Crisis At The Delhi Jal Board Construction Essay

Raj Singh was remarkably brooding during his forenoon walk in his favourite park. Listening to the chirping of birds as the first beams of morning explosion through by and large calmed and prepared him mentally for the remainder of the twenty-four hours. Today, nevertheless he was unmindful to everything. He had a important presentation to do in forepart of several high ranking curates. As the Chief Executive Officer of Delhi Jal ( Water ) Board, the Utilities board responsible for supply of H2O to the occupants in his state ‘s capital metropolis, his advice today would transport great weight. The meeting that forenoon had been called by his foreman, the Chief Minister of Delhi, to take a important determination on whether or non to go on with the reforms initiated in the H2O distribution system in the metropolis.

In a flash he thought about how it had all begun – the realisation that there was a serious crisis caused by inefficient H2O direction, the hiring of adept advisers to happen a solution, the way of reform suggested by the experts and eventually the determination to privatise H2O distribution in the metropolis. But recently, tensenesss were mounting due to certain unanticipated events. He felt he was walking on a razor ‘s border. On one terminal his foremans were eager to repair the inefficiencies in his organisation and present piped H2O 24/7 to occupants while on the other side there were highly vocal public protests against the whole reform procedure. He was caught in a quandary: should he side with the ‘experts ‘ or should he pay attentiveness to the ‘Vox Populi ‘ ? In his custodies lay the relief for 1000000s of adust pharynxs or the seeds for a hereafter marked with H2O public violences. Mentally, for the umteenth clip, he recounted the play as it had unfolded in the past few months, trusting to be able to eventually do up his head on what had to be done following.

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ACT – I: Vanishing Water

New Delhi, the big and fast turning capital metropolis of India, had a serious H2O job. But the job was non merely that of H2O deficit. Indeed, situated on the Bankss of one of the largest North Indian Rivers, the mighty river Yamuna, New Delhi is blessed with an about perennial beginning of fresh H2O. Harmonizing to the official figures, the H2O intervention and supply capacity of Delhi Jal Board was 650 Million Gallons per Day ( MGD ) . DJB supplied H2O to around 19.24 hundred thousand families out of a sum of 25.54 lakh families in Delhi. i.e approximately 75 % of the population is provided piped H2O supply. The Master Plan of Delhi ( MPD ) 2001 prepared by The Central Public Health and Environmental Engineering Organisation ( CPHEEO ) and relied upon by policy shapers, prescribed a norm of 60 gallons per capita per twenty-four hours. By this yardstick, the H2O demand was 963 MGD, while handiness was merely 650 MGD. Therefore there was a deficit of about 313 MGD. ( Exhibits 1 & A ; 2 )



Quantity ( MGD )








Bhakra Storage





Ranney Wells/Tube Wellss ( Ground H2O )




Table: 1 Water Sources of Delhi

Beginning: Economic Survey of Delhi 2005-06

This deficit of 313 MGD was chiefly due to the inability of the Sonia Vihar Water Treatment Plant set up to utilize 300 cusecs of H2O from the river Ganga, to get down operation. Escapes in the grapevine providing the H2O from the river to the works had stalled its operation, doing the current crisis. Engineers were working to rectify the job, and it was expected that within the following 12 months an extra 250 MGD of H2O would be available to the metropolis.

But even with the bing supply of 650 MGD, there were jobs. When divided amongst the 15 million occupants of the metropolis, each individual ought to acquire 44 gallons of H2O per twenty-four hours. However, barely 50 % of this sum is really available to the people. So where does the about 300 MGD of H2O disappear every twenty-four hours?

( Exhibit 3: Watch Video of intelligence study from channel News Ten: ‘Water crisis in the National Capital ‘ ; hypertext transfer protocols: // v=OuQBMY6DQxU ; Duration 2:21 proceedingss )

The Water Mafia The vanishing H2O was a enigma merely on official records. It was common cognition that there was a big and powerful H2O Mafia at work. An unhallowed link between DJB functionaries, politicians and junior-grade contractors was responsible for syphoning off H2O from public H2O lines and selling to water-guzzlers like industries and 5-star hotels, at a immense premium. A local newspaper reported that an elective representative from one of Delhi ‘s preponderantly residential countries owned H2O oilers bearing societal public assistance mottos but really transporting illicitly tapped H2O for sale. The local occupants were cognizant of this booming belowground market but were helpless. One of the occupants interviewed by the newsman declined from uncovering the name of the proprietor who ran the H2O oilers in the country but admitted that they belonged to a politician. The intelligence study observed “ It is this H2O Mafia who in coaction with the enforcement cell of the DJB is maintaining the authorities taps dry ” .

Delhi Jal Board and the Government were cognizant of the H2O losingss caused by the inefficient H2O distribution web. The Economic Survey of Delhi for 2005-06 even carried a tabular array picturing the extent of the job:

Table: 2 The Water Trail

System Input Volume

100 %

Authorized Consumption

58 %

Billed Authorized Consumption

Billed Metered Consumption ( including H2O exported in majority )

13 %

Gross Water 50 %

Billed Unmetered Consumption

37 %

Unbilled Authorized Consumption

Unbilled Metered ingestion

0 %

Non-Revenue Water ( NRW ) 50 %

Unbilled Unmetered Consumption

8 %

Water Losses 42 %

Apparent Losses 2 %

Unauthorised Consumption

2 %

Metering Inaccuracies

0 %

Real Losses 40 %

Escape on Transmission Mains

16 %

Escape and Overflows at Utility ‘s Storage Tanks

0 %

Escape on Distribution Mains and Service Connections upto Point of Customer Metering

24 %

Beginning: Delhi Water Supply & A ; Sewerage Project Preparation Study Report

The realisation that Delhi ‘s job was non merely of H2O deficit per Se but besides due to bad H2O direction eventually made the Delhi Government embark on a way of reform of the Delhi Jal Board. The Delhi Jal Board had been constituted on 6th April, 1998 through an Act of the Delhi Legislative Assembly integrating the old Delhi Water Supply and Sewage Disposal Undertaking. It was responsible for the Production and Distribution of drinkable H2O after handling natural H2O from assorted beginnings like river Yamuna, Bhakhra Storage, Upper Ganga Canal & A ; Groundwater and it besides treated and disposed waste H2O. For distribution of H2O, Delhi was divided into 21 H2O zones, each headed by an Executive Engineer who was provided with a fixed sum of H2O and a fiscal budget for his zone. However these functionaries had small answerability and showed no involvement in bettering the H2O substructure in their zones. Their attitude was partially a consequence of the stiff bureaucratic construction which gave them small control over the fund usage in their zones.

Act II: The Solution attempted

To turn to the H2O supply direction jobs, in 1998, the DJB approached the World Bank for a loan. The Bank suggested that DJB foremost engage a adviser to propose basic reforms to be carried out and for this the Bank offered DJB a loan of $ 2.5 million. Accordingly DJB invited looks of involvement to which 35 advisers applied. After measuring the commands, a pool headed by Pricewaterhouse-Coopers ( PWC ) and including DHV Consultants and Tata Consulting Engineers was eventually engaged to carry on a survey and suggest reforms. They were to propose solutions to rage up efficiency by repairing the escapes of H2O and guaranting a 24 hour/7 yearss a hebdomad uninterrupted supply of H2O to the metropolis ‘s occupants. The advisers submitted their study in November 2004. In their study they made 3 chief recommendations:

Reorganize the bing H2O zones into smaller discrete, territory metered countries ( DMAs ) so that 24/7 supplies can be introduced on an incremental footing

Reduce Distribution losingss by presenting new direction constructs for distribution, doing zone directors responsible for all zonary H2O supply facets ( supply, distribution, metering, charge, leak sensing, fix, and public presentation ) .

Review the full transmittal and distribution system with a position to rationalization, improved operation and just distribution of bulk H2O supplies.

Accepting these recommendations, on a pilot footing Delhi Jal Board issued a call for stamps for two separate six-year direction contracts for the uninterrupted supply of drinkable H2O in two cardinal countries of Delhi. The contracts were intended to be awarded before December 2005 and the two zones would stand for around 12 % of the entire client base. The contract was to include, in each country: zoning, metering, leak decrease, H2O distribution and client dealingss direction. The cost of this ‘restructuring ‘ to DJB was estimated to be $ 246 million out of which $ 140 million was to be financed by the World Bank. With the betterment in DJB ‘s direction, it was hoped that the metropolis ‘s H2O substructure would eventually work expeditiously and be able to present a uninterrupted ( “ 24/7 ” ) supply in two of 21 zones in Delhi, as a pilot strategy for the whole metropolis.

The Delhi authorities applied to the World Bank for the loan and put the procedure in gesture. Not merely was the undertaking given top precedence for its declared aim but it was besides viewed uneasily by the authorities as a trial instance for PPP in conveying H2O reforms to India. The Indian authorities was acute to supply an attractive clime for abroad investors and Bankss for investings in its substructure. The bets were high and a batch depended on the success of this venture.

Act III: Dissenting Voices

Meanwhile, as DJB busied itself with the reform procedure, voices of concern and dissent were get downing to be raised. There were chiefly two chief groups who were oppugning the reform procedure: the conservationists and the Anti-corruption brigade.

The Environmentalists ‘ resistance

There already was a well-organized environmental motion against big dikes and multipurpose hydel undertakings. The dangers of ‘privatization ‘ of national H2O resources were now added to this docket. Earlier, DJB itself had faced such protests when its Sonia Vihar H2O intervention works, with a capacity of 635,000m3/d, was built by Degremont, a private sector company. Vandana Shiva, a outstanding conservationist and her administration, ‘Navdanya ‘ , had launched strong protests against the undertaking on the evidences of environmental unsustainability. Sing the proposed reforms in the Delhi Jal Board, Sunita Narain, another outstanding conservationist observed:

“ There is perfectly no appraisal of how much extra H2O will be needed if the strategy does so provide H2O for 24 hours. The workplan merely is that the private company will cut down the 50 per cent distribution losingss, and that this cured H2O will do good the difference. But once more, there is no apprehension of what these “ losingss ” are. Surely 50 per cent of Delhi ‘s H2O supply is non being siphoned off by stealers? From what small is known, it seems H2O losingss are about escapes from belowground connexions — H2O supply points. Which company, nevertheless efficient, will be able to retrofit all the belowground connexions?

Then there is the tariff inquiry. It is estimated it costs the authorities Rs 8-9 to provide 1,000 liters of H2O ; for this, it charges approximately Rs 2. Cipher knows what aggregation and disposal of sewerage costs, but it is estimated it is usually five times higher than H2O distribution costs. The new strategy reproduces these two farces. The authorities will be in charge of H2O duties, which it promises non to raise even if families use much more H2O. Besides,

the strategy does non include the aggregation of sewerage. In other words, more H2O will be supplied, which will non be paid for. More sewerage will be generated, which will non be paid for. A public H2O public-service corporation that is inefficient besides because it does non acquire paid will go even more burdened, poorer. In amount, this is nil but selective subsidization, for the richer people of the metropolis, in which the distributer will roll up a small from those who can pay. This is non denationalization. This is surely non reform.

Accusations of Corruptness

While the conservationists did arouse a batch of argument, a more serious menace to the DJB ‘s attempts came from a small known non-governmental organisation, ‘Parivartan ‘ ( intending ‘Change ‘ ) . Using the late legislated Right to Information Act by the Delhi authorities, this organisation sought and obtained legion paperss associating to the full reform procedure from the Delhi Jal Board. After size uping these paperss, Parivartan concluded that the strategy was damaging to the occupants of Delhi as it would take to an exponential addition in the monetary value of H2O. But more significantly, it besides leveled charges of corruptness and nepotism against the DJB and the World Bank. Making all the paperss public, Arvind Kejriwal the laminitis of Parivartan, accused the World Bank of act uponing the command procedure to favor Price Waterhouse-Coopers. He went on to province that the multi-million dollar contract was awarded to a Calcutta subordinate of PwC despite strong resistance from the Delhi Jal Board ( DJB ) , who systematically ranked PwC lower than other corporations during the three unit of ammunitions of command. Further Kejriwal accused the World Bank of arm distortion DJB to name for fresh commands when PwC had been ab initio rejected. Kejriwal observed, “ Despite reserves DJB cancelled the earlier rating and invited fresh commands. A new rating commission was formed to travel through the fiscal and proficient rating. The PwC once more failed to unclutter the rating trial. WB asked for elaborate tonss given by each member of the rating commission and later demanded that the tonss given by one member, RK Jain, be omitted as he had given low Markss to PwC. ”

These were serious allegations and caused a fad coercing Michael Carter, the World Bank Country Director, India, to react with a imperativeness statement on 29 July 2005. Defending the World Bank ‘s intercession in the contract command he observed, “ In order to guarantee that the development results for which its money is borrowed are achieved, the Bank has developed, with the concurrency of its members, a high set of criterions in countries such as procurance, fiscal direction, and environmental and societal precautions to which its borrowers commit. These are accepted as planetary benchmarks by its protagonists and critics likewise. . ..The innuendo that the Bank attempted to favor PwC is wholly unfounded-on the contrary, this is an first-class illustration of the Bank ‘s close monitoring of the procurance procedure to guarantee transparence and just competition. ”

Thereafter what followed was a really public exchange of accusals and counter accusals. Parivartan, in a missive ( Exhibit: 4 ) to World Bank President Paul Wolfowitz forthrightly accused the Bank of corruptness. They wrote, “ PWC lost in the normal command procedure non one time but thrice. However, the Bank functionaries intervened every clip. Finally PWC got the contract. World Bank over ruled strong protests from DJB and went in front against the wants of elective representativesaˆ¦

Some of the intercession appears to be misdemeanor of the footings and conditions applicable to this loan. It raises intuition whether the Bank is seeking to prefer certain companies through their intercession. ” Further, Parivartan besides questioned the function of the World Bank and value of its adept advice observing that “ wherever similar Bank initiated reforms were carried out in other developing states, H2O duties skyrocketed, H2O quality deteriorated, H2O was diverted from residential countries to amusement Parkss and hotels and supply to the hapless was cut off as they could non afford H2O. ”

Defending its actions, the World Bank wrote back inquiring Parivartan to compose to its anti-corruption wing in instance any incorrect making was alleged. Defending its actions and advice rendered to the Delhi Government, Michael Carter observed that, “ Delhi Jal Board, in its current manner of operation, is unable to run into the H2O and effluent demands of the people of Delhi, particularly of Delhi ‘s poorest citizens. Delhi with a per capita H2O handiness of more than 200 litres per twenty-four hours is able to supply its citizens hapless choice H2O for merely a few hours a twenty-four hours ; in Africa and West Asia there are metropoliss that are able to supply 24-hour supply with less than 150 litres per twenty-four hours ; and typically, European metropoliss provide uninterrupted supply with a per capita handiness runing from 150 to 200 litres. In my sentiment, this does propose that alteration is needed in Delhi – a position that I believe most citizens of Delhi and the Delhi Government portion. It is here that the Bank is willing to back up the Delhi authorities and DJB in originating the necessary reform procedure ” . ( Exhibit:5 )

Alternatively of guaranting that Delhi received 24-hour H2O supply Parivartan claimed that the reforms would really ensue in gaining ace net incomes for a few H2O companies. The common adult male would be left to pick the increased measures and a big subdivision of the hapless would be deprived of basic H2O installations. As per the strategy, the direction of each of Delhi ‘s 21 zones would be handed over to H2O companies which would roll up direction fees, technology consultancy fees and a fillip. Parivartan estimated that the direction fees to the ‘expert advisers ‘ entirely would work out to more than 25 million dollars a twelvemonth. Further, the duties in each H2O territory would be determined by the H2O company winning the contract for that country and as such there was possible for immense escalation of duties at the caprices of these companies. Parivartan calculated that if the reforms were carried out, a typical family will happen its H2O measures increasing five times over.

Following the lead of Navdanya and Privartan, assorted non-governmental administrations and Residents Welfare Associations come together in Delhi to organize the ‘Right to Water Campaign ‘ ( RWC ) to oppose the DJB ‘s undertaking. As the motion gathered steam, the militants demanded that the DJB should instantly retreat its loan application to the World Bank. Faced with mounting public force per unit area, the Delhi Government was forced to look into the affair. These were the pressing fortunes under which the Delhi Chief Minister called Raj Singh, the CEO of DJB to give a elaborate presentation and suggest the class of action to be taken.

( Exhibit 6: ‘Delhi Water Privatization Plan ( Part 1 ) ‘ , A Talk by Arvind Kejriwal, ‘Parivartan ‘ hypertext transfer protocol: // v=8XwiyWgZHMA ; Duration 9:22 proceedingss )

Act IV: The Options Re-considered

The ball now was on Raj Singh ‘s tribunal. Should he urge that the reforms continue and the promise of 24/7 H2O be kept. Or should he scurry the procedure and suggest options? What could the alternate options be? With the terrible H2O deficit, Raj Singh needed to be matter-of-fact. As the caput of DJB, he besides needed to maintain the involvement of his organisation in head. One by one, Raj Singh mentally considered the options open to him:

Options for DJB

The Winners

The Losers

Political Support

Time needed to implement

Make nil and allow the restructuring continue as planned.

DJB could go more efficient and distribution losingss may come down. In the terminal, occupants of Delhi could bask 24x7water.

If the conservationists were right, there could be serious ecological reverberations.

Besides, the poorer occupants may lose all entree to H2O.

Tricky. The charges of corruptness and perceptual experience of ‘bending backwards to delight the World Bank ‘ may be ballots.


Halt the reforms. Alternatively seek to conflict corruptness and H2O larcenies internally.

The Anti-Corruption anteroom.

Common People- Water deficits may still prevail.

Very small support. Politicians holding connexions with the H2O Mafia may oppose the move.

Medium /Long

Halt the organizational reforms and research alternate avenues to augment H2O supply.

The Environmentalists and the Anti-Privatization Brigade.

Common People- The escapes in H2O distribution would still go on.

DJB- Inefficiencies in distribution persist.

Very strong. No controversial determinations would be required.


Continue with the proposed reforms but scrap the on-going procedure and attack some other many-sided establishment for assistance.

Merely the Delhi Government comes out looking determined.

World Bank support for future undertakings would be dubious.

Citizens ‘ organic structures would still be dis-satisfied.

Residents will hold to wait longer for H2O.

Moderate Support.


Was there something else that Raj Singh was losing?

Act V: The End Game

( To be provided merely at the terminal of instance treatment )


Sheila puts H2O strategy on clasp

Sujay Mehdudia

Invites suggestions from experts, NGOs, people

A· Decision taken after run intoing with NGOs, societal militants

A· All World Bank recommendations besides put on clasp

New DELHI: Buckling under mounting public unfavorable judgment for yielding to force per unit area from the World Bank on denationalization of the H2O sector in Delhi, the Sheila Dikshit Government is understood to hold decided to set the full recommendations every bit good as the 24X7 H2O strategy on clasp for the clip being.

It has besides been decided to put the study in the public sphere and invite suggestions from experts, non-government administrations and people on the recommendations.

Beginnings in the Delhi Government said the determination non to travel in front with execution of the World Bank study recommendations prepared by private advisers Price Waterhouse Cooper for the H2O sector in Delhi was taken by Chief Minister Sheila Dikshit, who is besides the president of the Delhi Jal Board, after a meeting with a big figure of NGOs and societal militant and Magsaysay Award victor Aruna Roy.

`Open to suggestions ‘

Sheding her earlier reluctance and resistance, Ms. Dikshit is besides understood to hold issued waies to set all the recommendations on clasp, including the bill of exchange study on the web site, throwing the whole issue unfastened to public argument. “ We are non that stupid to accept all the recommendations of the World Bank. We are unfastened to suggestions and other ways to cover with this serious state of affairs in the Capital. If people and voluntary groups can make that, it is all the more welcome, ” Ms.Dikshit is understood to hold told the deputation.

Along with the other recommendations including hiking in H2O duties, splitting of assorted zones and privatizing full distribution and charge web, the pilot undertaking of 24X7 H2O supply strategy for Zone II and III in South Delhi has besides been put on clasp boulder clay everything is sorted out.

The strategy was to be implemented, harmonizing to the program, this month itself but was termed as a sell-out by the voluntary groups and H2O militants.

The affair had besides attracted the attending of Congress president Sonia Gandhi. Planing Commission Deputy Chairman Montek Singh Ahluwalia reportedly felt that NGOs and societal militants on H2O reforms should be satisfied before any blessing was given to the World Bank programs.

`Sensitive affair ‘

“ We told the Chief Minister that H2O is a really sensitive affair and should be dealt with really carefully. It was a affable meeting and she was receptive to some of our suggestions. She asked us to propose any other method for bettering the H2O state of affairs in the Capital and asserted that they had non accepted any of the recommendations of the World Bank. We are non experts on the issue but we will surely look for people ‘s engagement in this enterprise including the Bhagidari web of the Delhi Government. There is an pressing demand for people ‘s engagement in such undertakings instead than choose for denationalization cognizing really good that these transnational companies have failed miserably when implementing such undertakings in other states, ” Ms. Aruna Roy stated.

Another well-known societal militant who has campaigned against denationalization of H2O sector, Vandana Shiva, said the Delhi Government had been forced to take such a base out of irresistible impulse following protests and arguments.

A© Copyright 2000 – 2009 The Hindu

Uniform resource locator: hypertext transfer protocol: //


Video Exhibits:

Exhibit: 3: ‘Water crisis in the National Capital ‘ , Channel News X, ; hypertext transfer protocol: // v=OuQBMY6DQxU

Exhibit: 6: ‘Delhi Water Privatization Plan ( Part 1 ) ‘ , A Talk by Arvind Kejriwal, ‘Parivartan ‘

hypertext transfer protocol: // v=8XwiyWgZHMA


Break-up of Per Capita Per Day Water Requirement for Delhi



172 lpcd


Industrial, Commercial and Community requirement based on 45000 liters per hect. per twenty-four hours

47 lpcd


Fire protection based on 1 % of the entire demand

3 lpcd


Floating population and particular utilizations like hotels and Embassies

52 lpcd



274 lpcd ( 60gpcd )

Beginning: Economic Survey of Delhi 2005-06 p.148


Lpcd=Litres per capita per twenty-four hours Gpcd=Gallons per capita per twenty-four hours

1 Gallon=Roughly 4.5 liters

Exhibit: 2


Name of Plant

Existing Capacity as on 31.03.2004 ( MGD )

Proposed Capacity at the

terminal of 31.03.06 ( MGD )


Chandrawal Water House no. I & A ; II




Wazirabad I, II & A ; III








North Shahadra ( Bhagirathi )











Sonia Vihar



Renney Wells and Tube Wells




Optimization of WTPs




Recycling of Waste H2O at Chandrawal, Bhagirathi, Haiderpur and Wazirabad





Delhi ‘s Water Supply Capacity

Beginning: Economic Survey of Delhi 2005-06 p.149 ( MGD=Million Gallons per Day )

Exhibit: 4

Parivartan G-3/17, Sundernagari, Delhi-93

Ph: ( 011 ) 55254077, 20507339

Electronic mail: parivartan @

Dated: 20.8.05

Dear Mr Wolfowitz,

We are composing this missive to you to inform you of the mode in which the India office of the World Bank is step ining in the operation of the H2O public-service corporation in Delhi called Delhi Jal Board ( DJB ) . The DJB has applied to the Bank for a loan of about 150 million dollars to transport out H2O sector reforms. It has already received a loan of about 2.5 million dollars towards Project Preparation Facility ( PPF ) .

We are enveloping a note ( Annexure A ) , which gives the sequence of events taking upto the award of contract to Price Waterhouse Coopers ( PWC ) for PPF. PWC lost in the normal command procedure non one time but thrice. However, the Bank functionaries intervened every clip. Finally PWC got the contract. World Bank over ruled strong protests from DJB and went in front against the wants of elective representatives. The declarations passed by the Governing Board of DJB, of which the Chief Minister of Delhi is the Chairperson, were ignored by the Bank.

Some of the intercession appears to be misdemeanor of the footings and conditions applicable to this loan. It raises intuition whether the Bank is seeking to prefer certain companies through their intercession. Annexure B gives specific cases of some such misdemeanors. The whole procedure appears to be basically flawed.

Whereas we are individually taking up this issue with our authoritiess, we request you, through this missive, to originate a investigation into the alleged inappropriate intercessions by the Bank functionaries and take appropriate penal actions against functionaries found guilty. We besides request you to guarantee that such misdemeanors do non repeat once more. In the involvement of transparence, we would bespeak you to inform the people of India of the determination taken by you in this respect.

Mr Michael Carter, Country Director, has sought to warrant the intercessions stating that the H2O public-service corporation is in a muss and needs “ manus keeping ” by the Bank. We wish to province that India exports managerial and proficient expertness to the remainder of the World. It has some of the best proficient and direction institutes. We are certain India does non necessitate Bank ‘s manus keeping to better its H2O systems. Besides, wherever similar Bank initiated reforms were carried out in other developing states, H2O duties skyrocketed, H2O quality deteriorated, H2O was diverted from residential countries to amusement Parkss and hotels and supply to the hapless was cut off as they could non afford H2O. We are non cognizant of any underdeveloped state where Bank initiated reforms have been successful in bettering H2O handiness to all, including hapless. With this background, can the Bank truly claim to hold the expertness to better the H2O systems in developing states?

Harmonizing to DJB records, the Bank functionaries are believed to hold told DJB functionaries that the Bank had indulged in similar misdemeanors in many other undertakings. The inside informations of all such undertakings and nature of misdemeanors should be made public.

India has late enacted one of the most progressive Right to Information jurisprudence. Some of the State Governments, including Delhi, already had such Torahs in topographic point earlier. The Torahs enable citizens to entree about all authorities paperss, excluding a little list of freedoms. In such a transparent atmosphere, the Bank has a dated Disclosure policy, which seeks to unwrap much less than it seeks to conceal. This makes Bank ‘s operations in India opaque and prone to intuition. When approached with a petition to do all paperss related to the above trade populace, Mr Carter expressed his weakness mentioning the Bank ‘s Disclosure policy.

Bank ‘s Disclosure policy starts as under:

“ The Bank reaffirms its acknowledgment and indorsement of the cardinal importance of transparence and answerability to the development procedure. Consequently, it is the Bank ‘s policy to be unfastened about its activities and to welcome and seek out chances to explicate its work to the widest possible audience. ”

However, in pattern, it discloses much less. If the Bank were to implement this in pattern, it would necessitate to earnestly and desperately take a relook at its Disclosure Policy. Particularly when the citizens are able to entree all the paperss from the Governments, Bank ‘s refusal to let entree to its paperss would earnestly impact its credibleness as a crystalline organisation.

We hope that you would originate the procedure of revising your Disclosure policy in the visible radiation of the above developments. However, in the interregnum, we request you to see Bank ‘s attachment to the commissariats of India ‘s Right to Information Laws to its ain operations in India.

Yours unfeignedly,

( Arvind Kejriwal )

Mr Paul Wolfowitz

President, World Bank,

Lodi Estate, New Delhi.

Exhibit: 5

Statement by Michael Carter, Country Director, India, on the World Bank ‘s Role in the Delhi Water Supply and Sewage Project

July 29, 2005: At the petition of the Government of India, the World Bank is helping the Delhi Jal Board ( DJB ) in its development of a dependable, sustainable and low-cost H2O supply system in Delhi. Both the Government of India and the Government of the National Capital Territory of Delhi are acute to better the urban H2O sector, which in most metropoliss of India is characterized by hapless service and financially labored public-service corporations.

The proposed Delhi Water Supply and Sewerage Project will hold five constituents:

1 ) The first stage of a H2O distribution and waste H2O aggregation betterment program, to be implemented in two zones of south Delhi through the award of direction contracts to professional operators ;

2 ) Trunk H2O and sewage substructure betterment to turn to constrictions, better energy efficiency, and advance environmental sustainability ;

3 ) Organization beef uping steps including staff preparation, client service centres, a direction information system, etc ;

4 ) Services to the hapless, including sub-projects in the two zones under direction contract ; and,

5 ) Preparation of a roll-out program for bettering services and infrastructure city-wide.

The undertaking is presently in the readying phase. The proposed loan will travel for blessing by the Bank ‘s Board of Executive Directors, which includes a representative of the Government of India, after the readying is complete. Meanwhile, the Bank has sanctioned a amount of US $ 2.5 million as a undertaking readying installation. This money is being used by DJB to fund certain surveies and studies whose findings and recommendations will assist in the design of the undertaking.

No denationalization

Neither under the proposed undertaking nor in any consultative work is the Bank suggesting denationalization of any portion of DJB nor is there is a timetable for any denationalization. As a affair of fact, at this clip, the World Bank would decidedly non urge denationalization.

Procurement guidelines

As a development bank owned by 184 member-countries, the World Bank has been mandated with a mission to turn to poorness by back uping development attempts of its borrowing members.

In order to guarantee that the development results for which its money is borrowed are achieved, the Bank has developed, with the concurrency of its members, a high set of criterions in countries such as procurance, fiscal direction, and environmental and societal precautions to which its borrowers commit. These are accepted as planetary benchmarks by its protagonists and critics likewise. These guidelines and policies are all in the public sphere and can be easy accessed on the World Bank web site.

The World Bank ‘s procurement guidelines are based on four considerations: the demand for economic system and efficiency, the Bank ‘s involvement in giving all eligible bidders from developed and developing states the same information and equal chance, the Bank ‘s involvement in the development of domestic catching and fabrication industries in the adoption state, and the importance of transparence in the procurance procedure.

Consequently, the guidelines lay down command processs, eligibility standards, precautions against struggles of involvement, fraud and corruptness, several duties of the borrower and Bank, and so on.

While it is the borrower ‘s responsibility to administrate the procurance procedure, the Bank has a clear duty to reexamine and make up one’s mind on its no-objection to the cardinal paperss and studies emanating from this procedure.

Consultancy award by DJB to PriceWaterhouse Coopers

Some NGOs have raised inquiries about the Bank ‘s function in the award by DJB of a undertaking readying survey to PWC over 1999-2001. The innuendo that the Bank attempted to prefer PWC is wholly baseless — on the contrary, this is an first-class illustration of the Bank ‘s close monitoring of the procurance procedure to guarantee transparence and just competition.

In all Bank procurances, the short-listed houses should consist three to six houses with a broad geographic spread, with no more than two from any one state, and at least one from a developing state unless qualified houses from a underdeveloped state are non identifiable. The original short list included merely developed state houses ; this is why the Bank asked that a house from a underdeveloped state be included. In response, DJB included PWC India which was the highest ranked such house.

DJB evaluated the houses ‘ proficient proposals and submitted its rating study to the Bank. Based on the information contained in this study, the Bank raised inquiries on the subcriteria that were used to measure the proposals on the evidences that these did non adequately reflect the demands of the footings of mention. The Bank arrived at this sentiment after a thorough internal reappraisal and after seeking the sentiment of an external adviser. Consequently, it was decided between DJB and the Bank to ask for fresh proposals from the same houses.

( In a consultancy contract, the footings of mention are the key as they define the aims, range of work, activities, undertakings to be performed, several duties of the borrower and the adviser, the expected consequences, and deliverables from the assignment. )

When the Bank received DJB ‘s rating study on the revised proficient proposals, it asked that one peculiar judge ‘s tonss be removed from the rating as they were dramatically different from the others for a peculiar standard. The Bank ‘s action, though uncommon, is non alone. Due to this deformation of the mean mark, merely one house had a mark above the measure uping threshold laid out in the command paperss. On rectifying the norm by remotion of this judge ‘s tonss, three houses, including PWC and the original qualifier, passed. When the fiscal commands of these three houses were publically opened, PWC won on the combined mark because its fiscal offer was well cheaper than the other two.

We do non see this as “ naming the shootings ” or “ running ” the borrower ‘s personal businesss, but guaranting in partnership with the borrower a transparent and just procurance procedure for a contract that is being funded with public money.

Some Important Dimensions of the Bank ‘s Role

Strengthening of the direction of H2O distribution and waste H2O aggregation. This will be tested by deputing the operation and care of two operational zones to see, private operators under two separate direction contracts with DJB. The operators will be selected through a competitory procedure harmonizing to the Bank ‘s procurement guidelines. DJB will retain control over assets, staffing, duty and investing determinations, and will oversee the operator. The operator will have a fixed fee with fillips and punishments depending on public presentation.

If successful, such deputation of operations and care could better managerial and proficient patterns in DJB, and be expanded at a ulterior phase to other countries of the metropolis on a competitory footing. This agreement could assist shoot private sector accomplishments in the public public-service corporation and does non amount to denationalization.

Recovery of Cost of Delivery of Water Supply. The undertaking is designed to accomplish a set of criterions for better H2O service bringing. In our position, this requires setting duties at a degree that covers at least the cost of operations and care. This is a affair we will necessitate to make understanding with DJB on when we reach the phase of negociating the loan. But we have seen no projection to propose that this would necessitate additions even remotely nearing the 800-900 per centum being quoted in the imperativeness. Furthermore, the Bank is clear that the undertaking must be explicitly targeted at bettering entree of the hapless to H2O and sanitation services, with steps in topographic point to guarantee affordability such as transparent, targeted subsidies.

Efficiency and Economy in Financial Management and Procurement. As an built-in portion of its support to DJB, the Bank will go on to guarantee that all procurance that it finances is done expeditiously and in a crystalline mode.

Disclosure of Information. The Bank will purely adhere to its revelation policy, which specifies the nature and timing of paperss that it must unwrap. It will agree with any inaugural by DJB to unwrap information beyond what is required by the Bank ‘s policy. Any such determination on revelation remainders with DJB.


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