July 12, 2023
Mr. K. Manicka Raj
Joint Secretary, (FB & ADB)
Department of Economic Affairs (DEA)
Ministry of Finance
Government of India
North Block
New Delhi 110 001
Dear Mr. Manicka Raj:
INDIA: Uttarakhand Water Supply Program for Peri-Urban Areas
(Loan Number 8805-IN)
Amendment No. 3 to the Loan Agreement
We refer to the Loan Agreement between India (“Borrower”) and the International Bank for
Reconstruction and Development (“Bank”) dated January 22, 2018, as amended to date, for the above-
mentioned project (“Project”). We also refer to the letter from DEA dated June 20, 2023, requesting a
restructuring of the Program.
We are pleased to inform you that after due consideration the Bank has agreed to DEA’s request
and proposes to amend the Loan Agreement as set forth below:
1. Section IV.B.5. of Schedule 2 is amended to read as follows:
“The Closing Date is June 30, 2025.”
2. Schedule 4 (Disbursement Linked Indicators, Disbursement-Linked Results and Allocated
Amount(s) Applicable to the Program) is revised to read as set forth in Annexure I to this letter.
3. Section I. 30 of the Appendix is amended to read as follows:
“Efficiency of Water Supply Service Delivery means, for purposes of DLI#6, the system for water
supply service delivery administrated by an Operator within a selected Peri-urban Area, which has
met or exceeded the requirement to maintain: (a) Energy Intensity- measured in kilowatt hour per
cubic meter of water pumped- not more than five percent threshold of the optimal benchmark
level established for the water supply system by an energy auditor certified by the Bureau of
Energy Efficiency; and/or (b) non-revenue water level below 30% for a water supply system, all
as further detailed in the Program Operations Manual.”
4. The Results Framework of the Program is revised and is set forth in Annexure II to this letter.
Except as specifically amended in this letter, all other terms and conditions of the Loan
Agreement shall remain in full force and effect.
India Country Office, 70 Lodi Estate, New Delhi 110 003, India
P.O. Box 416, Phone: +911141479301 / +911149247601
Mr. K. Manicka Raj -2- July 12, 2023
The Bank will disclose this letter and related information in accordance with the World Bank’s Policy
on Access to Information. By agreeing to this letter, the Borrower consents to the disclosure of this letter and
related information.
Please confirm your agreement to the foregoing by signing the form of confirmation set forth below,
and returning one fully executed original of this letter to us and retaining one original for your records. This
letter shall become effective as of the date of the countersignature, upon receipt by the Bank of the duly
countersigned original of this letter.
Yours sincerely,
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
Auguste Tano Kouame
Country Director, India
AGREED:
INDIA
By: _____________________________
Authorized Representative
K. Manicka Raj
Name: ____________________________
Joint Secretary, FB&ADB
Title: _____________________________
27-Jul-2023
Date: ____________________________
Mr. K. Manicka Raj -3- July 12, 2023
cc:
Mr. Parameswaran Iyer, Executive Director (India), World Bank
Mr. Rajeev Topno, Senior Advisor to Executive Director (India), World Bank
Government of India
Mr. Rajesh Kumar, Deputy Secretary, DEA, Ministry of Finance
Mr. Ashok Kumar, Controller of Aid Accounts & Audit, DEA, Ministry of Finance
Ms. Vini Mahajan, Secretary, Department of Drinking Water and Sanitation, Ministry of Jal Shakti
Government of Uttarakhand
Dr. S.S. Sandhu, Chief Secretary
Mr. Arvind Singh Hyanki, Secretary, Department of Drinking Water and Sanitation
Mr. R. Meenakshi Sundaram Secretary, Finance Department
Ms. Iva Ashish Srivastava, Program Director, State Water and Sanitation Mission, Dehradun
Mr. Uday Raj Singh, Managing Director, Uttarakhand Peyjal Nigam
Ms. Neelima Garg, Chief General Manager, Uttarakhand Jal Sansthan
Mr. K. Manicka Raj -4- July 12, 2023
Annexure I
Revised Schedule 4 to Loan Agreement
Disbursement-Linked Indicators, Disbursement-Linked Results and Allocated Amount(s) Applicable to the Program
DLI Results to be Achieved/Indicative timeline for DLI achievement
DLI Baseline Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
DLI#1: Number of Water Connections Providing
Improved Water Supply Services in peri-urban Ya 0 0 0 0 9,519 26,860 87,757 87,757
areas (cumulative)
Yb 0 0 0 0 0 22,446 93,314 268,828
(US$ 325 x Ya) + (US$ 28 x Yb) where:
Disbursement formula Ya = Number of new water connections installed in any year and providing at least three (3) months of Improved Water Service; and
Yb = Number of water connections installed previously and provided Improved Water Services for at least 150 days 1, during the previous
six months (180 days). Yb will be evaluated every six months and thus would be eligible for two disbursements of US$ 28 in a year.
Tentative allocated amount in US$ million (Total
0 0 0 3.09 6.27 21.77 6.57
US$ 37.7 m)
DLI#2: Sustainability of water supply service Xa 0 0 0 13.6 22.1 35.86
delivery in peri-urban areas
Xb 0 0 0 16 39.6 39.6
Disbursement formula (US$ 144,000 x Xa) + (US$ 144,000 x Xb) where
Xa is the sum of scores of two sub-indicators of TSI: performance agreement (score: 1) and customer satisfaction (score 0.7). Xa will be
measured annually and the score for each system could range between 0 and 1.7. Each system is eligible for one annual disbursement for Xa.
Xb is the sum of scores of two sub-indicators of TSI: metering (score :1), O&M cost recovery (score 1). Xb will be measured quarterly and
the score for each system could range between 0 and 2 in any year. Each system is eligible for disbursement starting from the first quarter of
the year. If a water system is not able to get the maximum score (2.0) in the first quarter but improves the score in the subsequent quarters of
the same year, it will be eligible to a payment for the incremental improvement.
For example, if the performance of a water system in the first quarter is 1.5, it will be eligible for a payment of 1.5 x US$ 144,000 for the first
quarter. If the performance of this system improves to 1.75 in the second quarter, it will be eligible for a disbursement equal to the incremental
progress, i.e., 0.25 x US$ 144,000, for that quarter. If in the fourth quarter, its performance reaches 2.0, the incremental progress would justify
a disbursement of 0.25 x US$ 144,000 for that system in Q4. Thus, this change provides a clear incentive to improve performance from one
quarter to the next and will allow using the TSI score as a tool to monitor systems’ performance. The IVA will monitor this indicator quarterly,
twice based on field visits and twice based on desk review.
Tentative allocated Amount in US$ million (Total
0 0 0 0 4 6.35 13.48
US$23.83m)
DLI #3: Improved Program policy in Peri-urban Policy
No WSS policy
Areas adopted state-
for peri-urban
wide by
areas
GoUK
Allocated Amount in US$ million (Total US$ 14m) 14
1 In case the service area is formally declared disaster affected during the period, such days will be exempted.
Mr. K. Manicka Raj -5- July 12, 2023
Results to be Achieved/Indicative timeline for DLI achievement
DLI DLI Baseline Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
DLI#4: Strengthened Program M&E systems in M&E plan M&E plan
M&E plan
Peri-urban Areas M&E plan implemented implemented
Existing M&E reviewed M&E plan
implemented in an in an
systems do not M&E plan M&E system identifying implemented
cover peri-urban
in at least 4 additional 3 additional 8
prepared designed future in 22 peri
areas Peri-urban Peri-urban Peri-urban
needs and urban areas
Areas Areas (Total: Areas (Total:
changes
7) 15)
Tentative Allocated Amount in US$ million (Total
1 5 8 3 2 0.5 0.5
US$ 20m)
DLI #5: Number of Approved Master Plans for
No WSS policy 2 3
water supply in Peri-urban Areas
Tentative Allocated Amount in US$ million (Total
12.17 0
US$ 12.17m)
DLI #6: Efficiency of water supply service Za 0 20 20
delivery in peri-urban areas Zb 130 200 270
Disbursement formula (US$ 150,000 x Za) + (US$ 10,000 x Zb) where
Za is the number of schemes that maintains the Energy Intensity (EI), which is defined as average amount of energy used in kilowatt hour to
pump one cubic meter of water (kWh/m3), within 5% threshold of the benchmark level established for a water supply system by an energy
auditor certified by the Bureau of Energy Efficiency, following the protocol detailed in the Program Operations Manual (POM).
The amount to be disbursed on a quarterly basis will be the sum of scheme-wise eligible disbursements. The following incentive scale is
proposed for each scheme per year, with an average incentive of US$ 150,000 per scheme per year:
• US$ 200,000 for the schemes that maintain the EI at its benchmark level or better.
• US$ 150,000 for the schemes that maintain the EI not more than 2.5% threshold of its benchmark level
• US$ 100,000 for the schemes that maintain the EI not more than 5% threshold of its benchmark level.
• No incentive for the schemes that is unable to maintain the EI within 5% threshold of its benchmark level.
A water supply system will be eligible for incentive every year. A water system will be incentivized to improve performance from the previous
quarter in the same year, but a system not improving EI level from the previous quarter in the same year will not be eligible for additional
incentive. The incentive calculation is reset and starts again each year.
Zb is the sum of scheme-wise eligible disbursements for the quarter. To simplify the quarterly calculation, and create a measurable target
value, each quarterly payment will be obtained by multiplying the number of NRW percentage points eligible for payment by a multiplier
corresponding to the number of US$ 10,000 increments applicable to the NRW percentage point reduced below 30%. The value reported will
be the sum of weighted percentage point reduced in all water supply systems in O&M phase for at least three months.
NRW will be calculated as the percentage of the net loss of water - measured as difference between the total amount of water leaving all the
reservoirs in a water supply system and sum of meter readings of all metered connections in the system - divided by the total amount of water
leaving from all the reservoirs in the system in a quarter.
For each system, percentage reduction in NRW will be multiplied with weights to arrive at weighted Zb for each system as follows:
- Weight of 1 for each percentage point of NRW reduction below 30% till 26% (Maximum 4)
- Weight of 3 for each percentage point of NRW reduction from 25% till 21% (Maximum 15)
- Weight of 5 for each percentage point of NRW reduction to 20% or below (Capped at 15)
Thus if NRW is 28%, Zb would be (30-28)*1 = 2 (eligible disbursement of US$ 20,000 for this scheme)
Mr. K. Manicka Raj -6- July 12, 2023
If NRW =25%, Zb will be (30-26)*1 + (26-25)*3 = 7 (eligible disbursement of US$ 70,000)
If NRW = 18, Zb will be (30-26)*1 + (26-21)*3 + (21-18)*5 = 4 + 15 + 15 = 34 (US$ 340,000)
The NRW will be rounded off to the nearest integer. NRW evolution will be monitored using actual number (not rounded) and the difference
from one quarter to the next will be rounded to the nearest integer (0.4 is rounded to 0 and 0.5 is rounded to 1).
A water supply system will be eligible for incentive every year if NRW is maintained below the contractual and policy target of 30%. A water
system will be incentivized to improve performance from the previous quarter, but a system maintaining same or lower NRW level from the
previous quarter in the same year will not be eligible for additional incentive. The incentive calculation is reset and starts again each year.
Tentative Allocated Amount in US$ million (Total
1.3 5 5.7
US$ 12m)
Mr. K. Manicka Raj -7- July 12, 2023
Annexure II
Revised Results Framework of the Program
India: Uttarakhand Water Supply Program for Peri-Urban Areas
Program Development Objective: To increase access to improved water supply services in peri-urban areas in Uttarakhand
Target Values Responsibili
PDO Level Results Unit of Data Source/
Core
Baseline Frequency ty for Data
DLI
Indicators Measure Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Methodology
Collection
PDO Indicator 1: (a) Number 0 0 38,076 134,300 436,800 436,800 Annual MIS Reports SWSM/SPSU,
(a) Number of people of people from UJN and UJS, UJN
receiving improved (cumulative) UJS; physical
water supply services survey on
in peri-urban areas; sample basis
(b) Number of people
receiving improved ☒ ☐
(b) Number 0 0 19,038 67,150 218,400 218,400 Annual MIS Reports SWSM/SPSU,
water supply services of people – from UJN and UJS, UJN
in peri-urban areas – female UJS; physical
female (cumulative) survey on
sample basis
PDO Indicator 2: (a) Number 0 0 104,260 226,710 436,800 436,800 Annual MIS Reports
(a)Number of of from UJN and SWSM/SPSU,
beneficiaries beneficiaries UJS; physical UJS, UJN
(cumulative) survey on
(b) Number of sample basis
beneficiaries- female ☒ (b) Number SWSM/SPSU,
of 0 0 52,130 113,355 218,400 218,400 Annual UJS, UJN
beneficiaries
– female
(cumulative)
PDO Indicator 3: ☐ Number of 0 0 0 5 10 22 22 22 Annual Annual Report SWSM/SPSU
Number of peri-urban Peri-urban of SWSM
areas with improved areas
policy, planning and ☒
M&E systems
implemented
PDO Indicator 4: ☐ ☐ Number of 0 0 0 0 0 4 11 20 Annual Annual Report SWSM/SPSU
Number of schemes Peri-urban of SWSM
that provided water areas
supply services for at
Mr. K. Manicka Raj -8- July 12, 2023
least one year with a
minimum of sixteen
(16) hours of supply
per day for at least three
hundred (300) days
over the course of a
Year
Target Values Responsibility
Core
DLI
Intermediate Unit of Data Source/
Baseline Frequency for Data
Results Indicators Measure Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Methodology
Collection
Results Area 1: Increased access to improved water supply services in peri-urban areas
Intermediate Number of 0 0 0 0 9,153 26,860 87,757 87,757 Annual MIS UJS, UJN,
Results Indicator connections Reports SWSM/SPSU,
1.1: Number of (cumulative) from UJN and IVA
water connections and UJS;
providing improved ☐ ☒
physical
water supply survey on
services in peri- sample basis
urban areas
Intermediate TSI score 0 0 0 0 0 29.6 61.7 81.4 Annual MIS UJS, UJN,
Results Indicator for water Reports SWSM/SPSU,
1.2: Sustainability supply from UJN and IVA
of water supply ☐ ☒ systems in and UJS;
service delivery in peri-urban physical
peri-urban areas areas survey on
sample basis
Intermediate Percentage No report 0 0 70% 70% 70% Annual IVA Report IVA
Results Indicator on
1.3: Customer customer
satisfaction with ☐ ☒ satisfaction
improved water
supply services
Intermediate Hours 0 0 0 0.5 0.5 0.5 Annual IVA Report IVA
Results Indicator
1.4: Number of
hours per day per ☐ ☐
household saved due
to water connection
– female
Mr. K. Manicka Raj -9- July 12, 2023
Intermediate Number 0 0 0 0 0 7 11 16 Annual MIS UJS, UJN,
Results Indicator Reports SWSM/SPSU,
1.5: Number of from UJN and IVA
schemes that meet ☐ ☒ and UJS
100% O&M cost
recovery
Intermediate Number 0 0 0 0 0 7 11 20 Annual MIS UJS, UJN,
Results Indicator Reports SWSM/SPSU,
1.6: Number of from UJN and IVA
water supply and UJS
systems that ☐ ☒
maintains efficiency
of water supply
service delivery
Results Area 2: Improved policy, planning and M&E systems for water supply program for peri-urban areas
Intermediate Actions to No specific Policy Annual Annual SWSM/SPSU
Results Indicator improve water adopted Report of
2.1: Improved policy supply state- SWSM
policy for water ☐ ☒
policy for wide by
supply program in peri-urban GoUK
peri-urban areas areas
Intermediate ☒ Actions to Existing Define M&E M&E M&E M&E plan M&E Annual Annual SWSM/SPSU
Results Indicator improve M&E M&E system plan plan implemente plan Report of
2.2: Strengthened M&E system is needs designed impleme impleme d in 15 Peri- implemen SWSM
M&E systems for systems limited in and nted in nted in 7 urban ted in 22
water supply scope and prepare at least 4 Peri- Areas; plan peri
program in peri- does not impleme Peri- urban reviewed urban
urban areas cover per- ntation urban Areas identifying areas
urban plan Areas future needs
areas and change
Intermediate ☐ ☒ No. of 0 0 2 3 3 3 3 3 Annual Annual SWSM/SPSU
Results Indicator master- Report of
2.3: Number of plans SWSM
approved master-plans (cumulative)
for water supply in
peri-urban areas
Intermediate Annual No report Annual Annual Annual Annual Annual Annual Annual SWSM/SPSU
Results Indicator Report on service report report report report report Report of
2.4: Annual report performan prepared prepare prepare prepared prepared SWSM
on water services ☐ ☒
ce and d and d and and and
performance in peri- published publishe publishe published published
urban areas d d
Mr. K. Manicka Raj -10- July 12, 2023
Intermediate Number 0 5 10 15 20 25 30 30 Annual MIS UJS, UJN,
Results Indicator Reports SWSM/SPSU,
2.5: Number of from UJN and IVA
training programs and UJS
for women to ☐ ☐
enhance their
capacity for
involvement in
water supply prog
Intermediate percentage 2 2 5 8 15 20 20 20 Annual Annual SWSM/SPSU
Results Indicator staff Report of
2.6: Percentage of SWSM
women staff ☐ ☐
employed by sector
agencies