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Water Sewerage Authority— Feasibility Study Final Report Smart City Master Planning and Sector-specific Smart City Infrastructure Projects for Visakhapatnam WATER SEWERAGE AUTHORITY— FEASIBILITY STUDY FINAL REPORT AECOM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM i ii VISAKHAPATNAM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT AECOM Copyright © 2017 AECOM 3101 Wilson Blvd. Suite 900 Arlington, VA 22201 USA Telephone: +1 (703) 682-4900 Internet: www.aecom.com December 2017 Rights and Permission The material in this work is subject to copyright. Because AECOM encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. General Limiting Conditions AECOM devoted effort consistent with (i) that degree of care and skill ordinarily exercised by members of the same profession currently practicing under same or similar circumstances and (ii) the time and budget available for its work in its efforts to endeavor to ensure that the data contained in this document is accurate as of the date of its preparation. This study is based on estimates, assumptions and other information developed by AECOM from its independent research effort, general knowledge of the industry, and information provided by and consultations with the Client and the Client’s representatives. No responsibility is assumed for inaccuracies in reporting by the Client, the Client’s agents and representatives, or any third-party data source used in preparing or presenting this study. AECOM assumes no duty to update the information contained herein unless it is separately retained to do so pursuant to a written agreement signed by AECOM and the Client. AECOM’s findings represent its professional judgment. Neither AECOM nor its parent corporation, or their respective subsidiaries and affiliates, makes any warranty, expressed or implied, with respect to any information or methods disclosed in this document. No recipient of this document other than the Client shall have any claim against AECOM, its parent corporation, and its and their subsidiaries and affiliates, for any liability for direct, indirect, consequential, or special loss or damage arising out of its receipt and use of This document whether arising in contract, warranty (express or implied), tort or otherwise, and irrespective of fault, negligence and strict liability. AECOM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM iii This page intentionally left blank iv VISAKHAPATNAM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT AECOM TABLE OF CONTENTS Executive summary 1 Infrastructure Challenges 1 Revenue Generation 2 Organizational Capacity 2 SWOT Analysis on Existing GVMC Operation 2 Independent Authority Model 4 1. Project Rationale 7 1.1 Background 7 1.2 Infrastructure Challenges 7 1.3 Goals for Water and Wastewater System 8 1.4 SMART Vision 10 2. Assessment of “As-Is” Situation 13 2. GVMC Operation “As-Is” Study 13 2.2 Governance and Operational Process 21 2.3 SWOT Analysis on Existing GVMC Operation 23 3. Analysis of Organizational Governance Options 25 3.1 Business As-Usual Model 25 3.2 Private Sector Service Provider Model 27 3.3 Independent Authority Model 29 3.4 Comparative Assessment of Three Models 30 4. Case Studies on Existing Independent Water Authorities 31 Case Study # 1: Bengaluru Water Supply and Sewerage Board 31 Case Study # 2: Chennai Metropolitan Water Supply and Sewerage Board 36 Case Study # 3: Hyderabad Metropolitan Water Supply and Sewerage Board 42 Case Study # 4: Tampa Bay Water, Florida, the United States of America 46 5. Next Steps 51 AECOM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM v vi VISAKHAPATNAM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT AECOM Acronyms and Abbreviations APEPDCL Andhra Pradesh Eastern Power Distribution Company Ltd. APGENCO Andhra Pradesh Power Generation Company CEO Chief Executive Officer CMAR Construction Manager at Risk DB Design-Build DBF Design-Build-Finance DBFOM Design-Build-Finance-Operate-Maintain DBOM Design-Build-Operate-Maintain EoI Expression of Interest GHG Greenhouse Gas GVMC Greater Visakhapatnam Municipal Corporation HPSC High Powered Steering Committee IT Information Technology kV kilovolt MW megawatts NREDCAP New & Renewable Energy Development Corporation of Andhra Pradesh Limited O&M Operations and Maintenance OT Operational Technology PV Photovoltaic RFP Request for Proposals RFQ Request for Qualifications SCADA Supervisory Control and Data Acquisition SOQ Statement of Qualification SPV Special Purpose Vehicle ULB Urban Local Bodies VfM Value for Money VUDA Visakhapatnam Urban Development Authority AECOM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM vii viii VISAKHAPATNAM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT AECOM EXECUTIVE SUMMARY EXECUTIVE SUMMARY The aim of Mission Smart City is to efficiently utilize available Assets, Resources, and Infrastructure to enhance the quality of Urban Life and provide a clean and sustainable environment for living. The primary focus of this initiative is to develop and maintain core infrastructure and public services like providing adequate clean water supply, power supply, sanitation, disaster management, solid waste management, wastewater treatment, efficient urban mobility and public transportation, public healthcare system, education, affordable housing, robust IT connectivity, e-governance, safety, and social security. The Government of Andhra Pradesh (“GoAP”) with the assistance of the Government of the United States of America (“USA”) Department of Commerce, United States Trade Development Agency (“USTDA”), and United States Export-Import (“EXIM”) Bank is keen on developing the city of Visakhapatnam (“Visakhapatnam”) as a Smart City under the 100 Smart Cities Project of the Government of India (“GoI”). Infrastructure Challenges The residents of GVMC receive limited water supply due to inadequate infrastructure in terms of water supply sources, treatment, distribution, collection, treatment, and disposal networks. The raw water sources are dependent upon monsoon, thus placing additional pressure on supply and usage during low-rainfall years. Metering along the network and / or at connections combined with progressive tariff structures, and enhanced focus on long-term planning for the raw water sources, conveyance, treatment, distribution as well as collection, treatment and safe disposal of treated wastewater can contribute to better water supply, efficiency of use, and long-term sustainability. AECOM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 1 EXECUTIVE SUMMARY GVMC has initiated public sector participation in expanding the water supply to provide safe drinking water to its residents on a 24/7 basis, and strengthening the wastewater system, which currently covers approximately 50 percent of GVMC geographic area. Key challenges include the following: Increasing the coverage area Developing a comprehensive master plan for safe drinking water supply and wastewater system Fostering data creation on water and wastewater systems’ performance Developing an effective communication strategy Energy conservation Promoting rainwater harvesting Reuse of treated wastewater / effluent Safe disposal of treated sewage into water bodies. Revenue Generation The Revenue Department of GVMC is responsible for revenue generation by levying the Property Tax and Vacant Land Tax as well as its collection and dealing with Remunerative Enterprise and Water Charges. During Fiscal Year 2015-16, total estimated revenue receipts were INR 1406.34 crores. (See Figure 1) Organizational Capacity A Special Purpose Vehicle (“SPV”) has been established for the purposes of delivering key infrastructure projects under the Smart City initiative. The SPV, in coordination with GVMC and a Program Management Unit (“PMU”), is responsible for developing and implementing planned infrastructure projects. The PMU will provide advisory services on technical and financial aspects during the implementation of various smart city projects. SWOT Analysis on Existing GVMC Operation The discussion below summarizes major strengths, weaknesses, opportunities, and threats under the existing operational model of GVMC for the water and sewerage services. Key aspects of the SWOT analysis are listed below. Strengths City Development Plan and comprehensive approach to infrastructure development across GVMC service area Inclusion of VUDA Master Plan and City Mobility Plan VISWCO provides water supply and treatment for industrial use 2 VISAKHAPATNAM WATER SEWERAGE AUTHORITY - FEASIBILITY STUDY FINAL REPORT AECOM EXECUTIVE SUMMARY Approximately 15 percent of total annual revenues generated are contributed from water supply services Proposal for 4 additional STPs to provide for 100 percent coverage under GVMC Identification of 30 urban infrastructure projects as candidates for potential EPC and/or PPP delivery Proposal to build 1,079 km of new water supply lines to reach 85 percent water supply coverage and to cater the growing per capita water demand of 150 LPCD Weaknesses Prolonged process of fund allocation and utilization of available funds for the planned infrastructure projects Approximately 35 percent gap in water supply network Loss of potential revenues due to lack of metering and monitoring infrastructure Unaccounted loss of water resource due to leakage Out of 436,300 households only 85,357 have
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