Transcript Case Study Mysore 24x7 Water PPP Project

ADB Workshop, Bhopal
Jamshedpur Utilities & Services
Company Ltd.
February, 2009
Jamshedpur Water and Wastewater
System
Fact File
Water Infrastructure
Area served
64 sq. km
•
2 River Pump houses
: 264 MLD
Population served
7.00 lakhs
•
Raw Water Pump House
: 173 MLD
•
Clarified Water Pump House
: 91MLD
•
WTP capacity (potable water)
: 190 MLD
•
Dimna reservoir (1 month standby):35000 ML
Avg. daily consumption
206 lpcd
Length of Water Mains
550 kms
Length of Sewer lines
475 kms
capacity
•
7 water towers
•
500 kms of potable water network
: ( 46 ML )
Wastewater Infrastructure
•
2 sewage treatment facilities : 64 MLD capacity
•
10 sewage pumping stations
•
475 kms of sewage collection network
Market Share in Municipal Water Management (1)
Water Quantity Distributed (MLD)
Water distributed
(MLD)
Jamshedpur
Haldia
Mysore
Salt Lake
Tata Motors
K'taka (KUWASIP)
Nagpur
Latur
170
250
142
15
20
25
10
30
Madurai
10
Tiruppur
185
TOTAL
857
Sub Total
Mkt Share
(%age)
Jusco – Sub Total
597
70%
Veolia – Sub Total
35
4%
Hydrocomp/SPML - Sub
Total
40
5%
MIDL – Sub Total
185
21%
100%
Market Share in Municipal Water Management (2)
Service Connections (‘000 Numbers)
Jamshedpur
Haldia
Mysore
Salt Lake
Tata Motors
K'taka (KUWASIP)
Nagpur
Latur
Service
Connections
(‘000)
52
0.3
150
0.5
8.5
30
10
40
Madurai
10
Tiruppur
-
TOTAL
301.3
Sub Total
Jusco – Sub Total
211.3
Veolia – Sub Total
40
Hydrocomp/SPML Sub Total
50
MIDL – Sub Total
-
Mkt Share
(%age)
70%
13%
17%
-
24x7 water supply project for
Mysore city
Salient Features of the Project
 Largest water supply PPP project in India based on performance
based management contract
 First city-wide water distribution management contract serving million
plus population
 6- Year tripartite contract between Karnataka Water Supply & Drainage
Board (KUWSDB), Mysore City Corporation (MCC); and JUSCO
 One operator for the entire city – optimized & effective solution
 Funding by JNNURM (80%), Govt. of Karnataka (10%) and MCC (10%)
Mysore City – Key Contract Variables
(as per contract)
East Zone
West Zone
4.03 Lakhs
3.61 Lakhs
44.43 sq. km
62.52 sq. km
Total no. of wards
35
34
Number of wards with
everyday water supply
29
22
80.19 MLD
62.05 MLD
66, 565
66618
30%
42%
Population
(Year 2001)
Area (Sq Kms)
Bulk Water to be
supplied to AC
No. of house
connections
Number of functional
meters
The Three Phases
Phase 1
12 Months
Phase 3
24 Months
O&M Plan
Take-over Operations
Study & Survey
Design & Engineering
IMIS
Capital Investment Plan
• Implementation of CIP
• Rehabilitation works
• Metering program
• O&M
• Sustainability of
operations
•O & M
•Billing & Collection
•Customer Support Systems
Phase 2
36 Months
•
•
•
•
•
•
Key Contractual Milestones
Key Dates
Key Contract Milestones
November 28th, 2008
Effective Date (Contract Signing Date)
January 27th, 2009
Preparatory Commencement Date (Zero Date of the contract)
•
April 26th, 2009
•
April
25th,
April
26th,
Submission and Approval of O&M
Plan (minimum 30 days for approval);
Take-over of Operations
2010
PHASE 1:
PREPARATORY PHASE
(12 MONTHS)
Submission and Approval and CIP
(minimum 30 days for approval or else
deemed approval)
Commencement of CIP implementation
2010
PHASE 2:
REHABILITATION PHASE
(36 MONTHS)
PHASE 3:
MAINTENANCE PHASE
(24 MONTHS)
Operations and Maintenance
April 26th, 2013
April 26th, 2015 plus
455 Days
Defect Liability Period
Payment Structure
1. Management fees: Lump sum in two parts.
o Fixed fees (50%), paid in 24 equal quarterly installments.
o Performance fees (50%), paid six monthly on achievement of targets over
project period of 6 years as per performance chart
2. Operating Cost: Lump sum in two parts.
o Fixed fees (30 %), paid in 23 equal quarterly installments
o Performance fees (70%), paid six monthly on achievement of targets over
project period of 6 years as per performance chart
3. Rehabilitation Cost:
o BOQ driven
o Based on Capital Investment Plan (CIP)
o Payable against invoice for completed works not less than Rs 10 lakhs
4. Provisional Items:
o Paid in same manner as rehabilitation costs.
Capital Investment Plan
(Rehab & Provisional Items)
 To be prepared in the first year and will be the basis for
rehabilitation
 Item rate will be the same for the corresponding item quoted in
the bid
 Quantities can differ from what are mentioned in the BOQ
(tender document)
 However, the final CIP price can vary upto +10% of the total
rehab and provisional costs quoted in the bid (“threshold
limit”)
 Inclusion of new items beyond those in BOQ as “contract
variation” and will be outside the 10% “threshold limit”
Performance Targets
Performance Parameter
Weightage
Number of connections with 24x7
30%
Revenue Improvement
30%
Revenue Water in 24x7 area
10%
Resolution of Complaints on service in
24x7 area
10%
Resolution of Complaints in entire
zone
5%
Leakage levels in 24x7
5%
Quality compliance in 24x7 area
5%
Pressure compliance in 24x7 area
5%
Performance Targets
(to be achieved)
Performance Targets
End of the month from Preparatory Commencement Date
Performance Targets
Unit
6
12
18
24
30
36
42
48
54
60
66
72
Number of connections with 24x7
Connections
0
0
5000
10000
10000
10000
15000
15000
100%
100%
100%
100%
Revenue Improvement
%
5%
5%
5%
5%
3%
3%
2%
2%
2%
2%
Revenue Water in in 24x7 area
%
65%
70%
75%
85%
85%
85%
85%
Resolutions of Complaints on service in 24x7 area
%
Resolution of Complaints in entire zone
%
Leakage levels in 24x7 area
l/c/d/m
Quality compliance in 24x7 area
Pressure compliance in 24x7 area
95%
95%
95%
95%
95%
98%
98%
98%
98%
98%
90%
95%
98%
98%
98%
98%
98%
98%
98%
98%
60
55
50
45
40
35
30
25
25
25
%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
%
95%
95%
95%
95%
95%
95%
95%
95%
95%
95%
80%
85%
Break-up of Performance Fee
Break up of Performance (Management) Fee
Performance Fee Break up
Performance Targets
Number of connections with 24x7
Revenue Improvement
Revenue Water in in 24x7 area
Resolutions of Complaints on service in 24x7 area
Resolution of Complaints in entire zone
Leakage levels in 24x7 area
Quality compliance in 24x7 area
Pressure compliance in 24x7 area
Weightage
30%
30%
10%
10%
5%
5%
5%
5%
6
12
0.21%
0.21%
18
1.15%
1.50%
0.50%
0.50%
0.21%
0.25%
0.25%
0.25%
End of the month from Preparatory Commencement Date
24
30
36
42
48
54
2.31% 2.31% 2.31% 3.46% 3.46% 0.00%
1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
0.21% 0.21% 0.21% 0.21% 0.21% 0.21%
0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
60
0.00%
1.50%
0.50%
0.50%
0.21%
0.25%
0.25%
0.25%
66
0.00%
1.50%
0.50%
0.50%
0.21%
0.25%
0.25%
0.25%
72
0.00%
1.50%
0.50%
0.50%
0.21%
0.25%
0.25%
0.25%
60
0.00%
2.10%
0.70%
0.70%
0.29%
0.35%
0.35%
0.35%
66
0.00%
2.10%
0.70%
0.70%
0.29%
0.35%
0.35%
0.35%
72
0.00%
2.10%
0.70%
0.70%
0.29%
0.35%
0.35%
0.35%
Break up of Performance based Operating Cost
Performance based Operating Cost Break up
Performance Targets
Number of connections with 24x7
Revenue Improvement
Revenue Water in in 24x7 area
Resolutions of Complaints on service in 24x7 area
Resolution of Complaints in entire zone
Leakage levels in 24x7 area
Quality compliance in 24x7 area
Pressure compliance in 24x7 area
Weightage
30%
30%
10%
10%
5%
5%
5%
5%
6
12
0.29%
0.29%
18
1.62%
2.10%
0.70%
0.70%
0.29%
0.35%
0.35%
0.35%
End of the month from Preparatory Commencement Date
24
30
36
42
48
54
3.23% 3.23% 3.23% 4.85% 4.85% 0.00%
2.10% 2.10% 2.10% 2.10% 2.10% 2.10%
0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
0.70% 0.70% 0.70% 0.70% 0.70% 0.70%
0.29% 0.29% 0.29% 0.29% 0.29% 0.29%
0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
0.35% 0.35% 0.35% 0.35% 0.35% 0.35%
Key improvements envisaged through
this contract… Obligations of AC








Technical Improvements
Hydraulic simulation & network
up-dation for equitable water
distribution
Setting up & monitoring District
Metering Areas (DMA)
24x7 water supply with min 7m
pressure for the entire Mysore city
Leak detection & reduction
program leading to phase wise
reduction in losses
Reduction in energy consumption
Re-Engineering & Rehabilitation of
Pumping Stations
Improved water quality
Implementation of IMIS
Service Delivery and Commercial
Improvements
 Increase in customer base
 Increase in Billing & Collection
Efficiency
 100% billing every month with
year-on-year increase in revenue
 100% Customer metering
 24 hours customer service
centre
 100% customer complaint
handling in stipulated time.
 Public Awareness Program
 Improved overall customer
satisfaction
Key Obligations of KUWSDB
 Overall contract management including decisions regarding achievement
of performance targets
 Provide support, access to sites, and information to AC for preparation of
OMP and CIP
 Depute the Board employees and pay their pay, benefits, etc. as per
contract conditions
 Approval of OMP and CIP
 Operate, maintain and manage the bulk supplies to the distribution
operating zones as per Schedule 1 of the contract
 Assist AC in approvals for new connections by MCC
 Provide permission to AC for repair/replacement of the facilities and the
right of way to lay new water mains
 Disbursement of management fees, operating costs, bonus to the AC
 Coordinate with MCC, manage and organise the investments for the project
Key Obligations of MCC
 Organize funding for the project out of the annual Budgets and funds
released under JNNURM Program
 Open and maintain a revenue account for all revenues collected by the AC.
 Ensure smooth hand over the operations, maintenance of Distribution
Operating Zone to the AC on the Preparatory Commencement Date;
 Provide to the AC, all data related to O&M manuals, drawings, customer
details, billing related data/hardware/ software, etc.
 Pay all electricity charges incurred in the Distribution Operating Zone for
providing services
 Permit and co-ordinate with the AC in providing water supply connections to
un-connected properties
 Permit AC with road crossing, road cutting and road restoration works for
implementing the rehabilitation works
 Continue to take actions for recovery of historical arrears from customers
 Undertake disconnection or regularization of illegal water connections
reported by AC and assist AC in recovering the regularization charges
 Receive requests for new connections, complaints from customers,
record and forward the same to AC for follow up action
Key Contractual Clauses (1)
 Bulk Water Supply Commitment
o 80.19 MLD and 62.05 MLD for West and East zones respectively
o Failure to meet this obligation (and also for any of other obligations of MCC and
KUWSDB) will result in revision of performance targets
o However, the performance fee for the pertinent period will be payable as per the
original schedule as if AC has met the performance targets
 Quality of water
o Quality of water supplied to the customers shall be at the same minimum level as at
bulk point
 Disconnection Policy
o Action against legal customers for non-payment of bills governed by the existing
bye-laws or procedures of MCC
 Dispute Resolution Mechanism
o Resolved through an Adjudicator appointed by the Employer
o Fee /costs to be shared equally between AC and the Employer
Key Contractual Clauses (2)
 Contract Variations
o Employer can propose variation in scope and AC shall respond with a
technical proposal with financial terms
o Scope changes can include variation in number of connections, service
coverage area, customers, etc.
o AC’s remuneration to be adjusted so that AC is in the same financial position
as if the variation were not implemented
 Value Management
o AC can propose a value management proposal that helps in reducing cost of
services or furthering objectives of the contract, or benefit the employer
o Subject to approval of the proposal, the remuneration will be adjusted to
account for increase in scope and costs
o If the proposal reduces cost of services, AC will receive 10% of savings
Key Contractual Clauses (3)
KUWSDB and MCC Employees for Deputation
 112 Employees in East Zone and 95 Employees in West Zone
 MCC and KUWSDB to issue letter to each employee accordingly before the
effective date
 No changes in their existing terms of employment
 All deputed employees directly report to AC for day-to-day functioning
 Employer shall continue to pay their wages, salaries, increments, leave
entitlements, compensation, employee benefits, pension benefits, medical
and welfare arrangements, insurances, and social security contributions
 Employer may depute more employees/workers and shall be responsible for
paying their wages/salaries, perks, social benefits, etc.
 AC shall effect & maintain minimum insurance against losses & claims
arising from death or injury to any deputed employee as per the norms
stipulated by the Labour Department
Our Mission:
Quality Services For Life !!
Thank You!
OLUMETRIC TARIFF EFECTIVE FROM 1ST. NOVEMBER 2007
Sl.
No.
1
Customer Type
JUSCO Rate
Consumption Block/ Month
Existing Rate – Rs./KL
New Rate (Rs./
KL)
Domestic Consumers
Up to 10 KL
11 to 25 KL
26 to 50 KL
Above 50 KL
7.9
7.9
7.9
7.9
5.00
6.00
8.00
10.00
1A
Domestic Bulk
Consumers
(Housing Complex/
Apartment)
Up to 25 KL x Nos. of units
Above 26 KL to 50 KL x
No. of units
Above 50 KL x No. of units
7.9
7.9
7.9
6.00
8.00
10.00
2
Institutional / Govt.
Up to 20 KL
21 to 50 KL
Above 50 KL
4.4
4.4
4.4
4.40
6.00
7.50
3
Commercial
consumers
Up to 50 KL
51 to 100 KL
Above 100 KL
7.9
7.9
7.9
8.00
10.00
12.00
4
Industrial
Consumers
Up to 500KL
Above 500 KL
9.9
9.9
Meter service charge:
For 15 mm dia. Water meter – Rs. 25.00 per month
12.50
15.00
Sector - V, Salt Lake Project
First P-P-P project in Municipal Water Sector under JNNURM, GOI
Name of Project
Development & Management of Water & Sewerage Networks for Salt Lake
Sector-V at Kolkata on 30 yr BOT basis.
Job Description
Construction of 3 MGD Clear water pumping station, 8 MLD STP, 2.25 ML capacity ESR, 500 mm
dia. DI K9 of 3.2 KM, 150 mm to 700 mm dia. Sewerage Network of RCC Hume pipe class NP3 of
14.43 KM with IPS, Installation of bulk & consumer meter, O&M of entire utilities, Billing and
collection for 30 year concession period.
Client
NDITA, Kolkata (KMDA as Tech. Facilitator)
Project Features

Contract for Bulk water supply to be entered between KMC & NDTA,

Developer to purchase bulk water from KMC @ Rs.5/KL and bill consumers a combined ‘watercum-sewage’ charge based on volumetric tariff.

Any revision in bulk water supply charge by KMC, passed on to consumers.

Developer to retain ‘water-cum-sewage’ connection charge, approved by NDTA

10% escalation on tariff every five years

Metering Policy to be in place.

Min. monthly charge equivalent to 50% of demand charges.

Withdrawal of ground water by existing consumers is prohibited.
Project Value
•
•
Water Supply
Sewerage System
Tariff
Rs. 25 per kL
Funding pattern
65 % Private + 35 % Jnnurm
Partners
JUSCO - VOLTAS
Project Duration
19 Months (Construction Phase), 30 years BOT concession
–
–
Rs. 260.7 million
Rs. 340.7 million
Haldia : Water Supply Project
Name of Project
Construction of new water treatment plant on BOT basis and
Operation and Maintenance of the existing Water treatment Plant 25
year lease
Job Description
Construction of series tube wells and complete existing network including
reservoirs, pipelines and boosting pumping station up to consumer levels
and O & M of new distribution network.
Client
Haldia Development Authority, Haldia
Scope
• O&M of existing Series tube wells 13.62 MLD, raw water pumping
station 28.00 MGD.
• Construction of new 50 MGD WTP in 3 phases: 25 MGD, 12.5 MGD &
12.5 MGD in addition to existing 20 MGD WTP being augmented to 25
MGD.
• Four Nos. 1000 mm dia. MS suction main.
• 380
Project Value
Rs. 880.00 million
Tariff
Ind. Rs.11/kL , Comm Rs.9/ kL , Resn. Rs. 5/ kL , Mun. Rs. 3/kL
Funding pattern
Private
Partners
Ranhill Utilities Malaysia - JUSCO
Project Duration
24 Months (Construction Phase), O&M for 25 Years
Leak detection and rectification works in various divisions of
Chennai city
Name of Project Leak detection and rectification works including renewal of all
existing house service connections and corroded portion of small
distribution mains, phase VI.
Job Description
Description of the work:
1) Mains condition survey
2) Renewal of existing CI/PVC mains & House service connections
3) Leak detection
4) Fixing Injection/Isolation assembly for isolation of sub districts.
5) Supplying, laying, jointing, testing and disinfecting Pipeline
Client
Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB), Chennai
Salient Features
• Rehabilitation of distribution mains of 50 Km covering 42,000 No. of House
service connections
• Cutting mains and taking a sample of 1 meter length for visual examination at
each street or at 150 m intervals
• supplying, laying, jointing, testing and disinfecting of 100mm, 150mm & 200mm
DI pipes.
• Supply and fixing specials, Sluice valves & other appurtenances, Construction of
valve chamber
• Leak detection & leakage level monitoring to achieve ultimate target level of 10
l/c/h
Value
Rs. 184 million
Completion Time
18 Months (June’2010)
Result: NRW improvements
Water Operations - NRW (Industrial Water)
40.0
37.0
35.0
Good
35.0
29.0
30.0
Reductio
n by 90.5
%
%
25.0
20.0
Reduction
by 86%
23.0
NRW - Water Operations Overall
15.0
10.0
5.7
2.92
5.0
40.0
7.8
3
36.0
Good
35.0
5
1.8
30.0
0.0
FY04
25.0
Clarified
FY05
FY06
FY07
%
Raw
FY08
16.8
20.0
15.0
13.92
12.1
10.0
Water Operations - NRW (Potable Water)
40.0
Good
36
35.0
NRW (Overall)
28.4
25.0
%
0.0
32.1
30.0
24.1
23.0
15.0
Reduction by
30%
12.1
9.6
9.6
7.1
6.4 6.2 5.3
6
5.0
0.0
WTP
FY04
Rising Main
FY05
FY05
Reduction
by 49%
20.0
10.0
5.0
FY06
Distribution network
FY07
FY08
FY06
FY07
FY08
Market Share in Municipal Water Management (3)
Population Serviced (Lakhs)
Jamshedpur
Haldia
Mysore
Salt Lake
Tata Motors
K'taka (KUWASIP)
Nagpur
Latur
Population
Serviced
(lakhs)
7
7
10
2.3
0.5
2
0.75
5
Madurai
0.75
Tiruppur
16
TOTAL
51.3
Sub Total
Jusco – Sub Total
26.8
Veolia – Sub Total
2.75
Hydrocomp/SPML - Sub
Total
5.75
MIDL – Sub Total
16
Mkt Share
(%age)
53%
5%
11%
31%
100%