Reimagining Urban

Spaces and Financing

21st January 2017 New Delhi

Andhra Pradesh: Urban Transformation

Presentation Structure

Urban Development Strategy

Development of Economic Cities and Housing

Andhra Pradesh Urban Development Fund

Smart Cities Development in Andhra Pradesh

Development of Amaravati – New Capital City of Andhra Pradesh

Urbanization: Potential Opportunities

Andhra Pradesh: Vision 2029

Institutional Innovation in Andhra Pradesh in Urban Sector

Investment Opportunities

Capacity Building

Urbanization – Potential Opportunities

• Urbanization brings Economic Growth

• Following urban growth in the 20th century, urban areas now account for around 80% of global economic output

• Cities continue to account for the bulk of tax revenue vital for development spending

• *The Indian cities can generate funds, they require, from internal sources such as: • Monetization of land assets • Maximizing the potential of property taxes and user charges • Formula driven grants from central and state government • Appropriate use of debt and PPPs etc. *”India’s Urban Awakening: Building Inclusive Cities, sustaining economic growth”, McKinsey Global Institute

The people of Andhra Pradesh envision transforming their State into a happy, inclusive, responsible, globally competitive and innovation-driven society through structural transformation and by sustaining inclusive double-digit economic growth, to become one amongst the three best states in India by 2022, the best state by 2029, and a leading global investment destination by 2050.

Sunrise Andhra Pradesh - Vision 2029

5

Integrated (Economic and Industry) Development Initiatives in State

Industrial Mapping of the State

Government and Private investment will result in a significant improvement of infrastructure and exponential growth in industrial production which lead to rapid urbanization

5

Andhra Pradesh – Urban Vision and Mission

Urban Vision Cities and towns of Andhra Pradesh to be

transformed into Growth Engines

Mission

Best-in-class urban governance to make the cities smarter with delivery of efficient urban services for

sustainable development

Productive Cities

Inclusive Cities

Sustainable Cities

Smart Cities

Well-governed

Cities Andhra Pradesh

Cities

Cities are critical for inclusive growth

Urbanization in Andhra Pradesh

• Urbanization in the State at 30%, projected to go upto 50% in next 15 years

• Investment Opportunity of US$ 30 bn in urban development

• Structured Urban Growth and Development to integrate the ecosystem to enhance double digit growth in State

• Multi-pronged Investment to create a Multiplier Effect by creating jobs

and GDP growth

Urban Development Strategy

Growth Pole – 1 Visakhapatnam region

Growth Pole– 2 Krishna Delta Region

Growth Pole– 3 Tirupati Region

Growth Pole– 4 Ananthapur - Hindupur Region

Institutional Framework for Urbanisation Planning and Development by UDA • Preparation of Development Plan by UDAs • Handing over of developed areas to ULB at appropriate

time • Regional Infrastructure development (Trunk Roads,

Water Sources, Mass Rapid System, Waste to Energy etc.)

ULB Area (governed and managed by ULBs) • Delivery of Urban Services • Performance Levels management

Growth Poles

Leading to Regional, City Level

new Urban Infrastructure Asset

Creation

Urban Infra Development

JNNURM Cities

AMRUT Cities

Smart Cities

Economic Cities

Inclusive Housing

Institutional Innovation in Andhra Pradesh

ANDHRA PRADESH URBAN DEVELOPMENT FUND (APUDF)

Under SEBI guidelines Blending and Leveraging of Public Capital with Private Capital through Urban Reforms

“Fund of Fund across Urban Sectors through innovative instruments”

An Innovative Institutional Framework created to bridge the financing requirements for urban development in the State and End-to-End Project Delivery along with Capacity Building

ANDHRA PRADESH URBAN INFRASTRUCTURE ASSET MANAGEMENT LIMITED (APUIAML)

A Joint Venture of Government of Andhra Pradesh and IL&FS, acting as an AMC for Fund Approaching Multilateral and Bilateral Agencies for partnering in APUIAML

Infrastructure Projects worth about USD 0.5 bn being taken up through Project Specific SPV’s

Sectoral Focus and Value Creation

Water Supply

Sewerage / Drainage / Sanitation

Smart Cities

Urban / Land Developments

Urban Transport

Urban Housing / Economic Cities

Other Urban Projects

Sectors Focus

Tourism, City Beautification

Solid Waste Management

Urban Renewable Energy

Comprehensive Asset Management program will be put

in place

Bringing in best practices, optimizing financing structure and making efforts

to unlock value

Structure projects to be bankable

Andhra Pradesh Urban Development Fund

Structure of APUDF:

• Fund Name : Andhra Pradesh Urban Development Fund

• Fund Structure : SEBI AIF Category II

• Sponsor : Government of Andhra Pradesh

• Fund Manager : APUIAML

• Fund Size : Rs. 5,000 Crore

• The Fund could issue multiple classes of units to its contributors to raise funds

ULBs (directly or through SPVs) would be able to access funding from APUDF via Equity, Bonds, Debentures, hybrid instruments, and Technical Assistance (for the project preparatory activities)

• Financial resources for APUDF being raised through

• innovative instruments by mobilizing resources from domestic and international financial institutions

• private sector arms of Multilateral and Bilateral funding Agencies etc.

• by leveraging Public investments and

• other financial assistances

Vijayawada 24x7 Water Supply

Vijayawada - 2nd largest city in Andhra Pradesh, with population of 1.05 Mn (2011 Census) and an area of 62 km2 is a part of Capital Region Area located on banks of River Krishna. It is well connected by road and rail with major cities in the country

Primarily a Service Sector Economy Total Gross Value Add of Vijayawada is ~Rs. 17,770 Cr/Annum

• Project initially to start with Phase-1 • Augmentation of distribution system • Establishment of District Metered Areas • Installation of bulk water meters • Quality Control and Leak Detection • Revenue Recovery, Building Delivery Efficiency

• Further, the Project would cover the entire city

Rs. ~90 Cr. For Phase 1 (Total- 400 Cr ) Connection and User Charges

• Covering 25% of city area

• Project domiciled in a Special Purpose Vehicle • Financing of the SPV, through mix of Debt and Equity • Government Grants will be channelized as Equity / Equity Equivalent to

the SPV

March 2017 for Phase 1 9 months for Phase 1

Vijayawada

Visakhapatnam Sewerage Project

Visakhapatnam, one of the selected Smart Cities, is the largest city in Andhra Pradesh located on the eastern side of country and well connected to major cities. Total GVA of Vizag is ~Rs. 32,422 Cr/annum, Average Per Capita Income ~Rs. 1.5 lakh. Gajuwaka has the highest per capita income

Heavy Industries, Services sector, tourism, IT

Providing Sewerage system for Gajuwaka, Malkapuram, Pendurthi etc. areas in Visakhapatnam Proposed Components: • Wastewater Treatment • Length of Sewers: ~700 km • Connections: ~1,00,000

Rs. 650 Cr. Connection and User Charges; Sale of Treated Water

• ~1,00,000 House Service Connections • Industrial Users for Recycled Water

• Project to be domiciled in a Special Purpose Vehicle • Financing of the SPV, through mix of Debt and Equity • Government Grants will be channelized as Equity / Equity Equivalent to

the SPV

June 2017 3 years

Visakhapatnam

Guntur Sewerage Project

Guntur with 7.8 lakh population is the 3rd largest city of Andhra Pradesh, located in an area of 168.2 km2, is part of Capital Region Area. It is well connected with Hyderabad, Visakhapatnam, Chennai, Kolkata & Delhi by Road, Rail and Air (Airport located @ 50km)

Guntur houses the largest chilly market in the country Total Gross Value Add of Guntur (Urban) is ~Rs.8,825Cr/Annum

Development of Comprehensive Sewerage System Proposed Components: • Length of Sewers: 1,093 km • STPs Capacity: 123 MLD @ 5 locations • New connections to be given: 1.4 lakh

Rs. 1,050 Cr. • Connection and User Charges • Sale of Treated Sewage Water

• 1.4 lakh House Service Connections • Industrial Users

• Project domiciled in a Special Purpose Vehicle • Financing of the SPV, through mix of Debt and Equity • Government Grants will be channelized as Equity / Equity Equivalent to

the SPV

February 2017 3 years

Guntur

Smart Cities Development in Andhra Pradesh

Strategy Vijayawada

Srikakulum

Kakinada

Visakhapatnam

Machilipatnam

Rajahmundry

Guntur

Ongole

Vizianagaram

Tirupati

Nellore

Kurnool

Ananthapur

Kadapa Chittoor

Eluru

16 Smart Cities are being developed in the State

State - Initial

National Level

State - Other

Smart Cities

Capital Region

National and International Hubs for providing large employment opportunities

Have access to basic services & equitable social life

Conservation of natural resources and enhancing the liveability

Increase efficiency, reduce cost of service delivery and improve quality of life of citizens

Accountable, efficient and transparent governance; empowers citizen & supports growth

Smart Cities development on lines of Smart City Mission

Visakhapatnam – Smart City

Popularly known as “The City of Destiny”

Largest City in Andhra Pradesh (~593 sqkm) housing ~2 mn. population

Growth Driver: Heavy Industries, tourism, industrial minerals, fishing and IT

School & Skill

Development

are identified

as key Enablers

for Smart City

development

initiation

Overall Projects Outlay – $ 240 mn (Rs. 1,600 Cr.)

Resilient City

Safe & Healthy

City

Sustainable City

Dynamic City

Connected & Green

City

Equitable City

Goals

Kakinada - Smart City

Municipal Area 31.4 sq.km

Population (2011 Census): 3.3 lakh

Citizen Engagement

Growth Drivers • Deep Water Port • Industries • Fisheries • Petrochemical • Special Economic Zone • Tourism

Vision and Goals

Projects

Smart Transport Facilities 1

Water Management 3

Storm Water Mgmt 5

ICT based Mun. Solid Waste Mgmt. 7

Solar Roof Top and LED 2

Underground Wiring 4

Waterfront Development 6

Smart Health and Education 8

Housing 9 ICT Solutions

Greenery 11

Overall Projects Outlay – $ 300 mn (Rs. 2,000 Cr.)

10

Tirupati – Smart City

Popularly known as Spiritual capital of India

Award for Cleanest Temple Town in India (2015)

Compact city (27 sq.km) housing 3.7 lakh population (2011 Census)

On an average 100,000 tourists /day, 30 million tourists /year

Social & Cultural – A Model Pilgrim City

Infrastructure & Environment - Human & Ecological Well Being

Economy & Society – A City that promotes innovation and Start-ups

Health & Wellbeing – A City that promotes Opportunity for All

Leadership & Strategy – Inclusive Governance and Management

Strategies

Vision

Atithi Aagman Path (Retrofit Project focusing on convenience of Pilgrims)

Raasta (Green Street, Pedestrialisation)

Sugamya Tirupati (Cultural Signage, Tourist & Pilgrim Information)

Unnati (Promoting Inclusivity)

Udyot (Solar Rooftop; Promoting Renewable Energy)

Udyaan (Encouraging Healthy Lifestyle amongst Children)

Parivahan (Smart Bus Stops, Battery op. Buses, E-Rickshaw, Public Bike Sharing)

Nivas (Slum Redevelopment Project)

Infrastructure (Water Supply, Wastewater, Storm Water, Power, SWM)

Projects

Sagraha Tirupati Integrated City Collaboration Platform

Overall Projects Outlay – $ 240 mn (Rs. 1,610 Cr.)

State Smart Cities Initiative

State Smart cities initiative shall aim to address the following

• Adequate and equitable water supply (24X7) • Assured electricity supply • Sanitation, including solid waste management • Efficient urban mobility and public transport, • Affordable housing, especially for the poor • Robust IT connectivity and digitalization • Good governance, especially e-Governance and citizen

participation • Financial self-reliance and discipline • Sustainable environment • Safety and security of citizens, particularly women,

children and the elderly, and • Health and education • Economic Development & Employment Generation

Srikakulum Ongole

Nellore

Kurnool

Ananthapur

Eluru

6 Smart Cities are being proposed as a state initiative implemented each through Special Purpose Vehicle ( SPV)

State - Initiative

State Smart Cities

Vijayawada Metro System

Two corridors of total 26 km length have been selected for development of Metro Rail in Phase-1

Projected Ridership per day (lakhs): - 4 lakh (Year 2019-20); 13.3 lakh (Year 2051-52)

Estimated Project Cost – $ 1,050 mn (Rs. 6,823 Cr.)

Corridors Length Station

s

Line 1 Pandit Nehru Bus Terminal to Penamaluru (Bandar Road)

12.76 Km 12

Line 2 Pandit Nehru Bus Terminal to Nidamanuru (Eluru Road)

13 .27Km 13

TOTAL 26.03 Km 25

Project is proposed to be implemented as a Government initiative, jointly by GOAP and GOI, with external funding. Tenders invited for the commencement of Civil works

Pre-Appraisal teams of AFD and KFW visited

Vijayawada Metro for extending their Soft-Loan

Vijayawada Metro

Visakhapatnam Metro

Project structuring on PPP basis

KOMMADI

JUNCTION

CRICKET

STADIUM

ADARSH

NAGAR

GURUDWARA

HANUMANTHVAKA

NAD JUNCTION TADICHETLAPALEM

RTC COMPLEX

OLD POST OFFICE

ALLIPURAM

JUNCTION

CHINVALTERU

GAJUWAKA

JUNCTION

BRTS Alignment

Metro Alignment

STC BRTS Corridor

PTC BRTS Corridor

NAD Junction to Kommadi Junction

Gurudwara to Old Post Office

Tadichetlapalem to Chinvalteru

NAD junction to Gajuwaka junction

Stations with Property Development

Interchange stations

Legend

Route: Kommadi to Nad Junction (22.28 kms) + Gurdwara to Old PO (5.25 kms) + Tadi’lem to East Point (6.91 kms) Total (34.44 kms) Total Project Cost: Rs 11,306 Cr

Project will be executed on PPP mode. Tenders to be invited

Visakhapatnam Convention Centre

Proposed Project Components:

• International standard Convention Centre with plenary hall for 3000 people • Three exhibition halls • Meeting / conference halls (around 10 nos.) • Kitchen and other support areas • Parking • Star Hotel / Guest House (50 Rooms) • CM’s office/Leasable area/Business Centre (Commercial & retail spaces)

Area: 10.65 Acres

Vijayawada City Square

City Square to support cultural activities combined with commercial development

Cultural Gallery

Public gathering space

Commercial Area

Greenery

Supporting service etc.

Project Components Next Steps

Preparation of DPR

Financial feasibility

Finalisation of tender document

Selection of agency for execution through transparent manner

Concept (Illustration)

PWD Ground @ Vijayawada is presently used for various open exhibitions

The Ground abuts one of the major roads, i.e., M G Road

The Ground is located in close proximity to Bus Stand, Railway Station

Centrally located

Project Details

Location of PWD Ground (Project) in Vijayawada

Area : ~1,00,000 sq.m

Project Location

Visakhapatnam Beach Front

Beach Beautification Project Cost: $ 37 mn. (Rs. 240 cr )

Place making

Different Character Zones along Beach Road

Beach beautification and shore restoration projects will enhance tourism potential for Vizag

Retrofitting existing parks and beach side

parking with sports facilities for Children

Shared Streets Smart Bus Stops

Bicycle Super Highway Smart Streets

Beach Road of @ 6 km

Plans to build more than 1 Million houses by enabling private players to develop Industrial / Economic Townships in Private and Government lands as well as participation in existing/proposed projects

Single window, single payment within

21 days approval

Reforms to transform urban slums initiated as

an integrated development of cities

Economic Cities

will increase productivity, decrease travel costs & hassles, reduces production costs for the employer and

increases happiness index for the employee,

will be created by integrating Residential, Industrial, Educational, Health Care, Recreational, Leisure under

Walk to Work environment

APTIDCO has the mandate to meet the housing needs of the State

Nodal agency to implement “Housing for All” under

PMAY, Andhra Pradesh Township & Infrastructure Development Corporation Ltd. (APTIDCO), formed

Walk to Work – Development of Economic Cities

Development of Economic Cities and Housing Programme in AP

Self sustaining greenfield mega projects that fuse knowledge, industrial, and residential townships, along with scope of social and recreational amenities.

Proximity to existing economic nodes ensure multiplier effect through increased productivity and employment generation.

Residential component, ranging from luxury to socially inclusive and affordable housing, to plug the housing shortage and encourage walk to work environment

Development Model: (a) Private Development on Private Land (b) Private Development on Government Land

Economic Cities

Policy Incentives

Single Window Clearance Project approval under 21 days

Additional BUA Incentive for green and sustainable projects

Single challan payments on per Sq. mt basis payable to Government Departments

Occupation Certificate certification by an empanelled Professional

External infrastructure up to the layout provided by the ULB or UDA

Waiver of Charges UDA, Infrastructure deposits, land use conversion, other charges

Exemptions City level Impact fee, VAT, Labour Cess, all taxes but Central

Fiscal and qualitative incentives on case to case basis for projects of more than : • 100 acres outside the municipal limit • 25 acres within the municipal limit

Jakkampudi Economic Township Project, Vijayawada

Area : 265 acre

Theme – Residential, Commercial and Institutional. Objective is to provide affordable housing to all economically weaker and low income group families.

Execution through PPP mode.

Proposed components of the project are;

(i) Housing Complexes comprising EWS, LIG, MIG and HIG dwelling units

(ii) Light and green industry to support economic activities and provide employment to the residents

(iii) Commercial landuse to support commercial needs of the residents

(iv) Recreational landuse

(v) Support infrastructure like boundary wall, roads, lighting, water, sewerage, sewage treatment, storm water management, parking, electricity, etc.

Environmentally friendly technologies and materials

Government has approved the project

Special Purpose Vehicle formed for the implementation of Project i.e “Jakkampudi Economic Township Development Corporation Limited

APTIDCO has been appointed as Nodal Agency for the Project

Economy Nodes - Greenfield Development

Greenfield development in the vicinity of Urban Centres for development to generate

jobs and economic opportunities.

Industrial

Cities

Education

Cities Sports Cities

Tourism

Cities Health Cities

These cities may be developed in partnership with national/

international institutions / countries 28

29

Amaravati – The 21st Century Capital of Andhra Pradesh

Amaravati • 16.94 sq. km. SEED CAPITAL AREA

• 217 sq. km. CAPITAL CITY AREA

• 8,603 sq. km. CAPITAL REGION AREA

WORLD CLASS INFRASTRUCTURE 135 km of public transport corridors by 2050;

>1,000 km of road network by 2050

JOBS & HOMES FOR ALL 2.5 million resident population by 2050;

1.8 million jobs by 2050

GREEN & CLEAN >40% area reserved for green and blue;

30+ km public river front

QUALITY LIVING Parks and public facilities within 5-10 minute

walking distance

EFFICIENT RESOURCE

MANAGEMENT

Flood resistant city;

Towards Net Zero Discharge

IDENTITY & HERITAGE >250 km of heritage and tourism network;

using roads, metro and waterways

Knowledge

City

Education

City

Justice

City

Financial

City

Health

City

Governmen

t City

Tourism

City

Sports

City

Electronics

City

Amaravati – Potential Opportunities

Iconic Developments

Government Complex

Iconic Bridge development

Landscape and green belt

development

Infra Development

City gas distribution system

Smart ICT network

City Irrigation systems

Solid waste management

Connectivity Infrastructure

Access Expressways

Arterial Roads

Outer ring road

Urban waterways

Transportation

BRTS system

Regional Metro Railway

Water Transport system

Multi-model transportation hubs

Tourism Infra

Heritage Tourism infra

Riverfront development

Island development

Social Development

Education city

Healthcare city

Sports city

Economic Development

Knowledge/ IT/ ITeS City

Electronics city

Financial city

Logistics infrastructure

Textile hub

Swachh Andhra

•No. of WtE plants awarded : 10 nos. •No. of ULBs covered under WtE : 53 Nos

•ULBs covered: 57 Nos • Technology Neutral, developer to meet

the performance standards • External Infrastructure Development by

GoAP / ULB

• Chaired by Honorable Chief Minister • Promote Cleanliness and Hygiene through Information Education

Communication (IEC) Activities • State level agency to design the strategy, mode of implementation and to

monitor and evaluate the progress of the campaign

• Involve all sections of the population – schools, colleges, women groups, senior citizens, etc. • Centres of Excellence to promote research in sanitation & waste management • Enforcement of Legislations and Rules • Swachh Andhra Nidhi

All 110 ULBs declared ODF on 2nd October 2016

Capacity Building

Urban Infrastructure

• Integrated planning and design

• Innovation in project structuring

• Enhanced coverage, quality and reliability of services

• Utility management

• User charges & Revenue recovery

Urban Governance • Systemic development in the functioning and

achieving organizational excellence of ULBs

• Competency Development,

• Communication and Public Relations building

Financial Management • Enhancing credit worthiness

• Revenue enhancement

• Project finance

• Investment strategy etc.

Capacity Building through Best Practices, International Experts

Financial Discipline in Urban Local Bodies

Delivering Quality Urban Services

City Management and Citizen Responsive

Thank You!