Urban Water: Improvement Opportunity

Water Infrastructure Water deficit of nearly 25% of demand by 2050 *

Average NRW estimated at 50-55% *

Continuous water supply as a concept is not prevalent

Sewage Infrastructure

Only 30% of sewage generated is treated #

55% operational efficiency of STPs #

Untreated sewage being released into ecosystem

○ Three-fourths of India’s surface water resources are polluted, and 80% of the pollution

is due to sewage alone #(Source: #ADB India's Sanitation for All Report, *UNICEF Water in India Situation and Prospects

2013)

World Bank Review – 5 Water Concessions in India

Nagpur Arurangabad Mysore Latur Khandwa

Population (In Mn) 2.5 1.2 1.0 0.38 0.2

Mandate Rehab + Op’n Bulk+Reconst.+Op’n Reconst+Op’n Op’n+Select

Reconst.Bulk+Recons

t.+Op’nDuration (Yrs.) 25 20 6 10 25

Private investment 30% 50% Nil Nil 10%

User charges as an integral part of operator revenue

Distinct from user charges

Part user charges+ Part

subsidyDistinct from user charges Yes Yes

Contract Signed Late 2011 2011 Mid 2009 2008 Late 2009

(Source - World Bank ‘Running Water in Indian Cities’ Report 2014)

• Nagpur– 10th largest city in India– 2.7 million+ population across 217

sq.kms– 6 Water Treatment Plants: 750 MLD

Nagpur Concessions

• Nagpur 24/7 Water Concession– India’s first “Full City” water distribution PPP contract awarded to

Orange City Water Limited – 50:50 JV of Vishvaraj Infrastructure Limited & Veolia Water India Pvt. Ltd.

– Capex: USD 92 Mn (Grant: USD 47 Mn, Operator: USD 45 Mn)– 350,000 water connections with 2,500 Km of pipelines

• Nagpur 200 MLD STP - Wastewater Concession– DBFOT model with annuity payments (74:26 JV of Vishvaraj

Infrastructure + Drake & Scull)– Reuse of water with revenue sharing mechanism– Concession Period: 32 years

Stakeholder Engagement

• Recognizing water projects as a social project rather than

technical –commercial contract

• Adding 4th P as people in a PPP model

• Conceptualization stage

• Legal: proposal cleared by highest elected body

• Social: ‘My City My Water’ campaign in 500+ schools

• Implementation stage

• Engaging people in rehabilitation phase (service quality

monitoring)

• Make Jalmitra (water friend) in each locality to help

communicate with people and facilitate problem solving

5

Rivers/Dams/ Lakes

Urban Population

Power plants / Industry

Agriculture

Provide Treatment

Infrastructure

Limited Fresh Water

Resources

Rivers/Lakes

Fresh WaterWaste Water

Example: Nagpur Treated Water

Innovative Financing Arrangement – Wastewater Projects - Reuse

Thank You