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NORTH EASTERN REGION CAPITAL CITIES DEVELOPMENT INVESTMENT PROGRAM (NERCCDIP) OF ASIAN DEVELOPMENT BANK FUNDING ASSISTED PROGRAM FOR AIZAWL CITY

THE BACKGROUND:

  • The Ministry of Urban Development (MoUD), Government of India (GoI) is taking Loan from Asian Development Bank (ADB) for Urban Development and its Services delivery improvement for North   Eastern States. The Program State Cities are Agartala (Tripura), Aizawl (Mizoram), Gangtok (Sikkim), Kohima (Nagaland) and Shillong (Meghalaya). The program envisaged basic Urban Service Development and its Services Improvement such as: Water Supply, Sewerage & Sanitations, Solid Waste Management, Institutional Development and Management Capacity Building etc.
  • Feasibility Study has been made on sectors performance, problems and opportunities for implementation of the Program during 2003-2008. After number of consultations/workshops with all the 5-State Government agencies responsible in providing urban services such as PWD for Roads, PHED for Water Supply & Sanitations, Solid Waste Management by LAD, Health Services, Markets by Trade & Commerce Department etc,.Considering its complexity in providing services delivery to the people of Aizawl City and lesson learned in the other States in implementing program, and Commitments by the State Governments (SG), the ADB Loan Appraisal Mission finally approved in January, 20009 by all the 5-State Government, Ministry of Urban Development, Government of India and ADB. The ADB provides 3-Multi-tranch Financing Facility (MFF) for development of 5-North Eastern Region Capital Cities to be completed by June, 2016 which has been subsequently extended upto June, 2019.
  • THE MAIN OBJECTIVES OF THE PROGRAM:

The main objectives of the investment program are:

  • Providing City Development and facilitating themselves to sustain each North Eastern State Capital since being a part of the States of India
  • Decentralization of power for Urban Administration by way of Municipalization in urban areas.
  • Establish Local Self Government/ULBs in line with 74th India Constitution Amendment Act and capacity development.
  • Establish and improve urban financing capacity for sustainability to provide its basic services.
    • THE OBJECTIVES OF URBAN INSTITUTIONAL IZATION/DEVELOPMENT AND ITS BASIC SERVICES IMPROVEMENT:

1)Water Supply:

  • Improving water supply quality (Improved Water Quality).
  • Lengthening water supply duration at least to 12 hrs a day from 2hrs per 13 days and meeting 100% water demand.
  • Implementing reduction of NRW from 45% to minimum standard of 15%
  • To promote sustainability and O&M Cost recovery in water supply.

2)  Sewerage & Sanitation:

  • Provide facility for collection and treatment of liquid waste.
  • Improve existing sanitation system of individual particularly septic tanks and soak pit and provision of community toilets with best technologies.
  • Provide assistance to State Government/Urban Local Bodies’/AMC in implementing sanitation regulations for sewerage improvement with modest/best practices.

3) Solid Waste Resource Management:

  • Improve existing management system and increase service coverage to more than 80%
  • Awareness campaign to promote understanding of best sanitations
  • Improve solid waste collection, transportation, treatment and disposal with best practices
    • Urban Institutional Development & Capacity Building:
    • Reform the State Government functionaries, establish Local Self Government/ULB’s and transfer urban functions to LG/ULBs in line with the 74th CAA.
    • Migration of Double Entry Accounting System for ULBs
    • Introduce Property Tax as per modest Unit Area Method
    • Utility Reforms-Introduce volumetric water charges and collection of User’s charges
    • Identification/Establish Scope for Private Sectors Participation
    • Implement Reduction of NRW on Water Supply
    • Provide E-governance mechanism

THE INVESTMENT PLAN:

The Program provides/facilitates 3- Multi-tranch Financing Facility (MFF) within the extended period from 2009 to 2019. The 1st MFF(Tranch-1/Project-1, the 2nd MFF(Tranch-2/Project-2) and the 3rd MFF (Tranch-3/Project-3) implementation for the Development & Improvement  of Urban Services has been started from May, 2009, the inception of the Program by the State Investment Program Management and Implementation Unit (SIPMIU) with different Sub-projects for urban developments. The investment plan for 5-States is 1390.64 Crore (287.7 US m$) while for Aizawl City is below table:

MFF Original Revised
INR (Crore) US m$ INR(Crore) US m$
1st MFF (2009-Odt, 2015) 37.20 7.64 35.17 35.17
2nd MFF (July, 2011-June, 2018 151.00 31.02 149.12 28.42
3rd MFF (Dec, 2012-Dece, 2018) 141.87 29.14 510.00 83.40
Grand Total 330.07 67.80 694.29 119.05

The enhanced investment plan for the 3rd MFF is based on the good performance on the program implementation by the Government of Mizoram.

THE COMMITMENTS BY THE GOVERNMENT OF MIZORAM:

The Modern trends towards Urban Development in India is decentralizing all urban services deliveries into one single entity to ensure sustainability, effective and prompt delivery of projects implementation and its management. The existence of no of agencies responsible for service delivery already has negative impact on its development. The Government of India through its policies and program for urban services delivery now made mandatory institutional reforms at the level of State Government as well as at the level of Local Authorities.

Prior to the Program initiative, except Mizoram, in the State of North East as well as within the Country all the urban affairs are within the purview of State Urban Development Department.

The Government of Mizoram is fully committed for Compliance of the mandatory reforms under JnNURM/NERUDP, the Finance Commission and continuing under AMRUT/SMART CITIES MISSION etc., in building establishment of Urban Institutions and transfer all functions to Local Self government which as per the Constitutional requirements. Re-orienting for proper functioning of urban administration within the new framework of Urban Development Program and institutionalization and step in the right way of Urban Development Roads maps addressed by the Government and international funding agencies like ADB, World Banks, JICA etc., to be staged in the Modern States.

PROGRAM IMPLEMENTATION ARRANGEMENT:

      1. National Level:

Nodal Department:        The Department of Economic Affairs (DEA), Ministry of Finance, Government of India is the Nodal Department

National Executing Agency (NEA): The Ministry of Urban Development (MoUD), Government of India is the National Executing Agency. The National Steering Committee (NSC) is constituted, chaired/headed the Secretary, Urban Development, MoUD with members from MDoNER, Planning Commission/NITYOG, DEA, Central Town & Country Planning, Principal Secretary/Commissioner of each Program City. The NSC is meeting quarterly by reviewing the Progress/Issues of the Program Implementation.

The Investment Program Co-ordination Cell (IPCC) is established in the MoUD, headed by Director (UD) and supported by Program Management and Monitoring Consultants (PMMC).

      1. State Level:

Nodal Department:

The Nodal Department in the State is Finance Department.

State Executing Agency (SEA):

The State Executing Agency is Urban Development & Poverty Alleviation Department (UD&PAD).

State Steering Committee (SSC):

The State Steering Committee is constituted, chaired/headed by the Chief Secretary of the State, with Principal Secretary/Commissioner of Finance, Planning, UD&PA, PHED, PWD, P&ED, Land Revenue& Settlement and Heads of Departments as member. The terms of reference of SSC are approval of Scope of Works, policy matters and co-ordination between the Executing Agency and the concerned line departments providing/facilitating urban services.

The Investment Empowered Committee (IPEC):

The Investment Empowered Committee is also constituted, chaired by Principal Secretary/Commissioner of UD&PA Department (SEA) with member of all Principal Secretaries/Commissioners and Head of Departments concerned. The IPEC approve technical proposals, financial sanctions and recruitments of staff required by the implementing agency.

The IPEC is the Apex body for the Program and responsible for taking all important decisions with respect to the program implementation, to accord sanctions and order powers to the Program Director (PD) designated for the program. To ensure timely program implementation and for efficient & effective decision-making, the powers of State Government are delegated to the Empowered Committee. The Committee is meeting as often as needed, at the request of the Program Director.