CHAPTER – 7 

EXTERNALLY AIDED PROJECTS 

7.1       External Support Agencies 

          Various external support agencies like World Bank,  DFID, KFW, JICA/OECF, DANIDA, etc. are willing to support projects in rural water supply sector.  States who desire to avail such assistance may prepare project proposals as explained below. 

7.2      PROJECT FORMULATION 

7.2.1   Projects submitted for external funding should include strong component for institutionalising community-based demand driven Rural Water Supply Programme with cost sharing by the communities, gradually replacing the current Government driven centrally monitored non-people participating Rural Water Supply Programme and should adhere to the following key elements: 

i)         Adoption of demand driven approach. 

ii)        People’s participation through a decision-making role in the choice of key design and management arrangements. 

iii)       10% capital cost share and 100% share of O&M cost by users. 

7.2.2   These projects should include software component, drinking water supply, environmental sanitation, health education, income generating and other components.  

7.2.3   A shelf of integrated projects of substantial cost should be prepared in accordance with the guidelines, terms and conditions and the formats of the respective External Support Agency and kept ready for being sent to the Central Government as and when required.  The name of the Externally Support Agency need not be given as it will be for the Ministry of Finance to pose the Projects to different Agencies.  Approval of State Finance and planning Departments should be obtained to ensure that counterparts of Rural Development, after receipt of the projects, will scrutinise their technical soundness and socio-economic viability. 

7.2.4   Funds flow from the State should be smooth and should not result in impediments in implementation as per schedule.  The feed back from various Review Missions of the External Support Agencies (ESAs), indicates that once the State Government completes the hardware part (Construction works leading to commissioning of Schemes), they are not very keen on the software aspects (Health education; awareness IEC and KAP components ) and this should be avoided.  Follow up action may be taken promptly as per the observations of Review Missions. 

7.2.5   The progress reports in the formats prescribed for specific projects by different ESAs should be sent to the Department of Rural Development by the scheduled dates.  The progress should be monitored at the level of Secretary in the State to ensure the completion of projects on time to avoid cost overrun and to take appropriate remedial measures. 

7.2.6   The claim for reimbursement of assistance should be sent by the State to the Department of Rural Development for being forwarded to the Ministry of Financ;
 

Index