Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 29 Jan 2007
PDS Updated as of 28 Jan 2015

Project Name Karnataka Urban Development and Coastal Environmental Management Project
Country India
Project/Program Number 30303-013
Status Closed
Geographical Location Urban Centers along the West Coast of Karnataka
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Water supply and other municipal infrastructure and services
Subsector Water and other urban infrastructure and services
Strategic Agendas Environmentally sustainable growth (ESG)
Inclusive economic growth (IEG)
Drivers of Change
Gender Equity and Mainstreaming Categories Category 4: No gender elements (NGE)


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan1704Ordinary capital resources175,000
Counterpart 76,400
TOTAL US$ 251,400

Safeguard Categories

For more information about the safeguard categories, please see

Environment B

Summary of Environmental and Social Aspects

The project followed the 'project loan' format and the environmental and social / resettlement evaluations of the major components were carried out and incorporated in the summary initial environmental evaluation and resettlement plan developed for the project. Additional works and major changes required a review of the works following the same format. These changes included changed sites for solid waste and sewage treatment plants and pipeline alignments where the implementing agency KUIDFC and the responsible city authorities had to acquire land following ADB's guidelines. ADB also requested KUIDFC to assist the cities with obtaining the certificates of establishment for all solid waste, sewage and water treatment plants, followed by certificates to operate once the new facilities completed, tested and commissioned. All approved resettlement plans have been posted on ADB's website.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

The PPTA funded by ADB conducted a number of public meetings and numerous meetings with the 10 participating city councils and staff. However, as the loan cost and conditions were not well understood at the time, several of the towns had asked for extensive interventions. When KUIDFC later discussed the loan/grant terms with the towns/cities, some towns reduced the scope of some items and increased the scope of others; eg Karwar reduced the proposed sewerage collection system while Mangalore increased it. This led to numerous meetings and discussions. KUIDFC has records of more than 100 such consultations to date. The project also has an advisory committee which includes representatives from the towns and civil society. Progress of the project is recorded on its website. KUIDFC continues to hold periodic meetings with interested parties on demand including site visits.

During Project Design
A stakeholder participation approach for selecting subprojects in the project towns was applied; discussions were held with elected officials to ascertain existing problems, constraints, and local development priorities, a sample socioeconomic survey of community residents and extensive consultations with NGOs determined the priorities of beneficiaries, particularly the urban poor and disadvantaged groups, as well as affordability and willingness to pay for improvements; and a consultative workshop was held in each town at which local government and elected officials, jointly with NGOs, reviewed the investment proposals and the necessary policy reform measures.
During Project Implementation
The Project includes provisions for the continued participation of beneficiaries and community groups in implementation. It is generally recognized that such grassroots participation improves sustainability of the investment. There will be a series of consultative workshops in the Project towns to further define the roles and functional mechanisms for participation. Testing and analysis of the results and further refinement of the mechanisms will follow the initial workshops.


The objective of the Project is to optimize social and economic development in the urban areas of west Karnataka by supporting investments in urban infrastructure and services required to meet basic human needs and facilitating policy reforms to strengthen urban management. The Project will be undertaken in six parts: Part A will provide support for capacity building of local government administrations and community participation with particular emphasis on the formation of sustainable community-based organizations to participate in the design and implementation of poverty reduction subprojects; Part B will include water supply rehabilitation and expansion; Part C will improve urban environment quality, including wastewater management, storm water drainage, solid waste management, traffic management, and municipal services and facilities, such as public markets and slaughterhouses; Part D will improve transportation by upgrading streets and bridges in urban areas; Part E will focus on coastal environment management through the preparation of a coastal resource management and conservation plan, development of a cleaner production and environment monitoring program, promotion of coastal erosion protection through mangrove reforestation, and preparation of a Mangalore urban waterfront rehabilitation plan; and Part F will provide implementation assistance.

Project Rationale and Linkage to Country/Regional Strategy

Urban growth in the coastal districts has far exceeded the capacity of existing infrastructure and services with resultant negative impacts on human welfare, economic growth, and the natural environment. In addition, the inadequate environmental management measures have contributed to significant degradation of the region's valuable natural resources. The state identified ten urban centers as priority areas for investment in basic urban infrastructure, essential municipal services, and institutional strengthening. Each of these towns prepared subproject proposals that were initially reviewed by the state and the Bank in terms of likely eligibility for Bank financing and to assure that basic human needs are met along with other social and public health objectives. The project fell within the Indian and State five year plans, in place in 1997 when the loan was first being formulated. It was listed in ADB's 3 year rolling country plans in 1997-1999. This was the second loan to Karnataka, following Loan 1415-IND: Karnataka Urban Infrastructure Development Project approved in 1996. The project was developed in close coordination with KUIDFC and the 10 participating towns.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Status of Operation / Construction
Material Changes

Business Opportunities

Date of First Listing 2007 Jan 29
Consulting Services
Project Management - A total of about 442 person months (134 person-months international and 308 person-months domestic) of consulting services will be required in the fields of project management, civil engineering, community development, law, urban planning, procurement, financial analysis, and computerization/MIS/GIS. Detailed Design and Supervision - A total of about 2,171 person-months of domestic consultants (1,180 person-months for Package 1 and 991 person months for Package 2) will be required with specialization in water supply and sanitation, roads, solid waste management, drainage, municipal facilities, and slum area upgrading.
Equipment and selected materials will be acquired using international competitive bidding and international shopping procedures as appropriate. Civil works contracts that are relatively small in value will be carried out using local competitive bidding procedures.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 30 Nov 1998 to 16 Dec 1998
Management Review Meeting 08 Feb 1999
Approval 26 Oct 1999


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1704 26 Oct 1999 19 May 2000 21 Sep 2000 30 Jun 2005 30 Sep 2009 25 Nov 2009


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
27 Sep 2016 Loan 1704 145,000 0 100.00%
Cumulative Disbursements
27 Sep 2016 Loan 1704 145,000 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1704

Contacts and Update Details

Responsible ADB Officer Saugata Dasgupta (
Responsible ADB Department South Asia Department
Responsible ADB Divisions India Resident Mission
Executing Agencies Karnataka Urban Infrast. Dev. and Finance Corp.
Mr. Arvind Srivastava


Project Website
List of Project Documents