City Development Plan Investment Program Review and Institutional Development Support, Chennai

Cities Development Initiative for Asia CDIA

Corporation of Chennai

Chennai City Development Plan 2009 Volume 1: Main Report

Project No: 07.2029.2-001.00

September 2009
GHK Consultants India Private Ltd (An associate of GHK Group, United Kingdom)

In association with Taxila, SUSTAIN, HABICO

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Executive Summary
Introduction
The purpose of the Chennai City Development Plan 2009 (CDP) is to update the 2006 CDP that was prepared as part of the Government of India's Jawaharlal Nehru Urban Renewal Mission (JNNURM) funding application process. The revised CDP 2009 will guide development of the Chennai Metropolitan Area through to the year 2026. The need for a revised CDP was identified for a number of reasons as discussed in the main report. The City of Chennai subsequently sought and received assistance from the Asian Development Bank's (ADB) City Development Initiative for Asia Program (CDIA) to undertake the work. Chennai is the first city to undergo the CDP Review exercise and, as such, presents a model for replication in other Indian cities and elsewhere in the CDIA programme.

Objectives
This review of the 2006 CDP has three prime objectives: 1. 2. 3. to conduct a participatory review of the Corporation of Chennai's (CoC) CDP and its investment program to be submitted under the JNNURM Funding; to strengthen institutional development within government, NGOs and civil society to identify, prioritize and plan infrastructure projects; and to assist the CoC prepare a marketing strategy and plan, with an emphasis on linking CoC to financing institutions and infrastructure projects within it.

CDP Preparation Process

A carefully structured and comprehensive process was followed in the preparation of the CDP 2009. Reviewed CDP (2006), SMP (2008) and on-the-ground field situation Listened to Stakeholders in a series of participatory Workshops Identified issues and determined Guiding CDP Strategies Consolidated Macro-Level Planning Framework from SMP Evaluated long-list of potential investment - Prioritised Prepared Investment Plan

Followed up with: Institutional Development and Capacity Building Marketing & Communication Strategies and Plan

Stakeholder Participation
Stakeholder participation formed a strong component of the CDP 2009. Informal participation was ongoing throughout the exercise and a formal programme of events was implemented including: 1. 2. 3. 4. 5. 8 November 2008: North Chennai Stakeholders Workshop hosted by the North Chennai Peoples Right Forum. 20 December 2008: Workshop involving all councillors of Corporation of Chennai. 7 February 2009: Workshop on the "Formal Sector Economy and Mobility Infrastructure". 14 February 2009: Workshop on the "Informal Sector" discussing needs of both housing and economic activities. 29 May 2009: Workshop held on "Institutional Structure and Governance".

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16 September 2009: Review of Draft CDP 2009: Presented and discussed with participants including government officials from both CoC and State levels, members of Chennai's informal sector, civil society groups, academics, media, CDIA and consultant teams.

Improvements by CDP 2009 over CDP 2006

The CDP 2009 improves on several aspects of the 2006 CDP as requested in the Terms of Reference. The CDP 2009 includes: Extensive Stakeholder Participation process; Macro-Level Planning Framework drawn from the SMP; Attention to Urban Renewal, Optimisation, Integrated Development; Consideration of the Informal Sector; Strengthened consideration of Housing; Strengthened Prioritisation and Justification processes; Institutional Structure and Capacity Building needs; "Soft" as well as "hard" components; A full range of funding options in addition to JNNURM.

Structure of the CDP 2009 Document

The CDP 2009 is in 5 volumes: Volume 1: Main Report: covers the City Development Plan for Chennai Metropolitan Area with special reference to spatial planning, infrastructure planning, and investment planning for projected development until 2026. Volume 2: Stakeholder Participation: includes proceedings and follow-up reporting on the formal Stakeholder Participation events. It highlights how the stakeholder concerns were addressed in the CDP 2009. Volume 3: Technical Annexes: covers the technical analysis of each sector and includes project sheets for identified investments. Volume 4: Financial Annexes: covers the analysis of the historical financial data for responsible implementing agencies. In addition, it includes financial projections for CoC and CMWSSB until 2026 that forms the basis for recommending various financing options. Volume 5: Institutional Development and Capacity Building: focuses on managing public services effectively.

The CDP 2009 Area

The CDP 2009 considers two physical areas: Figure ES-1: 1. 2. The Planning Area which is the wider area of direct impact on the growth and development of Chennai; and The targeted Investment Area, limited to the Chennai Urban Agglomeration (CUA) and selected other growth points within the Chennai Metropolitan Area (CMA).

The physical Planning Area comprises 5 components: 1. Corporation of Chennai - the 'City'; 2. 16 Municipalities 3. 20 Town Panchayats 4. 214 Village Panchayats (grouped into 10 Panchayat Unions) which include the majority of the rural and natural areas; 5. A series of Satellite Towns lying beyond the CMA. Main Report ii

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The actual "growth" of Chennai impacts a much wider area. Planning for the future must be aware of regional, national and international influences. Figure ES-1: The Planning Area and CUA

The Existing Situation - The CDP 2009 Context

The Land: Most of the CDP Area - the CMA comprises a total area of 1,186 km2 - is flat and low-lying inter-laced with a network of water bodies and water ways. Issues of managing land use, flooding, water ways, pollution and waste are all major, underlying concerns. Population: The CMA's estimated population in 2009 is 8.26 million, of which 4.8 million live in the City. An estimated 22.8%, or close to 1 million persons, live in slums. Growth rates have been highest in the largely unplanned peri-urban and Village Panchayat areas, while the City itself experiences significant out-migration. The CMA population is projected to reach 12.5 million by 2026. Sustainably managing this growth is central to the CDP 2009. Economy: The formal sector accounts for only about 30% of Chennai's employment, while the often ignored informal sector provides 70% of the jobs, and goods and services utilised by all. Chennai's formal sector economy has a diversified base driven by automobile manufacturing, software services, hardware manufacturing, healthcare and financial services. The CDP 2009 addresses planning and infrastructure needs for an orderly growth of the formal sector within the CMA while also stressing the need for recognition of the legitimacy and importance of the informal sector, and the need for provision of appropriate "space" in the City. Institutional Structure, Governance and Capacity Building: There is a multiplicity of agencies involved in urban planning and development in the CMA. Integration and coordination between them is typically weak. The Chennai Metropolitan Development Authority is the umbrella agency responsible for planning for the ULBs. However, some approval activities are partly vested in the Chennai Corporation and other local bodies. Tamil Nadu Slum Clearance Board (TNSCB) is responsible for planning and implementation of slum upgrading, clearance and relocation projects. TUFIDCO is a Nodal agency for the centrally sponsored Urban Infrastructure Development schemes of CMWSSB and other parastatal agencies of JNNURM, UIDMMT, IDSMT and MCP. TUFIDCO also extends financial assistance by way of loans to ULBs. TNUIFSL is the private-public funding institution

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established for urban infrastructure planning under the World Bank assisted Tamil Nadu Urban Development Fund. Many agencies lack sufficient capacities to fully exercise their responsibilities. Municipal Infrastructure: Severely strained transportation, water supply, sanitation and energy services affect most of the population, with pressures increasing due to population growth, a lack of resources to properly maintain and expand systems and high levels of inability or unwillingness to pay. The lower-income urban slum populations are particularly lacking access to adequate basic services. Finance: Municipal level financial resources are minimal at best. The City of Chennai operates with a slight surplus, although the rate of expenditures exceeds that of revenue. The surrounding Municipalities virtually all operate at a loss. The Chennai Metropolitan Water and Sewerage Board (CMWSSB) breaks even, but with insufficient cost recovery to properly run operation and maintenance programmes. JNNURM funding is an important catalyst for urban development. However, funds sanctioned to date represent less than 10% of identified needs in the CDP 2006 and a similar shortfall in CDP 2009. The CDP 2009 is prepared with wide marketability as a main objective in order to fill the funding gap. Planning: The CDP 2009 falls under the overall guidance of the Second Master Plan (2008) (SMP) governing development of the entire Chennai Metropolitan Area. The CDP acts as a more specific investment guide for implementation of the SMP, and will be followed by a series of Detailed Project Reports which pave the way for implementation.

Issues and Guiding Strategies

A number of CMA development issues and Guiding Strategies to address them are drawn from both the SMP and the Stakeholder Participation process and form the basis of the revised CDP 2009: 1. 2. 3. 4. 5. The CMA must move beyond the ad hoc development pattern that has characterised growth to date and replace it with a comprehensive, integrated approach; Planning and development must consider the environment as the fundamental base layer for sustainable social and economic development; Two approaches to planning and development: Optimisation of existing land and infrastructure in built-up areas, and strategically identified expansion; Both formal and informal economic activity must be supported through planning and infrastructure development; Adequate institutional capacity is essential for sustainable planning, implementation and management of all development.

Underlying all of these as major cross-cutting themes are linkages to Poverty Reduction and sustainable Environmental Management, both of which are supported throughout.

Macro-Level Growth Management Framework

An overall CMA Macro-Level Growth Management Framework is needed as the starting point for selecting and organising individual project investments. The SMP sets out the key strategies and principles including: 1. 2. 3. 4. Demarcation and protection of environmentally and ecologically sensitive areas; Focused growth in peri-urban areas and selected growth points; A series of integrated new "neighbourhood" developments along the Outer Ring Road; Institute specific Area Development Projects for upgrading quality of life.

The CDP 2009 consolidates and elaborates these key features and presents them in graphic form to illustrate a Macro-Level Planning Framework and how it addresses the critical existing situation of ad hoc development. Figures ES-2 and ES3.

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Figure ES-2: Macro-Level Growth Management a. Environmental Features b. Current Growth Pattern c. Proposed Growth Pattern

Figure ES-3: Proposed Macro-Level Growth Management Strategy

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Investment Prioritisation
Prioritisation of a long-list of desired investments is the basis for preparation of a comprehensive short, medium and long-term Investment Plan. The following 3 steps were used: 1. Identification of a long-list of potential project investment came from the following sources: 2. CDP (2006) Stakeholder Participation process SMP (2008) Consultant identified "gaps" required to implement the SMP

Organisation of potential investments in accordance with: Geographic Area within the CMA (City, Municipality, Village Panchayats) Sector Optimisation, New, Study, Under Implementation Phasing

3.

Prioritisation and screening factors include: Environmental importance Socio-economic benefit Support to SMP implementation (targeted growth areas) Integration/follow-up to existing investments Funding availability (Phasing) Institutional capacities Emphasis on Optimisation before New Stakeholders expressed concerns

Sector Approaches and Recommendations

Table ES-1 summarises the approach to recommendations taken by the CDP 2009 for each Urban Sector. Table ES-1: Summary CDP 2009 Sector Approaches and Recommendations Sector
Institutional Capacity, Governance Reform and Capacity Building

Approach Recommendations
Imperatives of decentralised democratic governance under 74 constitution amendment to be fully factored in priority needs for sustainable planning, implementation and management recognize important role of civil society institutionalise Stakeholder Participation create an umbrella Metropolitan Planning Agency for integrated coordination implement recommendations/requirements of the JNNURM program need internal capacity to manage, implement, monitor and revise CDP 2009 a priority environmental health sector separately developed to Pre-Feasibility Stage under another consultancy recommends decentralised approach to primary and secondary collection recommends a centralised "cluster" approach for final disposal identifying appropriate final disposal sites is critical focus on minimising final disposal quantities through recycling, etc. a priority environmental sector separately developed to Pre-Feasibility Stage under another consultancy focus on flood reduction, mosquito and pollution control
th

Solid Waste Management

Waterways Management

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Sector
Water Supply

Approach Recommendations
focus on combination of upgrading/optimising existing infrastructure investments fill service gaps to under-serviced population groups focused expansion and densification of priority peri-urban areas focus on combination of upgrading/optimising existing infrastructure investments fill service gaps to under-serviced population groups focused expansion and densification of priority peri-urban areas recognized impacts on Waterways Management recognizes series of major capital-intensive projects already planned or under implementation focus on filling "gaps" in current services, networks optimise existing infrastructure support multi-modal connectivity formal recognition of the informal sector as a legitimate part of the city is needed existing ad hoc and segregated development needs coordinating under the same urban authority as for other urban planning and development initiatives

Sewerage and Sanitation

Traffic and Transport

Slum Upgrading - Basic Urban Services

Shelter

over 95% of shelter is by private sector which needs enabling environment government role should be as facilitator, not provider government focus should on facilitating shelter for lower-income. Higher income is fine on their own all urban work requires multi-sector integration and coordination includes slum upgrading, redevelopment of existing built-up areas, proposed new "neighbourhoods" along outer Ring Road, other "Greenfield" developments "optimisation" programs require multi-sector integration important to recognize, preserve, incorporate as important cultural assets, urban richness, tourism potential not addressed in depth in CDP 2009 not addressed in CDP 2009 not addressed in CDP 2009 not addressed in CDP 2009

Integrated Urban Development/Urban Renewal

Heritage Resources

Energy Communications Social Amenities

Investment Plan
The Prioritised Investments, projected to total Rs 236,402.61 millions through to 2026 are organised as a comprehensive Investment Plan which identifies existing and required "gap" funding by Sector, Geographic Area and Responsible Institution. The Investment Plan also outlines a series of financing issues to be addressed, alternative sources of "gap" funding, and an indication of implementation capacities of the responsible institutions. A separate section deals with how to develop the required institutional capacities where needs are identified. Table ES-2 summarises proposed investments by Sector while Table ES-3 presents an investment summary by CMA Area. Table ES-4 presents projected investments on a per capita basis based on estimated populations in 2026 in accordance with the proposed Macro-Level Growth Management Strategy.

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Table ES-2: Investment Plan Summary by Sector

(Figures in Million Rs)

SL. NO

SECTOR

TOTAL ESTIMATED REQUIREMENT to 2026 225.00 9,547.57 53,359.04 77,128.00 22,064.00 28,951.00

CENTRAL GRANTS under JNNURM (available)

GAP (to be provided by GoI/GoTN/ULBs and other funding sources) 225.00

1 Inst. Capacity Building Key Infrastructure 2 3 4 5 Solid Waste Management Waterways/Drainage Water Supply Sewerage and Sanitation

1,048.36 5,067.66 6,874.35 3,383.45 289.68

8,499.22 48,291.38 70,253.65 18,680.55 28,661.32

6 Traffic and Transportation Multi-Sectoral Slum Upgrading / Basic Urban 7 Services for Poor 8 9 Others 10 11 12 13 Shelter Integrated Developments, Urban Renewal Energy Communications Social Amenities Heritage Resources Total

45,120.00
Recommendations made on private & public sector initatives/roles

5,362.00

39,758.00

8.00

8.00

Not directly addressed

To be identified individually & managed

236,402.61

22,025.50

214,377.11

Table ES-3: Investment Plan Summary by Area

Area Summary
SL. NO 1 2 3 4 5 UNITS Chennai Metropolitan Area Corporation of Chennai Municipalities Towns Panchayats Village Panchayats Total

(Fi gures i n M i ll i on Rs)

INVESTMENT REQUIREMENT 58,090.27 123,207.44 20,789.65 9,362.95 2,926.80 214,377.11

Table ES-4: Investment Summary by Population

Investment by Population - Summary

SL. NO 1 2 3 4 5 CMA Area Chennai Metropolitan Area Corporation of Chennai Municipalities Towns Panchayats Village Panchayats Total

(Figures in M illion Rs)

Total Investment Estimated Per Capita Investment to 2026 (INR Population 2026 to 2026 (Rs/Per head) Million) 58,090.27 139,781.34 24,766.00 10,771.00 2,994.00 236,402.61 12,542,000 6,301,000 4,215,000 1,029,000 997,000 12,542,000 4,631.66 22,183.99 5,875.68 10,467.44 3,003.01 18,849

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Potential Funding Sources

The 2006 CDP limiting funding considerations to that available through the JNNURM programme. The CDP 2009 expands the scope to consider potential funding from a wide range of sources including: Internal accruals of Implementing Agencies State Government budgetary support Government of India schemes/support Indian Financial Institutions Bi-lateral funding agencies Multi-lateral funding agencies Commercial borrowing Private sector partnerships

Implementation - Institutional Capacities

The following Table ES-5 summarises the Consultant's estimation of the implementation capacities of key agencies currently responsible for implementing proposed urban investments. The CDP's proposed Capacity Building Program is based on this analysis. Table ES-5: Implementation Capacity of Key Agencies
Key Implementing Agencies and Service Sectors CoC Parameters (Roads, SWM, Drainage, Street Lights) Roads Weak SWM Strong Drains Strong Street Lights Medium Financial Capacity Internal Accruals to Finance Infrastructure. Financial Capacity To Borrow From Markets Institutional Framework To Adopt Reform Measures Legislative Framework To Enforce Reform Measures Capacity and Skills Available to Implement New Projects Requirement for Capacity Building Political Will to Initiate Development Medium Strong Medium Weak Medium Very Strong Weak Weak Medium Medium Strong Medium Very Strong Weak Very Weak Weak Weak Weak Weak Very Strong Weak Very Weak Very Weak Average Average Weak Very Strong Weak CMWSSB within CMA (Water Supply, Sewerage & Sanitation) Other ULBs within CMA (Roads, SWM, Drainage, Street Lights) TNSCB Basic Services for Urban Poor

Demand-Supply mismatch of infrastructure requirement

Strong

Very Strong

Very Strong

Marketing and Communication Strategies

Separate Marketing and Communication strategies provide CoC and CMDA with the tools to solicit funding from the alternative sources outlined in the Report.

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Monitoring, Evaluation and On-going Revision

On-going monitoring, evaluation and revision of the CDP 2009 and resultant investments is essential to make appropriate adjustments as conditions change, new priorities emerge and levels of available resources vary. The capacities to undertake this work must be developed internally within the implementing agencies supplemented by outsourcing to keep projects flowing through the continuous cycle of Plan, Implement and Manage. The CDP 2009 must be treated as a "living document".

The Way Forward

To move the CDP 2009 forward to achieve real developmental benefits to residents of the CMA requires series of additional steps beginning with: Internally the CDP 2009 needs to be reviewed by the full spectrum of concerned departments, and agencies and eventually adopted as an official planning document Simultaneously CDP 2009 must go through the approval process expeditiously to the Government of the State of Tamil Nadu for review, acceptance and support The CDP 2009 must be moved into the public domain for participatory review, understanding, acceptance and implementation Identify early, low-cost Pilot Projects for immediate implementation Elevate first phase of priority investments to Pre-Feasibility, Feasibility, Detailed Project Report (DPR), and funding acquisition followed by implementation. Different funding agencies may require different steps Setup participatory civil society mechanism as recommend in CDP.

Potential for Immediate Implementation

The earliest possible visible demonstration of action resulting from the considerable efforts and contributions of all participating stakeholders will help to build acceptance. Pilot Projects in Street Space Optimisation is one viable option. This has the potential for implementation at relatively low cost, but also providing the opportunity for extensive community/stakeholder involvement at the detailed level. Providing the opportunity for serious local stakeholder participation will confirm CoC's commitment to the concept, while ensuring that word spreads quickly through the majority informal sector. Visible results will be quickly achieved.

Lessons for Replication

The Chennai CDP 2009, as the first of the CDP Reviews, may serve as a replicable model for undertaking similar exercises in other Indian and/or CDIA cities. A number of recommendations for conducting similar processes elsewhere include: Obtain primary guidance from the participation of a full cross-section of stakeholders from both public and private/civil society sectors Develop a clear Macro-Level Planning Framework as the essential anchor point Linkages, integration and coordination between sectors and projects are critical Build on current initiatives with a first focus on optimisation of existing investments Target both "soft" and "hard" needs Respond to local social and economic realities based on stakeholders inputs.

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