“Jalasiri” Karnataka Integrated Urban Water Management Investment Programme” (KIUWMIP)

Project Objective

The Urban Drinking Water and Sanitation Policy 2003 of GoK focuses on raising the levels of efficiency in the management of drinking water systems in urban areas so as to give satisfactory service to the citizens. The policy emphasizes on full cost recovery and private sector participation for bringing in efficiency in the system. It is envisaged that this policy would facilitate implementation of the sector reforms and subsequently achieve the long-term vision of providing high quality and sustainable water supply and sanitation services in all the ULBs of Karnataka.

Objective of KIUWMIP Indicative Activities
Improved planning & monitoring ULB Incentive Fund operationalised
State and ULB IT Transformation Program implemented through design of IT modules and rolling-out and providing ULB training for
  • 1. volumetric tariff setting, water accounting and effluent discharge,
  • 2. improved MIS and asset management system
Improved communication and citizen participation for improved understanding of
  • 1. water management
  • 2. water-sanitation-health nexus, and
  • 3. volumetric tariffs
More efficient water infrastructure
24/7 water supply project for Davanagere, Harihara, Ranebennur and Byadgi through water operator, and also proposed in another 4 towns under Tranche 2
Improved sewerage infrastructure
Sewerage/STP projects for Davanagere, Harihara and Byadgi, and also proposed in another 3 towns under Tranche 2
Enhanced institutional performance
Utility based professional management models promoted through performance based management contracts and establishment of pilot SPV for water supply

Project Scope

The programme “Karnataka Integrated Urban Water Management Investment Programme” (KIUWMIP) aims to institutionalize mechanisms in the urban context which contribute to managing increasingly scarce water resources in a holistic and sustainable manner. Investment support will be provided to modernize and expand urban water supply and sanitation (UWSS) while strengthening relevant institutions to enhance efficiency, productivity and sustainability in water use. The program is titled “Jalasiri”.

Accordingly, Asian Development Bank (ADB) has approved a Multi-tranche Financing Facility (MFF) on 28 March 2014 for KIUWMIP. The initial tranche of the Program signed on 30 December 2014 is under execution in following towns – Davanagere & Harihara in Davanagere district; Ranebennur & Byadgi in Haveri district; and second tranche is under planning in following towns - Mangalore & Puttur in Dakshina Kannada; Udupi & Kundapura in Udupi district. It is proposed to roll out Tranche 2 by end of 2016.

Figure 1 Location of the towns in the respective districts of Karnataka

The impact of Tranche 1 project is towards improved and sustainable water security in selected ULBs located in the Tungabhadra river basin in Karnataka, targeting a population of 667,905 living in Davanagere, Harihara, Ranebennur and Byadgi. The impact of Tranche 2 is expected for benefit a population of 708,348 living in Mangalore, Puttur, Udupi and Kundapura.

The key outputs as part of the investment program are presented in the chart below.

Technical Improvements Management and Governance Improvements Customer Service Level Improvements
24x7 water supply Computerised customer database Customer Service Cell
Increasing house service water connections Metering and Volumetric tariff Simplified water connection procedure
Increasing household toilets Sanitation charges Improved service delivery – quality/ quantity
Increasing sewer house connections Ring fenced water accounting and monitoring Applications of modern technologies
Increasing sewage collection Engagement of water operator Increasing transparency
Increasing treatment of wastewater for reuse
Effective use of water resources

The outputs /outcomes will be determined by technical improvements, management and governance improvements, and customer level improvements. The technical improvements will focus on physical infrastructure while the other two will focus more on institutional development and increasing customer satisfaction. A design and monitoring framework is prepared for the program

Project Components

The Program invests largely in infrastructure works related to 24x7 water supply and expansion of sewerage system (including treatment and safe re-use), besides non-physical investments targeting a population of 13,76,253 in the ULBs proposed in Tranche 1 and Tranche 2 together. The programme aims to achieve:-

Output 1 Output 2 Output 3
Expanded and upgraded Urban Water Supply and Sanitation (UWSS) infrastructure Improved water resource planning, monitoring and service delivery Strengthened operational and administrative capacity of KUIDFC

The Project has the following components:

  • Output 1:
  • Output 1.1: Water Supply Infrastructure
  • This output comprises rehabilitation and expansion of potable water supply systems in the 4 ULBs: Davanagere, Harihara, Ranebennur and Byadgi.
  • Output 1.2: Sanitation Infrastructure
  • This output comprises expansion of sewerage systems in the 3 ULBs : Davanagere, Harihara, and Byadgi.
  • Output 2:
  • This component will finance Tranche 1: (i) ULB Incentive Fund; (ii) Preparation of 4 IT-based modules for volumetric tariff setting, water accounting and effluent discharge and improved MIS and Asset Management and testing in 4 Project Towns; (iii) PSP approaches in water and sewerage service delivery. (iv) Preparation of the public communication and awareness program and materials.
  • Output 3:
  • This component comprises the following specific outputs: (i) Professional services to assist KUIDFC prepare strategic documents to enhance their financial intermediation capacity; (ii) Project management and design and construction supervision services for Project 1; (iii) Training programs for developing administrative and water management capacity at ULB level in Project towns

Project Funding Arrangement

  • 1. Government of Karnataka has accorded approval for KIUWMIP with ADB assistance as per government order number UDD 214 PRJ 2013, Bangalore dated 20 September 2013.
  • 2. Proposed investment for KIUWMIP is formulated under Multi-tranche Financing Facility (MFF) of Asian Development Bank (ADB) is for $227 million. It is spread over in two loan tranches. The period of investment is from 2014 to 2024. The investment details are presented below.
  • 3. Tranche 2 loan preparation is underway currently and scheduled for signing in 2016.
Source Investment Program Tranche 1
Amount ($ Mn) Share (%) Amount ($ Mn) Share (%)
Asian Development Bank 150.0 66.1% 75.0 64.1%
Urban Environmental Infrastructure Fund under UFPF 2.0 0.9% 1.8 1.5%
Government of Karnataka & Implementing Agencies 75.0 33.0% 40.2 34.4%
Total 227.0 100% 117.0 100%

Onward lending plan to ULBs

Water supply program
Sl. No. Category Grant (Government of Karnataka) Financial Assistane (ADB) ULB Share
1 City Corporation
2 City Municipal Council
3 Town Municipal Council

Sewerage program

Sl. No. Category Grant (Government of Karnataka) Financial Assistance (ADB) ULB Share
1 City Corporation
2 City Municipal Council
3 Town Municipal Council

Project Implementation

  • 1. The Karnataka Urban Infrastructure Development & Finance Corporation (KUIDFC) shall be the overall Executing Agency for this project and the Managing Director (MD), KUIDFC, Bangalore, shall be the Project Director. The KUIDFC shall have full responsibility for project execution and follow up, including financial management, procurement and reporting to Government of Karnataka and ADB.
  • 2. Project implementation activities will be monitored by KUIDFC through a Project Monitoring Unit (PMU), which is set up within KUIDFC. The Managing Director will head the PMU. Regional Project Management Units (RPMU) at sub-basin level for each tranche will be responsible for all assisting project implementation. ULB-level Project Implementation Units (PIU) will be established to monitor day-to-day construction works. The Commissioner/ Chief Officer of the respective ULB shall be the administrative head of the PIU.
  • 3. The implementing agencies are the
    • o Project ULBs for the implementation of Output 1,
    • o KUIDFC for the implementation of activities under Outputs 2 and 3, and
    • o Karnataka Municipal Reforms Cell / Karnataka Municipal Data Society for developing and rolling out IT-based reform modules and train ULB staff.
  • 4. An Empowered Committee is constituted to take decisions pertaining to implementation and other aspects of the project


Sl No Name Of Town Name of Work Package No Physical progress Financial progress
1 Davanagere Expansion of sewerage system 01DVG01 24% 20%
2 Davanagere DBO of two STPs ( 20 MLD &5 MLD) 01DVG01A 43% 34%
3 Harihara Expansion of sewerage network & construction of 18 MLD STP 01HRA01 43% 40%
4 Byadgi DBO comprehensive sewerage system & construction of 5 MLD STP 01BDG01 10% 9%


  • 1. Apt technology study carried out for identifying appropriate mapping technologies
  • 2. Capacity Enhancement Need Assessment Study for urban functionaries carried out
  • 3. Surveyed 3.2 million urban properties and MIS data base created for PTIS
  • 4. Introduced fund based accounting system in 158 ULBs.
  • 5. Computerization of birth and death records in 164 ULBs for the last 10 years
  • 6. Building institutional capacity.
  • 7. Public Grievance and Redressal cells managed by NGO’s set up in each municipality
  • 8. Implementation of 24X7 Water Supply in 3 towns, covering both bulk and distribution, by way of Performance Based Management Contract
  • 9. Model Bid document prepared for outsourcing of O&M of UGD assets
  • 10. Adopted e-Procurement & e-Contract management of GOK

Urban Infrastructure (Anticipated Outcomes)

  • • Continues pressurized water supply to about 22, 000 households in the town of Nanjangud, Haliyal and Magadi
  • • Introduction of Volumetric Tariff for water supply and sewerage user fee for UGD facilities for ensuring better service provision by the ULBs.
  • • 2,314 km of UGD line benefiting 2.5 Lakh households in Greater Bangalore Area
  • • 5,320 LCS units benefiting about 30,000 urban poor
  • • Preservation of 70 lakes of Bangalore city


Resettlement plans and due deligence reports or Tranch 1 & Tranch 2.

KIUWMIP- Jan - June 2016 SEMR -revised--Approved by ADB for discloser

Byadgi Tranch 1.

(01WS02) Byadgi bulk water supply_track_ DDR 20032017sp-IS Final_am

01BDG01 Updated RP Byadgi UGD 21032017 (1)

01WS03 Byadgi- WS Distribution Network sp 25032017 DDR

Davanagere Tranch 1.

01WS01-A DDR IR (IWRM ) Bulk WS, Davanegare sp 27032017

01WS03- SIA IR (IWRM ) WS Distribution Network, Davanegare sp01022017

Harihara Tranch 1.

Harihara IEE Report Kannada

01HRA01_track_RP final_am

AA_01WS02 Harihara Bulk WS draft RP sp 16.3.17 (AutoRecovered)_am (1)

AA_01WS04 Harihara WS Distribution Network DDR 4.3.17 SIA sp 16.3.17)_am

Kundapura Tranch 2.

(02KDP01) DDR-1_track_ Kundapura-sp 20032017-IS Final

Puttur Tranch 2.

AA_02PTR01 02WSDIST01 RP- Puttur 17-3-2017sp-IS FINAL_am (1)

Mangalore Tranch 2.

02MNG02 Mangalore Pumping main RP 21.03.2017

PPT for Consultative workshop

PPT for Consultative workshop 01.04.2017

Disclosure of finalized IEE

ADB approved Final (revised draft)-Byadgi WS IEE on 09 Jan 2016

Approved by ADB- Updated IEE Sewerage Harihara 13 Jan 2017

Approved by ADB-Davanagere Updated Draft IEE-Bulk WS on 17 Jan 2017

01HRA01_track_RP final_am

01BDG01 Byadagi Town_ track_RP Final_am

ADB approved Updated IEE sewerage Davanagere on 16-12-2016

ADB approved Final updated IEE Harihara Water supply on 16-12-2016

Approved by ADB-Final updated IEE Byadgi Sewerage on 16 Jan 2017

ADB approved-Kundapur Water Supply draft IEE _Revised on 15-03-2017

Approved by ADB- Final Draft Puttur WS IEE on-6 Jan 2017

Approved by ADB-IEE of Davanagere-WS-Distribution Network on 5th April 2017

Approved by ADB on 25-4-17-Mangalore-Replacement of old sewerage pumping main