24x7 Water supply project for nagpur city NAGPUR MUNICIPAL CORPORATION
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. Nagpur
Kanhan 120 mld Pench – RBC at Mahadula 370 -440 mld Gorewada 16 mld TOTAL 536 mld RAW WATER SOURCES : (AS PER IRRIGATION DEMAND AGAINST NMC) PENCH DAMP KanhanP Gorewada RAW WATER UFW >20% + MAJOR LOSSES THROUGH CANAL (Irrigation Account)
WATER SUPPLY SOURCE LOCATION Rahari New water sources are far away will need high capital and energy cost.
Salient Features of Nagpur Water Supply Infrastructure • RAW WATER PUMPING STATIONSAt Mahadula (370 - 440 Mld)At Kanhan (125 Mld) and • Old Gorewada (17 Mld) by gravity
MASTER BALANCING RESERVOIRS At Seminary Hills Capacity – 24.97 Ml G.L. – 349.700 M At Governor House Capacity – 22.74 Ml G.L. – 344.000 M AT Sitabuldi Fort Capacity – 22.7 Ml G. L. - 334.300 M
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 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.
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) NEED FOR REFORMS IN WATER SECTOR 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 SUPPLY 370 MLD 370 MLD 490 MLD 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. OPEX is Rs 3.30/ 1000 ltrs. @ WTP ANNUAL ENERGY BILL OF Rs. 28 CRORE /YEAR
NAGPUR WATER SUPPLY: Status before JNNURM Measurement Losses 125 mld Losses 20 mld 235 mld Commercial losses/ theft/metering error Raw water Purchase 625 mld TREATMENT 500 mld Distribution 480 mld Losses In canal Recovery 200 mld Physical losses Collection Losses 45mld 140 mld SYSTEM EFFICIENCY : 32% Annual Loss (W/O Dep): Rs 56 crore With Depreciation : Rs 75 crore (appx)
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.
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 • STRATEGY • REFORMS IN WATER SECTOR • INVESTMENT SUPPORT FROM JNNURM • IMPLEMENTATION THROUGH PPP MODE FUNDING CONSTRAINTS THROUGH COMMERCIAL SOURCES MISMATCH BETWEEN INCREASING NEEDS & DECREASING RESOURCES FUNDING BURDEN ON NMC/STATE NMC Strategy
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
STEPS TAKEN BY NMC FOR BETTER EFFICIENYIN WATER SUPPLY • Water & Energy efficiency Project worth Rs. 96 crore has been approved and funds received from JNNURM • Reduction in Raw water UFW by 100 mld (Annual savings of Rs. 2.0 Crore on investment of Rs. 35 lakhs) • Water Audit & Leak Detection Phase-I of Rs. 28.0 Crore. (Step towards bringing down the UFW to less than 25%) • Energy Efficiency Program of Rs 25.00 Crore is under implementation. (Reduction in energy consumption by 20%) • 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 FOR BETTER EFFICIENYIN WATER SUPPLY • 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) • New Water Supply Policy for Slums. To reduce UFW and service to urban poor. • Rationalisation of Water Tariff. (To recover O & M Cost + Telescopic tariff for water conservation) • Up gradation of Kanhan water supply systems (Project cost Rs. 83 crore sanctioned under JNNURM ) (Optimum Utilisation of water resources) • Water Reuse Projects under WENEXA-II: To make the region water surplus : Project cost Rs.131 crore sanctioned under JNNURM • Resolution by General Body for PPP mode to implement 24x7 project
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.
Action Plan Summary of Water Efficiency Projects & Tariff Revision Cash Flow
NAGPUR WATER SUPPLY: Status After Implementation of JNNURM Projects 285 mld Losses 5 mld Commercial losses/ theft/metering error TREATMENT 535 mld Distribution 530 mld Raw water Transmission by Pipe Recovery 200 mld Physical losses Collection Losses 45mld • Benefits after partial Implementation • System Efficiency : 37% from 32% • Reduced financial losses by tariff revision • Increased water supply to distribution by 40 mld
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
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
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
24x7 WATER SUPPLY : OBJECTIVES “Water for all and 24 x 7 supplies with focus on safety, equity, and reliability”. • Continuous water supply at desired pressure. • No Contamination of water • Reduction in water losses • Better Accountability • Better Service to Consumer • Sustainability of system
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
Private Participation in Water Sector :Exist in NMC • 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.