Alandur Sewerage Project Background: Municipality in Chennai Metropolitan Area Population of around 165,000. Before 1996, town did not have underground sewerage system Unregulated disposal of sewage in storm water drains- environmental and health concerns In 1996, AM announced PPP project-designed for population of about 3,00,000 in 2027 and planned to be completed in 5 years, Projects components-Sewage pipelines, sewage pumping station and STP 1 st project in municipal water sector by PPP route in India AM worked in partnership with TNUIFSL(Tamil Nadu Urban Infrastructure Finance Services Ltd.), state asset management company and USAID for planning
PPP structure BOQ (Bill of Quantities) basis- laying of pipes, construction of pumping station BOT (Build, Operate and Transfer) basis-sewerage treatment plant (STP) After bidding process, project was awarded IVRCL Infrastructures and Projects Ltd in technical collaboration with Va Tech Wabag Technologies Ltd. And Contract was signed on 2 March 2000 Contractor to take construction as well O&M for period of 5 yrs after completion of construction and then transferred to the AM in 2005 SPV(special purpose vehicle) called “First STP Pvt. Ltd” who is owner of STP STP contract of 19 yrs to be transferred to AM in 2019
Process “Willingness to pay” survey-regarding tariffs- Initially resistance among residents regarding private company Public participation campaign to build awareness about benefits of project The lending institutions- “TUFIDCO and TNUIFSL” advised municipality to take one time deposits from residents Consultants, Commissioner and the GoTN reviewed the progress and provided necessary clearances eg. highway authority, PWD etc Capital cost was Rs crore Rs crores was received from TUFIDCO Rs 8 crores was generated-residents as one time sewage charge Category of users Amount (in Rs.) Domestic5000 per house connectio n Commerci al per connectio n Industrial10000 per connectio n Conclusion Alandur sewarage project was successful Public participation played an important role in funding(29%) and supporting the project Leadership role of Mr. B. Subramaniam- the then Mayor of Alandur Interdepartmental coordination led to timely completion of project Transparency in the bidding and contract procedure
Vives Framework Financial structuring of infrastructure projects in PPPs -Antonio Vives, Juan Benavides and Angela M. Paris
LOCAL CONDITIONS (VARIABLES)