Concept Plan For Ppp In Water Sector


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Concept Plan For Ppp In Water Sector

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Concept Plan For Ppp In Water Sector

  1. 1. 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.
  2. 2. 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
  3. 3. 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
  4. 4. 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 8 4
  5. 5. 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
  6. 6. 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
  7. 7. 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 14 7
  8. 8. 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 16 8
  9. 9. Thank you 17 9