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To All the Commissioners 33 Urban Local Bodies, MA & UD Department File No: 77(13-1)/SAC/COO(S)/GEN/2018, dt: 25.10.2018 Sir / Madam, Sub: SAC- Model Letter for ULBs for obtaining Permission fromGovernment to lease out immovable property for a period up to 10 years todevelopers for establishment of Faecal Sludge Treatment plants in 33 ULBs andstatus report on Concession Agreement, Land allocation and establishment ofNSS/FSM Cell-Reminder-reg
@@@@@@@ Immediate attention is invited to the subject cited above. It is to inform that, Swachha Andhra Corporation (SAC) has floatedRequest for Proposal (RFP) in April,2018 for establishment of Faecal SludgeTreatment plants in 76 Urban Local Bodies in the state of Andhra Pradesh onDesign, Build, Operate and Transfer (DBOT-Hybrid Annuity) basis by dividing theproject in to 7 Packages with each package having 11 ULBs. Only 3 packages 4,5, &6 were finalized and the Concession Agreements have been concluded on24.9.2018. Details of Package-4,5 and 6
Package Details
Names of ULBs Package-wise
No of proposed FSTPs
Name of the Developer
Proposed Technology
Package 4
Addanki, Chimakurthy, Chirala, Bapatla, Macherla, Mangalagiri, Piduguralla, Ponnur, Repalle, Sattenapalli, Vinukonda.
11
M/S MSGP Infratech and TIDETechnocrats, Bangalore, Karnataka
Pyrolysis
Package 5
Tadepalli, Jaggiahpeta, Nandigama, Nuzivid, Pedana, Tiruvuru, Vuyyuru, Jangareddigudem, NIdadavole, Tanuku, Palacole.
11
M/S Arvind Envisol Ltd, Ahmedabad, Gujarat
Pyrolysis
Package 6 Amalapuram, Gollaprolu, Mandapeta, Mumidivaram,Peddapuram, Pithapuram, Ramachandrapuram, Samalkot, Tuni,
11 M/S MSGP Infratech and TIDETechnocrats
Pyrolysis
File No.77(13-1)/SAC/COO(S)/GEN/2018
Yeleswaram, Kovvur.
Total 33
Further it was also intimated through vide File No:77(13)/SAC/COO(S)/GEN/2017, dt: 03.10.2018 that ULBs to
• Sign the Concession Agreement with the developers for setting up FSTPs • Alocate 50 Cents to 1 acre of encumbrance free land for project development
to the developers immediately • Finalize the site, developer will enter land lease agreement with respective
ULBs for a period of 10 years with Re1 per sq meter per annum. Please find enclosed Model Letter for obtaining Permission from Government.
• Provide motorable road and electricity supply up to the Project site • Regulate desludging operators and direct them to deliver faecal sludge and
septage at the Project site for treatment • To assist in all approvals & permissions including for sourcing of water both
potable and for treatment, and for environmental clearances. • Establish Non-Sewered Sanitation/FSM Cell
It is to inform that the Developers M/s Tide Technocrats and ArvindEnvisol Ltd have carried out field visits and also contacted the ULBs for aboveactions. The status Report has been enclosed herewith for reference. Therefore, all the Municipal Commissioners are once again requested toexecute the Concession Agreements and allocate land parcel for the developers sothat the establishment of the 33 Faecal Sludge Treatment Plants take placeimmediately. Also establish Non-Sewer Sanitation Cell in respective ULBs anddepute 2-3 members team as mentioned in the attachment and inform the same tothe undersigned by 31st October 2018 without fail. Also necessary steps may betaken to send proposals immediately for allotting the land to the agencies on leasebasis as per the procedure in vogue. Model letter for getting approval from theGovernment is herewith enclosed. Yours faithfully, D MURALIDHAR REDDY,IAS MANAGING DIRECTOR Enclosure:
1. Status of Concession Agreement entered with ULBs 2. Model Letter for obtaining Land permission from Govt.
Copy submitted to the Principal Secretary to Government, MA & UD Department. Copy to the Director Municipal Administration, Guntur for information and issuenecessary instructions to the Commissioners. Copy to the RDMAs for information and necessary action. Copy to the Arvind Envisol Ltd for information and necessary action.
File No.77(13-1)/SAC/COO(S)/GEN/2018
Copy to the MSGP Infratech and TIDE Technocrats for information and necessaryaction. Copy to the Director, ASCI for information.
File No.77(13-1)/SAC/COO(S)/GEN/2018
Digitally signed by DMuralidhar ReddyDate: 2018.10.26 11:49:58 ISTReason: Approved
Signature Not Verified
From,
Sri…………….
Commissioner
ULB,
To, The Principal Secretary to Government, MA & UD Department, AP Secretariat, Velagapudi
Amaravathi.
(Through the Director of Municipal Administration, Andhra Pradesh, Guntur)
Roc. No., ………………………… dated.
Sir,
Sub: - ULB – Establishment of Faecal Sludge Treatment Plant (FSTP Project) at ------------- ULB of -------
---------- District of, Andhra Pradesh state on DBOT HYBRID ANNUITY MODE by M/s. – Land to an
extent of Ac. in survey No., ……, District – Lease Permission – Requested – Regarding.
Ref: -
@ @ @
I submit that in the reference ……………. cited, the Managing Director, Swachha Andhra Corporation
has informed that M/s. ………………………Agency has been selected as the successful bidder for
establishment of Faecal Sludge Treatment Plant at………………. ULB under DBOT-Hybrid Annuity
Mode as per the Government orders vide …………. cited above. The developer (successful bidder)
would run the project for a period of 10 years from the date of Commissioning of plant. Either the
agency or its Special Purpose Vehicle (SPV) will execute the project and will be responsible for
designing, engineering, procurement, construction, operation and maintenance of the project for 10
years and Transfer to ULB and in this regard shall enter into a long-term Concession Agreement
with ………………. ULB within…………. ………… days after awarding the project.
Further, this Municipal Council has passed a resolution vide ………………cited above, allocating the
land for establishing the Faecal Sludge Treatment plant under DBOT-HYBRID Annuity mode to
process / treat the generated Faecal Sludge as per policy and operative guidelines for safe
management of Faecal Sludge and Septage Management (FSSM) in urban local bodies was notified
by the GoAP (GO 134) on March 31, 2017 and as well National FSSM Policy 2017.
ULB has to arrange the land for Faecal Sludge Treatment plant at Rs. 1/- Sq. Mt per annum/per acre
on lease basis.
Accordingly, this ULB is proposed to handover the land to the Developer at ………… R.Sy.No. …… of
___________Acres Cents to establish Faecal Sludge Treatment Plant ( project). The proposed
construction period is 6 months from the date of concluding Concession Agreement.
I submit that as per the section 277(4) of AP Municipalities Act, 1965, the Government is the
competent authority to accord permission to the Municipal Council to lease out immovable property
for a period up to 10 years.
STATEMENT OF ANNUAL LEASE AMOUNTS WITH 5% ESCALATION ON PREVIOUS YEAR LEASE
AMOUNT
Hence it is requested to issue necessary orders for leasing …………acres of Land for establishment of
Faecal Sludge Treatment Plant at…. Survey No…………Village/Panchayt……Mandal….to
………………Developer for a period of 10 Years as per the table.
Commissioner
……………………. ULB
Copy to
The District Collector for Information
The Director of Municipal Administration
The Managing Director, Swachha Andhra Corporation
S. No 1 2 3 4 5 6 7 8 9 10
Annual Lease
Amount Per Acre (1 Rupee
Per Sq.M)
LEASE AGREEMENT
This Agreement of Lease is entered into on this -------- day of ----------, 2018 at ------
(Location) by and between: -------------------------------------------------- (Name of the ULB),
established under the Andhra Pradesh Municipalities Act 1965 and having its office at-------
--------------, represented by its Commissioner, Sri------------------ hereinafter called the “short
name of the ULB ” which expression shall, unless repugnant to the context or meaning
thereof, mean and include its administrators, successors and assigns) of the FIRST Part,
AND
M/s. (name of the company), a company incorporated under the Companies Act, 1956/2013,
having its registered office at, represented by its authorized person Sri ----------- (name)
(Designation), herein after called as “Lessee”, which expression shall, unless repugnant
to the context or meaning thereof, mean and include its administrators, successors and
assigns) of the SECOND Part,
The (insert name of the ULB) and the Lessee are hereinafter referred to individually as the
"Party" and collectively as the "Parties"
WHEREAS
A. Whereas Municipal Administration and Urban Development Department, Government of
Andhra Pradesh, had authorized Swachha Andhra Corporation (SAC), a Government of
Andhra Pradesh Company incorporated under the Companies Act 2013, to undertake the
Bidding Process for selection of the bidder to set up and operate standalone Faecal Sludge
Treatment Plants (FSTPs) in 76 (Seventy Six) Urban Local Bodies of Andhra Pradesh under
Public Private Partnership (PPP) framework on Design, Build, Operate & Transfer (the
“DBOT Hybrid Annuity”) basis. Accordingly, SAC invited Request for Proposal (RFP) from
the competent and eligible bidders. After due evaluation of the proposals received from the
bidders, ------ (Name of the Selected Bidder) has been selected for award of the Project
for its implementation. The Letter of Award (LOA) was issued to ------ (name of the Selected
Bidder) requiring, inter alia, the execution of the Concession Agreement within 30 (thirty)
days of the date of issue of LOA. The Selected Bidder having fulfilled the terms and
conditions of the LOA has requested SAC for entering into the Agreement. Accordingly, the
Concession Agreement between Swachha Andhra Corporation and ------- (Name of the
Concessionaire) was signed on ------.
B. Whereas ------- (Name of the Concessionaire) has undertaken the Project to establish and
operate/maintain the FSTPs in accordance with the provisions of the Concession
Agreement in the Urban Local Bodies covered under Package {1/2/3/4/5/6/7} as defined
therein in the Concession Agreement dated ___________ entered into with the Managing
Director, Swachha Andhra Corporation (hereinafter referred to as “the Concession
Agreement”).
C. AND WHEREAS in terms of the conditions as stipulated in the Concession Agreement, the
Concessionaire shall have to enter into a land lease agreement with the respective ULBs
and the Project to be established on the land to be leased by the respective ULBs to the
Concessionaire.
D. Now therefore, in consideration of the foregoing and respective covenants and agreements
set forth in this Agreement, the sufficiency and adequacy of which is hereby acknowledged,
and intending to be legally bound hereby, the Parties agree as follows:
1. Lease of Land and Lease Period
(a) An extent of ----------- Acres situated in RS No.---------, ------------- (V)---------
-- (M) ……. District is hereby leased to the Lessee for a Lease Period of 10 Years for the
specific purpose of setting up & operation and management of the Faecal Sludge
Treatment Plant. The details of the Land are clearly demarcated in the sketch given in the
Annexure-1. The Land is free from all encumbrance and encroachment and legal hurdles.
(b) The lease shall commence from the date of this Agreement or the date of handing over
of the Land whichever is later. The lease, unless terminated earlier in terms of this
Agreement or the Concession Agreement, shall stand terminated at the end of the lease
period by effluxion of time.
2. Annual Lease Amount and its Payment
a) The Annual Lease amount for the total extent of the Land Leased under Article 1
above shall be Rs.-------- (Rupees --------- only) with an annual escalation at 5%
over each previous year amount. The year-wise lease amounts payable are as given
in Annexure-2.
b) The Annual Lease amount shall be payable on or before 10th of 1st Month of each
year of the Lease Period by means of Demand Draft obtained from any scheduled
commercial Bank in favour of ------------ payable at (Location).
c) in case of default in the payment of the Annual Lease amount within the time under
Clause 2 (b) above, the same will be recovered from the performance guarantee
given by the Lessee under the Concession Agreement, in which case the lessee/
Concessionaire shall replenish the performance guarantee to the extent of recovery
within 30 days of such recovery and failing to do so within the time shall be a
default on the part of the Lessee/ Concessionaire and the Lessor shall have the right
to terminate the Lease Agreement without any prior notice of whatever nature.
3. Guarantee of Payment of Lease Amount
Notwithstanding anything contained in the Concession Agreement, both the Parties
hereby agree and admit that for any default in the performance of its obligations and
responsibilities by the Lessee under this Agreement or the Concession Agreement
specific to the Lease and where the liquidated damages are envisaged, the same may
be recovered from out the Performance Guarantee given by the Lessee under
Concession Agreement.
4. Applicability of Concession Agreement
All other terms and conditions concerning the matters relating to the land and lease
not herein specified shall be governed by the relevant terms and conditions stipulated
in the Concession Agreement and wherever the context requires the Concession
Agreement and this Agreement shall be construed as mutually inter- related and
interdependent
5 Coterminous
This Agreement is coterminous with the Concession Agreement and vice-versa.
6. Registration of the Agreement.
This Lease Agreement shall be registered with appropriate stamp duty and the
registration fee within the stipulated time under The Indian Registration Act 1908 and
The Indian Stamp Act 1899 at the cost and expense of the Lessee.
IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED AND DELIVERED THIS AGREEMENT
AS OF THE DATE FIRST ABOVE WRITTEN.
Witnesses for Parties (1) For and on behalf of the First Party
1. Signature Signature:
Name Name:
Address Designation:
Mob.No. Common Seal:
(2) For and on behalf of the Second
Party
1. Signature Signature:
Name Name:
Address Designation:
Mob.No. Common Seal:
ANNEXURE-1
SKETCH OF THE
LAND
An extent of acres situated in R.S.No. , (V) (M) bounded by:
North
:
South
:
East:
West:
(Sketch)
ANNEXURE-2
STATEMENT OF ANNUAL LEASE AMOUNTS WITH ESCALATION (5%) YEAR-WISE for
period of 10 years
S. No 1 2 3 4 5 6 7 8 9 10
Annual
Lease
Amount
Per Acre
(1 Rupee
Per
Sq.M)
STATUS REPORT ON VISIT TO ULBS OF PACKAGE 4 ON 8-10-2018 TO 13-10-2018 FOR SETTING UP OF FAECAL SLUDGE AND SEPTAGE TREATMENT PLANTS (FSTPs)
IN URBAN LOCAL BODIES OF ANDHRA PRADESH ON DESIGN, BUILD, OPERATE &; TRANSFER (DBOT HYBRID ANNUITY) BASIS.
Sl No
Location
Witness Sign on
Concession Agreement
Land Availability
according to Commissioner
Land Details Land Location Notes
1 Addanki Yes Yes 1 acre land available for FSTP Singarakondapalem Plan land available for FSTP construction
2 Chimakurthy Yes No Land not available for FSTP Near Essar petrol bunk, Darsi road
Land identified but not available due to public protest
3 Chirala Yes Yes 0.25 Acre of land available for FSTP Ramapuram Plan land available for FSTP construction
4 Bapatla No Yes 1.2 acres of land available for FSTP Pedananandipodu road, Zomulapalem
Land identified for FSTP in disposal yard, waste dump needs to be cleared before construction
5 Macherla No Yes 1 acre land available for FSTP Survey No. 1197/5-8 and 1287/2
Plan land available for FSTP construction
6 Mangalagiri No No Land not available for FSTP due to huge waste dump at identified land
Survey No. 273, Near new bank colony, Raithu Bazar
Identified land full of waste of 6-7 meter height
7 Pidugaralla Yes Yes 0.5 acres of land available for FSTP
Survey No. 892/49/A, Kumaripalem, Sitarampuram
Identified land has 50% of waste dump of 1-1.5 meter height and ULB doesn’t have fund to clear the waste
8 Ponnur Yes Yes 0.5 acres of land available for FSTP Near Agricultural Market Yard, Nidubrollu
Identified land has waste of 1 - 1.5 meter height and ULB started clearing waste in identified area
9 Repalle Yes Yes 0.3 acres of land available for FSTP requested to provide 0.5 acres
Survey No-57, Beside Mountfort School, Ward 25
Identified land has waste dump of 2 - 3 meter height and ULB will clear the waste in identified area
10 Sattenapalli Yes Yes 1 acre land available for FSTP Survey No.109/2B, Kankaralapalli, Donka Road
Plan land available for FSTP construction
11 Vinukonda No No Land Not available for FSTP Land under discussion between ULB and Mahindra. Existing land fully allotted to them for Solid Waste Management.
Note: Witness sign for Bapatla and Macherla is expected to be done.
STATUS REPORT ON VISIT TO ULBS OF PACKAGE 6 ON 15-10-2018 TO 17-10-2018 FOR SETTING UP OF FAECAL SLUDGE AND SEPTAGE TREATMENT PLANTS
(FSTPs) IN URBAN LOCAL BODIES OF ANDHRA PRADESH ON DESIGN, BUILD, OPERATE &; TRANSFER (DBOT HYBRID ANNUITY) BASIS
Sl No
Location Sign on
Concession Agreement
Land Availability
according to Commissioner
Land Details Land Location Notes
1 Amalapuram No No Land Not available for FSTP construction due to huge waste dump at identified land
Not available Identified land has waste of 2 - 3 meter height and ULB will clear the waste in identified area
2 Gollaprolu No No Land Not available for FSTP construction
Not available Land not identified for FSTP construction, ULB has no funds for purchasing land
3 Mandapeta No No Land Not available for FSTP construction
Not available Land not identified for FSTP construction, ULB has no funds for purchasing land
4 Mumidivaram No No Land Not available for FSTP construction
Not available Land not identified for FSTP construction, ULB has no funds for purchasing land
5 Peddapuram Yes Yes 1 acre land available for FSTP Haveli, Peddapuram
Land allotted for FSTP in disposal yard, waste dump needs to be cleared before construction
6 Pithapuram Yes Yes 0.5 acre land available for FSTP Disposal site, Land allotted for FSTP in disposal yard, waste dump needs to be cleared before construction
7 Ramchandrapuram Yes Yes 0.5 acre land available for FSTP Disposal yard, Ramchandrapuram Bypass
Land allotted for FSTP in disposal yard, waste dump needs to be cleared before construction
8 Samalkot No No Land Not available for FSTP construction
Not available Land not identified for FSTP construction, ULB has no funds for purchasing land
9 Tuni No No Land identified for FSTP and under registration
Not available Land identified for FSTP and under registration
10 Yeleswaram Yes Yes 1 acre land available for FSTP Survey No. 52, Shiridinagar Road
Quarry Land identified for FSTP in disposal yard, waste dump needs to be cleared before construction
11 Kovvur No No Land identified for FSTP construction
Not available Land identified for FSTP and under registration
Note: Witness sign for Tuni and Kovvur is expected to be done.
ULB S.no ULB Site name FSTP Capacity District Remarks Land Status
Witness Sign on
Concession
Agreement
1 Tadepalli 20KLD Guntur CA to be signed . Land is available to be allocated yet to be signed
2 Jaggayyapet 15KLD Krishna
Concession Agreement is signed. 2 sites are identified and yet be finalised,Council
has to take resolution on site. to be allocated Signed
3 Nandigama 15KLD Krishna Concession Agreement is signed. Allocated Signed
4 Nuzividu 15KLD Krishna
Concession Agreement is signed. Land is available , however Council Resultion is
awaited. to be allocated Signed
5 Pedana 10KLD Krishna CA yet to be signed. Land is available but Council has to take a decision. to be allocated yet to be signed
6 Tiruvuru 10KLD Krishna CA signed and land is allocated Allocated Signed
7 Vuyyuru 15KLD Krishna concession agreement is signed. Land is availbale , to be allocated. to be allocated Signed
8 Jangareddigudem 15KLD Westgodavari CA is signed. land is available, letter to be obtained from Revenue Department. to be allocated Signed
9 Nidadavolu 15KLD Westgodavari CA yet to be signed. Land is not Available to be allocated yet to be signed
10 Tanuku 25KLD Westgodavari CA yet to be signed. No land to be allocated yet to be signed
11 Palacole 20KLD Westgodavari CA yet to be signed, Land identification in progress to be allocated yet to be signed
PACKAGE-5 ARVIND ENVISOL LETD