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Public Private Partnerships

Public Private Partnerships. Project 1: ISWM in Koyembedu, Chennai. Description Private Operator to collect and process at least 150 MT of waste per day Private Operator to maintain bio-methanation compost plant Payment based on waste processed IIT Madras’ Role

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Public Private Partnerships

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  1. Public Private Partnerships

  2. Project 1: ISWM in Koyembedu, Chennai • Description • Private Operator to collect and process at least 150 MT of waste per day • Private Operator to maintain bio-methanation compost plant • Payment based on waste processed • IIT Madras’ Role • Assistance in Project Structuring (Completed) • Assistance in project oversight and management (Ongoing) • Project Status • Delayed by several months due to court cases • Has now been operational for a few months

  3. Project 2: STP in Coimbatore Coimbatore

  4. Ondipudur STP at Ondipudur

  5. Project Details • Description • Construction and operation of a 60 MLD STP (Expandable to 80 MLD) on a BOT basis at Ondipudur • Cyclic Activated Sludge Process Technology • Project Cost – INR 48.7 Crores • IIT-Madras’ Role • Project Structuring for PPP • Preparation for IIPDF funding

  6. Project Structure • Concession Type: BOT • Concession Period: 15-20 Years • Financing: • 50% through JNNURM • 20% as an interest-free loan from GoTN • 30% from the private operator • Cost Recovery • Domestic and Commercial connection charges • Periodic sewerage charges • Re-sale of water from all 3 plants to industry (30 MLD of existing demand) • Mode of Payment: Annuity (Rs. 3000/ML for 20 years) • Could be the bid variable

  7. Coimbatore Land Acquisition Payment Collection Demand Risks Providing Permits and Approvals Private Operator Construction Operations Financial Closure Regulatory Risks Risk Allocation

  8. Challenges • Poor Collection Efficiencies • Unwillingness to Charge • Uncertainty of demand for recycled water • Uncertainty on sensitivity of industrial buyers to price • Quality risks inherent in supplying recycled water from other plants

  9. Scenarios – Resale of water

  10. Scenarios – Increase in Collection Efficiency

  11. Scenarios – Loan Repayment

  12. Recommendations and Status • Viability Gap Funding be chosen • Project Report is ready to be submitted to the TN PPP Cell • Project Governance is likely to prove crucial • If successful, can be a good exemplar to follow

  13. Challenges Faced • Unwillingness to Charge • Lack of understanding of PPPs • Poor quality data on existing water and sanitation services • Low level of monitoring of service delivery and consumption • Lack of political willingness • Legal and Institutional Barriers • JNNURM

  14. Other Activities • A report on the Water and Sanitation status of 50 municipalities in Chennai has been prepared, and an analysis has been conducted to identify potential PPP opportunities • A Training program for municipalities within TN is being organized

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