ADB Workshop, Bhopal

Jamshedpur Utilities & Services

Company Ltd.

February, 2009
Jamshedpur Water and Wastewater
System
Fact File Water Infrastructure
Area served 64 sq. km • 2 River Pump houses : 264 MLD
Population served 7.00 lakhs
• Raw Water Pump House : 173 MLD
Avg. daily consumption 206 lpcd
Length of Water Mains 550 kms
• Clarified Water Pump House : 91MLD
Length of Sewer lines 475 kms • 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
 Market Share in Municipal Water Management (1)
Water Quantity Distributed (MLD)

Mkt Share
Water distributed
Sub Total (%age)
(MLD)
Jamshedpur 170
Haldia 250
Jusco – Sub Total
Mysore 142 70%
597
Salt Lake 15
Tata Motors 20
K'taka (KUWASIP) 25 Veolia – Sub Total
4%
Nagpur 10 35
Latur 30 Hydrocomp/SPML - Sub
Total 5%
Madurai 10
40
MIDL – Sub Total
Tiruppur 185 21%
185
TOTAL 857 100%
 Market Share in Municipal Water Management (2)
Service Connections (‘000 Numbers)

Service Mkt Share

Connections Sub Total (%age)
(‘000)
Jamshedpur 52
Haldia 0.3
Jusco – Sub Total
Mysore 150 70%
211.3
Salt Lake 0.5
Tata Motors 8.5
K'taka (KUWASIP) 30 Veolia – Sub Total
13%
Nagpur 10 40
Latur 40 Hydrocomp/SPML -
Sub Total 17%
Madurai 10
50
MIDL – Sub Total
Tiruppur - -
-
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 4.03 Lakhs 3.61 Lakhs

(Year 2001)
Area (Sq Kms) 44.43 sq. km 62.52 sq. km
Total no. of wards 35 34
Number of wards with 29 22
everyday water supply

Bulk Water to be 80.19 MLD 62.05 MLD

supplied to AC
No. of house 66, 565 66618
connections
Number of functional 30% 42%
meters
The Three Phases

• O&M Plan
Phase 1 • Take-over Operations
12 Months • Study & Survey
• Design & Engineering

• Customer Support Systems

• Billing & Collection
•O & M
• IMIS
• Capital Investment Plan

Phase 2
36 Months • Implementation of CIP
• Rehabilitation works
• Metering program

Phase 3
24 Months • O&M
• Sustainability of
operations
 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)
• Submission and Approval of O&M
April 26 , 2009
th
Plan (minimum 30 days for approval);
• Take-over of Operations
PHASE 1: Submission and Approval and CIP
April 25 , 2010
th PREPARATORY PHASE (minimum 30 days for approval or else
(12 MONTHS) deemed approval)
PHASE 2: Commencement of CIP implementation
April 26th, 2010 REHABILITATION PHASE
(36 MONTHS)
PHASE 3: Operations and Maintenance
April 26th, 2013 MAINTENANCE PHASE
(24 MONTHS)
April 26th, 2015 plus Defect Liability Period
455 Days
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 10%
24x7 area
Resolution of Complaints in entire 5%
zone
Leakage levels in 24x7 5%
Quality compliance in 24x7 area 5%
Pressure compliance in 24x7 area 5%
 Performance Targets
(to be achieved)
Performance Targets End of the month from Preparatory Commencement Date

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%
 Break-up of Performance Fee
Break up of Performance (Management) Fee
Performance Fee Break up End of the month from Preparatory Commencement Date
Performance Targets Weightage 6 12 18 24 30 36 42 48 54 60 66 72
Number 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%

Break up of Performance based Operating Cost

Performance based Operating Cost Break up End of the month from Preparatory Commencement Date
Performance Targets Weightage 6 12 18 24 30 36 42 48 54 60 66 72
Number 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%
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 Commitment
o 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 water
o Quality of water supplied to the customers shall be at the same minimum level as at
bulk point

 Disconnection Policy
o Action against legal customers for non-payment of bills governed by the existing
bye-laws or procedures of MCC

 Dispute Resolution Mechanism

o 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 Variations
o 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 Management
o 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
 Our Mission:
Quality Services For Life !!

Thank You!
OLUMETRIC TARIFF EFECTIVE FROM 1ST. NOVEMBER 2007
Sl. Customer Type JUSCO Rate
No. Consumption Block/ Month Existing Rate – New Rate (Rs./
Rs./KL KL)

1 Domestic Consumers Up to 10 KL 7.9 5.00

11 to 25 KL 7.9 6.00
26 to 50 KL 7.9 8.00
Above 50 KL 7.9 10.00
1A Domestic Bulk Up to 25 KL x Nos. of units 7.9 6.00
Consumers (Housing Above 26 KL to 50 KL x 7.9 8.00
Complex/ No. of units 7.9 10.00
Apartment) Above 50 KL x No. of units
2 Institutional / Govt. Up to 20 KL 4.4 4.40
21 to 50 KL 4.4 6.00
Above 50 KL 4.4 7.50
3 Commercial Up to 50 KL 7.9 8.00
consumers 51 to 100 KL 7.9 10.00
Above 100 KL 7.9 12.00
4 Industrial Up to 500KL 9.9 12.50
Consumers Above 500 KL 9.9 15.00
Meter service charge:
For 15 mm dia. Water meter – Rs. 25.00 per month
 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 Project
Name 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)
 Result: NRW improvements
Water Operations - NRW (Industrial Water)

40.0 37.0
35.0
35.0 Good
29.0
30.0
Reductio 23.0 Reduction
25.0 NRW - Water Operations Overall
n by 90.5 by 86%
20.0
%

%
15.0 40.0
7.8
36.0
10.0 5.7 Good
2.92 3
5 35.0
5.0 1.8
0.0
30.0
Raw Clarified 25.0
20.0 16.8

%
FY04 FY05 FY06 FY07 FY08 13.92
15.0 12.1
10.0
40.0 Water Operations - NRW (Potable Water) 5.0
36 Good
0.0
35.0 32.1
NRW (Overall)
30.0 28.4
FY05 FY06 FY07 FY08
24.1
25.0 23.0
Reduction
20.0 by 49%
%

15.0 Reduction by
12.1
9.6 9.6 30%
10.0 6.4 6.2 5.3 7.1 6
5.0
0.0
WTP Rising Main Distribution network

FY04 FY05 FY06 FY07 FY08

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

Population Mkt Share

Serviced Sub Total (%age)
(lakhs)
Jamshedpur 7
Haldia 7
Mysore 10 53%
Jusco – Sub Total
Salt Lake 2.3 26.8
Tata Motors 0.5
K'taka (KUWASIP) 2 Veolia – Sub Total
5%
Nagpur 0.75 2.75
Latur 5 Hydrocomp/SPML - Sub
Total 11%
Madurai 0.75
5.75
MIDL – Sub Total
Tiruppur 16 31%
16
TOTAL 51.3 100%