 Orchid 0.00 0.73 0.00 0.00 0.00 0.73 0.00 0.00 1997 Owens Coming 5.92 0.00 0.00 0.00 5.92 0.00 0.00 0.00 2006 PSL Limited 15.00 4.74 0.00 0.00 0.00 4.54 0.00 0.00 . 2004 Powerlinks 72.98 0.00 0.00 0.00 64.16 0.00 0.00 0.00 2004 RAK lndia 20.00 0.00 0.00 0.00 20.00 0.00 0.00 0.00 I995 Rain Calcining 0.00 2.29 0.00 0.00 0.00 2.29 0.00 0.00 2004 Rain Calcining 10.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 2005 Ramky 3.74 10.28 0.00 0.00 0.00 0.00 0.00 0.00 2005 Ruchi Soya 0.00 9.27 0.00 0.00 0.00 6.77 0.00 0.00 200 1 SBI 50.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1997 SREl 3.21 0.00 0.00 0.00 3.21 0.00 0.00 0.00 2000 SREl 6.50 0.00 0.00 0.00 6.50 0.00 0.00 0.00 1995 Sara Fund 0.00 3.43 0.00 0.00 0.00 3.43 0.00 0.00 2004 SeaLion 4.40 0.00 0.00 0.00 4.40 0.00 0.00 0.00 200 1 Spryance 0.00 1.86 0.00 0.00 0.00 1.86 0.00 0.00 2003 Spryance 0.00 0.93 0.00 0.00 0.00 0.93 0.00 0.00 2004 Sundaram Finance 42.93 0.00 0.00 0.00 42.93 0.00 0.00 0.00 2000 Sundaram Home 0.00 2.18 0.00 0.00 0.00 2.18 0.00 0.00 2002 Sundaram Home 6.7 1 0.00 0.00 0.00 6.7 1 0.00 0.00 0.00 1998 TCW/ICICI 0.00 0.80 0.00 0.00 0.00 0.80 0.00 0.00 2005 TlSCO 100.00 0.00 0.00 300.00 0.00 0.00 0.00 0.00 2004 UPL 15.45 0.00 0.00 0.00 15.45 0.00 0.00 0.00 1996 United Riceland 5.63 0.00 0.00 0.00 5.63 0.00 0.00 0.00 2005 United Riceland 8.50 0.00 0.00 0.00 5.00 0.00 0.00 0.00 2002 Usha Martin 0.00 0.72 0.00 0.00 0.00 0.72 0.00 0.00 200 1 Vysya Bank 0.00 3.66 0.00 0.00 0.00 3.66 0.00 0.00 2005 Vysya Bank 0.00 3.51 0.00 0.00 0.00 3.51 0.00 0.00 1997 WIV 0.00 0.37 0.00 0.00 0.00 0.37 0.00 0.00 1997 Walden-Mgt lndia 0.00 0.01 0.00 0.00 0.00 0.01 0.00 0.00 2006 iLabs Fund 11 0.00 20.00 0.00 0.00 0.00 0.00 0.00 0.00 Total portfolio: 956.52 249.41 42.30 536.35 604.74 175.91 38.60 236.35 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2004 CGL 0.01 0.00 0.00 0.00 2000 APCL 0.01 0.00 0.00 0.00 2006 Atul Ltd 0.00 0.01 0.00 0.00 2001 Vysya Bank 0.00 0.00 0.00 0.00 2006 Federal Bank 0.01 0.00 0.00 0.00 2001 GI Wind Farms 0.01 0.00 0.00 0.00 2004 Ocean Sparkle 0.00 0.00 0.00 0.00 2005 Allain Duhangan 0.00 0.00 0.00 0.00 Total pending commitment: 0.04 0.01 0.00 0.00 116 Annex 14: Country at a Glance INDIA: Sustainable Urban Transport Project India at a glance 9/24/08 Lower- POVERN ana SOCIAL soum rniaair- inaia Ash income 2007 Populdan. mid-year fm/lionsJ 1.1233 1 520 3 437 Lfle expectancy GNI per capita (Allas method USSJ 950 880 I 887 GNI (Anas mefhoo:USS &//ansJ I 1.0694 1335 6 485 Average annual growth. 200147 POplliUbn (ss) 14 16 11 1 Lmfwce (%I a 18 GNI Gross 21 15 Most recent estimate (latest year avallable. 200147) enrollment Pwertv (% of populaon below nabom w e l /me) v rv I% urban ~opulauon of mfa/ po~il(abon~ 29 29 42 Lfle expectancyat birth (UeJn) 4 64 69 Infant n w m i (per 1,000 live Pinny ~~ 57 62 41 ChiM mlnutntion (% of ChMfefl onder 5) 44 41 25 Access to Improvedwater w r c e Access 10 an improved water sowce (ss of pcqu/afron) BY 87 88 Lneracy p orppu/armn age 15+) Gross pnmary enrcilmenl (% cfscnw/-agepopu/aranJ Male Femle 61 112 114 109 58 108 111 104 89 111 112 105 I --- -'lfldla Lower-nuddie-lncomegroup KEY ECONOMIC wnos ana LONG-TERM TRENDS GDP (US$ ci///onsJ Gross opltal f o r m a w G W E m R s d W s a d servicWGDP n a055 dOmSbC 5aVlnQYGDP Gross nallona WwngSIGDP 1987 276 0 22 0 57 20 6 20 9 1997 410 9 23 9 10 8 226 24 7 2W6 9163 36 0 22 1 33 0 35 3 2007 11710 382 21 3 35 1 37 2 1 Ec~lomlc ratios' Trade current aCcOunt baanceIGDP -1 9 -1 4 -1 1 -2 1 merest m e n t Y G D P 07 11 07 TMal debWGDP 20.1 23 0 16 7 Taal aebt wice/exports 237 21 6 75 Present value of debVGDP 12 7 present value of a e t w e w s 48 5 1~87.~7 i s m 1 7 2006 2007 200741 (avenge annual g r o m ) GDP 5.5 6.9 97 90 85 GDP per wp'la 35 5.3 82 77 72 Expons of g x d s and 5emces 115 154 189 75 138 STRUCTURE Ofthe ECONOMY (% ol GDPJ lSa7 2o06 2007 1 G r M h of capital ond GDP (X) Aqncunure 29.4 26.1 183 178 Industry 263 268 2Y3 254 Manufadmy 164 164 163 164 Sewices 443 47 1 524 528 HwSenoiaOnal ccnsumguon expenallure 67 1 660 567 54.8 ql ~ e m o a hmi consumptm emrditure 123 11 4 103 101 I I GCF -G@P ImpM1s of goods ana serwces (avenge annual growth) AgdCunure Industry hlrnadunng 1987a7 3.5 63 199747 27 72 2o06 38 110 2w7 A5 a5 Growth of expons and Impoils (*.) WT I 66 68 120 88 Services 68 85 111 108 HwseMd anal consumpurn expenditure 55 58 103 73 General p fml conswnptm emenallure vY 42 39 62 55 moss capi(a1 formam Imp& of goods and SeMces Note 2 w 7 data are preliminaryestimates This taWe was producedfmm Develqxnenl E m o m i n LDB dabbase e * m e anamMds show four key indiwtm in the muntry (in bola) compared wlth its inccine.gmup average ifdata are missmg. me diamond will k mamptete 117 PRICES and GOVERNMENT FINANCE :: i Ld ' tI 1987 1997 2006 2007 h m e s f i c pnces P change) A Consumer pnces lmpricil GDP dena:or 78 93 70 65 56 67 : ". a- $ Government finance @ of GDP, ificludes wrenf gransj current revenue 194 174 206 224 Current budgel balance -2 7 -3 5 -44 -1 6 OVem surplusldeficfl -92 -83 -65 -56 TRADE 1987 1997 2006 2007 Expn sad import levels (USS ntill.) (USS rntiil0ns) Total exports (IW) 12644 35.680 128,083 146.632 h mne p m d ~ t s 411 1.207 1.744 mw'T Ores and minerals 6W 1.061 7,033 Manufactures 8,195 26.547 82.818 91,657 Total rmpMts (af) 19812 51,187 191,254 238,296 Food 1.141 1.483 3.29 1 F U and energy ~ 3.118 8.164 57,074 Capital goods 5,064 9,796 52,944 71.311 ~xportpnce index (ZWO=IOO) 113 115 bnpod pnce index (ZOOO=roo) 116 110 Terms Of lrifde (ZWO=tOOj 97 106 BALANCE of PAYMENTS (USS llYk1Oos) of ~xports gocds and setvices 1987 1997 16.216 45.109 2006 204.264 2007 246.071 1 : e1 ; n accoiinl halaiice IO GDP (".) Imports of goods and services 22.839 59.297 n5.625 297.009 Resource balance -6,623 -14,iaa -31.361 30.176 Net income - 1,337 -3.521 -6.573 Net current transfers 2.698 11,830 27.941 30.176 Current acmun: baance -5.262 -5,879 -9.993 -24.408 Faancing items (net) 4.526 9,772 46 599 44 282 . Changes in net reserves 736 -3.893 -36,606 -19.874 Memo: Resetves includinggold (US$ m//ions) 6,223 29.367 198.710 218,,582 cmtrenim rate (DEC ,OCJVUSS) 130 372 A52 403 EXTERNAL DEBT and RESOURCE FLOWS 1987 1997 2006 2007 Composition of 2006 debt (USS mill.) (USS rnJ%OnS) Total debt outstanding and disbursed 55,570 94.317 153.075 1BRD 4,709 8.138 6.177 7.040 IDA 11,615 17.912 24,059 26,512 TOGI debt service 5.686 12.413 17.879 1693 806 1.410 597 739 IDA 166 381 &11 915 Composnionof net resource llows Otlicial qrants 531 MY a73 mtciai credtton 2.498 0 46 2144 Private uedilon 2,877 1,089 16.097 Foreigndirect Investment (net inflows) 212 3577 17453 Portfcllo equity (net inclows) 0 2556 9549 World Bank program CommtImi!s 3,504 2,305 1,228 3.174 Disbursements 2.212 1.372 1.787 1905 Pnnupal repaymenls 4% 1.070 942 1.089 Net flows 1,714 352 &15 816 Interest mvments 476 721 496 566 Net transfers 1.238 -419 349 251 This table was preparedby county unit ~ ' J K The Wmld Bank ~ r o c t p hgures m y differ tom m e r Wmld Bank plUished data 9Q4.08 118 Annex 15: Governance and Accountability Assessment and Action Plan INDIA: Sustainable Urban Transport Project 1. Traditionally, urban transport has not been an area o f priority in Indian cities. Part o f this can be attributed to the lack o f financial and managerial autonomy o f city administrations in the past. However, with the passage o f the 74th Constitutional Amendment Acts (1992), cities and urban local bodies have been empowered to take up urban infrastructure projects on a large scale. Urban transport has also received a tremendous boost after GO1 formulated and adopted a National Urban Transport Policy in 2006. The policy recognizes the need to strengthen certain key governance related areas such as establishment o f effective regulatory and enforcement mechanisms, development o f institutional mechanisms and capacity for enhanced coordination in planning and management, and development o f innovative financing mechanisms. In addition, the JnNURh4 which was launched b y Go1 in November 2005 mandates that cities develop a City development Plan and undertake certain reforms, to be eligible for government funds under the program. 2. The Governance and Accountability Action Plan (GAAP) for this project seeks to build upon the GOI's efforts and existing systems. In addition it seeks to ensure compliance with India's Right to Information Act that mandates public disclosure o f all project related information. The G A A P i s premised on enhanced transparency through better information disclosure and effective complaint handling mechanisms at implementing agencies to address public concerns, grievances and complaints. The underlying assumption i s that such enhanced disclosure and readressal mechanisms will increase public participation, involvement o f civil society and public scrutiny o f proposed projects. The G A A P will cover MoUD, which i s the leading agency in SUTP's preparation and implementation, and all six cities which are participating in Component 2 o f SUTP to implement demonstration investments. 3. The governance and accountability plan has been developed based on relevant urban transport issues identified from the Guidance Note on Transport Sector G A A P (which was itself evolved after a thorough value-chain analysis o f the entire sector), a comprehensive review o f existing systems at each project implementing agency (PIA) through detailed questionnaires and detailed discussions with project officers and M o U D during the preparatory missions. As detailed below, the risks will be primarily mitigated through augmentation o f information management systems and disclosure policies, strengthening institutional capacity, and effective systems for monitoring construction quality, public complaints and management o f environmental and social impacts. Even though the project involves different projects in different cities, it was also decided that a single action plan would be formulated, as i t was found that several issues were common to all the cities. In addition, depending upon the specific nature o f each project, some specific actions have also been formulated for each implementing agency, to strengthen the governance and accountability systems. The actions listed in the G A A P are also part of the project's Operations Manual, making it obligatory for cities to comply with the same. 119 K e y Governance Issues 4. Successful accomplishment o f the three key project development objectives would f l o w from good governance and accountability mechanisms in every stage o f the project cycle, namely, project preparatioddesigdplanning, project procurement and project implementation. One o f the key governance issues in this project i s that different projects are being implemented in several cities, which stretches the task o f monitoring and supervision. It also makes it imperative that the implementing agencies have the necessary institutional arrangements, procedures and capacity to implement the projects. 5. Some o f the key risks are identified during the project preparation as follows: Traditionally, city-level developments and initiatives were undertaken by state or central governments, with little or no participation o f the subject city in project planning or design. In addition, these initiatives were often based on political or other than technical considerations. This poses a risk o f biasedhncorrect selection o f projects, that may not align with the project development objectives 0 Limited capacity at all the implementing agencies i s a significant risk that could affect project implementation. 0 Since all o f these are demonstration projects, it i s imperative that information about the projects and their implementation i s widely disseminated for effective 2-way communication between public agencieshervice providers and p u b l i c k i v i l societyhsers in project selectiodimplementation to ensure project quality and sustainability. All project cities have established some types o f policies/programs or mechanisms for disclosure o f information. But effective communication has still yet to be developed to achieve high-quality outcome o f urban development investments. This is especially relevant for those cities that are proposing development or enhancements in non-motorized transport, as the users o f these facilities are generally the lower middle class citizens with little or no education. 0 The project includes improvements in existing bus services in Indore and Mysore. Traditionally, state and city transport undertakings have had little incentive to run effective and efficient transport services as they depended on grants from the state to fill the revenue-expenditure gap. As such, there i s a risk that these investments may not achieve the desired outcomes due to weaknesses in planning and implementation. For public to complain about these issues, effectiveness o f such services or other aspects o f implementation, there should be effective complaint handling mechanisms. Some project cities are in the process o f developing such mechanisms, and others are yet to start. This poses a considerable risk that the project benefits may not accrue to the intended beneficiaries. In addition, it poses a reputation risk to the Bank. 0 Monitoring o f quality both during project implementation i s imperative for ensuring project sustainability as well as safety and accessibility to the project beneficiaries. Except Pune, all project cities have not established independent quality monitoring mechanisms. This poses a risk o f sub-standard work, which would essentially result in l o w value for public money spent. 120 In procurement, there i s no prescribed process for debriefing o f unsuccessful bidders on city projects. The lack o f dispute resolution mechanisms i s also o f concern. These pose a risk to project completion as the unsuccessful bidders are more likely to take legal recourse to obtain a stay on the award o f contract. In addition, how to effectively prevent collusion o f bidders and intimidation o f non- city bidders i s also a challenge to these municipal corporations which do not have extensive experience in contract management. Under financial management, delay in issuing payments to contractors has often been an issue in the entire construction industry in India". From a governance perspective, some o f the smaller cities (e.g. Naya Raipur) do not have arrangements for electronic fund transfers (EFT) for payments to contractors. Lack o f EFT mechanisms could lead to payment delays, and associated fraud and corruption that could seriously affect project completion. Some opportunities 6. By virtue o f the fact that five o f the six participating cities are under the Government's National Urban Renewal Mission, cities are obligated to undertake reforms to augment their urban transport administrative set up, sources o f funds, formulation o f policies to streamline service delivery. Cities are also mandated to develop city development plans with their vision for the city in terms o f transport, water, sewerage etc., prepare and develop project proposals and completely monitor the approved projects from start to finish. As such, the projects proposed under the JnNURM, which i s being supported by the Bank in the participating cities, involve a high level o f involvement o f the city in every stage o f the process. This i s a welcome departure from the past where state or central governments funded growth o f a few urban centres based on political or other than technical considerations. 7 . The project envisages Bank support for enhancement/creation o f new BRT infrastructure in Pune, which was the first city in India to implement a BRT System in late 2006. However, this pilot corridor was poorly implemented resulting in a number o f accidents, due to lack o f foot overbridges for pedestrians, and non-BRT vehicles in the BRT corridor. As such, this project has the benefit o f the lessons learned from the implementation o f the pilot corridor, in terms o f amenities for pedestrians and cycle users. 8. The Go1 passed the Right to Information Act (RTIA) in 2005, which became operational for all government agencies, including public sector undertakings in the country in October 2005. The Act mandates both suo mot0 and on-demand disclosure o f all information in the public interest and places the burden o f such disclosure o n the government agencies. This Act would apply to all the implementing: agencies under the project in addition to MoUD. 9. Another redeeming feature o f this project i s that four o f the six cities namely, Mysore, Pune, Pimpri-Chinchwad and Jalandhar are somewhat familiar with Bank '*Indian Road Construction Industry - Capacity Issues, Constraints and Recommendations, The World Bank, October 2007 121 projects due to prior Bank projects in the corresponding states. In addition, all these cities have functioning websites, which have basic information on the administrative functioning o f the city. All cities also have facilities for the general public to post complaints, although the mechanisms are s t i l l rudimentary and not at all transparent. Pune has been proactive in ensuring quality on all city projects by appointing independent quality assurance consultants to monitor quality. 10. Civil society organizations are also quite active in Pune, Pimpri-Chinchwad, Indore and Mysore. In fact, in Pune, apart from the local city councilors, there are quite a few other organizations that have been urging the city administration to solve the problems faced by the commuters on the pilot BRTS corridor. To accommodate some o f these views, the Pune Municipal Corporation has also created a Non-Motorized Transport Cell comprising various stakeholders to elicit feedback on i t s NMT project. 11. Financial management in some o f the bigger cities such as Pune and Mysore i s relatively better than those in the smaller ULBs o f Indore, Naya Raipur and Jalandhar. However, JNNURM also mandates that cities reform their financial management systems as part o f their reform initiatives to be eligible for continued funding under the program. Existing mechanisms 12. As mentioned above, a detailed assessment o f various mechanisms in each city was carried out during the preparatory visits to project cities, and through questionnaires and telephonic interactions with officials. A snapshot o f existing mechanisms in each project city is given in the Table below. Pimpri- Naya Existing Mechanisms Mysore Pune Chinchwad Raipur Indore Jalandhar A) Information Disclosure Mechamisms Brochures? No No No No No No Annual reports? Yes No No Yes Yes No Display boards? No Yes Yes No No Yes Use of other media? No No No No No No Proposed project information? No No No No Yes Yes B) Right to Information Act Public InformationOfficer in place? Yes Yes Yes Yes Yes Section 4(a) compliant? No No No No No No Suo Mot0 Disclosures? No No No No No No C) Complaint Handling Mechanisms Online Mechanism? No Yes Yes No No Yes Process Described on Website? No No No No No No Online Tracking Enabled? No YeS Yes No No No Telephone Helpline/Hotline? No No No No No No Anonymous Complaint Accepted? No Yes Yes No No No Internal Vigilance Mechanism in place? No No No No No Vigilance information online? No No No No No D) Quality Monitoring Third-party monitoring? Yes Yes Yes No Yes No Mode o f monitoring? PMC PMC PMC PIA PMC PIA 122 Pimpri- Naya Existing Mechanisms Mysore Pune Chinchwad Raipur Indore Jalandhar E) Procurement E-procurementoperational? Yes Yes Yes No No No Debriefing o f unsuccessful bidders? No Yes Yes No No Yes 13. Information Disclosure: All project cities have appointed Public Information Officers to handle information requests as per the RTIA. However, only some o f the implementing agencyhity websites have information on the names and contact information o f these officers. In addition, none o f the cities have complied fully with the provisions o f Section 4(b) o f the RTIA in terms o f details o f duties and responsibilities o f officers o f the agency. 14. Other than the website, there does not seem to be any other published material indicating projects undertaken along with their costs, time for completion etc. O f the six cities, only Project Implementation Agencies (PIAs) in Mysore and Indore have published annual reports. Information boards are also only put up by just 3 cities (Pune, Pimpri-Chinchwad and Jalandhar). Few cities disclose any project related information on their websites. Press conferences are held once in a while to apprise the public. Project brochures are not prepared and/or not disseminated widely. The only other way for public to know about upcoming projects i s through tender notifications in newspapers. 15. Complaint Handling: Most cities have an online complaint handling mechanism and a corresponding tracking mechanism to track the status o f complaints. However, this i s mostly for the public to air their grievances on lack o f service delivery. N o city has a provision on the website for public to complain about JNNURM projects. There i s no information on to whom the complaint will be addressed and no set procedures/ specified timeframes for responding to a complaint, or if such procedures exist, they are not disclosed anywhere. Except for Pune, Pimpri-Chinchwad and Jalandhar, there i s no mechanism in any other city to debrief unsuccessful bidders. Also, in most cases, anonymous complaints are not investigated. 16. Oualihr Control: While some cities do have quality assurance consultants (such as Engineers India Limited in the City o f Pune), there are no independent quality reviews b y NGOs or other civil society organizations. The Pune Municipal Corporation has also created a dedicated N o n Motorized Transport (NMT) Cell for issues related to improving conditions for pedestrians and cyclists. The Cell i s coordinated by an Engineer o f the P M C reporting to the Commissioner and seeks inputs from citizens at large. 17. Detection o f Fraud and Corruption: The internal vigilance mechanisms in all o f the implementing agencies are weak and ill-equipped to tackle fraud and corruption. In most agencies, the internal vigilance section looks into whether procedures are properly complied rather than quality or value for money spent. For instance, in Pune, the Vigilance Department has two wings - a Technical Wing and an Administrative Wing. The Technical Wing looks into all tenders above Rs. 100 million, all building permissions and cases relating to land acquisition. All cases are either referred b y either the Municipal Commissioner or are through suo mot0 cognizance o f newspaper articles or written complaints that are backed with substantial evidence. Anonymous complaints 123 are not entertained. Once a case i s framed, the department examines whether it involves a monetary loss to the PMC. If it does not as in the case o f building permits/licenses or if the project has not been prepared properly, it conducts an enquiry and recommends suspension or, in rare cases, even removal o f the concerned officer. The Commissioner has final say on the action to be taken against the offending officer. If the case involves a monetary loss, then it files criminal charges and hands the case over to the district Police. 18. Cases involving fraud and corruption o f higher level officials o f the implementing agencies are usually investigated b y the Lokayukta (Karnataka, Madhya Pradesh and Maharashtra) and/or the state's vigilance unit or Anti-corruption Bureau (Punjab) as the case may be) that has jurisdiction over the implementing agencies. The Lokayuktas are state-level arms o f the Central Vigilance Commission (CVC). The State-level Vigilance Commissions are patterned after the C V C and the state-level commissioners who are appointed by the Governors have the status o f high court judges. The Anti-corruption , bureaus (or departments) are usually an extension o f the State Police, with considerable functional autonomy. These are usually headed by a Director-General o f Police, who reports directly to the Chief Minister o f the State. Action Plan 19. Based on the assessment, the following action plan has been evolved in coordination with the implementing agencies and the M o U D (see Table 1 below). In compliance with the provisions o f RTIA and to enhance governance and accountability, the P M U at the national level, the implementing agencies and the PIUs at the city levels have agreed to take specific actions in the following key areas: Augmentation o f the information management systems at each agency Enhanced disclosure o f information and full implementation o f RTI (especially Section 4b dealing with suo mot0 disclosures), which will facilitate oversight by the stakeholders and the general public and thus result in increased accountability. Development o f a functioning, independent, and credible system to deal with external complaints on procurement, fraud/corruption and construction quality with clearly defined incentives and remedies Strengthened monitoring indicators to help the PMU, P I A and the P I U to monitor compliance with the agreements and assess impact on outcomes. Actions to augment MIS 20. Each city will nominate the project manager as the information officer for the SUTP, to lead the MIS team in the agency. The information officer will be responsible for augmenting the level o f use o f Information and Communication Technology (ICT) for information management in the PIAs through implementation o f computer based information management systems in all the technical, financial and operational aspects o f the project. Cities have agreed to upgrade their MIS systems during project implementation. 124 Actions to enhance Information Disclosure 21. Implementing agencies have agreed on a disclosure policy (summarized in Box 1) that describes the documents to be disclosed, the frequency o f their disclosure and the media to be used for such disclosure (See details in the Chapter 8 in the Operations Manual). As a part o f their disclosure policies, all PIAs shall make available to the public all relevant documents in accordance with relevant provisions o f the RTI Act, except when otherwise warranted by legal requirements. Information shall be provided in a timely and regular manner to all stakeholders, affected parties, and the general public by the designated Public Information Officer or, in his absence, his subordinate. The detailed l i s t o f information on the SUTP that shall be posted on the P I A website i s given in the Operations Manual. All cities have also agreed to comply fully with RTI requirements for suo mot0 (Section 4b o f RTIA) disclosures through project implementation. Actions to enhance Complaint Handling 22. Each city will modify i t s complaint handling system to handle the following types o f complaints - general complaints, procurement related complaints, construction quality related complaints and social and environmental complaints. The system will include maintaining a log and record-keeping to monitor status o f follow up o f all comments, suggestions and grievances received. The implementation o f the system will be monitored by an official, who shall act as the Vigilance Officer (VO), to be appointed by the Project Manager at the PIU. The complaint handling mechanism would be widely disseminated (through Internet, newspaper advertisements, citizen information boards at highly visible locations, project brochures etc.) and will at a minimum include contact information o f complaint handling officers, dedicated email address and physical mail box locations, and procedures to handle various complaints (as given under Chapter 8 o f the Operations Manual). Implementing agencies will respond to all complaints within specific time periods (as detailed under each type o f complaint in Chapter 8 o f the Operations Manual), with a copy to the PMU, Lokayukta or the State's vigilance unit (as the case may be) and the Bank. Since most cities already have online tracking mechanisms, these may be modified to facilitate tracking o f project related complaints as well. 23. In addition to revising their complaint handling systems to receive and respond to procurement related complaints, implementing agencies will also establish a procedure to debrief unsuccessful bidders within a short period after the contract award notification. This will ensure transparency and infuse confidence in the unsuccessful bidders about the bidding process for future bids. 24. Complaints regarding procurement or construction quality shall be received and reviewed by the P M at the P I U level and dealt with in the manner prescribed in the Operations Manual. 25. For grievances involving land acquisition and/or rehabilitation or any other social/environmental aspects, a Rehabilitation and Resettlement Committee shall be constituted within the P I U to review and redress the same, as described in the Operations Manual. 125 26. Tracking o f the status o f investigations and measures taken will be reported in monthly reports to management. Complaints deemed possible serious infringements may be referred to the State Vigilance Commission or L o k Ayukta o f the state (as the case may be) for further investigation. 27. Cities have agreed to strengthen their complaint handling systems prior to implementation o f their projects. Actions to deter fraud and corruption 28. Allegations o f fraud or corruption may be received in writing by the State Government, PM, VO, or competent officer of the PIA, and shall be dealt as per rules and regulations o f the State. Where allegations are shown to be valid, sanctions shall be imposed as per the relevant government instructions. These may include blacklisting o f the contractor for a specific period, termination of all contract awards to the contractor in that particular city, recovery o f penalties from the contractor to compensate the agency for the delay in project award/completion and recovery o f the additional costs incurred on the project due to award o f the subject contract to the next lowest bidder. Simultaneously, strict disincentives will be announced for the erring members o f the departments who are found to be colluding with contractors or have misused project funds. P I A will establish the remedial actions and sanctions for cases o f fraud and corruption that are reported and for which evidence i s found and charges established after due process o f investigation. This will include sanctions to government staff proven to be involved in such cases. Details o f the actions are given in the Operations Manual. Actions to enhance quality 29. In this project, quality will be mainly assessed by the project management consultants, implementing agencies and P M U before additional funds are disbursed. Some cities have already engaged the internationally renowned NGOs I T D P and Embarq would also be doing quality audits and providing other needed technical assistance to the cities on the various projects. Enhanced information disclosures and effective complaint handling mechanisms as described above would also facilitate public participation and would help in monitoring quality o f works. However, the quality assurance could definitely be strengthened through independent reviews by civil society organizations such as Center for Environment Education (CEE) in Pune, which could coordinate with other NGOdaffected stakeholders in the area on project quality and implementation. The project team has had preliminary discussions with CEE for undertaking such third-party monitoring in collaboration with all affected stakeholders. 30. The project will encourage project cities to follow the example o f Jaipur in enhancing citizen participation. Jaipur (a non-SUTP city), has constituted a Citizen's Technical Advisory Group (CTAG) comprising eminent citizens and experts to guide the city o f Jaipur on governance and management o f urban projects, enlist community participation in project implementation and service delivery and ensuring transparency and accountability to i t s citizens on the JnNURM program implementation in the city. The C T A G i s also helping Jaipur to set up a Citizens Volunteer Technical Corps (CVTC) N U M that would facilitate citizen participation in J N R implementation. 126 3 1. In addition, to monitor quality, user satisfaction surveys are proposed for all project cities, and a pilot survey funded by AusAid TF i s being conducted in Pune. A local NGO, the Bangalore based Public Affairs Center has been appointed to assess the various aspects o f the BRT and the NMT projects in Pune from the users' perspective. PAC has extensive experience in developing citizen report cards and social audits on delivery o f municipal services. Based on the results o f the pilot, the project proposes to conduct similar user satisfaction surveys in other cities both at the beginning o f the project and at project completion. The results o f these surveys will be disseminated in the peer-to-peer city workshops, to facilitate knowledge transfer and allow for course corrections. The cost for these surveys can be partially covered by the M&E component o f each individual project. Monitoring Indicators 32. As per the RTIA, the P I U at city level will provide to the Project Manager o f the P M U at the national level an annual report on the implementation o f the provisions o f the RTI Act and forward a copy thereof to the appropriate Government with details such as the number o f information requests received, the number resolved, pending etc. 33. The funding agency and the P M U will also monitor implementation o f the arrangements and actions related to proposed project, through inter alia, the following: Disclosure o information will be supervised mainly through: (a) checking the f frequency and comprehensiveness o f website updates, and (b) checking the distribution o f materials to key participating civil society groups; and (c) checking the comprehensiveness o f information available at Public information kiosks. f Functioning o the complaints handling system and the system o sanctions and f remedies will be supervised mainly through: (a) records maintained by the vigilance officer o f the implementing agency; (b) periodic review o f statistics based on records kept on the website o f PIA; and (b) field level checks to ensure that problems are being reported and acted upon. Implementation o user satisfaction surveys will be supervised mainly through: (a) f records maintained by the implementing agency; (b) reports from the independent quality monitoring entities. . Indicative Costs 34. The cost o f the G A A P implementation at city level i s part o f the M&E (financed by GEF) and project implementation expense (financed by cities themselves), primarily consisting of: (a) incremental staff monitoring costs; (b) cost to upgrade MIS systems; (c) costs to upgrade complaint handling mechanisms; and (d) cost o f user satisfaction surveys. Cost o f piloting third party monitoring will be covered by NGOs themselves. 35. I t has been agreed that M o U D and the Bank will conduct a joint review/evaluation o f the project implementation arrangements at the end o f the first year o f project implementation and then at the mid-term review stage (refer to Annex 5 o f PAD). This 127 review w i l l also evaluate the implementation o f the GAAP and necessary changes may be agreed to improve the effectiveness o f the GAAP. Box 1: Summary o f Disclosure Policy (derived from the SUTP Operations Manual) The project has developed the following disclosure policy under this project to enhance transparency o f the decision processes during the implementationphase, including those for procurement, financial and safeguards; and to fully comply with the legal requirements under the RTI Act, 2005. Agreed Elements o f Disclosure o f Information 1. P M U and the World Bank will each make publicly available, promptly after completion of a M T R of a project carried out in accordance with the loan agreement, the M T R report and the aide- memoire prepared for this purpose. 2. P M U and the World Bank will each make publicly available promptly after receipt all final audit reports (financial or otherwise, and including qualified audit reports) prepared in accordance with the loan agreement, and all formal responses o f the government. 3. P M U will (and the World Bank can): (i)make publicly available promptly upon finalization of the same, a l l annual procurement plans and schedules (ii) make available to any member of the public, promptly upon request, all bidding documents and requests for proposals issued in accordance with the procurement provisions o f the loan agreement, subject to payment o f a reasonable fee to cover the cost o f printing and delivery. In the case o f requests for proposals, the relevant documents will only be made available after notification o f award to the successful firm. Each such document will continue to be available until a year after completion o f the contract entered into for the goods, works or, services in question; (iii) make available to any member o f the public promptly upon request all short lists of consultants and, in cases o f pre-qualification, lists o f pre-qualified contractors and suppliers; (iv) disclose to all bidders and parties submitting proposals for specific contracts, promptly after the notification o f award to the successful bidder/consultant, the summary o f the evaluation of all bids and proposals for such proposed contracts. Information in these summaries will be limited to a l i s t o f bidders/consultants, all bid prices and financial proposals as read out at public openings for bids and financial proposals, bids and proposals declared non responsive (together with reason for such an assessment), the name of winning bidder/consultant and the contract price. Such summaries will be made available to the public, promptly upon request; (v) allow representatives o f the end-users of the goods or works being procured to attend the public bid openings; (vi) make publicly available and publish widely contract award information for all contracts for goods and works in accordance with the agreed procedures as contained in the loan agreement, but in any case those above US$lOO,OOO equivalent and all contracts for consultants above US$50,000 equivalent, promptly after such award; and (vii) make available, promptly upon request by any person or company, a list o f all contracts awarded in the three months preceding the date o f such request in respect o f a project, including the name o f the contractor/consultant, the contract amount, the number o f bidders o f proposals, the procurement method followed and the purpose o f the contract. 128 Table 1: Action Table f o r Strengthening Governance & Accountability Mitigating Measure Responsible Entity Timeline Indicator PlanningProject Selectio Biasedincorrect Only include projects A l l Implementing BY Detaildminutes o f selection of identified under the CDP agencies (PIAs), identification o f public consultations projects, that may and CMP which were MoUD any city project as disclosed on not align with PDO prepared through agency websites (Moderate) extensive public consuItations. Inclusive project All PIAs, MoUD B y appraisal o f preparation process with any city project involvements of stakeholders Disclosure o f All PIAs, MoUD information o f the proposed projects Independent review o f PIAs in all Group A Sample DPRs by Cities * feasible internationally renowned NGOs I Lack of capacity to M&E system in place A l l PIAs and PMU Prior to project ensure quality of implementation works leading to Capacity building A l l PIAs, PMU and Through Training needs sub-standard work, training needs advisory NGOs implementation assessment surveys, low value for assessment, training plan detailed training money spent and no for technical evaluation, plan accrual of benefits contract management, to intended construction supervision beneficiaries and inspection (Substantial) Conduct regular PMU Through supervision (including implementation site visits and technical audits Independenttechnical A l l PIAs and Whenever audits by international advisory NGOs feasible experts Complaints mechanism A l l PIAs Through Number of in place to handle implementation complaints received complaints on and responded to construction quality City-to-City Peering PMU/NGO 1-2 times a year Workshops to help during project sharing experience implementation Project Assurance A l l PIAs (already in Through project Cases o f non- Consultants to conduct place in Pune) implementation compliance with aualitv audits quality reports User satisfaction surveys A l l PIAs (already Beforelafter to assess quality and piloted in Pune) implementation collect feedback from citizens Monitor-ing'anil - : ' ,, I' . ), . . ' . . .. . . . . . Evaluation ' "5% _........ _ . .. ... 8 . .., . .. . . . . . . ' i l . . ' . , % * 129 Risk (Level) Mitigating Measure Responsible Entity Timeline Indicator Achievement of Independent review of All PIAs Annually Dissemination o f PDO adversely project ,implementation results through affected by loss of and impact opportunity to apply mid course correction /efficiency gains (Moderate) Lack o f information Implement the All PIAs / PMU Through project about project Information Disclosure implementation implementation, policy (included in the which affects public Operations Manual) participation and Compliance with the Through project sustainability RTIA on suo moto implementation (Substantial) disclosures Collect and discuss citizen's feedback implementation through project website, e-newsletter, city workshops, NGO forums Lack o f access to Complaint handling citizens during mechanism set up to project handle any complaints on implementation construction quality, (Moderate) social, environmental or Inefficient F M and Nominate an information All PIAs By end of the poor records officer who will carry out first year keeping implementationof project (Substantial) computer based implementation information management systems. Institute Electronic Fund Transfer (EFT) cities* first year beyond maximum mechanism for payments project period stipulated in to contractors All PIAs complaints received complaints and procedure and actions taken in unsuccessful to include debriefing of the bid evaluation delayed project start 130 Risk (Level) Mitigating Measure Responsible Entity Timeline Indicator Lack o f citizen Promote and replicate All PIAs [Note - involvement in good practices in ' already in place in complaints received project NGOkitizen Pune ( ), and A from beneficiaries implementation participation in project Jaipur (#)I on project (Substantial) implementation implementation * Cities participating in the SUTP are grouped into Group A cities and Group B cities. Group A cities receive both GEF grant and World Bank loan and implement relatively large size demonstration investments. These cities are Pune, Pimpri-Chinchwad, Jalandhar and Naya Raipur. Group B cities only receive GEF grant for implementing small size investments, including Indore and Mysore. ( ) Pune Municipal Corporation has commissioned Engineers India 'Limited as the quality assurance + consultants for all construction works (larger than Rs.1 million) to be carried out by the corporation. In Hyderabad (a non-SUTP city), local universities have been commissioned to provide quality assurance for construction projects undertaken by the municipal corporation. ( ) Pune Municipal Corporation has set up a NMT cell to communicate with a local NGO forum (Pune Traffic and Transportation Forum) which i s participated by a number o f local and international NGOs focusing on urban transport issues. Regular meetings and thematic workshops have been carried out to discuss urban transport problems in the city and various urban transport projects the city i s undertaking. During preparation o f this project, PMC has also agreed to more actively involve these NGOs in the implementation o f the GEF demonstration projects. , ' ( ) Jaipur i s a non-SUTP city in Rajasthan, a SUTP state. The city has constituted a Citizen's Technical Advisory Group (CTAG) comprising eminent citizens and experts to guide the city of Jaipur on governance and management o f urban projects, enlist community participation in project implementation and service delivery and ensuring transparency and accountability to i t s citizens on the JnNURM program implementation in the city. The CTAG would also help the city o f Jaipur in setting up a Citizens Volunteer Technical Corps (CVTC) that would facilitate citizen participation in JnNURM implementation. 131 Annex 16: Supervision Strategy INDIA: Sustainable Urban Transport Project Obiective and Focus 1. The supervision strategy covers supervision to be undertaken b y Government, the Bank, and UNDP on the entire GEF-funded SUTP program which includes both Bank supported activities and UNDP supported activities. 2. The objective o f the supervision i s to ensure (i) objectives o f the SUTP Program the are satisfactorily achieved by project end; (ii) implementation o f all project activities follows agreed procedures and complies with all fiduciary and safeguard requirements. 3. To achieve the above objective, the supervision will focus on (i) technical quality assurance for preparation and implementation o f project activities; (ii) fiduciary control (including safeguards) over project activities; and (iii) capacity building for ' M o U D and project implementing agencies (PIAs), especially P M U and PIUs. Information and Database 4. A three-prong strategy will be followed for obtaining information about the project activities: (i)Routine client information on implementation progress o f the project components, through (a) the overall Project M&E System to be established at the national PMU; (b) the M&E System to be established at each State PIA at the city level; (ii) Periodic assessments and project updates through: (a) Routine supervision by PIUs; (b) Regular supervision by PMU; (c) UNDP review and supervision missions(samp1e basis); (d) Bank review and supervision missions(samp1e basis); (e) Random inspections by Bank team(samp1e basis); ($Third party assessments through: (f) Quality advisory and audits by professional NGOs or experts (sample basis); (g) Grievance redressal measures (reports on grievances and redressals); and (h) Citizen and NGOs feedback received on the project websites, city-to-city peering workshops, NGO forums, and citizen reporting card (the last two currently only available in Pune). M a i o r Tasks of Supervision 5. The P I U routine supervision will focus on the following activities: (i)Quality o f and progress in the implementation o f the respect demonstration project( s); 132 (ii) Implementation o f environmental and social safeguard measures by contractors. 6. The P M U regular supervision will focus on the following activities: (i) Quality o f and progress in the implementation o f the capacity building, training dissemination, and communication programs (Component 1); (ii) Quality o f and progress in the implementation o f Component 2. (iii)Compliance with the Operations Manual by IAs, especially regarding safeguards, fiduciary and GAAP; 7 . The Bank review, implementation support missions, and random inspections will focus on the following activities: (i)Quality o f the implementation o f the SUTP; (ii) Compliance with the Operations Manual by P M U and all PIUs, especially regarding safeguards, fiduciary and GAAP; (iii)Assistance in preparation and appraisal o f demonstration projects in Phase 2 Cities (during the first year o f project implementation); (iv)M&E for Component 2 at both P M U and PIU. 8. The audits by professional NGOs (or individual experts) and feedback from citizens/NGOs will focus on the following activities: (i)Quality o f the city demonstration projects; (ii) Compliance with the Operations Manual. Supervision Teams and Budget 9. At P I U level, the cost for M&E and routine supervision has been included in the project budget (2.5 percent o f total physical investment cost). 10. At P M U level, a total budget o f $2.45 million has been allocated for M&E and regular P M U supervision for the entire SUTP program. The P M U will be headed by a National Project Director who i s the senior officer in charge o f urban transport in the MoUD. The Director will be supported by a full time National Project Manager, a transport specialist and a financial manager as well as a Project Management Consultant (PMC) team consisting o f transport, procurement, social, environment, training, and information specialists. 11. The UNDP supervision team will consist o f two locally based U N D P capacity building experts and one or two transport specialist consultant(s). The UNDP Bangkok Regional Office will also carry out annual review o f the project implementation. The estimated budget for the UNDP supervision i s shown in the table below: 133 12. A Bank supervision team will be established for supervising both the GEF and Loan components o f the SUTP. The Team will consist o f two to three international specialists on urban transport, 'institutional development/governance, and six to seven locally based specialists experienced in transpodtraffic engineering, procurement, financial management, social, environment, civil engineering, contract management, and M&E. In additional to regular supervision missions for all cities (twice a year), interim technical mission will be carried out for Pune, Pimpri-Chinchwad and Naya Raipur which receive a World Bank loan in addition to GEF Grant. The first year supervision will also include assistance in preparation and appraisal o f demonstration projects in Phase 2 Cities. The estimated Budget (BB) for the Bank supervision i s shown in the table below: Table 2: Estimated Bank Budget for Project Supervision BB GEF Total Unit: $1000 Budget 1 Year 200 200 400 Ydvear 150 150 3 00 3rd year 150 150 300 4' year 100 100 200 Shyear 100 100 200 700 700 1,400 13. A joint GoI/Bank/UNDP review o f implementation arrangements (including this supervision strategy) will be carried out at the end o f the first year o f project implementation and during the mid-term review. Necessary changes may be agreed and made for the remaining period o f project implementation. 134 l- I t C 6 .- m .- * .- e, n E VI E .- .- b 9 3 .- I cs Annex 17: Incremental Cost Analysis o f GEF SUTP INDIA: Sustainable Urban Transport Project 1. The analytic approach adopted i s a hybrid o f both direct-effect and indirect-effect methods. For the direct-effect analysis, the specific investments included under the SUTP (although they are not financed directly by GEF) have been included where relevant, since it i s considered that those investments have been developed as a by- product o f dialog with the Bank on the GEF project. s I. B usiness-as- U ual baseline scenario 2. Under the Business as Usual scenario, the following circumstances have been assumed. 3. First, under the JNNURM, cities are generally expected to adopt five major reforms for urban transport 1) Constitution o f Unified Metropolitan Transport Authority 2) Preparation o f Comprehensive Mobility Plan 3) Formulation o f parking policy 4) Formulation o f advertisement policy 5) Setting up o f the dedicated funds for urban transport 4. However, follow-up on implementation o f such reforms has been lax, and, indeed, cities have no deadline for implementation at all. It i s assumed that in the absence o f the GEF project, therefore, none o f the nine cities under the program will have resources to make any progress on these measures. 5. Second, in the absence o f the GEF project, it i s assumed that there will be no benchmark data available for gauging any GHG emissions reductions associated with urban transport interventions, because such data i s not regularly collected under any program. Under such circumstances, it i s assumed that any GHG emissions reductions that may be claimed to result from urban transport interventions would be unmeasurable. 6. Third, in the absence o f the GEF project, it i s assumed that there would be no active research and development on the implementation o f sustainable urban transport systems in India in the next three to four years. 7. As a result o f the above, it i s assumed that the BAU condition in the absence o f the GEF financing would be a program o f multi-city projects intended to advance the NUTP, using a combination o f IBRD, JnNURM, state, and local finance. But while many o f the measures implementedunder this program might help lower the trajectory o f transport CO:! emissions, the mechanism o f implementation - and the lack o f specific concern o f the N U T P with GHG emissions reductions - would leave three particular vulnerabilities or risks that could lead to higher COz emissions than would be the case if these vulnerabilities could be addressed (that is, the with-GEF-project condition). 138 a. Unbalanced implementation o f the N U T P such that those measures that do not generate GEBs are favored, because o f local political pressures. That national authorities have tied NURM funding to compliance with the N U T P i s an important step for sustainable transport in India, but most NURM-eligible cities' primary interest i s to obtain the resources, not necessarily to do the right thing by the global environment. They would otherwise be inclined to do the bare minimum needed to comply with the requirements for national funding. For example, among other aspects o f sustainable transport, the NURM calls for use o f different technologies in public transport, as well as the use o f "cleaner technologies" for transport in general. In the absence o f the SUTP project, local officials may conclude that it i s more politically expedient to focus entirely o n technological solutions - for example, accelerated replacement o f diesel vehicles with C N G technology - which would have minimal global environmental benefits. b. Lack o f knowledge at the local level o f best practices, and lack o f capacity at national and state levels to disseminate best practices to local officials and technical specialists. This risk leaves local governments vulnerable to the possibility that, even if their intention i s to engage in sustainable transport policy and investments, they might inadvertently be repeating mistakes that could generate COz emissions. For example, under the baseline, the new town at Naya Raipur i s assumed to develop along a low-density, "Garden Suburb", car-oriented model. By definition, car and motorcycle use to and within Naya Raipur - and the C02 and other po1,lutant emissions associated with such use - will increase rapidly and substantially, because other accessibility options have been l e f t out o f consideration. c. Financing gaps that would leave critical elements o f a package o f measures for sustainable urban travel unfunded. For example, in Indore, Pune and Pimpri - all o f which are already developing BRT systems - key components o f those systems that can help the BRT operations obtain time and reliability competitiveness with private cars and two-wheelers would likely not be implemented under the baseline scenario - that is, in the absence o f the SUTP project. As a consequence, these systems under the baseline scenario would be less apt to attract choice riders than if the gaps could be funded. 8. The fundamental incremental value o f the proposed SUTP project, then, i s to reduce the risk that these vulnerabilities pose. These themes outlined above recur in the discussion o f the individual cities' pilot demonstration projects that follows. 9. Pune. Pune's BRT system i s already well under construction. Until now, this system has been developed with little explicit consideration for integration with the non- motorized system. As Pune has used out all JnNURM funds, it has requested an IBRD loan o f about US$26 million to assist with the development o f non-motorized facilities, under the sister GEF SUTP project, in conjunction with GEF funding under the present project, Under the baseline scenario, it i s assumed that these investments would not be 139 made. As a result, Pune's urban transport network would remain somewhat lopsided, with a fairly well developed bus-based public transport network, but sub-optimal conditions for walking and cycling. 10. Pimpri-Chinchwad. I t i s a historically industrial city in the Pune metropolitan area, but has seen substantial residential development in recent years. To meet the challenges o f this growth and the change in character it implies for the municipality, Pimpri has developed both ambitious road and public transport plans, and has requested funding from both the JnNURM and the World Bank for funding. Given limited resources, it i s assumed that in the absence o f the SUTP, most o f the focus o f capital investment would be on the road side. 11. Indore. Under the baseline scenario, Indore would continue to develop i t s BRT system, using i t s US$7.5 million allocation from the JNNURM program and matching state grant to fund aspects o f this development. Key elements that would guarantee a travel time advantage to the BRT, and thus induce erstwhile motorists to use i t - namely, the automatic fare collection system, and bus traffic signal priority - would have had to be financed from the bus operators' investment directly, as a requirement o f participation in the concession. This requirement would have either resulted in higher fares (again, discouraging ridership), or reduced the level o f interest in participation in the system by . the private sector, which, in turn, would increase overall costs. Indeed, it i s unclear whether such systems could be cost effectively internalized into the system, in which case the new BRT service would probably have gone without them, and would have been less attractive to choice (motorized) riders. 12. Mysore. While Mysore has developed an ambitious set o f recommendations under the City Development Plan it i s producing under the requirements o f the JNNURM, i t s participation in the SUTP project focuses largely on improvements to the conventional bus system that i s already operational there. Under the baseline scenario, it i s assumed that the system would remain functional, serving "captive" riders who have no alternatives, but that the amenities provided by the service would not attract riders who might otherwise use two-wheelers or IPT. In addition, it i s assumed that over time, because o f the need to safeguard local air quality, the bus companies in Mysore would eventually be pressured to convert to CNG. While C N G buses have numerous local air quality advantages over conventional diesel buses in urban operation, they generally emit more greenhouse gases than equivalent diesel buses, all else equal. 13. Naya Raipur. Under the baseline scenario, Naya Raipur would develop as a new satellite city to Raipur under a "Garden City" model - l o w densities, broad boulevards, isolated developments within large, single-land-use swaths o f land - and would have little attention paid to alternative transport to and within the city, other than design and engineering o f conventional bus stops into the underlying design. Transport services between Raipur and Naya Raipur would not be well planned and left to the ad-hoc response o f the market. As a result, public transport mode shares to and within the city o f Naya Raipur at maturity would be very l o w by Indian standards; most travel would be by shared taxis, IPT, two-wheelers, and private car. 140 14. Jalandhar. Jalandhar has requested GEF support to help develop specific non- motorized transport and public transport facilities around the city. Because Jalandhar has not been designated as a NURM city, the BAU baseline scenario assumes that these facilities - and the associated NMT master plan - would also not be developed. In addition, the baseline scenario assumes that Jalandhar will have no technical or policy guidance in i t s development going forward. II.Strategic approach to Global Environmental Benefits envisioned under the SUTP 15. The SUTP's intent from the global environmental perspective i s to try to reduce the growth o f CO;! emissions from the urban transport sector, by supporting more effective and comprehensive implementation o f India's N U T P than would have been the case in the absence o f the GEF funding and IBRD finance associated with the SUTP. The Strategic Objective underlying this approach i s to facilitate market transformation for sustainable transport and accessibility in urban areas, thereby leading to reduced GHG emissions compared to the base case without the SUTP project. This strategic approach i s fully consistent with Strategic Program 5 ("Promoting Sustainable Innovative Systems for Urban Transport") as outlined in Annex 2 o f Focal Area Strategies and Strategic Programming for GEF-4 as published by the GEF Council on July 25,2007. 16. To fully evaluate the potential benefit o f the GEF investment, the analysis o f GEBs i s carried out at two levels. The first level -termed "direct effects" for the purpose o f the analysis - examines the likely GHG benefits o f specific investments made either by the GEF funds directly, or more substantially, by IBRD financing that will occur because o f the GEF program. Because most o f the proposed GEF funding will be used for technical assistance, rather than investment in works or goods, a second level o f analysis i s included examining the "indirect effects" o f this TA - that is, the orders o f magnitude o f emissions reductions that could be expected if cities enacted a suite o f measures on sustainable transport as a result o f their participation in the SUTP (Bus Rapid Transit with extensive and effective NMT access integration, parking management, traffic demand management, and overall integration o f management and planning o f urban transport.) III. Incremental contribution o G E Ffunding and IBRDfinancing it is leveraging f 17. The participation o f both the GEF and the World Bank in the project as a whole, and in the particular cities, provides value-added reductions in COzeqemissions in four key ways. 18. First, the Bank's technical guidance, as well as the basic requirements o f the GEF for funding, provides an important counterweight to local political and social pressures in the determination o f priorities for implementation o f the NUTP and for spending resources related to the JnNURM program. Market transformation o f travel demand i s politically tricky, and many policy makers in Indian cities often opt for the short-term expediency o f purely technological measures, or focus excessively on traffic management 141 solutions to acute congestion crises that garner popular press coverage, rather than grapple with the complexities o f trying to influence demand. 19. Second, the involvement o f the Bank and GEF will help provide key expertise and guidance - and access to international consultants and experts on worldwide best practices - for local policy makers, to help them avoid common mistakes and pitfalls in implementation o f the market transforming mandates o f the NUTP, mandates which involve new concepts and paradigms for many local officials. Indeed, the Bank's involvement has already substantially improved many o f the city proposals for funding under the SUTP, primarily through an emphasis on environmental and mobility outcomes, rather than simply on physical outputs such as infrastructure creation or hardware investment. 20. Third, GEF funding and IBRD finance i s providing needed capital to invest in critical missing elements o f some cities' sustainable transport investments, enabling these cities to not only provide the basic services envisioned by the investment (such as BRT operation), but to actually influence and transform mobility markets, by attracting choice riders who might otherwise use high-CO2 emitting modes. 2 1. Finally, by consolidating and coordinating the activities o f a number o f different cities under a single program, the GEF-supported SUTP program as a whole has generated - and will continue to generate - higher levels o f positive visibility for BRT and NMT investments than otherwise would have been the case, thereby increasing the likelihood o f replicability among cities around India, including those not associated with the GEF project. D i r e c t Effects Analysis 22. The precise mechanism by which the SUTP project will make these incremental contributions to each city i s discussed in more detail below. 23. Pune. As a JnNURM city that has a substantial BRT system under development, Pune already has a track record o f relatively environmentally friendly transport investments by Indian standards. The incremental global environmental benefit brought by the SUTP program to this impressive track record i s to incentivize Pune's consideration o f and investment in non-motorized transport. The increased focus on improving conditions for pedestrians and cyclists would both improve their attractiveness as travel options for motorists and users o f I P T for work and education (non- discretionary) trips, and, by improving public transport accessibility, enhance the appeal o f using public transport - particularly the new BRT - for these same groups. If the break-even reduction in two-wheeler trips described in the economic analysis for the Pune project were to materialize as a result o f the investment made under the proposed World Bank loan project, assuming current underlying patterns o f transport continued, the project i s estimated to reduce about 2 1,000 tons o f C02 from two-wheelers over ten years. This reduction does not take into account any reduction in car or auto vkt that may occur as a result o f the project. This assessment also does not include any C02 emissions 142 reduction that may be associated with potential financing o f expansion o f the BRT system. 24. Pimpri-Chinchwad. For Pimpri, the incremental global environmental benefit provided by the SUTP i s the initial funding for the development o f the BRT network. The funding will ensure that major public transport investment occurs at the same time, if not earlier, as investments in roadways. The development o f the BRT will contribute to C02 reductions by both reducing specific energy consumption per public transport seat- kilometer provided, and by reducing the total number o f vehicle kilometers that need to be driven in order to meet a given demand for daily trips. Preliminary analysis suggests that the project will help avoid about 50 kilotons o f C 0 2 over ten years. 25. Indore. The proposed SUTP pilot component in Indore would provide incremental funding and technical expertise to help implement two technologies that will help the BRT system be more competitive with private modes. These technologies - automatic fare collection and bus signal priority - will enable the BRT to operate both faster and more reliably. Improved speed and reliability will help the public transport system attract certain time-and-cost sensitive riders who might otherwise have taken two- wheelers or intermediate public transport. Additionally, automatic fare collection technology will help reduce bus dwell time at stations, thereby reducing idling. It i s estimated that the implementation o f these technologies would reduce fuel consumption by about two percent per year o f f o f the BRT-only baseline, which translates to a savings o f about 370 tons o f COz per year. Taking the average l i f e o f these equipments as ten year, the project would generate 3,700 tons o f COz in total. 26. Mysore. The SUTP would provide incremental finance to enable Mysore to purchase Intelligent Transport Systems applications for i t s bus system. Such applications would improve travel time and travel time reliability on the system, by making transport operations more predictable, and reducing the response time to traffic incidents. These operational improvements would, in turn, help reduce the number o f vehicle kilometers required to meet a given service level, and incentivize higher ridership. Both such changes would result in lower C02 emissions. 27. Mysore has proposed implementation o f Intelligent Transport Systems equipment and operation on 185 buses (37 percent o f fleet), 80 bus stops (17 percent o f stops) and two terminals (100 percent). ITS has a number o f wide ranging benefits for bus fleet operations, and a number o f these have potential knock-on effects for GHG emissions reduction in particular. These effects include: Incident management and vehicle tracking system means reduction in congestion effects on the network (reduced brawn or B in A B C identity) Electronic ticket sales and machines will improve speed and reliability o f service for users, which will increase ridership among time / reliability - sensitive travelers (e.g. those with access to two-wheelers). Resulting changes will reduce overall vehicle activity (A), and reduce network congestion, which will, in turn, also reduce the energy intensity per vehicle kilometer (brawn or B in ABC ' identity). 143 Regular and reliable collection o f data on vehicular movements afforded by ITS, combined with data on fuel consumption, will allow for more accurate, real-time tracking o f C02 emissions from the Mysore bus fleet, and will allow for more effective operational planning in the future. This would translate into a reduction o f overall vehicle activity (A in the A B C identity) per public transport passenger trip delivered. 28. It i s assumed that the sum total o f these effects can be proxied by a reduction o f about five percent o f vehicle kilometers. Assuming about ten radial lines, o f a distance o f about 5.5 kilometers each, the core Mysore bus system would have about 55 kilometers o f service. Assuming peak hour headways o f five minutes, and off-peak hour headways o f ten minutes, with a five percent gross-up factor from revenue to total vehicle kilometers, this would imply total daily vehicle kilometers o f travel o f about 1,042. If we accept the proxy representation o f all the C02 benefits posited above at about five percent o f VKT, ITS would reduce total system VKT by the equivalent o f about 52 kilometers per day. Assuming a bus C02 emissions factor o f about 1,200 grams o f COz per kilometer (standard, 12 meter bus, Euro I1 or Euro 111), this i s equivalent to about 625 kilograms o f C02 per day, or about 178 tons per year (using a daily to annual factor o f 285). Using ten year as the l i f e o f these ITS equipments, the total amount o f C02 reduction from the project will be 1,780 tons. 29. In Mysore, a pilot project component on the use o f a diesel-ethanol fuel blend, combined with vehicles fitted with flame-retardant Continuously Regenerating Particulate Traps (CRTs) has also been proposed. The objective o f the pilot program i s to help test. whether there are cost-effective technological alternatives for providing bus services in India that meet local air quality goals, while not transitioning to the use o f CNG, which can entail a penalty with respect to greenhouse gas emissions. W h i l e strictly speaking a pilot test on alternative technology (not identified as a priority under GEF4), this sub-component does indirectly meet the objectives o f the strategic focus for the 4* replenishment, in that it will help identify cost-effective technologies that can be used b y public transport operators to help their services compete head-to-head against private and intermediate transport, thereby influencing long-term market trends. 30. Jalandhar. Because Jalandhar i s a non-JnNURM city, the city has requested for both the GEF grant and a Bank loanlg under the SUTP to finance the development o f non-motorized infrastructure and in generating awareness o f the environmental sustainability dimensions o f urban transport projects, where there would otherwise be none. Specifically, the SUTP i s incentivizing the development o f NMT activity by providing funding to develop infrastructure, create a comprehensive and coherent NMT plan, and an emphasis on sustainability outcomes. The presence o f the SUTP will also generate awareness o f other issues through the funding o f a sustainable transport study. The program as a whole should help strengthen the overall attractiveness o f the city center as a destination. It is expected to slow down the motorization speed and also l 9 Although the Bank loan i s still not available for Jalandhar project because the State Government o f Punjab (GoP) has n o t been able to obtain the debt sustainability clearance from Go1 at the SUTP negotiations, the GoP has committed to use its o w n funds to finance this project before the Bank loan becomes available. 144 maintain the current modal split between motorized transport and NMT (approximately 50:50), this would generate considerable amount o f C02 emissions reductions. However, a traffic survey i s s t i l l underway and the C02 figures would be available by early 2010. 31. Naya Raipur. The proposed Bank loan to SUTP would provide incremental finance to assist the Naya Raipur development in two key ways. First, it would focus resources and, more importantly, technical expertise, planning and implementing o f public transport services between Raipur and Naya Raipur. Since the majority o f day workers in Naya Raipur will come from Raipur - at least for the early years o f the project - coordinating how these workers'will make this daily roundtrip before commuting and vehicle ownership patterns are locked in, can significantly reduce future rates o f C02 emissions from vehicles providing this mobility. Second, BRT and land-use planning studies can help integrate BRT services - and possibly may even influence some o f the remaining land-use planning and designs - to enable future populations o f the as-yet undeveloped town be less reliant on cars, two-wheelers, and IPT, and instead to be more multi-modal, relying on a combination o f walking, cycling, and (bus-based) public transport. 32. Preliminary direct C02 assessment reduction for Naya Raipur has been based on the provision o f coordinated bus transport services between Raipur and Naya Raipur. The following assumptions were used: Distance between Raipur and Naya Raipur: 20 km Assumed mode share o f bus: 20 percent maintained consistently Assumed mode share draw o f bus riders o Car / shared taxi: 40 percent o Two wheeler: 40 percent o three-wheeler: 20 percent Assumed passenger load factors o Cadshared taxi: 3.5 o Two-wheeler: 1 ' o three-wheeler: 3 o Bus: 100 0 Assumed emissions factors o Car/ shared taxi: 345 g/km o Two-wheeler: 120 g/km o three-wheeler: 200 g/km o Bus: 1300 g/km 0 Expected daytime population in Naya Raipur i s given as follows: o 2010: 5000 government employee + 1000 local residents by bus per day per direction o 201 1:10000 government employee + 3000 local residents by bus per day per direction 145 o after 2012: 25000 government employee + 5000 local residents b y bus per day per direction Based on the above assumptions, as co-benefits o f the project, the annual C02 emissions reductions associated with the bus operation between Raipur and Naya Raipur i s calculated as 1.2 kilotonnes in 2010, 2.6 kilotonnes in 201 1, and 6.0 kilotonnes per year after 2012. Assuming the average l i f e o f BRT buses i s ten years, the total C02 reductions as co-benefits from the project would be 51.8 kilotonnes. Indirect Effects Analysis 33. An indirect effects analysis examines what the likely effect on overall transport C02 emissions for a city would be if a comprehensive package o f measures were to be adopted as a result o f the capacity developed by the GEF project. To properly carry out such an analysis requires extensive study and quantitative evaluation o f a wide range o f factors, including: a. Likely growth in base-case (do-minimal) travel for each city over a given period o f time b. Likely changes in share o f travel by different modes over the same period c. Likely changes in vehicle technology over the same period (absent a concerted effort to introduce new technology and/or modernize the fleet) d. Modeling the effect o f gradual changes in urban growth, transport services and available networks would have on those base-case scenarios e. Combining all o f these factors to determine levels o f C02 emissions for a variety o f combinations 34. Such an exercise would be a major undertaking, and might very well consume the entire proposed GEF budget allocation for each city. As a result, a proxy analysis has been adapted, instead. 35. As part o f the East Asia and Pacific region's flagship energy report, a detailed assessment o f transport energy for eight cities in China, Indonesia, Philippines, Thailand, and Vietnam has recently been carried out.2o This assessment has engaged i s quite detailed modeling o f both future vkt (vehicle kilometers traveled) b y mode, and likely technological characteristics o f the on-road vehicle fleet, giving orders o f magnitude o f the kinds o f C02 reductions that can be expected under different scenarios. The scenarios modeled are presented in Table 1. Table 1: Scenario Framework o f East Asian Cities' Evaluation In this scenario, no significant further actions are taken to promote public transport other than capital investment programs currently under implementation. I n particular, the service quality o f 20 The team i s grateful to John Rogers with ESMAP for sharing his methodology and results for this analysis 146 A l l the major expenditure projects in the master plan are completed, but no significant efforts are made to (i) integrate bus services with planned urban rail services; or (ii) significantly enhance the quality o f bus services. Scenario 2 assumes that all major capital investment projects have already been completed. Scenario 3: Scenario 2 plus complimentary activities to create a high-quality public transport system Scenario 2 i s complemented by a series o f activities to integrate public transport with a focus on coordination and minimizing the time and cost penalty from transferring between modes (coordinated schedule and route planning, multi-modal transfer facilities, and coordinated pricing). Additionally, bus services are significantly enhanced; with on-street priority, enhanced frequency and coverage, and favorable pricing policies. Travel time for private cars may increase as a result o f slower free-flow speed in non-bus lanes (as a result o f reduced road space for non-bus traffic). Scenario 4: Scenario 3 plus implementing additional measures to discourage private car use Private car operating costs are raised through higher parking costs and higher fuel and vehicle taxes. Congestion pricing and other road-user charges and higher tolls may be levied. Travel time for private car may be further increased through longer time to park cars and a longer distance between the destination and the place o f parking. Scenario 5: Scenario 4 W i t h o u t M a j o r Capital Projects L o w cost or zero-cost (to the government) interventions in Scenario 4 are implemented but high capital expenditure projects (e.g. rail construction) are not. Emphasis i s placed on giving priority to busses and coordination between modes. 36. These scenarios were o n the available and most recently calibrated 4-step transport demand models for each city. However, the exercise did not have resources to harmonize the models with each other, recalibrate the models to the most up-to-date conditions in the city, or introduce important sensitivities to congested conditions that represent current best-practice in travel demand modeling. 37. Results for these scenarios averaged for all cities in the study are presented in Figure 1 below. F i g u r e 1: T o t a l C02 emissions relative to the base y e a r I Total C 0 2 emissions relative to Baseyear ~ 250 I 2oo ~ IS0 i loo I 50 j o 147 38. 2007 C02 emissions are normalized to 100. Under the do minimum scenario, average annual C02 emissions in these cities will increase by 130 percent (index 230)21. The above exercise suggests that implementation o f a well crafted transport master plan, development o f a high-quality public transport system, introduction o f additional measures to discourage private vehicle use, and putting in place measures to ensure feasible technological changes in vehicles used all might reduce C02 emissions in a "typical" large Asian city by 35 to 40 percent over fifteen to twenty years. 39. Results for Hanoi and Ho Chi Minh City are presented in more detail below. These cities, particularly Hanoi, have a number o f characteristics similar to those o f Indian cities included under the GEF: high levels o f two-wheel ownership (200 per 1,000 population in the case o f Hanoi, 465 per 1,000 in the case o f H o Chi Minh City, and a range o f 250 to 450 per 1,000 population in the SUTP GEF cities), a modernizing two- wheeler fleet, and little or no constraints on two-wheeler growth for the foreseeable future. 40. Results for Hanoi and Ho Chi Minh City are shown in Figures 2 and 3 below. Figure 2: C 0 2emissions from transport in Hanoi 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1007 sreH&ia f/?&h)Scei&L(o 2&'9T@b20) ~cd%rio #`?2&0\ Source: John Rogers' calculatims 21 Averages reported here are unweighted. 148 Figure 3: CO2 emissions from transport in H o Chi Minh City ~ ,,.. ~ ~ .,................... ~ 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1007 SceMrio fiL~So\ scen%lo 2(t!3TfrLB2~) scd\$rio di?'& oI Source: John Rogers' calculaticns 41. These results, while more modest than those obtained for the set o f all cities, suggests that in Asian cities with transport profiles somewhat similar to those included in the SUTP, if a full package o f measures i s adopted, reductions o f C02 emissions o f f o f a do-minimum baseline o f an order o f magnitude o f 25 to 35 percent are possible. This translates to between 600 and 1,000 kilotons reduced in a single horizon year for a city o f 3.4 million people (Hanoi). As six Indian cities are participating in the SUTP demonstration investment component and are going to implement some o f the full package o f measures mentioned above, the annual C02 emissions reduction should be on the lower side, ranging from 100 kilotons in smaller cities (such as Indore and Mysore) to 600 kilotons in bigger cities (such as Pune). Taking into account the size o f population o f each city, the total annual reduction in six cities would be 1,800 kilotons, and the total GHG reductions in ten years would be estimated at about 18,000,000 tons. I K Resultsframework 42. The results framework, outcome indicators, and monitoring plan, are presented in the Annex 3. K Co-financing 43. For most o f the city demonstration projects, achievement the Global Environmental Objective via Strategic Program 5 will be co-financed through funding from the JNNURM, and i t s related and required proportional contributions from the state and local governments. Because NURM requires consistency with the NUTP, and many o f the provisions o f the N U T P are inherently conducive to achieving reductions in transport CO;?emissions compared to current trajectories, and because a key contribution o f the prospect o f a GEF project for the project cities has been to channel and focus the kinds o f projects for which the cities request funding from the NURM in the first place, 149 the NURM funding and related state and local contributions associated with the SUTP are entirely considered to be co-financing. In addition to the NURM and related finance, the World Bank will provide financing for the project in the amount o f US$188 million, allocated to four cities (including one which i s not NURM-eligible and another which has used out all NURM funds allocated for other projects). Finally, some additional funding i s being provided by the Ministry o f Urban Development as part o f i t s grant program for studies. 44. GEF funds will pay for about six percent o f the SUTP project; the remainder will be leveraged from these co-financing sources. The overall allocation o f the co-finance compared with GEF funds i s as follows: States and Project Implementing Agencies 19% World Bank 54% 45. Details o f the co-financing are presented in the Annex 5 o f this PAD. 150 Maps IBRD 35771,36766,36768,36770, and 36772 INDIA: Sustainable Urban Transport Project [to be attached separately] 151 DHULE AMRAVATI Nagpur Bhandara Jalgaon NAGPUR BHANDARA Dhule Amravati WARDHA JALGAON Akola Wardha BULDHANA Buldhana AKOLA Yavatmal NASIK CHANDRAPUR Garhchiroli Nasik AURANGABAD JALNA YAVATMAL Chandrapur Aurangabad Jalna THANE GARHCHIROLI PARBHANI Thane AHMEDNAGAR Parbhani NANDED Nanded Ahmednagar BEED Beed MUMBAI PUNE Alibag RAIGAD Pune Pimpri Chinchwad Latur LATUR Osmanabad SATARA OSMANABAD SOLAPUR INDIA Satara Solapur STATE OF MAHARASHTRA RATNAGIRI SUSTAINABLE URBAN TRANSPORT A r a b i a n PROJECT Ratnagiri SANGLI PROJECT CITIES Sangli MAIN CITY Kolhapur DISTRICT CAPITALS KOLHAPUR STATE CAPITAL DISTRICT BOUNDARIES SINDHUDURG S e a STATE BOUNDARIES FEBRUARY 2009 IBRD 36771 Kudal This map was produced by the Map Design Unit of The World Bank. 0 50 100 150 KILOMETERS The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any 0 50 100 MILES endorsement or acceptance of such boundaries. IBRD 36766 INDIA STATE OF CHHATTISGARH SUSTAINABLE URBAN TRANSPORT PROJECT PROJECT CITY MAIN CITY DISTRICT CAPITALS STATE CAPITAL KORIYA SURGUJA DISTRICT BOUNDARIES STATE BOUNDARIES Baikunthypur - Ambikapur JASHPUR Jashpur KORBA BILASPUR Korba - RAIGARH Bilaspur Janjgir - Kawardha Raigarh KAWARDHA JANJGIR RAIPUR DURG RAIPUR Durg MAHASUMUND - - Raj-Nandgaon - Mahasamund RAJ- Naya Raipur NANDGAON Dhamtari DHAMTARI - Kanker KANKER BASTAR 0 25 50 75 100 Kilometers Jagdalpur Dhantewada 0 25 50 75 Miles DHANTEWADA This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information Bay of Bengal shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. FEBRUARY 2009 IBRD 36768 INDIA This map was produced by the Map Design Unit of The STATE OF KARNATAKA World Bank. The boundaries, colors, denominations and SUSTAINABLE URBAN TRANSPORT any other information shown on this map do not imply, on the part of The World Bank PROJECT Bidar Group, any judgment on the legal status of any territory, or any endorsement or PROJECT CITY BIDAR acceptance of such boundaries. DISTRICT CAPITALS STATE CAPITAL DISTRICT BOUNDARIES Gulbarga STATE BOUNDARIES GULBARGA Bijapur BIJAPUR Raichur BAGALKOTE BELAGAVI Bagalkot RAICHUR Belgaum KOPPAL Dharwad Gadag Koppal DHARWAD Bellary GADAG BELLARY UTTARA KANNADA Karwar Haveri HAVERI DAVANAGERE Davangere Chitradurga CHITRADURGA SHIMOGA Shimoga TUMKUR KOLAR A r a UDUPI CHIKKAMAGALURU Chikkamangalore Tumkur Udupi L Kolar RE RURA HASSAN BANGALORE b i Hassan DAKSHINA BANGALORE GALO Mangalore KANNADA URBAN a n BAN MANDYA Mandya Mysore Madikeri KODAGU S MYSORE CHAMARAJANAGAR e Chamarajanagar a KILOMETERS 0 50 100 0 25 50 MILES FEBRUARY 2009 INDIA STATE OF MADHYA PRADESH SUSTAINABLE URBAN TRANSPORT PROJECT A REN BHIND PROJECT CITY MO Bhind Morena DISTRICT CAPITALS STATE CAPITAL Gwalior DISTRICT BOUNDARIES SHYOPUR GWALIOR DATIA Shyopur Datia STATE BOUNDARIES INTERNATIONAL BOUNDARY Shivpuri SHIVPURI TIIK AM M GA GA Chhatarpur RH REWA H Tikamgarh SATNA R PU Guna GUNA Rewa TAR Panna Satna Nimach R HA SAU CH NIMACH Sidhi PANNA ND SIDHI MA Mandsaur SAGAR DAMOH KATNI Rajgarh VIDISHA Katni BHOPAL SHAJAPUR RAJGARH Vidisha Sagar Damoh UMARIA LAM PAL R LPU RAT UJJAIN Umaria Shahdol Shajapur BHOPAL Raisen A Ratlam Ujjain JAB Jabalpur SHAHDOL Sehore RAISEN Dindori NARSINGHPUR MAN INDORE Dewas SEHORE Narsimhapur A Jhabua DINDORI DLA Indore Hoshangabad L DEWAS JHABUA HOSHANGABAD Mandla Dhar WEST Harda CHHINDWARA SEONI DHAR NIMAR HARDA Chhindwara Seoni Betul BALAGHAT Barwani (KHARGON) Balaghat BAR Khargon Khandwa WAN EAST BETUL I NIMAR (KHANDWA) Arabian Sea This map was produced by the Map Design Unit of The World Bank. FEBRUARY 2009 IBRD 36770 The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. IBRD 36772 INDIA STATE OF PUNJAB SUSTAINABLE URBAN TRANSPORT PROJECT PROJECT CITY DISTRICT CAPITALS STATE CAPITAL DISTRICT BOUNDARIES STATE BOUNDARIES INTERNATIONAL BOUNDARIES This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the PA KIS T A N legal status of any territory, or any endorsement or acceptance of such boundaries. Gurdaspur GURDASPUR Amritsar HOSHIARPUR Hoshiarpur AMRITSAR Jalandhar Kapurthala LA HA KAPURTHALA RT PU KA Nawashahr JALANDHAR NAWASHAHR Rupnagar Ferozepur Ludhiana Moga RUPNAGAR LUDHIANA R PU OZ CHANDIGARH Faridkot MOGA FATEHGARH FER Fatehgarh FARIDKOT Mukatsar PATIALA SANGRUR Patiala MUKTSAR Bathinda Sangrur BATHINDA Mansa MANSA 0 10 20 30 40 50 KILOMETERS FEBRUARY 2009