Karnataka Urban Water Supply Modernization Project (KUWSMP)
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)|
|4||Project Management and Technical Assistance for Sector Development||130.00|
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.
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.
|SL No.||Components||INR(in Crores)|
|1||Capital Investment Program||1679.00|
|2||Technical Assistance for Sector Development||30.00|
Project Funding Arrangement
|Sl No.||Funding Agency||US $ Million||Rs. in crores||%|
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
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.
It is proposed to implement reforms based on “Urban Drinking Water and Sanitation Policy” of Government of Karnataka.
KUWSMP - Safeguards documents(Disclosed May,2020)
Frequently Asked Questions
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.
- 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