Supplemental Letter
STATE OF HIMACHAL PRADESH
November 26, 2021
International Bank for Reconstruction and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
INDIA: Loan No. 9295-IN
(Shimla-Himachal Pradesh Water Supply and Sewerage Services
Improvement Program)
Performance Monitoring Indicators
Dear Sirs and Mesdames:
We refer to Section III.A of Schedule 2 to the Loan Agreement of even date between India and the
International Bank for Reconstruction and Development (Bank) and Section III.A of Schedule 1 to the
Program Agreement.
Unless otherwise agreed with the Bank, we shall monitor and evaluate implementation of the
Program in accordance with the Performance Monitoring Indicators attached to this letter.
Very truly yours,
STATE OF HIMACHAL PRADESH
By_______________________
Authorized Representative
Attachment – Performance Monitoring Indicators
Results Framework
COUNTRY: India
Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program (PforR)
Program Development Objective(s)
The PDO is to strengthen the operational and financial performance of the SJPNL Utility and improve access to water supply and sewerage services in
Shimla City.
ESULT_FRAME_T BL_PD O
Program Development Objective Indicators by Objectives/Outcomes
Indicator Name DLI Baseline Intermediate Targets End Target
1 2 3 4
Support the GoHP institutional program for improving WSS services that are efficient and accountable
SJPNL strengthened as an All financial and All financial and All financial and All financial and All financial and
WSS company
autonomous WSS Company managerial decisions managerial decisions managerial decisions managerial decisions managerial decisions
established
(Text) taken by the BoD taken by the BoD taken by the BoD taken by the BoD taken by the BoD
SJPNL achieves operational
efficiency and financial see sub-indicators see sub-indicators
sustainability (Text)
SJPNL improves energy Energy consumption per
Reduces to 12.5 KWH Reduces to 12.0 KWH Reduces to 11.5 KWH Reduces to 11.0 KWH Reduces to 10.4 KWH
efficiency by 20% (Text) KL of water is 13 KWH.
SJPNL reduces Non-
To be determined in first NRW is 3.75% less than NRW is 7.5% less than NRW is 11.25% less than NRW is 15% less than
Revenue-Water by 15% Baseline determined
year baseline baseline baseline baseline
(Text)
O&M Cost Recovery in
120% 131% 142% 153% 164% 175%
water distribution (Text)
Number of people benefitting
DLI 7 see sub indicators see sub indicators
from improved WSS services
ESULT_FRAME_T BL_PD O
Program Development Objective Indicators by Objectives/Outcomes
Indicator Name DLI Baseline Intermediate Targets End Target
1 2 3 4
(Text)
(i) Number of people having
access to continuous water 0.00 0.00 850,000.00 1,700,000.00 2,550,000.00 3,400,000.00
supply (Number)
(ii) Number of additional
people provided with 0.00 272,000.00 544,000.00 816,000.00 1,088,000.00 1,360,000.00
sewerage services. (Number)
Intermediate Results Indicator by Results Areas
RESULT_FRAME_T BL_ IO
Indicator Name DLI Baseline Intermediate Targets End Target
1 2 3 4
Improved governance, managerial and financial autonomy of SJPNL
At least 80% of SJPNL 20% of SJPNL employees 40% of SJPNL employees 60% of SJPNL employees 80% of SJPNL employees
SJPNL prepares and
employees receive incentives No incentive policy for receive incentives as per receive incentives as per receive incentives as per receive incentives as per
adopts performance
as per the performance SJPNL employees the performance the performance the performance the performance
incentive policy.
incentive policy. (Text) incentive policy. incentive policy. incentive policy incentive policy.
At least 30% women employed
as contractual staff in SJPNL. 20% At least 25% At least 30% At least 30% At least 30% At least 30%
(Text)
SJPNL implements Performance based SJPNL awards Completion of Completion of Completion of Completion of
performance-based payments contract for intra city performance-based performance audit of performance audit of performance audit of performance audit of the
to the private water supply water distribution under contract for intra city the Operator through an the Operator through an the Operator through an Operator through an
operator (Text) preparation water distribution independent agency independent agency independent agency independent agency
Five-year business plan SJPNL Business Plan SJPNL Business Plan SJPNL Business Plan SJPNL Business Plan SJPNL Business Plan
No Strategic Business Plan
approved and adopted (Text) Adopted Adopted Adopted Adopted Adopted
HR policies reviewed and
HR Gender Policy in HR Gender Policy in HR Gender Policy in
revised to promote gender No HR Gender policy No HR Gender policy HR Gender Policy in place
place place place
equality in the workplace
RESULT_FRAME_T BL_ IO
Indicator Name DLI Baseline Intermediate Targets End Target
1 2 3 4
(Text)
Improved efficiency, financial sustainability and customer accountability
SJPNL redresses at least SJPNL redresses at least SJPNL redresses at least SJPNL redresses at least SJPNL redresses at least
SJPNL redresses at least 90%
Grievance redressal 90% WSS grievances 90% WSS grievances 90% WSS grievances 90% WSS grievances 90% WSS grievances
WSS grievances within the
system exists within the specified within the specified within the specified within the specified within the specified
specified period (Text)
period period period period period
Percentage of 24 / 7 customers
billed on volumetric basis 0% 10% 30% 40% 80% At least 90%
(Text)
SJPNL scores at least 70% in Pilot citizen satisfaction SJPNL achieving at least SJPNL achieving at least SJPNL achieving at least SJPNL achieving at least SJPNL achieving at least
customer satisfaction survey survey completed in 70% satisfaction score in 70% satisfaction score in 70% satisfaction score in 70% satisfaction score in 70% satisfaction score in
(Text) 2019-20. citizen feedback survey citizen feedback survey citizen feedback survey citizen feedback survey citizen feedback survey
Improved water supply and sewerage services
Percentage of water quality
samples meeting standards 98.00 98.00 98.00 98.00 98.00 98.00
(Percentage) (Percentage)
Percentage of STP effluent
samples meeting standards 98.00 98.00 98.00 98.00 98.00 98.00
(Percentage) (Percentage)
Monitoring & Evaluation Plan: PDO Indicators
Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
A. SJPNL Board of Directors
or the MD cum CEO takes SJPNL will maintain a
all managerial and financial record of all the matters
SJPNL M&E
SJPNL strengthened as an autonomous decisions. Annual which are referred to SJPNL.
System.
WSS Company the GoHP for decisions.
(a) Managerial
decisions pertain to all
project management
decisions, operational
decisions, procurement
decisions and HR policy
decisions.
(b) Financial decisions
pertain to all financial
management decisions and
commercial decisions
related to billing and
collection, apart from tariff.
The operational efficiency
refers to energy efficiency
SJPNL achieves
improvement, NRW SJPNL to maintain
operational efficiency
SJPNL achieves operational efficiency reduction and Annual SJPNL records and IVA to
and financial
and financial sustainability improvement in O&M cost verify.
sustainability
recovery (see sub-
indicators).
Energy efficiency (KWH
/KL) in water supply is
the ratio of the energy
Energy efficiency consumed (KWH) for
improvement for water water production and SJPNL to maintain
supply system refers to distribution to the records and IVA to verify
SJPNL improves energy efficiency by Annual SJPNL
reduction in per unit volume of water as this indicator is also a
20%
energy consumption for delivered (KL) to the DLI.
water delivered at the main balancing
balancing reservoir reservoir.
The information on
energy consumption will
be based on electricity
bills for water
production and
distribution systems. The
information on volume
of water delivered for
distribution (KL) at the
main balancing reservoir
will be based on
measurement at the
outlet of main balancing
reservoir for the same
period. SJPNL will
update the data in the
M&E system, based on
which Energy Efficiency
will be calculated.
The total electricity bill
(in Rs) will be calculated
taking into consideration
the power costs, the
energy charges such as
demand charges, peak
hour charges and the
power factor. The total
electicity bill will be
divided by the unit rate
per KWH of energy for
normal hours as per
tariff order of Himachal
Pradesh Electricity
Regulatory Commission,
to get the equivalent
KWH for calculating
energy efficiency
The volume of water
delivered at the main
balancing reservoir will
be meaured at the inlet
of the main balancing
reservoir on daily basis.
The volume of water
billed to the consumers
NRW will be calculated as will be measured by
the ratio of volume of SJPNL on monthly basis
water delivered at the through consumption
main balancing reservoir meters.
less volume of water billed Where consumption is
to the consumers for the not metered, SJPNL will
same period to the volume estimate consumption SJPNL to maintain
of water delivered at the on sample basis (thrice) records and IVA to verify
SJPNL reduces Non-Revenue-Water by Annual SJPNL
main balancing reservoir in every year. as this indicator is also a
15%
the same period. NRW SJPNL will establish the DLI.
reduction includes baseline for NRW in the
reduction in (a) physical first year of the
(or real) losses, (b) Program.
commercial (or apparent) SJPNL will update the
losses, and (c) unbilled data in the M&E system,
authorized consumption in based on which
water supply. NRW will be calculated.
IVA will verify the NRW
data recorded in the
M&E system on annual
basis. IVA will verify the
NRW data submitted by
the private operator to
SJPNL. In addition IVA
will verify on sample
basis bulk water
metering and consumer
metering data available
on the M & E system.
O&M Cost Recovery for
water distribution is
expressed as percentage of
revenue from water supply SJPNL will update both
to the cost of operating cost and revenue data in
and maintaining water the M&E system, based
distribution services. on which O & M cost
SJPNL’s revenue from recovery will be
water supply include calculated. SJPNL will
revenue from water supply segregate shared costs
in SMC area and revenue between bulk water
from supply of bulk water supply, water
to Jal Shakti Vibhag, distribution and sewage SJPNL to maintain
commercial institutions services, in order to records and IVA to verify
O&M Cost Recovery in water Annual SJPNL
and other housing societies arrive at the cost of as this indicator is also a
distribution
in peri urban areas of water distribution DLI.
Shimla. SJPNL’s cost of Revenue for water
operating and maintaining supply will be obtained
water distribution system from M & E system and
include operator payments will exclude any revenue
(staff costs, salaries, for sewage services. IVA
overheads etc.), electricity will verify the O&M cost
costs, chemicals and recovery data recorded
consumables, repair and in the M&E system on
maintenance, annual basis.
administrative expenses
etc. Cost of sewage
services and treated bulk
water supply to Shimla (till
the balancing reservoir) are
excluded. Revenue from
sewage services is excluded
This refers to the number SJPNL will maintain the
of people benefiting from following records as a
improved WSS services. part of its M&E system:
This comprises of the 1. List of water
following categories – (a) supply connections
Residential population, and including any new
(b) Tourist population. connections and
discontinued
Improved WSS service connections on a
refers to (a) Provision of monthly basis.
continuous water supply, 2. Data on hours of
and (b) Provision of water supplied at pre-
functional sewerage determined
connections. measurement points in
SJPNL to maintain
the network.
Number of people benefitting from Annual SJPNL records and IVA to
(a) Provision of 3. Number of
improved WSS services verify.
continuous water supply tourists from the
refers to a water supply Department of Tourism,
connection providing water GoHP (on an annual
supply for at least 20 hours basis)
a day, for a minimum of 4. List of sewerage
330 days in the year. This connections including
would also apply to new any new connections on
connections providing at a monthly basis.
least 30 days of continuous IVA will verify the data
water supply. recorded in the M&E
system on annual basis.
(b) Provision of a In addition, IVA will
functional sewerage verify the data on water
connections refers to a supply and sewerage
sewerage connection connections from the
which is connected to a billing and collection
sewerage network software, data on hours
of water supply from the
DMA operator/ SJPNL
manager and data on
tourists from
information published
by Department of
Tourism.
1. Data on
pressure and
hours of water
supply at pre-
determined
measurement
Continuous water supply points in the
refers to water supplied for distribution
at least 20 hours a day, for network.
a minimum of 330 days in 2. Number of
SJPNL to maintain
the year. This would also connections
records and IVA to verify
(i) Number of people having access to apply to new connections Annual SJPNL serving resident
as this indicator is also a
continuous water supply providing at least 30 days and tourist
DLI.
of continuous water population.
supply. Number of people 3. Number of
benefitting will include people
both resident and tourist benefitting from
population. continuous
water supply
including
residents and
tourists.
Each water connection is
assumed to benefit 98
residents and tourists
IVA will review data
from the M&E system,
billing and collection
system
and independent audit
reports of Operator
performance.
Access to sewerage SJPNL will maintain the
services refers to a following records as a
sewerage connection part of its M&E system:
which is connected to the 1. Number of
sewerage network. A new sewerage
connection would count connections
towards achievement if it including any
has been provided with new connections
sewerage services for at on a monthly
least 30 days in the year. basis serving
Number of people both resident SJPNL to maintain
benefitting from sewerage and tourist records and IVA to verify
(ii) Number of additional people Annual SJPNL
services will include both population. as this indicator is also a
provided with sewerage services.
resident and tourist 2. Number of DLI.
population. people having
access to
While there are 2.04 sewerage
million people benefiting services.
from existing sewerage 3. Day-wise record
services at present, the of sewage
baseline and annual targets volumes
refer to the cumulative received at STPs.
number of additional Each sewerage
people provided with connection is assumed
sewerage services (i.e. 0 to benefit 98 residents
additional people at and tourists
baseline rising up to a total IVA will verify the
cumulative target of records on the number
1,360,000 additional of people benefitting
persons benefitting from from sewerage services
sewerage services under as per the M&E
the project). Under these system. IVA will verify
targets, each year 272,000 the records from the
new people would gain billing and collection
access to sewerage software. IVA will verify
services. the records of the
volume of sewage
received at STP through
the M & E system to
confirm the additional
flow of sewage into
STPs.
.
.
Monitoring & Evaluation Plan: Intermediate Results Indicators
Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
1. SJPNL will obtain SJPNL will use the
approval from BoD and performance incentive
implement a policy for policy for staff approved
performance linked by the BoD. SJPNL will
At least 80% of SJPNL employees receive incentive for managers, maintain the records of SJPNL to maintain
Annual SJPNL
incentives as per the performance engineers, and executives. the meeting of the records
incentive policy. The policy will include: (a) Board in form of minutes
Corpus of funds available of the meeting. The HR
to SJPNL for distribution as Department of SJPNL
performance linked will maintain the records
Incentive, and on implementation of
methodology for policy. The HR
calculating this corpus; (b) Department of SJPNL
Eligibility and normative will prepare annual
allocation of the corpus report on performance
towards individual evaluation of
employees including on-roll employees. HR
and contractual Department of SJPNL
employees; (c) will verify the total
Performance targets to be number of employees to
met by each employee; (d) whom the performance
Methodology, including incentive policy is
individual performance, applicable and verify the
unit performance, and number of employees
SJPNL performance; (e) who have received the
Linkage between performance incentive.
performance evaluation Repeat instances of an
and the incentive payable employee receiving
to the employee; (f) performance incentive is
Procedure for grievance eligible to be counted
redressal related to separately towards
performance incentive. achievement.
2. SJPNL will prepare
annual report on
performance evaluation of
employees providing
details of (a) corpus
available for distribution,
(b) normative allocation of
corpus to each employee,
(c) performance score of
each employee, and (d)
incentive distributed to the
employee based on
performance score.
During the Program period,
at least 80% of the number
of employees to whom the
performance incentive
policy is applicable should
have received performance
incentive as per the
performance incentive
policy and evaluation.
SJPNL will increase the
share of contractual
women employees
This indicator refers to the
working in SJPNL. SJPNL
percentage share of SJPNL to maintain
At least 30% women employed as Annual SJPNL will report using the
women employees to the records.
contractual staff in SJPNL. data provided by the HR
total contractual
Department of SJPNL
employees in SJPNL.
across all functions of
SJPNL
Performance based SJPNL will enter into a
contract is an agreement or performance-based
contract signed between contract for water
SJPNL and a private supply distribution with As this is also a DLI, IVA
operator for achieving a a private operator. will verify the agreement
specified level of Contract to signed with the private
SJPNL implements performance-based performance which will include service delivery operators and confirm
Annual SJPNL
payments to the private water supply include service delivery standards listed above . that service delivery
operator standards for (a) continuity SJPNL will carry out an standards listed above
of water supply, (b) NRW, annual performance are included in the
(c) metering and billing, audit of the operator contract.
and (d) grievance redressal. through an independent
agency. The scope of the
The operator’s audit will be as per the
remuneration will be linked terms of the contract
to performance in the and will include
above mentioned areas verification of annual
and the performance of the performance targets of
operator will be audited the Operator.
through an independent SJPNL is expected to
agency as per the contract. complete at least three
annual performance
audits during the
Program period.
The 5-year business plan
comprises of the following:
(a) Service Delivery
Improvement targets
(b) Operational
Efficiency (Energy
Efficiency & NRW control)
targets SJPNL will prepare a five
(c) Capital Investment - year Business plan
Plan which will be approved
(d) Organizational and adopted by the BoD
Five-year business plan approved and Structure and Annual Staff Annual SJPNL SJPNL will maintain the SJPNL
adopted Plan records of the meeting
(e) Revenue of the Board on the
projections including year business plan in form of
wise projected tariff and minutes of the meeting.
demand
(f) Cash flow
projections with cost
Recovery & subsidy
requirements
(g) Systems for
financial Management,
Customer Grievance
Redressal and M&E.
(h) Capacity building
plan
(i) Commitments from
stakeholders for financial
support
SJPNL will develop a HR Approved
HR policies reviewed and revised to Review of Approved
gender policy to promote Annual SJPNL HR SJPNL
promote gender equality in the SJPNL HR Policy
gender equality in the Policy
workplace
workplace.
SJPNL will maintain
records of grievance
redressal in its M&E
system, including (a)
time of grievance, (b)
category of grievance,
(c) time taken for
The grievance redressal redressal as per SJPNL
SJPNL to
mechanism will be part of records, (d) time of
maintain
the M&E system of SJPNL. confirmation of
records of SJPNL to maintain
SJPNL redresses at least 90% WSS It will include the time limit Annual redressal by cross
grievance records in M&E System.
grievances within the specified period for redressal for various verification with a
redressal in
categories of grievances as sample of customers,
M&E system.
per the citizen’s charter for and (e) status of
SJPNL. grievances outstanding
or closed without
redressal. The annual
report of SJPNL will
contain a grievance
redressal report
disclosing the
percentage of grievances
redressed within 24
hours as per stipulated
time period.
SJPNL will maintain the
following records as a
part of its M&E system:
1. List of water
24 / 7 customers defined as
supply
customers having access to
connections
continuous water supply.
including any
new connections
Provision of continuous
and
water supply refers to a
discontinued
water supply connection
connections, on
providing water supply for
a monthly basis.
at least 20 hours a day, for SJPNL to maintain
2. Data on hours of
a minimum of 330 days in records in M&E system
water supplied
Percentage of 24 / 7 customers billed on the year. This would also Annual SJPNL on percentage of 24 / 7
at pre-
volumetric basis apply to new connections customers billed on
determined
providing at least 30 days volumetric basis.
measurement
of continuous water
points in the
supply.
network.
3. Number of
The percentage of
connections
connections billed on
billed on
volumetric basis will be
volumetric basis.
considered for measuring
SJPNL will maintain the
this indicator
data on billing and
collection from water
supply connections in
the billing and collection
software and M&E
system.
IVA will verify the
percentage of customers
billed on volumetric
basis through the billing
& collection software
and the M & E system
Satisfaction score is
measured through citizen
feedback survey conducted
by SJPNL annually to
determine the current
levels of WSS service
quality and citizen
satisfaction. The survey
SJPNL will publish the
would focus on (a) access
Satisfaction methodology for citizen
to water supply and
Survey satisfaction survey and
SJPNL scores at least 70% in customer sewerage services, (b) Annual SJPNL
implemented disclose the results
satisfaction survey water quality and quantity,
by SJPNL publicly.
(c) reliability and
affordability, (d) customer
service related to WSS
services, and (e) willingness
to use e-services. Citizen
satisfaction would be
measured based on a scale
of 1-10, with 1 indicating
lowest satisfaction and 10
indicating full satisfaction.
Water quality samples The water distribution
SJPNL to maintain
Percentage of water quality samples meeting standards refer to Annual SJPNL operator appointed by
records in M&E system.
meeting standards (Percentage) the number of water SJPNL under the
quality samples meeting performance based
the drinking water quality contract will maintain
standards specified in the day-wise record of
CPHEEO Guidelines and IS: the quality of water
10500. supplied at various
locations of the water
supply network and the
same will be recorded in
the M&E system.
SJPNL will verify the
quality of water supplied
based on the reports
submitted by the
operator for the
performance standard
compliance and
independent tests
carried out by SJPNL.
The operator of the STP
will maintain day-wise
record of the treated
effluent quality
STP effluent samples standards and the same
meeting standards refer to will be recorded in the
the number of STP effluent M&E system. SJPNL to maintain
Percentage of STP effluent samples Annual SJPNL
quality samples meeting SJPNL will verify the records in M&E system.
meeting standards (Percentage)
the effluent quality quality of treated
standards specified in effluent based on the
CPHEEO Guidelines. reports submitted by the
operator and
independent tests
carried out by SJPNL.
.
ANNEX 3. DISBURSEMENT LINKED INDICATORS, DISBURSEMENT ARRANGEMENTS AND VERIFICATION PROTOCOLS
.
Disbursement Linked Indicators Matrix
DLI_T BL_MATRI X
DLI 1 SJPNL implements performance-based payments to the private water supply operator
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Output No Text 18.80 12.00
Period Value Allocated Amount (USD) Formula
Baseline Performance based contract for intra city water
distribution under preparation
Year 1 Yes 10.60 10.6 Mn USD on signing of the
performance based contract
Year 2 Yes 4.10 4.1 Mn USD on completion of
performance audit of the Operator
through an independent agency
Year 3 Yes 4.10 4.1 Mn USD on completion of
performance audit of the Operator
through an independent agency
Year 4 No 0.00 0.00
Year 5 No 0.00 0.00
DLI_T BL_MATRI X
DLI 2 SJPNL improves energy efficiency in water supply by 20%
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Outcome Yes Text 19.20 12.00
Period Value Allocated Amount (USD) Formula
Baseline Energy consumption is 13 KWH per KL of water
delivered at the balancing reservoir.
Year 1 12.5 KWH per KL 3.70 7.4 mn USD for every unit reduction
in KWH per KL of water delivered at
the balancing reservoir relative to
the preceding year
Year 2 12.0 KWH per KL 3.70 7.4 mn USD for every unit reduction
in KWH per KL of water delivered at
the balancing reservoir relative to
the preceding year
Year 3 11.5 KWH per KL 3.70 7.4 mn USD for every unit reduction
in KWH per KL of water delivered at
the balancing reservoir relative to
the preceding year
Year 4 11.0 KWH per KL 3.70 7.4 mn USD for every unit reduction
in KWH per KL of water delivered at
the balancing reservoir relative to
the preceding year
Year 5 10.4 KWH per KL 4.40 7.4 mn USD for every unit reduction
in KWH per KL of water delivered at
the balancing reservoir relative to
the preceding year
DLI_T BL_MATRI X
DLI 3 SJPNL reduces Non-Revenue-Water by 15%
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Outcome Yes Text 19.20 12.00
Period Value Allocated Amount (USD) Formula
Baseline To be determined in the first year
Year 1 Baseline determined 0.00 0.00
Year 2 3.75% below baseline 4.80 US$ 1.28 mn for each additional 1%
reduction in NRW
Year 3 7.5% below baseline 4.80 US$ 1.28 mn for each additional 1%
reduction in NRW
Year 4 11.25% below baseline 4.80 US$ 1.28 mn for each additional 1%
reduction in NRW
Year 5 15% below baseline 4.80 US$ 1.28 mn for each additional 1%
reduction in NRW
DLI_T BL_MATRI X
DLI 4 SJPNL indexes tariff annually as per tariff policy
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Process No Text 19.20 12.00
Period Value Allocated Amount (USD) Formula
Baseline Tariff indexed on April 1, 2019
Year 1 Yes 3.84 3.84 mn USD if SJPNL indexes tariff
annually as per tariff policy
Year 2 Yes 3.84 3.84 mn USD if SJPNL indexes tariff
annually as per tariff policy
Year 3 Yes 3.84 3.84 mn USD if SJPNL indexes tariff
annually as per tariff policy
Year 4 Yes 3.84 3.84 mn USD if SJPNL indexes tariff
annually as per tariff policy
Year 5 Yes 3.84 3.84 mn USD if SJPNL indexes tariff
annually as per tariff policy
DLI_T BL_MATRI X
DLI 5 SJPNL achieves at least 175% O&M Cost Recovery in water distribution.
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Outcome Yes Text 19.20 12.00
Period Value Allocated Amount (USD) Formula
Baseline O&M Cost Recovery for water distribution is
120%
Year 1 131% 3.84 US$ 349,091 for each percentage
improvement in O & M cost
recovery in water distribution
Year 2 142% 3.84 US$ 349,091 for each percentage
improvement in O & M cost
recovery in water distribution
Year 3 153% 3.84 US$ 349,091 for each percentage
improvement in O & M cost
recovery in water distribution
Year 4 164% 3.84 US$ 349,091 for each percentage
improvement in O & M cost
recovery in water distribution
Year 5 175% 3.84 US$ 349,091 for each percentage
improvement in O & M cost
recovery in water distribution
DLI_T BL_MATRI X
DLI 6 SJPNL receives an annual performance score of at least 3 out of 5
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Output No Text 16.00 10.00
Period Value Allocated Amount (USD) Formula
Baseline Annual Performance Score of 3 out of 5
Year 1 SJPNL receives an annual performance score of at 3.20 US$ 3.2 mn if SJPNL receives an
least 3 out of 5 annual performance score of at
least 3 out of 5
Year 2 SJPNL receives an annual performance score of at 3.20 US$ 3.2 mn if SJPNL receives an
least 3 out of 5 annual performance score of at
least 3 out of 5
Year 3 SJPNL receives an annual performance score of at 3.20 US$ 3.2 mn if SJPNL receives an
least 3 out of 5 annual performance score of at
least 3 out of 5
Year 4 SJPNL receives an annual performance score of at 3.20 US$ 3.2 mn if SJPNL receives an
least 3 out of 5 annual performance score of at
least 3 out of 5
Year 5 SJPNL receives an annual performance score of at 3.20 US$ 3.2 mn if SJPNL receives an
least 3 out of 5 annual performance score of at
least 3 out of 5
DLI_T BL_MATRI X
DLI 7 Number of people benefitting from improved WSS services
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Outcome Yes Text 48.00 30.00
Period Value Allocated Amount (USD) Formula
Baseline see sub indicators
Year 1 see sub indicators 3.20 see sub indicators
Year 2 see sub indicators 8.65 see sub indicators
Year 3 see sub indicators 10.35 see sub indicators
Year 4 see sub indicators 12.05 see sub indicators
Year 5 see sub indicators 13.75 see sub indicators
DLI_T BL_MATRI X
DLI 7.1 Number of people having access to continuous water supply
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Outcome Yes Number 32.00 20.00
Period Value Allocated Amount (USD) Formula
Baseline 0.00
Year 1 0.00 0.00 -
Year 2 850,000.00 5.45 US$6.4118 per person with new
access to continuous water supply +
US$2 per person with maintained
access from previous year(s)
Year 3 1,700,000.00 7.15 US$6.4118 per person with new
access to continuous water supply +
US$2 per person with maintained
access from previous year(s)
Year 4 2,550,000.00 8.85 US$6.4118 per person with new
access to continuous water supply +
US$2 per person with maintained
access from previous year(s)
Year 5 3,400,000.00 10.55 US$6.4118 per person with new
access to continuous water supply +
US$2 per person with maintained
access from previous year(s)
DLI_T BL_MATRI X
DLI 7.2 Number of additional people provided with sewerage services
Type of DLI Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount
Outcome Yes Number 16.00 10.00
Period Value Allocated Amount (USD) Formula
Baseline 0.00
Year 1 272,000.00 3.20 11.764 US$ per additional person
provided with sewage services
compared to prior project year
Year 2 544,000.00 3.20 11.764 US$ per additional person
provided with sewage services
compared to prior project year
Year 3 816,000.00 3.20 11.764 US$ per additional person
provided with sewage services
compared to prior project year
Year 4 1,088,000.00 3.20 11.764 US$ per additional person
provided with sewage services
compared to prior project year
Year 5 1,360,000.00 3.20 11.764 US$ per additional person
provided with sewage services
compared to prior project year
.
.
Verification Protocol Table: Disbursement Linked Indicators
DLI_T BL_VERIFICATI ON
DLI 1 SJPNL implements performance-based payments to the private water supply operator
Performance based contract is an agreement or contract signed between SJPNL and a private operator for achieving a
specified level of performance which will include service delivery standards for (a) continuity of water supply, (b) NRW, (c)
Description
metering and billing, and (d) grievance redressal. The operator’s remuneration will be linked to performance in the above
mentioned areas and the performance of the operator will be audited through an independent agency as per the contract.
Data source/ Agency SJPNL
Verification Entity IVA
SJPNL will enter into a performance-based contract for water supply distribution with a private operator. IVA will verify the
agreement signed with the private operators and confirm that service delivery standards listed above are included in the
Procedure
contract.
DLI_T BL_VERIFICATI ON
DLI 2 SJPNL improves energy efficiency in water supply by 20%
Energy efficiency improvement for water supply system refers to reduction in per unit energy consumption per KL of water
Description
delivered at the balancing reservoir.
Data source/ Agency SJPNL
Verification Entity IVA
Energy efficiency (KWH /KL) in water supply is the ratio of the energy consumed (KWH) for water production and
distribution to the volume of water delivered (KL) to the main balancing reservoir.
The information on energy consumption will be based on electricity bills for water production and distribution systems. The
information on volume of water delivered for distribution (KL) at the main balancing reservoir will be based on
measurement at the outlet of main balancing reservoir for the same period. SJPNL will update the data in the M&E system,
Procedure based on which Energy Efficiency will be calculated.
The total electricity bill (in Rs) will be calculated taking into consideration the power costs, the energy charges such as
demand charges, peak hour charges and the power factor. The total electicity bill will be divided by the unit rate per KWH
of energy for normal hours as per tariff order of Himachal Pradesh Electricity Regulatory Commission, to get the equivalent
KWH for calculating energy efficiency.
SJPNL will update the data in the M&E system, based on which Energy Efficiency will be calculated.
IVA will verify the data recorded in the M&E system on annual basis. In addition, IVA will verify the Energy Efficiency data
submitted by the private operator to SJPNL.
In any year, the reduction achieved will be calculated taking the lowest of the annual average energy consumption achieved
in any of the earlier years as the reference point. Evaluation will be done once in a year.
Any shortfall or excess achievement can be adjusted in subsequent years subject to the overall cap for the DLI.
The cumulative disbursement in all years will not exceed the total disbursement allocated for the DLI.
DLI_T BL_VERIFICATI ON
DLI 3 SJPNL reduces Non-Revenue-Water by 15%
NRW will be calculated as the ratio of volume of water delivered at the main balancing reservoir less volume of water billed
to the consumers for the same period to the volume of water delivered at the main balancing reservoir in the same period.
NRW reduction includes reduction in (a) physical (or real) losses, (b) commercial (or apparent) losses, and (c) unbilled
Description
authorized consumption in water supply. Billed authorised consumption will include billed water supply to the SMC area
and billed bulk water supplied to Jal Sahkti Vibhag, commercial institutions and other housing societies in peri urban areas
of Shimla.
Data source/ Agency SJPNL
Verification Entity IVA
The volume of water delivered at the main balancing reservoir will be meaured at the inlet of the main balancing reservoir
on daily basis. The volume of water billed to the consumers will be measured by SJPNL on monthly basis through
consumption meters. Where consumption is not metered, SJPNL will estimate consumption on sample basis (thrice) every
year.
SJPNL will establish the baseline for NRW in the first year of the Program.
SJPNL will update the data in the M&E system, based on which NRW will be calculated.
Procedure
IVA will verify the NRW data recorded in the M&E system on annual basis. IVA will verify the NRW data submitted by the
private operator to SJPNL. In addition IVA will verify on sample basis bulk water metering and consumer metering data
available on the M & E system.
In any year, the reduction achieved will be calculated taking the lowest of the annual average NRW achieved in any of the
earlier years as the reference point. Evaluation will be done once in a year.
Any shortfall or excess achievement can be adjusted in subsequent years subject to the overall cap for the DLI.
The cumulative disbursement in all years will not exceed the total disbursement allocated for the DLI.
DLI_T BL_VERIFICATI ON
DLI 4 SJPNL indexes tariff annually as per tariff policy
Description Tariff will be indexed annually based on SJPNL’s tariff indexation policy.
Data source/ Agency SJPNL
Verification Entity IVA
SJPNL will implement the policy for annual tariff indexation as per the approved Cost Recovery, Tariff and Subsidy Policy.
SJPNL will maintain the record of government notification on tariff indexation.
IVA will verify that the tariff has been indexed as per the approved Cost Recovery, Tariff and Subsidy Policy annually and
Procedure
also verify SJPNL’s notification on effective tariff rates. IVA will verify from the M & E system and billing and collection
software that the indexed tariff has been applied in the water bills.
DLI_T BL_VERIFICATI ON
DLI 5 SJPNL achieves at least 175% O&M Cost Recovery in water distribution.
O&M Cost Recovery for water distribution is expressed as percentage of revenue from water supply to the cost of operating
and maintaining water distribution services. SJPNL’s revenue from water supply include revenue from water supply in SMC
area and revenue from supply of bulk water to Jal Shakti Vibhag, commercial institutions and other housing societies in peri
Description urban areas of Shimla. SJPNL’s cost of operating and maintaining water distribution system include operator payments (staff
costs, salaries, overheads etc), electricity costs, chemicals and consumables, repair and maintenance, administrative
expenses etc. Cost of sewage services and treated bulk water supply to Shimla (till the balancing reservoir) are excluded.
Revenue from sewage services is excluded.
Data source/ Agency SJPNL
Verification Entity IVA
SJPNL will update both cost and revenue data in the M&E system, based on which O & M cost recovery will be calculated.
SJPNL will segregate shared costs between bulk water supply, water distribution and sewage services, in order to arrive at
Procedure the cost of water distribution.
Revenue for water supply will be obtained from M & E system and will exclude any revenue for sewage services.
IVA will verify the O&M cost recovery data recorded in the M&E system on annual basis
DLI_T BL_VERIFICATI ON
DLI 6 SJPNL receives an annual performance score of at least 3 out of 5
The performance score is evaluated based on a methodology that covers the following key aspects of utility performance:
Description (a) Customer Service (30%); (b) Efficiency (20%); (c) Organizational Systems (20%); (d) Completion of Capital Investment
Plan (30%). SJPNL will receive an annual performance score between 1 and 5 based on these criteria .
Data source/ Agency The Independent Directors on the Board of SJPNL will lead the evaluation process with subsequent verification by the IVA.
Verification Entity The IVA will verify the score and its justification.
Annual evaluation of SJPNL's performance based on set criteria resulting in a score between 1 (lowest) to 5 (highest).
Methodology components (Customer Service, Efficiency, Organizational Systems, Completion of Capital Investment Plan)
Procedure will be informed by the SJPNL M&E system as well as key associated documents SJPNL will publish and disclose, including
audited financial statements, corporate governance compliance report, citizen report card and overall Annual Report.
DLI_T BL_VERIFICATI ON
DLI 7 Number of people benefitting from improved WSS services
This refers to the number of people benefiting from improved WSS services. This comprises of the following categories – (a)
Residential population, and (b) Tourist population. Improved WSS service refers to (a) Provision of continuous water supply,
and (b) Provision of functional sewerage connections. (a) Provision of continuous water supply refers to a water supply
Description
connection providing water supply for at least 20 hours a day, for a minimum of 330 days in the year. This would also apply
to new connections providing at least 30 days of continuous water supply. (b) Provision of a functional sewerage
connections refers to a sewerage connection which is connected to a sewerage network
Data source/ Agency see sub indicators
Verification Entity see sub indicators
see sub indicators
Procedure
DLI_T BL_VERIFICATI ON
DLI 7.1 Number of people having access to continuous water supply
Continuous water supply refers to water supplied for at least 20 hours a day, for a minimum of 330 days in the year. This
Description would also apply to new connections providing at least 30 days of continuous water supply. Number of people benefitting
will include both resident and tourist population. In the formula, "New Access" refers to persons newly provided with access
to continuous water supply in the respective year while "maintained access from previous year(s)" refers to persons still
benefitting from functional access to continued water supply from connections established under the project in prior years
Data source/ Agency SJPNL
Verification Entity IVA
SJPNL will maintain the following records as a part of its M&E system:
a. Data on pressure and hours of water supply at pre-determined measurement points in the distribution network.
b. Number of connections serving resident and tourist population.
c. Number of people benefitting from continuous water supply including residents and tourists.
Each water connection is assumed to benefit 98 residents and tourists
Procedure
IVA will review data from the M&E system, billing and collection system and independent audit reports of Operator
performance.
Any shortfall or excess achievement can be adjusted in subsequent years subject the overall cap for the DLI.
The cumulative disbursement in all years will not exceed the total disbursement allocated for the DLI.
DLI_T BL_VERIFICATI ON
DLI 7.2 Number of additional people provided with sewerage services
Access to sewerage services refers to a sewerage connection which is connected to the sewerage network. A new
connection would count towards achievement if it has been provided with sewerage services for at least 30 days in the
Description year. Number of people benefitting from sewerage services will include both resident and tourist population. As per the
formula, disbursements are linked to additional persons provided with sewage services compared to the prior project year
i.e. 272,000 per year under targeted values.
Data source/ Agency SJPNL
Verification Entity IVA
SJPNL will maintain the following records as a part of its M&E system:
1. Number of sewerage connections including any new connections on a monthly basis serving both resident and
tourist population.
Procedure 2. Number of people having access to sewerage services.
3. Day-wise record of sewage volumes received at STPs.
Each sewerage connection is assumed to benefit 98 residents and tourists
IVA will verify the records on the number of people benefitting from sewerage services as per the M&E system. IVA will
verify the records from the billing and collection software. IVA will verify the records of the volume of sewage received at
STP through the M & E system to confirm the additional flow of sewage into STPs.
Any shortfall or excess achievement can be adjusted in subsequent years subject the overall cap for the DLI.
The cumulative disbursement in all years will not exceed the total disbursement allocated for the DLI.
.