Kunigal ES.pdf - kuidfc

Kunigal CDP FR (Jan 10)EXECUTIVE SUMMARY1. The Kunigal City Development Plan (CDP) leads to sustainable infrastructuredevelopment with vision and goals. Citizens, organized groups of stakeholders, and localand state officials were consulted during the preparation of the City Development Plan andInfrastructure development and Implementation plan for Kunigal. The vision for KunigalCDP planned for 2033. Kunigal CDP is based JNnurm/UIDSSMT guidelines andanchored on JNnurm goal of creating economically productive, efficient, equitable andresponsive cities.A. Background2. Karnataka is one of the more urbanized states in India, having 33.8 percent of itspopulation living in urban areas, in contrast with 27.8 percent for the country as a whole.Karnataka’s share to India’s urban population is 6.28 percent. ID&IP Project is thusinitiated by Karnataka Urban Infrastructure Development Finance Corporation (KUIDFC)for urban infrastructure development in the remaining 146 ULBs which are on the verge ofurbanization but have very low level of infrastructure services to accommodate the futuregrowth and development. The 146 ULBs are spread over entire Karnataka and are dividedinto a total of eight packages for preparation of feasibility study. KUIDFC has awardedwork of Package IV and VIII to M/S Wilbur Smith Associates Private Limited (WSAPL)comprising a total of 37 ULBs in the districts of Tumkur, Davangere, Chitradurga, Haveri,Gulbarga, Bidar and Bijapur.B. Environmental Infrastructure3. Considering the town’s growth and the need for efficient basic service delivery, the CDPidentifies long-term development issues in environmental infrastructure focusing on watersupply, sewerage and sanitation, solid waste management and storm water drainage. Withan ultimate goal of providing safe drinking water supply and safe sanitation, the CDP aimsat gradually expanding citizens’ access to services in the aforementioned three phaseswithin the framework of associated institutional and financial challenges.1. Water Supply4. Kunigal TMC is responsible agency to provide safe drinking water to the people of thetown. Key features of Kunigal‘s water supply system comprise: (i) gross water supply of41 lpcd; (ii) WSCs as percentage of Households 43 %; (iii) Supply duration 2 hours pertwo day; (iv) Roads covered by distribution network 51 %; (v) Total storage capacitytowards present supply of water 113 %.5. The City Development Plan proposes to develop Kunigal’s water supply system based ona

Kunigal CDP FR (Jan 10)the following sub-project identification criteria: (i) Augmentation of water supply; (ii)Rehabilitation (iii) Water service connections (WSC); (iii) Metering of the system. Thetotal cost of additional improvements in water supply system in the CDP period isestimated Rs. 775.61 lakhs for Kunigal TMC.2. Sewerage and Sanitation6. Kunigal does not have centralized sewerage system for disposal of sullage and night soil.The population depends largely upon individual septic tanks for their domestic wastewaterdisposal. The disposal of sullage and night soil is though household toilets; public toilets;and open defecation. The discharges from the septic tank are piped to the roadside opendrains.7. The CDP proposes to construct new underground drainage (UGD) system with treatmentfacilities for Kunigal town. Initially, sewerage system will be provided in the denselypopulated areas of the town where the volume of sewage generation is such that itgenerates sufficient self-cleansing velocity. The initial phase will cover an estimated 60percent of the households/ population. During Phase II, another 10 percent population willbe added. It is proposed to achieve 90 households coverage by the end of CDP period(2033). The ultimate system will have 66 km of sewer network and 5.0 MLD capacitytreatment plant. Concurrently, emphasis is also towards stand alone low cost sanitationfacilities for the economically weaker communities without toilet access. This will enablein enabling access to underground drainage system. The total investment for sewerage andsanitation sector to meet the ultimate demand of 2033 is estimated at Rs. 2,323.38 lakhs.3. Storm Water Drainage8. There is no major watercourse in the town. Key issues associated with storm waterdrainage in the town comprise: (i) only 129 percent of the road length is covered withdrains; (ii) Adverse health impacts on population living in low-lying areas due tounplanned disposal of storm water; and (iii) Disposal of sullage/solid waste into roadside/natural drain result in blockage of drains and polluting Tanks.9. The City Development Plan proposes to develop Kunigal’s storm water drainage based onthe below mentioned sub-project identification criteria: (i) Rehabilitation of ExistingDrains; and (ii) Laying of new roadside drains. The total investment in storm waterdrainage sector to meet the ultimate demand of 2033 is estimated as Rs. 1,822.00 lakhs4. Solid Waste Management10. Key issues associated with Kunigal’s solid waste management comprise: (i) 88 percent ofwaste collected from various waste generation sources; (ii) No practices of door-to-doorsegregated waste collection and lack of public awareness on SWM; (iii) Average distancebetween dustbins around 330 m; and (iv) No treatment of waste at the disposal site.b

Kunigal CDP FR (Jan 10)11. The City Development Plan proposes to develop Kunigal’s SWM system based on thebelow mentioned sub-project identification criteria: (i) Developing a 100 percent door-todoorcollection system; (ii) Street sweeping; (iii) Waste collection from bulk generators;(iv) Temporary Waste Storage; (v) Purchasing of suitable vehicles and equipment (v)Waste Transportation from Containers to Disposal Site; and (vi) Waste Processing andDisposal. The total investment for solid waste management sector to meet the ultimatedemand of 2033 is estimated as Rs. 857.72 lakhs5. Traffic and Transportation12. Key transportation issues in Kunigal TMC – (i) Poor condition of surface exhibits distresswith cracks, potholes, raveling and soil on the surface; absence of roadside drains.Condition of state highway is so poor; (ii) Soil strata of the town is characterized partly byblack cotton soil and murrum the town also has extreme climatic conditions; (iii) Notraffic management; poor traffic regulation on roads and at junctions; (iv) There are manyroads with considerable pedestrian movement, but there are no footpaths. Pedestrianmovement on carriageway is increasing the accident risks and is also reducing theeffective road width affecting the traffic flow; (v) Encroachment of sidewalks by streetsidevendors; (vi) There is no parking regulation; vehicles are mainly parked along theroads and junctions disturbing the traffic movement; and (vii) No designated placeavailable for truck parking. Trucks and delivery vans are parked on the roads affectingtraffic movement. Sub-project identification is governed by the following factors: (i)Improvement of Surface Condition of Existing Roads; (ii) Construction of New Roads;(iii) Junction Improvement; (iv) New terminals; (v) Pedestrian Facilities; (vi) ParkingFacilities; (vii) Traffic Management; (Viii) Area Improvement; and (ix) Street Lighting.The total investment required over the CDP period is Rs. 2,611.60 lakhs.6. Social Infrastructure13. For improving “quality of life”, the CDP lays emphasis on developing SocialInfrastructure comprising health and education, leisure and sports, and art, culture andheritage. In view of Kunigal’s key issues are noticed as (i) Lack of or minimalcoordination between Kunigal TMC and the State Government in provision andimprovement of health and education facilities; (ii) Fire station located in Kunigal TMCcaters to the entire Kunigal Taluk. Existing staff, vehicles and equipments are inadequateto take of fire and emergency risks in urban as well as rural areas; (iii) Lack of efforts toimprove overall urban environment through planting of trees, provision of street furniture,developing of parks and playgrounds, lake development and development of leisure placesetc.; (iv) Lack of facilities such as crematorium, swimming pool, sports complex etc.; and(v) Lack of decentralized market places.14. Sub-project identification is governed by the following factors: (i) Provision of andEmergency Services; (ii) Lake Restoration; (iii) Parks, Playgrounds and Sports Facilities;and (iv) Crematorium Facilities. The total investment required for improvement of socialinfrastructure is Rs. 222.85 lakhs.c

Kunigal CDP FR (Jan 10)7. Community Upgrading15. Issues related to basic services for the poor are dealt with in depth in the section oncommunity upgrading. Population in declared slums is 15,093 constituting about 49.74percent of the total population (2008) in Kunigal TMC. The CDP goes beyond the typicalplan of providing infrastructure services/community services and deals substantially onissues related to livelihood promotion. While the CDP does address the larger issue ofproviding the poor with access to basic services and improving the quality of life, it alsodeals on the institutional mechanism to develop a long-term program addressing livelihoodpromotion through actions like employment generation training centres, and facilitatingmicro-enterprises, among others.16. The City Development Plan proposes to develop Kunigal as “Slum Free” based on thebelow mentioned sub-project identification criteria: (i) Provision of Pucca Houses; (ii)Slum Urgradation/Networking Projects; (iii) Construction of CommunityToilets/Convenience; (iv) Construction of Night Shelter; (v) Construction of TrainingCentres/Community Halls; and (vi) Strengthening of SJSRY Programme. The totalinvestment required for improvement of slums and urban poor is Rs. 1,367 lakhs whichwill be utilized in initial 10 years (Phase I and Phase II) to achieve the CDP goal ofKunigal to be zero slum town by 2018.8. Urban Governance17. To ensure that the CDP is effective in meeting its goals and objectives, urban governance,and financial management issues were identified as cross-cutting issues. Service deliveryis directly linked with the institutional capacity and management. Hence key issues ininstitutional strengthening for implementation of ID&IP Project can be: (i) Vacant posts oftechnical staff affecting service delivery and O&M; (ii) Inadequate technical qualificationsor up-to-date knowledge to oversee service delivery; (iii) Inadequate staff strength toundertake high level investment and multi-sectoral projects; (iv) Inadequate managementand accounting skills; and (v) Lack of external support and training to upgrade skills. Thestrategies are adopted to overcome urban institutional issues as: (i) Efficient utilization ofhuman resources to provide sustainable services in equitable manner to all citizens; (ii)Capacity building of technical and administrative staff; (iii) Community participation andpublic involvement; (iv) Private sector participation in service delivery ; and(v) Transparency in administration, planning and implementation of the projects.C. Financial Sustainability1. Municipal Finances18. With an annual Revenue Income of Rs. 66.64 lakhs in the year 2001-02, financialmanagement and fiscal status of Kunigal TMC indicates: (i) A common accounting andfinancial reporting code, updated annually, with interim up-dations when required,supported with a user manual and organized training of municipal accounts staff willd

Kunigal CDP FR (Jan 10)substantially streamline financial accounting and reporting; (ii) coverage of propertiesunder property tax, (iii) poor collection of water charges; (iv) unclear status on extent ofoutstanding taxes and charges collectable; (v) extent of gap between the cost of serviceprovided and user charges levied; (vi) most of the revenue expenditure is accounted for byestablishment item heads, (vii) an efficient system of costing to enable the actual cost ofservices provided in a scientific manner thus enabling logical mechanism for tariffstructuring (viii) the absence of information with regard to actual assets and liabilities ofKunigal TMC at a particular point of time render it difficult to ascertain the actual fiscalposition; and (ix) inability to capitalize on property tax revenues indicates overdependency on revenue grants and a level of complacency regarding other revenue incomesources.2. CDP Sustainability19. Financial sustainability addresses taxation and tariff reforms laid out in the assumption ofFOP. Kunigal TMC Revenue Account and sub-project cash flows take cognizance ofpolicy directives undertaken by Kunigal TMC in addressing infrastructure development &investment plan and sustenance needs – the focus is on property taxation, water,sewer/drainage and conservancy charges. The CDP recognizes the fact that property taxespay for capital investments and user charges pay for system operation and maintenance –given the aforesaid approach, the financial sustainability analysis focuses on reviewing netcash flows arising out of taxation and tariff reforms.20. The Financial and Operating Plan (FOP) lays out the planned fiscal status of Kunigal TMCover the CDP period, taking cognizance of Multi-year Investment Plans for each subproject,sources and disposition of sub-project funds, and performance of Kunigal TMCRevenue Account. The FOP will be reviewed annually to determine the extent to whichtargets are met and undertake corrections / revisions accordingly. The FOP also helps inassessing the requirement of funds over the short-term and identifying sources withpotential for revenue enhancement. The main objective of the FOP is to enable KunigalTMC determine their own priority objectives in terms of goals, resources, service andmanagement aspects in the medium-term.(i)Business as usual. In this scenario, the finances of Kunigal TMC are forecast in a“do nothing” or “without CDP” scenario. The revenue surplus thus generatedindicates Kunigal capacity to service capital expenditure.(ii)Improved Scenario. The improvement scenario is based on investments identifiedunder the CDP and requirement for upgrading the town’s infrastructure is estimatedand phased based on construction activity. Implications of this investment in termsof external borrowings required, resultant debt service commitment, and additionaloperation and maintenance expenditure are worked out to ascertain sub-project cashflows. Revenue surpluses from the Business as usual Scenario are applied to subprojectcash flows emerging from implementable investments – the municipal fundnet surpluses indicates Kunigal’s ability to sustain full investments. FY 2023 isassumed as the reference year to determine the net surpluses and whether KunigalTMC maintain a debt/revenue surplus ratio as an indication of the Kunigal’s abilitye

Kunigal CDP FR (Jan 10)to sustain investments.(iii)Most Optimistic Scenario. This scenario is same as improved scenario and Furtherimprovement in efficiency and tariff rationalization so that along with O&M costrecovery, some percentage of capital cost is also recovered.21. Sustainable investment for the period 2008-23 is Rs.19,58 Crores in the improvedscenario. CDP sustainability is based on three critical factors: (i) Kunigal TMC shouldundertake assumptions proposed in the FOP; and (ii) Kunigal TMC should undertakegovernance reforms by way of Urban Governance, Capacity Building and InstitutionalStrengthening.3. Cost Estimates and Financing Plan22. The total cost of the City Development Plan is estimated at Rs.99.80 Crores includingduties, taxes, contingencies (physical and price) and financing charges (front-end fees andcommitment charges). Base cost of sub-project components were determined based onprevailing Schedule of Rates and compared with costs of similar nature projects – wheredesigns / detailed reports were available, costs were counterchecked and incorporated intothe CDP. Physical and price contingency is applicable on works (infrastructureinvestment), price contingency is applicable on goods (institutional development /computerization), and service taxes are applicable on services (institutional development /training and accounting, and project assistance/consulting services).D. Way Forward: Key Initiatives23. Based on the consultative process held during CDP development the following keyinitiatives and focus areas will form Kunigal’s Vision 2023: (i) planned development ofGrowth Management and improving the safe transport facilities within the town; (ii)focusing on safe drinking water supply; ensuring safe sanitary disposal and developingUnderground Drainage System, developing a Storm Water Master Plan, introducing doorto-doormunicipal waste collection, and safe sanitary landfill; (iii) ensuring communityparticipation in infrastructure development and service delivery and enhancing livelihoodoptions for urban poor; (iv) developing the art, culture and heritage of the city, andfocusing on improving the fire and emergency services facility; (v) Kunigal TMC staffcapacity building in project implementation; (vi) tapping potentials of own tax sources forinstitutional options in service delivery (property tax reforms) properties coverage andimproved tax collection, user charges to address in the main report, specifically focusingon recovering O&M expenditure, and annual increase/indexation in user charges (throughCDP period) and five-year revision of property tax.f