24x7 Water supply project for nagpur city

NAGPUR MUNICIPAL CORPORATION

Nagpur

• History : 300 Years old.• Location : Geographical Centre of

India.• Population: 2.50 million • Area : 217 Sq. Km• Political : Winter Capital of

Maharashtra.• Known for : Oranges• Facilities : Education, Health Services.• Tourist Place : 4 Major Tiger Projects.• Weather : Temp 80c to 480c(Summer).

Rainfall- 1200 mm. • Growth in Population: Reach 5.0

million in next 25 years.

HISTORY OF NAGPUR WATER SUPPLY

YearPopulati

on Water

Supplyin mld

lpcd Rate Sources

1921 145000 16.50 114 Ambazari + Gorewada

1941 302000 45.00 149 Ambazari + Gorewada +Kanhan

1961 644000 80.00 124 Ambasari + Gorewada +1st Aug. Kanhan

1981 1217000 125.00 103 Ambazari (discarded ), Gorewada + 3 Times Aug. to Kanhan

2001 2150000 370.00 172 Gorewada + Kanhan + Pench -I + Pench -II

2004 2350000 470.00 200 Gorewada + Kanhan + Pench -I + Pench -II + Pench -III

Gorewada

RAW WATER SOURCES : (AS PER IRRIGATION DEMAND AGAINST NMC)

PENCH DAMP

RAW WATER UFW>20%

+ MAJOR LOSSES THROUGH CANAL(Irrigation Account)

KanhanP

Rahari

WATER SUPPLY SOURCE LOCATION

New water sources are far away will need high capital and energy cost.

RAW WATER PUMPING STATIONSAt Mahadula (370 - 440 Mld)At Kanhan (125 Mld) and

Old Gorewada (17 Mld) by gravity

Salient Features of Nagpur Water Supply Infrastructure

WATER TREATMENT PLANT/ PURE WATER PUMPING

Description Rated Capacity of Treated Water

(mld)

Actual Operating CapacityIn mld

1) Kanhan 108 120

2) Gorewada (Old)

16 16

3) Pench-I 113 136Upgraded

4) Pench-II 133 140

5) Pench-III 100 120Design

Total 470 532

At Seminary HillsCapacity – 24.97 MlG.L. – 349.700 M

MASTER BALANCING RESERVOIRS

At Governor HouseCapacity – 22.74 MlG.L. – 344.000 M

AT Sitabuldi Fort Capacity – 22.7 Ml G. L. - 334.300 M

PURE WATER DISTRIBUTION TRUNK MAINS

1200 MM TO 300 MM appx. 100 km

STORAGE RESERVOIRS 43 RESERVOIRS AT 31 LOCATIONS TOTAL CAPACITY – 151.79 ml

DISTRIBUTION NETWORK

Appx.2100 K.M. of length in 10 Water Distribution Zones of Nagpur City

WATER SOURCES FOR NAGPUR WATER SUPPLY

Kanhan20%

Gorewada3%

Pench77%

77% OF RAW WATER IS FROM PENCH RIGHT BANK CANAL AT 48.5 KM CHAINAGE AT MAHADULA . IT IS ALSO A MAJOR SOURCE OF WATER LOSS.

COMAND AREA FOR Kanhan SOURCEPOPULATION : APPX. 0.8 MILLION

WATER DEMAND & SUPPLYExhibit- I

Water Demand & Supply (Constant Rate of supply f rom WTP)

0

200

400

600

800

1000

Year

Wat

er Q

uant

ity

(mld

)

Demand Within NMC limits

supply

Demand Within NMC limits

488.5 531.62 709.18 933.74

supply 470.00 470.00 470.00 470.00

2004 2011 2021 2031

WATER SUPPLY MASTER PLANYear Demand Supply

(As on 2004)

Future Planning Surplus / Deficit Over

Existing Supply (+/-)

Mld

Net Surplus / Deficit Over

Existing + Future Planned Supply

2011 532 470 113 (Pench-IV additional thruWater saving)

(-) 62 +51

2021 709 470 113 (Pench-IV) + 175(Rahari-I)

(-) 239 +49

2031 934 470 113(Pench-IV) + 175(Rahari-I) + 175(Rahari-II)

(-) 464 +1

NEED FOR REFORMS IN WATER SECTOR

Municipal Corporation Makes Payment to Irrigation Department for : 540 ml/Day (annual avg.)Municipal Corporation Supplies Treated Water to City : 530 ml/Day Municipal Corporation Billing to all consumers against water supply: 245 ml/Day (annual avg.)

Total Water Losses /UFW/ NRW are 291 ml/Day i.e. 54 % of supply.

Annual expenditure of Municipal Corporation on water supply : Rs 106 crores

Total demand from consumers against water bills: Rs 70.7 crores (deficit of Rs 36.5 crores)

Total recovery against water bill : Rs 50 crores (arrears of Rs 20.70 crores) STATEMENT OF WATER BILLING DEMAND TO CONSUMER AND IT’S RECOVERY

YEAR DEMAND RECEIPT % RECOVERY (IN Rs. CRORES) (IN Rs. CRORES)2001-2002 70 44 63 2002-2003 73.50 45 63 2003-2004 71.50 50 69

WATER SUPPLY370 MLD370 MLD490 MLD

OPEX is Rs 3.30/ 1000 ltrs. @ WTP ANNUAL ENERGY BILL OF Rs. 28 CRORE /YEAR

NMC Water Supply: Income Expenditure (in Rs.Lakhs)

2003-04Actual

2004-05Actual

2005-06Actual

2006-07Actual

2007-08(BUDGET)

Establishment Expenses 501.96 574.85 623.86 640.00 705.00

Energy 2186.32 2110.02 2040.02 2770.00 3265.00

Raw water 1173.25 939.35 1356.12 852.29 1200.00

Other expenses 195.90 274.85 191.74 346.00 439.00

M & R 480.20 397.46 679.53 582.71 794.00

Total Operating Expenses

4537.63 4296.51 4891.27 5181.50 6397.00

Water Charges recovery 4891.20 5146.01 4840.70 5011.00 5500.00

Old Loan Repayment 3208.47 2111.31 3711.40 4451.48 1879.51

Capital Expenses 1852.88(Pench-3)

527.91 720.87 937.24JNNURM

1561.00JNNURM

MeasurementLosses 125 mld

TREATMENT500 mld

Distribution480 mld

Commercial losses/ theft/metering error

Physical losses

Losses20 mld

SYSTEM EFFICIENCY : 32%Annual Loss (W/O Dep): Rs 56 croreWith Depreciation : Rs 75 crore (appx)

NAGPUR WATER SUPPLY: Status before JNNURM

140 mld

235 mld

Recovery200 mld

Raw water Purchase 625 mld

LossesIn canal

Collection Losses 45mld

Water sector Challenges: NMC• Water Losses and UFW• Equitable distribution (Alternate day / 20 hrs/day)• Accountability• Water to Slums (inefficient system)• Water network coverage and inadequacy of network• Water supply management during summer peak demand • Old and inefficient assets• Delay in capacity augmentation for future demand from

Limited water sources.• Capital availability • Low water tariff and Poor billing mechanism.• Lack of professional approach.

BWSSB-NOV '96

Inadequate maintenance of existing assets

Lack of operational expertise

High UFW Strain on Water

Resources Tariffs not rational

Unsatisfied demand

Poor cost recovery

AUGMENTATION• Strain on water

resources

• Additional capital expenditure

FUNDING CONSTRAINTS

THROUGH COMMERCIAL

SOURCES

FUNDING BURDEN ON NMC/STATE

MISMATCH BETWEEN INCREASING NEEDS &

DECREASING RESOURCES

NMC Strategy

STRATEGY• REFORMS IN WATER

SECTOR

• INVESTMENT SUPPORT FROM

JNNURM

• IMPLEMENTATION THROUGH PPP MODE

NMC Strategy for Reforms in Water Sector

• Fixing of Benchmarking and Performance indicators through Water audit, Energy audit & Financial reforms.

• UFW/NRW reduction program with investment plan• Assets Up gradation plan for better serviceability and efficiency• Cost reduction program (Energy, Water & O & M Cost)• Improvement in services to consumer special emphasis to urban poor• Implementation of augmentation plans with inbuilt efficiencies.• Low cost Funds / Grant from Jn-NURM/ Tax free bonds/ PPP• Performance based contract with 5 to 25 years of O & M with private

participation• Quality & Cost based selection criteria for contractors, consultants and

Operators.• Rationalization of Water Tariff and Billing with Meterisation.• Capacity building of NMC employees by exposure and training.• Review of water supply master plan with inclusion of water reuse option

……………….. Moving towards Continuous Water Supply in Nagpur

1. Water & Energy efficiency Project worth Rs. 96 crore has been approved and funds received from JNNURM

i. Reduction in Raw water UFW by 100 mld (Annual savings of Rs. 2.0 Crore on investment of Rs. 35 lakhs)

ii. Water Audit & Leak Detection Phase-I of Rs. 28.0 Crore. (Step towards bringing down the UFW to less than 25%)

iii. Energy Efficiency Program of Rs 25.00 Crore is under implementation. (Reduction in energy consumption by 20%)

iv. Up gradation & Expansion of Distribution Network of Rs 43 Crore (To increase the coverage of piped water network to 100% and equitable distribution of water)

STEPS TAKEN BY NMC STEPS TAKEN BY NMC FOR BETTER EFFICIENYIN WATER SUPPLY FOR BETTER EFFICIENYIN WATER SUPPLY

2. Pench-4 : Aug. water to supply project through reduced water losses in canal. : Rs 422 crore has been sanctioned under JNNURM (project cost increase to 550 crore)

3. New Water Supply Policy for Slums. To reduce UFW and service to urban poor.

4. Rationalisation of Water Tariff. (To recover O & M Cost + Telescopic tariff for water conservation)

5. Up gradation of Kanhan water supply systems (Project cost Rs. 83 crore sanctioned under JNNURM ) (Optimum Utilisation of water resources)

6. Water Reuse Projects under WENEXA-II: To make the region water surplus : Project cost Rs.131 crore sanctioned under JNNURM

7. Resolution by General Body for PPP mode to implement 24x7 project

STEPS TAKEN BY NMC STEPS TAKEN BY NMC FOR BETTER EFFICIENYIN WATER SUPPLY FOR BETTER EFFICIENYIN WATER SUPPLY

JNNURMPHASE-1 Projects

CostIn Rs crore

Completion Outcome

Leak Detection

3.30 Dec’2008 •Flow Meters from source to ESR•Reduction in BW –UFW to 2% from 23%

Water Audit

25.00 June’2010 •24x7 for 15000 connection by Sep’09• Replacement of 20000 consumer meter•Reduction in UFW < 25%

Energy Audit

28.00 Dec’2008 •Replacement of All Pumps installed prior to Year 2000 with minimum efficiency of 70%•Reduction in system head by 12m for Pench-1•Centralized monitoring system•Infrastructure for equitable dist.

Expansion of Network

43.21 July’2009 •Connectivity to 572 layouts•Population over 2.0 lakhs will be covered in piped water network

JNNURMPhase-1

CostIn Rs crore

Completion Outcome

Kanhan Up gradation

87.65 Dec’2010 •New Plant of 240 mld and discarding the old plant of 120 mld with Pumps

Pench-4Part-1

210.00 Feb’2011 •Replacement of Canal by 2300 mm pipe•Additional Raw water of 115 mld from reduction in water losses in canal

Pench-4Part-2

70.80 Feb’2011 • New WTP of 115 mld at Godhani•Trunk main up to MBR

Pench-4Part-3

87.68 Feb’2011 •Service Reservoirs 25 nos•Feeder Mains 35 Km

Pench-4Part-4

174.00 Feb’2011 •Distribution system of 225 Km

TotalJNNURMPhase-1

729.64 Feb-2011 •Total Production Capacity 765 mld•Rehabilitation of old Pumps and WTP•10% of Area will be converted in to 24x7

Water Tariff for Conservation and Sustainability

• Water Tariff for full cost recovery for sustainable water business.• Subsidized Tariff to Urban poor and low domestic consumption 55 lpcd • Tariff at cost for domestic consumption up to 135 lpcd • Premium Tariff for domestic consumption beyond 135 lpcd and non

domestic usage• Indexation with raw water and energy charges. It enable to pass

additional cost (70% of operating expenses) directly to consumer as surcharge.

• Tariffs are sufficient to meet Operating expenses and repay the loan for Jnnurm Projects

• Earning will be better with operational efficiency and reduction in Non Revenue Water.

Tariff RevisionCatagory Old Tariff /1000 Ltrs

New Tariff Remark

Residential Rs 3 to 4 Rs. 8 to 15 for > 8 units per month as per telescopic consumption

•Minimum chargesReplaced by Monthly access charges (Rs 56 for 15mm)

Semi Residential NA Rs 8 to 18 >8 units Min access charges are Rs 100

Institutional Rs 12 Rs. 15 to 20Commercial-1 Rs 20 Rs. 25 to 100Commercial-2 NA Rs 60 to 540 Mineral water +

Cold drink

Slum Rs 25 PM Rs. 30 to 80 PM Kaccha, Concrete, Multifloor

Indexation NA Energy + Raw water Directly passing to consumer as surcharge

Annual Revision NA 5% to MC and 10% to 25% to GB

No need to approval from GOM

Action Plan Summary of Water Efficiency Projects & Tariff Revision

Cash FlowSr. No.

Description Rs. (Crore

1 Total Investment including Augmentation

730

2 Annual Savings / Additional Revenue

71

3 NMC Share (30%+)in Loan 300

4 Annual Burden (10 years repayment)

54.00

5 Cash Surplus 17.00

TREATMENT535 mld

Distribution530 mld

Commercial losses/ theft/metering error

Physical losses

Losses5 mld

Benefits after partial Implementation•System Efficiency : 37% from 32%•Reduced financial losses by tariff revision•Increased water supply to distribution by 40 mld

NAGPUR WATER SUPPLY: Status After Implementation of JNNURM Projects

285 mld

Recovery200 mld

Collection Losses 45mld

Raw water Transmission by Pipe

Review of NMC Maintenance Record

Review of NMC Maintenance Record

Review of NMC Billing Record

Analysis of DMA results for leak Detection

Total No. of Conn.

(Studied)

Consumers Test Zone

Legal Conn.

No Bill Conn.

ILLegal Conn.

4141 2866 536 708

100% 69% 13% 17%

Total Suply (m3/day) Bulk

Meter

Recorded NMC Billing m3/Day

3794 1753

100% 46%

Analysis of DMA results for leak Detection

Commercial Losses

Losses in Network Upto Consumer End (Physical

Losses +un identified Illegal Conn.)

Total Losses

Unit (m3) Unit (m3) Unit (m3)

1373 674 2053

36% 18% 54%

Analysis of DMA results for leak Detection

Sr. No. No. of MetersActual Study

Working Flow Meters m3/Day

Recorded NMC Billing

m3/DayDifference Percenta

ge (%)

1 191 151.01 92.58 58.43 38.69%

2 431 345.66 276.11 69.54 20.12%

3 103 90.20 81.06 9.14 10.13%

4 184 84.59 93.58 -8.99 -10.63%

5 238 110.86 119.50 -8.64 -7.79%

6 179 89.53 69.08 20.44 22.83%

7 7 4.38 1.99 2.39 54.61%

8 0 0.00 0.00 0.00 0.00%

Total 1333.00 876.22 733.90 142.32 18.28%

Zones

Nehru Nagar

Summary of Metering Error For All Test Zones

Lakkadganj Zone

Ashi Nagar

Satranjipura (100% on avarage)

Dharampeth

Laxminagar

Dhantoli

Hanuman Nagar

Analysis of DMA results for leak Detection

Source of Losses (Physical + Commercial)

• House service connection : 63% of reported leak complaint

• Old conservancy lane / G I Pipes• Old Lead Joints / Valve leaks• 70% of non working meters• Illegal connections• Poor quality of meters• Absence of water accounting

Strategy For Water Loss Control

Pilot 24x7 Pilot Project• Feature

– 15000 Connection including slum– 10 slum areas– Population 1.5 – 1.75 lakhs

• Contract– Study, Rehabilitate, Operate contract with

Private operator.– Penalty /bonus for targets in UFW, Quality,

Customer services and Continuity of supply

KPI Baseline KPI Target KPIUFW level The NRW is assessed at 50% UFW below 30% for

proportionate bonusIncrease of volume billed compared to FY 2007-08

Volume billed for FY 2006-07 = 21,7 MLD on average. This value shall be used for the cost-benefit analysis of the rehabilitation plan. The baseline KPI for the assessment of bonus/penalties during O&M will be based on FY 2007-08 data.

Higher than baselines by 10% for bonus

Continuity of supply

2 to 24 hours depending on the area of supply

24/7 throughout the zone with minimum 2m pressure at customer tap

Water Quality 63% of samples tested had a residual chlorine level higher than 0,2 ppm

Residual chlorine higher than 0,2 ppm

Time for handling customer complaints

Not applicable Within 3 days

Pilot 24x7 Project :Baseline for Private Operator

Rehabilitation Plan for Pilot 24x7

• Replacement of 100% House service connection & Meters

• Replacement of old conservancy GI pipe• Rehabilitation of Tertiary network• Hydraulic modeling as per Master plan• Installation of new billing system• Customer Facility centre

• Continuous water supply at desired pressure. • No Contamination of water• Reduction in water losses• Better Accountability• Better Service to Consumer• Sustainability of system

24x7 WATER SUPPLY : OBJECTIVES

“Water for all and 24 x 7 supplies with focus on safety, equity, and reliability”.

Investment for RehabilitationJNNURM Phase-2

• Replacement of House connection• Replacement of consumer meters• Replacement of deteriorated pipes and fittings• Rehabilitation of ESR/GSR.• Rehabilitation of Pench-II WTP• Rehabilitation of Misc component• Implementation of Slum Policy

Public Private Partnership in JNNURM Projects

• Project Finalized Under JnNurm– Pench-I WTP Improvement & Up gradation (Rs 6.42 Crore)

• 70% grant in aid, 30% by private operator • 5 Years O & M by operator

– Water reuse For Power Plant (Rs 130 Crore)• 70% grant in aid, 30% by Mahagenco• 30% O & M by Mahagenco & pay to NMC the raw sewage charges @ Rs3.0 –

3.50 per 1000 Ltr for 110 MLD. Annual revenue to NMC Rs 15 crore from sewage

– 24/7 Water Supply (Rs 20 Crore)• 5 years O & M with performance based targets to reduce UFW and improvement

in service level to customers in a pilot zone of 1.25 lakhs population.– Improvement to Kanhan Water Supply (Rs 65 Crore)

• 70% grant in aid, 30% by private operator • 15 Years O & M by operator

– Water Distribution Monitoring System

Implementation Options

• OPTION-1 : INVEST JNNURM MONEY KEEPING EXISTING MANAGEMENT PRACTICES AS IT IS WITH ASSUMPTION THAT ALL PROBLEMS ARE WITH PUMP AND PIPES.

• OPTION-2 : INVEST JNNURM FUND IN THE WATER SUPPLY SYSTEM AND IMPROVE THE MANAGEMENT & ACCOUNTABILITY.

PPP Definition and Basic Principal

• Public Private Partnership • Partnership

– Ownership : NMC– Operation: Private– Investment: Both

• NMC to decide Tariff• NMC to decide Development Plan for City• Private Partner to Operate the system.• Private Operator to earn profit through efficiency

in Implementation and operations

Private Participation in Water Sector :Exist in NMC

• All new assets created since 1999 is managed though service contract.

• Existing assets also managed thru service contract for Pumping station/ WTP O&M / Valve operations/ Billing distribution/ Annual maintenance contract for Zonal level

• Disadvantages– It is only a labor contract replacing retired employees.– No link with performance – No accountability towards consumer– Short term Contracts break up in small parts with no

feasibility for private investment– Contractor motivated for providing short term solution

• Advantage : – Reduced number of NMC employees as of now 80% of

assets managed by private contractors– Short term annual contract can be replaced by better

contract– Non performing contactor can be replaced by better one– Reduced O & M cost– Over the period of time capacity building of local

contactors in O & M– Prepared the ground for larger involvement of Private

participation without affecting the NMC employees. Hence, less resistance for PPP.

Private Participation in Water Sector :Exist in NMC

Proposed NMC approach for Private Participation for entire city

• Rationalization of Tariff for full cost recovery and subsidy to urban poor.

• Political willingness • Performance based contract for 25 years.• Participation in capital investment from Operator• Better service to consumer and emphasis on urban poor• Asset ownership with NMC• JNNURM funding for better viability of project and reduced

cost of capital.• All operational risk with Operator• Inbuilt incentive for performance

Regulatory Framework: Accountability and Mission of the Regulator

Commitment to meet Full City 24x7 WS since

2012 without tariff increase

RFOM Contract including

Service Performance + Works Contract

Consumer Service Agreement

Regulator to

Ensure consumers receive expected level of service at reasonable cost

Protect short term and long term interests of the Consumers

Provide certainty for public and private investment

Enhance accountability and transparencyControl the financial performance

The Regulatory Office set-up• Regulatory Office set as an SPV created by the NMC. The

participation of other stakeholders in the constitution of the SPV may be envisaged.

• Initial set up and annual operating budgets approved by the Parties chargeable to the Operating Cash Flow.

• Regulator appointed for 5-year contract extensible.

• Regulator personally accountable for prejudice to the Parties.

• Key Staff selected on the basis of merit references.

• Public access to all resolutions and statements of the Regulator on the RO Web Site.

NMC Expected Revenue from Tariff

Operator’s Rate

EXISTING

PPP Lease/Concession Arrangements

Proposed Transaction Structure (1/5)Type of Contract RFOM Concession Contract

NMC grants for special purposes the exclusive right of use of all NMC’s Water Supply Facilities and undertakes the expansion works. The Operator is appointed as Contactor for the realization of certain works of rehabilitation and replacement of NMC assets and as agent of the NMC to operate and maintain the Facilities and to perform Water Supply services to consumers.

Contracting Authority NMC represented by the Commissioner. Under the provisions of the CNC Act and per Decision of the General Body,

Scope of Contract The Operator to implement and co-finance first 5-year 350 crores Rs investment programme while JNNURM provides for 70% funding with grants (Up to Rs #245 crores).

The Operator, at its own risks and peril, to operate, maintain, repair, and to replace warned-out granted Facilities and to provide piped drinking water to consumers according to service levels target, to bill and collect water charges on behalf of the NMC according to Municipal By-Laws and Tariff Codes.

Duration and possible extension

25 years. Extension subject to approval from General Body.

Service Area/Service Perimeter

The NMC grants exclusive rights to deliver water supply in the Jurisdiction of the NMC.The operator shall ensure access of any applicant located less than 200m from an existing pipe to water services conform to required service level and subject to compliance with the By-Laws. The NMC can request bulk water services to be provided to communities located outside NMC jurisdiction.

Exclusivity The NMC to provide with the water ressources input to the water systems operated by the OperatorThe Operator is granted the exclusive right

1. to use the municipal Facilities as required in order to provide the Granted Services and

2. to provide and to bill water supply Services, and to collect water charges as per By-Laws in the Service Area

Proposed Transaction Structure (2/5)

Service Performance

The Operator is required to improve the financial and operational performance of the water utilities and to achieve specific service performance targets related to service levels and to operational efficiency.

Set up of a Regulator

NMC to create a Regulatory Office RO in the form of an SPV which shall be granted regulatory functions.

Role & power of the Regulator

To protect short term and long term interests of the Consumers, ensuring that the Consumers receive the expected levels of service at a reasonable Cost in compliance with the Contract.To control the Operational and financial performance of the Parties, and to provide certainty for public and private investment To enhance accountability and transparency in the sector.

Proposed Transaction Structure (3/5)

Tariff Adjustments

Tariff Codes determined by NMC based on proper By-Laws include adjustment routines to be implemented by Commissioner of Standing Committee as the case would be. Tariff revision to be decided by General Body on request of NMC based on required investment program and the assessment by independent auditor of actual tariff efficiency.

Operator’s Remuneration

Single Operator’s Rate applicable to volume of water supply billed to and paid by the Consumers according to category of service (standard, bulk). In-built incentive to improving technical and commercial efficiency as well as collection efficiency.Split of Operating Income through Escrow Account.

Rates Adjustment Standard adjustment based on formula referring to WSPIs (Industrial Equipment, Salaries +Quarterly for Electricity & Raw water Surcharges).Extraordinary Adjustments by the RO relating to agreed Business Plan, to be approved by Commissioner or by Standing Committee as the case would be.

Proposed Transaction Structure (4/5)

Governing law The operator must comply with all Indian laws, regulations, orders and directives that may affect the lease contract.

Mechanism of enforcement

Independent Regulatory Office to adjust rates, and to monitor contract performance. Penalties to be applied to the operator in the event of breach of its obligations under the Contract. Performance bond in favor of NMC Power of attorney to be given to the operator to act against illegal connections and disconnect bad payers.

Resolving disputes

Procedures & time table shall be strictly regulated under applicable Indian Law by the lease agreement.

Mechanisms of arbitration by an Arbitrations Panel.

Court of Law (Mumbai)

Proposed Transaction Structure (5/5)

PPP implementation process• EOI for RFQ August-08• Pre RFQ meeting 9thSept-08• RFQ 20th Sept-08• Pre Qualification 10thOct-08• Issue of RFP 15thOct-08• Pre bid Meeting 10th Nov-08• Technical Proposal 15thDec-08• Evaluation of TP and RFB 15thJan-08• Financial Bids 20thJan-09• Closing Jan/Mar-09• DPR to JNNURM 15th Oct-08

INTERESTED OPERATORS (submitted EOI)

• Veolia Water + VIL• Jusco + Ranhill• IRVCL + Aqualia of spain• Bywater + Nagarjuna• Punack + Lanco• Manila water + Mahindra• Salcon + Maytas• KBL• ILFS with Seventrent• East water with Hydrocom

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