CONCEPT PLAN FOR PPP
IN WATER SECTOR
GOVERNMENT OF ORISSA
1
Objectives of PPP Policy of the
State
Leverage State and Central Government
•
funds, support private investment and to
create a conducive environment.
Setting up of a transparent, consistent,
•
efficient administrative mechanism to create a
level playing field for all participants.
Prepare a shelf of projects to be offered for
•
PPP.
Putting in place an effective and efficient
•
institutional mechanism for speedy clearance
of the projects. 2
The views expressed in this paper are the views of the authors and do not necessarily reflect the views or
policies of the Asian Development Bank (ADB), or its Board of Directors, or the governments they represent.
ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any 1
consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

Continued…….
Provide necessary risk sharing framework in the
•
project structure.
Create a robust dispute redressal mechanism/
•
regulatory framework.
Provide the required viability gap funding (VGF)
•
where the essential projects are intrinsically
unviable.
Create “Orissa Infrastructure Development Fund
•
(OIDF) to facilitate implementation of the
objectives of the policy.
3
PPP Scope in
Infrastructure Sectors
Roads, bridges and bypass,Ports and harbours
•
Airports, airstrips and helipads
•
Inland container depots and logistics hubs
•
Industrial parks, theme parks like Information
•
Technology, Biotechnology parks, Knowledge
parks, Special Economic Zones and Townships.
Water supply, Treatment and distribution
•
Power generation, transmission, and distribution
•
systems. 4
2

Continued……..
Solid waste management
•
Sewerage & drainage
•
Inland water transport
•
Tourism and related infrastructure
•
Health care facilities
•
Education
•
Trade fair, convention, exhibition, cultural
•
centers. 5
Continued……
Urban infrastructure including
•
entertainment and recreational facilities.
Urban Transportation Systems/
•
Improvement of Public Transport Facilities
including construction of state of art bus
stands.
Railways and related projects.
•
Agriculture production and marketing
•
Any other sector/ facility as may be
•
included by the government 6
3

PPP Initiatives already taken/
proposed in the urban areas
Housing
•
Public amenities
•
Operation and Maintenance of Water
•
supply and sewerage system.
7
STATUS OF WATER SECTOR IN
BHUBANESWAR CITY
Present population : 800000
Present supply: 206MLD
Total number of households: 1,44,000
Number of connections : 52000
Present rate of supply : 257lpcd
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4

Key Issues
Network access is low
Large uncovered areas
Intermittent supply
Inequitable distribution
No metering
High NRW exceeding 50%
Inadequate revenue recovery ( 1/3rd of O&M cost)
Low tariff regime
Customer service is not adequate
9
Management cost vrs. income
(Bhubaneswar)
25.78
30.00
22.36
19.94
C
20.00
r
9.73
Ro
7.10
s r 7.59
10.00
e
s
0.00
2003-04 2004-05 2005-06
Financial Year
Expenditure Income
Cost recovery for Bhuaneswar is 38%
maximum.
10
5

Financial sustainability
Inadequate tariff level
Lack of rationalised tariff structure
Poor financial management and accounting system
Age-old cash based single-entry accounting
system
No ring fencing of budget
More staff per 1000 connections compared to well
managed systems
11
WSS Institutional framework
(Orissa)
Minister, UD
&
Chairman, OWSSB
Principal Secretary,
H&UD Department cum Special Secretary, H&UD
Vice-Chairman, OWSSB
Chief Engineer-cum-
Chief Engineer, PH (U) Director,
Member Secretary,
Municipal Administration
OWSSB
12
6

Water Sector Reform
WSS Sector Reform is undertaken by USAID FIRE (D)
project in tune with 74th constitutional amendement.
To delineate roles of policy maker, regulator and
service provider
Evolved Regional Corporation model as an
institutional arrangement for providing WSSS in
place of State run PHED & OWSSB
Business plan with double entry accounting system
has been developed and is in the process of
finalisation.
Legislation along with functionality of corporate
entity is in pipeline.
13
Regional Water Corporations
(RWC)
Housing and Urban
Development Department
Regulation
(HUDD)
Policy, Subsidy,
Capital, subsidies
Regulation
Regional Water Corporation
Fee
Contract
Assets, Bulk supply
Urban Local Bodies
(ULB1, ULB2,….ULBn)
User Charges
Water Services
Consumers
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7

Improvement of water supply
sector of Bhubaneswar city under
JNNURM
Investment outlay assessed: Rs.700.00 crores
Funding source:
Rs560.00 crores GOI
Rs140.00 crores State and ULB share through
JBIC/ADB/other sources
Major infrastructure components:
Intake
WTP
Rising mains
Distribution system( 24X7) in different zones
Pumping systems
Implementation through different contract packages
15
Scope for PPP
O&M of water treatment plant through a
performance based management contract.
Operation and maintenance of the distribution
zones through multiple PPP operators (
competition by comparision) through
performance based management contracts:
Key performance indicators will be specified
Incentive structures to encourage high performance
O&M cost plus a management fee
Transparent bidding process
Period of contract will be for 5 years
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8

Thank you
17
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