GRANT FUND - II

Grant Fund –II is a part of the component of the IBRD line of credit for providing Technical Assistance to Urban Local Bodies and Statutory Boards, both for preparation of detailed engineering for projects and for hiring consultants for design, management and supervision of projects. This Fund with an allocation equivalent to US $ 5 Million was constituted during the year 1999 under Tamil Nadu Urban Development Project II. The Government entered into a Management Agreement on 24th April 1999 with Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) to manage the funds as per the guidelines prescribed by the Government from time to time.

The Government of Tamil Nadu (GoTN) has proposed to implement the Third Tamil Nadu Urban Development Project (TNUDP-III) to the tune of US $ 434 million over a period of five years with the World Bank assistance of US $ 300 million. The project was launched on 19th October 2005. The project consists of two main components, the Institutional Development and the Urban Investment Component. Under the Urban Investment Component, project preparation grants will be US $ 3.00 million. During the appraisal mission discussions between the World Bank and the Government on TNUDP-III, it was decided that this project preparation grant will fund preparation and / or supervision of complex, innovative projects / studies in the urban sector and that it will be managed by TNUIFSL.

Accordingly, the GoTN in its order G.O. Ms. No.78 dated 03.06.2005 accorded sanction for the project preparation grant for an amount approximately Rs.13.50 crores (equivalent to US $ 3.00 million) under the TNUDP-III into Grant Fund-II (GF- II). The funds available in GF-II can be utilized for commitments already entered into during the TNUDP-II, the future commitments under TNUDP-III and such other commitments as Government shall order or specify from time to time. The interest from investments and any other income earned or accruing to GF - II shall form part of its corpus and shall be applied for the purposes for which the fund is created.

OBJECTIVES

The Grant Fund - II will be used to assist urban local bodies / statutory bodies in / towards preparation and / or supervision of more complex and innovative projects such as PPPs and BOTs, for such project and technologies which can reduce the cost of services, or for a variety of purposes based on TNUIFSL’s assessment of global innovations, and the need from municipalities, in support of sector sustainability.

ELIGIBLE PROJECTS

Eligible projects include the preparation and supervision costs of all projects satisfying the objectives as stated above in urban infrastructure sector / urban local bodies other than design and or supervision of routine projects. The limit for Grant allocation will be as follows:

• Not more than 10 % of the fund will be allocated to any single project.
• Not more than 30 % of the fund shall be utilized for proposals / studies initiated by the TNUIFSL, for preparation of eligible projects.

APPLICATION & APPROVAL

The application for grants should contain the details of the projects and such other details as prescribed in the guidelines and a Council Resolution. The proposals will be placed before a Committee consisting of Commissioner of Municipal Administration and Director of Special Village Panchayats for approval of the grant provision for the required technical assistance. The Chief Executive Officer of TNUIFSL will be the Member Secretary of the Committee. Based on the recommendations of the TNUIFSL, the Committee shall take an appropriate decision on the proposal.

PERFORMANCE DURING 2007-08

The following consultancy assignments have been completed during the financial year 2007-08:

• Conversion of city corporate plan into business plan for 7 towns (Tiruppur, Dindigul, Udagamandalam, Chengalpattu, Kancheepuram, Coonoor, and Mettupalayam).
• Preparation of city corporate plan cum business plan for 5 towns (Alandur, Pallavaram, Tambaram, Sivaganga and Ramanathapuram).
• Preparation of Detailed Project Report (DPR) for underground sewerage schemes in 12 towns (Kathivakkam, Rasipuram, Chinnamanur, Udumalpet, Gobichettipalayam, Komarapalayam, Sathyamangalam, Sankarankoil, Tenkasi, Mettur, Paramakudi and Maduravoyal).
• Preparation of Urban Strategy for Tamil Nadu.
• Preparation of DPR for Integrated Infrastructure Development for Madurai.
• Review of DPR for Solid Waste Management for Chennai Corporation.
• Preparation of DPR for Mettur Water Supply.
• Preparation of DPR for Sanitary landfill in Coimbatore Corporation.
• Ecological Restoration Plan for Adyar Poonga.
• Study on developing a model set up for common service centre (e-seva centers) in Tamil Nadu

The following are the on-going consultancies:

• Conversion of city corporate plan into business plan for 8 towns (Avadi, Vellore, Villupuram, Tiruvannamalai, Salem, Erode, Udumalpet and Pollachi).
• Preparation of city corporate plan and business plan for 18 towns (Chidambaram, Nagapattinam, Tiruvarur, Pudukottai, Karur, Pattukottai, Dharmapuri, Krishnagiri, Hosur, Mettur, Tuticorin, Virudhunagar, Theni, Palani, Ambattur, Kathivakkam, Tiruvallur and Tiruvottiyur).
• Preparation of DPR for underground sewerage schemes for Sivakasi and Mannargudi.
• Preparation of Environmental Assessment Report for combined water supply schemes.
• Rapid updation of transport projects in Tamil Nadu.
• Preparation of DPR for beautification of Tuticorin Buckle Canal.
• Household Survey to develop a data base on the status of Water and Sewer connections in Alandur Municipality.
• Identification of waste lands for establishing regional solid waste processing and disposal facilities in Tamil Nadu using remote sensing and GIS tools.

The following consultancy assignments have taken up during the current financial year 2007-08 and are in progress:

• Study on the transportation networks, which could provide better traffic circulation to the towns and their connectivity to the neighboring areas of Alandur, Pallavaram and Tambaram Municipalities.
• Study of Privatization of Municipal Solid Waste Management activities in Ambattur Municipality.
• Preparation of Detailed Project Report for Rail Over Bridges / Rail Under Bridges for improving 5 major junctions ( Mint, Basin Bridge, Ganeshpuram, Anderson Bridge and Luz) in Chennai city.
• Preparation of bid process management for providing foot over bridges, bus shelters and construction and maintenance of public conveniences on DBOT basis on identified locations in the Chennai city.
• Review and updation of DPR for compost plant for Chennai Corporation.
• Development of designs for beautification of Merina Beach.
• Pre-feasibility study on the proposed road alignment along water courses of Chennaias an effective alternative to divert and disburse the traffic so that the internal roads are retrieved of congestion.
• Bid Process Management for privatization of Municipal Solid Waste Management activities such as Primary and Secondary collection, Transportation to dumping yard, processing and scientific disposal of wastes etc., for Alandur Municipality .
• Study on improvements to existing infrastructure for Metropolitan Transport Corporation.
• Preparation of feasibility study for developing the central prison land into a recreational/ commercial space.
• Preparation of city corporate plan and business plan for 54 Grade III municipalities in 5 groups
• Preparation of city corporate plan and business plan for 10 town panchayats in 2 groups.
• Carrying out Integrated Solid Waste Management study for 3 clusters of towns covering Madurai, Trichy and Tirunelveli Corporations.

Out of 129 cases of ongoing consultancies during the financial year 2007-08 (consultancy fee of about Rs.22.37 crores), 43 consultancies (consultancy fee of Rs. 3.99 crores) have been converted as projects, implying a performance of 33% in number and 18% in value. Projects worth Rs1153.11 crores have been fructified.

DISBURSEMENT DURING 2007-08

A sum of Rs.2.91 crores was available in the Bank Accounts of Grant Fund II Account as on 01.04.2007. A sum of Rs.0.33 croresbeing the excess of income over expenditure for the financial year 2007-08 has been transferred to Grant Fund. The disbursement made during the FY 2007-08 is Rs.5.87 crores. The balance of fund in the Bank Accounts of Grant Fund II as on 31.03.2008 is Rs.0.77 crores.