77837 1 Engaging Non-state Providers in Rural Water Supply Services Documentation of experiences in India Engaging Non-state 2 Providers in Rural Water Supply Services Acknowledgements This report on Non-state Providers in Rural Water Supply Services has been prepared by the Water and Sanitation Program at the request of the Ministry of Drinking Water and Sanitation. The team working on the report consisted of Ms. Suneetha Dasappa Kacker (Water and Sanitation Specialist), Mr. Mariappa Kullappa (Water and Sanitation Specialist), Mr. Manish Dubey, Ms. Shikha Shukla and Mr. Vijay Gawade (Consultants) and Ms. Vandana Mehra (Regional Communications Specialist) from Water and Sanitation Program. The inputs provided by officers of the Ministry of Drinking Water and Sanitation are gratefully acknowledged. Water and Sanitation Program wishes to acknowledge the support of the Governments of Punjab, Maharashtra and Karnataka; government representatives of Morinda and Patiala districts (Punjab); Parbhani, Thane and Jalna districts (Maharashtra); and Belgaum District (Karnataka); and the people in the villages taken up for study, for the support extended in undertaking the case studies. Peer review was provided by Mr. Mouhamed Fadel Ndaw, Senior Water and Sanitation Specialist (rural & small towns), WSP–Africa Region; Chantal Richey, Water and Sanitation Specialist, WSP; and Ella Lazarte, Knowledge Coordinator, WSP. Jemima Sy, Senior Water and Sanitation Specialist, WSP, provided valuable guidance and coordination support at all stages. References used in the preparation of the report are included in the Bibliography. 3 Foreword Sustainability of small piped water supply systems in rural areas is critical in securing improved service delivery in the long term. As a result, the thrust of Government of India’s National Rural Drinking Water Programme (NRDWP) is on source and system sustainability. System sustainability rests upon adequate Operations and Maintenance (O&M), comprising both technical and financial aspects. In this respect, NRDWP’s approach of devolving O&M functions to GPs, through the formation of Gram Panchayat/Village Water and Sanitation Committee (GP/VWSCs) has had mixed results: while successful in some instances, in some cases the limited expertise within Gram Panchayats has led to system deterioration. It is thus felt that while responsibility and funds for service delivery may continue to vest with the Gram Panchayat, the actual functions associated with the maintenance and delivery of services may benefit from technical and professional inputs. Such options for undertaking O&M of water supply schemes, through outsourcing to non-State providers are being considered in some states by Panchayati Raj Institutions and Public Health Engineering Departments. This document, prepared in association with the Water and Sanitation Program (WSP), World Bank, seeks to capture cases illustrating some of these arrangements with non-State agencies. While such initiatives are as yet few, they point to the potential for improved system sustainability and service delivery that may be achieved, and may serve as role models for further replication. Three options are described, including entering into an agreement with a community-based organisation, trust or society; and contracting with local operators. Given the wide variation in the context of villages in the country, a single arrangement may not be practicable, and a menu of models for O&M—including through GP/VWSCs, where effective—will facilitate the adoption of appropriate arrangements to suit specific requirements. I wish to place on record our appreciation of the WSP for undertaking this study and bringing out this report. New Delhi 15th February 2013 Pankaj Jain Engaging Non-state 4 Providers in Rural Water Supply Services 5 Table of Contents Executive Summary 07 Background 11 Case Studies 21 Khambegaon, Maharashtra Chinchali, Karnataka Morinda, Punjab Key Learnings and Takeaways 47 Annexures 51 Bibliography 70 List of Tables Table 1: Rural India: the Water Ladder Table 2: Institutional Arrangements for Rural Water Supply Table 3: Options for Engaging Non-state Providers in Management of Small Piped Water Supply Schemes Table 4: Receipts and Expenditure for Khambegaon Water Supply Scheme Table 5: Functions of Water Supply Management across GPs Table 6: Key Characteristics of SHGs Involvement in Rural Water Supply in Villages Assessed Table 7: Roles and Responsibilities of the GP and the Society Table 8: Income and Expenditure of the Krishna Drinking Water Supply and Rural Development Society (2008-09, 2009-10, April-December 2010) Table 9: Comparison of Annual O&M Expenditure Prior and Post Outsourcing Table 10: Household Connections, Tariffs and Expenditure/Revenue Demand in Three Study Schemes Table 11: Investments made/proposed in Rural Drinking Water Sector by Central Government and State Governments under the FYPs (1951-2012) List of Figures Figure 1: Location of Thane, Jalna and Parbhani Districts Figure 2: Location of Chinchali Village Figure 3: Income and Expenditure: Krishna Drinking Water Supply and Rural Development Society Figure 4: Location of Morinda Block Engaging Non-state 6 Providers in Rural Water Supply Services Abbreviations ARWSP Accelerated Rural Water Supply Programme BP Block Panchayat CBO Community Based Organisation DDWS Department of Drinking Water Supply DWSS Department of Water Supply and Sanitation FYP Five Year Plan GoI Government of India GP Gram Panchayat (local government entity at village level) GPWSSC Gram Panchayat Water Supply and Sanitation Committee km kilometre lpcd litres per capita per day m metre MDWS Ministry of Drinking Water and Sanitation MoU Memorandum of Understanding NRDWP National Rural Drinking Water Programme NSSO National Sample Survey Office O&M operations and maintenance OHSR Overhead Storage Reservoir PHED Public Health Engineering Department PRI Panchayati Raj Institution PWSS Piped Water Supply Scheme RGNDWM Rajiv Gandhi National Drinking Water Mission RWS Rural Water Supply RWSS Rural Water Supply Scheme SHG self-help group sq km square kilometre VWSC Village Water and Sanitation Committee ZP Zila Panchayat 1 USD = INR 54 (February 2013) 7 Executive Summary Taking an integrated approach to the country’s over time (WSP Field Note, 2010). There is loss rural water supply issues, Government of India’s of interest, and committees often have trouble (GoI’s) National Rural Drinking Water Programme persuading households to continue to meet (NRDWP) focusses on the key aspects of source water charges. Moreover, limited resources are and system sustainability. System sustainability is available at higher levels to continue supporting inextricably linked to both technical and financial village-level entities. Piped water supply schemes, aspects of operations of Rural Water Supply in particular, may be complex and, as they age, Schemes (RWSSs). frequently require repairs beyond the technical capabilities of rural community groups. A key plank of NRDWP’s approach—as well as that of the Sector Reform Project that preceded it— With the NRDWP prioritising household-level is the devolution of operations and maintenance water security and movement up the water ladder (O&M) functions, particularly related to (that is, working towards adequate and safe water distribution at the village level, to Gram Panchayats supply through house connections), massive (GPs), or local government entities, through investment, aimed at responding to both system the formation of Village Water and Sanitation and source sustainability issues, is proposed Committees (VWSCs). However, the lack of for rural drinking water supply in the coming substantive community engagement in planning years. The sector’s human and financial needs, and implementation of schemes as well as capacity including those for O&M, are likely to increase constraints in GPs has limited the spread and significantly. This increase emerges amidst widely implementation of this approach. As reported observed concerns in relation to O&M of even the in a recent study for the Planning Commission existing infrastructure, as noted above. Unless (PC, 2010), only a fourth of GPs surveyed reported these are addressed, it is likely that the significant VWSCs and less than 1 percent of the respondents investments proposed in the sector in the coming were aware of the VWSCs’ existence. years would remain at risk. The management of small piped water supply It is in this context that a case emerges for schemes (typically aimed at single villages) by exploring alternate options for O&M that communities or associations has many advantages ensure appropriate and timely preventive and but some limitations as well. While the issues of corrective O&M through dedicated, qualified local capability may be addressed by training staff at reasonable cost. Such alternate options, programmes, it is observed that the quality of particularly through non-state providers, are community management frequently declines already being considered in some states by Engaging Non-state 8 Providers in Rural Water Supply Services Table: Indicative Appropriateness of Option to Context Option/Model Relevance to Context/Applicability SHG Small, isolated settlements (approximately 1,500–3,000 population); simple schemes Registered trust, society, etc., dedicated Small and large villages (5,000–15,000 population), with good to rural water supply services technical capacity within the community O&M contract Large villages or a cluster of small villages providing sufficient scale of operations (over 20,000 population) local government institutions and Public Health The adoption of any one option is influenced Engineering Departments (PHEDs). This study by the particular context of the settlement and documents three such options, focussing on small the water supply scheme, including the size piped water supply schemes and the distribution of settlement; geographic context; economic end of the water supply value chain. Initiatives in profile; available capacity and the community’s this segment are still limited to only a handful of inclination to undertake services; age, condition cases, and those documented here constitute initial and complexity of the RWSS; household attempts in this direction. In order of increasing willingness to meet water charges, etc. However, involvement of the non-state provider, these given the wide variation in the contexts of GPs in options are: the country, it is proposed that a menu of options may increase the possibility of a good fit between Empowering community-based entities such as n context and arrangement for O&M. Clearly, self-help groups (SHGs) through Memoranda one size cannot fit all. The table captures the of Understanding (MoUs) for the provision indicative appropriateness of each option of services; to various contexts (although this is by no n Instituting registered societies or trusts (formed means definitive). among the resident population) dedicated to Each of the above options is documented providing water supply services, and operating through a case study in the report, and learnings on a profit or not-for profit basis; and on engaging non-state providers for service n Engaging a service provider through a simple delivery are captured in the concluding section. O&M contract. Key among these are: 9 n Operational sustainability is facilitated in a context in which there is a clear guidance/ policy for meeting costs through a combination of user charges and state grants. Information on consumption and costs are critical in establishing such a context; n There is a need for capacity building of all stakeholders, including GPs, communities and providers, in order to build understanding and support for initiatives; n Even for the management of small systems, contractual relationships must be formalised through clear agreements that define the roles and responsibilities of all stakeholders; n Aligning incentives to objectives facilitates performance. Even in the simplest contracts, the achievement of clearly identified and stated objectives (such as increase in the number of house connections) is facilitated by providing clearly-stated incentives through the contract; n Sustainability of any arrangement is inextricably linked to community involvement in the long term, through mechanisms such as downward accountability or periodic information sharing; and n A supportive leadership and political will are required to address the resistance of vested interests that may attempt to stall initiatives. Engaging Non-state 10 Providers in Rural Water Supply Services 11 Background In India, the primary responsibility for rural the (then) newly created Department of Drinking drinking water supply rests with the state Water Supply (DDWS) piloted the Sector Reform governments. At the national level, the Ministry Project which involved communities in the of Drinking Water and Sanitation (MDWS),1 planning, implementation and management of Government of India (GoI), is the nodal ministry Rural Water Supply Schemes (RWSSs) and was responsible for overall policy, planning, funding scaled up as Swajaldhara in December 2002. More and coordination of rural drinking water and recently (2009), the ARWSP has been recast as sanitation programmes and provides policy, the National Rural Drinking Water Programme technical and financial support to the efforts of the (NRDWP) to respond to the challenges related to state governments. source and system sustainability, coverage, quality, financing of operations and maintenance (O&M) The focus of the central government’s support and equity, identified as critical issues in the to the states and institutional arrangements at 11th Five Year Plan (FYP) (2007-12). (For a more the GoI level to facilitate this have evolved over detailed account of the evolution of sector policies, time in response to emerging sector issues. Thus, refer to Annex 1.) while GoI’s first major intervention in the sector, the Accelerated Rural Water Supply Programme Household-level water security is a central theme (ARWSP), launched in 1972-73, focussed on of the NRDWP and the programme recognises supporting states in their efforts towards that such security is predicated on sustainability of accelerating coverage, GoI has engaged on a water availability in terms of potability, adequacy, wider range of issues over time. Issues around convenience, affordability and equity and the water quality, appropriate technology and human adoption of a decentralised implementation resource development received attention with the approach with substantive roles for Panchayati Raj launch of the National Drinking Water Mission Institutions (PRIs, or local government institutions) in 1986 (renamed the Rajiv Gandhi National and communities. In this context, the NRDWP Drinking Water Mission [RGNDWM] in 1991). In emphasises the need for rigorous bottom-up water 1999, amidst growing recognition of the merits of security planning with inputs and guidance from a community-oriented, demand-driven approach relevant departments and agencies;2 conjunctive in responding to emergent sustainability issues, use of ground and surface water sources, water 1 Separate Ministry status was conferred on the Department of Drinking Water and Sanitation (DDWS), Ministry of Rural Development (MoRD), GoI, in 2011. 2 The Drinking Water Security Plans are expected to draw appropriate input from departments such as Agriculture, Education, Environment & Forest, Health, Panchayati Raj, Water Resources and Women & Child Development. The Drinking Water Security National Pilot Programme to test the operationalisation of the water security planning approach before nation-wide scale-up is being provided strategic guidance at the national level through a Working Group with representation from the Central Ground Water Board, Indian Space Research Organisation, Central Arid Zone Research Institute, National Institute of Health & Family Welfare, Andhra Pradesh Farmer-managed Groundwater Systems Project, Tarun Bharat Sangh, Ministries of Agriculture, Environment, Power and Water Resources, Planning Commission, the World Bank, UNICEF and WaterAid. Engaging Non-state 12 Providers in Rural Water Supply Services conservation, rainwater harvesting, revival of non-state entities in the O&M of rural drinking traditional systems and recharge of water sources, water supply schemes), and the opportunity such to optimise use of all available resources; and involvement may offer in terms of achieving provides states the flexibility to incorporate the improved operational and financial efficiencies. principles of decentralised, demand-driven, This report presents the documentation and area-specific strategies that take into account all assessment of currently adopted options for the aspects of sustainability (source, system, finance involvement by non-state agencies in the O&M and management) of the rural drinking water of rural drinking water supply schemes in India. supply infrastructure. This is informed by a series of case studies in select Even while aspects of resource management locations in Maharashtra, Karnataka and Punjab and sustainability have legitimately been with a view to assess and analyse the current emphasised in the NRDWP, the programme situation, identify emerging issues and lessons, simultaneously recognises that the actual and inform further GoI decision-making in experience of water security at the household this regard. level will critically depend not only on water resource availability and sustainability but also on robust arrangements for O&M that make A. Sector Overview for sound technical and financial operations. i. Institutional Arrangements The NRDWP therefore suggests the need for In India, the primary responsibility for ensuring a complete buy-in and involvement of rural drinking water supply rests with state local entities in the planning, implementation governments. GoI provides policy, technical and and O&M of RWSSs. Towards this end, it has financial support to their efforts. In line with the introduced an incentive for states that transfer central role envisaged for the state governments, it water supply assets to PRIs and also provides a is the state Public Health Engineering Departments 10th of its allocations for O&M. Presently, O&M (PHEDs or equivalent departments and agencies) responsibilities for RWSSs typically rest between that have traditionally planned, implemented, line departments, PRIs and Village Water and monitored and managed rural drinking water Sanitation Committees (VWSCs). The experience supply schemes. Following the 74th Constitution with this, given widely acknowledged concerns Amendment Act 1992, the state governments are over scheme sustainability, has been, at best, envisaged to devolve greater sector responsibilities mixed. In this context, there has emerged a case to PRIs at various levels, that is, the Zila for examining alternative options for O&M of Panchayats (ZPs) at the district level, the Block rural drinking water supply schemes (especially Panchayats (BPs) at the block level and the Gram in the backdrop of recent attempts by concerned Panchayats (GPs)—local government entities—at departments and PRIs in some states to involve the village level. Currently:3 3 Given the large number of states in India and differences in their approach to, and pace of, devolution of powers to PRIs, the description here is broad. 13 The MDWS provides policy, technical and n consumers and collection of revenues, are financial support to state governments; envisaged to rest with PRIs, particularly the ZPs facilitates sector coordination and human (generally for multi-village schemes) and GPs resource development; and monitors and (for hand pumps, tube wells and single-village evaluates the working of rural drinking water schemes), with PHED personnel at the district (and sanitation) programmes; and and village level providing technical (design and supervision) support to the PRIs. However, the The state governments, through PHEDs, are n varying pace and practice of devolution across responsible for policy development, providing states implies that, in practice, responsibilities technical and financial support, undertaking for planning, implementation, monitoring and sector coordination functions and monitoring O&M of schemes rest between the PHEDs and the and evaluating public programmes. The PHED PRIs. There is emerging recognition, though, of is supported by the State Water and Sanitation the need for these responsibilities to be assumed Mission, a registered society under the aegis by PRIs in time and PHEDs to be re-oriented as of the PHED with representation from nodal technical support providers to PRIs. officials of various concerned state government departments, and the Water and Sanitation ii. Household-level Arrangements Support Organisation, a multi-disciplinary unit An analysis of household-level water supply under the State Water and Sanitation Mission, arrangements for rural households (Table 1) suggests for strategising, facilitating and monitoring ‘soft’ progress on the water ladder, that is, movement aspects of the Rural Water Supply (RWS) sector towards improved arrangements. This is reflected across the state. in the declining dependence on unprotected sources over time even though household coverage with The critical functions of water resource stand posts and house connections, the ‘higher planning, development and management are rungs’ of the water ladder, remains slow and low also undertaken at the state level through Water —increasing only from about 20 percent to about Resource Departments (WRDs, or equivalent 30 percent over 1993 to 2009.4 departments and agencies). Economic regulation—setting, monitoring and enforcing The movement on the water ladder has been of service standards and tariffs—in the water propelled by significant central and state plan resource sector is also undertaken by the WRDs, investment. From the first (1951-56) to the 10th FYP though some states have been considering (2002-07), the RWS sector witnessed central and independent regulators in the recent past. state plan investments of about Rs. 674 billion and the 11th FYP (2007-12) envisages central and state Responsibilities for planning, implementation, n plan investment of about Rs. 880 billion (nearly monitoring and O&M of rural drinking water three times that during the 10th FYP) (Planning supply schemes, including tariff-setting for Commission, 2010). 4 National Sample Survey Office (NSSO), Ministry of Statistics & Programme Implementation, GoI, 2010; World Health Organization-UNICEF Joint Monitoring Programme, 2010. Engaging Non-state 14 Providers in Rural Water Supply Services Table 1: Rural India: the Water Ladder Year, Source Percentage of Rural Households Dependent on Various Arrangements (%) Unprotected Wells Hand Pumps/ Stand Posts Household Tube Wells Connections 1993, NSS 33 4 45 11 8 1996, NSS 25 3 49 13 9 1999, NFHS 25 3 47 16 10 2000, MICS 21 4 53 14 8 2001, CoI 22 4 49 16 8 2006, NFHS 16 3 56 14 11 2008, DLHS 20 52 16 12 2009, NSS 10 6 55 30 Source: World Health Organization-UNICEF Joint Monitoring Programme, 2010; National Sample Survey Office (NSSO), Ministry of Statistics & Programme, GoI 2010. Note: CoI= Census of India; DLHS= District Level Health Survey; MICS= Multi-Indicator Cluster Survey; NFHS= National Family Health Survey. iii. Sources, Types of Schemes and Associated less complex. Responsibilities for planning, Institutional Arrangements implementation, monitoring and O&M, including There are two broad types of RWSSs: (a) those tariff-setting and revenue collection, of these that draw on local sources; and (b) those that schemes rest between the GPs and PHEDs; capital require water transfer. The former are more costs are borne by central and state governments. likely to depend on groundwater with associated In schemes that require water transfer, WRDs household-level arrangements being hand pumps, typically play the role of bulk suppliers and tube wells, wells, stand posts and household transmission agencies. They sell water to the connections (the latter two via piped water PHEDs or ZPs (the bulk retailers), which in turn schemes). At least 80-85 percent of the Indian sell it to the GPs (the retailers). The GPs sell the rural population depends on schemes that draw water to the final consumers. Prices are determined on local groundwater sources (DDWS, 2007; Lok by the sellers. Thus, the WRDs set prices for Sabha Secretariat, 2009). Schemes that require PHEDs or ZPs; the PHEDs or ZPs set the prices water transfer are more likely to depend on surface for GPs; and the GPs set the prices for consumers. water sources with associated household-level O&M responsibilities for their portions of the arrangements being stand posts and household storage and transmission (WRDs) and distribution connections. Less than 15-20 percent of the rural network (PHEDs/ZPs and GPs) rest with the population depends on such schemes. sellers. Capital costs for bulk water storage and Institutional arrangements (Table 2) for schemes transfer as well as RWSSs are borne by the central that draw on local sources are relatively and state governments via the WRDs and PHEDs 15 Table 2: Institutional Arrangements for Rural Water Supply Source Groundwater Surface Water % of population served 80-85% 15-20 % Household Arrangements hand pumps, tube wells, stand stand posts/household connections posts/household connections Capital Expenditure state and central governments state and central governments O&M PHED and GP/ZP WRD, PHED/ZP, GP at the state level; and their counterpart ministries rural Indians receive less than 40 lpcd of water (Ministry of Water Resources and MDWS) at the currently. According to state-specific studies/ GoI level. assessments, the proportion of rural population not receiving adequate water supply may iv. Challenges be higher; However, despite the movement on the water ladder over time and significant past and on-going public In 2009, about 14 percent of India’s rural n investment, there are causes for concern. Thus: population was estimated to be experiencing water shortages at some point in time in a year In 2009, about 10 percent of India’s rural n (NSSO, 2010). This could imply that about 117 population was estimated to depend on million rural Indians experience water shortages unprotected sources (NSSO, 2010). It is likely that currently. Again, according to state-specific this figure is under-estimated given that estimates studies/assessments, the proportion of rural of India’s rural population dependent on population experiencing water shortages may unprotected sources in 2000-08 ranged from 16 to be higher; and 22 percent (World Health Organization-UNICEF Joint Monitoring Programme 2010). Even if the Of India’s 1.66 million rural habitations, about n 2009 estimates are assumed to hold, an estimated 434,000 (roughly 26 percent) do not have their 83 million individuals (the Census of India, entire population covered and about 130,000 2011, reports India’s rural population at (about 8 percent) report chemical water quality about 833 million) may be dependent on issues (DDWS, 2010). unprotected sources; Continued dependence on unprotected sources, In 2010, about 22 percent of India’s rural n inadequate supplies, seasonal shortages population was estimated to receive less than 40 and quality issues, despite significant public litre per capita per day (lpcd) of water (DDWS, investment, have commonly been traced to issues 2010). This could imply that about 183 million around source and system sustainability5 (DDWS, 5 This is manifest in the fluctuating rural habitation coverage figures over time. The proportion of fully covered rural habitations in India has been reported at about 33 percent in 1997 (about 476,000 habitations), about 13 percent (about 189,000 habitations) in 2001, about 42 percent (about 637,000) in 2003 and about 26 percent (about 434,000 habitations) in 2010. Some of these changes may also be ascribable to the emergence of new rural habitations. Engaging Non-state 16 Providers in Rural Water Supply Services 2010; Lok Sabha Secretariat, 2009; Planning System Sustainability: System sustainability has been Commission, 2010): impacted by inadequate O&M, traceable, in turn, to limited community engagement in the planning and Instances of water sources running dry or water n implementation of schemes despite policy directions quality being affected (source sustainability); to the contrary, and limited willingness of PRIs to and levy and collect user charges. Thus, according to various studies/assessments: Schemes not performing to expectations n on account of inadequate O&M Schemes have typically been planned and n (system sustainability). implemented without substantive community engagement. Though GP representatives may Source Sustainability: Rural water supply in India have an influence on the location of schemes, depends mainly on groundwater and even though drinking water accounts for only 1 percent consultations on tariff-related issues occurred in n of groundwater use, stress on groundwater only a fifth of the GPs surveyed resources impacts schemes and supplies (Lok only a fourth of the GPs report VWSCs n Sabha Secretariat, 2009). As reported by the DDWS to the Standing Committee on Rural less than 1 percent of the respondents are aware of n Development (2009-10) for the 15th Lok Sabha, the VWSCs’ existence (Planning Commission, 2010) ‘despite increasing investments, the infrastructure created for drinking water gets negated as…the In such circumstances, where communities remain source has been depleted due to other sectors largely unaware of their own role and obligations or…the service population has increased…(and) towards O&M of rural water supply infrastructure there is a general reluctance…(among)…states for owing to inadequate community engagement, pricing of water and regulation of its extraction’ a sense of community ownership vis-à-vis rural (Lok Sabha Secretariat, 2009). It is against this water infrastructure is rare; and O&M suffers on backdrop that NRDWP emphasises conjunctive account of the dependence on others (concerned use of ground, surface and rain water and a mix of departments, PRIs, etc.). A five-state evaluation interventions around protection and augmentation of RGNDWM7 suggests that inadequate O&M of groundwater sources, revival of traditional accounts for about half the non-functional hand sources, rainwater harvesting and regional pumps—30 percent of the total hand pumps in schemes that may necessitate bulk transfer.6 the states (Planning Commission, 2010); and   6 However, the movement towards surface water sources may have cost and time implications. Again, as reported by DDWS to the Standing Committee on Rural Development (2009-10) for the 15th Lok Sabha, ‘while developing surface water sources, since only a minor portion of this water resource is used for drinking, the sector is not able to justify huge transport of water from distant sources…(and)…has to wait for…(the)…development of the irrigation sector to access the water for its projects’ (Lok Sabha Secretariat, 2009). Major and medium irrigation projects in India, on the other hand, have been known for their time (and cost) over-runs. The estimated irrigation potential created during the 10th FYP (2002-07) and in the first three years of the 11th FYP (2007-12) was a little over half of what was targeted (Ministry of Water Resources, 2007; Planning Commission, 2010). 7 Evaluation Study on Rajiv Gandhi National Drinking Mission (RGNDWM), Programme Evaluation Organisation, Planning Commission (GoI), November 2010. 17 n Only 12 percent of the GPs collect user charges and financial constraints among PRIs and staff (DDWS, nd). Moreover, more than 90 percent shortages and labour issues among PHEDs.9 of respondents consider the government These constraints have meant that O&M of existing responsible, and are unwilling to pay, for O&M infrastructure has suffered on account of lack of of RWSSs (Planning Commission, 2010). In 2007, technical staff and expertise within PRIs; limited the annual O&M cost of RWSSs was estimated human resources available with PHEDs to either at about Rs. 65.7 billion and funds available support PRIs or undertake O&M themselves; were estimated to meet less than 20 percent of and reluctance among both PRIs and PHEDs to this requirement (DDWS, 2007). At around this introduce and collect user charges. Importantly, it time (2007), the NSSO estimated that India’s is the quality of services available to households rural households pay an average of Rs. 2 per that has been compromised and, unless human and month per capita on account of taxes and cesses8 financial resource constraints currently in evidence —about 0.2 percent of the monthly per capita are addressed, it is likely that the significant expenditure (NSSO, March 2010). Even if the investments proposed in the sector in the coming entire amount paid by rural Indian households years would remain at risk. by way of taxes and cesses were to be used for O&M of RWSSs, it would meet only 30 percent A case then emerges for reflecting on alternate of the total O&M costs. arrangements for O&M that ensure appropriate and timely preventive, operational and corrective O&M B. Alternate Institutional Options through dedicated, qualified staff at reasonable cost. It is in this context that alternate options for for O&M undertaking O&M of RWSSs, particularly through With the NRDWP prioritising household-level non-state providers, are being considered in some water security and movement up the water ladder states by PRIs and PHEDs. It is expected that (that is, working towards adequate and safe water alternate arrangements would lead to operational supply through household connections), massive and cost efficiencies with implications, inter alia, investment, aimed at responding to both system for: (a) scheme efficiency and longevity, which is and source sustainability issues, is proposed for critical for ensuring that efforts towards ensuring rural drinking water supply in the coming years. water security and source sustainability translate The sector’s human and financial resource needs, into an improved experience in terms of service including those for O&M, are likely to increase quality at the household level; and (b) the O&M significantly with such investment. Increased cost burden, which is important to reduce, given the O&M requirements emerge amidst widely challenges in levying and collecting user charges at observed concerns in relation to O&M of even the the community level and the resultant demands on existing infrastructure, emanating from capacity the central and state governments. 8 Taxes and cesses include both ‘water charges’ and ‘other consumer taxes and cesses’. 9 PHEDs in several states have not witnessed staff hiring in the past years and have tended to engage contract/daily wage staff to respond to increased work requirements. However, staff shortages imply challenges in even supervision of contract/daily wage staff. Further, such staff has often sought regularisation of services in time. Engaging Non-state 18 Providers in Rural Water Supply Services Through this study, three such options for the Moreover, it is possible for any one village to management of rural water supply services through exercise a choice between several options, for engagement with non-state providers of services example, a peri-urban village of 7,500 population, in have emerged. These options, organised in order of which reasonable technical capacity is available and increasing involvement of the non-state agency in households are willing to pay for services, may opt system development and management, are: for a Community Based Organisation (CBO) model (trust or society) or an operator-led management Mandating and empowering community-based n option. The choice must lie with the community for, entities such as self-help groups (SHGs) for as indicated in Table 3, community concurrence provision of services through Memoranda of of any option is a critical enabling factor in Understanding (MoUs); successful implementation. Instituting registered societies/trusts (formed n Conversely, it is also foreseen that any one option among the resident population), dedicated to may be applicable across different contexts, for providing water supply services and operating example, an O&M contract to a private entity seems on a profit or not-for profit basis; and viable at a certain scale.10 This may be satisfied by a Engaging a service provider through a simple n single settlement or a cluster of smaller settlements. O&M contract. No one rule is applicable to all, and the availability of a menu of options increases the possibility of a The adoption of any one option is influenced by good fit between context and arrangement for O&M. the particular context of the settlement and water supply scheme, including the size of the settlement; Each option is documented through a case study geographic context; economic profile; available (presented in Chapter 2) and conclusions on the capacity within community groups and their characteristics of the options and their applicability inclination to undertake services; age, condition as well as key learnings from across the options and complexity of the RWSS; household willingness are captured in the concluding section. It is hoped to pay for service; etc. This list is by no means that this study stimulates further reflection and exhaustive, and while Table 3 captures a few factors discussion on the appropriateness of, and potential that impact relevance of any option to a context, way forward with regard to non-state providers in these are indicative only and not prescriptive. the O&M of rural drinking water supply schemes. 10 Several sources indicate a population of at least 20,000 as a threshold criterion. 19 Table 3: Options for Engaging Non-state Providers in Management of Small Piped Water Supply Schemes Option/Model Relevant Cases Relevance Enabling Factors Documented in to Context/ the Publication Applicability SHG Khambegaon Small, isolated • Capacity building inputs (Case Studies) settlements • Buy-in from all (approx. 1,500- • Single-village scheme stakeholders/community 3,000 population); (Coverage: population simple schemes • Clear agreement for services 1,314; area 56,672 hectares) CBO (registered Chinchali Small and large • Clear agreement for trust, society, etc.) (Case Studies) villages (5-15,000 services, with powers to population), fulfil mandate • Single-village scheme good technical (Coverage: population capacity within the • Transparency, community 26,000; area 80.47 square community monitoring kilometre • VWSC was registered as a society O&M contract Morinda, Punjab Large villages, or • Community concurrence (Case Studies) a cluster of small • Clear agreement allocating villages, providing • Multi-village contract (22 sufficient scale of roles and responsibilities schemes cover 51 villages) operations (over • Hiring of local staff 20,000 population) • Coverage: population • Effective redeployment of approximately 35,000 department staff • Incentives for augmenting household connections • Metering • Community monitoring Engaging Non-state 20 Providers in Rural Water Supply Services 21 Case Studies A. Operations and Maintenance taxes, the SHG was to meet payments for power of Village Water Supply Systems consumed and maintain updated records of water through Women’s Self-Help accounts. Eighty percent of the revenue from water Groups: Khambegaon, Parbhani tax collections was to be retained by the SHG to District, Maharashtra meet operational expenses and 20 percent handed over to the GP, to be maintained in a fund to meet Overview expenses related to system improvements. In June 2007, under the World Bank-supported Jalswarajya Project in Maharashtra, Khambegaon Over a three-year engagement, the SHG hired a village (population: 1,314) in Parbhani district technician to operate the system and achieved 100 entered into an agreement with a women’s self- percent recovery of water tax demand, resulting help group for O&M of the village water supply in a small profit. However, its effectiveness was scheme. The main objective of the engagement was hampered by the lack of technical and financial to ensure efficient collection of water taxes, since capacity as members, being illiterate, were unable over 90 percent of households in the village were to maintain records. By 2010, the village Sarpanch served through house connections. In addition to (head), aided by the technician and the GP peon, all O&M activities, including collection of water had taken over system operations. Figure 1: Location of Thane, Jalna and Parbhani Districts Engaging Non-state 22 Providers in Rural Water Supply Services The initiative was replicated in about 124 GPs under In January 2003, the Government of Maharashtra the Jalswarajya Project, with mixed results. Among took a policy decision to discontinue direct and the constraints to successful scaling up, the lack of indirect subsidies for O&M of RWSSs. GPs were clear contracts/agreements; insufficient buy-in made responsible for fixing appropriate water from all stakeholders; weak capacity building taxes that would cover the costs of routine O&M. inputs; and inadequate support are identified as However, despite such bold policy initiatives, the most critical. VWSCs’ capacities to manage water supply schemes continue to remain weak and the i. Background long-term sustainability of rural water supply Maharashtra is the second most populated state in systems has been a cause of concern. Several India with a population of 112.37 million.11 Its capacity-building measures have been carried rural population (54.77 percent) is spread across out on a continuous basis but have not yielded 33 rural districts and 98,842 habitations. Over significant outcomes in terms of improved 85 percent of RWSSs in the state are groundwater- services. About 10 percent of habitations record based and face increasing problems of source slippage in service levels annually on account depletion. Approximately 56 percent of households of increasing demands that are not being met, access drinking water through taps (community source sustainability issues and poor O&M and/or individual connections)12 but only 3 percent practices. GPs are grappling with problems of of house connections in the state are metered. poor tax collections,15 inadequate maintenance Reform measures adopted by the Water Supply and resultant poor service levels. and Sanitation Department, Government of Maharashtra, to enhance sustainability of water The Maharashtra Water Supply and Sanitation supply schemes include source strengthening, project—Jalswarajya—was implemented provision of 100 percent house connections and a across 26 districts over the period 2005-11. To focus on single-village schemes. address the issue of poor O&M, the project Moreover, the state government, in its attempts to suggested a menu of service providers that could fully decentralise water supply services, has made potentially be engaged by GPs for undertaking GPs responsible for execution as well as O&M of implementation and/or O&M of the 2,298 RWSSs single-village Piped Water Supply Schemes (PWSSs) constructed or rehabilitated under the project. costing up to Rs. 5 crore (approximately $0.92 These included: million). The GP is to undertake O&M of the water supply system through its VWSC.13 The VWSC is Community-level service providers, n assisted by the village water person,14 employed by including para professionals from the village, the GP; and the Gram Sevak, a government staff experienced in construction such as masons, employed at the GP level to collect taxes. plumbers, etc.; 11 Census of India 2011. 12 Project Concept Note, Jalswarajya-II. 13 Subject Committee of Gram Panchayat as per Bombay Gram Panchayat Act 1958. 14 Also called the GP peon. His salary is generally paid partly from the house and health taxes and partly from government grants received by the GP. 15 In majority of the schemes, water tax collection by GPs is less than 70 percent of demand. 23 CBOs, including Mahila Mandals, Yuvak n involvement derived from the recognition of Mandals, SHGs and their federations; and their role as primary stakeholders in water supply—and therefore their interest in ensuring n Public (Maharashtra Jeevan Pradhikaran, ZPs) sustainable operations. In addition, elected and private service providers. representatives (GP members) were facing Amongst these, the involvement of women’s difficulties in adopting tough measures required SHGs in the management of village water supply to ensure financial sustainability of water supply systems was promoted as part of the women’s systems (disconnections, appropriate cost recovery empowerment component included in the tariffs, etc.). It was felt that transferring this role project. This was first attempted in Khambegaon to an entity outside the elected body would village and was quickly picked up by the facilitate implementation. Also, the Gram Sevaks, then Sarpanch of the GP, who was considered traditionally entrusted with the responsibility progressive and proactive. Subsequently, the of water tax collection, were constrained in model was replicated in 124 GPs across 22 undertaking regular follow-up with households to districts. The rationale for seeking women’s ensure payments. Engaging Non-state 24 Providers in Rural Water Supply Services was commissioned in May 2007, 18 months after start of construction. The scheme draws water from a public well located approximately 1.5 kilometre (km) from the village, and includes an Overhead Service Reservoir (OHSR) and 750 metre (m) of distribution network divided into three zones to ensure supply at adequate pressure. Water is supplied twice a day from 6-7 am and 5:30-6:30 pm. Daily supply averages 60 lpcd. However, this may decrease to 30 lpcd in summer months due to frequent and long power cuts. Supply is staggered in the three zones with each zone getting approximately 15-20 minutes of water supply. Individual household connections were promoted under Jalswarajya-I and 157 households (91 percent) in Khambegaon have house connections. A connection deposit of Rs. 100 was collected from each household, while material expenses were borne by the households. The number of household connections has increased from 135 to 157 since the scheme was commissioned in 2007. Installation of meters for all house connections Khambegaon village, comprising 172 households was initiated in 2011 and, by June 2012, 100 house and a total population of 1,314,16 is located in connections had been metered.17 The new system Purna block, Parbhani district, Maharashtra. The has significantly reduced the hardships of women GP, comprising two villages (Khambegaon and who used to carry water from distant local sources. Mahadpuri), is spread over 56,672 hectares. iii. Process and Terms of Engagement ii. Scheme Details During preparation and implementation, The water supply scheme in Khambegaon was Jalswarajya facilitated increased interactions constructed under the Jalswarajya-I Project, at a between the GP, women’s groups and villagers cost of Rs. 29.79 lakh ($55,164) of which the GP through meetings to promote community contributed a little over 10 percent. The scheme participation in the project.18 As a result, 13 SHGs 16 Census 2011. 17 The cost of installing meters was funded through a government grant. While 100 house connections have meters, these households are not yet paying the water bill based on the water consumed but continue to pay the flat tariff. 18 This eventually helped strengthening of Gram Sabhas in terms of improving their participation and transparency. 25 were formed in Khambegaon village and nurtured Collection of water tax and maintenance of n to promote women’s economic activities in updated records of collection village development. Response to complaints related to n As most households in the village had house system repairs connections, regular collection of water tax was recognised as a major step towards ensuring n Sharing of revenue: sustainability of the water supply system. It was also felt that women’s involvement in this function n 80 percent of the revenue collected from the would ensure higher recovery of water taxes. The water tax to be retained by the SHG and VWSC (with 12 members), which had been active 20 percent given to the GP21 during the construction phase, was perceived to have no further role in O&M. Consequently, on n Water tariff: 1 May 2007, the Gram Sabha passed a resolution handing over billing and collection to Sailani Baba n A monthly charge of Rs. 30/household for all Bachat Gat,19 one of the SHGs20 in the village, households with house connections on the basis of its readiness to undertake the Significantly, the then Gram Sevak—who was task and the high cost recovery promised by it. previously entrusted with collection of water taxes Subsequently, regular O&M of the water supply —did not approve the arrangement and did not system was also handed over to the SHG. An sign the resolution. agreement, incorporating the following terms and conditions, was signed by the GP with the SHG on It was understood that the SHG would employ a 25 June 2007: competent person to carry out valve operations and repairs in the system. The GP peon (or village Roles and responsibilities of SHG: n water man), who was earlier involved in valve and pump operations in the old system, would O&M of the water supply system, n continue to operate the pump at the source well including pumping mains, OHSR and the but would not be involved in the operation of the distribution system distribution system. Purchase of chlorine and administration of n To prepare them for their role, the SHG members dosages for water purification were taken on exposure visits to Ralegan Siddhi,22 Hivre Bazar23 and a few other villages in October Payment of electricity bills n 2005 using the Information, Education and 19 The SHG has 12 members, all of them illiterate. 20 Only seven SHGs are functional at present. 21 The amount that is made available to the GP has been used for undertaking system improvements such as installation of valves in the distribution zones. 22 The village of social activist Anna Hazare, who demonstrated holistic development of the village through community participation. 23 The village of Popatrao Pawar, who successfully demonstrated the concept of community-led water resources management. Engaging Non-state 26 Providers in Rural Water Supply Services Communication funds available under the project. households to pay water taxes regularly, it was The SHG also received training on water quality unable to manage financial records and accounts monitoring and surveillance in 2007. However, as its members were illiterate, and had not there is no evidence that the SHG, or the water received any training related to this function.25 person engaged by it, received any training on Also, since the village is small and the scheme technical and financial aspects of managing the relatively new, the water man alone was able to water supply system. Thus, with limited technical respond to complaints and undertake repairs knowledge on repairs, the SHG relied on the required. Thus, after the initial drive for water advice and intervention of the Sarpanch. tax collections, the SHG’s involvement was not leading to further value addition. At present, the iv. Current Status in Khambegaon Sarpanch, with the help of the person engaged by There is anecdotal evidence to support the the SHG and the GP peon, undertakes the O&M of understanding that the SHG continued to be the scheme. He maintains accounts for water tax involved in O&M (through its water man) and collections and monitors the O&M of the system water tax collection till 2010.24 However, the on an informal basis through regular interactions arrangement was subsequently discontinued. with all stakeholders (water man, GP peon and Discussions with the Sarpanch and other GP households). Households report that water supply members revealed that while the SHG had made is reliable, except during the summer months on a very valuable contribution by motivating account of frequent power cuts. 24 Till 2010, the water bills were issued in the name of the SHG. However, following an objection to this by some households the receipts were issued by the GP. 25 No records were maintained by the SHG. 27 Table 4: Receipts and Expenditure for Khambegaon Water Supply Scheme Details Financial Year 2008-09 Jan-Dec 2011 Total no. of households 140 172 No. of house connections 135 157 Water tax demand (Rs.) 48,600 53,100 Receipts Water tax (Rs.) 48,600 53,100 Expenditure Salary of village water person (Rs.) 9,000 24,000 Electricity bill (Rs.) 5,000 5,000 Purchase of bleaching powder (Rs.) 2,880 1,400* Minor repairs/other expenses (Rs.) 6,000 4,500 20% amount to the GP (Rs.) 9,720 10,620 Total expenditure (Rs.) 32,600 45,520 Total profit (SHG) 16,000 7,580 *50 percent cost is subsidised by the government in the form of reimbursement to the GP. Source: Sarpanch, Khambegaon Village. v. Water Tax Recovery As presented in Table 4, water tax collections The involvement of the SHG in water tax collection through both the SHG and GP have been resulting has been the primary factor in motivating in a surplus after meeting all stated O&M households to pay water taxes regularly. In costs. (However, it was not assessed that O&M addition, an advance water tax of Rs. 180 or $3.3 expenditure was adequate to system requirements (for six months @ Rs. 30 per month) had been for sustainable operations.) collected at the time of granting connections as security against non-payment of water bills. vi. Government of Maharashtra’s Policy Initially, the SHG had conducted meetings and Initiative on Involvement of SHGs door-to-door interactions to sensitise households About one year after the agreement in on the importance of paying taxes for the Khambegaon had been signed, the state sustainability of the water supply system. During government issued a resolution (GR dated 7 June this initial collection drive, the SHG was able to 2008) to promote similar initiatives across the state collect 90 percent of the water tax demand. In for O&M of single-village as well as multi-village 2008-09, the recovery was 100 percent. However, schemes. The policy suggests that GPs can enter an in 2010-11, when the Sarpanch (through the village agreement with interested SHGs. The SHGs will water man) collected water taxes, recovery was collect water taxes, 80 percent of which may be lower at 94 percent. retained by the SHG to meet O&M expenses such Engaging Non-state 28 Providers in Rural Water Supply Services as the salary of the village water person, electricity Jalna district. In Hiwarabali, the GP decided that bills, minor repairs, cost of bleaching powder, etc. the VWSC would undertake the O&M of the The balance 20 percent is to be deposited in the new water supply system, including water tax GP’s Water Supply Fund. In case of major repairs collection. Hence, the details of Hiwarabali are (not defined in the resolution), the GP is to make not included here. An overview of water supply additional funds available to the SHG. systems in all other GPs is presented in Table 5 and roles and responsibilities shared at the GP While the model has had little uptake outside level are summarised in Table 6. of the project villages, it was replicated in 124 GPs across the 22 districts covered by the Thus, in two of the villages studied, namely, Jalswarajya Project. Khambegaon and Kambare, the SHG was involved both in O&M and collection of water vii. Initiatives with SHGs in Other GPs taxes at inception. In both villages, the SHGs A few initiatives in other project districts were also were undertaking functions related to O&M assessed, to broaden the understanding of the role through technical resource persons employed and status of SHGs in water supply services. The by them. In the other two villages (Utchat and other GPs visited include Kambare and Uchat in Surangali), the SHG’s role was limited to water Thane district and Surangali and Hiwarabali in tax collection. Table 5: Functions of Water Supply Management across GPs* Village O&M Water Tax Billing and Collection Pump Valve Repairs Water Billing Collection Operations Operations Disinfection Khambegaon GP peon SHG-hired SHG-hired SHG-hired SHG SHG technician technician technician Kambare SHG-hired SHG-hired Plumber Volunteer from GP SHG technician technician (hired) PHD Uchat GP peon GP peon Plumber GP peon GP GP/SHG (hired) (partially) Surangali GP water GP water GP water GP water man GP SHG man man man *Based on the role of the SHGs agreed at the time of their engagement in respective villages. 29 Table 6: Key Characteristics of SHGs Involvement in Rural Water Supply in Villages Assessed Village Number of Number Year of GP Functions Period of Water Tax SHGs’ (District) Households and % of Commi- Resolution Performed by Engagement Collection: Current (Population) House ssioning Involving the SHG at of SHG Sharing Functions Conn- SHGs the Time of ections (Date) Engagement Kham- 172 157 (91%) 2007 1 May 2007 Water tax 75:25 Not begaon (1,314) plus billing changed to involved (Parbhani) contract 2007-10 80:20 now signed with Water tax SHG on 25 collection June 2007 Engagement of technician for minor repairs and water disinfection Payment of electricity bills Kambare 107 73 (68%) 2009 6 December Water tax Dec 2010 to Voluntary Same (Thane) (506) 2010 collection date service functions continue Engagement today of technician including for minor major repairs repairs Payment of electricity bills Uchat 135 130 (96%) 2009 No Water tax 2009 to date Voluntary Same (Thane) (546) resolution collection service function (partial) continues today Surangali 490 116 (23%) 2008 No Water tax 3 months 80:20 Not (Jalna) (2,600) resolution collection involved now Note: All schemes draw water from open wells and include pumps (typically 5 HP); elevated storage reservoirs (20-40,000 litre); and a piped distribution network. Engaging Non-state 30 Providers in Rural Water Supply Services viii. Impact and Observations whereas the collection sharing approach As is evident from the review of initiatives in these followed in Surangali and Khambegaon four villages, the key impact of engaging SHGs (Marathwada region) was viewed as in the O&M of water supply schemes has been to commercial and objected to (especially in ensure household commitment to meeting water Surangali). Thus, it would seem that the tax. Villages in which the involvement of SHGs acceptability of community-based entities has been well-supported by both the GP and assuming a commercial role may be limited. households, and has continued for a significant As a result, while they may constitute a good period—such as in Khambegaon for nearly three interface with the community, they also face a years or in Kambare since December 2010—water challenge in converting this into a sustainable tax collection is reported to be about 95 percent. commercial engagement. Significantly, in both villages, O&M was clubbed with water tax collection, linking services to However, this hypothesis requires further payment. This may have played a role in the high validation. What is certain is that the SHGs’ rates of collection reported. In terms of actual effectiveness is contingent upon the acceptance O&M services, however, the SHGs relied on hired of all households in the village, and the GP technicians, and played a largely supervisory role. plays an important role here. Moreover, a clear mandate (point (c) below) also plays a The review also highlights the following factors as facilitative role. enablers in ensuring that arrangements with SHGs for O&M services in RWSSs are effective: (b) Adequate capacity-building inputs for the SHGs: In all cases, the only inputs provided to (a) Buy-in from key stakeholders: In the SHGs comprised exposure visits to other Khambegaon and Kambare, where SHGs had villages in Maharashtra where communities the support of the GP—as evidenced through had been involved in village development. No resolutions—and the community, they were specific training was provided on technical able to provide meaningful services over or financial aspects. This lapse was further a significant period. On the other hand, in compounded by the lack of education among Surangali, the engagement lacked acceptance a majority of SHG members. Given that from both the GP and households, and the the water supply systems were new and SHG withdrew within three months of fairly simple, the SHGs managed technical its engagement. aspects of O&M (where mandated) through local technicians or plumbers. The absence Cultural factors may have played a role in of technical competence, however, posed the acceptance accorded to SHGs. Since the limitations, as demonstrated in Khambegaon, service provided in Kambare and Uchat where the Sarpanch soon dominated the (Konkan region) was voluntary, it may have O&M functions. In addition, all SHGs found gained greater acceptance among households, it challenging to maintain even simple records 31 related to water tax collections, resulting in B. Empowering Community-based poor record-keeping during the period of Entities through Memoranda of their involvement. Understanding: Chinchali Village, Belgaum District, Karnataka (c) Clear mandate or agreement between the GP and SHG: While the GP resolutions in Overview Khambegaon and Kambare constituted an On completion of the PWSS in Chinchali village agreement between the GP and the SHG for (population: 26,000), North Karnataka, O&M O&M of the water supply system, it focussed responsibilities were handed over to the GP, and largely on tasks to be undertaken by the SHG. subsequently transferred to the VWSC. Recognising The role of other stakeholders (GP peon, GP) the limitations of its effectiveness, particularly in and accountabilities were not delineated. GPs recovering water charges, the VWSC registered as an have tended to remain silent partners, with independent society in 2008, and signed an MoU for water supply services with the GP. The MoU clearly a passive approach towards the mandate lays down the mandate of the society with regard given to the SHGs. Moreover, the terms of the to O&M, including billing and collections, financing agreement, particularly concerning revenue extensions of the distribution network, and water sharing, are not made widely known among quality testing, while assets vest with the GP, which all households as, for example, in Surangali, approves new connections and determines tariffs. where households suspected that the SHG The society retains all income from user charges for was making money from the agreement, and the purpose of meeting operational expenditure. refused to pay the water tax to them. By April 2011, the society was recovering 90 percent (d) Sustained support to the initiative after of revenue demand, and had accumulated savings the project period: The Jalswarajya-I of over Rs. 126,000 ($2,333). Institutional positioning project came to an end in 2010-11 and staff of the O&M function, in combination with greater (gender specialists) and non-governmental transparency, has played a central role in the success organisations who were supporting the SHG of the arrangement. initiative were withdrawn after barely two to three years of engagement in the villages. This i. Background was just as the initiative was picking up, and Over 61.43 percent of Karnataka’s total population support was most needed. The lack of an exit of 61.1 million26 resides in rural areas of the state. strategy created a vacuum, since the initiative While the state has achieved significant success had failed to build institutional linkages to in providing a basic minimum service level for support the SHGs further. In combination drinking water supply (40 lpcd) to most of its rural with the lack of capacity-building inputs, this population, it faces several challenges in ensuring precluded the initiative from taking root in a operational and financial sustainability in the water sustainable manner. supply sector. 26 Provisional Population Tables, Census, 2011. Engaging Non-state 32 Providers in Rural Water Supply Services Figure 2: Location of Chinchali Village In order to ensure financial sustainability of RWSSs, the state government issued a directive in November 2002 for state-wide revision of tariff (Rs. 25 per month for house connections and Rs. 10 per month for public stand posts), and has issued guidelines on collection of water tariff from users. As a part of its efforts to strengthen O&M of RWSSs, the state government also provides an annual maintenance grant for O&M of RWSSs to GPs (@ Rs. 3,500 for Mini Water Supply Schemes, Rs. 8,000 for PWSS and Chinchali Rs. 600 each for hand pumps). The Chinchali water supply scheme is a single- village scheme supplying piped water to the village of Chinchali located in Raibagh taluka, Belgaum district, Karnataka. The village is spread over an area of 8,047 hectares and has a population of approximately 26,00029 (about 4,300 households).30 Prior to 1994, village households were compelled to carry water from River Krishna In October 2000, the Government of Karnataka located approximately 3 km away. This changed adopted a sector reform strategy that focusses with the development of the first PWSS under on a demand-responsive approach, cost recovery the World Bank-assisted Integrated Rural Water and further phased devolution of rural water Supply and Environmental Sanitation Project in supply service delivery responsibility to GPs and 1994. Constructed at a cost of Rs. 7.3 million, VWSCs.27 At present, the O&M of all Mini Water the scheme was subsequently augmented in Supply Schemes, PWSSs and Hand Pump Schemes 2001-02 under the second World Bank-assisted has been transferred to GPs/VWSCs.28 Jalnirmal project. 27 This sought to deepen implementation of the Karnataka Panchayati Raj Act 1993, which stipulates O&M of RWSSs as one of the statutory responsibilities of GPs. 28 Source: Karnataka Rural Water Supply & Sanitation Agency. 29 As per Census 2001, the village had a population of 15,949. 30 Assuming an average household size of six. 33 ii. Scheme Details and Process of Engagement Drinking Water Supply and Rural Development The scheme sources water from River Krishna Society. The society entered into an MoU with through a jack well, and provides for treatment the GP for O&M of the village water supply through a slow sand filtration process. Treated scheme. It is constituted of the same 14 village water is pumped to seven OHSRs and supplied leaders who were previously members of the every day for an hour between 7 am and 8 am. As VWSC. Society members are not remunerated on April 2011, the system supplied approximately for their services. 900 house connections31 and 25 public stand posts in the village. Households that do not have house To obtain a house connection, households connections either use public stand posts or share submit an application to the society along with private connections. an upfront connection charge of Rs. 60, and a refundable deposit of Rs. 500. All applications The Chinchali piped water supply system is are reviewed by the GP, which grants approvals operated and maintained by an independent following a review of the scheme’s capacity. society. Post implementation of the Jalnirmal Subsequent to the GP’s approval, the society’s project, the O&M of the water supply scheme authorised plumbers install the connections was handed over to the GP. However, the GP while households bear material costs. The was neither able to recover tariffs nor control amount collected as upfront connection charge illegal connections. In 2003, O&M responsibility is deposited in a fixed deposit by the society. was transferred to the VWSC which had been established under the Jalnirmal project.32 While The current water tariff is Rs. 60 ($1.1) per the VWSC was able to put in place an efficient and month for house connections33 and Rs. 10 transparent management system, it met with stiff ($0.18) per month for public stand post users.34 resistance from some households—particularly While tariffs may be reviewed by the GP every affluent and politically influential households— year on the basis of a budget forecast prepared which were reluctant to pay for water. The VWSC by the society, no tariff revisions have been felt constrained in issuing notices to defaulters or made in the last five years.35 undertaking disconnections. In view of this, it was decided to create a separate legal entity, distinct iii. Key Terms of Engagement from the elected body (GP) to handle O&M of The MoU between the GP and the Krishna water supply. As a result, in 2008-09, the VWSC Drinking Water Supply and Rural was registered as an independent society under the Development Society clearly outlines the roles, Karnataka Society Act, and renamed the Krishna responsibilities and powers of both parties. 31 There were only 394 house connections in 2001, which increased to 810 in 2007; 92 new connections were installed during the period 2008-11. 32 Under the project, the VWSC was entrusted with the responsibility of community mobilisation. 33 As compared to the state-wide prescribed rate of Rs. 25/household connection/month. 34 The MoU recommends that households using public stand posts be allowed to fill only two water pots per day. 35 It has not been felt necessary to review tariffs so far (interview with officer in the District Support Unit, Belgaum, World Bank-supported Jalnirmal project, July 2011). Engaging Non-state 34 Providers in Rural Water Supply Services The GP is the owner of the assets while the society range from 9 to 14 percent) has exceeded total is responsible for operations, repairs, maintenance, expenditure, resulting in accumulated savings of expansion, and billing and collections. Rs. 1,26,507 ($2,333) as on 1 April 2011 (Figure 3 and Table 8). The society is required to prepare an O&M budget by March every year and submit it for User charges from house connections and stand approval of the GP. The society may also propose posts account for approximately 86 percent of the revisions in water tariff, if deemed necessary. annual income. Government grants account for Additionally, it is required to submit details of less than 14 percent of total income and 15 percent income and expenditure to the GP every month, of expenditure, across the three financial years. and to the community (in the form of printed In addition, the total collections from upfront leaflets) once a year. connection charges, kept in fixed deposits and used for major repairs/extensions, amounted to The society retains all income from user charges Rs. 51,750 ($958) in 2009. The society raises for the purpose of meeting monthly expenditure 100 percent of the bills and collection efficiency, at including salaries, electricity bill, consumables 90 percent of demand, is quite high. and repair charges. All money collected as upfront connection charges is maintained as fixed Institutional positioning of the O&M function: deposits, to be used only as bank guarantees for Discussions with the community reveal that while raising loans for further extensions of the scheme. the VWSC was competent in managing the water supply system, it faced difficulties in fulfilling its iv. Impact and Observations mandate appropriately due to frequent interference. Financial performance: Since 2008, when the The establishment of the society, adequately society took over the O&M of the scheme, its empowered to undertake functions vested with it, income (including government grants, which has greatly facilitated O&M of the system. Table 7: Roles and Responsibilities of the GP and the Society Roles and Responsibilities Gram Panchayat Society (Operator) Owner of all water supply assets O&M of the RWSS, including water treatment plant and storage reservoirs Approvals for new connections Undertaking all minor repairs within 24 hours36 Fixing and revising tariff Billing and collection Financing extension of the distribution line to facilitate new house connections Water quality testing on a regular basis 36 No penalty is specified for failure to meet this. In case of major repairs, the GP is to provide assistance. 35 Figure 3: Income and Expenditure: Krishna Drinking Water Supply and Rural Development Society 600000 500000 400000 300000 200000 100000 0 2008-09 2009-10 2010-11 Income Expenditure Engaging Non-state 36 Providers in Rural Water Supply Services Table 8: Income and Expenditure of the Krishna Drinking Water Supply and Rural Development Society (2008-09, 2009-10, April-December 2010) S. No Head 2008-09 2009-10 2010-11     Amount % Amount % Amount % A Income             1 User charges             (a) Household connections 3,49,890 86.97 4,31,010 83.42 4,20,448 85.90  (b) Stand posts 15,010 3.73 14,700 2.85 2 Interest income 300 0.07 0 0.00 7,707 1.57 3 Grants 37,132 9.23 70,934 13.73 61,298 12.52   Income Total 4,02,332 100 5,16,644 100 4,89,453 100 B Expenditure             1 Salaries and administration 88,500 22.59 1,12,272 24.22 1,23,530 28.95 2 Electricity 1,94,538 49.66 2,37,079 51.15 2,49,439 58.45 3 Repairs 1,03,018 26.30 89,621 19.34 49,265 11.54 4 Consumables 5,650 1.44 24,495 5.29 4,515 1.06   Expenditure Total 3,91,706 100 4,63,467 100 4,26,749 100   Savings/surplus 10,626   53,177   62,704     Total Savings         1,26,507     Grants as % of income 9.23 13.73 12.52   Grants as % of expenditure 9.48 15.31 14.36   Operating ratio 0.97 0.90 0.87 (Expenditure/Income) Source: Krishna Drinking Water and Rural Development Society, Chinchali village. Note: No assessment was made of whether O&M expenditure was adequate to system requirements for sustainable operations. 37 Sample Income and Expenditure Statement as issued by the society. Thus while willingness and competencies may Accountability and transparency mechanisms: exist at the local level, it is important to ensure The arrangement has enhanced the transparency that these are housed in a manner that enables and of water supply functions. The society is required facilitates operations. to share income and expenditure details with the GP every month, and with customers every year. Further, the basis for tariff-setting and revision, being the budget proposed by the society, is objective/rational. Engaging Non-state 38 Providers in Rural Water Supply Services C. Engaging Private Contractors i. Background for Operations and Maintenance: Punjab, with a population of 27.7 million Morinda Block, Rupnagar (including a rural population of about 17.3 District, Punjab million),37 is among India’s more prosperous states. While it reports access to improved drinking water Overview sources for most of its rural population, the O&M Faced with a shortage of staff, Department of of the state’s 5,10038 RWSSs remains a concern. Water Supply and Sanitation (DWSS), Punjab, Traditionally, the design and implementation of contracted out O&M of 22 small PWSSs covering RWSSs in the state has been the responsibility of 51 villages (population: 35,000) through a single DWSS, Government of Punjab. However, as a part contract to a locally-based firm in December of the Sector Wide Approach advocated under 2010. The operator, selected through a bid, was the World Bank-supported Punjab Rural Water to undertake all functions related to operations, Supply and Sanitation Project, responsibilities excluding billing and collections and payments for for O&M have been devolved to Gram Panchayat power consumption, responsibility for which was Water Supply and Sanitation Committees retained by DWSS. The contract also emphasised (GPWSSCs) in about 1,100 schemes with mixed an increase in house connections through checking results. In addition, DWSS, Government of Punjab, illegal use of water. The operator was compensated responsible for the remaining schemes, has been directly by DWSS on a monthly basis, but was constrained in discharging its O&M functions due required to obtain a certification of satisfactory to field staff shortages arising from retirements services from the communities before release and a long-standing restriction on fresh staff of payments. Hiring of local staff such as pump recruitment. The DWSS has explored contracting operators was also a contractual requirement. of labour for O&M tasks but the option has not always yielded desired results owing to high At the end of the contract period in March 2011, absenteeism and difficulties in supervision. the operator had improved levels of service significantly, reduced operational expenditure by In Morinda block, where O&M responsibilities of 20 percent and added 720 new house connections, RWSSs rest with DWSS, persistent concerns over resulting in an increase in revenue demand by 20 the quality of O&M amidst staff shortage led to the percent. The contract, however, was not renewed, consideration of the outsourcing option. The idea reportedly largely on account of opposition from was encouraged by the departmental leadership departmental staff. The initiative demonstrates as a pilot initiative. Communities, dissatisfied the potential for service improvements and cost with the poor O&M situation, were sceptical but savings through outsourcing undertaken through inclined to see how the ‘experiment’ would fare.39 a transparent bid process. Anticipating a challenge from employee unions, 37 Census of India 2011. 38 As on 1 April 2010. 39 The option of handing over the schemes to the GPWSSCs was not exercised in the light of the past experience with handover of schemes in the state. Further, it was felt that, should the experiment work, it could prepare the ground for tripartite (and, in time, bilateral) contracts between contractors, DWSS and GPWSSCs. 39 Figure 4: Location of Morinda Block block, with an estimated 5,700 households and a population of about 35,000 (approximately half the estimated population of Morinda block).40 Prior to outsourcing, 3,516 households (62 percent) reported unmetered house connections; others, district-level data suggest, are likely to have had their own private tube wells. All schemes covered under the O&M contract are relatively new, constructed post 2000, with 10 constructed after 2005. All schemes are located within a radius of 10 km from the block headquarter and cover an area of about 374 sq km. All but one have a design capacity of 40 lpcd.41 Following the Departmental Notification of Tender in September 2009, bids were invited through a three-envelope, single-stage selection process. The tender documents were prepared in-house Morinda Block by the DDWS and the entire procurement process was managed by a Tender Processing Committee, comprising two Executive Engineers and a Sub- divisional Engineer. The pre-qualification criteria the departmental field staff was relocated before were based on both annual turnover—fixed at the initiative was taken forward. The extent to Rs. 15 lakh for each of the last three years—and which staff relocation could be achieved, together prior experience of ‘similar’ projects.42 Four bids with the need to provide a contiguous service area were received of which two met the criteria and for bidders, was a critical factor that influenced the size/coverage of the O&M contract package. were shortlisted. In their submissions, the bidders commonly mentioned the following concerns: ii. Scheme Details and Process of Engagement The O&M contract extends to 22 of 30 functional They should not be held responsible for n tube well-based, small PWSSs in Morinda block: disruption of service on account of a decline in four single-village schemes and 18 multi-village tube well yields or erratic power supplies. This schemes, each covering two to four villages. was conceded by DWSS, as tube well yields had The schemes cover 51 of 71 villages in Morinda been tested for sustainability; 40 The present rural population of Morinda block is estimated to be 70,000. As per Census 2001, the rural population of Morinda block was 63,696; the present population has been estimated by applying the state rural average growth rate projected by Census of India in 2006. The number of households was estimated by dividing the estimated population by the average household size (6.1) as per Census 2001. 41 Only one scheme has a design capacity of 70 lpcd. 42 Prior experience of either three similar projects of contract value not less than Rs. 20 lakh each or two similar projects of contract value not less than Rs. 25 lakh each or one similar project of contract value not less than Rs. 40 lakh. Engaging Non-state 40 Providers in Rural Water Supply Services They should not be held responsible for any n Supply of water to each village twice a day n major damage to machinery, structures, etc. as per the timings agreed with DWSS Costs of repairing these should be borne by and GPWSSCs; DWSS. DWSS accepted this; O&M of pumping machinery, excluding n The requirements of performance security (5 n replacement of pumps; percent of contract value, refundable a month Repair of pipelines and leakages; n after contract completion) and retention money (another 5 percent of contract value deducted Provision of all necessary spares n in instalments from running bills, refundable and consumables; six months after contract completion) should Regular chlorination at the water works n be reconsidered. DWSS declined to address and disinfection of OHSRs; this as such provisions are considered standard practice; and Checking illegal water use and reporting it to n GPWSSCs (in actual practice, this was reported Payments should be made by the fifth day n to DWSS operational staff); and of each month so that pay-day (seventh day of each month) obligations could be met; the Deployment of necessary staff. n bidding documents provided for payments in equal monthly instalments by the 15th day of In discharging these obligations, the contractor each month. This was changed, and the final is to abide by all O&M procedures of DWSS, contract provides for payments by the 7th day applicable labour laws and safety regulations, of the subsequent month. ensure equitable water distribution, and maintain appropriate records. Following DWSS’s response, the two technically compliant bidders submitted fresh cost estimates DWSS is responsible for revenue collection from and the contract was awarded for a period of one consumers and payment of electricity charges. year beginning 1 December 2009, to Envirocure The latter function was retained by DWSS due to Projects Private Limited43 at a contract value of apprehensions about service disruptions in the Rs. 4.5 million, payable in equal monthly instalments. event of non-payment of charges by the contractor, and concerns about compromising the contractor’s iii. Key Contract Terms liquidity situation. Though not stipulated in There are three main stakeholders, namely, the contract, the private contractor is informally the private contractor, DWSS and GPWSSCs involved in the revenue collection function. Water (representing the villages). bills are generated at the sub-divisional offices of The obligations of the contractor extend to all DWSS, and are taken by the contractor to scheme aspects of O&M, including: locations. Consumers collect the bills from the 43 Envirocure, a private limited company with a reported annual turnover of about Rs. 200 million, began operations in 1990 and is primarily engaged in the execution of civil, electrical and mechanical works for water and sanitation infrastructure in Punjab. It has recently extended its work to other states. 41 contractor and most prefer to pay directly to the payable if works are not maintained to the Executive contractor who, in turn, deposits the collections Engineer’s satisfaction. Moreover, the contractor is to at sub-divisional offices, collects receipts and provide mobile telephone numbers of key staff and distributes them at the scheme locations. maintain a complaints register at the water works. All disputes are to be referred to the Superintending The GPWSSC is to advise the contractor on matters Engineer whose decision, acting as the arbitrator, is of supply timings, oversee the contractor’s working final in respect of disputes referred to her/him. and point to issues that need redress. The release of contractor’s payments is subject to certification Each scheme has a dedicated pump operator and, in of satisfactory service by the GPWSSCs. addition, a centralised mobile team, equipped with essential spares and tools, that serves all schemes. Further, the number and qualifications of staff to The team comprises three supervisors, an electrician be deployed is to be decided in discussion with and a fitter. DWSS, GPs and GPWSSCs. Preference is to be given to local residents for the position of pump The initial contract between DWSS and Envirocure operators. In addition, monthly salary payment is concluded on 30 November 2010 and was extended to be made by cheque in the presence of a for a period of three months. DWSS did not exercise DWSS representative. the option, available under the contract, of extending the contract for a period of two to three years. The contractor is also the authorised DWSS According to discussions with the private contractor, plumber for installing new house connections to this can be attributed largely to resistance from consumers who have received DWSS sanction for the department staff union, which opposed the installation. Rs. 100 ($1.85) per house connection initiative. The DWSS staff union was also perceived is payable to the contractor for this service. Prior as instrumental in instigating pump operators to handover of the infrastructure, the contractor engaged by the contractor to agitate for additional was required to identify the number of legal remuneration for extra hours put in for pumping connections44 and disconnect illegal connections. when electricity supply was erratic. Penalties are payable by the contractor for failure iv. Impact and Observations to provide services. Thus: (a) if water supply is The experience in Morinda has contributed to not restored within eight hours for reasons other encouraging results in terms of improvements in than power failure, the contractor is penalised service quality and cost savings. Rs. 500 per eight hours; (b) where a replacement pump is needed but not made available within 48 n Improved services and increase in house hours, the contractor is penalised at Rs. 2,000 per connections: Among the major benefits reported day; (c) a penalty of Rs. 200 per day per shift is by community representatives are more regular payable in instances of absence of workers from pumping and supplies, prompt restoration of duty; and (d) a penalty of Rs. 2,000 per month is supplies after pump motor damage and faster 44 The verification process revealed that there were 3,516 legal connections in the villages covered by the contract. Engaging Non-state 42 Providers in Rural Water Supply Services response to complaints of pipeline damage/ which has declined to Rs. 4.5 million or leakage. These are reflected in: $83,333 (including repairs and consumables) after outsourcing (Table 9). In addition, there n An increase in the number of house connections are as yet un-estimated savings on account (720 numbers, raising the proportion of of reduced electricity charges (due to lower households with house connections in the pumping requirements following timely service area from 61 to 74 percent); repair of pipeline leakages) and spend on n A reported decline in the number of major repairs. breakdowns (from 16 during the period 1 April 2009–31 March 2010 to nine over the period However, despite these savings, revenue demand 1 April–31 December 2010); and from consumers represents barely half the O&M costs and, even with the high revenue collection n An increase in the duration of water supply efficiencies in the area, existing tariff rates45 (from two to three hours prior to outsourcing to would have to be doubled at current levels of four to five hours). house connections if communities are to meet n Direct cost savings: Prior to outsourcing, DWSS O&M costs entirely. Assuming 100 percent house was incurring an annual cost of about Rs. 6.2 connections, meeting O&M costs entirely from million or $114,815 (excluding repairs and communities would still require a 1.7 times consumables) for the O&M of the 22 schemes, increase in tariff. Table 9: Comparison of Annual O&M Expenditure Prior and Post Outsourcing EXPENDITURE  Prior to Outsourcing Post Outsourcing Salaries (Rs. lakh) 62.00 25.20 Repairs and consumables (Rs. lakh)  N.A. 20.00 Electricity costs (Rs. lakh) 25.00 25.00 Total expenditure for O&M 87.00 70.20 ESTIMATED REVENUE DEMAND No. of connections 3,516 4,236 Monthly tariff–house connections only (Rs.) 70 70 Revenue demand (Rs. lakh) 29.53 35.58 % of O&M expenditure addressed by 33.9% 50.7% revenue demand Source: DWSS representatives; Envirocure representative. 45 As a part of its policy to graduate towards full O&M cost recovery for RWSSs, the Government of Punjab has undertaken periodic revision of tariffs (about once in two years) from 2003-04 onwards. In 2003-04, the water supply tariff for house connections stood at Rs. 50 for schemes with design capacity of 40 lpcd and Rs. 60 for schemes with design capacity of 70 lpcd. These have currently been revised to Rs. 70 per month for schemes with design capacity of 40 lpcd. There are no charges for stand posts. 43 Among the contract conditions that are believed to n The explicit requirement for the contractor to have resulted in positive change are: maintain a stock of standby pumps, which has meant that replacement of failed motors, often n The requirement to engage local staff as pump the most significant cause of long disruptions in operators, which has reduced absenteeism and service, is undertaken immediately; permits pumping at odd hours if necessitated by erratic power supplies; n The explicit mention of standards of services and associated timelines and penalties, which n The incentive provided to the contractor has ensured that the contractor is clear of service for rendering plumbing services for new obligations; and connections in the form of a service charge of Rs. 100/connection, which has prompted the n The need for the contractor to obtain a certification contractor to promote house connections. It is of satisfactory services from the GPWSSCs before significant that most of the new connections release of payment, which has been a critical installed during the contract period consisted of instrument in ensuring consumer accountability regularisation of existing illegal connections; and responsive services. Engaging Non-state 44 Providers in Rural Water Supply Services In addition, two Government of Punjab decisions measures such as complaints registers and have further contributed to improvements: payments contingent upon community certification of services—can contribute to n The reduction in house connection charges from desired results; Rs. 1,000 to Rs. 300 for Below the Poverty Line and Scheduled Caste households and Rs. 500 for n Clarity on the scope of work and liability for other households; and service disruptions on account of external factors (such as source sustainability or erratic n The introduction of a grievance redressal power supply), the quality of infrastructure and system in December 2009, which allows the terms of payment impact levels of private consumers to register their complaints through sector interest; a toll-free number (advertised at each water works). The complaint details are transmitted n There is potential for cost savings with O&M to the concerned staff at DWSS through a outsourcing undertaken through a transparent Short Messaging Service-based system. The bidding process. However, continued state system also allows for escalation of unresolved support may be needed to bridge even the complaints to senior officials. reduced O&M costs, unless accompanied by further attempts at introducing efficiencies While the contracting initiative in Morinda was through a mix of broader private sector not continued, DWSS initiated a larger contract engagement and tariff increases; for O&M services in Bhunerheri block in Patiala district, which further validated the gains derived n The size of the contract package is critical: from the model. Details are captured in Box 1. smaller contract packages may not draw sufficient operator interest while larger The key observations from the experience in contract packages may not always be Morinda and subsequently in Bhunerheri can be possible, particularly if the ground has to be summarised as follows: cleared in terms of staff relocation (as was the case in Morinda). About 20 small PWSSs n Contracting terms that emphasise engagement (approximately 5,000-6,000 households; 35,000 of local staff; contain incentives, penalties population) is considered optimal by both and indicators for specified services; require DWSS and Envirocure representatives;46 preparatory measures for major causes of prolonged service disruption; and ensure n Challenges can be anticipated from staff unions. accountability to the community—through In Morinda, despite staff relocation undertaken 46 A broad breakdown of Envirocure’s costs suggests that the bulk (about 70-75 percent) of the costs incurred cannot be allocated to specific schemes and can be justified only at this scale. 45 Box 1: Contracting O&M of RWSSs in Bhunerheri Block, Patiala District Following the initiative in Morinda, in January 2011, the O&M of 51 RWSSs, covering 104 villages (13,882 households) in Bhunerheri block, was contracted to a private operator (Envirocure Projects Private Limited) through a competitive bid, for a period of one year. The contract value, payable in 12 equal instalments, was Rs. 103.25 lakh. The key contract terms were identical to those of the contract in Morinda block. All schemes are tube well-based small PWSSs, and 94 of 104 schemes were established post 2005. Only 2,418 household connections (17.41 percent) were reported at the inception of the contract. There are no stand posts. The following observations were made at the end of the contract period: n The number of house connections increased by over 50 percent during the tenure of the contract —from 2,418 in December 2010 to 3,720 in December 2011. Most of this increase is attributed to regularisation of illegal connections. The village-level pump operator played a key role in collecting upfront connection fees and undertaking the required paperwork with the local DWSS office towards approval of new connections. However, the overall percentage of house connections remained low, at 26.8 percent in December 2011; n Improved response time in case of breakdowns; n Based on experience gained from the Morinda contract, the private operator put in place a team of ‘reliever’ operators to cover for pumping requirements at odd hours due to power outages; and n The contracting arrangement does not seem to have resulted in cost savings for DWSS. In January 2012, the single contract for the entire block was discontinued, and O&M of individual water supply schemes has been handed over to individual ‘C’ class (small) private contractors empanelled with DWSS. This may be attributed to resistance to contracting by DWSS staff, as well as lobbying by small contractors. While the impact on services is yet to be evaluated, the initiative has reportedly led to a reduction in costs incurred. Source: Interactions with private operator, officials and frontline staff of DWSS, pump operators and households in two villages—Behal and Kathgarh—which were covered by the contract. Engaging Non-state 46 Providers in Rural Water Supply Services prior to the outsourcing initiative, the DWSS resource management through improved staff union was perceived as the main cause for tracking of pumping volumes and leakages, discontinuation of the contract. Communities and remunerating contractors based on a were more supportive; while initially sceptical, share of the savings achieved in volumes of they were inclined to see how the experiment extraction and leakages. (Currently, only hours would fare; of pumping are tracked.) Metering, however, would be critical for this. The policy thrust n A supportive leadership and consumer-friendly on enhancing house connection coverage measures at the state level are important in in the state further strengthens the case for supporting the achievement of desired results. metering, and the Government of Punjab, in its In both cases, the encouraging stance of the Draft State Rural Water Supply Policy (2012), departmental leadership, and the decision has proposed that all new domestic water of the state government to reduce house connections must be metered with immediate connection charges and introduce a toll-free effect. Besides encouraging efficient resource telephone-based complaints redressal system, management, metering may ensure that water have played a key role in spurring house consumption of, and consequent revenue connections and ensuring responsive contractor demand from, consumers is more accurately assessed and tariff rates are established on a services; and sound base, without passing on the burden n Given the initially encouraging results in of inefficiencies to consumers and leading Morinda and Bhunerheri, there may be to potentially more manageable levels of further scope for incentivising better water state support. 47 Key Learnings and Takeaways Taking an integrated approach to the country’s rural In all cases, responsibility or accountability for water supply issues, GoI’s NRDWP focusses on the service provision continues to vest with the GP/ key aspects of source and system sustainability. department; only the actual activities associated System sustainability is inextricably linked to with provision are outsourced. both technical and financial aspects of operations of RWSSs. Given the differing needs and requirements of communities across size, class, region/state, A key plank of NRDWP’s approach is the devolution scheme type and specific local circumstance, the of O&M functions to GPs, through the formation of adoption and facilitation of several models may be VWSCs. This, however, has had mixed results, and more effective in ensuring a higher rate of success the O&M of existing infrastructure has suffered due in meeting the objectives of sustainable O&M. to lack of technical staff and expertise within GPs as Delegation of O&M through a contracted entity well as the reluctance, among both GPs and PHEDs, (Morinda, Punjab) may be a viable option in select to introduce and collect user charges. cases whereas empowering VWSCs as independent entities may be suitable in others (Chinchali, The case studies in this report document emerging Karnataka) and SHGs may be appropriate in initiatives in India that have looked at alternate still other contexts. In all cases, sustainable and options to address some of these issues. While professional (technical and financial) management the drivers instrumental in the adoption of such of O&M, whether through the VWSC or a approaches have been different in each case, the contracted entity, remains the objective. studies demonstrate that non-state providers may more effectively be able to undertake functions The profile of the potential operator in RWS that are central to the sustainability of rural water services may vary significantly—ranging from supply systems than GPs or VWSCs, because the societies and CBOs operating on a profit basis latter may be swayed by external considerations. to individuals (plumbers), small firms and local Thus, in both Chinchali (Karnataka) and contractors (Morinda, Punjab). Business sense, Khambegaon (Maharashtra), regular and efficient reasonable investment capacity, skill at managing collection of water charges could be ensured; in relations with local government bodies, and ability Morinda and Bhunerheri (Punjab), a significant to work closely with communities47 are common number of illegal connections could be legalised requisites. Contracts would thus benefit from in a relatively short period. These objectives also opening up to a wide profile of potential operators, constituted the rationale for engaging with by keeping bid processes and contract terms the entities. reasonably simple. 47 Locally-based firms and individuals have an advantage. Engaging Non-state 48 Providers in Rural Water Supply Services While the initiatives documented are still very Metering facilitates a record of actual limited in spread and number, the study throws consumption, and hence cost of provision to be up some lessons, which point to measures required maintained, particularly in schemes with a large to ensure the success of such initiatives, regardless segment of house connections. of the option chosen or the operator profile. These include: A clearly-defined policy/guidance, detailing the modalities of cost recovery and maintenance Financial sustainability of small PWSSs is through a combination of water taxes and state difficult to establish in a context where billing grants, would boost the confidence of non-state is undertaken on a flat rate basis. While all actors, and further deepen their meaningful schemes studied aimed at supply through engagement. An accurate determination of the house connections, none had metering. In such costs involved, and a strategy for meeting them a situation, cost recovery is possible only where would allow adequate funds to be earmarked in hours of supply, and hence pumping volumes, order that: are limited. Therefore, both in Khambegaon and Chinchali, daily supply is limited to one hour, and (a) Service standards may be specified; operational expenditure is fully recovered through (b) Assets may be maintained at required/agreed revenue collections (excluding grants).48 In both levels; and cases, a fund for repairs and replacements, and/or future expansion is also being maintained. (c) Strong performance incentives may be integrated in agreements with non-state providers In Punjab, where daily supply is provided for to reduce costs further. three or four hours, collections barely meet 50 percent of estimated expenditure, reflecting This would allow a gradual steering of RWSSs higher consumption and expenditure. towards better service delivery as well as Table 10: Household Connections, Tariffs and Expenditure/Revenue Demand in Three Study Schemes Case Number and % of Tariff (Rs./Household Expenditure/ Household Connections Connection/Month) Revenue Demand (*) Khambegaon (2008-09) 157 (91%) 30 0.66 Chinchali (2010-11) 900 (21%) 60 0.99 Punjab (post outsourcing) 4,236 (74%) 70 1.97 (*) excluding government grants, amounts maintained in funds for replacement, expansion, etc. Although it is difficult to assess whether systems are being maintained adequately, that is, maintenance costs are 48 not under-reflected. 49 greater financial sustainability, with regard to achievement of clearly identified and stated both operations and asset replacement; it would objectives will serve to facilitate performance. also allow alternate sources of finance (lending For example, in Morinda, Punjab, the operator institutions) to be tapped. was provided a cash incentive for each house connection added, with the objective of reducing There is need for capacity building of all illegal use of water and enhancing revenues. stakeholders, including households and GPs so Within a year, a 20 percent rise in household that they may understand and support the mandate connections and a concomitant increase in of the operators; and the operators themselves, to revenues were achieved. equip them with essential technical and financial skills. The failure of the SHGs is, in part, due to the Sustainability of the arrangement is inextricably failure to maintain simple accounts. linked to the extent of community buy-in and involvement. Thus, the SHGs were most Even for the management of small systems, effective in the two villages where they enjoyed contractual relationships must be formalised the support of both the GP and households. in order to be effective, and there is a need to On the other hand, arrangements failed where clearly define the roles and responsibilities of all stakeholders (including the community all stakeholders. Thus, in the case of Chinchali, and other village functionaries) had not been Karnataka, the society was able to perform its adequately involved and informed of the functions with greater ease and effectiveness than decision to hand over the O&M of RWSSs to the VWSC of the same composition, having been women’s groups. empowered through an MoU that: (a) established its identity distinct from the GP; and (b) clearly stated Similarly, in Morinda, Punjab, communities its mandate and relationship with the GP. In this were required to certify satisfactory performance case, both institutional location of the function prior to release of operator payments. This key and allocation of appropriate authority to carry involvement ensured operator responsiveness out the mandate have contributed to more to the community’s felt needs, and established sustainable operations. downward accountability. In Chinchali, Karnataka, the society is required to share details On the other hand, the lack of clear agreement— of revenue and expenditure statements on an and adequate information to households regarding annual basis with the community, ensuring that the arrangement—significantly hampered the it is informed and engaged on a regular basis. work of SHGs in Surangali village in Jalna district, Maharashtra, as households were unwilling to pay A supportive leadership and political will are user charges to SHG members. required to address the resistance of existing department staff and other vested interests. Aligning incentives to objectives facilitates In Morinda, Punjab, the departmental staff performance. In the simplest contracts, effective union was perceived as the main cause for incentives that are in alignment with the discontinuation of the contract. Engaging Non-state 50 Providers in Rural Water Supply Services 51 Annex I: Evolution of Government of India’s Programmes in the Rural Water Sector The first national water supply and sanitation programme was introduced under the first Five Year Plan (1951-56) as a part of GoI’s health plan. In order to address problems related to rural water supply and sanitation, the state governments gradually built up their public health engineering systems. However, a majority of the RWSSs were being implemented in easily accessible villages while remote villages continued to face severe water scarcity. In order to accelerate the pace of coverage of remote and inaccessible villages, GoI introduced the Accelerated Rural Water Supply Programme (ARWSP) in 1972-73. At this stage, the major thrust of RWS sector development was to “ensure provision of adequate drinking water supply to rural community through a centralised public health engineering system�. The ARWSP was a first major push by GoI to boost rural water supply under which it provided full grant to state governments and Union Territories (UTs) for implementing water supply schemes in problem villages. The entire programme was provided a mission approach with the creation of the National Drinking Water Mission in 1986. This was renamed as the Rajiv Gandhi National Drinking Water Mission (RGNDWM) in 1991. With the launching of the technology mission, the focus shifted towards tackling issues related to water quality, providing appropriate technology interventions, support for human resource development and other related activities. The Mission issued comprehensive guidelines for ARWSP (1986), helped formulate National Water Policies (1987 and 2002) and introduced the Sector Reform Project in 1999. The Sector Reform Project was focussed on involving communities in planning, implementation and management of RWSSs. With this, it became the world’s largest government-sponsored, demand-based and participatory drinking water supply programme, initially implemented in 67 districts across 26 states on a pilot basis. The SRP was scaled up in the form of Swajaldhara in December 2002 with the objective of covering the entire country by the end of the 10th Five Year Plan. Community participation was sought through 10 percent contribution to the total capital cost and complete responsibility. The major challenges in the rural water supply sector identified during the 11th Five Year Plan included ensuring sustainability of water sources and systems; coverage of a large number of habitations that were currently uncovered/partially covered; water quality issues; and financing O&M on an equitable basis. Given this background, MDWS came out with modified ARWSP guidelines in the form of NRDWP on 1 April 2009. For the first time, in a major shift from habitation-based water supply norms adopted so far, the concept of drinking water security was introduced in the NRDWP guidelines. The major emphasis in the sector currently is on ensuring sustainability of water availability in terms of potability, adequacy, convenience, affordability and equity while also adopting a decentralised approach involving PRIs and community organisations. Adequate flexibility is afforded to the states/UTs to incorporate Engaging Non-state 52 Providers in Rural Water Supply Services these principles, taking into account all aspects of the sustainability of the source, system, finance and management of the drinking water supply infrastructure. Investments in the Rural Drinking Water Sector While provision of rural water supply is primarily the responsibility of state governments, the central government contributes a significant part of the programme funds for this sector. The total investment in the rural drinking water sector across the Five Year Plans is Rs. 158,272 crore. Of this, 46 percent has come from the central government and 54 percent is the contribution from state governments. The funds made available by GoI have been increasing in absolute terms (from Rs. 34 crore in the fourth Five Year Plan to Rs 39,490 crore in the 11th). GoI’s share of the overall investment has also been increasing from 14 percent in the fourth Five Year Plan to 44.63 percent in the 11th Five Year Plan. Table 11: Investments made/proposed in Rural Drinking Water Sector by Central Government and State Governments under the Five Year Plans (1951-2012)49 Plan period Centre State   Investments % Investments % Total (Rs. crore) (Rs. crore) (Rs. crore) First (1951-56) 0 0 3.00 100.00 3.00 Second (1956-61) 0 0 30.00 100.00 30.00 Third (1961-66) 0 0 48.00 100.00 48.00 Fourth (1969-74) 34.10 14.09 208.00 85.91 242.10 Fifth (1974-79) 157.17 31.11 348.00 68.89 505.17 Sixth (1980-85) 895.38 36.91 1530.17 63.09 2425.55 Seventh (1985-90) 1905.64 43.54 2471.53 56.46 4377.17 Annual Plan (1990-91) 410.54 40.79 595.85 59.21 1006.39 Annual Plan (1991-92) 644.49 48.20 692.54 51.80 1337.03 Eighth (1992-97) 4139.74 44.88 5084.44 55.12 9224.18 Ninth (1997-2002) 8454.57 43.97 10773.11 56.03 19227.68 10th (2002-07) 16254.00 51.84 15102.00 48.16 31356.00 11th (2007-12) 39490.00 44.63 49000.00 55.37 88490.00 Total (1-11th) 72385.63 45.73 85886.64 54.27 158272.27 49 Source: Mid-term Assessment of the 11th Five Year Plan. 53 Annex 2: List of Officials Interviewed for the Case Studies 1. Maharashtra Case Study Elected representatives at Utchat, Surangali and Kambare • Deepak More, Sarpanch, Utchat GP • Sanjeev Patil, Ex Sarpanch, Surangali • Vikas Sheru Barate, Ex Sarpanch, Kambare Members of VWSCs • Sushama Deepak More, Member Secretary of VWSC, Utchat and President of Samruddhi Bachat Gat • Prakash More, President of VWSC, Utchat • Ravindra Budhaji Pawar, Ex Deputy Sarpanch and Ex Chairman of VWSC, Khambare • Shubhangi Bhoir, GP Member and Member Secretary of the Mahila Mandal, Khambare Other GP-level officials • Ramkrishna Koli, Gram Sevak, Utchat GP • Eknath Barad, GP peon and substitute water man, Surangali • Amol Kadam, Gram Sevek Officials at district level • Jyoti Thakerey, Member, Zila Parishad, Thane • Dnyaneshwar Wankhede, resident of the village and representative of SEWA, a non-governmental organisation from Ahmedabad SHG members • Chitra Khonde, President of Kashi Vishweshwraya Bachat Gat, Surangali • Pragati Prakash Bhoir, President of the Mahila Mandal, Khambare • Kishor Bhoir, water man appointed by the Mahila Mandal, Khambare Community representatives and households in the villages of Khambegaon, Khambare, Utchat and Surangali Engaging Non-state 54 Providers in Rural Water Supply Services 2. Chinchali Case Study • Lakkannavar, District Support Unit, Belgaum, World Bank-supported Jalnirmal Project 3. Morinda Case Study • Representatives of DWSS, Government of Punjab: o Daljeet Singh Bains, Executive Engineer o L.K. Kauldhar, Chief Engineer o N.K. Dhir, Superintending Engineer o Praduyman Singh, Junior Engineer o M. Ravi Kant, Sub-divisional Engineer • P.K. Gupta, Director, Envirocure Projects Private Limited • Community representatives: o Members of GPWSSCs in two villages—Chalaki and Doom Chheri 4. Patiala Case Study • Representatives of DWSS, Government of Punjab: o Sanjay Kumar, Secretary o L.K. Kauldhar, Chief Engineer o P. S. Bhatti, Superintending Engineer, WSS Circle—Patiala o Jasbir Singh Aujla, Executive Engineer, WSS Division No. 2, Patiala o Seema Sohal, Information, Education and Communication Specialist, Punjab Rural Water Supply and Sanitation Programme • P.K. Gupta, Director, Envirocure Projects Private Limited • Community representatives: o Households in two villages—Behal and Kathgarh 55 Annex 3: Agreement between GP and Sailani Baba SHG for Operations and Maintenance of Piped Water Supply Scheme at Khambegaon Village, Maharashtra Party receiving the agreement: Chairman Secretary Rural Water Supply & Hygiene Committee, Jalswarajya Project, Khambegaon Tehsil Purna, Dist. Parbhani Party writing the agreement: Chairman Secretary Sailani Baba Women’s Saving Group Tehsil Purna, Dist. Parbhani We, the Chairman and Secretary, Sailani Baba Women’s Saving Group, Khambegaon, write this agreement that as per the decision made in the Gram Sabha on 1 May 2007, we are ready to take over the piped water supply scheme, which was completed under Jalswarajya Project, for maintenance and repairs. We are making this agreement according to the following terms and conditions passed in the Gram Sabha: A. 75% of the total water tax collected will be retained by the group and 25% amount will be given to the Gram Panchayat. B. Water tax will be Rs. 30 per month and connection deposit will be Rs. 100. C. The complete maintenance and repair work will be under the group, which will include the following: 1. Paying the annual electricity bill 2. The salary of Jal Sewak 3. Purchasing and regularly using TCL powder 4. Maintenance and repair of lift pipe and distribution system 5. Ensuring water supply to the village at proper pressure 6. Collecting water tax in the village 7. Carrying out minor repairs immediately so that water supply is not interrupted 8. Keeping all water tax collection documents up-to-date Engaging Non-state 56 Providers in Rural Water Supply Services The said agreement shall come into effect from 01/07/2007 (dd/mm/yyyy). We hereby write the agreement that under the terms and conditions mentioned above, we will undertake the complete water tax collection and maintenance and repair work for the village water supply and ensure that the villagers are supplied pure and clean water regularly. Signatories: • Chairman Secretary, Water Supply & Hygiene Committee, Jalswarajya Project, Tehsil Purna, Dist. Parbhani • Chairman Secretary, Women’s Empowerment Committee, Jalswarajya Project • Chairman Secretary, Sailani Baba Women’s Saving Group, Tehsil Purna, Dist. Parbhani • Sarpanch, Gram Panchayat, Khambegaon, Tehsil Purna, Dist. Parbhani 57 Annex 4: Memorandum of Understanding between GP and Krishna Water Supply and Rural Development Society for Operations and Maintenance of Drinking Water Supply Scheme Agreement for the outsourcing of management of drinking water supply scheme Memorandum of Understanding between the above-mentioned institutions regarding the handing over of the management of water supply scheme by the Gram Panchayat of Chinchali as per the resolution passed by the GP dated……..; with resolution nr…..; with the following terms and conditions: Details of the assets created in the village under different programmes/schemes by the Government are as listed below: 1. Over Head Reservoirs i. OHSR of 2.5 lakh litres capacity (1 nr) ii. OHSR of 3.5 lakh litres capacity (1 nr) iii. OHSR of 3.0 lakh litres capacity (1 nr) iv. OHSR of 3.0 lakh litres capacity (1 nr) 2. Water Treatment Plant 1. Raw water tank 2. Slow sand filter with storage tank 3. Clean/safe water reservoir 4. Pump house with motors of 10 HP, 35 HP and 7.5 HP 3. Jack well with 45 HP pump near Krishna River 4. Raising main and distribution lines The above-mentioned assets/facilities have been handed over to Krishna Water Supply and Rural Development Society for operations and maintenance for a three-year period, with the following terms and conditions: General information/conditions for the community and Society • Households shall submit an application for connection with the connection fee as prescribed; and the connection fee collected shall be kept in the Fixed Deposit (FD) account. Approval of the GP is necessary for any new connection. Engaging Non-state 58 Providers in Rural Water Supply Services • The committee shall decide on sanctioning of the connection based on the scheme capacity. Once the sanction is accorded the connection should be provided only by the authorised plumber/water person fixed by the committee/Society. • House connection: The connection will be treated as a house connection only if someone lives in the house. Otherwise it will be treated as public tap use (in case of migration). Technical details • House connections shall not be given from the raising main in any circumstance • All connections shall be only half-inch size • All taps should be fixed at 0.5 feet height from the ground level • Excess water/water spilled over shall not be allowed to flow into the roads (i.e., waste water should be properly drained out) Checks and verifications • All house connections should be accessible to the committee/Society or its representatives to inspect/ check as and when required. The households should cooperate in this matter. Use and disuse of the facilities • The house connections/taps provided shall not be tampered with/altered at any point in time • No unauthorised operations shall be allowed at any point in time. Only authorised persons shall operate the systems • No one should damage the public stand post or hand pumps. Washing cattle/clothes near the water points is prohibited • No one shall quarrel/fight near the hand pumps/public stand posts. Everyone should stand in line in case of a rush. A household can fetch only two pots of water at a time • Drinking water should not be used for construction work/gardening, etc. • No one should waste water intentionally or unintentionally. Taps should be closed immediately after drawing water Prohibitions/restricted activities • Establishing illegal connections without the permission of the GP and VWSC • Tampering of house connections (size of the pipes/saddle, etc.) • Damaging of any facilities/infrastructure related to the water supply scheme • Wastage of water intentionally or unintentionally • Usage of drinking water for commercial/gardening activities • Any activities affecting the public health • Violating rules, which may lead to disputes with respect to water supply 59 Functions of the Society (Operator) • Operations, repairs and maintenance of the water supply scheme and supply of quality water regularly as per the time fixed. In case of the major repairs, the GP shall provide assistance • Revision of water tariff based on the requirement to meet the expenditure for providing sufficient water supply • Preparing the annual O&M budget by March every year and submitting the same for the approval of the GP and the recovery of water tariff • All repairs should be attended to within 24 hours • Water supply connections should be given as per specifications under the supervision of the technical person from the operator’s side • Money collected as one-time connection fee should be kept in fixed deposits (FDs), without spending on O&M. However the interest earned on the FDs may be used for O&M purposes. Further, the FD shall be used as bank guarantee for raising any loans for expansions/repairs, etc. • All maintenance activities such as backwashing of the Water Treatment Plant, change of filter media, cleaning of storage reservoirs, etc., should be undertaken as per specifications/requirements • All wages, electricity bills should be paid regularly (every month) • Details regarding the income and expenditure should be submitted to GP every year and shared among the community once in a year • Extension of distribution line to facilitate new house connections, as required • Water quality testing on a regular basis (twice a year) Functions of GP • GP is the owner of all the water supply assets • Responsible for according permissions for any new water connections • Approving, with necessary resolutions, revisions and fixing of tariff as and when necessary, with inputs from the Operator/Society • Following the guidelines/circulars issued by Government of Karnataka Both GP and the Society have agreed to manage the water supply scheme in Chinchali as per the terms and conditions mentioned above. President/Secretary President/Secretary Gram Panchayat, Chinchali Krishna Water Supply and Rural Development Society Signature of the GP members Signatures of the members of the Society Engaging Non-state 60 Providers in Rural Water Supply Services Annex 5: Special Terms and Conditions of the Contract for Operations and Maintenance for Rural Water Supply Schemes in Block Morinda, District Ropar 1. First Party (Engineer-in-charge) authorises the Second Party (Contractor) to undertake full responsibility for the operations and maintenance of various rural water supply schemes in the block Morinda, District Ropar. These Rural Water Supply Schemes are functional entities. Necessary technical data for each of the schemes covered under the contract has been attached with this form. For all purposes in the contract, the operations and maintenance of any RWSS will mean as under: “In an engineering sense, operations refer to hourly and daily operations of the components of a system such as plant, machinery, equipment, control valves, etc., which is done by an operator or his assistant. This is routine work. The term maintenance is defined as the act of keeping the plant, equipment, structures and other related facilities in optimum working order. Maintenance includes preventive maintenance or corrective maintenance, mechanical adjustment, repairs and planned maintenance.� 2. First Party (Engineer-in-charge)/DWSS will collect the revenue/user charges from the consumers in various villages covered under these schemes and deposit the same. 3. The contractor will undertake that water supply service is provided in a most satisfying way to all the villages covered under the scheme depending upon the availability of power. 4. The contractor will ensure near equitable distribution of water in various villages under the scheme, and also in the same village for difference households, by operation of sluice valves, etc., and setting variable supply timings. He will procure in writing from the representatives of the village/GPWSSC, in a register kept for this purpose every fortnight, a certificate in token of satisfactory water supply services in that locality/village. The said register will be produced by him in the office while submitting monthly bill for payment. 5. The contractor should strictly follow the procedure (Department rules) for operations and maintenance of RWS schemes as specified in the provisions under the act and rules and matters incidental thereto. 6. The contractor shall work within the framework of and be bound by all the provisions of the Rules and Regulations for the purpose of levy, assessment and repair of pipelines, structures, machinery, etc., as well as supervision of water works site and operations and maintenance of the various components of the water works and for all other works contingent thereto. 7. The Engineer-in-charge (Executive Engineer) or any officer appointed on his behalf, shall have the overall right, authority, control and supervision over the original work with a view to ensure that the schemes have been running satisfactorily without any hindrance or harassment to the public. The officer/officials of the Department shall also have the right and authority to inspect and check the schemes. The instructions/orders given by the Executive Engineer/officers from time to time in this regard shall be promptly complied by the contractor. 8. The contractor shall abide by the instructions and orders of the Executive Engineer and his subordinate officers during the period of contract. 61 9. Electricity Bills: The electricity charges for running of rural water supply scheme shall be borne by the Department. However the contractor will be responsible for (i) Receiving electricity bilsl at water works site from Punjab State Electricity Board (PSEB). (ii) Sending the electricity bill in the Sub-Division Office for making timely payment to PSED. The contractor will be held responsible for any sundry charges due to power factor; faulty shunt capacitor or any other undue charges levied by PSEB due to improper maintenance of electrical fittings and the recovery for the same will be made from the contractor’s monthly bill. 10. It will be ensured by the contractor that no electric connection of any water supply scheme gets disconnected by the PSEB due to non-payment of electricity bill and the water supply is not disrupted due to non-payment of electricity charges. 11. Water connections: The contractor will be responsible to verify the number of legal water connections in the villages, which will be provided at the time of handing over the site to the contractor. The contractor will also identify illegal water connections at each scheme at the time of start of this contract. For illegal water connections, the contractor will collect information by house- to-house search and submit such lists to the Sub-Divisional Engineer. 12. The contractor will be responsible for disconnection of illegal connections, which will be disconnected by him in the presence of Sub-Divisional Engineer/Assistant Engineer of the concerned Sub-Division in the consultation with GPWSSC or Village Gram Panchayat of the concerned village with due notice for authorisation of the illegal connection as per prevalent Government Policy as applicable from time to time. 13. The contractor will act as an authorised plumber for the Department for making new water connections after due sanction from the competent authority and for issue of test report to the consumer. For making new connection and issuing of test report, the contractor will charge nominal fees of Rs. 100 from the consumer. All the material required for releasing a new water connection will be arranged by the consumer her/himself. 14. After award of contract, the contractor shall take over the scheme from the concerned Junior Engineer. The scheme will be handed over to the contractor in good running conditions AND after termination of period of contract the water supply scheme will be taken back in the same running condition. 15. The contractor will maintain the general upkeep of the contracted installation, which should look clean and aesthetic. The contractor will be responsible for the cleanliness of Pump Chamber, Staff Quarter, Machinery and the surrounding area at the water works. The contractor will maintain the greenery/plants at the water works including all the ornamental trees, other plantations, grass, hedges and flowers beds in good condition and will clear all the foreign grass and other unwanted wild matter from the lawns and other areas of the water works. The contractor will cut the grass and hedges at suitable intervals and will take care of the plantation in the best possible way. The contractor will use manure, fertilisers and limited use of insecticides/pesticides as may be required at the water works for the healthy growth of the plantation. Engaging Non-state 62 Providers in Rural Water Supply Services Contract Labour 16. The Second Party/Contractor will appoint his own employees for operations and maintenance of these schemes for rendering satisfactory services. The required manpower as and when needed shall also be deployed by the contractor. 17. Expert personnel and skilled/semi-skilled/unskilled workmen with adequate qualification and experience having appropriate level of acumen are required for the job. Such personnel/workmen/ employees are to be inducted by the contractor to carry out the job to the entire satisfaction of the Department. 18. The contractor will be at liberty to appoint any number of employees for operations and maintenance of schemes, who shall be entitled to perform all the duties and functions for the operations and maintenance of rural water schemes. The employees will be recruited in consultation with the Department and GPWSSC/Gram Panchayat and it will be preferred that employees from the same village are engaged for running the water supply scheme. For optimum utilisation, one person can be responsible for number of services. The contractor will ensure that, for all the time, at least one person remains available at the water works. The staff employed shall be approved by the Engineer-in-Charge. 19. The contractor shall furnish information about the names and addresses of all the employees employed by him to the concerned Executive Engineer, on the 1st of every month and immediately whenever there is a change in employees due to resignation, removal, etc. Minimum Wages 20. The contractor should ensure payment either equal or more than the minimum wages as notified from time to time for doing similar services by the State or Central Government. In other words, minimum wages as per the Minimum Wages Act, 1948, as revised to the skilled/unskilled workers should strictly be adhered to. The payment will be made to the workers/employees of the contractor in the presence of an authorised representative of the Department. The monthly payment is to be made on the 7th day of the successive month through an account payee cheque. 21. All other acts/rules/regulations, by-laws, orders, notifications, etc., present or future, applicable to contractors from time to time for performing the aforesaid services shall also be applicable. 22. The contractor should obtain the necessary permission that may be required for the purpose of this contract from such authorities as may be prescribed by law from time to time. 23. The contractor or his supervisor should visit the site at least once in a week or as and when required by the Department for which no extra payment will be made as they should be readily available to the Department. 24. Any act of indiscipline/misconduct/theft/pilferage on the part of any employee engaged by the contractor resulting in any loss to the Department in kind or cash will be viewed seriously and the Department will have the right to levy damages or fine and/or even terminate the contract forthwith. 63 25. It shall be binding on the contractor to ensure that the persons employed by him are clearly given to understand in writing that they will have no right or claim for absorption in the Department at any time on any grounds. They will not be in any manner servants of the Department. Any liability, arising on this account, shall be directly that of the contractor. It shall be the contractor’s responsibility to protect his employees against accidents on the work. He shall indemnify the Department against any claim for damage or for injury to persons or property resulting from and in the course of work, and also under the provisions of the Workman’s Compensation Act or any other laws. On the occurrence of any accident arising out of the works, which results in death or which is so serious as to be likely to result in death, the contractor shall, within 24 hours of such accident, report in writing to the Engineer-in-charge the facts, stating clearly and with sufficient details the circumstances of such accidents and the subsequent action taken. All other accidents on the works involving injuries to persons or damage to property other than that of contractor shall also be promptly reported to the Executive Engineer, stating clearly and with sufficient details the facts and circumstances of the accidents and the action taken. In all cases, the contractor shall indemnify the Department against all loss or damages resulting directly or indirectly in this behalf. In the event of an accident in respect of which compensation may become payable under the Workmen’s Compensation Act (VII) of 1923 or any other act including all modification thereof, whether such compensation may become payable by the contractor or by the Department as principal employer, the party No. 1 may retain whole or part of the deposit due and payable to the such sum or sums of money as may, in his opinion, be sufficient to meet such liability. On receipt of award from the Labour Commissioner in regard to quantum of compensation, the difference in amount will be adjusted. 26. The contractor shall also make adequate provision of insurance for his own employees at his own cost to cover them against the risk of accident. 27. The workers employed by the contractor can use the facilities such as staff quarter, drinking water, toilet, etc., which have been provided at the premises. However, it should be ensured that the same should be kept in hygienic condition. 28. The workers will behave in a responsible manner and will be sufficiently trained for the assigned jobs. Further, they will be helpful in running the machinery/installation in economical and efficient manner. Any worker, whose work will not be satisfactory, will be removed from the installation and a new worker will be engaged by the contractor. The final authority for assessing the worker in every respect will be Engineer-in-Charge, i.e., Executive Engineer. 29. The First Party shall not in any way be responsible to the private workers for any misconduct, negligence, etc., of the employees engaged by the contractor. The Department shall not in any way be liable to pay the contractor any compensation on this ground. Nor shall the contractor have a right to claim the transfer of his liability to the Department, on the ground of misconduct, negligence or strike of the employees engaged by the contractor. 30. If the contractor desires to execute a part of scope of maintenance contract, which are very specialised in nature, by engaging a specialised competent group he will have to obtain approval from the Department authority furnishing all credentials and requirement of the manpower strength before the Department. However, the Department reserves the right to discontinue the same at its discretion. Engaging Non-state 64 Providers in Rural Water Supply Services 31. Each worker will be issued a photo identify card which will show his name, father’s name, residential address, date of birth, qualification, etc., and it will be kept available for inspection while on duty at various installations. Photo identity cards will be signed by the contractor and counter- signed by the Executive Engineer/Sub Divisional Engineer of the Department for authentication. 32. The workers will wear khaki uniforms while on duty. Each worker will be provided two number dresses (one summer and one winter) by the contractor. 33. The contractor will be responsible for the safety of workers while working for the Department. He will provide all safety tools and equipment and will take all precautionary measures to ensure the safety of workers. 34. Responding to emergency situations: The contractor will take appropriate measures to tackle any emergency situation in case of any accident at the work site. 35. The contractor will provide the Department a contact mobile number which will be available for 24 hours for attending any emergency work for the contracted installations. Book Keeping 36. The contractor shall furnish information about the names and addresses of all the employees employed by him to the concerned Executive Engineer, on the 1st of every month and immediately whenever there is change in his employees due to resignation, removal, etc. 37. The contractor will maintain a record of daily attendance of workers at each installation separately, which he will produce with his monthly bill. The attendance record should be available at each installation for inspection by the Departmental officers any time. 38. Log books at each installation will be kept as per the format of the Department and as instructed by the Engineer-in-Charge. 39. The contractor shall maintain a record on a log book showing machinery repair record, repair of pipeline, etc., as per the operations and maintenance manual of the Department. 40. Service report and repair as well as spare changes reports shall be provided by the contractor showing the complete maintenance done on the equipment. 41. The contractor shall maintain a complaint register on every water supply scheme, so that a record of complaints is available to the Department. 42. The contractor will maintain the daily/weekly/monthly preventive maintenance schedule for the machinery as specified by the manufacturers of the machinery. 43. The following record will be maintained at site: (i) Log book showing consumption of disinfectant agents. (ii) Residual disinfectant Dose Testing Register and Water Quality Register showing the sample testing of water from various points/taps/stand posts of the village and also showing testing from various laboratories from time to time. 65 (iii) Complaint Register at complaint centre to be displayed at water works. (iv) Site Order Book for getting orders from officers of the Department. (v) Status of water supply in villages for recording fortnight certificates from GPWSSC/Panchayats/ prominent villagers. (vi) Register of Water Connections: (a) Register of legal water connections and new water connections released showing date-wise entries. (b) List of illegal water connections along with date and date of disconnection or regularisation. (vii) Service Report and repair as well as spare changes reports. 44. Scope of Work of Operation: (i) The contractor will be responsible for giving regular uninterrupted water supply to each village two times a day as per the norms of the Department. (The timings will be fixed by First Party in consultation with GPWSSC or Gram Panchayat of the village.) (ii) To provide operating staff to operate the water supply system at least 8 hours per day or as per increased hours in case of peak demand of water in summer as directed by engineers of the Department. (iii) He should be responsible for the operations and maintenance of pumping machinery, i.e., submersible sets, electrical gazettes, electrical panel, switches and the disinfection system and various civil structures at a water works. (iv) To provide all the engineering spares for carrying out all the works under the scope of this contract and providing repairing spares for all electrical equipment as and when required. (v) To supply all the consumables required for operation of the installed equipment of water supply system. Estimated quantities of chemicals and other spares required for a month and a year will be given by the contractor. The contractor will also arrange the chemicals/material required for running disinfection system for the water supply scheme, i.e., leaching powder, sodium hypochlorite, etc., and also silver electrodes required for silver ionisation equipment. (vi) To check for the status of sluice valves, air valves, reflux valve, expansion joints and to see if these are in proper working order. (vii) To check for pipe leakages and rectify the same. (viii) To check for the status of manhole cover over the storage tank and chamber covers. (ix) To inspect for any possibilities of pollution of the distribution system and storage tanks. (x) To clean and disinfect all the storage tanks (OHSR/UGSR) periodically, preferably once in a quarter. (xi) To check for any misuse/pilferage of drinking water by any person and also bring it to the notice of GPWSSC/GP. Engaging Non-state 66 Providers in Rural Water Supply Services (xii) The contractor will operate the chlorination/disinfection/silverionisation/dosing equipment pumps daily so as to maintain minimum residual chlorine/disinfectant at water works as directed by the Department. He will be responsible for daily chores required for proper and efficient working of chlorination unit. The minimum residual chlorine will be checked daily and recorded in the relevant register/book. 45. Scope of Work under Maintenance: The preventive maintenance schedule is the periodical checks and precautions by which possibilities of failures and breakdowns are minimised. Daily, periodical and annual checks as prescribed by the manufacturer will be made by the contractor. Repairs: (i) The contractor will promptly attend any breakdown/fault informed to him or noticed by him in the pump, repair or replace any part/parts of pumps so as to keep the pump in working condition. (ii) Repair of machinery, electric panel, disinfection unit and structures and repair of leakages in pipeline and specials, etc., will be got done by him within 24 hours of its breakdown. (iii) The contractor will be liable to use best quality of material available in the market duly conforming to Bureau of Indian Standards whereever applicable while undertaking the repair of machinery, electric panels and structure, etc. Water Pipelines and Pipe Network Distribution System: The contractor will promptly attend to any breakdown/repair noticed by him or informed by the Department or consumers. (i) Check for operation of sluice valves, gate valves, air valve, reflux valves, foot valves, etc. (ii) Check for any leakage, wear and tear in the water lines. (iii) All the material required for repair of pipe network will be arranged by the contractor. Breakdown 46. Care shall be taken so that the system doesn’t lead to a major breakdown. In the event of any breakdown, the same will be rectified immediately, failing which such rectification may be done at the risk and cost of the contractor. Similarly, if any breakdown takes place due to negligence of the contractor, the whole component has to be replaced/rectified to bring to the original condition immediately. 47. The contractor will promptly attend any breakdown/repair/complaint in the system noticed by him or informed by Department. He will make necessary arrangement for replacement/repairs of defective/worn-out parts and restore the system in healthy working condition. If any pipe/piece of pipe is not repairable, the same shall be replaced with a new pipe of same specifications. 67 48. The contractor will intimate any breakdown in the working of any tube well or any other installations within 2 hours to the concerned Junior Engineer. He/his workforce will make efforts to restore the running of that installation at his own level if it is possible. But if there is any major defect and cannot be rectified, its repair will be undertaken by him by installing a spare submersible set which will be kept ready by the contractor. 49. Tools and equipment required for proper operations and maintenance of the equipment and allied accessories shall be provided by the contractor without any extra costs. 50. To facilitate prompt restoration of water supply of any village, the contractor will keep the following equipment/machinery in a centralised location of that area so that the water supply can be restored in the short possible time. (i) Steel tripod. (ii) Electric/mechanical chain pulley. (iii) Pipe wrenches, nut bolts, slings, etc. (iv) Pick-up van for quick transportation of man, machinery, material and equipment. (v) A range of different submersible sets of required head. (vi) Lowering pipes of different sizes. (vii) Submersible set cables, starters, etc. 51. In the event of any breakdown in the water supply system, the contractor will be responsible for repairing and restoring the water supply in the village/villages within 24 hours otherwise he will be penalised as per the penalty clause. For Engineer-in-charge 52. Engineer-in-charge will ensure that the entire scheme to be given on contract should be in satisfactory working condition without any history of frequent breakdowns and crisis that require intensive technical supervision and manipulation. 53. Engineer-in-charge will ensure that the scheme has proper head works. 54. Engineer-in-charge will ensure that the Water Treatment Plants (WTPs) wherever existing should be of adequate capacity and in satisfactory working condition. 55. Engineer-in-charge will ensure that the storage tanks (OHSR/UGSR) should be of proper required capacity, non-leaking and in satisfactory condition. 56. Engineer-in-charge will ensure that the piping system including distribution should be in a healthy functional condition and there should be no leakage in the system. 57. Engineer-in-charge will ensure that the pumping machinery and its accessories should be in good health and working condition. Engaging Non-state 68 Providers in Rural Water Supply Services Transfer of Assets 58. A key plan and details of the scheme indicating the functional health of each component should be prepared. The details of each component such as the type of head works, the size and length of each pipeline, type, make and capacity of pumping machinery and its allied accessories, type, size and location of control valves, capacity and location of storage tanks (OHSR/UGSR) and number and location of stand posts and private water connections, which should be jointly signed by the contractor and Department officers and should be kept in the records. General Conditions 59. The contractor shall not enter into partnership or sublet, transfer and assign the contract or any part thereof in any manner whatsoever. In the event of the contractor contravening this condition, Party No. 1 shall be entitled to terminate the contract, and forfeit the entire amount of security deposit. 60. Contactor shall furnish a bank guarantee of five percent of contract amount as per the rules of any nationalised bank by way of security deposit/bank guarantee failing which the acceptance of his offer shall be liable to be cancelled at the risk and cost of the contractor and the earnest money deposited by him shall be forfeited. The said security deposit/bank guarantee will not carry any interest whatsoever. 61. The Department shall have the security deposit in the form of bank guarantee furnished by the contractor. This security deposit shall be held as security for due performance of all the terms of the contract; and in case of default on the part of the contractor to perform and observe any of the terms of conditions of the said contract; and observe any of the said covenant conditions or provisions; or in the event of termination of the contract on any ground under any clause, it shall be lawful for the Department in its absolute discretion to forfeit the whole of the security deposit or any part thereof in or towards satisfaction of any claim for any damages, if any, regarding acquaintance of bank guarantee shall be referred to Superintending Engineer (as Arbitrator) and his decision shall be final. 62. In the event of security deposit being found insufficient or if the security deposit has been wholly or partly forfeited, an amount equal to the amount within 15 days from the date of forfeiture or liquidation of whole or part of bank guarantee. 63. Upon compliance by the contractor, with all the obligations and the requirements of the contract but in any case within 30 days from the last date of the contract, except for the case in which a dispute is pending with a court, the Department shall release the bank guarantee or such part thereof as has not been forfeited or appropriated as aforesaid to the contractor. 64. In any of the following events, the First Party (Engineer-in-charge) shall have the right to terminate the contract forthwith without any notice to the contractor and to forfeit the entire security deposited without prejudice to any of the rights or remedies of the Department under the contract to claim any sum or otherwise. (a) If the contractor being the natural person/persons die/dies; or being a natural person or a partnership firm is adjudged as insolvent; or commits any act of insolvency; or being a limited company, is ordered to be wound up; or makes an arrangement with its creditors, or fails to observe any of the provisions of contract or any of the terms and conditions governing the contract or any clause of the contract. 69 (b) If the contractor commits a default and observes any of the terms of the said contract and any of the said covenants’ conditions or provisions; or in the event of default on the part of the contractor to comply with any direction pursuant to this agreement signed with the Executive Engineer or any such authority; or default by the contractor in performing the contract and carry out any obligations cast upon the contractor under the agreement. In the event of termination of contract, the entire security deposit shall stand forfeited. The Department shall in addition be also entitled to claim any loss and damage to the the water works structure and distribution pipeline. 65. In case of any dispute between the parties regarding any matter relating to this contract the matter shall be referred to the Superintending Engineer, Water Supply and Sanitation Circle, Chandigarh as Arbitrator, whose decision shall be final. Both parties agree that Superintending Engineer, Water Supply and Sanitation Circle, Chandigarh, shall be the Arbitrator and will have all powers given to an Arbitrator under the Arbitration Act as amended from time to time. 66. The legal jurisdiction for purpose of any matter in this agreement shall be Ropar District (Local Division/Sub-Division) 67. These terms and conditions shall have overriding effect over the general terms and conditions of the DNIT/Agreement. 68. The list of schemes and its technical detail has been prepared by this Department and attached with the tender form. 69. If the Department notices any misconceived alliance of the contractor with the villagers and employees of the Department and which is against the spirit of the contract agreement and the Department is earning a bad reputation for it, the contractor’s security will be forfeited and will be blacklisted for future. 70. If the contractor fails to perform various duties assigned to him for the operations and maintenance of the rural water supply schemes, he is liable to be penalised for each default separately as under: 1. In case the water supply is not restored within a maximum period of 8 hours due to any fault other than power failure, the contractor shall be penalised at the rate of Rs. 500 per 8 hours till restoration of supply. 2. If the submersible pump set is to be removed from the tube well due to any fault, its replacement by a standby pump set is to be arranged by the contractor free of cost and should not take more than 48 hours failing which a penalty @ Rs. 2,000 per day beyond the stipulated time shall be applicable. 3. For absence of worker from duty, the following recovery shall be made: (i) Rs. 200 per day per shift. 4. For non-maintenance of water works lawns and plantations, etc., to the entire satisfaction of the Engineer-in-charge: (i) Rs. 2,000 per month. 71. The contract shall be awarded for a minimum period of ONE year. However, the Department reserves the right for extending the contract for another two or three years. 72. No advance payment will be made under any circumstances. However, on successful completion of every month, payment will be released within 15 days from submission of bill. Engaging Non-state 70 Providers in Rural Water Supply Services Bibliography 1. Drinking Water Quality in Rural India: Issues and 9. Outcome Budget of Department of Drinking Water Approaches, WaterAid. nd. Supply: 2009-10. Department of Drinking Water and Sanitation (DDWS), Ministry of Rural Development 2. Estimates for the Use of Improved Drinking Water (MoRD), Government of India (GoI). April 2010. Sources: India. Joint Monitoring Programme (JMP) for Water Supply and Sanitation. World Health 10. Population Projections for India and States: Organization (WHO)/United Nations Children’s 2001-26 (Revised Report of the Technical Group on Fund (UNICEF). March 2010. Population Projections Constituted by the National Commission on Population). Office of the Registrar 3. Evaluation Study on Rajiv Gandhi National Drinking General & Census Commissioner, India. Water Mission (RGNDWM). Programme Evaluation December 2006. Organization (PEO), Planning Commission (PC), Government of India (GoI). November 2010. 11. Report of the Steering Committee on Water Resources for the Eleventh Five Year Plan (2007-12). 4. Household Consumer Expenditure in India: 2007- Planning Commission (PC), Government of India 08 (National Sample Survey 64th Round: July (GoI). 2007. 2007-June 2008). National Sample Survey Office (NSSO), Ministry of Statistics and Programme 12. Report of the Working Group on Water Resources Implementation (MoS&PI), Government of India for the Eleventh Five Year Plan (2007-12). Ministry (GoI). March 2010. of Water Resources (MoWR), Government of India (GoI). 2007. 5. Housing Conditions and Amenities in India: 2008- 09 (National Sample Survey 65th Round: July 13. Report of the Working Group on Rural Drinking 2008-June 2009). National Sample Survey Office Water Supply and Sanitation for the Eleventh Five (NSSO), Ministry of Statistics and Programme Year Plan (2007-12). Planning Commission (PC), Implementation (MoS&PI), Government of India Government of India (GoI). 2007. (GoI). November 2010. 14. Rural Water Supply and Sanitation: Eleventh Five 6. Mid-term Appraisal (MTA) of the Eleventh Five Year Plan Approach Paper. Department of Drinking Year Plan (2007-12). Planning Commission (PC), Water and Sanitation (DDWS), Ministry of Rural Government of India (GoI). 2010. Development (MoRD), Government of India (GoI). 2007. 7. Ministry of Rural Development (Department of Drinking Water Supply): Demand for Grants 2009-10 15. State and District Water and Sanitation Missions: (Third Report of the Standing Committee on Rural Guidelines for Effective Functioning. Department of Development (2009-10), Fifteenth Lok Sabha). Lok Drinking Water and Sanitation (DDWS), Ministry of Sabha Secretariat (LSS). December 2009. Rural Development (MoRD), Government of India (GoI). nd. 8. National Rural Drinking Water Programme— Movement towards Ensuring People’s Drinking 16. Provisional Population Totals, Census of Water Security in Rural India: Framework for India 2011. Implementation. Rajiv Gandhi National Drinking 17. Towards Drinking Water Security in India—Lessons Water Mission (RGNDWM), Department of Drinking from the Field. Department of Drinking Water and Water and Sanitation (DDWS), Ministry of Rural Sanitation (DDWS), Ministry of Rural Development Development (MoRD), Government of India (GoI). (MoRD), Government of India (GoI). 2010. April 2010. 71 Engaging Non-state 72 Providers in Rural Water Supply Services Water and Sanitation Program Ministry of Drinking Water and Sanitation 55 Lodi Estate 9th Floor, Paryavaran Bhawan New Delhi 110 003, India CGO Complex, Lodhi Road, Phone: (91-11) 24690488, 24690489 New Delhi 110 003, India Fax: (91-11) 24628250 Phone: (91-11) 24362705 E-mail: wspsa@worldbank.org Fax: (91-11) 24361062 Web site: www.wsp.org E-mail: jstm@nic.in Web site: www.ddws.nic.in/