PROJECT-KUWSMP

Karnataka Urban Water Supply Modernization Project (KUWSMP)

Project Objective

Based on the success of 24x7 water supply Demonstration Project, the proposal of up-scaling 24x7 water supply to the entire corporation areas of Belagavi, Kalaburagi and Hubballi-Dharwad at an estimated cost of Rs. 1809.00 Crores has been approved, vide Govt. Order No. UDD 244 PRJ 2013, dated 7.11.2013. The share of the World Bank is 67% (Rs. 1209.00 Crores).

The break-up of the project cost is as under:

SL No. City Estimated Cost(In.crores)
1 Hubballi-Dharwad 763.00
2 Belagavi 427.00
3 Kalaburagi 489.00
4 Project Management and Technical Assistance for Sector Development 130.00
5 Total 1809.00

The above projects were proposed to be implemented on ‘Performance Based Management Contract (PBMC)’.

a) Design & Implementation Period – 4 years

b) Operation & Management Period – 8 years

Hubballi and Dharwad;

After due bid process, the work of Up-scaling 24x7 water supply to the entire corporation areas of Hubballi-Dharwad city was awarded to M/s Ranhill Utilities Sdn Bhd (Malaysia) Joint Venture with Z&AP Antonaropoulos & Associates S.A (Greece) and IL&FS Water Ltd, India for operator services. The Operator failed to execute the project and instead approached Arbitration Tribunal with claims. Defense statement and counter claims are filed by KUIDFC through Advocate M/s Holla & Holla on 27.04.2018.

The subject was placed before the 16th Empowered Committee meeting on 04.08.2018. The Committee decided to terminate the existing contract at their risk & cost and propose a alternative proposal. Termination Notice issued on 05.10.2018 by Commissioner, Hubballi-Dharwad Municipal Corporation and postfacto No Objection to terminate the Contract received from World Bank on 30.08.2019.

The arbitration proceedings have started and the 20th hearing of arbitration tribunal was held on 07.12.2019. The next date of hearing is on 17.02.2020. The extension to Arbitration process upto 06.06.2020 is obtained from the City Civil Court Bangalore. Belagavi and Kalaburagi

No bids were received in response to the invitation of bids for the Operator Services of Belagavi and Kalaburagi cities.

a) Expert Reviewer: M/s SGI Studio Galli Ingegneria S.R.L., Via dellavite, Rome Italy was appointed as Expert Reviewer for all the three cites i.e Hubballi-Dharwad, Belagavi and Kalaburagi projects from: 26.04.2017 for a period of 48 months and the contract cost of Rs.14.12 Crores. The payment to the contractor is based on the mandays of working of key personal and support staff. Presently, their services are been utilized to a limited extent such as assistance in DBOT bid document preparation.



b)Technical Auditor: M/s EGIS India Consulting Engineers Private limited, Bangalore was appointed as Technical Auditor for Hubballi- Dharwad Upscaling 24/7 Water Supply Project on: 01.09.2017 for a period of 40 months at a contract cost of Rs.9.09 Crores.

Due to non performance of the Operator the Hubballi-Dharwad, Operator Contract was terminated on 05.10.2018. The Technical Auditor contract of M/s EGIS India Private limited with respect to the PBMC Model project of Hubballi-Dharwad was terminated on 28.02.2019.

c)Support Organizations: CURDS Jv ICDSS for Hubballi and RDS-Murgod for Dharwad was appointed on:25.01.2017 for implementation of Social Intermediation and Communication Activities at Hubballi and Dharwad city for a period of 48 months. Teams are visiting households in Hubballi-Dharwad cities for dissemination of project information to various stakeholders. Assisting HDMC and KUWS&DB in identification of unauthorized water supply connections and motivate the customers to regularize their connections. Promoting the defaulters to pay the arrears of water bills.

•Support Organization intervention has helped KUWS&DB for Collection of Rs.24.00 lakhs of water tariff arrears in the Demozones of Hubballi and Dharwad during the month of January-2020.

• The Social staff of PIU, Hubballi-Dharwad have been involved in coordination of Organizing DLIC meeting on 04.01.2020 at Kalaburagi.

• Assisting PMU in Collection of details of the land proposed for ELSRs/GLSRs

d) Demozones: 24×7 Water supply is being successfully carried out in the demo zones of Hubballi-Dharwad, Belagavi and Kalaburagi cities. M/s Veolia India Pvt Ltd is placed for Operator Services and M/s WAPCOS Limited is placed for Technical Auditor for one year from 01.03.2019 to 29.02.2020. The service of these organizations will be completed on 29.02.2020.

The tender process for hiring of Operator and Technical Auditors for the service for a period of one year from the date of 1.3.2020 is in progress.

Project Scope

Each project city will enter into a twelve-year contract with a private operator. The performance-based contract comprises a one-year period for planning (start-up period),a three-year investment period to transition to continuous supply and to build a well-run utility convert intermittent supply and an eight-year period of ongoing service delivery with continuous supply (sustaining period). The ULB operates the system during the start-up period and private operator takes over operations from the beginning of the transition period.

Project Components

SL No. Components INR(in Crores)
1 Capital Investment Program 1679.00
2 Technical Assistance for Sector Development 30.00
3 Project Management 100.00

Project Funding Arrangement

Sl No. Funding Agency US $ Million Rs. in crores %
1 World Bank 187 1209 67
2 State Share 20 130 7
3 ULB Share 72 470 26
4 TOTAL 279 1809 100

Project Implementation

KUIDFC, which manages a range of urban infrastructure development projects for the GoK, will manage project implementation on behalf of the project cities. It has established a PMU which will be responsible for the day-to-day project management, progress monitoring and reporting, procurement activities, and financial management.

KUIDFC has established PIU in each project city, which will oversee the day-to-day activities of the Project at the city level and will report to the PMU and to the ULB.

An Empowered Committee has been established to take decisions for implementing the projects

Progress

The projects of upscaling of existing intermittent supply to 24x7 Water supply for the three cities of Belagavi, Kalaburagi and Hubballi-Dharwad are now proposed to be implemented on ‘Design-Build-Operate-Transfer (DBOT)’ with following period:

a) Design & Implementation Period – 5 years

b) Operation & Management Period – 7 years

The Government has approved the above proposal vide GO No: UDD 279 PRJ 2018, Dated: 22.10.2018.

•Belagavi: The project estimated cost is Rs. 427 Cr. (capex) + Rs. 280 Cr. (opex) = Rs.707 Cr. Last date for submission of Financial and Technical Bids was 04.10.2019. Two bids received and Technical evaluation report submitted to World Bank on 14.11.2019. World Bank has raised certain Queries on technical evaluation report on 18.11.2019. Response to Queries in line with the clarification received from bidder on 25.11.2019 and compliance matrix with revised evaluation report submitted to World Bank on 30.11.2019. Compliance to 3rd interim response of World Bank dated:14.12.2019 was submitted on 23.12.2019. World Bank has issued NOC for Technical part of the bid on 05.02.2020 and M/s L&Ts Technical bid is responsive to the bid conditions and eligibility criteria’s and it is accepted. The Financial bid will be opened on 15.02.2020 at 16.00 Hrs.

•Kalaburagi: The project estimated cost is Rs.453 Cr (capex) + Rs. 289 Cr (opex) = Rs. 742 Cr. Last date for submission of Financial and Technical Bids was 30.09.2019. Only One bid received and Technical evaluation report submitted to World Bank on 08.11.2019. World Bank has raised certain Queries on technical evaluation report on 21.11.2019. Response to Queries in line with the clarification received from bidder on 27.11.2019 and compliance matrix with revised evaluation report submitted to World Bank on 30.11.2019. Compliance to 3rd interim response of World Bank dated:13.12.2019 was submitted on 23.12.2019. World Bank has issued NOC for Technical part of the bid on 05.02.2020 and M/s L&Ts Technical bid is responsive to the bid conditions and eligibility criteria’s and it is accepted. The Financial bid will be opened on 15.02.2020 at 16.30 Hrs.

•Hubballi-Dharwad - The project estimated cost is Rs.763 Cr (capex) + Rs. 445 Cr (opex) = 1208 Cr. Last date for submission of Financial and Technical Bids was 25.11.2019. One bid received and Technical evaluation report submitted to World Bank on 09.12.2019. World Bank raised certain queries in line with the clarification received from bidder on 09.01.2020 and compliance matrix with revised evaluation report submitted to World Bank on 14.01.2020. World Bank has issued NOC for Technical part of the bid on 05.02.2020 and M/s L&Ts Technical bid is responsive to the bid conditions and eligibility criteria and it is accepted. The Financial bid will be opened on 15.02.2020 at 17.00 Hrs.

•DBOE: Separate notification for EOI has been issued for empanelment/short listing of DBOE Engineer for Belagavi, Kalaburagi and Hubballi-Dharwad. The EOIs received for all the three cities and the shortlist of consultants is approved by World Bank and draft RFP is submitted to World Bank on 04.02.2020 seeking no objection to issue it to shortlisted consultants.

•Support Organizations for Belagavi and Kalaburagi: For Implementation of Communications and Stakeholder intermediation activities in Belagavi and Kalaburagi cities, procurement plan has been approved by World Bank. KUWSMP-Technical Committee approved TOR for EOI for appointment of Support Organizations for Belagavi and Kalaburagi to place before procurement committee of KUWSMP. After approval of Procurement committee, EOI will be notified.

Reforms

It is proposed to implement reforms based on “Urban Drinking Water and Sanitation Policy” of Government of Karnataka.

Frequently Asked Questions

Yes. 24x7 water supply has been provided in the 5 demonstration zones, 1 each at Hubli, Dharwad, Belgaum (North), Belgaum (South) and Gulbarga under “Karnataka Urban Water Sector Improvement Project” (KUWASIP). It is also successfully implemented in Ilakal Town, Bagalkot District with 60,000 population.
Yes. Continuous water supply is achieved by provision/rehabilitation of Raw Water / Clear Water Transmission Mains, Pumping Stations, Water Treatment Plants, Ground level and Elevated Services Reservoirs, distribution networks, SCADA, House Service connections etc. This has been successfully implemented in the selected 5 demonstration zones and Ilkal town, Bagalkot District
Worldwide, it is recognized that the best way of distributing safe water is to keep the distribution network under constant pressure, and thus distribute water on a continuous basis. Under intermittent supply conditions, contamination can occur every time distribution pipes are empty, according to Central Public Health Engineering & Environment Organization (CPHEEO) and hence it is advisable to have continuous water supply.
Continuous water distribution is the most cost effective way of distributing water, both for the ULB and the customers. If the ULB has to pump the same quantity of water in 4 hours rather than in 24, it would require larger pipes. It also requires higher pumping and storage capacities. This results in higher pumping & electricity costs. If continuous water supply is not available, customers have to build their own storage i.e., tanks, sumps or other storages. Some customers will go in for alternative supplies like bore wells. It is advantageous for them to have water all the time from taps than to store. They will not have the trouble of collecting water at odd hours and waiting indefinitely for unpredictable water supply.
Yes. Sufficient water is available, only the storage, pumping and treatment facility capacity has to be increase & this would lead to continuous water supply.

Private sector involvement is basically for the expertise the private agency brings into the system in terms of best practices adopted internationally & suited for our conditions. But overall control of the project & the assets will still lie with the corporation.

In recent years, large sums of money have been spent in urban areas of the state to develop Water Supply infrastructure, but this has failed to translate into improved Water Supply service provided to customers. Therefore, an innovation of asking the person executing the project to also maintain these assets for a certain period was attempted in the demonstration zones and was successful. As against carrying out of only the civil works, the contractor also has to maintain the system for particular period thereby ensuring better service to the public.

Yes. The private Operator will be responsible under contract obligations, for delivering water under continuous supply conditions to all connected properties. The Operator will also have to comply with the performance targets set in their contract for minimum pressure at premises as well as continuity of supply. The Operator will be paid a bonus if they exceed minimum contractual performance or charged a penalty in case they do not. Reduction of losses in distribution system will make additional water available. Most importantly, since, the private agency brings in International expertise in supply of continuous water it is bound to result in significant improvement in service.
Yes. There will be an arrangement to improve customer interface and grievance redressal mechanism. Measures will be put in place to ensure that customer grievances are handled timely and effectively. Customer Service Centres will be set up in various zones which has to look into customer grievances in time bound manner & 24x7 call centres will be set up to attend to customer complaints. In the demo zones, the Operator is obliged to attend to the complaints in a time bound manner
Results in the demonstration zones show that usage of water will not go up on the introduction of continuous water supply. In fact, the usage of water in the demonstration zones is on an average 90-110 lpcd as against the prescribed standard of 135 lpcd. Metered, continuous water supply brings in a sense of conservation rather than of wastage in users.
Concessions will be provided to urban poor (defined as those residing in houses measuring up to 600 square feet, built-up area regardless of whether they live in or outside the slums in the matter of water supply).
It is proposed that public stand posts will be replaced by individual house connections. Individual connections will be provided to even poor and vulnerable sections
At present those households, who do not have individual connection (specially the poor), get lesser quantity of water. Large amount of time is wasted in collection of water. They also end up buying low quality water at high cost from private sources. The cost of collection of water is high. These problems will be overcome in 24x7 water supply . The poor households will be charged volumetrically i.e. based on what they use and the time saved can be utilized for productive purposes.
Yes. All connections will be metered. Billing will be as per meter readings.
An opportunity will be given to citizens to get illegal connections regularized. The Corporation will legitimize such connections on receiving applications, by collecting applicable fee.
The tariff will be on volumetric basis and water charges will depend on the quantity of water used by consumer. The tariff has been designed keeping in view affordability of different categories of customers
Topographic survey & condition assessment studies are being carried out and design & blue print for bulk water supply & distribution will be done.
It is proposed to implement the project in 2 phases. Phase I has been planned for the projected population of 2026 and Phase 2 is for the projected population of 2041.
Project preparation activities are in progress for implementation of Phase-I. As a part of the preparatory activities, two studies (a) Sectoral Environmental and Social Assessment (SESA) and (b) Communications & Stakeholder Intermediation Strategy (CSIS) are taken up. The Operator is, in place in Hubballi-Dharwad, conducting topographic survey, customer survey & condition assessment.SIP submitted under review
Up scaling of the continuous water supply is NOT for a short period. It has been planned keeping in mind the projected population of 2041.
  • There would be increase in the quantity of water available for distribution to the public.
  • No time is wasted waiting for water. The time can be spent on other productive activities
  • Also, due to improved water quality, there will be improvements in the health of citizens as the incidence of water borne and water related diseases will come down
  • The customers need not store water and pump it to their storage tanks. Hence, there will not be any storage, pumping and maintenance costs, ultimately resulting in savings in storage construction and electricity charges for the customers

Pre- Bid Draft

Data Room

To all the shortlisted consulting agencies of DBOE of 3 cities Kindly visit data room of each city for refrence documents of DBOT Tenders