ADB Workshop, Bhopal

Jamshedpur Utilities & Services Company Ltd.

February, 2009

Jamshedpur Water and Wastewater System

475 kmsLength of Sewer lines

550 kmsLength of Water Mains

206 lpcdAvg. daily consumption

7.00 lakhsPopulation served

64 sq. kmArea served Water Infrastructure

• 2 River Pump houses : 264 MLD

• Raw Water Pump House : 173 MLD

• Clarified Water Pump House : 91MLD

• WTP capacity (potable water) : 190 MLD

• Dimna reservoir (1 month standby):35000 ML

capacity

• 7 water towers : ( 46 ML )

• 500 kms of potable water network

Wastewater Infrastructure

• 2 sewage treatment facilities : 64 MLD capacity

• 10 sewage pumping stations

• 475 kms of sewage collection network

Fact File

Market Share in Municipal Water Management (1)Water Quantity Distributed (MLD)

Water distributed (MLD)

Sub TotalMkt Share

(%age)

Jamshedpur 170

Jusco – Sub Total597

70%

Haldia 250

Mysore 142

Salt Lake 15

Tata Motors 20K'taka (KUWASIP) 25 Veolia – Sub Total

354%

Nagpur 10

Latur 30 Hydrocomp/SPML - Sub Total

405%

Madurai 10

Tiruppur 185MIDL – Sub Total

18521%

TOTAL 857 100%

Market Share in Municipal Water Management (2)Service Connections (‘000 Numbers)

Service Connections

(‘000)Sub Total

Mkt Share (%age)

Jamshedpur 52

Jusco – Sub Total211.3

70%Haldia 0.3Mysore 150

Salt Lake 0.5Tata Motors 8.5

K'taka (KUWASIP) 30 Veolia – Sub Total40

13%Nagpur 10Latur 40 Hydrocomp/SPML -

Sub Total50

17%Madurai 10

Tiruppur -MIDL – Sub Total

--

TOTAL 301.3

24x7 water supply project for Mysore city

Salient Features of the Project

Largest water supply PPP project in India based on performance

based management contract

First city-wide water distribution management contract serving million

plus population

6- Year tripartite contract between Karnataka Water Supply & Drainage

Board (KUWSDB), Mysore City Corporation (MCC); and JUSCO

One operator for the entire city – optimized & effective solution

Funding by JNNURM (80%), Govt. of Karnataka (10%) and MCC (10%)

Mysore City – Key Contract Variables (as per contract)

East Zone West Zone

Population

(Year 2001)

4.03 Lakhs 3.61 Lakhs

Area (Sq Kms) 44.43 sq. km 62.52 sq. km

Total no. of wards 35 34

Number of wards with everyday water supply

29 22

Bulk Water to be

supplied to AC

80.19 MLD 62.05 MLD

No. of house

connections

66, 565 66618

Number of functional meters

30% 42%

The Three Phases

Phase 112 Months

Phase 236 Months

Phase 324 Months

•O&M Plan •Take-over Operations•Study & Survey•Design & Engineering• IMIS•Capital Investment Plan

• O&M • Sustainability of operations

• Implementation of CIP• Rehabilitation works• Metering program

•O

& M

•B

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Key Contractual Milestones

Key Dates Key Contract Milestones

November 28th, 2008 Effective Date (Contract Signing Date)

January 27th, 2009 Preparatory Commencement Date (Zero Date of the contract)

April 26th, 2009

PHASE 1: PREPARATORY PHASE

(12 MONTHS)

• Submission and Approval of O&M Plan (minimum 30 days for approval);

• Take-over of Operations

April 25th, 2010Submission and Approval and CIP

(minimum 30 days for approval or else deemed approval)

April 26th, 2010PHASE 2:

REHABILITATION PHASE(36 MONTHS)

Commencement of CIP implementation

April 26th, 2013PHASE 3:

MAINTENANCE PHASE(24 MONTHS)

Operations and Maintenance

April 26th, 2015 plus 455 Days

Defect Liability Period

Payment Structure

1. Management fees: Lump sum in two parts.

o Fixed fees (50%), paid in 24 equal quarterly installments.

o Performance fees (50%), paid six monthly on achievement of targets over

project period of 6 years as per performance chart

2. Operating Cost: Lump sum in two parts.

o Fixed fees (30 %), paid in 23 equal quarterly installments

o Performance fees (70%), paid six monthly on achievement of targets over

project period of 6 years as per performance chart

3. Rehabilitation Cost:

o BOQ driven

o Based on Capital Investment Plan (CIP)

o Payable against invoice for completed works not less than Rs 10 lakhs

4. Provisional Items:

o Paid in same manner as rehabilitation costs.

Capital Investment Plan (Rehab & Provisional Items)

To be prepared in the first year and will be the basis for

rehabilitation

Item rate will be the same for the corresponding item quoted in

the bid

Quantities can differ from what are mentioned in the BOQ

(tender document)

However, the final CIP price can vary upto +10% of the total

rehab and provisional costs quoted in the bid (“threshold

limit”)

Inclusion of new items beyond those in BOQ as “contract

variation” and will be outside the 10% “threshold limit”

Performance Targets

Performance Parameter Weightage

Number of connections with 24x7 30%

Revenue Improvement 30%

Revenue Water in 24x7 area 10%

Resolution of Complaints on service in 24x7 area

10%

Resolution of Complaints in entire zone

5%

Leakage levels in 24x7 5%

Quality compliance in 24x7 area 5%

Pressure compliance in 24x7 area 5%

Performance Targets

Performance Targets Unit 6 12 18 24 30 36 42 48 54 60 66 72

Number of connections with 24x7 Connections 0 0 5000 10000 10000 10000 15000 15000 100% 100% 100% 100%

Revenue Improvement % 5% 5% 5% 5% 3% 3% 2% 2% 2% 2%

Revenue Water in in 24x7 area % 65% 70% 75% 85% 85% 85% 85%

Resolutions of Complaints on service in 24x7 area % 95% 95% 95% 95% 95% 98% 98% 98% 98% 98%

Resolution of Complaints in entire zone % 80% 85% 90% 95% 98% 98% 98% 98% 98% 98% 98% 98%

Leakage levels in 24x7 area l/c/d/m 60 55 50 45 40 35 30 25 25 25

Quality compliance in 24x7 area % 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Pressure compliance in 24x7 area % 95% 95% 95% 95% 95% 95% 95% 95% 95% 95%

End of the month from Preparatory Commencement Date

Performance Targets (to be achieved)

Break up of Performance (Management) Fee Performance Fee Break up

Performance Targets Weightage 6 12 18 24 30 36 42 48 54 60 66 72Number of connections with 24x7 30% 1.15% 2.31% 2.31% 2.31% 3.46% 3.46% 0.00% 0.00% 0.00% 0.00%

Revenue Improvement 30% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%Revenue Water in in 24x7 area 10% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Resolutions of Complaints on service in 24x7 area 10% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%Resolution of Complaints in entire zone 5% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21% 0.21%

Leakage levels in 24x7 area 5% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%Quality compliance in 24x7 area 5% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%Pressure compliance in 24x7 area 5% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%

End of the month from Preparatory Commencement Date

Break up of Performance based Operating Cost Performance based Operating Cost Break up

Performance Targets Weightage 6 12 18 24 30 36 42 48 54 60 66 72Number of connections with 24x7 30% 1.62% 3.23% 3.23% 3.23% 4.85% 4.85% 0.00% 0.00% 0.00% 0.00%

Revenue Improvement 30% 2.10% 2.10% 2.10% 2.10% 2.10% 2.10% 2.10% 2.10% 2.10% 2.10%Revenue Water in in 24x7 area 10% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%

Resolutions of Complaints on service in 24x7 area 10% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70% 0.70%Resolution of Complaints in entire zone 5% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29% 0.29%

Leakage levels in 24x7 area 5% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%Quality compliance in 24x7 area 5% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%Pressure compliance in 24x7 area 5% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35% 0.35%

End of the month from Preparatory Commencement Date

Break-up of Performance Fee

Key improvements envisaged through this contract… Obligations of AC

Technical Improvements Hydraulic simulation & network up-

dation for equitable water distribution

Setting up & monitoring District Metering Areas (DMA)

24x7 water supply with min 7m pressure for the entire Mysore city

Leak detection & reduction program leading to phase wise reduction in losses

Reduction in energy consumption Re-Engineering & Rehabilitation of

Pumping Stations Improved water quality Implementation of IMIS

Service Delivery and Commercial Improvements

Increase in customer base Increase in Billing & Collection

Efficiency 100% billing every month with

year-on-year increase in revenue 100% Customer metering 24 hours customer service

centre 100% customer complaint

handling in stipulated time. Public Awareness Program Improved overall customer

satisfaction

Key Obligations of KUWSDB

Overall contract management including decisions regarding achievement of performance targets

Provide support, access to sites, and information to AC for preparation of OMP and CIP

Depute the Board employees and pay their pay, benefits, etc. as per contract conditions

Approval of OMP and CIP Operate, maintain and manage the bulk supplies to the distribution

operating zones as per Schedule 1 of the contract Assist AC in approvals for new connections by MCC Provide permission to AC for repair/replacement of the facilities and the

right of way to lay new water mains Disbursement of management fees, operating costs, bonus to the AC Coordinate with MCC, manage and organise the investments for the project

Key Obligations of MCC

Organize funding for the project out of the annual Budgets and funds released under JNNURM Program

Open and maintain a revenue account for all revenues collected by the AC. Ensure smooth hand over the operations, maintenance of Distribution

Operating Zone to the AC on the Preparatory Commencement Date; Provide to the AC, all data related to O&M manuals, drawings, customer

details, billing related data/hardware/ software, etc. Pay all electricity charges incurred in the Distribution Operating Zone for

providing services Permit and co-ordinate with the AC in providing water supply connections to

un-connected properties Permit AC with road crossing, road cutting and road restoration works for

implementing the rehabilitation works Continue to take actions for recovery of historical arrears from customers Undertake disconnection or regularization of illegal water connections

reported by AC and assist AC in recovering the regularization charges Receive requests for new connections, complaints from customers,

record and forward the same to AC for follow up action

Key Contractual Clauses (1)

Bulk Water Supply Commitmento 80.19 MLD and 62.05 MLD for West and East zones respectively

o Failure to meet this obligation (and also for any of other obligations of MCC and

KUWSDB) will result in revision of performance targets

o However, the performance fee for the pertinent period will be payable as per the

original schedule as if AC has met the performance targets

Quality of watero Quality of water supplied to the customers shall be at the same minimum level as at

bulk point

Disconnection Policyo Action against legal customers for non-payment of bills governed by the existing

bye-laws or procedures of MCC

Dispute Resolution Mechanismo Resolved through an Adjudicator appointed by the Employer

o Fee /costs to be shared equally between AC and the Employer

Key Contractual Clauses (2)

Contract Variationso Employer can propose variation in scope and AC shall respond with a

technical proposal with financial terms

o Scope changes can include variation in number of connections, service

coverage area, customers, etc.

o AC’s remuneration to be adjusted so that AC is in the same financial position

as if the variation were not implemented

Value Managemento AC can propose a value management proposal that helps in reducing cost of

services or furthering objectives of the contract, or benefit the employer

o Subject to approval of the proposal, the remuneration will be adjusted to

account for increase in scope and costs

o If the proposal reduces cost of services, AC will receive 10% of savings

Key Contractual Clauses (3)

KUWSDB and MCC Employees for Deputation

112 Employees in East Zone and 95 Employees in West Zone

MCC and KUWSDB to issue letter to each employee accordingly before the

effective date

No changes in their existing terms of employment

All deputed employees directly report to AC for day-to-day functioning

Employer shall continue to pay their wages, salaries, increments, leave

entitlements, compensation, employee benefits, pension benefits, medical

and welfare arrangements, insurances, and social security contributions

Employer may depute more employees/workers and shall be responsible for

paying their wages/salaries, perks, social benefits, etc.

AC shall effect & maintain minimum insurance against losses & claims

arising from death or injury to any deputed employee as per the norms

stipulated by the Labour Department

Thank You!

Our Mission: Quality Services For Life !!

Meter service charge:For 15 mm dia. Water meter – Rs. 25.00 per monthFor 20 mm dia. Water meter – Rs. 50.00 per month

Sl. No.

Customer Type JUSCO Rate

Consumption Block/ Month Existing Rate – Rs./KL

New Rate (Rs./ KL)

1 Domestic Consumers Up to 10 KL11 to 25 KL26 to 50 KLAbove 50 KL

7.97.97.97.9

5.006.008.00

10.00

1A Domestic Bulk Consumers (Housing Complex/ Apartment)

Up to 25 KL x Nos. of unitsAbove 26 KL to 50 KL x No. of unitsAbove 50 KL x No. of units

7.97.97.9

6.008.00

10.00

2 Institutional / Govt. Up to 20 KL21 to 50 KLAbove 50 KL

4.44.4 4.4

4.406.007.50

3 Commercial consumers

Up to 50 KL51 to 100 KLAbove 100 KL

7.97.97.9

8.0010.0012.00

4 Industrial Consumers

Up to 500KLAbove 500 KL

9.9 9.9

12.5015.00

NEW VOLUMETRIC TARIFF EFECTIVE FROM 1ST. NOVEMBER 2007

Sector - V, Salt Lake Project First P-P-P project in Municipal Water Sector under JNNURM, GOI

Name of Project Development & Management of Water & Sewerage Networks for Salt Lake Sector-V at Kolkata on 30 yr BOT basis.

Job Description Construction of 3 MGD Clear water pumping station, 8 MLD STP, 2.25 ML capacity ESR, 500 mm dia. DI K9 of 3.2 KM, 150 mm to 700 mm dia. Sewerage Network of RCC Hume pipe class NP3 of 14.43 KM with IPS, Installation of bulk & consumer meter, O&M of entire utilities, Billing and collection for 30 year concession period.

Client NDITA, Kolkata (KMDA as Tech. Facilitator)

Project Features Contract for Bulk water supply to be entered between KMC & NDTA,

Developer to purchase bulk water from KMC @ Rs.5/KL and bill consumers a combined ‘water-

cum-sewage’ charge based on volumetric tariff.

Any revision in bulk water supply charge by KMC, passed on to consumers.

Developer to retain ‘water-cum-sewage’ connection charge, approved by NDTA

10% escalation on tariff every five years

Metering Policy to be in place.

Min. monthly charge equivalent to 50% of demand charges.

Withdrawal of ground water by existing consumers is prohibited.

Project Value • Water Supply – Rs. 260.7 million• Sewerage System – Rs. 340.7 million

Tariff Rs. 25 per kL

Funding pattern 65 % Private + 35 % Jnnurm

Partners JUSCO - VOLTAS

Project Duration 19 Months (Construction Phase), 30 years BOT concession

Haldia : Water Supply ProjectName of Project Construction of new water treatment plant on BOT basis and

Operation and Maintenance of the existing Water treatment Plant 25 year lease

Job Description Construction of series tube wells and complete existing network including reservoirs, pipelines and boosting pumping station up to consumer levels and O & M of new distribution network.

Client Haldia Development Authority, Haldia

Scope • O&M of existing Series tube wells 13.62 MLD, raw water pumping station 28.00 MGD.

• Construction of new 50 MGD WTP in 3 phases: 25 MGD, 12.5 MGD & 12.5 MGD in addition to existing 20 MGD WTP being augmented to 25 MGD.

• Four Nos. 1000 mm dia. MS suction main.• 380

Project Value Rs. 880.00 million

Tariff Ind. Rs.11/kL , Comm Rs.9/ kL , Resn. Rs. 5/ kL , Mun. Rs. 3/kL

Funding pattern Private

Partners Ranhill Utilities Malaysia - JUSCO

Project Duration 24 Months (Construction Phase), O&M for 25 Years

Leak detection and rectification works in various divisions of Chennai city

Name of Project Leak detection and rectification works including renewal of all existing house service connections and corroded portion of small distribution mains, phase VI.

Job Description Description of the work:

1) Mains condition survey

2) Renewal of existing CI/PVC mains & House service connections

3) Leak detection

4) Fixing Injection/Isolation assembly for isolation of sub districts.

5) Supplying, laying, jointing, testing and disinfecting Pipeline

Client Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB), Chennai

Salient Features • Rehabilitation of distribution mains of 50 Km covering 42,000 No. of House service connections

• Cutting mains and taking a sample of 1 meter length for visual examination at each street or at 150 m intervals

• supplying, laying, jointing, testing and disinfecting of 100mm, 150mm & 200mm DI pipes.

• Supply and fixing specials, Sluice valves & other appurtenances, Construction of valve chamber

• Leak detection & leakage level monitoring to achieve ultimate target level of 10 l/c/h

Value Rs. 184 million

Completion Time 18 Months (June’2010)

Water Operations - NRW (Industrial Water)

37.035.0

29.0

23.0

5.77.8

2.925

3 1.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Raw Clarified

%

FY04 FY05 FY06 FY07 FY08

Result: NRW improvements

Water Operations - NRW (Potable Water)

9.6

23.0

6.4

12.1

36

6.2

9.6

32.1

5.37.1

28.4

6

24.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

WTP Rising Main Distribution network

%

FY04 FY05 FY06 FY07 FY08

NRW - Water Operations Overall

36.0

16.813.92 12.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

NRW (Overall)

%

FY05 FY06 FY07 FY08

Good

Good

Good

Reduction by 49%

Reduction by 30%

Reduction by 90.5

%

Reduction by 86%

Market Share in Municipal Water Management (3)Population Serviced (Lakhs)

Population Serviced (lakhs)

Sub TotalMkt Share

(%age)

Jamshedpur 7

Jusco – Sub Total26.8

53%Haldia 7Mysore 10

Salt Lake 2.3Tata Motors 0.5

K'taka (KUWASIP) 2 Veolia – Sub Total2.75

5%Nagpur 0.75Latur 5 Hydrocomp/SPML - Sub

Total5.75

11%Madurai 0.75

Tiruppur 16MIDL – Sub Total

1631%

TOTAL 51.3 100%