[2017]
Project Information Memorandum
Visakhapatnam Smart City July 2017
PROJECT INFORMATION MEMORANDUM
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage on Design – Build – Finance – Operate – Transfer Basis in Visakhapatnam Smart City
July 2017 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
TABLE OF CONTENTS 1.0 PROJECT BACKGROUND ...... 2
1.1. ABOUT VISHAKHAPATNAM ...... 2 1.2 GREATER VISAKHAPATNAM MUNICIPAL CORPORATION (GVMC) ...... 2 1.3 VISAKHAPATNAM SMART CITY ...... 2 1.4 THE GREATER VISAKHAPATNAM SMART CITY CORPORATION LIMITED ...... 3 1.5 THE PROJECT ...... 3 2.0 EXISTING SEWERAGE FACILITIES IN VISAKHAPATNAM ...... 7
2.1 SEWERAGE ZONES ...... 7 2.2 SEWERAGE NETWORK IN ABD ...... 7 2.3 ASSOCIATED SEWERAGE PUMPING INFRASTRUCTURE ...... 8 2.4 EXISTING CONDITION OF SEWERAGE TREATMENT NEAR ABD ...... 9 3.0 THE PROPOSAL ...... 18
3.1 NEW SEWERAGE SYSTEM IN JALARIPETA & DESIGN FOR PARTS OF MISSING LINKS IN ABD REQUIRING REHABILITATION:19 3.2 REFURBISHMENT OF PUMPING STATIONS AND RISING MAIN TO STP ...... 24 3.3 PROPOSED INTERVENTIONS AT THE 38MLD CAPACITY STP NEAR LAKSHMI TALKIES ...... 24 3.4 REUSE OF TSE IN INDUSTRIES ...... 26 4.0 DEMAND FOR WATER, BY BULK BUYERS ...... 27
4.1 DEMAND & SUPPLY SCENARIO FOR WATER ...... 27 4.2 DEMAND AND SUPPLY SCENARIO FOR TREATED SEWERAGE EFFLUENT ...... 28 4.3 EXPECTED CHARACTERISTICS OF THE TREATED SEWERAGE EFFLUENT ...... 28 5.0 PROJECT COST ...... 29
5.1 CAPITAL COSTS ...... 29 5.2 PROJECT COST ...... 31 6.0 O&M EXPENSES ...... 33
6.1 O&M EXPENSES FOR OPERATING THE STP ...... 33 6.2 O&M EXPENSES FOR OTHER FACILITIES ...... 35 7.0 FINANCIAL FEASIBILITY OF THE PROJECT & PPP STRUCTURE ...... 36
7.1 REVENUES ...... 36 7.2 O&M EXPENSES ...... 36 7.3 DEBT ...... 36 7.4 DEPRECIATION ...... 37 7.5 FINANCIAL VIABILITY OF THE PROJECT ...... 37 7.6 PPP STRUCTURE FOR THE PROJECT ...... 38 APPENDIX – II: FINANCIAL STATEMENTS ...... 48
ANNEXURE – I: PROFIT & LOSS STATEMENT ...... 48 ANNEXURE – II: BALANCE SHEET ...... 49 ANNEXURE – III: CASH FLOW STATEMENT & VALUATION ...... 50
Project Information Memorandum 1 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
1.0 PROJECT BACKGROUND The Greater Visakhapatnam Smart City Corporation Limited (GVSCCL), is a Special Purpose Vehicle (SPV) created for the sole purpose of implementation of the projects conceptualized for the Visakhapatnam Smart City, and in accordance with this purpose GVSCCL intends to implement a project involving Retrofitting of Existing Sewerage System in the Area Based Development (ABD) of the city and Reuse of Treated Sewerage. The project is proposed to be undertaken in the Public Private Partnership (PPP) mode of procurement.
1.1. About Vishakhapatnam Vishakhapatnam, popularly known as Vizag, is a port city and is Andhra Pradesh’s largest, both in terms of population and economy. It is also the 3rd largest city on east coast of India, after Chennai and Kolkata. Vizag is often called "The Jewel of the East Coast". The city is nestled among the hills of the Eastern Ghats and faces the Bay of Bengal. It has the only natural harbour on the east coast of the country. It is a popular tourist destination and is known for its lush pristine beaches, gentle hillocks and thriving flora and fauna. Visakhapatnam is the administrative capital of the district of the same name (Visakhapatnam district) in Andhra Pradesh. The city has the headquarters of the Eastern Naval Command of Indian Navy. Visakhapatnam Port is one of the largest ports in India is also its fifth busiest sea port of the country. 1.2 Greater Visakhapatnam Municipal Corporation (GVMC) Visakhapatnam is one of the earliest municipalities of Andhra Pradesh. The Vizag (Visakhapatnam) Municipality was set up as early as in 1858, in order to full fill the basic infrastructural needs of the people of the city. The Vizag Municipality grew in its Municipal limits due to incorporation of new areas and was converted to a Municipal Corporation in the year 1979. The areas of the erstwhile Visakhapatnam Municipal Corporation along with the Gajuwaka Municipality and 32 villages (includes few Panchayats) were converged to form the Greater Visakhapatnam Municipal Corporation (GVMC) through a Government of Andhra Pradesh Order on November 21, 2005. GVMC’s current limits are spread across 625 sq.km and includes 72 wards, Anakapalle and Bheemili. As per 2011 census, the city’s population is approximately 1.9 million. 1.3 Visakhapatnam Smart City Through the Smart Cities Challenge, the Government of India took the first step towards realizing its vision of building 100 smart cities in the country. Visakhapatnam emerged as a light house city (one of the top 20 cities) and was ranked 8th in a nationwide competition between 100 cities. The city is now working on implementing the projects that were proposed in its Smart City Proposal (SCP), including retrofitting a designated area within the city known as the Area Based Development (ABD) that is 1,650 acres in area and has a population of around 80,000.
Project Information Memorandum 2 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
1.4 The Greater Visakhapatnam Smart City Corporation Limited The Greater Visakhapatnam Smart City Corporation Limited (GVSCCL) – a Special Purpose Vehicle (SPV) was incorporated on 11th of March 2016, with the sole purpose of implementing the projects proposed under the SCP of Visakhapatnam. 1.5 The Project GVSCCL, under the implementation of the Smart City Mission projects in Visakhapatnam has mooted the project of Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage through Public-Private Partnership on Design, Build, Finance, Operate and Transfer basis. The bid documents prepared for the project are available at www.gvmc.gov.in as well as on www.apeprocurement.gov.in 1.5.1 Brief Scope of Work The scope of work for the selected developer for the project will broadly includes upgradation of the existing sewerage pumping infrastructure and the management, operation & maintenance thereof; laying of rising main to pump sewerage from the pumping stations to the sewerage treatment plant site and the management, operation & maintenance thereof; upgradation of the sewerage treatment plant to 70 MLD capacity and the management, operation & maintenance thereof; laying of rising main to pump treated sewerage effluent from the sewerage treatment plant to industries for reuse and the management, operation & maintenance thereof; laying of missing links in the sewerage network in Area Based Development in Visakhapatnam; and Provision of sewerage system in Jalaripeta in Visakhapatnam. 1.5.2 Components of the Project The project is envisaged to comprise of the following major components Upgradation of the existing 38 MLD capacity sewerage treatment plant (STP) near Lakshmi Talkies in Visakhapatnam, to 70 MLD capacity.
Upgradation of the technology to treat the sewerage such that the treated sewerage effluent meets the water quality requirements of industries.
Upgradation of Sewerage Pumping System, including
. laying of 3.2 km of rising main of 600mm diameter, from Shanti Ashramam to Pandurangapuram, in Visakhapatnam
. laying of 4.8 km of rising main of 1000mm diameter, from Pandurangapuram to STP near Lakshmi Talkies, in Visakhapatnam
Laying of 6.7 km rising main of 1000mm diameter, from the STP near Lakshmi Talkies to industries near port area in Visakhapatnam
Laying of 400mm, 500mm and 600mm diameters sewerage mains from Durgalamma temple to the existing 38 MLD STP.
Laying of 7.1 km sewerage network in Jalaripeta, in Visakhapatnam
Laying of missing links amounting to 8.8 km in the rest of ABD of Visakhapatnam
Project Information Memorandum 3 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
1.5.3 Envisaged Project Development Structure The project is envisaged to be implemented in two phases. During Phase – I, the following activities are planned: Building a 25 MLD capacity STP to handle the current inflow of ~22 MLD to the existing STP near Lakshmi Talkies.
Construction of 6.7 km rising main from the above mentioned STP to industries for supply of treated sewerage effluent (TSE) for the purpose of reuse in the industrial processes. During the Phase – II, the following activities are planned: Upgrading the existing 38 MLD capacity sewerage treatment facility near Lakshmi Talkies to a final capacity of 70 MLD (including the 25 MLD capacity added during Phase – I).
Upgradation of Sewerage Pumping System, including
. laying of 3.2 km of rising main of 600mm diameter, from Shanti Ashramam to Pandurangapuram, in Visakhapatnam
. laying of 4.8 km of rising main of 1000mm diameter, from Pandurangapuram to STP near Lakshmi Talkies, in Visakhapatnam
Laying of 6.7 km rising main of 1000mm diameter, from the STP near Lakshmi Talkies to industries near port area in Visakhapatnam
Laying of 400mm, 500mm and 600mm diameters sewerage mains from Durgalamma temple to the existing 38 MLD STP.
Laying of 7.1 km sewerage network in Jalaripeta, in Visakhapatnam
Laying of missing links amounting to 8.8 km in the rest of ABD of Visakhapatnam 1.5.4 PPP Structure for the Project The project is planned to be undertaken under the PPP mode of procurement, at an estimated project cost of Rs.390 crores and under the Design-Build-Finance-Operate- Transfer (DBFOT) model, with a concession period of 20 years that includes the construction period of the project. 1.5.5 Project Implementation The implementation Schedule envisaged for Phase I is as follows Tendering and on boarding of the concessionaire is expected to be completed by the end of first half year of the financial year 2017-18.
Financial closure for the project is expected to be achieved by the end of second half year of the financial year 2017-18.
All conditions precedent to the concession is expected to be completed by the end of first half year of the financial year 2018-19.
Construction of the components planned under Phase I is expected to be completed by the end of first half year of financial year 2019-20, such that the concessionaire
Project Information Memorandum 4 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
can begin supplying the sewerage effluent treated by the 25MLD STP from the beginning of the second half year of the financial year 2019-20. The implementation of Phase II of the project is envisaged in the following manner: Immediately after completion of Phase I by the end of first half year of the financial year 2019-20, construction of all the components planned under Phase II are envisaged to be taken up and completed by the end of first half year of the financial year 2020-21.
All the components of Phase II are expected to be operational during the second half year of the financial year 2020-21.
Project Information Memorandum 5 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Figure 1-1: Implementation Schedule for the Project
Bid Process Operations of project Operations of Achieving Management & Financial Construction of project components of Phase I & all project Conditions On-boarding of Closure components in Phase I Construction of project components Precedent Concessionaire components in Phase II (Phase I & II)
Project Information Memorandum 6 Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
2.0 EXISTING SEWERAGE FACILITIES IN VISAKHAPATNAM 2.1 Sewerage Zones The sewerage system is divided into 20 blocks (excluding Anakapalle and Bheemili) shown in Figure 2-1. After the completion of 4th phase a total of 14 sewerage blocks would be covered under UGD network. Figure 2-1: UGD Blocks in GVMC
2.2 Sewerage Network in ABD ABD Area is around 7 sq. km with population of around 80,000 and 70km of road length .The existing sewer network in the area is 44 km and the existing sewer manholes shall be 2207.The ABD area consists of 17, 18, 19 and 20wards. The topography in project area is sloping towards Beach road at South - East direction and the elevation difference in the ABD area varies from 4.5 m to 60m. The Existing Sewer dia varies from 160 mm to 1000 mm and the pipe material shall be stoneware, HDPE and RCC NP3.The existing condition of the sewer net work in the ABD area is a barrier to optimum development and growth of the area. The site is not within (or) adjacent to environmentally sensitive areas such as cultural heritage, protected area, wetland and buffer zones. The Existing sewage network in the ABD area ,which consists of three categories of sewers namely primary ,secondary and trunk sewers was designed. The primary sewers which will collect sewage from residential areas were laid by the access roads, the secondary sewers which will collect sewage from the primary sewers were laid by the minor and major roads, while the trunk sewers which will collect sewage from the secondary sewers and sewage will be transported to the pumping stations further pumping to the STP. At present 70 percent of the house connections connected to the sewerage system and the remaining 30percent connected to the existing storm water network further discharged into
Project Information Memorandum 7
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City the Sea at South -East. Majority of the sewage flow shall be connected to the 9 MLD Pandurangapuram pumping station within the ABD Area and the part of the network shall be connected to the 16 MLD Shanti Ashram pumping station at outside the ABD Area. Ultimately all the pumping stations will connect to the 25 MLD STP at Appughar, which is outside the ABD area. 2.2.1 Missing Links in the Sewerage Network in the rest of ABD A detail study has been carried out and identified around 8 km of missing links identified within the ABD area. The Existing Sewer network and Missing Links in ABD is illustrated in Appendix I 2.3 Associated Sewerage Pumping Infrastructure There are two sewage pumping stations associated to the catchment which ultimately pumping the sewage to 25 MLD STP at Apughar. 2.3.1 Existing Condition in the 16MLD Capacity Pumping Station at Shanti Ashramam The Pumping Station at Shanti ashram was made operational in the year of 1998 with layout Covering Area Approx.2,500 sq.m. The pumping caters to wards 7,8,9,10,11(p),14(p)and 16(p) as catchment. The Existing pumping station conditional assessment shown below: Table 2-2: Existing Condition Assessment at 16MLD Pumping Station Sr. Unit Present Remarks Size/capacity Quantity No Description Condition OK General Cleaning 1 Inlet Chamber 1.5mx3.0mx4.3m 1 Required Mechanical Ok General Cleaning 2 - 1 Coarse Screen Required OK General Cleaning 3 Grit chamber 36sq m x 4.7m 1 Required Wet well pump OK General Cleaning 4 61sq m x 5.4m 1 House Required 1600cum/hr-(1W-1S): 2 OK Replacement of Wet well Nos pumps required 5 4 pumps 600cum/hr --(1W-1S): 2 Nos PLC & Panel OK 6 - 1 Boards OK General Cleaning 7 Admin building 6.0m x3.8mx 3.5m 1 Required
The 16 MLD Pumping Station Layouts is Illustrated in Appendix I 2.3.2 Existing Condition in the 9MLD Capacity Pumping Station at Pandurangapuram The Pumping Station at pandurangapuram was made operational in the year of 1998-99 and layout Covering Area Approx 1200 sq. The pumping station will have covered wards 16(p) 16(p), 17, 11(p), 18) and19 (p) under the catchment. The pumping station conditional assessment shown below:
Project Information Memorandum 8
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Table 2-3: Existing Condition Assessment at 9MLD Pumping Station Unit Present Sr.No Size/capacity Quantity Remarks Description Condition OK General Cleaning 1 Inlet Chamber 3.3mx3.4mx5.4m 1 Required Collection Ok General Cleaning 2 4.0mx1.5 mx5.0m 1 Chamber Required OK General Cleaning 4 Grit chamber 11.5 m x5.5 m x 5.5m 1 Required Wet well pump OK General Cleaning 5 13.0m Ø x5.4 m 1 House Required Wet well 600cum/hr-2 Nos OK Replacement of 6 4 pumps and40HP -2 Nos pumps required PLC &Panel OK 8 - 1 Boards OK General Cleaning 11 Admin building 20.0m x7.0mx 3.5m 1 Required
The 9 MLD Pumping Station Layouts is Illustrated in Appendix I 2.4 Existing Condition of Sewerage Treatment near ABD Presently, two Sewerage Treatment Plants (STPs) exist near the ABD (Area Based Development) of Visakhapatnam, namely, the 25 MLD STP at Appu Ghar and 38 MLD STP near Lakshmi Talkies. Both plants are secondary treatment facilities having Extended Aeration process. Two pumping stations pump raw sewerage into the 25MLD STP. One pump is of 9 MLD capacity, located at Pandurangapuram and the other pump is of 38 MLD capacity. Figure below illustrates the existing condition.
Project Information Memorandum 9
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Figure 2-2: Existing Condition
Both the plants are currently under-utilized in the sense that only about 19-20 MLD of sewerage is being treated in each of them. With the existing treatment technology, the quality of water required by industries for use in their processes, is not being met the treated sewerage effluent. As a result, the treated sewerage effluent is let out into the sea. 2.4.1 Existing Condition of 25 MLD Capacity STP at Appu Ghar The commencement of STP at Appughar in year 2001 covering area 6 Acre. having sewer line networks of length 162 kms and HSC’s of around 44000. Treatment plant is basically a Conventional ASP based Extended Aeration Plant. The Treated effluents from STP will be discharged through the Sea out fall of 600 mm dia and 500 m length Approx. The sewage sludge from the site shall be transported periodically to the dumping yard at kapulapadu, 15 km away from the STP. The Existing Plant details and Technical information of STP are discussed below Table 2-4: Existing Details of 25MLD STP at Appughar Installed Capacity Location Wards Covered Current Utilization MLD No’s MLD % 25 Apughar 7,8,9,10,11P,14P,16P,17,18,19 21 84
Project Information Memorandum 10
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Table 2-5: Sewerage Characteristics
BOD5 150 to 300 mg/lit COD 300 to 500 mg/lit TSS 450 mg/lit Ph 6.5 – 8.5 Total alkalinity as CaCO3 300 - 400 mg/L Total Kjeldahl nitrogen 45-50 mg/L Ammonical Nitrogen 35-40 Mg/l Total Nitrogen as N Total Phosphorus 5 – 7 mg/l TDS ^600-1000
Table 2-6: Exiting Units and Condition at 25MLD STP at Appughar Existing Sr.No Description Size/capacity Quantity Condition Raw Sewage Collection 1 12.0m Diax1.6m 1 OK Sump 2 Raw Sewage main 1000 mm dia 1 OK Mechanical screen chamber 3 1.0 m x 6.0 m 1.0m swd 1 OK near detritors 4 Mechanical detritor Absent 2 OK 24.60 m x 24.60 m x 3.9 5 Aeration tank 8 OK m swd 6 Secondary clarifier 46.0mØ x 1.6mSWD 1 OK Sludge Sump cum pump 7 8.0m x 3.0m x24.0M swd 1 OK house 8 Thickener Absent 1 OK 9 Sludge dewatering system Absent 1 OK 10 Clarified water Tank Absent 1 OK 11 Chlorine contact chamber 15.0mx10.0mx2.25m 1 OK 12 Sludge Drying Beds 40.0mx15.0m 8 OK 13 Chlorine Tonner Room 1 OK 14 Pipe between AST to Clarifier lot OK 13 Return sludge pumps 525m3/hr @ 10MWC 3 OK Sludge carrying pipe from 14 1 OK clarifier to sump 15 Check valves (Double flange) lot OK 16 Electro Magnetic flow meter 1 OK 17 Chlorine booster pump 1 OK
Table 2-7: TSE Characteristics BOD 60 mg/lit COD 80 mg/lit TSS 100 mg/lit TDS 950 mg/lit
Project Information Memorandum 11
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
With reference to daily effluent quality Report analysis, the parameters such as BOD, COD, and TSS are not compliance with new guide lines of Central Pollution Control and CPHEEO Sewerage manual.
Project Information Memorandum 12
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Figure 2-3: Site Photographs
A B
C D
E F
(A) Inlet Sump (B) Mechanical Screen (C & D) Aeration Tanks (E) Clarifier (F) Chlorine Contact Chamber
Project Information Memorandum 13
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
2.4.2 Existing Condition of 38 MLD Capacity STP near Lakshmi Talkies The commencement of STP at Old city in year 2009 covering area 13.1 Acre. Treatment plant is basically a Conventional ASP based Extended Aeration Plant. The Treated effluents from STP will be discharged through Lavender Canal further Connected to Sea. The sewage sludge connected to the sludge dewatering system is treated at site. The Existing Plant details and Technical information of STP are discussed below Table 2-8: Technical Information of 38MLD STP Installed Capacity Location Wards Covered Current Utilization MLD No’s MLD % 38 Lakshmi Talkies 11p,14p16p,19p, 20, 21.5 57 21, 22, 24, 25, 26, 27, 28, 29
Table 2-9: Sewerage Characteristics
BOD5 150 to 300 mg/lit COD 300 to 500 mg/lit TSS 450 mg/lit Ph 6.5 – 8.5 Total alkalinity as CaCO3 300 - 400 mg/L Total Kjeldahl nitrogen 45-50 mg/L Ammonical Nitrogen 35-40 Mg/l Total Nitrogen as N Total Phosphorus 5 – 7 mg/l TDS ^600-1000
Table 2-10: Exiting Units and Condition Sr.No DESCRIPTION Size/capacity Quantity Existing Condition Raw Sewage Collection OK 1 4.0mx5.0mx3.5m 1 Sump Manual screens in Working In Condition 2 1 collection tank Mechanical screen 1.0 m x 6.0 m x 1 .0m One working one 3 2 chamber near detritors swd under repair Requires over hauling for gear box and rak 11.9 m x11.9 m x 0.7 4 Mechanical detritor 2 arm should be swd replaced with new scrapper blades Uneven distribution of 60.0 m x 42.5 m x 5.0 m the Grid and diffusers 5 Aeration tank 2 swd are damaged. Require to replace All diffusers. Requires over hauling for gear box and rak 6 Secondary clarifier 40.0mØ x 3.0mSWD 2 arm should be replaced with new scrapper blades.
Project Information Memorandum 14
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Sr.No DESCRIPTION Size/capacity Quantity Existing Condition Not in working 7 Sludge pump 5.0m x 4.0m x2.0M swd 2 condition needs to be replaced Requires over hauling for gear box and rak 8 Thickener 12.0mØ x4.0m swd 1 arm should be replaced with new scrapper blades. 9 Centrifuge building 8.0mx6.0m 1 OK 10 Clarified water Tank 18.4mx22.0mx2.35m 1 OK Chlorine contact OK 11 22.9mx22.1mx1.9m 1 chamber 2 working at low 5500 m3/hr @ 5MWC 12 Air blowers 6 efficiency and 4 not (3W – 3S) working. 2 working at low 5500 m3/hr @ 10MWC 13 Return sludge pumps 4 efficiency and 2 not (2w – 2s) working. 14 Organic Return pump 0.5 HP pumps (1w – 1s) 2 To be replaced 15 Agitators in sludge sump 7.5HP (1w – 1s) 2 To be replaced 16 Centrifuge feed pump 3.0HP (1w – 1s) 2 To be replaced Working in low 17 Centrifuge 25 HP 1 efficiency 18 Agitators in Dosing Tank 1 HP To be replaced 2 To be replaced 19 Polymer dosing pump 0.5 HP 2 OK 20 Sludge sump 5.0mx3.8m 1 OK Sewage pumps at PS0 40HP-4 Nos, 35HP-2 21 pumping station at STP Nos,30HP-4 Nos and Needs to be replaced Area 20HP-2 nos One is not working Electro-Magnetic flow 22 2 and other needs to be meter calibrated 23 Chlorine booster pump 12.5HP 1 OK 24 Panel Boards 1 To be replaced 25 Plant lightning lot Require repairs 26 DG set 1000 KVA 1 Under Repair 27 Lab and MCC Room 8.0mx6.0m 1 OK 28 Transformer yard - 1 OK 29 Scada - - No Scada System
Table 2-11: TSE Characteristics BOD 50 to 60 mg/lit COD 100 mg/lit TSS 80 mg/lit TDS 1000 mg/lit
Project Information Memorandum 15
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
With reference to daily effluent quality Report analysis, the parameters such as BOD, COD, and TSS are not compliance with new guide lines of Central Pollution Control and CPHEEO sewerage manual The layout drawing for Existing 38 MLD STP is provided in Appendix I.
Project Information Memorandum 16
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Figure 2-4: Site Photographs
A B
C D
E F
(A) Inlet Sump (B) Inlet Chamber (C) Gritting Chamber (D) Aeration Tank (E) Clarifier (F) Sludge Sump
Project Information Memorandum 17
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
3.0 THE PROPOSAL In order to achieve a treated sewerage effluent standard of BOD*<10 and SS#<10 and thereby meet the KPI of Smart City, The vision to achieve zero effluent discharge from the Area Based Development of the Visakhapatnam Smart City, and Re-use of treated sewerage effluent by industries in Visakhapatnam, in their processes, The proposal is as below: . Augment the STP near Poorna Market (38 MLD) with the capacity of the STP at Appu Ghar (25 MLD) and improve the overall capacity to 70 MLD. . Leverage on the convenient location of the existing 38 MLD STP to meet the demand for water by industries. . Introduction of latest treatment technology to meet the effluent standards set by the CPCB (Central Pollution Control Board) Figure 3-1: Proposal
25 MLD Capacity STP at Appu Ghar
16 MLD Capacity Pumping Station at Sri Shanti Ashramam
09 MLD Capacity Pumping Station at Pandurangapuram
63 MLD (38+25) Capacity STP near Poorna Market
The proposal envisages usage of the existing 16MLD and 9 MLD pumps at Shanti Ashramam and Pandurangapuram respectively, to pump sewerage in the direction of the STP near Laxmi Talkies i.e. in the reverse direction to the existing direction. Figure below illustrates the new proposal. The benefits of the proposal are as follows: The proposal is in line with Sustainable City Positioning of Visakhapatnam under Smart City Mission Two currently under-utilized plants would be clubbed together under one STP located close to Industrial Buyers
Project Information Memorandum 18
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
The proposal aims to save consumption of around 40 MLD potable water, that may be used for providing potable water to citizens. At 135LPCD, this saving can cater to approximately 3 Lakh population. The proposal aims to achieve “zero” discharge of effluent into the Sea The proposal has the potential to increase tourism in Visakhapatnam if development of tourist attractions in the Appu Ghar area are undertaken. The proposal is detailed out below. 3.1 New Sewerage System in Jalaripeta & design for parts of Missing links in ABD requiring Rehabilitation: 3.1.1 Sewage Generation The residential sewerage system is estimated considering a return factor of 80%, i.e., 80% of the total net water supplied coming out as sewerage/wastewater. The tentative sewage generation is 4.0MLD for Jalaripeta and 2.5MLD for ABD area where new network is to be designed and constructed. 3.1.2 Rate of Infiltration Infiltration into the sewerage system occurs through defective sewers, manholes, etc. The rate of infiltration into sewers also depends upon the ground water table and permeability of the surrounding soil. Though strict quality control and good workmanship would ensure minimum infiltration, however as the system condition deteriorates with age, the possibility of infiltration increases. For the said project, the hydraulic design of sewers, an allowance for infiltration for the project area should be considered as 5000 litre/km/day as per Part-A of CPHEEO Manual. However in no case the infiltration shall be more than 10% of the total sewage flow per day for Sector-A. 3.1.3 Design Period Sewerage projects are designed to meet the future requirement of a stipulated design period. This period, with regard to certain components of the project, depend on their useful life or the facility for carrying out extensions whenever required, so that expenditure far ahead of its utilization is avoided and capital expenditure incurred on the project does not remain idle due to underutilization of these facilities. For the purpose of designing such systems, a 30-year project period is recommended. The design period normally considered for various components is as under: Sewers and it’s appurtenances: 30 years Pumping Mains: 30 years Mechanical and Electrical Components: 15 years
3.1.4 Peak Factor As far as the design of sewerage network is concerned, it is the hourly variation in consumption of water that matters. The fluctuations in consumption are accounted for, by considering the peak rate of consumption as rate of flow in the design of sewerage network. The flow in sewers varies considerably from hour to hour and also seasonally, but for the
Project Information Memorandum 19
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City purposes of hydraulic design it is the estimated peak flow that is adopted. The peak factor or the ratio of maximum to average flows, depend upon contributory population and the following values shall be adopted as suggested in manual and as tabulated below: Table 3-1: Peak Factors for Contributory Population for Per Capita Sewage Flow Contributory Population Peak Factor For population less than 20,000 3.00 For population range of 20,000 to 50,000 2.50 For population range of 50,000 to 750,000 2.25 For population above 750,000 2.00
3.1.5 Sewerage Network and Manholes The sewerage network will collect the sewerage from plots and convey it to the Sewage Treatment Plant (STP) located within the Project area. The sewer network shall be designed in such a fashion so as to minimize any pumping requirement but in unavoidable circumstances Intermediate sewage pumping stations may be provided at places, if required. Contractor has to design the complete sewerage network system for the Sector-A Project area. The implementation limit of this network will be from the Property connection point inside the plot boundaries to the inlet points of the intermediate sewage pumping station, if any and/or directly to STP premises by gravity system to the best possible extent. The design and construction of property sewerage chamber for connection is in scope of the present contract. The scope for this item includes designing of the gravity sewer system, providing, supplying, lowering, laying and jointing of sewer including excavation, backfilling, and bedding of pipes for domestic sewage collection. The scope of services includes supply of water for hydraulic testing and carrying out hydraulic test for network and manholes. The layout drawing for Sewerage network system is provided in Appendix I The tentative details of the sewerage network system are as follows: Table 3-2 – Tentative Details of Residential/Domestic Sewerage Network S. No. Description Value 1 Sewer Pipe Diameter As per design but not less than 160 mm dia OD HDPE PN6, PE 100 2 Total Length of Sewerage network 7065m in Jalaripeta area and 8617m in the ABD Area.
The new sewer network Layout for Jalaripet is Illustrated in Appendix I The scope for Manholes includes designing and constructing Sewer manholes, drop manholes and scrapper manholes as per the type design in Construction of Circular manhole chambers constructed with Cement Concrete Bricks (Autoclaved as mentioned in CSSR Bldgs 2016-17) as per Drawings necessary coping in R.C.C. M-20 fixing PVC encapsulated D.I / C.I Steps or Lugs, providing and fixing SFRC manhole frames and covers over manholes etc. complete, including epoxy paint to be applied to inner surface of RCC manholes, including all civil Works like excavation, backfilling, RCC Works etc.
Project Information Memorandum 20
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
3.1.6 House Sewer Connections House sewers should be laid up to Mainline on the road in the Project area. The Sewer details are as defined below: Table 3-3 – Tentative Details of Property Connections S. No. Description Value 1 Total Number of House sewer 2000 in the Jalaripeta area and 1017in connections the ABD area. 2. Connection pipe OD Not less than 110 mm OD however shall be checked with size of plot and flow.
3.1.7 Hydraulics of Sewage Network The Manning’s Formula for Gravity Flow will be used to design the sewerage network; The Manning’s Formula for circular conduits is expressed as under: V = [(1/n)] x [R2/3 S1/2]
For Circular Conduits,
V = (1/n) (3.968 x 10-3)D2/3 S1/2
And,
Q = (1/n) (3.118 x 10-6)D2.67S1/2
Where,
Q : Discharge in l/s
S : Slope of hydraulic gradient
D : Internal diameter of pipe line in mm
R : Hydraulic radius in m
V : Velocity in m/s n : Manning’s coefficient of roughness
3.1.8 Coefficient of Roughness The coefficient of roughness is based on type of sewer material proposed for the sewage conveyance. The coefficient of roughness “n” for HDPE pipe as indicated in CPHEEO sewerage manual, 2013 as 0.010. However, it shall be considered as 0.011 for design purpose considering 30yrs design period. Similarly, the coefficient of roughness “n” for RCC & DI pipes is considered as 0.011 as indicated in CPHEEO sewerage manual, 2013. 3.1.9 Design Capacity of Sewers Sewers shall be designed to carry estimated peak flows generated in the design year and would be designed 80% full at ultimate peak flow. This is to ensure proper ventilation and prevent septicity of sewage. No sewer pipe shall run at any time more than 80% full.
Project Information Memorandum 21
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
3.1.10 Minimum and Maximum Velocity in Sewer Considering typical values of particle size and specific gravity, minimum partial flow velocities is considered at present peak flows and at design peak flows. The maximum velocity shall be considered in order to prevent scouring. A velocity of 0.6 m/s would be required to transport sand particles of 0.09 mm size with a specific gravity of 2.65. Thus the sewers are designed on the assumption that although silting might occur at minimum flow, it would be flushed out during peak flows. Erosion of sewers is caused by sand and other gritty material in the sewer and also by excessive velocity. Velocity in a sewer is recommended not to exceed 3 m/s and same is in table below: Table 3-4: Maximum and Minimum Velocity in Sewer S. No. Criteria Velocity (m/s) 1 Minimum velocity at initial peak flow 0.6 2 Minimum velocity at ultimate peak flow 0.8 3 Maximum velocity 3.0
3.1.11 Slope in Sewerage System Minimum slopes that will be considered for design of collection network are as in table below: Table 3-5: Minimum Slopes S. No. Sewer Size (Mm) Minimum Slope (1 In) 1 150 170 2 200 250 3 250 360 4 300 450 5 375 670 6 450 830 7 >=525 1000
3.1.12 Bedding As per IS 7634 (Part 2) : 2012 clause no. 6.2, Polyethylene pipe requires no special bed preparation for laying the pipe underground, except that there shall be no sharp objects around the pipe. However, while laying in rocky areas suitable sand bedding should be provided around the pipe and compacted. Be noted all HDPE pipes shall be provided with minimum 6 inches of uniform river natural graded sand bedding free from any foreign /sharp etc. material which may damage the outer surface of the HDPE pipe. The HDPE bedding specification shall be referred from Annexure B IV above. The type of bedding to be used depends on the bedding factor as per Part A of CPHEEO Manual, Nov 2013 & mentioned in subsequent table: 3.1.13 Manhole size, depth and type The channels in manholes at junctions and bends shall be smooth with gradual transitions to avoid turbulence and deposition of solids. Manholes are usually constructed directly over the line of the sewer. They are circular, rectangular or square in shape. Manholes should be of
Project Information Memorandum 22
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City such size that will allow necessary cleaning and inspection. As per IS-4111: 1986 “Circular type manholes are much stronger than rectangular and arch type manholes and thus these are favored over rectangular as well as arch type manholes”. Therefore circular manholes shall be proposed on all sewer lines for all depths starting from 0.9m. Diameter of manhole varies with change in depth of manhole. Poly elastomeric MS flats footrest shall be suggested for entry into manholes. Table 3-6: Manhole Sizing Range of Depths, m Maximum Dia Up to Manhole Size above 0.90 m and up to 1.65 m 500 mm 900 mm dia. Above 1.65 m and up to 2.30 m 600 mm 1200 mm dia. Above 2.30 m and up to 9.0 m 900 mm 1500 mm dia. Above 9.0 m and up to 14.0 m 1200 mm 1800 mm dia.
3.1.14 Spacing of Manholes As per IS – 4111: 1986, For inspection, cleaning and testing of sewers, manholes should be built at every change of alignment, gradient or diameter, at the head of all sewers and branches and at every junction. This shall be kept in mind while designing the system. The sewer shall be in a straight line between two manholes. Maximum distance between service manholes should not be more than 30 m. Manhole spacing is limited to 30m for sewers having service connections. For Outfall sewers with no service connections the spacing can be increased, with prior approval of Employers Engineer. Table 3-7: Manhole Spacing Sewer size Maximum Manhole spacing Up to 600mm up to 60 m 600mm to 900mm 90 m 900mm to 1200mm 120 m 1200mm to 1500mm 150 m
3.1.15 Cover Frame As per IS-4111: 1986, the size of manhole covers should be such that there should be clear opening of not less than 560 mm diameter for manholes exceeding 0.9 m depth. Manhole cover and frame will be SFRC (Steel Fiber Reinforced Concrete) conforming to the IS 12592. Table 3-8: Manhole Cover Details as per IS 12592 Manhole Type Load withstanding capacity Suitable Locations L.D (Light Duty) 2.50 MT Footpaths,Two wheelers M.D (Medium Duty) 10.00 MT Light four wheelers H.D (Heavy Duty) 20.00 MT Heavy vehicles E.H.D (Extra Heavy Duty) 35.00 MT Heavy traffic roads
Project Information Memorandum 23
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
3.2 Refurbishment of pumping stations and rising main to STP The two pumping stations one at Shanti ashram which was operational in the year of 1998 with approx coverage area of 2500 Sq.m. catering to wards 7,8,9,10,11(p),14(p)and 16(p) as catchment and the other one at pandurangapuram which was operational in the year of 1998-99 with approx coverage area of 1200 Sq.m. catering wards 16(p) 16(p),17,11(p),18)and19(p) as catchment are pumping sewage to the existing 25 MLD STP at Apughar, which is now proposed to divert sewage to existing 38 MLD STP site near Lakhmi Talkies. The pumps are to be replaced to pump the sewage to existing STP site. Existing civil structures are retrofitted to accommodate the new pumps to be installed for diversion of sewage. The location map for the pumping stations and proposed Rising main are enclosed in Appendix1. 3.3 Proposed Interventions at the 38MLD Capacity STP near Lakshmi Talkies The area identified for the construction of 25 & 45 MLD sewage treatment plant is about 10.02 acres. The location map is enclosed in Appendix-1. 3.3.1 Design Parameters of STP The parameters for design the sewage treatment plant shall be as below: Typical # Parameter Units Values 1 BOD mg/l <5.0 2 COD mg/l <10.0 3 TSS mg/l <1.0 4 NH3-N mg/l <1.0 5 NO3-N mg/l <3.0 6 TKN mg/l <2.0 7 T-N mg/l <5.0 8 Total Phosphorus mg/l <1.0 9 Turbidity NTU <0.1 10 E-coli CFU/100ml BDL* 11 Faecal coliforms MPN/100ml BDL* 12 TOC mg/l <5.0 13 pH 6.5 to 8.0
14 TDS mg/l <250.0 15 Free chlorine mg/l 0.2 to 2 .0 16 Chlorides Mg/l <250
3.3.2 Performance of SEWAGE Treatment Plant The sewage treatment plant shall be designed for continuous operation and shall have a turndown ratio without manual intervention of at least two to one. It shall be possible with manual intervention to reduce the flow through the plant to 50 % of full capacity without affecting the quality of the treated sewage.
Project Information Memorandum 24
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
3.3.3 Works Life Expectancy The Contractor shall design the Works for a life expectancy as follows: . Concrete structures 50 years; . Mechanical plant 15 years; . Electrical plant 15 years; . Control panels 15 years; . External instrumentation systems 15 years; . Computer systems 10 years. . Piping 30 years . Chemical Tanks 30 years for GRP/FRP 3.3.4 Conceptual Arrangement of Plant The Existing 38 MLD near Lakhmi Takies has been built in an area of 10.13 acers of land and the existing plant covers the area of 8.0 Acers and the available land for expansion is 2.13 Acers. Currently the existing 38 MLD STP is getting flow of 21.5 MLD which is being treated. In order not to disturb the existing arrangement it has been decided first to construct 25 MLD STP and connect the existing flows to the newly constructed STP and then diver the flows of 25 MLD Apughar STP. This will ensure the uninterrupted utilization and creating additional STP capacity. Considering the available land MBR is the technology adopted with followed by RO and UV as a tertiary treatment so as to achieve desired effluent standards. The conceptual layout drawing is provided in Appendix I. This will also facilitate to achieve the supply of treated sewage water to industries in first phase itself. After construction and operation of 25 MLD STP, refurbishment and retrofitting of existing 38 MLD is to be taken up and emphasized on utilization of existing structures to possible extent while upgrading the 38 MLD plant to required 45 MLD. The units and scheme proposed are illustrated below. 3.3.5 Process Units of MBR-STP (25 MLD&45 MLD) Table 3-9: 25 MLD( MBR)- STP- PROPOSED UNITS Sr No Description Qty Dimension 1 Inlet Chamber 01 4.0 m x4.0mx3.0m 2 Flow channel & Fine Screen chamber 02 6.0 m Lx1.0 w 3 Grit chamber 02 5.0mx5.0mx1.5m 4 Equalization tank 01 37.5mx25.0mx5.0m 5 Anoxic tank 02 10.0mx18.0mx6.0m 6 Aeration tank 02 20.0mx20.0mx6.0m 7 MBR tank 01 20.0mx14.0mx4.0m 8 RO Building 01 20.0mx12.5mx4.0m 8 Blower Room 01 10.0mx8.0mx6.0m 9 Permeate pump room 01 8.0mx6.0mx4.0m 10 Return sludge pump Room 01 6.0mx6.0mx4.0m 11 Thickener 01 10.7m diax4.5mdepth 12 UV Disinfection Tank 01 10.0mx5.0mx2.0m 13 Centrifuge building 01 8.0mx5.0mx6.0m 15 MCC room +laboratory 01 15.0mx10.0mx3.5m
Project Information Memorandum 25
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Table 3-10: 45 MLD( MBR)- STP- PROPOSED UNITS Sr No Description Qty Dimension 1 Equalization tank 01 37.5mx25.0mx5.0m 2 Anoxic tank 02 10.0mx18.0mx6.0m 3 Aeration tank 02 20.0mx20.0mx6.0m 4 MBR tank 01 20.0mx14.0mx4.0m 5 RO Building 01 30.0mx15.0mx4.0m 6 Blower Room 01 10.0mx8.0mx6.0m 7 Permeate pump room 01 8.0mx6.0mx4.0m 8 Return sludge pump Room 01 6.0mx6.0mx4.0m 9 TSE pump Room 01 10.7m diax4.5mdepth 10 UV Disinfection Tank 01 22.9mx22.1mx2.0m
3.4 Reuse of TSE in Industries The treated sewage effluent is supplied to the industries through pressurized pipe line up to the respective industries of adequate capacity. The design capacity of pipe is in line with the CPHEEO design guidelines. The location map for the TSE Rising main is enclosed in Appendix1
Project Information Memorandum 26
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
4.0 DEMAND FOR WATER, BY BULK BUYERS In analyzing the demand by bulk buyers of water, only those buyers located in the port area of the city were considered. This geographical boundary was considered taking into account the proximity of the industries from the existing 38 MLD Sewerage Treatment Plant (STP) near Lakshmi Talkies. Figure 4-1: STP Near Lakshmi Talkies & Industries near the Visakhapatnam Port
Essar Rain CII HPCL BPCL GE SBC STP near Lakshmi Talkies Coramandel
4.1 Demand & Supply Scenario for Water Industries in the port area of Visakhapatnam, predominantly buy water from the Greater Visakhapatnam Municipal Corporation. Some of them use alternative sources such as sea water or the water extracted from the water content in their raw materials. 4.1.1 Demand for Water, by Bulk Buyers in Port Area Table 4-1 : Demand for Water by Bulk Buyers The Greater Visakhapatnam Sl. DEMAND (MLD) Consumer Total (MLD) Municipal Corporation (GVMC) No. Existing Future is the major supplier of water to 1 VPT 2.64 - 2.64 2 Essar Steels 1.50 - 1.50 the industries in and around the 3 Rain CII Carbon 2.27 - 2.27 port area of Visakhapatnam. 4 GE NYC SBC 2.27 4.55 6.82 The table below presents the 5 HPCL 15.00 20.46 35.46 current and future water 6 Coromandel 1.82 3.30 5.12 requirements of bulk buyers of 7 Naval Dockyard 9.09 - 9.09 8 MES 104 Area 2.27 - 2.27 water, located in the port area, Total Requirement 36.87 28.30 65.17 from GVMC. Source: GVMC
4.1.2 Supply of Water Currently, based on the agreement between the industries and GVMC, the corporation is able to provide a guaranteed supply/buying of 60% of the demanded quantity. In rare
Project Information Memorandum 27
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City occasions wherein GVMC is unable to meet the demand, some industries have been able to source water from alternative sources such as sea water and other sources. 4.2 Demand and Supply Scenario for Treated Sewerage Effluent In order to understand the water quality and quantity requirements of bulk buyers in the port area of Visakhapatnam, a survey that included willingness to use treated sewerage effluent was conducted. The demand for TSE was derived based on the results of this survey. 4.2.1 Demand for TSE by Industries Table 4-2 : Expected demand for TSE
Based on the demand DEMAND, in MLD Consumer Purchase for water by industries Existing Future TOTAL Price (Rs./KLD) and their willingness to Visakha Port Trust - - - - use, the derived demand Essar Steels - - - - for treated sewerage Rain CII Carbon 2.27 60 2.27 effluent by industries GE (I) NYC SBC 0.23 60 0.23 0.45 was calculated as HPCL 17.30 60 12.40 29.70 ~32.5MLD. The same is Coromandel - - - - furnished as a table. TOTAL 19.80 12.63 32.43
4.2.2 Supply of TSE to Industries Current inflow of sewerage at the STPs in Appu Ghar and near Laksmi Talkies is 20 MLD and 22 MLD respectively. Thus, the supply of TSE available surpasses the current demand for it. 4.3 Expected Characteristics of the Treated Sewerage Effluent Typical # Parameter Units Values 1 BOD mg/l <5.0 2 COD mg/l <10.0 3 TSS mg/l <1.0 4 NH3-N mg/l <1.0 5 NO3-N mg/l <3.0 6 TKN mg/l <2.0 7 T-N mg/l <5.0 8 Total Phosphorus mg/l <1.0 9 Turbidity NTU <0.1 10 E-coli CFU/100ml BDL* 11 Faecal coliforms MPN/100ml BDL* 12 TOC mg/l <5.0 13 pH 6.5 to 8.0
14 TDS mg/l <250.0 15 Free chlorine mg/l 0.2 to 2 .0 16 Chlorides mg/l <250 BDL: Below Detectable Level
Project Information Memorandum 28
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
5.0 PROJECT COST The project is expected to come up at an estimated cost of Rs.390 crores that includes Capital cost of ~Rs.358 crores and Interest during construction amounting to ~Rs.32 crores 5.1 Capital Costs A total of Rs.358 crores is estimated as the capital costs for the project, including those incurred during Phase I and II of the project. Table below furnishes the estimated capital costs during each phase as well as the aggregate. Table: Estimated Capital Costs for the Project Costs Unit Phase - I Phase – II Total Civil Construction Cost Rs.Cr. 17.63 40.68 58.31 Electro-Mechanical Works Rs.Cr. 89.40 103.95 193.35 Piping Costs Rs.Cr. 37.78 68.13 105.90 Total Capital Cost Rs.Cr. 144.81 212.76 357.56
5.1.1 Capital costs during Phase – I Phase – I, as planned, comprises of construction of a 25 MLD capacity STP to treat the current inflow of ~22 MLD to the existing 38 MLD STP near Lakshmi Talkies and laying of 6.7 km rising main (the distribution infrastructure) from the 25 MLD STP to industries, for the supply of treated sewerage effluent (TSE) for the purpose of reuse by them in their processes. During the phase, ~Rs.95 crores is estimated to be incurred on the 25 MLD capacity STP itself and ~Rs.50 crores on the distribution infrastructure, leading to the total capital expenditure (excluding interest during construction) for the phase to be estimated at ~Rs.145 crores. Table below illustrates the capital costs for the phase: Table: Estimated Capital Costs for Phase I of the Project Activity Amount Unit STP Capacity 25.00 MLD Land Preparation Costs 0.99 Rs.Cr. Civil Cost 14.00 Rs.Cr. Electromechanical Cost 59.38 Rs.Cr. Piping Costs 1.84 Rs.Cr. Overheads 19.55 Rs.Cr. Capex on STP 94.77 Rs.Cr. Costs for Rising Main (TSE to Industries) 28.14 Rs.Cr. Cost of Pumps 11.57 Rs.Cr. Overheads 10.33 Rs.Cr. Capex on Distribution Infrastructure 50.04 Rs.Cr. Total Capital Cost, for Phase – I 144.81 Rs.Cr.
5.1.2 Capital costs during Phase – II Phase – II comprises of several envisaged components of the project, namely: Upgrading the existing 38 MLD capacity sewerage treatment facility near Lakshmi Talkies to a final capacity of 70 MLD.
Project Information Memorandum 29
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Laying of supply infrastructure in the form of: 3.2 km of rising main of 600mm diameter, from Shanti Ashramam to Pandurangapuram; 4.8 km of rising main of 1000mm diameter, from Pandurangapuram to STP near Lakshmi Talkies; Upgradation of existing sewerage network & laying of missing links in the sewerage network, including laying of 400mm, 500mm and 600mm diameters sewerage mains from Durgalamma temple to the existing 38 MLD STP; 7.1 km sewerage network in Jalaripeta, and 8.8 km of missing links in the rest of ABD.
A capital cost of ~Rs.134.50 crores is estimated to be incurred on upgrading the existing 38 MLD capacity STP to 45 MLD capacity, along with upgradation of the technology such that the treated sewerage effluent from the STP meets the water quality demanded by industrial bulk consumers. Further, the capital expenditure on the sewerage supply infrastructure, including interventions at the pumping stations and laying of supply rising main, is estimated to cost ~Rs.46.50 crores. The cost of upgrading of sewerage network comprising of laying of new network in Jalaripeta and of missing links in the rest of ABD as well as near Purna Market area is estimated to be ~Rs.32 crores. Thus the estimated project cost for the entire Phase – II is ~Rs.213 crores. Table below details the capital expenditure various components of Phase II of the project.
Table: Estimated Capital Costs for Phase I of the Project Activity Amount Unit STP Capacity 45.00 MLD Civil Cost 32.28 Rs.Cr. Electromechanical Cost 71.30 Rs.Cr. Piping Costs 3.26 Rs.Cr. Overheads 27.78 Rs.Cr. Capex on STP 134.61 Rs.Cr. Pumping Station at Shanti Ashram 16.00 MLD Electromechanical Cost 5.29 Pumping Station at Pandurangapuram 9.00 MLD Electromechanical Cost 5.91 600MM & 1000MM DIA DI K9 25.58 Rs.Cr. Raw Sewerage pumping main to STP Overheads 9.56 Capex on Sewerage Supply Infrastructure 46.34 Rs.Cr. Capex on Sewerage Network Upgradation 31.80 Rs.Cr. Total Capital Cost, for Phase - II 212.76 Rs.Cr.
Project Information Memorandum 30
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
5.2 Project Cost As outlined in the earlier section, the capital cost for the project is estimated as Rs.358 crores. The project cost includes the interest during construction (IDC) component in addition to the above mentioned capital cost. 5.2.1 Interest During Construction (IDC) In arriving at the estimated interest incurred during construction, that is to be capitalized, the following assumptions were made: Debt : Equity :: 70 : 30 Rate of interest is 12.70% This rate of interest is based upon the Marginal Cost of Funds Based Lending Rate (MCLR) of State Bank of India, for Working Capital Loans & Term Loans, with Aggregate Limits of above Rs.100 crores but below Rs 500 crores for a company rated at SB6 or SB7 Rating, for which the spread is 350 basis points over the Base Rate of 9.20%. 5.2.2 Escalation In estimating the project costs, the capital costs have been assumed to increase at a rate of 5% p.a., year on year. 5.2.3 Project Cost The estimated total project cost along with the project cost estimated for each phase of the project is furnished in the table below: Table: Estimated Project Cost Costs Unit Phase - I Phase - II Total Capital Costs Rs.Cr. 144.81 212.76 357.56 Interest During Construction Rs.Cr. 12.87 18.91 31.79 Project Cost Rs.Cr. 157.68 231.67 389.35
5.2.4 Estimated Project Cost, Year-on-Year For the purpose of financial modeling, the project costs incurred during each year of the pre- construction and construction period of the project were estimated and are furnished in the table below: Table: Estimated Project Cost Project Cost Unit 2018-19 2019-20 2020-21 Total Civil works Rs.Cr. 9.60 31.75 22.15 63.50 Electro-Mechanical Works Rs.Cr. 48.67 105.27 56.60 210.54 Piping works Rs.Cr. 20.57 57.66 37.09 115.32 Project Cost Rs.Cr. 78.84 194.68 115.83 389.35
In arriving at the year on year project costs, an approach of apportioning the IDC was among civil works, cost of electro-mechanical & instrumentation works and piping works, was adopted.
Project Information Memorandum 31
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
5.2.5 Estimated Project Cost, Based on Component The project costs were also estimated for each activity envisaged under the project and is furnished as a table, below: Table: Estimated Project Cost Capacity/ Capital Cost Project Cost Activity Length (Rs.Cr.) (Rs.Cr.) Upgradation of Existing 38 MLD STP 70 MLD 229.38 249.77 Upgradation of Sewerage Network (laying of missing links in ABD and provision of sewerage network in 15.70 Km 31.80 34.63 Jalaripeta) Upgradation of Sewerage Pumping System, including 7.90 Km 46.34 50.47 laying of rising main to the Existing 38 MLD STP Distribution infrastructure for supply of treated sewerage effluent to industries for re-use, including 6.70 Km 50.04 54.49 laying of rising main from the Existing 38 MLD STP to industries Total 357.56 389.35
Project Information Memorandum 32
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
6.0 O&M EXPENSES The Operation & Maintenance (O&M) expenses for the project comprise of The O&M expenses for operating the STPs, including maintenance costs and replacement costs, The O&M expenses for operating the Pumping Stations, The O&M expenses for operating & maintaining the sewerage supply rising mains and The O&M expenses for operating & maintaining the rising mains for supply of treated sewerage effluent to industries.
6.1 O&M Expenses for operating the STP The following types of expenses have been identified to be incurred in operating the STPs Chemical expenses Power consumption bills Salary expenses of man-power for operating the project Maintenance expenses and Replacement costs
6.1.1 Chemical Expenses Based on the treatment technology envisaged, the annual quantity requirements and unit rates of Sodium hypochlroite and Citric acid have been considered, as given below: Table: Chemical costs # Chemical Quantity Unit Rate Unit Amount Unit 1 NaClO 75,000 ltr p.a. 13 Rs./ltr 0.10 Rs.Cr. p.a. 2 Citric acid 25,000 kg p.a. 128 Rs./kg 0.32 Rs.Cr. p.a. TOTAL CHEMICAL COSTS 0.42 Rs.Cr. p.a.
6.1.2 Power Consumption Bills Power consumed for operating the STPs is assessed at the following levels The secondary treatment unit comprising of Membrane Bio Reactor (MBR) with Ultra Filtration (UF), whose effluent is RO feed water. Consumption of other electro-mechanical and instrumentation systems in the STPs, including the Reverse Osmosis (RO) plant envisaged for tertiary treatment to meet the quality standards demanded by the industries. Non – process consumption of the project expenses and Consumption of UV system for disinfection Table below furnishes the power consumed by each of the above. In arriving at the power bills a unit rate of Rs.10 per KWH is used that includes all charges, duties and surcharges.
Project Information Memorandum 33
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Table: Annual Power Bill Estimate Power # STP Capacity Unit Rate Unit Amount Unit Consumption 25 MLD MBR 14,310 kWh/day 10 Rs./kWh 5.15 Rs.Cr. p.a. Non-Process Power 75 kWh/day 10 Rs./kWh 0.03 Rs.Cr. p.a. 1 Consumption Pumps & RO 7,300 kWh/day 10 Rs./kWh 2.63 Rs.Cr. p.a. Sub-Total 7.81 Rs.Cr. p.a. 45 MLD 21,870 kWh/day 10 Rs./kWh 7.87 Rs.Cr. p.a. Non-Process Power 135 kWh/day 10 Rs./kWh 0.05 Rs.Cr. p.a. 2 Consumption Pumps & RO 10,500 kWh/day 10 Rs./kWh 3.78 Rs.Cr. p.a. Sub-Total 11.70 Rs.Cr. p.a. 3 UV Plant 2,250 kWh/day 10 Rs./kWh 0.81 Rs.Cr. p.a. TOTAL 54,190 kWh/day TOTAL 20.32 Rs.Cr. p.a.
In arriving at the annual power bill, the following assumptions have been made The Non-process power consumption is estimated as 3 units (KWH) per day per ML. The process power consumption is estimated as 0.9 units (KWH) per KL
6.1.3 Manpower Costs A total of 45 personnel, across all levels, have been planned for manning the operations of the plant, as shown in the table below: Table: Salary Expenses of Man-power # Personnel No.s Monthly Salary Unit Annual Salary Unit 1 Plant Manager 1 100,000 Rs. 0.12 Rs.Cr. 2 Dy. Manager 2 60,000 Rs. 0.14 Rs.Cr. 3 Lead QC/QA Technician 2 45,000 Rs. 0.11 Rs.Cr. 4 QC/QA Assistant 3 30,000 Rs. 0.11 Rs.Cr. 5 Plumber 3 15,000 Rs. 0.05 Rs.Cr. 6 Electrician 3 15,000 Rs. 0.05 Rs.Cr. 7 Operators 15 25,000 Rs. 0.45 Rs.Cr. 8 Security Guards 12 10,000 Rs. 0.14 Rs.Cr. 9 Support Staff 2 20,000 Rs. 0.05 Rs.Cr. TOTAL 43 1.23 Rs.Cr.
6.1.4 Maintenance Expenses An annual maintenance cost of 1% of the capital costs is assumed for Electro-Mechanical and Instrumentation components in the project and 0.25% for the civil structures of the project. Table: Maintenance Expenses # Costs Phase I Phase II Unit 1 Maintenance Costs (EMI) 0.97 1.13 Rs.Cr. 2 Maintenance Costs (Civil) 0.05 0.11 Rs.Cr. TOTAL 1.02 1.24 Rs.Cr.
Project Information Memorandum 34
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
6.1.5 Replacement Costs Primarily, replacement of membranes (both UF and RO) and UV bulbs have been envisaged and accounted for under replacement costs. A life of 10 years is assumed for both UF and RO membranes and their replacement cost is considered annually on a proportionate basis. Table below provides the estimated replacement costs of an annual basis, for the UF & RO membranes as well as the UV lamps. Table: Annual Replacement Costs # Costs Phase I Phase II Unit 1 Membrane Replacement – UF 1.68 3.26 Rs.Cr. p.a. 2 Membrane Replacement – RO 1.14 Rs.Cr. p.a.
3 UV Lamp Replacement 0.32 Rs.Cr. p.a.
TOTAL 3.14 3.26 Rs.Cr. p.a.
6.2 O&M Expenses for Other Facilities Other facilities include Two Pumping Stations, one of 16 MLD capacity at Shanti Ashramam and the other of 9 MLD capacity at Pandurangapuram ~ 8 km of sewerage supply rising mains, comprising of 3.2 km of 600mm diameter pipeline from Shanti Ashramam to Pandurangapuram and 4.8 km of 1000mm diameter pipeline from Pandurangapuram to the STP near Lakshmi Talkies and ~ 6.7 km of rising main (the distribution infrastructure) from the STP to industries, for the supply of treated sewerage effluent. Table below provides the annual O&M Expenses estimated for the above mentioned facilities: Table: Annual O&M Expenses of Other Facilities Year Amount Unit 16 MLD Pumping Station 0.82 Rs.Cr. p.a. 9 MLD Pumping Station 0.56 Rs.Cr. p.a. Raw Sewerage Pumping Main 0.10 Rs.Cr. p.a. (from 16 MLD PS to Existing 38 MLD STP, via 9 MLD PS) Treated Water Supply Rising Main (STP to Industries) 1.87 Rs.Cr. p.a.
Project Information Memorandum 35
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
7.0 FINANCIAL FEASIBILITY OF THE PROJECT & PPP STRUCTURE In ascertaining the financial feasibility of the project a yearly escalation of 5% is assumed in all the revenues, costs and expenses.
7.1 Revenues The sole revenue stream available for the project is by selling the treated sewerage effluent to industries in the port area of Visakhapatnam for its re-use in their processes. A demand of ~32.50 MLD was derived from the water requirements of the industries in the port area, as furnished in an earlier section of this information memorandum.
7.1.1 Tariff Currently, GVMC is supplying water to the bulk buyers in the port area at a tariff of Rs.60/kl. For the purpose of ascertaining the financial feasibility of the project, a discount of 10% on the tariff is assumed, thus making the tariff for TSE at Rs.54/kl for the ongoing FY2017-18. This tariff is increased at a rate of 5% year-on-year. The revenues, thus calculated are furnished in Annexure – I: Profit & Loss Statement of Appendix II: Financial Statements.
7.1.2 Commencement of Operations Commencement of operations for Phase I is assumed as beginning of second half year of FY2019-20 and accordingly revenue is calculated for the aforementioned financial year. Commencement of operations for Phase II is assumed after a year from the commencement of operations of Phase I (i.e. at beginning of second half year of FY2020-21 for Phase II) and accordingly revenue is calculated only for the half year as the revenue for FY2020-21 from phase II (while revenues from operations of Phase I is calculated for the full financial year).
7.2 O&M Expenses In calculating the O&M Expenses for the project, the O&M expenses estimated earlier for each of the facility in the project, is increased at a rate of 5% p.a. The O&M Expenses, thus calculated are furnished in Annexure – I: Profit & Loss Statement of Appendix II: Financial Statements. Further, the O&M expenses for each phase of the project, has been calculated based on the commencement of operations of the phase, as discussed in the section above.
7.3 Debt Debt, as the principal means of financing the project, is assumed to contribute 70% of the project cost. Interest During Construction (IDC) is capitalized. Rate of interest is 12.70%, as discussed in an earlier section on Project Cost. No moratorium period is assumed.
Project Information Memorandum 36
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Tenor of the debt is assumed as 16 years (80% of the concession period of 20 years). Grant received is assumed to be used for servicing the debt, in the form of repayment of portion of the principal amount.
7.4 Depreciation Straight Line Method is adopted for calculating depreciation under the Companies Act, 2013 along with the rates and life of assets provided in the table below. Table: Depreciation Rates & Life of Assets under Companies Act, 2013 Useful Life Depreciation Structure Project Assets (Years) Rate Buildings Civil Works 60 1.58% Plant & Machinery Electro-Mechanical Works 8 11.88% Pipes Piping 15 6.33%
For the purpose of ascertaining the depreciation under the Income Tax Act for the purpose of calculation of income tax, Written Down Value (WDV) method is adopted. The depreciation rates adopted are furnished in the below table: Table: Depreciation Rates under Income Tax Act, 2013 Depreciation Rate Structure (WDV) Buildings 40.00% Plant & Machinery 40.00% Pipes 40.00%
7.5 Financial Viability of the Project The Equity IRR (Internal Rate of Return) of the project, is considered as the primary valuation parameter in ascertaining the financial viability of the project. 7.5.1 Income Tax The Minimum Alternate Tax (MAT) wherever applicable, is taken at a flat rate of 18.5%, with surcharge and education cess additional. 7.5.2 Grant In order to obtain an expected Equity IRR of above 15%, a financial support of 30% of the estimated project cost is likely to be required for the project. This support is envisaged to be paid in equal tranches, each payable after the completion of construction and commencement of operations of each phase of the project. Initially, 30% of the project cost of each phase is expected to be funded by equity and the remaining 70% by debt. Once the construction of a phase is complete and the facility created under the phase becomes operational, 50% of the estimated support is paid, which in turn is assumed to be used for servicing the debt.
Project Information Memorandum 37
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Thus the total support envisaged for making the project financially viable, at 30% of the project cost is ~Rs.117 crores. The support required for Phase I is estimated as ~Rs.47.50 crores and for Phase II as ~Rs.69.50 crores. 7.5.3 Equity IRR An Equity IRR of over 15% is assumed as the expected return from the project, and accordingly with a support of 30% of the project cost the Equity IRR for the project is estimated as ~15%.
7.6 PPP Structure for the Project The project is envisaged to be undertaken in the Public Private Partnership (PPP) mode of procurement. 7.6.1 PPP Model The PPP model considered appropriate for the development of the project is Design-Built- Finance-Operate-Transfer (DBFOT). Under the model, the maintenance of all the facilities created under the project, also lies with the concessionaire. 7.6.2 Concession Period A concession period of 20 years is envisaged for the project. This concession period includes the construction periods for Phase I & II. 7.6.3 Bid Variable The bid parameter envisaged for the project is Support or Premium. The Support is capped at 30% of the project cost and is payable in tranches as below The first tranche of 25% of the support shall be due after completion of construction of Phase – I. The second tranche of 25% (of the support) shall be due after completion 30 days of successful operation of facilities created under Phase – I. The third tranche of 25% shall be due after completion of construction of Phase - II. The fourth tranche of balance 25% shall be due after achieving Commercial Operations Date. In case a Bidder offers a Premium, it shall specify the annual Premium for the year commencing from date of operations of Phase – I. This Premium amount will be increased for each subsequent year by 5% (year – on – year).
Project Information Memorandum 38
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Appendix I
Project Information Memorandum 39
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 40
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 41
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 42
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 43
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 44
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 45
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Project Information Memorandum 46
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City Appendix II
Project Information Memorandum 47
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
APPENDIX – II: FINANCIAL STATEMENTS Annexure – I: Profit & Loss Statement
Concession 20 Years Period
1 2 3 4 5 6 7 8 9 10
Year Unit 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Revenues Rs.Cr. - 22.15 60.03 78.21 82.88 87.55 92.22 96.89 102.73 108.56 O&M Expenses Rs.Cr. 1.45 12.43 37.32 51.83 36.36 38.18 40.09 42.09 44.20 46.41 EBITDA Rs.Cr. (1.45) 9.72 22.71 26.38 46.52 49.37 52.13 54.80 58.53 62.15 Depreciation Rs.Cr. - 7.24 16.66 9.92 9.92 9.92 9.92 9.92 9.92 9.92 PBIT Rs.Cr. (1.45) 2.49 6.06 16.46 36.60 39.45 42.21 44.87 48.60 52.23 Interest Rs.Cr. - 8.01 19.51 18.53 17.09 15.65 14.21 12.77 11.33 9.89 PBT Rs.Cr. (1.45) (5.52) (13.46) (2.07) 19.51 23.80 28.00 32.10 37.28 42.34 Tax Rs.Cr. - - - - 4.16 5.08 5.98 9.86 13.52 16.40 Net Profit Rs.Cr. (1.45) (5.52) (13.46) (2.07) 15.35 18.72 22.02 22.24 23.75 25.94
11 12 13 14 15 16 17 18 19 20
Year Unit 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 Revenues Rs.Cr. 114.40 120.24 127.24 134.25 141.25 149.42 157.59 165.76 175.10 184.44 O&M Expenses Rs.Cr. 48.73 51.17 53.72 56.41 59.23 62.19 65.30 68.57 72.00 75.60 EBITDA Rs.Cr. 65.67 69.07 73.52 77.84 82.02 87.23 92.29 97.20 103.11 108.85 Depreciation Rs.Cr. 9.92 9.92 9.92 9.92 9.92 9.92 9.92 9.92 9.92 9.92 PBIT Rs.Cr. 55.75 59.15 63.59 67.91 72.10 77.31 82.37 87.27 93.18 98.92 Interest Rs.Cr. 8.45 7.01 5.57 4.13 2.69 1.25 - - - - PBT Rs.Cr. 47.30 52.14 58.02 63.78 69.40 76.05 82.37 87.27 93.18 98.92 Tax Rs.Cr. 18.79 20.87 23.15 25.29 27.32 29.68 31.89 33.61 35.67 37.66 Net Profit Rs.Cr. 28.51 31.27 34.87 38.49 42.08 46.38 50.47 53.66 57.52 61.26
Project Information Memorandum 48
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Annexure – II: Balance Sheet ASSETS 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 Capital WIP 78.84 194.68 115.83 Gross Block: Fixed Assets - 78.84 273.52 389.35 389.35 389.35 389.35 389.35 389.35 389.35 Accumulated Depreciation - 7.24 23.89 33.82 43.74 53.66 63.59 73.51 83.43 93.35 Net Block: Fixed Assets - 71.60 249.62 355.53 345.61 335.69 325.77 315.84 305.92 296.00 Cash - - - - 13.94 31.25 51.86 72.70 95.04 119.57 Total Assets 78.84 266.28 365.46 355.53 359.55 366.94 377.63 388.54 400.96 415.56 LIABILITIES Equity Capital 25.10 83.89 123.21 126.69 126.69 126.69 126.69 126.69 126.69 126.69 Reserves (1.45) (6.97) (20.43) (22.49) (7.15) 11.57 33.60 55.84 79.59 105.53 Net Worth 23.65 76.92 102.78 104.19 119.54 138.26 160.29 182.53 206.28 232.22 Capital Grant - 47.30 116.81 116.81 116.81 116.81 116.81 116.81 116.81 116.81 Loans 55.19 142.05 145.87 134.54 123.20 111.87 100.54 89.20 77.87 66.54 Total Liabilities 78.84 266.28 365.46 355.53 359.55 366.94 377.63 388.54 400.96 415.56
ASSETS 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 Capital WIP Gross Block: Fixed Assets 389.35 389.35 389.35 389.35 389.35 389.35 389.35 389.35 389.35 389.35 Accumulated Depreciation 103.28 113.20 123.12 133.05 142.97 152.89 162.82 172.74 182.66 192.58 Net Block: Fixed Assets 286.07 276.15 266.23 256.30 246.38 236.46 226.54 216.61 206.69 196.77 Cash 146.66 176.52 209.98 247.06 287.73 334.16 394.56 458.15 525.59 596.77 Total Assets 432.74 452.67 476.21 503.37 534.11 570.62 621.09 674.76 732.28 793.54 LIABILITIES Equity Capital 126.69 126.69 126.69 126.69 126.69 126.69 126.69 126.69 126.69 126.69 Reserves 134.04 165.30 200.18 238.67 280.75 327.13 377.60 431.26 488.78 550.05 Net Worth 260.73 291.99 326.87 365.36 407.44 453.81 504.29 557.95 615.47 676.73 Capital Grant 116.81 116.81 116.81 116.81 116.81 116.81 116.81 116.81 116.81 116.81 Loans 55.20 43.87 32.54 21.20 9.87 (0.00) - - - - Total Liabilities 432.74 452.67 476.21 503.37 534.11 570.62 621.09 674.76 732.28 793.54
Project Information Memorandum 49
Retrofitting of Existing Sewerage System & Reuse of Treated Sewerage On DBFOT Basis in Visakhapatnam Smart City
Annexure – III: Cash Flow Statement & Valuation Concession Period 20 Years
Cash Flows/Year 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 APPLICATION OF FUNDS Capital Expenditure (incl. IDC) 78.84 194.68 115.83 ------Interest - 8.01 19.51 18.53 17.09 15.65 14.21 12.77 11.33 9.89 Repayment of Debt - 2.10 7.77 11.33 11.33 11.33 11.33 11.33 11.33 11.33 Income Tax Paid - - - - 4.16 5.08 5.98 9.86 13.52 16.40 Total Uses 78.84 204.79 143.12 29.86 32.58 32.06 31.52 33.96 36.19 37.62 SOURCES OF FUNDS Term Loan 55.19 88.97 11.58 ------Grant - 47.30 69.50 ------EBITDA (1.45) 9.72 22.71 26.38 46.52 49.37 52.13 54.80 58.53 62.15 Sources other than Equity 53.74 146.00 103.80 26.38 46.52 49.37 52.13 54.80 58.53 62.15 Equity Cash Flows (Post-Tax) (25.10) (58.79) (39.32) (3.48) 13.94 17.31 20.61 20.83 22.34 24.53
Cash Flows/Year 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 2036-37 2037-38 APPLICATION OF FUNDS Capital Expenditure (incl. IDC) ------Interest 8.45 7.01 5.57 4.13 2.69 1.25 - - - - Repayment of Debt 11.33 11.33 11.33 11.33 11.33 9.87 - - - - Income Tax Paid 18.79 20.87 23.15 25.29 27.32 29.68 31.89 33.61 35.67 37.66 Total Uses 38.57 39.22 40.06 40.75 41.35 40.80 31.89 33.61 35.67 37.66 SOURCES OF FUNDS Term Loan ------Grant ------EBITDA 65.67 69.07 73.52 77.84 82.02 87.23 92.29 97.20 103.11 108.85 Sources other than Equity 65.67 69.07 73.52 77.84 82.02 87.23 92.29 97.20 103.11 108.85 Equity Cash Flows (Post-Tax) 27.10 29.86 33.46 37.08 40.67 46.43 60.40 63.59 67.44 71.19 Equity IRR (Post Tax) 14.89%
Project Information Memorandum 50