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Volume II - Issue 07 May 2006

Urbanization lev- Mayor of Jabalpur City Inaugurates the CMWSS in


els are closely
related to levels of Bagra Dafai
income and better On 15th May 2006, the Com- period in the morning, when Community Water & sanitation
performance on munity Managed Water Supply the tube wells are operated for Committee (CWASC) named
social indicators, Scheme (CMWSS) at Bagra a short period, fill up water in Bagra Dafai Development Soci-
including health Dafai was inaugurated by the buckets for their houses. On ety, which was officially regis-
Mayor of Jabalpur City, Mrs. account of disputes regarding tered as an legal entity on 4th
and literacy. The
Susheela Singh. The Mayor water distribution amongst the February 2006. The CWASC
achievement of residents around 30-40 First has entered into an agreement
appreciated the initiative of the
the Millennium residents of the locality for solv- Information Reports (FIRs) have with the JMC for supply of
Development ing their water problems and been filed in the police station treated water @ 70 litres per
Goals is, there- taking up the responsibility of in the past. On top of this, the capita per day to the 1200
fore, more likely implementation of the water water from the tube wells have households of the locality from
supply scheme in collaboration a high content of fluoride which its overhead tank located near
in cities. Con-
with the Jabalpur Municipal as is commonly known is harm- by at Poly Pather. The Commu-
versely, urban ful for health, especially for
Corporation (JMC) and their nity will create the water distri-
economic growth commitment for post implemen- teeth and bones. The house- bution system with loan from
provides the basis tation operation and mainte- holds are, however, drinking JMC.
on which cities nance of the scheme. She ad- this water due to lack of any The total capital cost of the
can contribute to vised the residents of Bagra other alternative. project is Rs. 22 Lacs, which is
the achievement Dafai to run this scheme in such In view of this, JMC in consulta- being provided by the UN-
of the Goals, par- a manner that it becomes an tion with UN-HABITAT and the HABITAT to the JMC as an one
example for others to emulate. community has identified Bagra time grant, which in turn loan it
ticularly in the
On this occasion, CTA, UN- Dafai, for piloting the Commu- to the community. The Commu-
area of poverty HABITAT as well as President, nity Managed Water Supply nity will pay the amount in
reduction. Secretary and other members Scheme (CMWSS). It has been easy installments. As against
of the Bagra Dafai Develop- decided that JMC would pro- normal connection charges of
—State of the World’s ment Society and officials of vide treated water in bulk quan- Rs. 1375 and Rs. 60 per
Cities 2006/7 JMC were present. tities sourced from the peren- month user charges, only Rs
The notified slum of Bagra nial ‘Narmada’ river, 4 hours 100 per household per month
Dafai, located in Guarighat in the morning and 4 hours in will be charged. The capital
Ward of Jabalpur Municipal the evening, to 800 household works execution is expected
INSIDE THIS ISSUE: Corporation, have more than connections for the community, to take 3-6 months. Operation
1200 households, almost to- if the distribution network in the and maintenance of distribu-
Community-led Infrastruc- 2
tally below the poverty line. At locality was developed. tion lines will be done by the
ture Financing Facility
present the locality is being The purpose of this scheme is to CWASC. The CWASC will
Mobilizing MPLAD / MLA- 3 supplied water free through demonstrate that it is possible collect connection and user
LAD Resources
public stand posts from three to quickly improve the lives of charges from the resident
Financing Urban Infrastruc- 4 tube wells of the JMC. There is the urban poor and disadvan- members and pay the water
ture: Tamil Nadu Urban no house to house piped water taged by connecting them to charges to the JMC as per
Development Fund
supply system in this locality. piped water. The residents of the bulk rates agreed upon
People queue up for substantial Bagra Dafai have constituted between the CWASC and
the JMC.
PAGE - 2 May 2006

Community-led Infrastructure Financing Facility (CLIFF) and


Bottom-up Neighbourhood Development
The Community-led Infrastructure Financ- mal sector has continued to be
ing Facility (CLIFF) is an urban poor fund unable to adapt their systems to
capitalized by donors that has been accommodate non-formal in-
designed to act as a catalyst in slum vestment processes. In Decem-
upgrading through providing strategic ber 2002, Cities Alliance ap-
support for community-initiated housing proved a proposal to establish
and infrastructure projects that have the CLIFF with a seed capital of
potential for scaling up. The overall goal US$ 10 million from the UK
is to reduce urban poverty by increasing Department for International
the access of poor urban communities to Development (DFID) and an
commercial and public-sector finance for additional US$ 2 million from
medium to large scale infrastructure and the Swedish government. Prince Charles meets members of Mahila Milan and the National
housing initiatives. The first initiative is in Homeless International (a UK Slum Dwellers Federation to learn how they plan, implement and
India with the Society for the Promotion NGO) is the implementing manage complex slum upgrading projects

of Area Resource Centres (SPARC), the agent and works with Samu-
daya Nirman Sahayak. The main func- sisted to develop a track record in
National Slum Dwellers Federation
tion of CLIFF is to: delivering urban rehabilitation;
(NSDF) and Mahila Milan.
Scaling up citywide requires an engage- • provide bridging loans, guarantees • seek to attract commercial, local
and technical assistance; and public-sector finance for further
ment with the formal development proc-
schemes, thus accelerating or scal-
ess and the establishment of working • initiate medium-scale urban rehabili- ing up the response to the chal-
relationships with formal-sector institu- tation in cities in the South; lenge of urban renewal; and
tions. This is usually problematic, largely
because public-sector financing is se- • work in partnership with community- • establish local CLIFF agencies that
verely constrained and has a proven based organisations (CBOs) and can operate as lasting local institu-
record of being reluctant to lend to the non-governmental organisations tions.
poor. A further problem is that the for- (NGOs) who have or can be as-

Pro-poor Reforms on Slum Upgrading in India


In India, national policy guidelines on implemented. Under this programme, a years. The programme’s special compo-
housing are being finalized, drawing on total of 5 million sanitation units were nents include water supply and sanita-
the Urban Land Ceilings and Regulariza- constructed. Similarly, the National Slum tion, sewerage and solid waste manage-
tion Act from the 1970s, which allowed Development Programme (NSDP) looks ment, construction and improvement of
municipalities to set aside land for the specifically into upgrading of urban drains and storm water drainage. How-
shelter needs of the urban poor. Individ- slums by combining physical infrastruc- ever, because of high levels of urbaniza-
ual states and cities have undertaken ture with social services, including water tion, these important programmes may
innovations such as the use of transfer- supply, community latrines, storm water prove insufficient in the face of the huge
able development rights to free up land drainage, community bathrooms, sewers challenges that they need to address,
for low-income housing. In 1996, India’s and other amenities. particularly with regard to annual slum
Slum Rehabilitation Act allowed state The government has also recently growth rates that are estimated to be
authorities to offer land development launched a new programme, the Jawa- 1.72 per cent per annum.
rights to slum and pavement dwellers. harlal Nehru National Urban Renewal Significant gaps and deficiencies exist in
India is also implementing reforms that Mission (JNNURM), that aims to bring urban management in terms of provision
go beyond the housing sector, but which about mandatory reforms both at State and delivery of services. Municipal Action
have the potential to significantly im- and Municipal levels to improve basic for Poverty Reduction (MAPP) is a new tool
prove the lives of slum dwellers. India’s service provision and secure tenure in for municipal planning to promote partici-
five-year development plan aims to pro- urban poor neighbourhoods. The pro- pation, transparency, responsiveness and
mote universal coverage of water supply gramme, the single largest national gov- strategic vision. It seeks to address this gap
and sanitation. In pursuit of this goal, ernment initiative in the urban sector, with the participation of various stake-
was launched in December 2005 and is holders. The tool earlier used in Andhra
several central government sponsored
to be implemented over a period of 7 Pradesh is now proposed to be used in
schemes and programmes have been
Madhya Pradesh.
VOLUME II - ISSUE 07 PAGE - 3

Mobilizing MPLAD / MLALAD Resources for Improving Water &


Sanitation Facilities in Madhya Pradesh
Today, India's urban population is second largest in the world this, the sanction for the water and sanitation sector in the cities is
after China, and is higher than the total urban population of all quite low. The average sanction of MPLAD fund for water supply
countries put together barring China, USA and Russia. Over the and sanitation projects in the cities during 2000-05 ie as follows:
last fifty years, while the country’s population has grown by 2.5 Particulars Bhopal Indore Jabalpur Gwalior

times, in the urban areas it has grown by five times. This has re-
Sanction of fund for the district 470.02 290.65 159.75 245.37
sulted in deterioration in the physical environment and quality of (Rs. In Lakhs)
life. The situation in the cities of Madhya Pradesh is not good, in Share of city as against total 60.8 57.2 42.1 40.7
fact in some cases the conditions are alarming, needing proper sanction for the district (%)
attention to address the problems. The growth of slums in the 4 Share of water & sanitation works 35.2 40.1 2.68 13.0
major cities, where the Water for Asian Cities Programme is being as against sanction for the city (%)
implemented in support of the ADB financed Urban Water Supply
& Environmental Improvement Project of Government of Madhya 2. MLA Local Area Development Scheme (MLALAD):
Pradesh is as follows: Operational since 1994, this scheme allows for a fixed amount to
City Total Recog- Estimated Slum Popu- Illegal be placed at the discretion of the MLA for development of his or
Population nized Slum Popula- lation to colonies her constituency. In Madhya Pradesh, the annual amount per MLA
(2001 Slums tion (As per total Popu-
Census) (in MCs) lation
(No.) constituency has been increased from Rs. 20 Lakhs in 2002–03 to
(No.)
thousand)
(in thousand)
Percentage Rs. 60 Lakhs in 2005-06. However, the amount available under
Bhopal 1433.88 487 432 30.1 131 this scheme is not being utilized in full in the financial year, and
Gwalior 826.92 149 478 57.8 265 the amount spent on water sanitation projects are quite low. The
Indore 1597.44 406 260 16.3 349 sanction of MLALAD fund for water supply and sanitation projects
Jabalpur 951.47 331 400 42.0 47 in the four cities during 2000-05 is as follows:
Particulars Bhopal Indore Jabalpur Gwalior
There is need for urban reforms to streamline infrastructure facilities
Sanction of fund for the City 96.00 169.73 109.80 147.56
to improve living conditions in the expanding cities matching with (Rs. In Lakhs)
their growth. However, for doing so there is need for mobilization Total sanction for water & sanita- 22.40 100.55 5.62 58.72
of adequate financial resources. tion works (Rs. In Lakhs)

UN-HABITAT Study Share of water & sanitation works 30.42 64.26 5.08 39.36
as against sanction for the city (%)
UN-HABITAT had recently conducted a study on financial resource
mapping using data for the five year period and drafted a strategy During 2003-05, about 90 to 93 % in Indore, 54 to 60 % in Ja-
for greater convergence of available resources in the 4 cities to balpur and 67 to 87 % in Gwalior were not sanctioned. On
achieve the Millennium Development Goals. analysis, it become evident that out of entire amount available, at
In this study, the untied locally available central and state govern- least 50 % can be exclusively kept aside for water and sanitation
ment funds not necessarily pertaining to the urban administration works. Thus, additional funds can be generated to the extent of
department, funds available with the local bodies and non govern- 64.40 Lakhs for Bhopal, Rs 49.45 Lakhs for Indore, Rs 114.38
mental sources have been analysed. Special emphasis is on the Lakhs for Jabalpur and Rs 61.28 Lakhs for Gwalior. The possibil-
Member of Parliament Local Area Development (MPLAD) and ity of mobilisation of funds per annum from various untied re-
Member of Legislature Local Area Development (MLALAD) sources are summarized below:
schemes, public contribution schemes, funds available with the Amount (Rs in Lakhs)
ULBs and from international and non government organisations Source
Bhopal Indore Jabalpur Gwalior
funding. The trend of flow of fund for the water and sanitary sector
MPLAD Scheme 43.42 9.35 37.63 40.21
were discussed and possibility of convergence of untied resources MLALAD Scheme 64.40 49.45 114.38 61.28
for development for these sectors have been suggested.
The Government of India initiated the Urban Basic Services Pro-
Scope for Mobilisation of Untied Fund gramme (UBSP) during the 7th Five year Plan period for urban
1. Member of Parliament Local Area Development poverty alleviation. Establishing linkages between community and
Scheme (MPLAD): Each of the 4 project cities are represented city level planning and management structures through a system-
by one Member Parliament (Lower House). Thus at least Rs. 20 atic devolution of resources and responsibilities to match with
million from MPLAD fund are available for the development works community needs, capacities and efforts at resource mobilization
in these cities. Besides these, there are 11 MP (Upper House) from is one of its major objectives. For effective implementation of the
Madhya Pradesh. Some funds, hence, are also available from programme, the state government has constituted the State Ur-
MPLAD fund of MP (Upper House) for these cities. However, entire ban Development Agency (SUDA) and District Urban Develop-
available funds are not being utilized. As per the Ministry of Statis- ment Agencies (DUDA). The UN-HABITAT study has recom-
tics & Programme Implementation, Government of India, the utiliza- mended that the existing system can facilitate the convergence
tion of MPLAD fund in Madhya Pradesh is only 60-80%. Out of of the untied resources available at the city level with DUDA.
PAGE - 4

Financing Urban Infrastructure: Tamil Nadu Urban Development Fund


The Tamil Nadu Urban Development Fund (TNUDF) has
evolved from a municipal trust fund to one established and Bridges and Roads 65%
managed by the public and private sectors. The initial fund—
the Municipal Urban Development Fund—was financed en- Sewerage & Sanitation 22%
tirely by the public sector to reduce the massive backlog of
Water Supply 6%
infrastructure investment and improve the delivery of basic
urban services. It was launched in 1988 with a concession
Bus Stations & Markets 5%
loan from the International Development Association (IDA).
In 1996, with the aim of achieving managerial efficiency Storm Water 1%
and attracting private capital for urban infrastructure, it was
converted into an autonomous financial intermediary. Estab- Others 1%
lished as a trust fund with private equity participation, it was
the first public-private partnership in India that provided long-
the surpluses of the municipal borrowers, a situation similar
term municipal financing for infrastructure without guaran- to revolving funds in Europe and the US. The TNUDF is mak-
tees. Instead of merely channeling public funds, its purpose it ing an important contribution to capital investment needs for
to attract financing from the private sector. It also manages a large, lumpy and non-revenue generating projects. For many
separate grant fund owned by the state government to fi- small local governments tat are unable to access to the mar-
nance poverty alleviation projects. ket, together with enhanced credit. Such arrangements can
The TNUDF is managed by a private corporation: Tamil be especially useful for sewerage projects that require sub-
Nadu Urban Infrastructure Financial Services Ltd. Financial stantial funds with repayment periods of 20 years or more.
institutions have committed to contribute an amount equal to Despite these constraints, the fund is quite creative, launching
44 per cent of the initial contribution of the Tamil Nadu state new financial products to tap the capital market for special
government and participating financial institutions. Borrowers purposes, such as the Water and Sanitation Pooled Fund. A
are required to follow conservative financial management municipal bond issued for a road development, initially
practices and to meet performance targets, including for debt funded by TNUDF, was re-financed from the bond proceeds,
service reserves and making appropriate sinking fund contri- thus releasing funds for other capital investment.
butions. The TNUDF’s debt financing depends mainly upon

Mumbai’s Quest for ‘World City’ Status


Mumbai, the capital of the state of Maharashtra and India’s most important financial capital, has a population of 18.3
million people, making it the fourth largest urban agglomeration in the world, after Tokyo, Mexico City and New York-
Newark. The city hosts one of the world’s largest slum populations: more than 5 million of the city’s residents are slum
dwellers. More people live in Mumbai’s slums than in the entire country of Norway.
Despite the daunting conditions in its slums, Mumbai is a magnet for Indians, not only from neighbouring cities and villages
but also from the rest of the country. According to “Vision Mumbai”, a 2003 report by the private consultancy firm
McKinsey & Co. the city urgently needs to be building at least 1.1 million affordable housing units in the next decade for
current and future generations of slum dwellers and migrants.

Editorial Board
UN-HABITAT
Water for Asian Cities Programme Malay Shrivastava, Secretary, UADD, State Govt. of M.P
EP-16/17, Chandragupta Marg, Chanakyapuri Hazari Lal, Director, Govt. of India
New Delhi - 110021 (India), Tel: +91-11-42225019 / 22 Gulshan Bamra, Project Director, UWSEIP, Bhopal
Fax: +91-11-24104961, Web: www.unwac.org
Debashish Bhattacharjee, ADB, India Resident Mission
WAC Programme Project Office Aniruddhe Mukerjee, CTA, UN-HABITAT, Bhopal
E-1/191, Arera Colony, Bhopal - 462016
Madhya Pradesh, India, Tel: +91-755-2460835-36
Editor
Fax: +91-755-2460837, Email: Wac.India@unhabitat.org
Kulwant Singh, CTA, UN-HABITAT, New Delhi

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