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Developing Sustainable Water Utilities for Delhi
Developing Sustainable Water Utilities for Delhi
“The next war will be fought over water, not politics”
Boutros Boutros Ghali, UN Secretary General, 1985
So lets talk about water!
Water Stress Levels in India
What we have is all we have!
Domestic Consumption
As per BIS Standards IS 10500-2012 with up to date amendments
Sl. No. Parameters Unit Acceptable
Limit
Permissible
Limit
1 pH - 6.5 – 8.5 NO Relaxation
2 Turbidity NTU 1 5
3 Colour Hazen 5 15
4 Odour - Agreeable Agreeable
5 Taste - Agreeable Agreeable
6 Total Dissolved Solids (TDS) Mg/L 500 2000
7 Total Alkalinity (as CaCo3 ) Mg/L 200 600
8 Total Hardness (as CaCo3 ) Mg/L 200 600
9 Chlorine (as Cl) Mg/L 250 1000
10 Sulphate (as So4) Mg/L 200 400
Water Quality standards in India
• Total Area : 1486 Sq Km
• Population : 20 Million
• Projected Population : 23 Million
• Annual Migration from
• Neighboring States : ~1.4 Million
• Floating Population : ~1.5 Million
• 5-6 Million people live in unplanned habitations
• Coverage with water supply network : 83 %
• Sewerage network coverage : 50 %
• Uncovered : Mainly unauthorized colonies
• Water Treatment Plants : 09 + 6 Nos under execution
• Water Line Network : > 15000Km.
• Underground Reservoirs & Pumping Stations : apprx 117 nos
•
Delhi’s Demography: Uniqueness
Providing drinking water to every household
Enhance Service Standards for the consumers
Improve water quality
Reduction in Non – Revenue Water (NRW)
Energy Conservation
Better collection efficiency of revenue
Extension of water supply in un-served areas
Functions & Obligation of DJB for Water
Delhi Raw Water Sources
Demand & Supply Gap of Raw
water estimated to be >40%
Current Gap in Delhi > 100MGD
By 2025 Gap in Delhi > 250 MGD
How do we fulfil this Gap to
provide 24x7 water to all ?
Initiatives Taken by DJB for Enhancing Service Standards & Quality Management
DJB has implemented three pilot projects on PPP model with private operators for water
distribution in the command areas of Malviya Nagar UGR, Nangloi WTP and Mehrauli-
Vasant Vihar group of colonies.
In PPP projects, KPIs (Key Performance Indicators) related to improvement in services have
to be achieved in fixed time lines
These projects are of 10 to 15 years O&M duration
Promote Reuse and recycle of Grey water/Waste water
Metering of every household connection
Main Obligations of the PPP Operator
Maintenance of existing water supply network
Replacement of old and defective water lines with hdpe/di pipelines
Replacement of all existing household service connection (HSC) with mdpe
pipes with 15 yrs free maintenance without any cost to consumer
Installation of water meters on every HSC by charging Rs 400/-
Laying of water lines in no network colonies with HSC installation
Regular sampling of water in the project area
Time bound repair of leakages and complaint redressals
Meet out key performance indicators after construction period
Bawana
Haiderpur 1,II
Wajirabad I,II,III
Palla
Under Const.
Soniya Vihar.
Bhagirathi
Chanderawal I,II
Nangloi
Dwarka
Okhla I,II
Under Const.
Need for more Recycling &
Tertiary treatment plants!
Location of WTPs in Delhi
Water tariff charged by DJB
CATEGORY -I (DOMESTIC CONNECTIONS)
Monthly Consumption (in Kilolitre) Service Charge
(in INR)
Volumetric Charge
(Per Kl in INR)
Upto 20 146.41 5.27 ($ 0.08)
20-30 219.62 26.36 ($ 0.40)
>30 292.82 43.93 ($0.67)
Plus Sewer Maintenance Charge: 60% of water volumetric charge
CATEGORY - II (NON-DOMESTIC CONNECTIONS - COMMERCIAL/ INDUSTRIAL)
Monthly Consumption (in Kilolitre) Service Charge
(in INR)
Volumetric Charge
(Per Kl in INR)
0-06 146.41 17.57 ($ 0.27)
06-15 292.82 26.35 ( $ 0.40)
15-25 585.64 35.14 ($ 0.54)
25-50 1024.87 87.85 ($ 1.30)
50-100 1171.28 140.56 ($ 2.16)
>100 1317.69 175.69 ($ 2.70)
Plus Sewer Maintenance Charge: 60% of water volumetric charge
Revised water tariff w.e.f. 01.02.2018
INR 10 = USD 0.14
Improvement & Revamping of existing water Supply , Transmission & Distribution Network under Nangloi Water
Treatment Plant (WTP) Command Area.
CASE STUDY
Delhi State Boundary
Delhi State Boundary
NWS
PPP Model To enhance the water service in Nangloi WTP command area
Project Area (1/2)
Project Area (2/2)
Project area : 129 Sqm (8.6% of entire Delhi)
Population : 1.5 Million (8% of entire Delhi)
Water Treatment – Inflow & Outflow
NWS has been awarded 15 year contract for 24x7 water supply at Nangloi area in Delhi;
Total project cost of INR 6640 Mn.
Nangloi Water Services Pvt. Ltd.
Swach Environment Pvt. Ltd.
Veolia India Pvt. Ltd.
49% - INR 301.3 Mn. 51% - INR 313.7 Mn.
Lenders
Bank of India – INR 1000 Mn.
Srei Infrastructure Finance Ltd. –
INR 844 Mn.
Statutory body providing grant funding
Delhi Jal Board (DJB) – INR 4180 Mn.
(Grant + Escalation)
Eq
uit
y
inv
est
ors
Project Structure
Design-Built-Finance-Operate-Transfer (DBFOT) contract for 24x7 water supply
INR 100 Mn. = USD 1.41Mn.
HYBRID ANNUITY MODEL
Project Cost
DJB Share
(70%) of WTP & Network Piping Distribution INR
3209.8 Mn.
+ (100%) of Road Restoration
works INR 1937.7 Mn.
Operator’s Share (30%)
INR 1375.6 Mn.
Total Estimated
Project Cost
INR 6522.8 Mn.
INR 100 Mn. = USD 1.41Mn.
PROJECT OVERVIEW
Company Overview Key Stats
Project Cost
Particulars Nos.
Coverage Area (sq. Km) ~129
Population (mn) 1.07
# of House Service Connections
(HSC – Jan’19) 1,51,408
Operator Fees paid by DJB for water
billed (Current rate) INR 17.73/ KL
In INR Mn. Total NWS share
Water infrastructure 4590 1380
Escalation arising out of
inflation 970 -
Operator capex/ interest cost 1080 1080
Project cost
(excluding – road restoration) 6640 2460
NWS holds a 15 year contract on PPP model for water supply system in Nangloi area, New Delhi
One of the largest water distribution projects in India awarded to a private party
Fully funded project, where required equity has been fully invested; required debt available
70% grant on project cost from Government (DJB).
10 year income tax holiday under IT rules.
The related Road Restoration including escalation would be entirely funded by DJB.
Operations revenue started since hand over.
Project completion expected by Dec 2019.
Note: Current approved COD is Sep 2018; extension
to Dec 2019 is awaited and expected soon.
Project Overview
INR 100 Mn. = USD 1.41Mn.
DJB would pay grant on Capex for Water Infrastructure (@70%) and for related road restoration works
(@100%) including escalation arising from inflation.
DJB would pay Operator Fees @ Rs14.99/KL (plus yoy escalation) of Water Billed for Concessional
Period of 15 years. Presently this rate is 17. 73/KL
DJB would supply the raw water which is to be treated and distributed by Operator. It will ensure free
availability of minimum 40 MGD of Bulk Water and additional 7.5 MGD of Treated Water to the
Operator.
DJB would provide free guaranteed electricity ~15.6mn Kwh for 1st two years and ~13mn Kwh
thereafter.
DJB would provide guaranteed payment to Operator for 35,000 KL/Day for first 3 years
If DJB supplies less than 80% of guaranteed water for more than 30 days, then Operator shall be paid
minimum 80% of last one year average billing and is valid for next 60 days, beyond which Operator
can charge Extraordinary Rate
Concession Agreement : Key Terms
20
PROJECT PROGRESS AND ROADMAP (1/2)
PROJECT ROADMAP
Clear roadmap for next 2 years for completion of the project
• Project progress: N/A
• HSC: 68,000
• NRW: 73%
• Guaranteed Collection efficiency: 80% till COD
@ Takeover
• Project progress: 52%
• HSC: 1,51,931
• NRW: 66%
• Guaranteed Collection efficiency: 80% till COD
Current
• Project progress: 66%
• HSC: 1,59,512
• NRW: 55%
• Guaranteed Collection efficiency: 80% till COD
Mar’19 (Target)
• Project progress: 100%
• HSC: 2,63,992
• NRW: 40%
• Guaranteed Collection efficiency: 80% till COD
Dec’19 (Target)
Note:
HSC: House Service Connection; NRW: Non Revenue Water
Project Progress & Roadmap (1/2)
Strict adherence to best operational practices have led to marked improvement in operating performance
Implementation of district metering systems to bring about reduction of NRW
Swift replacement of old connections and defunct meters
Strict and timely action as per DJB norms against illegal users and defaulters
GPS based photo-meter reading to improve reading accuracy
Addition of new connections in no network area
Implementation of best operational practices as contributed by our international stakeholder Veolia
Improvement in operating parameter of water treatment plant with higher recovery of processed
water and reduction in power consumption
Various sustained and dedicated efforts have led to this remarkable improvement in operating performance
Project Progress & Roadmap (2/2)
1. Enhance Service
Standards and 24x7
water supply
4. Improved
water quality
Pertaining to Quantity of water
• Overall availability and equitable distribution
• Illegal and unauthorized water connections from DJB water lines in network and no network colonies
Pertaining to Quality of Water
• Contamination due to aging network
Pertaining to Cost of Operations and
tariff structure
Pertaining to hours of supply
• Intermittent supply vs. 24X7 supply
Pertaining to “unaccounted for water”
• Physical as well as revenue losses
Key Issues- NWS Project
Illegal and unauthorized water connections from DJB water lines in network and no
network colonies
High non revenue water ( 79 % in 2013)
Reluctance of residents to take legal connection
Reluctance of consumers for installation of water meters
To carry out capex work for laying new pipe lines with heavy traffic
Acceptance of a private operator as a water service provider
Challenges faced in Nangloi PPP Area
Extended Unauthorized Water Connections
Challenges faced in Nangloi PPP Area
Picture for Pipe Laying Delhi Metro Area Photo for Pipe Laying at Delhi Metro Area
Scenario at Take Over Stage – Network Health
Photo for Recycle System of WTP
Inlet of Sludge Water at Sump
Inlet of Sludge Water after Recycling
Additional Recovery of 2 MGD of Water on annualised basis for entire concession
Diagram of Recycling Water System – WTP
Methodology adopting for NRW Reduction & DMA Managment
PPP- Nangloi WTP- DMAs
793
Capex-Pipe Laying – HDPE
156
Capex-Pipe Laying – DI
PE pipes - Use of Medium Density Polyethylene pipe for HSC and HDPE
pipes for distribution Network
PE Pipe Cont……
Technical Innovation In PPP Project
Quality Total System Cost Service Life Reliability
TECHNICAL INNOVATION IN PPP PROJECT Technical Innovation In PPP Project
Electro-fusion saddle Appropriate saddles to provide House Service Connection on PE pipe line, standard EN 12201-3 / ISO 4427 .
TECHNICAL INNOVATION IN PPP PROJECT Technical Innovation In PPP Project
• Good quality of materials (Body – Ductile Iron, Strap
– Stainless Steel with Epoxy coating, nut bolt- Brass)
which guarantees a life time equal to those of the
pipes and are also anti corrosive.
• Reduced risk of leakage – No metal to metal contact
due to insertion EPDM bush.
• Perfect stability on pipe, whereas ferrules prone to
bend and leak, where pipe laid at shallow depth due
to surplus /traffic load.
TECHNICAL INNOVATION IN PPP PROJECT Technical Innovation In PPP Project
• An average 15 % Reduction in NRW , some areas reduced by > 25%
• 91% increase in consumers
• Reduction in water contamination complaints
• Customer satisfaction
• 80 % consumers have water meters
• Significant Reduction in losses at water treatment plant & increase in Yield
• 24 hr toll free complaint number
• On line payments by mobile Bill collection
• ATM payments
Achievements in Nangoi PPP Project
address social and ethical concerns
effective programme governance structure
Effective Revenue Management (O&M, NRW, Billing, collection)
Growth facilitated by intelligent systames
Holistic Approach
Sourav Daspatnaik Chief Executive Officer Swach Environment Pvt. Ltd. Tel: + 91 33 6606 7856 Email: [email protected]
