3rd

September 2020.

National Mission for Clean Ganga

Department of Water Resources, River Development and Ganga

Rejuvenation

Ministry of Jalshakti.

Government of India

2

Innovation

• Focus on asset creation and not asset maintenance

• Treatment capacities for 30% of wastewater generated

• Under utilization and inefficient operation of many STPs

• Assets rehabilitated every 6-8 years – leading to Design-Build-Neglect-Rebuild [DBNR] model.

Poor service delivery from Wastewater Treatment Plants

Under

construction

6%

Not

operating

STPs

19%

Not

meeting

BOD

Standard

32%

Meeting BOD

standards

43%

PERFORMANCE ASSESSMENT OF 152

SEWAGE TREATMENT PLANTS

Namami Gange Approach to Sewage Infrastructure

• Mapping and condition

assessment of existing

treatment infrastructure(97

towns).

• Project planning for longer

period of demand(2035).

• Performance based contracting.

• Improved governance- “One

City One Operator”.

• Reuse and Recycle of waste

water.

• Wide market consultation(Feb

2016, Nov 2016, Apr 2019).

3

Assurance of Desired Level of Performance

Assurance of Long Term Continued Performance

Distinct Accountability

Sustainability- Technical & Financial

Development of Treated Water Recycling Market

100% Central Funding for Infrastructure and O&M

Hybrid Annuity Model

Upto 40% of Capital Cost

by Government

Annuity paymentsRemaining capital investment

Annual O&M cost

Payments linked to performance standards

Independent of treated water recycling

revenue

O&M Phase

2 4 6 8 14 15th

Year

Construction Phase

Interest rate risk and inflation risks are covered.

Payment Security mechanism

Transaction Structure

PROJECT SPV

(Selected Bidder)

Terms Loan/

Working Capital

NMCG

BANKERS /FIs

Design, build, finance, operate,

maintain and transfer

Escrow

Account

Appointed by

NMCG

ULB

Land and ROW

Project EngineerGreen Field & brown

Field STPs and

Associated infrastructure

Review and construction supervision,

Monitoring of KPIs

Tripartite agreement to be executed between the Executing agency, NMCG and

identified private developer

ROW: Right of way

First set of Projects

6

HaridwarTwo STPs – 68 MLD at Jagjeetpur & 14

MLD at Sarai

Uttarakhand Pey Jal Nigam as Executing

Agency.

Awarded to M/s HNB Engineers Private

Limited

Total awarded cost Rs. 171.53 Cr

14 MLD STP at Sarai is Commissioned

68 MLD STP at Jagjeetpur to be

commissioned by end of this month.

Milestone completed in Jagjeetpur.

Varanasi50 MLD STP at Ramana & rehabilitation of

existing associated infrastructure.

Uttar Pradesh Jal Nigam as Executing

Agency.

Awarded to Consortium of Essel

Infraprojects Limited – RPC ECOS LLC.

Total Awarded Cost : Rs. 153.16 Cr

3rd Construction milestone completed.

Excepted to be commissioned by December.

More than 800 queries replied during pre bid meeting

International Finance Corporation as the Transaction Advisor.

7

One City One Operator

• Paradigm shift in the sector –

one stop solution for city wide

sewage treatment

• Integration of new and existing

sewage treatment infrastructure

City Existing New

Total

STP

capacit

y

(MLD)

Prayagraj 254 72 326

Kanpur 425 50 475

Mathura 37.3 30 67.30

Howrah 22 165 187

Patna 150 150

Farukkabad 2.7 35 37.7

Mirzapur-Ghazipur 14 39 57

• Single ownership and

accountability

• Assured & continued of

performance for both existing

and new Sewage infrastructure

Mathura Sewage Scheme Rs 437.95 Cr

First Project under the concept of One city –One operator under HAM. Slide

8

Development of 30 MLD STP at masani

zone

Rehabilitation of 3 existing STPs - (16

MLD UASB & 14.5 MLD WSP at Trans

Yamuna and 6.5 MLD WSP at Masani) &

associated infrastructure

Development of 20 MLD TTP for supply of

water to Mathura Refinery of IOCL.

IOCL to share full O & M cost and partial

capital cost of TTP through water tariff

Evolution of HAM – towards One City One Operator

approach

Rehab- Brownfield

and new STPs.

Reuse of TWW

Rehab - Brownfield,

O&M of existing STPs,

New STPs and Septage

treatment

Howrah, Allahabad

Kanpur

Network (capex and

O&M) – DBOT STPs –

(Capex and O&M) -

HAM

Patna – Digha &

Kankerbagh

Com

ple

xit

y

March 2017 June 2018 Dec 2018 April 2019

Varanasi,

Haridwar

Primarily

New STPs

Mathura

Awarded / /under implementation

Bids Received

Haridwar

Varanasi

Mathura

Under Bidding

Kolkata (WB)Howrah (WB)

Patna (WB)

Allahabad

Kanpur

Bhagalpur (WB)

HAM status

• Total 29 projects in 18

packages.

• Awarded Packages– 9

• Bids received – 3

• Under Bidding – 6

• Total value– USD $ 1.4

billion(Rs.10816 Cr)

• Pvt. Capital Mobilized -

$ 102 million(Rs.716

Cr)

• Total potential for

private capital – USD $

250-285

million(Rs.1800-2000

Cr)

• Encouraging new

players to enter the

market

PlayersBidders

Yes Bank

Indus Ind

PTCFSL

Tata Clean Tech

IFC

ADB

Project Engineers

AECOM

Shah Technical

Mahindra Consulting

Fitchner India

HNB Engineers

Shapoorji Pallonji

Triveni Industries

VA Tech Wabagh

Adani Enterprises

Vishwaraj

Enterprises

Suez

SMS Limited

Swachh Limited

Esssel Infra

Organica

JKB Infra

GA Infra

RPC ECOS LLC

Vital Capital

Tahal Engineering

Metito

Transaction Advisors

IFC

Deloitte

KPMG

AT Kearney

PWC

Lenders

Meerut – Rs.690.71 Cr

Proposed Capacity 214 MLD

Bareilly – Rs.231.79 Cr

Proposed Capacity 63 MLD

Mirzapur- Rs129.08 Cr

Proposed Capacity 18 MLD

Hooghly-Chinsurah

Rs.160 Cr

Proposed

Capacity

29.3 MLD

Ghazipur – Rs 152.83 Cr

Proposed Capacity 21 MLD

PIPE LINE HAM PROJECTS

Uttar

Pradesh

Bihar

West

Bengal

Asansol- Rs 384.96 Cr

Proposed Capacity 113 MLD

Durgapur- Rs287.53 Cr

Proposed

Capacity

80 MLD

Burdwan- Rs.234.31 Cr

Proposed

Capacity

50 MLD

Agra- Rs. 842.25Cr

Proposed Capacity 164 MLD

Color Coding- Packaged

13

Funding opportunities.

S No. HAM Project

Capital

Cost

(Rs. In

Crore)

40% paid

by NMCG

(Rs. In

Crore)

Equity by

Promoters

(15%)

(Rs. In

Crore)

Long Term

Debt

(45%)

(Rs. In

Crore)

1Meerut 328.86 131.54 49.33 147.99

2Agra 317.47 126.99 47.62 142.86

3Bareilly 139.44 55.78 20.92 62.75

4Moradabad 53.53 21.41 8.03 24.09

5Mirzapur-Ghazipur 101.46 40.58 15.22 45.66

6Budhana- Muzzafarnagar 142.37 56.95 21.36 64.07

7Farukkabad 87.28 83.33 31.25 93.75

8Digha-Kankarbagh 203.07 87.35 32.76 98.27

9Bhagalpur 175.12 81.23 30.46 91.38

10Howrah-Bally-Baranagr 253.56 98.84 37.07 111.20

11Durgapur-Asansol-Burdwan 501.22 103.97 38.99 116.96

12Hoogly Chinsurah 94.33 67.28 25.23 75.69

13Maheshtala 123.29 67.50 25.31 75.94

Total 2521.00 1022.75 383.53 1150.59

14

April 2019

IBRD Loan Guarantee – Payment & Guarantee Mechanism

• In a regular payment scenario, IBRD Guarantee rolls over quarterly to cover

the subsequent 2Q over the contract.

• In a payment default scenario, IBRD Guarantee offers timely liquidity for the

SPV through L/C. IBRD engages with the GoI/NMCG to address the funding

gap issue.

Project

SPV

3. Submission

of Invoice of

O&M

Payment after

approval

4. NMCG

releases

Payment

1.

Program

Support

2. Invoice with report on adherence to O&M

KPIs

NMCG

(Min. of Jal

Shakti)

State/ULB -

Contracting

Authority

Commercial

Bank

6. Call on IBRD

Guarantee

Ministry of

Finance

7. WB

discusses

repayment

options

under the

Indemnity

Agreement

with

Government

5. SPV fails to meet

Debt Service

Payment due to

non-payment from

Step 4

Salient features.

• 100% central sector funding for both capital and O & M costs.

• Complete coverage of interest rate risk and inflation risk.

• Project Monitoring through independent Project Engineer appointed by NMCG.

• Payment security mechanism complemented by IBRD guarantee in selected projects (Agra, Meerut & Saharanpur).

• Adequate time provided in the concession agreement for rectifying non adherence to the KPIs.

• Partnership in true sense. NMCG actively involve with the Executing Agencies and the concessionaire to resolve issues if any.

• Standardized bidding documents – Approval by NITI Aayog.

• Equitable risk distribution.

15

Thank You

16