Benchmarking urban water and sanitation utilities Phase-II 2007
As part of its urban work programme, the Water & Sanitation Program - South Asia (WSP-SA) in partnership with the Ministry of Urban Development (MoUD), Government of India (GoI), undertook the above-mentioned project. The project was conceptualised in response to GoI's request for better baseline data on the urban water and sanitation sector in India. The project aimed to create awareness about the concept of benchmarking and its benefits for the sector, build on the existing performance evaluation systems in the utilities, and promote and embed the practice of benchmarking as a useful tool for improving sector performance.
Phase-I highlighted concerns on the availability of data and more importantly the reliability of data provided. CRISIL Infrastructure Advisory was selected as the consultant to the Phase-II initiative through a competitive bidding process. CRISIL Infrastructure Advisory collected and analysed utility performance data from 10 cities in the country. To address the issue of non-availability and low reliability of the data provided by the utilities, CRISIL Infrastructure Advisory developed a data reliability scale which allows assessment of the reliability of the data provided and also provides the utilities a framework for data quality improvement through infrastructure and process improvements. This scale has now been adopted by MoUD and has been embedded in the ministry's service level benchmarking initiative.
Preparation of toolkits for public private partnership (PPP) in urban water supply projects
The PPP cell in the Department of Economic Affairs, Ministry of Finance, Government of India and supported by the Asian Development Bank is mainstreaming PPPs at selected line ministries through a technical assistance project. As part of the capacity-building initiative, technical assistance was provided to the Government of Maharashtra for developing PPP templates in the urban water supply and urban transport sectors. The aim of this exercise was to develop a number of PPP structures addressing different needs of a sector, so that a city may pick and choose an appropriate PPP structure based on its own requirements. CRIS Infrastructure Advisory was appointed to prepare 'PPP Model Templates' for each option developed. Each of the templates will identify key principles and headline contractual clauses relating to that PPP structure to allow a project to be developed from an established base of principles. This will ensure proper PPP rationale, equitability, appropriate risk sharing and performance linkages. These templates have been an outcome of a series of consultations with urban officials in the sample cities-12 cities for water supply sector and 4 cities for urban transport sector)-and larger focus group discussions with the private sector.
Fourth Mumbai Middle Vaitarna Water Supply project
The Municipal Corporation of Greater Mumbai (MCGM) has decided to implement the Middle Vaitarna project, to augment water supply to Mumbai by 455 Million Litres a Day (MLD). MCGM appointed CRIS Infrastructure Advisory-following a competitive bidding process-for assistance in evaluating different financing options for the implementation of the Middle Vaitarna project. CRIS Infrastructure Advisory examined various financing options such as borrowings from banks/financial institutions and multilateral/bilateral funding agencies, implementation through internal resources, and involvement of private sector participation.
Design of a capital investment strategy and financing plan for a utility in Indonesia
The proposed objective of this activity is to enhance a water utility's financial market access through the design of a financing plan and the issuance of a local currency credit rating thereby augmenting its access to the market-based funding pool of institutional savings and investment. CRISIL Infrastructure Advisory's role:
- Phase assessment of the utility's medium-term financing requirements
- Identification of utility's financing requirements during the next five to seven years
- Review of the existing legal framework for accessing domestic finance and suggesting an appropriate instrument including strategy for accessing capital from the entire range of funding sources (private bilateral and multilateral)
- Design of capital structure, financing plan and financial projections
Preparation of a business plan for an Indian water utility in the private sector
CRISIL Infrastructure Advisory L was awarded a mandate by a leading water utility in the private sector to prepare a business plan to emerge as the most preferred provider of civic and allied services and the national leader in water and wastewater services. CRISIL Infrastructure Advisory's scope of work included estimating the size of the business opportunity and assessing the positioning of the utility to be leader player in the sector. CRISIL Infrastructure Advisory as part of the business plan provided a strategic roadmap for the utility to achieve its objective. The roadmap was supported by a detailed financial plan and the phased action plan with specific milestones to be achieved.
Aurangabad water supply PPP project
CRISIL Infrastructure Advisory is advising the Aurangabad Municipal Corporation in selecting a private operator to augment bulk water supply project, refurbish existing water distribution system, meter all connections, manage billing and collection system, create new distribution infrastructure, and operate and maintain the entire system. The private operator is expected to manage the entire project for the specified period of the contract. The project when successfully bid out will be the first water concession in the country. It will also be the largest water PPP project in the country. The entire project cost is estimated to be Rs.6.5 billion.
CRISIL Infrastructure Advisory is providing the transaction advisory services under India Infrastructure Project Development Fund framework under the Department of Economic Affairs, Government of India and supported by the Asian Development Bank.
Kolhapur sewage treatment plant (STP) PPP project
CRISIL Infrastructure Advisory is assisting Kolhapur Municipal Corporation (KMC) in developing an STP on PPP model. The private developer is expected to design, construct and commission a 76- Million Litres a Day (MLD) STP,, and operate and maintain it for 10 years. This project is funded through a grant of 70 per cent of the approved project cost by the National River Conservation Directorate (NRCD), Ministry of Environment and Forests, Government of India. The project when successfully bid out will be the first PPP project for STP using NRCD grant in the country. The entire project cost is estimated to be Rs.800 million. The PPP model allows KMC to seek private capital and expertise to build, operate and maintain the STP.
CRISIL Infrastructure Advisory is providing the transaction advisory services under the India Infrastructure Development Fund framework under the Department of Economic Affairs, Government of India and supported by the Asian Development Bank.
Preparation of business plan and sector strategy for urban water supply and sanitation (UWSS) sector for Maharashtra
CRISIL Infrastructure Advisory has assisted the Water Supply and Sanitation Department, Government of Maharashtra in preparing a business plan for the sector. The objective of the business plan is to allow the sector to provide affordable, reliable and sustainable UWSS services in the state. The business plan attempts to identify the policy and institutional reforms that need to be implemented at the state and urban local bodies level so that the business plan objective is achieved. The investment requirement in the sector over a 25-year period has also been identified.
The business plan seeded the Maharashtra Sujal and Nirmal Abhiyan programme which was launched, as an incentive fund for investments in the sector by ULB, to commemorate the fiftieth anniversary of the foundation of the state of Maharashtra.
The preparation of the business plan was funded by The World Bank.
Transaction structuring for sub-sovereign lending by Asian Development Bank to Nagpur Municipal Corporation for commercial borrowing
CRISIL Infrastructure Advisory is currently advising Asian Development Bank for lending to Nagpur Municipal Corporation for a bulk water project. The lending will be in the form of a local currency loan through non-sovereign window. CRISIL Infrastructure Advisory's role is in project structuring, contract design and creditworthiness assessment. The project cost is USD150 million.
Demand and project risk assessment for a concession in West Bengal
CRISIL Infrastructure Advisory assisted a successful bidder in assessing the demand and project risks. The concession was a water supply and wastewater collection in a large institutional area dominated by information technology (IT) industries.
Demand assessment for a concession in West Bengal
CRISIL Infrastructure Advisory assisted a successful bidder in assessing the demand risks. The concession was a water supply in a large industrial township in the state.
Identification of water sector investment opportunities
CRISIL Infrastructure Advisory has advised banks, developers and private equity funds for various investment opportunities in the water and wastewater sector.