Karnataka Water and Sanitation Pooled Fund (KWSPF) is a Government of Karnataka Trust registered under the Indian Trust Act, 1882, was created in the year 2003.
The Government of Karnataka has approved KWSPF to function as ‘State Pooled Finance Entity’ for execution of Pooled Finance Development Fund (PFDF) Scheme of Government of India and for financing for the development of Infrastructural projects in the State of Karnataka.
Karnataka Urban Infrastructure Development and Finance Corporation Limited (KUIDFC) is the Fund Manager/ Asset Management Company for the issue of Bonds.
KWSPF raised Rs.100 crores Bonds in the year 2005 for the first project it took up viz., “The Greater Bangalore Water Supply and Sewerage Project (GBWASP)”.
The Unique feature of the GBWAS Project is that the project is partly financed by the collection of ‘Beneficiary Capital Contribution’ from the users which is a new precedent brought into the project under the pooled finance framework and is designed specifically to serve as a model for future municipal financings projects.
To mobilize resources for the infrastructure projects under pooled finance structure and to borrow, raise monies or loans or receive grants or accept contributions;
City Corporations selected:
• To give more preference to providing Drinking Water facilities
• Initiated in 2011-12
• Benefit: Basic amenity of providing drinking water
• Projects investment of Rs.700 crore – Government Grants Rs.350 crore and Bank Loan raised by KWSPF Trust Rs. 350 crore.
• Grants released by GoK so far: Rs.350 crore crore.
• Raised Rs.350 crore Bank loans and released Rs.147-65 crore as on 31.03.2016 as per DMA’s request.
• Out of 1429 projects,1270 projects were completed & remaining are under progress.
• The DMA will be the overall coordinating Agency
• Uniquely financially structured:
• Securitisation of SFC Grants
• Short fall undertaking from GoK
• Initially rated by ICRA A+ (SO) for Bank loan of Rs.250 crores in the first tranche and for 2nd tranche bank loan of Rs.250 crore INDIA RATINGS has given rating of AA-(SO) and both rating are periodically revalidated.
• Chief Minister’s Small and Medium Development programme under phase–1:
Providing basic infrastructure (roads, water supply, Sewerage drainage) in 211 Small & Medium ULBs in Karnataka.
Chief Minister’s Small and Medium Development programme under phase–2:
• Providing basic infrastructure (Cost allocation 80% for roads and balance 20% for Sewarage) in 211 Small & Medium ULBs in Karnataka
• Initiated in 2012-13
• Benefit: Promote congenial urban environment in several Small & Medium Towns to spur economic growth.
• Projects investment of Rs. 2010 crore – Government Grants Rs.1010 crore and Bank Loan to be raised by KWSPF Trust Rs.1000 crore
• Grants released by Gok so far: Rs.1000 crore
• Raised Rs.500 crore Bank loans for projects up to 31/3/2016 and released in Rs. 317.95 crore loans.
• Out of 2050 projects, 1264 projects completed & remaining works are under progress.
• The DMA is the overall coordination agency
• Uniquely financially structured :
• Securitization of SFC Grants
• Short fall undertaking from GoK for Rs.250 crore Bank Loan in the first tranche
• Initially rated by ICRA as A+ (SO) and periodically revalidated periodically and for Rs.250 crore of the 2nd tranche it is rated by Indian Ratings as AA- (SO).