Published on: 07/02/2008
The Karnataka Urban Infrastructure Development Project, completed in 2004, was the Asian Development Bank's (ADB) first urban infrastructure project in India. The Project was based on an $85 million loan for an integrated urban development project in Karnataka State in the central south of India, implemented in four towns surrounding Bangalore: Mysore, Tumkur, Channapatna, and Ramanagaram. A $20 million loan was also included for low-cost housing finance in Karnataka State. Later the towns Maddur and Mandya were also included in the project.
The Operations Evaluation Department (OED) evaluated the Karnataka Urban Infrastructure Development Project in 2007. It rated the project as successful, although at the lower end of the scale. The Project was assessed as relevant and effective, but less efficient and less likely to be sustainable.
The best outcomes were achieved from the components in road development, housing finance, slum development, self help group support, and to some extent water supply and sanitation.
Outcomes of wastewater treatment plants, residential sites and services, bus and truck terminals, and sanitary land fills were often less successful. The significant wastewater treatment investments were delivered in good order, but their full use lagged behind, due to lack of household connections to the sewage systems, and other problems.
On 11 January 2008 the management issued a response to the OED evaluation dealing with issues such as cost overruns and sustainability - especially related to O&M, and how the lessons learned were being implemented in new ADB projects.
