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