North Eastern RegionUrban Development Program

13th National Steering Committee Meeting28th April 2014

Summary of Project Progress•All contracts awarded valued at Rs156 cr•Cumulative expenditure of Rs 98.9 cr (63 % )• Mizoram has finished its projects, Gangtok near completion,•Tranche-I to be completed for 2014-15

Tranche-I205 Cr

•26 out of 32 total contracts/LoAs valued at Rs 341 cr•Cumulative expenditure Rs 65.47 cr or 19% of the Tranche-II•Target for 2014-15,: 60% of Tranche-II

Tranche-II463 Cr

•Tentative dates: Loan negotiations by September 2014, Loanagreement by March 2015•State wise list of projects decided. However, so far 5 DPRs

out of 13 projects received. ( Meghalaya , Mizoram, Sikkim)

Tranche-III1038 Cr

Key issues identified in last NSC heldon 20.11.2014

Improve Fund Flows

Organize CapacityBuilding Workshop

Expedite Reforms

•States are expediting transfer of funds toSIPMIUs.•Full Budget allotted ( 50cr) FY 13-14 was utilized•Additional funds to States for Loan Component& Imprest could not be released .

• Recommendations given by IDCs, butimplementation lacking. States have to fulfillcovenants.

• Extension of IDCs only upon commitmentsby States

•One day workshop on Urbanization was heldin February 2014 at Guwahati with 118participants.•Two days Workshop on Finance was alsoorganized at Guwahati•Three workshops are planned during thisyear at Shillong/Guwahati

State wise expenditure vs targets2013-14

Agartala Aizawl Gangtok Kohima ShillongTarget 36.1 24.3 18.1 31.7 8.63Actual 24.4 22.1 15.5 19.3 4.16

05

10152025303540

RsCr

ores

Percent 68% 91% 86% 61% 48%

Project Progress Tranche-I

36%

100%

56%

35%

7%

85%

100%95%

55%

40%

Agartala Aizawl Gangtok Kohima Shilong

Progress during 2013-14April '13 March '14

Key issues in Tr-1• Kohima needs to speed up:

– Water Treatment Plant: Target commissioning by 15-3-14. Delayedagain (Target: Aug 14) . WS: Only 7 out of 18 tanks completed. Work 12m behind schedule.: (Target Aug 14)

– SWM: Site development and building work still in progress. Erection ofcompost plant and construction of landfill cell much behind schedule.(Target: Sept 14)

• Shillong SWM:– Landfill work to pick up speed after revised contract. (Target : Aug 14)

• Gangtok WS:– Household connections to be given before project is considered

commissioned.

Project Progress Tranche-IICity Total

PackagesPackages

to beawarded

%progress

Physical progress

Agartala 8 1 25% 5 GWTP & 6 OH tanks underconstruction

Aizawl 10 0 20% 5 packages completed, work on WSNetwork and sewerage network tostart.

Gangtok 9 4 10% Physical work started in only 1package

Kohima 2 1 05% Physical work started

Shillong 3 0 20% All primary and secondary collectionvehicles received. Supply ofhousehold bins to start

Total 32 6 19% Overall progress-Physical work inmost states in initial stages

Key issues in Tranche-II

Agartala needs to expedite physical works◦ Work awarded even 9-10 months before have just

started e.g. WS distribution network awarded in Dec.2012 completed only 20%

Gangtok progress is slow◦ Physical work has just started on WS distribution and

just started in SLFS package. Contracted 7 months ago.◦ 3 packages of SWM still to be contracted

Kohima progress needs speeding up:◦ WS project awarded 8 months ago, only 3.5%

completed.

Reforms• 74th CAA-Implement decentralizationInstitutional Reforms

• Reforms for efficient service delivery of Water Supply &SewerageService Delivery

• Issue of Government Order for NRW reduction program andvolumetric metering

Improving operationalefficiency

• Issue regulations for enforcing household to connect to sewerage system andprohibiting waste discharge & Solid Waste Management

Regulatorycompliance

• ULBs to migrate to Accrual AccountingImproving ULB’sFinancials

• Introduce self assessment & unit area based property tax system &85% Property Tax realization

Property TaxImprovements

• Implement SW collection charges to cover 100% of SWM O&M costs & WaterTariff to collect 100% WS&S O&M costs

Rationalization ofuser charges

Reforms under JnNURMS.No.

ULB LevelReforms

S.No.

State Level Reforms S.No.

Optional Reforms

1 Implementation of 74thCAA 8 E-Governance set up 14 Introduction of Property Title Certification System in ULBs

2Integration of CityPlanning & DeliveryFunctions

9 Shift to Accrual based Double Entry Accounting 15 Revision of Building Bye laws – streamlining the Approval Process

3 Reform in Rent Control 10 Property Tax (85% coverage & 90 % CollectionEfficiency) 16 Revision of Building Bye laws – To make rain water harvesting

mandatory

4 Stamp DutyRationalization to 5% 11 100% Cost Recovery (Water Supply &SWM) 17 Earmarking 25% developed land in all housing projects for EWS/LIG

5 Repeal of ULCRA 12 Internal Earmarking of Funds for Services to Urban Poor 18 Simplification of Legal and Procedural framework for conversion ofagricultural land for non-agricultural purposes

6 Enactment of CommunityParticipation Law 13 Provision of Basic Services to Urban Poor 19 Introduction of computerized process of Registration of land and

Property

7 Enactment of PublicDisclosure Law 20 Byelaws on Reuse of Recycled Water

21 Administrative Reforms

22 Structural Reforms

23 Encouraging Public Private Participation

JnNURM Reforms Achievement

0

10

20

30

40

50

60

70

80

90

100

Tripura Mizoram Sikkim Nagaland Meghalaya

JnNURM Level Reforms %

ULB Level

State Level

Optional

Status of Reforms under NERUDP

Variation proposals from States

• Seven Cost variation proposals from 4 statesamounting to Rs 40 cr

• Variations due to modifications in scope of workin Tranche-I/Tranche-II proposals earlier approved& awardedRecommendation:– Only variations essential to complete ongoing projects

may be approved as no surplus funds in scheme– MoUD can absorb up to 10% cost variation under

contingencies. Balance by the States.

Variation proposals to be consideredS.No. Proposal Variance

(Rs Cr% of contractvalue

Amount tobe borne byMoUD (10%)(Rs cr)

Amount tobe borneby State(Rs lakhs)

1. Kohima WS –Feeder lines fromcommon storage tank 1.65 22.6% 0.73 0.92

2. Kohima SWM- Retaining Wallsand storm water drainage 4.25 10.86% 3.91 0.39

3. Shillong SWM- Additional worksfor Garage cum workshop 0.35 25% 0.13 0.22

4. Aizawl Sewerage- Revisedalignment of approach road 0.30 20.7% 0.15 0.16

Total 6.55 13.3% 4.92 1.63

Preparations for Tranche-III• Tranche-III scoped at Rs 1038 cr with 13 projects valued at Rs

778 cr

• Only 5 DPRs from Meghalaya , Mizoram, Sikkim. Need toexpedite.

• ADB’s approval for Tranche-III is dependent on progress ofTranche-II,

• Target: Loan negotiations by September 2014 & loanagreement by March 2015.

Aizawl Tr-I: Armed-veng Reservoir & Office

Before After

Thank You