Phase I Vision Documents

Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam

Task 6: Interim Report

October 26, 2016

1 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents

1. Introduction and Background 3

2. Activities Undertaken in Phase I 4

3. Summary of Outputs under Phase I 7

4. Next Steps/Phase II Milestones 9

5. Annexures A – Task 1-5 Deliverables 11

i. Task 1 12

ii. Task 2 27

iii. Task 3 133

iv. Task 4 196

v. Task 5 306

2 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 1. Introduction and Background

The AECOM team, including partner firms IBM and KPMG, is carrying out the assignment “Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam” on behalf of the Government of Andhra Pradesh (USTDA financing). With a view to promoting the development of Visakhapatnam (“Vizag”) into a smarter city, the assignment includes baseline analysis, formulation of a development strategy and guidelines, preparation of a smart city master plan, and feasibility analysis of smart city projects. It is anticipated that the work will be completed over three 5-month phases, as follows:

• Phase 1: Baseline, Smart City Development Strategy and Action Planning for Two Smart City Projects (March 2016 – August 2016) • Phase 2: Preparation of the Smart City Master Plan • Phase 3: Implementation Plan and Feasibility Studies for Four Smart City Projects

Phase 1 was contracted on February 12, 2016 and is currently underway. Phase 1 includes six tasks:

• Task 1. Defining Visakhapatnam Smart City Vision • Task 2. Review and Analysis of Existing Conditions and Corresponding Best Practices • Task 3. Strategic Planning for Regulatory and Infrastructure Framework • Task 4. Sector-Specific Strategies • Task 5. Action Planning for Two Smart City Projects • Task 6. Interim Report

This report is submitted in satisfaction of the requirements of Task 6, Interim Report.

3 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 2. Activities Undertaken in Phase I

The starting point for the exercise was the smart city vision prepared under the Government of India’s national Smart City Challenge competition. AECOM and IBM were awarded a separate contract by the Government of Andhra Pradesh to prepare Vizag’s Smart City Challenge Proposal. The top 20 municipalities in the country were to qualify, based on their proposals, for inclusion in the first tranche of Indian smart cities. Winning municipalities qualify for national government funding to undertake selected smart city investments. The Greater Visakhapatnam Municipal Corporation (GVMC) developed its Challenge Proposal from July - December 2015 and submitted the Challenge Proposal to the Ministry of Urban Development (New Delhi) in December 2015. The proposal was successful: Visakhapatnam was selected for inclusion in the first tranche of 20 cities.

The smart city vision for Vizag as set out in the Challenge Proposal is to develop the city as “A resilient and healthy metropolis for PEOPLE: The City of Destiny is envisioned to become a leader in sustainability, healthy living, equality and innovation.” The vision was summarized in more detail in Section 3: The Smart City Challenge Proposal Vision of Task 1 and described in detail in the Challenge Proposal itself.1 Validation of this proposal was carried out through a series of focus groups and interviews with key stakeholders. Section 2: Activities Undertaken in Validating the Vision in Task 1 describes the work undertaken by the AECOM team. The refinement of the vision took into account the requirement for Vizag to function as the main economic engine of the new, smaller Andhra Pradesh state, following the division of the former state into Andhra Pradesh and Telangana states. The evolution of the vision for Vizag is described in Section 3: The Smart City Challenge Proposal Vision of Task 1. The refined Vision Statement is set out in a separate Task 1 deliverable, “Smart City Vision Statement.”

The AECOM team participated in Mission #2 in Delhi and Visakhapatnam from 12 – 24 May 2016. During this period the team conducted focus group sessions with key municipal, private sector, NGO, and citizen stakeholders around shared interests in urban development, transportation, health care, energy infrastructure, water infrastructure, education, information and communications technology, resilience and disaster management, economic development, and ecology. Team members also performed site visits throughout the VUDA region to the proposed airport site, south to the industrial estates, through the port and surrounding the naval base grounds, as well as to Bheemunipatnam, natural open spaces, settlements, and regional tourism attractions. Based on these interactions, team members revised the Smart City Visakhapatnam Vision statement and presented regular updates to Municipal Commissioner Pravin Kumar for his review and comment.

Task 3, Strategic Planning for Regulatory and Infrastructure Framework, involved the AECOM team taking the prior knowledge gained from site visits throughout the VUDA region to create assessments based on the urban growth requirements of the population (housing, densification, greenfield development) as well future infrastructure needs (transport, water/wastewater, power supply). The AECOM team also conducted a resilience assessment based on meetings, workshops and field observations in May 2016 and a review and analysis of existing secondary

1 “Proposal for Assisting Visakhapatnam City to Participate in the Smart City Challenge,” GVMC/AECOM, 2015. 4 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report data and recommendations related to the vulnerability of Visakhapatnam to natural hazards. The resilience assessment focused on a review of natural hazards, a vulnerability assessment of key assets, existing mitigation of hazard vulnerabilities, and recommendations for additional resilience. After the AECOM team reviewed existing infrastructure plans that the Central Government is in the process of developing, they presented an initial strategy that would lead to a final Smart City plan for Vizag and shape future development.

The guidelines for the Smart City plan were laid out in Task 4, Sector-Specific Strategies, which included three sets of sector-specific guidelines: Guidelines for Developing “Smart” Infrastructure: Energy Sector, Guidelines for Developing “Smart” Infrastructure: Transport Sector, and “Guidelines for Developing “Smart” Infrastructure: Water Supply, Sewerage, and Drainage Sector. The three reports were intended to provide guidance for the identification, development, and implementation of energy, water, and transport services. The reports outlined the typical processes involved in the project development lifecycle for both solicited and unsolicited projects across the various sectors in Greater Vizag. The guidelines presented recognized that each project is unique, and certain elements set forth in the reports may not apply in all circumstances and may be subject to change as deemed appropriate. Furthermore, the guidelines are intended to serve as a general template for implementing smart projects and are not meant to be limiting. The Special Purpose Vehicle (SPV) or the public entity responsible for the Smart City projects has the flexibility to amend provisions in these guidelines on a case-by- case basis, so long as the resulting provisions comply with guideline objectives, which are to:

• Guide and inform analyses and other work to be performed for the planning and implementation of Smart City projects; and • Guide and inform the planning, deliberation, and decision-making process of GVMC, the Grantee, and other key stakeholders in identifying, assessing, implementing, and executing Smart City initiatives and projects to the extent applicable to the energy sector.

The AECOM team coordinated and refined the deliverables under Task 5, Action Planning for Two Smart City Projects, through an iterative process involving GVMC, VUDA and infrastructure providers. The team built upon the Visakhapatnam Smart City vision to develop candidate projects within the energy, water, mobility sectors and cross-cutting platforms. Implementation project criteria were used to evaluate and refine each project consistent with the vision, government policies, and needs of the GVMC and VUDA areas. The action plans take into account anticipated economic and social benefits and costs, environmental benefits and costs, resiliency, as well as project feasibility, financing, and operations and management considerations.

During the July mission to Visakhapatnam, the AECOM team met with the GVMC municipal commissioner and staff to present work completed to-date and the Phase I vision documents. The smart city projects kick-off workshop included review of a long list of potential projects based upon infrastructure sectors, governance, and smart characteristics.

The AECOM team also met with VUDA consultants to coordinate project efforts going forward into Phase II. The AECOM team presented the Phase I vision documents and a summary of work

5 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report completed work to-date and participated in discussions of the other ongoing projects. The AECOM team participated in a discussion with municipal and panchayat leaders from throughout the Visakhapatnam Metropolitan Region to discuss the work to date and expectations for Phase II. Participants shared and received insight into infrastructural and governance concerns throughout the VUDA region. Materials associated with each of the meetings held on 22 July 2016 can be found in the annexures.

During the same mission, the AECOM team coordinated further with VUDA consultants and convened as a group to review and advance the smart city guidelines for the water, transport, and energy sectors; and discuss smart city project priorities. The GVMC municipal commissioner met with the AECOM team to review an initial list of smart city projects and validate the selection criteria, and to discuss next steps. A presentation summarizing the project listing can be found in the annexures. In subsequent discussions with the GVMC Commissioner it was decided that the projects planned under Task 5 should have a near-term impact and demonstrate a variety of smart approaches.

Two projects were ultimately selected for detailed planning based on discussion with stakeholders: “Connect Vizag” and “Smart Skill Vizag.”

• “Connect Vizag” — This transportation project will include implementation of an information system, signal prioritization, ‘smart’ bus stops and an application (app) providing for real-time information for buses along prominent corridors. GPS bus transmitters currently scheduled to be installed on 110 buses would be used in conjunction with Passenger Information Displays on buses and at bus stops along selected roadways to provide real-time information about wait time for buses and bus delays to passengers at bus stops and using smart phone apps. In addition, the transmitters on the buses would be used to provide green signals to buses approaching intersections, speeding up bus travel and reliability.

• “Smart Skill Vizag” — The project will promote training roadmaps and predictive workforce demand analytics for major industries/sectors and socio-economic communities through a virtual platform, in-person “Vizag One Centre,” and through regional outreach and training programs. The platform will connect to a database already developed by the Central Government, opening new access to training pathways, programs and facilities.

At the end of the mission, the team met with sector-specific stakeholders to gather additional information. The team continued developing the two Smart City project action plans with insights from the Phase I socio-economic household survey data. Throughout August and September, the team continued refining and preparing the two smart city action plan reports to incorporate technical, organizational, and financial considerations.

6 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 3. Summary of Outputs under Phase I

Task 1: Defining Visakhapatnam Smart City Vision – As the starting point for the “Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam”, the AECOM team conducted numerous workshops and focus groups with a broad range of stakeholders in order to validate the Vizag Smart City Vision. The meetings built upon previous stakeholder outreach efforts that occurred during the preparation of the Challenge Proposal, which included engagement and input from representatives of more than 400,000 people over a 60-day period. Topics covered during these outreach efforts covered mobility, water, energy, procurement, and socio-economics. There was also a joint planning charrette organized by AECOM, GMVC and VUDA that brought in urban growth management and infrastructure management stakeholders in order to test the feasibility of alternative development strategies and configurations for Greater Vizag and the entire planning area.

An initial vision was developed based on this input that was based on three foundational elements: A Healthy and Livable City, A Resilient City, and A Vibrant City. From those elements, six key goals and objectives were identified: A Safe and Healthy City, A Sustainable City, A Dynamic City, A Connected & Green City, An Equitable City, and A Resilient City. As the vision continued to be refined and more analysis was completed, it was acknowledged that changes to the Vision would be possible which would require further stakeholder consultations. A household survey was also developed in order to capture the perspective of a diverse set of Vizag households.

Task 2: Review and Analysis of Existing Conditions and Corresponding Best Practices – The follow up to Task 1 involved the AECOM team reviewing existing local, regional and state level reports and plans that would inform later planning and implementation phases, an analysis of the delivery of public services (energy, water, mobility and ICT infrastructure systems), and the socioeconomic profile generated from 650 household surveys. VUDA projections for the Greater Visakhapatnam Municipal Corporation and the Visakhapatnam Metropolitan Region (VUDA planning area) depict a region slowly expanding to 6.1 million people by 2021. The Average Annual Growth Rate (AAGR) from 2001 to 2011 is only 1.34%. Based on an AAGR of 2%, the population will rise to 7.56 million in 2030. More than half of the total regional population will still live in GVMC.

The household survey conducted within the VUDA planning area was meant to develop a fine- grained understanding of households’ patterns of usage of information technology, the level of penetration of various technology platforms, usage patterns, priorities, and preferences associated with urban infrastructure and services, and help to plan for future demand for infrastructure and social services, as well as the ability of the local population to benefit from "smarter" urban services.

Task 3: Strategic Planning for Regulatory and Infrastructure Framework – Building upon the review of existing conditions and corresponding best practices, the AECOM consortium team utilized Government of India and State Government of Andhra Pradesh datasets to assess urban growth requirements and anticipated demand for trunk infrastructures. Meetings, workshops,

7 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report field observations and review of existing literature were incorporated to assess regional resiliency with natural hazards, vulnerability of key assets, existing mitigations and recommend additional measures. Key observations from the existing planning and regulatory framework identify policy approaches, gaps, opportunities and incentives in the development of the smart city framework plan and projects. The overarching strategy for integrated smart urban development outlines guiding principles and approaches for urban growth management, urban and infrastructure planning, operations, and economic development.

Task 4: Sector-Specific Strategies and Guidelines – Guidelines for developing “smart” infrastructure for energy, transport, and water supply, sewerage, and drainage align sector- specific strategies with the overall vision of the Visakhapatnam Smart City Master Plan. The guiding principles and approaches are people- and system-centric to leverage the greatest benefits from early infrastructure enhancements.

Task 5: Action Planning for Two Smart City Projects – A smart city infrastructure approach built upon the Visakhapatnam Smart City vision to define, identify, and develop candidate projects within the energy, water, mobility sectors and cross-cutting platforms. The “Connect Vizag” project includes implementation of an information system, signal prioritization, ‘smart’ bus stops and an application (app) providing for real-time information for buses along prominent corridors to provide real-time information about wait time for buses and bus and to provide green signals to buses approaching intersections, speeding up bus travel and reliability. The “Smart Skill Vizag” project promotes training roadmaps and predictive workforce demand analytics for major industries/sectors and socio-economic communities through a virtual platform, in-person “Vizag One Centre,” and through regional outreach and training programs. The platform will connect to a database already developed by the Central Government, opening new access to training pathways, programs and facilities.

8 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 4. Next Steps/Phase II Milestones

Phase II will be a seamless continuation of phase I, beginning in August 2016 and continuing through to January 2017. The integrated Smart City Framework Plan will be developed in the following stages:

Task 7 Kick-off workshop with stakeholders September 2016

Task 8 Draft Integrated framework October-November 2016

Task 9 Draft plan workshop with stakeholders December 2016

Task 10 Final Plan January 2017

Task 11 Final presentation January 2017

Task 12 Final report January 2017

The following annexures present the deliverables included under each Phase I task.

9 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 5. Annexures – Task 1-5 Deliverables Task 1. Defining Visakhapatnam Smart City Vision

10 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam

Smart City Vision Validation Report

May 5, 2016

11 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents:

1. Introduction and Background x

2. Activities Undertaken in Validating the Vision x

3. The Smart City Challenge Proposal Vision x

4. Conceptual Foundation for the Evolution of Vizag’s Smart City Vision x

5. Next Steps x

12 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 1. Introduction and Background

• Phase 1: Baseline, Smart City Development Strategy and Action Planning for Two Smart City Projects (Feb 2016 – July 2016) • Phase 2: Preparation of the Smart City Master Plan (August 2016 – January 2017) • Phase 3: Implementation Plan and Feasibility Studies for Four Smart City Projects (February – June 2017)

Phase 1 was contracted on February 12, 2016 and is currently underway. Phase 1 includes six tasks:

This report describes the work done in March 2016 on Task 1.a., “Meetings and Working Groups: Vision Validation Process.”

The starting point for the exercise was the smart city vision prepared under the Government of India’s national Smart City Challenge competition. AECOM and IBM were awarded a separate contract by the Government of Andhra Pradesh to prepare Vizag’s Smart City Challenge Proposal. The top 20 municipalities in the country were to qualify, based on their proposals, for inclusion in the first tranche of Indian smart cities. Winning municipalities qualify for national government funding to undertake selected smart city investments. The Greater Visakhapatnam Municipal Corporation (GVMC) developed its Challenge Proposal from July – December 2015 and submitted the Challenge Proposal to the Ministry of Urban Development (New Delhi) in December 2015. The proposal was successful: Visakhapatnam was selected for inclusion in the first tranche of 20 cities.

2 “Proposal for Assisting Visakhapatnam City to Participate in the Smart City Challenge,” GVMC/AECOM, 2015. 13 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Validation of this proposal was carried out through a series of focus groups and interviews with key stakeholders. Section 2 below describes the work undertaken by the AECOM team. The refinement of the vision took into account the requirement for Vizag to function as the main economic engine of the new, smaller Andhra Pradesh state, following the division of the former state into Andhra Pradesh and Telangana states. The evolution of the vision for Vizag is described in section 3. The refined Vision Statement is set out in a separate Task 1 deliverable, “Smart City Vision Statement.”

2. Activities Undertaken in Validating the Vision

The AECOM team carried out workshops and focus groups with a broad range of stakeholders to validate the Vizag Smart City Vision. These meetings built on the stakeholder outreach efforts conducted during the preparation of the Challenge Proposal, which were intensive and broad, including engagement with representatives of more than 400,000 people over a 60-day period. The survey responses were collected in hard copy, through www.mygov.in and through www.yourvoiceyourvizag.com (link no longer active). During March 2016, the AECOM team supplemented that outreach effort by:

• Expanding the group of stakeholders to include those in the Visakhapatnam Urban Development Authority (VUDA) planning area, which is the study area for the current assignment. The VUDA planning area covers 5,573 square kilometers and includes the GVMC jurisdiction and many of the peripheral areas adjacent to it, especially extending to the north and south of the city center along the AP coastline. Stakeholders such as VUDA, Visakhapatnam District, infrastructure agencies and private firms operating in the planning area took part in the meetings and focus groups. • Holding more intensive and focused discussions by particular infrastructure sectors (energy, transportation, water) in order to understand the issues and challenges affecting the planning area; • Beginning the investigation of development trends in the key economic sectors that are anticipated to bolster the regional economy in the coming decades. While this is technically part of Task 2.c. Socioeconomic Profile, AECOM began the work during the kickoff mission because we needed a deeper understanding of the relative growth potential in the key sectors in order to validate the city’s development vision.

The following summarizes the specific activities that were undertaken by the AECOM team. Annex A presents the list of participants in different meetings and events. Annex B includes notes from the group meetings, while Annex C presents notes from the individual meetings with key informants.

14 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Meetings and Focus Groups

Project kickoff meeting on March 11, 2016 — Chaired by GVMC Commissioner Pravin Kumar in the main municipal complex, this meeting served to increase awareness among key stakeholders of the scope and schedule of the assignment, to table key issues for understanding, and to make a detailed plan for the rest of the kickoff mission. The list of participants, agenda and PowerPoint presentations are attached to this report. Central to that mission plan was a series of focus groups on key infrastructure sectors that were held the following Monday (see below).

Mobility focus group on March 14, 2016 — This focus group convened the major players in the transportation and logistics sectors (see details in annex). The AECOM specialists and the directors and deputy directors of the agencies responsible for roads, transit networks, the port and the airport discussed the key issues and challenges facing the sector.

Water focus group on March 14, 2016 — This focus group convened the major players in the water supply, wastewater and stormwater sectors (see details in annex). In addition to the representatives of GVMC and District agencies, leading professors from Andhra University attended the meeting and contributed to the identification of salient conditions and trends in the water sector.

Energy focus group March 14, 2016 — At this meeting the electrical power utility directors and municipal representatives responsible for renewable energy promotion shared their insights on the

Meeting with VUDA March 15, 2016 — The AECOM team held a one-half day session with the regional planning agency to discuss their vision and plans for how the VUDA planning area will be developed.

Planning Charrette on March 17-18, 2016—The participants in the planning charrette tabled and investigated the feasibility of different urban development and infrastructure delivery proposals discussed at the focus groups. Key strategic directions for the development of the city beyond the existing urban core were discussed and evaluated verbally and through drawings. The relative growth potential of the different target economic sectors was discussed, with major inputs from KPMG specialists from Washington, DC and New Delhi.

Wrap-up meeting on March 18, 2016 — Chaired by GVMC Commissioner Pravin Kumar in the main municipal complex, this meeting served to summarize the work undertaken during the first mission and to set out the next steps for completing the baseline analysis.

Individual Interviews with Key Informants

Mobility:

• March 15, 2016: Meeting with Mr. Sudhakar, Engineering, GVMC

15 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• March 15, 2016: Meeting with Assistant Commissioner of Police for Traffic Enforcement

• March 16, 2016: Meeting with D. Venkata Ratnam, Chief City Planner, GVMC

• March 17, 2016: Meeting with R.J. Vidyullatha, Chief Urban Planner, Visakhapatnam Urban Development Authority (VUDA)

• March 17, 2016: Meeting with Dr. Mukund Dangeti, Associate Professor, Department Of Civil Engineering, GITAM Institute of Technology (GIT)

• March 18, 2016: Meeting with Mr. Timothy Prakash, STANPOWER Corporation

Water:

• March 14, 2016: Mr. Sitharama Raju Sagi and Mr B Satyanarayana – March 14, 2016

• March 16, 2016: Meeting with Dr. Bala Prasad Andhra University

• March 16 2016: Meeting with Mr Venkateswara Rao, Superintendent Engineer Water Supply

Energy:

• March 16, 2016: Meetings and tours with GVMC

• March 17, 2016: Meeting with staff of APEPDCL (electrical power utility)

Procurement:

• March 15, 2016: Meetings with GVMC Capital Projects and Finance, including:  Mr. V. Sudhakar, Executive Engineer, Civil Projects  Mr. V. Mangapathi Rao, Accounts  Mr. S.S. Varma, Finance  Mr. Marianna, Superintendent Engineer

Socio-economics:

• March 16, 2016: Mr. Vinod Kumar Sharma, Assistant Director, Airport Authority (Logistics Sector)

• March 17, 2016: Mr. M.V. Ramana, Assistant Divisional Engineer, Railway Authority (Logistics Sector)

16 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• March 16-17-18, 2016: Dr. M. Madhusudhan Babu, Superintendent, KHG Hospital (Healthcare Sector)

• March 18, 2016: Dr. Sarojini, Visakhapatnam District Department of Health (Healthcare Sector)

• March 18, 2016: Mr. Raj Kiran, Sales Manager, Novotel Visakhapatnam (Tourism Sector)

• March 17, 2016: Mr. Ananth Srinivas, Executive Director, Government of Andhra Pradesh Tourism (Tourism Sector)

• March 18, 2016 – M. V. Rama Raju, Deputy General Manager, Corporate Affairs, Association of Pharmaceutical Companies (Pharma Sector)

Field Visits

• March 12, 2016: Infrastructure works. Accompanied by public sector infrastructure managers, the team visited more than a dozen sites related to water supply, wastewater treatment, stormwater management, electrical power, roads and Bus Rapid Transit.

• March 13, 2016: Communities and cultural destinations. Led by a local environmental specialist appointed by GVMC, the team visited communities within the city center, the fishing port, a fishing village, Kailasgiri, Andhra University, the Dolphin Nose park and lighthouse, and other cultural districts.

• March 15, 2016: Tour of communities north of GVMC. The team visited Rushikonda, the tech parks, the new airport site, Vizianagaram, Madhurawada, and other sites north of the city center.

• March 16, 2016: Tour of SEZ and south GVMC communities. The AECOM team visited the pharma SEZ, the area around the oil refinery and the steel mill, and other industrial and residential mixed use sites south of the city center.

The focus groups and meetings both contributed to a number of tasks under Phase I, Task 2. In addition to Task 2.c., Socioeconomic Profile, which is addressed above, the AECOM team began the process of investigating the process by which infrastructure and social services are delivered in Vizag. This relates to Task 2.b., Analysis of Public Service Delivery. The AECOM team carried out Task 2.a., Review of Existing Reports and Plans, before arriving in Visakhapatnam. Additional reports were reviewed and taken back to the home office for further evaluation.

17 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Planning Charrette

AECOM, GMVC and VUDA organized and conducted a Planning Charrette on March 17-18, 2016 with urban growth management and infrastructure management stakeholders in order to test the feasibility of alternative development strategies and configurations for Greater Vizag and the entire planning area. The charrette (workshop) was held in the GVMC offices. The results of the charrette are reported in a separate deliverable entitled, Planning Charrette Report.

3. The Smart City Challenge Proposal Vision

The Smart City Challenge Proposal process for Visakhapatnam engaged GVMC citizens, civil society and government officials in formulating a vision for Vizag that will guide its future development as a smart city. During the Challenge Proposal effort, public health and urban resilience emerged as central issues to be protected and enhanced through smart city innovations. Unlike other successful proposals in the top-ranking 20 cities, the GVMC vision focuses explicitly on improving the daily lives of the city’s residents and visitors as the city grows.

The Vizag Challenge Proposal Planning process involved the following key components:

Goal Setting The Challenge Proposal organized the aspirational elements of the broader vision into a “Strategic Blueprint –2030” composed of three foundational elements:

A Healthy and Livable City Envisioned to be the most healthy and livable city in India by 2030. Such a strategic focus for Vizag will ensure that it becomes a benchmark city in the country where economic development and healthy lifestyles can co-exist.

A Resilient City Vizag to emerge stronger to withstand the 21st century challenges of climate change, man-made disasters such as flooding and air pollution, and unforeseen events such as terrorism

A Vibrant City Technology will enable enhancement in governance, will provide citizens with real-time information while giving them tools to make daily choices. Vibrant Vizag will serve as a test bed for smart city initiatives that is constantly informed by the changes happening in its environment. Vizag will become a Financial Hub, IT Hub, and Tourism destination.

The Challenge Proposal then identifies the following key Goals and Objectives:

A Safe and Healthy City • Compact and walkable city • Safe streets and neighborhoods • Parks and playgrounds and active recreation

18 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report A Sustainable City • Minimize environmental footprint • Minimize waste & waste to energy – align with Swatch Bharat mission

A Dynamic City • Tourism potential • Technology connectivity – align with Digital India • Economically vibrant city

A Connected & Green City • More mobility choices & less dependency on fossil fuel • Walkable & bikeable city

An Equitable City • Citizens have access to quality education & health, technology

A Resilient City • Climate change preparedness • Strong neighborhood organizations and strong collaboration between city and citizens

SWOT Analysis The Vizag Smart City Challenge Proposal engaged citizens, civil society and municipal staff in assessing the Strengths, Weaknesses, Opportunities and Threats (SWOT) associated with meeting Vizag’s envisioned goals and objectives. Results of the analysis are included in the Challenge Proposal appendices. This effort lead to the development of “pan-city” policies regarding improved access to water, low carbon mobility and energy.

Area Development Planning As a requirement of the national Challenge Proposal Process, the proposal entertained three candidate locations for district level Area Development Planning. The three districts were compared based upon their relative capacity to help GVMC achieve its overall goals. The area between central Vizag and the Beachfront was selected as the preferred district. Recommendations were formulated to enhance public spaces, streetscape amenities and traffic flow, as well as to increase access to public toilets and other social services.

Implementation Planning The Challenge Proposal also describes key implementation mechanisms that will be used to procure and construct recommended projects. The main implementation mechanisms include the establishment of a Special Purpose Vehicle (SPV) that acts in concert with GVMC offices to plan, procure and construct smart city development projects. The Special Purpose Vehicle will be a parent public company that connects nine SPV sub-entities, each tailored to specific project planning, coordination and implementation tactics. These “child” entities will be a combination of public and private ventures with a range of capacities to partner with the private sector. The public entities will plan projects, coordinate with central/state level authorities and execute

19 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report contracts. The private entities will mobilize capital from a variety of sources and will be awarded concessions by the parent SPV to implement projects and develop/manage infrastructure systems

The SPV system is intended to utilize the funding sources listed below.

Capital expenditures for Challenge Proposal projects to be funded through a combination of:

Equity • GVMC (grant under smart city program) • Government of Andhra Pradesh (matching equity)

Convergence (Other schemes/mission/program) • AMRUT • Swachh Bharat Mission (SBM) • Solar City Mission (SCM) • Integrated Power Development Scheme (IPDS) • Pradhan Mantri Awas Yojana (PMAY)

Leveraging (tapping other sources) • World Bank Loan (APDRP) • PPP (BOT) • PPP (Annuity)

4. Conceptual Foundation for the Evolution of Vizag’s Smart City Vision

The Smart City Master Planning and Sector Specific Infrastructure Project Plans for Visakhapatnam assignment will expand upon the vision set out in the successful Smart City Challenge Proposal in two ways: first geographically, to include the entire VUDA planning area, and second programmatically, to address regional social and economic aspirations within Andhra Pradesh State, India and South/Southeast Asia. The emerging Vision is described in specifics in the Vision Statement under separate cover. To develop this vision for the broader region, a Vizag-specific definition of “Smart City” was needed.

Definition of a “Smart City” for Visakhapatnam

Over the course of the initial group meetings with GVMC, VUDA and infrastructure providers, it was determined that for Vizag and its surrounding region, “Smart City” should not be an end in itself, but rather a means to achieving a new sustainable model of clean and diverse economic growth based on enhanced quality of life for residents, visitors and corporate citizens. In this way, “Smart City” systems, as well as their planning, procurement and implementation, act as catalysts that accelerate progress towards regional aspirations.

Goals and objectives

20 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report The primary goal of “Smart City” projects in the Greater Vizag region will be to improve livability for private and corporate citizens. The intent of these projects is to set in motion a virtuous circle of infrastructure investments, high-quality urban environment initiatives, investments and workface attraction, increased local government revenue and additional infrastructure investments. The forthcoming plans and projects are intended to catalyze sustainable, cyclical progress towards regional goals by promoting:

• Higher customer satisfaction and citizen buy-in • More responsive service delivery + smaller carbon footprint • Conservation and enhancement of natural and social resources • Lower marginal costs for improved services • Lower overall infrastructure development and operations costs for improved services • Closure of infrastructure gaps in the most intelligent way possible

Guiding Principles and Approaches

• Understand behavior patterns in order to address peak-use challenges • Enable feedback loops between infrastructures, utilities and customers • Bring people to services while at the same time bringing services to people • Track progress towards success with specific benchmarks and targets

When approaching the planning process and early project identification, the following system- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements:

• Get the most out of existing infrastructure systems and investments • Develop and use more storage to address peak-use constraints • Prioritize retrofit over redevelopment and greenfield expansion • Leapfrog over old unresponsive technologies towards selection of more efficient ICT- enabled delivery methods • Cultivate resilient, networked systems to build capacity and reduce vulnerability

Summary of validated goals and objectives

Throughout the initial group meetings, the above goals, objectives and guiding principles were presented, discussed and validated. In addition the following priority concepts had been requested and reiterated by GVMC leaders:

21 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Focus service infrastructure coverage enhancements primarily within the GVMC boundary to take advantage of economies of scale and to reach the most people with the least effort. • Conduct a land use and connectivity review at the scale of the VUDA geography to inform the forthcoming VUDA-sponsored regional masterplan update and ensure that development frameworks support complimentary growth at optimal locations throughout the region. • Benchmark Greater Vizag’s attributes against 1) Competing cities nationally and in Southeast Asia in order to demonstrate the comparative advantages of northern Andhra Pradesh, as well as 2) Global cities that exhibit economic and social characteristics desired by greater Vizag.

Summary of economic growth sectors to pursue

Based upon the advantages identified in the Smart City Challenge Proposal and initial industry interviews conducted during the kick-off mission, the following economic market sectors were identified for in-depth analysis of their growth potential and the enhancements needed to maximize that potential.

Logistics – The network of coastal ports, existing and proposed, and complimentary rail network create a compelling case for assessing the regional opportunity to establish a more robust logistics hub within South and Southeast Asia. Visakhapatnam port ranked fifth among Indian ports in gross cargo handled, according to the Indian Ports Association in 2015.

Healthcare- The hospital network within the GVMC represents a potential growth opportunity based upon proximity to medical colleges, existing market for providing tertiary care services to people from outside the region and increasing demand associated with an increasing regional population.

Information Technology- The apparent success of the IT city in the northern portion of the GVMC coupled with previous IT/knowledge economy growth in neighboring Hyderabad suggest studying the market offer of Vizag and its associated growth opportunity within the IT sector.

Pharmaceuticals- The success of the Jawaharlal Nehru Pharma City (JNPC) S.E.Z., connections to GITAM and Andhra University Pharma programs and available workforce suggest Pharma as a foundational element for growth.

Tourism- The region’s natural assets as well as existing cultural tourism opportunities can possibly be reinforced by enhancements to the beach tourism industry. There is significant potential to grow this sector based on the region’s abundant natural and cultural assets. Further study is needed to understand and inform how planning for transportation, communications/IT,

22 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report natural resource conservation, food and hotel sectors can align for optimizing economic, social and environmental outcomes.

5. Next Steps

The next two months represent a critical period for the study. On the one hand, the AECOM tea is refining the Vision for Vizag as a smart city, while at the same time completing some of the analyses that form the basis of that Vision. As the results of those analyses come to light, some of them will probably spark changes in orientation in the Vision, or at least changes in a corresponding road map that prioritizes major actions and explains when certain measures are recommended for action in relation to others.

Another round of stakeholder consultation will be carried out by the AECOM in late April 2016. Meetings with community groups, non-governmental organizations, other civil society groups, and representatives of the business community will provide stakeholders with the chance to review and comment on the revised Vision for the future of Vizag, in a forum-type setting. The comments received from stakeholders will be incorporated into the version of the Vision that will be presented to GVMC and A.P. State government in May 2016.

A household survey began the last week of April and was completed in May in order to capture the needs and perspectives of a diverse set of Vizag households. The review of the growth potential of key economic sectors will also be completed in May. These are the two main activities in Task 2.c., Socioeconomic Profile.

The first round of benchmarking, identification of key performance indicators and gap analysis — which are Task 2 activities — will also take place in May. The results will be incorporated into the Vision Statement that the AECOM team will present in Vizag during the second half of May.

The group of AECOM team specialists will be present in Vizag to key stakeholders over the period May 15-25, 2016. Prior to arriving in Vizag, members of the AECOM team will meet at AECOM’s office in Delhi to prepare for the second mission.

In June, the team will prepare the overarching strategy for smart city development (Task 3) as well as the draft guidelines for energy, water and transportation projects (Task 4). In July the AECOM team will return to Vizag to review the guidelines with counterparts in GVMC, Vizag District and other infrastructure service providers. The action planning for two projects (Task 5) will also be carried out in July. The Final Report (Task 6) will be submitted in August 2016.

The timing of Phase I implementation is shown in the chart below:

23 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

24 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Annexes (not reproduced here; please see original deliverable):

A List of participants at meetings and focus groups

B Notes from group meetings

C Notes from individual meetings with key informants

D PowerPoint presentations from Kickoff Meeting and Wrap-up Meeting

25 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Task 2. Review and Analysis of Existing Conditions and Corresponding Best Practices

26 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam

Task 2 Task 2: Existing Conditions Analysis and Best Practices Report

August 5, 2016

27 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents:

1. Introduction and Background …………………………………………………………..29

2. Review of Existing Reports and Plans …………………………………………………..30

3. Analysis of Public Service Delivery……………………………………………………..38

4. Socioeconomic Profile…………………………………………………………………...69

5. Best Practices ……………………………………………………………………………79

6. Baseline Gap Analysis …………………………………………………………………101

7. Key Performance Indicators……………………………………………………………122

Annexures………………………………………………………………………………131

28 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 1. Introduction and Background

The AECOM team, including partner firms IBM and KPMG, is carrying out the assignment ”Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam” on behalf of the Government of Andhra Pradesh (USTDA financing). With a view to promoting the development of Visakhapatnam (“Vizag”) into a smarter city, the assignment includes baseline analysis, formulation of a development strategy and guidelines, preparation of a smart city master plan, and feasibility analysis of smart city projects. It is anticipated that the work will be completed over three 5-month phases, as follows:

• Phase 1: Baseline, Smart City Development Strategy and Action Planning for Two Smart City Projects • Phase 2: Preparation of the Smart City Master Plan • Phase 3: Implementation Plan and Feasibility Studies for Four Smart City Projects

Phase 1 was contracted on February 12, 2016 and is currently underway. Phase 1 includes six tasks:

This report describes the work done in April and May 2016 on Task 2, Review and Analysis of Existing Conditions and Corresponding Best Practices.

The AECOM team participated in Mission #2 in Delhi and Visakhapatnam from 12 – 24 May 2016. During this period the team conducted focus group sessions with key municipal, private sector, NGO, and citizen stakeholders around shared interests in urban development, transportation, health care, energy infrastructure, water infrastructure, education, information and communications technology, resilience and disaster management, economic development, and ecology. Team members also performed site visits throughout the VUDA region to the proposed airport site, south to the industrial estates, through the port and surrounding the naval base grounds, as well as to Bheemunipatnam, hills, settlements, and regional tourism attractions. Based on these interactions, team members revised the Smart City Visakhapatnam Vision statement and presented regular updates to Municipal Commissioner Pravin Kumar for his feedback.

29 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 2. Review of existing reports and plans

The consulting team reviewed relevant local, regional and state level reports and plans that can inform later master planning and implementation planning phases. The following chapter summarizes the relevant context and proposals from those documents.

GVMC City Development Plan – Greater Visakhapatnam: Visakhapatnam City Development Strategy and Slum Upgrading Action Plan (Cities Alliance P095174)

Chapter I: Introduction

• Basic geography: hills, coast, habitat type, ocean shelf • DFID - funded slum strategy and failures require focus on capacity and maintenance • Low score on Human development comparisons in India and with other global south leading cities. • Based on previous City Development Strategy (2005) and under Jawaharlal Nehru Urban renewal Mission (JNNURM 2005), the GVMC is required to prepare a City Development Plan to ensure a planned growth of the city and to make Visakhapatnam as a better alternative to the mega cities, guided by a shared vision for city’s development. • Emphasizes priority issues, local livability, and requirements for enhancing city productivity, reducing poverty, improving urban governance, and enhancing financial sustainability over a twenty year time horizon. • Scope: assess existing situation and identify gaps in service delivery, outline issues faced by the city’s poor, prepare a vision and sectoral strategic framework, formulate a city investment plan, and focus on reforms and interventions. • Key recommendation was preparation of Slum Upgradation Action Plan with City Alliance • Consultative and participatory processes build on Andhra Pradesh Urban Services for the Poor (APUSP 2002), Andhra Pradesh Urban Reforms and Municipal Services Project (APURMSP 2009) and Rajiv Nagara Bata (RNB 2005) projects.

Chapter II: Demography, Economy and Land Use

• GVMC has grown faster than Mumbai, Kolkata, Chennai and Hyderabad between 1991 and 2011 at 37.11%, with 20% estimated to migration and 47% to jurisdictional boundary changes. • Poor service delivery outcomes linked to poor accountability from overlapping functions, roles and responsibilities within the GVMC institution and ineffective coordination between state and city level agencies. • This calls for integrated planning of Greater Visakhapatnam with a focus on equitable service provision and access to all sections of the population. • The GOAP Industrial Development Policy (2005) sought to boost investment in the state through industrial estates, export oriented zones, EXIM parks, with INR 20,000 crores invested in Visakhapatnam. • GVMC has undertaken initiatives to improve transport infrastructure, public utilities and amenities to international standards within region to support economic growth.

30 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • 30% of 344,729 (2001 census) workforce is in services sector, 20% in primary sector, 13% in manufacturing, and 13% in transport, storage and communications. • 1,775 industrial units with INR 8022 crores investment of which almost all go to large and medium enterprises employing 68% of industrial workers. Of 55 large and medium manufacturing units, 8 are in the public sector, 42 in private sector and 5 in cooperative sector. • Since 1933, the Visakhapatnam harbor has benefitted from interior protection from the Dolphin’s Nose and a low 1.83 meter tidal range and a deep natural draw of 15.3 meters. The port handled 16 percent of the 281 million tons of marine cargo in India (2005). • Visakhapatnam Port claims a major portion of the 70%of export value of Indian fishing products produced by Andhra Pradesh. • Dedicated tourist transits have been proposed: Buddhism and Hindu religious sites transits; coastal recreation and marina transit; eco transits with marshes, zoological parks, reserve forests, the Eastern Ghats and beaches. Integrated heritage conservation planning is required in coordination with the Archaeological Survey of India and Archaeological Department of Andhra Pradesh. • The Government of Andhra Pradesh encourages the use and development of Special Economic Zones (SEZs) and the Export-Import Park (EXIM). • The GOAP and GVMC encourage an increase in non-agricultural labor in Visakhapatnam and recognize the support that educational and technical institutions provide for entrepreneurship and innovation.

Chapter III: Governance Frame Work and Reforms

• The Visakhapatnam Municipal Corporation Act 1979 prescribes agency for GVMC to execute “obligatory” functions such as trunk infrastructure, maintenance, and public health; and “discretionary” functions such as child welfare, urban forestry, education, and housing for the poor. The 12th Schedule of the 74th Constitution Amendment Act added slum upgradation, vital statistics, and additional public infrastructure and amenities. 2004 additions include planning for social and economic development, poverty alleviation, and promotion of cultural and aesthetic assets. There are several issues in the transfer of functions of state agencies to the local bodies. Transfer of functions need follow up legislation, institutional capacity of the local bodies, financial resources, etc., which come in the way of transfer of these functions to the urban local bodies. It is also expected that the transfer of functions will be followed by transfer of officials as well as resources. However, transfer has not happened in the state thereby leaving the transferred functions only on paper. • “Critical” infrastructure services are provided by the GVMC such as stormwater drains, water supply, sewerage, solid waste management, municipal roads, and street lighting. Fifty percent of water supply activities, operations and maintenance (O & M) are outsourced to the private sector. Sewerage and street lighting O & M are also outsourced, and fifty percent of cleaning and disposal of solid waste is administered through PPP or outsourced. • A number of state-level government and parastatal agencies operate within the GVMC area in the planning and delivery of various services. The quality of service delivery suffers due to the lack of mechanisms for inter-agency coordination and institutional roles and responsibilities. The 74th Constitutional Amendment (74th CAA 1992) provides guidance to minimize ambiguity by devolving decision-making to municipalities; however local bodies 31 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report often have no voice or control. Many agencies are poorly positioned to understand linkages between various urban functions, leading to inter-agency externalities. Managerial coordination, accountability, autonomy of public services delivery, and performance-based understandings between the GVMC and service delivery agencies are required to link service targets and outcomes. City competitiveness and economic development, particularly in benefitting the poor, is hampered by service delivery roadblocks. • Institutional and governance reforms are required in monitoring and evaluation, strengthening local government capacities by outsources project management and M&E functions, and to establish appraisal institutions and process. At the state level, 74th CAA – based and pro-poor reforms are recommended, namely through projects of urban good governance, the E-seva Saukaryam, one-stop city civic service centers, the creation of a systematic geodatabase, tariff revisions, augmentation of water supply, and PPP formulation. • Increased private sector participation is also advised. The involvement of Resident Welfare Associations has been initiated to improve primary level sanitation and parks maintenance through EXONORA. The Prakruthi organization, consisting of NGO and GVMC departmental representatives, has focused on tree plantings and the maintenance of vegetated areas. Major parks are maintained by the GVMC while maintenance in smaller parks is encouraged through PPPs. The challenges of increased urbanization, a growing information sector, infrastructural upgradation, and a need for additional municipal revenue require the study and formation of new institutional arrangements. • The use of vernacular language, large-scale data-warehousing and access, public GIS databases with citizen grievance logging, the publishing of GVMC white papers, capacity- building exercises between and within the GVMC and civil society, and the establishment of an institutional knowledge bank would aid in achieving these reforms.

Chapter IV: Municipal Infrastructure

• Visakhapatnam suffers chronic water supply shortages due to insufficient infrastructure and distribution networks, a lack of water and energy audits, a lack of reuse facilities, and a lack of stormwater drains and stormwater drain usage. Water sources are monsoon-fed and not perennial, placing additional pressure on supply and usage regulation during low-rain years. Metering along the network and at connections; tariff structures; and improved capture, storage, release, and reuse strategies can contribute to better water supply, efficiency of use, and access. • The GVMC has initiated public sector participation in strengthening the sewerage system, which in 2005 extended to only 10.5% of the GVMC area. Key challenges lie in increasing the coverage area, developing a comprehensive master plan for sewerage, fostering data creation on sewerage performance, effective communication strategy, energy conservation, the discharge of untreated sewage into water bodies, and low rates of grey water recycling. • Effective stormwater drainage is strained by the volume, intensity, and frequency of monsoon rainfall; the saucer-like terrain; and the encroachment of drains and drainage areas by settlement fueled by rapid urbanization. Proposed improvements include deepening and widening of drainage channels (“geddas” or “nalas”), construction of retaining walls, improved design coordination with road and transportation planning; and settlement and waste behavior reforms.

32 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Road-based transportation growth has been dominated by the beachfront, Northern hill flank, and intra-city transportation arteries. Transportation systems and traffic management is managed by a number of state and municipal level agencies with functional and spatial overlap and fragmentation. The transport of heavy cargo must be rationalized and streamlined to reduce significant environmental degradation, commuter congestion, and safety concerns. The Ministry of Urban Development recommends that public transit options account for a minimum 50% share of trips in Visakhapatnam; as of 2005, only 20% of rides utilized public transit. Other opportunities lie in integrated land use and transportation planning, platforms for institutional accountability, and awareness and compliance for traffic regulations. • The Ministry of Environment and Forests notified the Municipal Solid Wastes (Management and Handling) Rules in 2000 to guide facility design. Municipal solid waste is suitable for thermal chemical conversion and associated energy generation processes. There is no engineered landfill site in the GVMC area; however the GVMC encourages the setting up of private processing plants, land fill sites and facilities. Effective awareness and participation in waste segregation programs, user charges, integrated treatment, and the scientific closure and monitoring of dump sites are key issues.

Chapter V: Basic Services to the Urban Poor

• More than 20% of GVMC residents live in settlements categorized as ‘slums,’ defined as residents living with low to no access to physical and social infrastructures, socio-economic needs or sustainable livelihoods. ‘Slum’ lands are categorized by GOAP as ‘objectionable’ and ‘unobjectionable,’ depending on location and land use. • The 32 villages recently incorporated into the GVMC are majority poor, with low access to core trunk infrastructures. • Several urban poverty programs are delivered as central, state, and training programs. Forty percent of net municipal resources are allocated in providing services to the poor and in slum locations. The GVMC Urban Community Development Department (UCDD) is the lead implementation agency for coordination and delivery of slum improvement projects and collaborates with neighborhood committees, resident welfare organizations, mahila mandals and youth clubs. • Overlapping jurisdiction and absence of coordination programs and activities is a serious problem, and requires integration and articulation of roles and linkages. • The structure and regulation of housing within the formal market does not produce livable housing choices for the poor, making non-state planned settlements, many of which do not have land tenure, the norm for meeting this population’s needs. • The “Rajiv Gruha Kalpa” scheme (2007) has been designed by GOAP to increase the availability of housing for poor and low income groups. • Key challenges include the lack of dependable data, poor land tenure, infrastructure deficiency, non-state planned settlements, weak municipal resource base, a lack of coordination and convergence, and the general vulnerability of the people and communities at risk.

33 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Chapter VI: Physical and Environmental Aspects of the City

• Visakhapatnam is prone to water, air and soil pollution. Air pollution correlates with automobile use with peaks in the mid-morning and late afternoon, and higher concentrations in summer than in winter. Recommended improvements include traffic regulation, bus parking bays, the improvement and construction of pedestrian squares, and the use of flyovers. • In addition to vehicular use, the cargo load at the port, iron ore conveyor belt, and storage of poisonous gases are also significant sources of airborne contaminants. • Ground water, surface water, and nonpoint source pollution are rampant. The regional topography produces “mountain valley effects” that prevent the dispersion of airborne contaminants. • The city’s coastal region is prone to an average of 4-5 cyclone events per year from the southeast with the highest waves experienced April – September. • The long coastline provides opportunities for recreation, entertainment and relief from the heat and humidity. • The GOI Coastal Regulation Zone is defined as a no-build zone 500 meters inland from the high tide line. The Beach Road is currently used as the CRZ notification line. • Sea level rise, the monsoon climate, cyclones, floods and droughts are all vulnerabilities.

Chapter VII: Vision Formulation

• The city’s vision has been written as follows: To become an economically vibrant, safe and inclusive city providing the best social and physical infrastructure facilities for its residents, businesses and visitors. • To boost the economic development in the City by 2030 by ensuring best business environments & good governance, an optimum mix of industrial & service sector, and the best labor force in the Country to develop industrial/ business /residential areas as per the Master Plan. • To provide 24 hour water supply to each and every house with metering along with sewerage connection by 2015 and to put a modern solid waste service in place by the above period. • To provide best civic infrastructure to make the best transportation system in India by 2030 along with a total upgrade of poor settlements with proper drainage. • To create a social infrastructure with premier health & educations facilities by 2021 with safety and security. With the above vision in mind, the GVMC has formulated an agenda to reach the above goals within the specified time. • Projects are prioritized sector-wise over the short term (2005-2008) and long term (2008- 2012) through stakeholder discussions in working groups facilitated by technical experts. The sectors are water supply, sewerage, solid waste management, traffic and transportation, stormwater drainage and urban poverty. • Water supply has been in decline due to the reduction of inflows and impoundments, and limited extents and piping of the water supply network. Water is supplied between 45-60 minutes daily on average for those with access. A lack of metering and use of widespread piracy also challenge the ability to evaluate service delivery and efficiency effectively.

34 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • GVMC aimed to provide 100% water supply coverage by 2016 and increase its capacity 165 lpcd by 2021. Metering for 95% of customer connections was planned by 2011. Specific programs are outlined within the document. • Sewerage coverage is extremely low, with high health impacts on the urban poor. The discharge of untreated sewage into streams pollutes water bodies with low use of wastewater recycling or reuse. • GVMC aimed to enhance sewerage coverage to 45% of its area by 2011, 90% by 2016 and 95% by 2021. Additionally by 2021, GVMC aimed to treat and dispose 95% of wastewater and recycle and reuse 70% of its wastewater. 100% O&M cost recovery was to be achieved by 2011. Specific programs are outlined within the document. • Stormwater drainage efficacy has been limited by rapid urbanization, periodic maintenance, encroachment and obstruction, and waste disposal within water bodies and along their banks. • GVMC aimed to eliminate flooding by 2016, with the coverage and enhancement of stormwater drainage to 50% of the population by 2011 and 100% coverage by 2016. Specific programs are outlined within the document. • A comprehensive traffic and transport study at the GVMC scale recommended GIS and GPS management, the dis-incentivizing of private transport during peak hours, an urban transportation development fund, and increase in public transit fleets and share of roadways, the introduction of a metro rapid transit system, the streamlining and regularizing of heavy cargo transport, improvements of junctions and traffic signal usage, SCOOT area traffic control, improved road markings and signage, parking management, the construction of parallel roads when possible, and road widening. • Solid waste management goals include awareness building and community involvement of source segregation of waste, to limit waste production, to integrate waste treatment, to create a regional sanitary landfill facility, to process waste into compost and energy projects, and to accommodate more transfer stations. • The GVMC’s Poverty Reduction Strategic Plan aimed to end the need for slums by 2021, with universal access to qualitative and affordable basic services, 100% literacy, universal primary health care, livelihoods, and secure tenure and affordable housing. The GVMC planned to accomplish this through the provision of land tenure security, community empowerment, linking livelihoods to the city’s economy, PPP-based housing development, the formulation of a notification and de-notification policy, relocation of residents from hazardous or vulnerable areas, and the provision of basic physical and social infrastructures.

Chapter VIII: City Investment Plan

• The City Investment Plan estimates the quantum and level of investment required to implement the strategic sectors of the City Development Plan. Additional details are tabulated within the document.

Chapter IX: Investment Finance Plan

• The Investment Finance Plan outlines the receipts and expenditures in the provision of serves from 2001 – 2006.

35 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Policy context:

National policies

• GOI Make in India (National Manufacturing Policy 2011) • GOI Digital India 2015 • GOI Skill India 2015

• GOI Start-Up India 2016 • GOI MSME Schemes 2014 • GOI Stand Up India Loan Scheme 2015

• GOI 73rd Constitutional Amendment Act 1992 • GOI 74th Constitutional Amendment Act 1993 • GOI Right to Information Act (RTI) 2005

• GOI National Forest Policy 1988 • GOI Disaster Management Act 2005 • GOI Coastal Regulation Zone Notification 2011

Other existing central policies provide industry-specific guidance and are relevant in integrating the Visakhapatnam Smart City Master Plan into national agendas

• GOI Internet of Things Policy 2015 • GOI Information Technology Policy 2012 • GOI Micro, Small and Medium Enterprises Policy 2015 • GOI Ministry of Shipping: Sagarmala 2016 • GOI Solar Power Policy • GOI Special Economic Zones Act 2005

National urban policies

• GOI India Smart Cities Challenge 2015 • GOI Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2015 • GOI Jawaharlal Nehru National Urban Renewal Mission (JNNURM) 2005 • GOI Housing for All 2015 • GOI Rajiv Awas Yojana (RAY) 2013 • GOI Swachh Bharat (Clean India) 2014

Andhra Pradesh policies

• GOAP 5 Grids • GOAP 7 Missions • GOAP 4 Campaigns

36 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • GOAP ICT Policy 2014-2020 • GOAP IT Policy 2014-2020 • GOAP Electronics Policy 2014-2020 • GOAP Tourism Policy 2015-2020

• GOAP Industrial Development Policy 2015-2020 • GOAP Automobile & Automobile Component Policy 2015-2020 • GOAP Biotechnology Policy 2015 • GOAP Fisheries Policy 2015 • GOAP Food Processing Policy 2015-2020

• GOAP MSME Policy 2015-2020 • GOAP Innovation & Start-Up Policy 2014-2020

• GOAP Affordable Housing Policy, 2015

• GOAP Municipal Administration and Urban Development Building Rules, 2012 • GOAP Urban Areas (Development) Act, 1975 (provides scope and agency for VUDA) • GOAP Water (Protection and Control of Pollution) Act, 1974 (provides scope and agency for GOAP Pollution Control Board)

Visakhapatnam policies

• VUDA Revised Master Plan for Visakhapatnam Metropolitan Region 2021 • Cities Alliance Visakhapatnam City Development Strategy and Slum Upgrading Action Plan P095174 • VUDA Handbook on Layout Approval Process, 2015-2016 • VUDA Handbook on Coastal Regulation Zone Notification, 2011

• Visakhapatnam Municipal Corporation Act 1979 Prescribes agency for GVMC to execute “obligatory” functions such as trunk infrastructure, maintenance, and public health; and “discretionary” functions such as child welfare, urban forestry, education, and housing for the poor.

International guidelines

• ISO 26000 Guidance on Social Responsibility 2015 • ISO 9000 Quality Management 2015 • UNESCO World Heritage Convention: Cultural Landscapes 2008

37 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 3. Analysis of public service delivery

Through dialogue with local infrastructure managers, interviews with utilities and field observations, the consulting team assessed the delivery of public services focusing on energy, water, mobility and ICT infrastructure systems. The following chapter summarizes the components of each system and highlights the opportunities for enhancement.

Potable Water

Responsible organizations

• GVMC: Greater Visakhapatnam Municipal Corporation • VUDA: Visakhapatnam Urban Development Authority • VIWSCO: Visakhapatnam Industrial Water Supply Company

Supply, demand and coverage levels

Table 3.1: Water supply and demand (MGD)

Requirement Bulk Total Present Zone Year Population @ 150 LPCD demand demand supply Deficit 1 2015 2,035,000 67.15 18.00 85.15 64.00 21.15 2 2020 2,328,240 76.82 28.00 104.82 64.00 40.82 3 2040 3,519,930 116.14 38.00 154.14 64.00 90.14

Table 3.2: Smart city benchmarks vs. current service levels

Parameter Benchmark for Smart City Current level 24x7 water supply 100% of area 0% of area % of HSCs 100% 85% Per capita water supply 150 LPCD 120 LPCD % metered connections 100% 23% % of efficiency in collection 99% 99% of water-related charges

Methods of monitoring systems

• Manual checking

Methods of communicating with customers

Potential communication methods include:

38 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • The Municipal Website • All municipal social media channels, including Facebook and/or Twitter • Municipally controlled mobile applications • Municipal advisory boards or agencies that service the socially vulnerable populations within the community. • Community based networks, including but not limited to Stake holders Consultation, Ward Council member organizations, and civic associations.

Methods of coordination with other service providers

Potential services management integration can bring all providers on a single platform with the following methods:

• Municipally controlled mobile applications • Open forums and Workshops

Capital and operational funding methods

• Central and State government funds, International Funding Organizations (IFOs)

Constraints hindering improved service

• Additional sourcing required • Non metered water supply • Non-Revenue water

Existing system analysis

The baseline information on various sources of water supply to GVMC area, source canals, raw water transmission mains, water treatment plants, zone-wise ELSR’s/GLSR’s data and major clear water trunk mains and distribution network is available with GVMC.

As per the details provided, presently GVMC is supplying 286 MLD of water to the Visakhapatnam region, which includes 74 MLD to bulk consumers. Of this amount, 246 MLD of water is being drawn from seven surface water sources and 30 MLD of water is drawn from 4 sub-surface sources (Infiltration wells in river course/near vicinity of reservoirs) apart from 10 MLD of ground water drawn through bore wells (pilot water supply schemes). Zone-wise information with required data and plans are available with GVMC.

39 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Source: GVMC

The various sources of water supply to the main Town Service Reservoir (TSR) of capacity around 66 MGD is shown in the figure below.

Source: AECOM, GVMC

40 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The existing surface sources of raw water to GVMC is the Godavari River located around 56 km from Yeleru reservoir. This is connected to YLMC (28 MGD). Other sources to TSR are Raiwada (16 MGD), MGR (9 MGD) Thatipudi (9 MLD), Gosthani (4 MGD), & Mudasarlova (0.4 MGD) Reservoirs.

The sub surface sources (infiltration wells) of raw water to GVMC are Boni (16.36 MLD), Samayyavalasa and Nagaripalem (4.55 MLD) in Gosthani course, MGR downstream infiltration wells (1.82 MLD), infiltration wells in Sarada River (5.9 MLD).

The pilot water supply schemes (ground water – 9.77 MLD) with bore wells are also contributing to GVMC water supply.

Present water supply coverage is depicted in the figure below.

Source: AECOM, GVMC

41 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Water supply schemes in GVMC

The figure below shows the different areas in which water supply is divided. The areas are as under:

1. Old town area 2. Central area 3. Gajuvvaka area 4. 32 Peripheral areas

Source: GVMC

Distribution zones

The GVMC is currently being divided into eight water supply zones.

Prior to 2005, Visakhapatnam Municipal Corporation area was divided into four zones: Old city, North East Central City, North West Central City and South West Central City.

The erstwhile Gajuwaka Municipality and 32 surrounding peripheral panchayats merged into GVMC area in 2005. Therefore addition of 2 water supply zones viz., Gajuwaka Zone & 32 42 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report peripherals (there are further 3 Sub zones in Gajuwaka region, Pendurthi region & Maduravada region).

Bheemili & Anakapalli Municipalities and 5 surrounding panchayats has been recently merged into GVMC, thereby addition of two zones viz., Anakapalli and Bheemili zones.

Analysis of water supply service levels

The water supplied in the region is analyzed on various parameters as listed below.

Table 3.3: Status of Water Supply service levels

Sl. No. Indicators Present status MOUD Benchmark 1 Coverage of water supply connections 65% 100% 2 Per capita supply of water 114 LPCD 150 LPCD 3 Extent of metering of water connections 20% 100% 4 Extent of non-revenue water 40% 20% 5 Quality of water supplied 100% 100%

A detailed analysis of this Gap in the present status and the MOUD benchmark is provided below:

1. Coverage of water supply connections: 35%

The existing 35% gap in coverage of water supply connections is targeted to be reduced to 25% on completion of ongoing JnNURM projects (which are nearing completion) and will be further reduced to 15 % on completion of 1st year investment plan under AMRUT.

2. Per capita supply of water: 36 lpcd

The 24% gap (36 LPCD) in per capita supply of water is due to non-realization of allocated quantity of raw water in source canals due to transmission losses (40 to 50%) Viz., Raiwada and Yeleru Canals which is resulting in non-utilization of existing Water Treatment plants to their installed capacities.

3. Extent of metering of water connections: 80%

The 80% gap in extent of metering of water connections is being addressed in a phased manner as it is directly dependent on the public acceptance and stakeholders’ consideration.

4. Extent of non-revenue water: 20%

The 20% gap in NRW is due to 7963 Nos of Public stand posts existing in GVMC, to the water tankers supply being made to the unserved and ill served areas of GVMC where there is no

43 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report existing piped water supply, and due to losses in the system and weaker section housing colony non-bringing them in to water tax.

5. Quality of water supplied: No gap

Water supply distribution network

The total length of water supply distribution pipe line laid in the city is 1,971.6 km. The water pipelines have been laid by GVMC through various programs. Total length of roads in GVMC is about 3,050 km and all the streets are not provided with pipe lines.

The pipe materials used in distribution lines are DI, CI, GI, MS, RCC, AC and HDPE. Not all the areas in the region have a water distribution line. Hence, the zone–based details of street length with and without water distribution lines in the Table 1.4.

Water quality at the customer tap does not meet standards, mostly due to intermittent pressure and the lack of a main flushing program. Villagers and community leaders agree that the lack of clean drinking water is the number one problem for both communities. Drinking water sources in the villages are a piped drinking water supply, hand pumps, and dug wells. The piped water supplies, as well as the traditional drinking water sources, were observed to be contaminated with bacteria.

44 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Table 3.4: Existing Water Supply Network by Zone

S. Zone Total Street Street length Street length No. Length with water without water distribution distribution pipe line pipe line Km Km Km 1 Old City 72.8 67 5.8

2 North East Central City 403.27 373 30.27

3 South West Central City 201.5 136 65.5

4 North West Central City 267 232 35

5 Gajuwaka 643.79 489 154.79

6 32 Peripherals - - -

a Gajuwaka region (16 pan) 244.6 61 183.6

b Pendurthi region 228.4 152 76.4

c Madhuravada region 491.75 245 246.75

7 Bheemili 184.19 85 99.19

8 Anakapalli 312.7 131 181.7

Total 3050 1971.00 1079

The existing system will not be able to address the gaps in water supply and improve coverage of network unless the above ongoing projects are completed and newly proposed projects now under consideration for sanction are taken up. An additional 1,079 km of network has been proposed under JNNURM (under construction), ADB projects, and AMRUT. On completion of the above projects, the per capita supply will be increased to 150 LPCD. The coverage of water supply connections will be increased from 60 to 85% and collection efficiency will be increased further from the present base line

Source of water and water treatment system

The typical water treatment (consisting of clarifloculation, rapid sand filtration and chlorination) is being provided to Godavari, Yeleswaram, Raiwada, Thatipudi, Mehadri Gedda, Gambheeram & Mudasarlova sources. According to the details available, 246.23 MLD of water is required to

45 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report be treated daily. As per details, 360 MLD capacity water treatment plants exist in the city as of now. In addition to the above, another 127.00 MLD capacity treatment plants (2 nos.) are taken up under JnNURM and are nearing completion.

In Bheemili and Anakapalli, area water received from infiltration wells are currently being supplied after chlorination. Basic level water treatment is being proposed, considering water is received through infiltration wells for these areas/zones. Also, Bheemili and Anakapalli surface water based water treatment schemes are proposed under ADB programs

It is important also to have a look upon the representation for the total number of households (HH) in each zone, and the number of HH with and without water tap connections in the Table 1.5.

Table 3.5: Zone Wise Coverage of Households

S.No Zone Total No of Households with Households Households Water tap without Connection water tap connections 1. Old City 20,156 14349 5807 2. North East Central City 113405 101451 11954 3. South West Central City 19687 14959 4728 4. North West Central City 70541 41330 29211 5. Gajuwaka 73823 51454 22369 6. 32 Peripherals - - - a) Gajuwaka region (16 Pan) 24702 2182 22520 b) Pendurthi region 37500 11865 25635 c) Madhuravada region 59316 23039 36277 7. Bheemili 13500 5600 7900 8. Anakapalli 19499 4900 14599 Subtotal 4,52,129 2,71,129 1,81,000 Addition for Weaker section not 25000 (-) 25000 under tax net but provided have water connection Total 2,96,129 1,56,000

46 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Storage of water

Based on the details available, it is noted that the total water storage capacity in the City is about 129 MLD. There are a total number of 317 reservoirs in GVMC area. Out of those, 91 ML is the total GLSRs storage capacity and 38 ML is total storage capacity of ELSRs.

The increase in storage capacity of Elevated Service Reservoirs (ELSRs) and Ground level Service Reservoirs (GLSRs) nearing completion in the ongoing projects is around 40.5 ML.

Total Storage reservoirs storage capacity is about 169.5 ML.

Going forward, the raw water storage capacity needs to be upgraded in some areas to meet summer demand/supply. However, in the case of perineal rivers sources, dedicated raw water pipes proposed in various projects shall not be necessary.

Required additional storage reservoir capacity at Kondkarlava and Gopalpatnam shall be undertaken, as well as construction of the Annicut/check dam at Gosthani River at Boni head works.

Water is being supplied to consumers through elevated service reservoirs and ground level service reservoirs at various locations in respective water zones.

Presently, the GLSRs and ELSRs storage capacities are sufficient to meet demand.

47 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Wastewater

Responsible organizations

1. GVMC: Greater Visakhapatnam Municipal Corporation 2. VUDA: Visakhapatnam Urban Development Authority

Supply, demand and coverage levels

Table 3.6: Demand Gap analysis

Component Existing Ongoing Total 2021 2021 projects capacity demand gap

Sewerage network (km) 205.15 321.2 526.35 3415 2888.65

No of Households 83,468 1,00,000 1,83,468 4,23,468 24,00,000 covered by system

Table 3.7: Status of sewerage network and Service Levels Sr. No. Indicators (as per SLB framework) Existing MOUD Service Level Benchmarks 1 Coverage of latrines (individual or community) 100% 100% 2 Coverage of sewerage network services (House 19.56% 100% Hold services) 3 Efficiency of collection of sewerage 26.64 100% 4 Efficiency in Treatment: Adequacy of 47 100% sewerage treatment capacity

Table 3.8: Gap in these service levels with regard to benchmarks prescribed by MOUD:

Sr. No Indicators (as per SLB framework) Gap

1 Coverage of latrines (individual or 3.21% community) 2 Coverage of sewerage network services 80.44% (House Hold services) 3 Efficiency of collection of sewerage 73.36% 4 Efficiency in Treatment: Adequacy of 53% sewerage treatment capacity

48 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report The operation and maintenance cost of the initially installed 7 MLD Aerated lagoon STP is very high, and in view of this, the STP was replaced with 38 MLD STP taken up under phase III to utilize the recycling of extended aeration process /activated sludge and diffused aeration techniques.

To recover operation and maintenance costs of the scheme, it was initially proposed to sell the 63 MLD of treated water from STPS duly installing tertiary treatment plant.

Treated water from the tertiary treatment plant will be sold to industries for their demand. Also, the GVMC will take additional charge of sewage flows from 1/3 of household water supply charges to take care O&M of STPs as in prevails in GVMC sewer covered area.

The innovating solution explored for recovery of O&M cost is the sale of treated water for industrial demand.

By installing tertiary treatment plants, recycle and reuse of water will occur. Initially, it is proposed to recycle and reuse 63 MLD of water from 25 MLD STP at Appughar and 38 MLD STP at old city.

Also, with STP new plants with 108 MLD capacities under construction at Narava, selling treated sewage effluent for industrial purposes is proposed. With the 13 MLD STP in Mudasarlova, treated sewage is currently being supplied to the nearby Industrial area and golf course.

Methods of monitoring systems

• Manual checking

Potential communication methods include:

• The Municipal Website • All municipal social media channels, including Facebook and/or Twitter • Municipally controlled mobile applications • Municipal advisory boards or agencies that service the socially vulnerable populations within the community. • Community based networks, including but not limited to stake holders consultation, Ward Council member organizations, and civic associations.

Methods of coordination with other service providers

Potential services management integration can bring all providers on a single platform with the following methods:

• Municipally controlled mobile applications • Open forums and workshops 49 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Capital and operational funding methods

• Central and State government funds, International Funding Organizations (IFOs)

Constraints hindering improved service

• Holistic approach and planning required • Proper ROW and space allocation measures to be taken up • Condition assessment survey and existing system to be provided

Existing system

The sewage network system of GVMC is divided in to 20 Zones (excluding Anakapalli and Bheemili). Total network is to be completed in 9 phases. Presently 31.79% of the population is covered with an underground drainage (UGD) network and on completion of current ongoing projects, 52% of population will be covered with an UGD network.

Detailed plans and information regarding UGD are available with GVMC for the existing system network in central zone, Old city area and projects under implementation. DPRs are being developed for a portion of the remaining zones through external consultants appointed by GVMC. The Anakapalli and Bheemili non UGD system already exists.

Out of 20 zones/blocks, 9 zones are completed, 5 zone/blocks are covered in JNNURM and work is in progress. 3 blocks DPR prepared, in the Bheemili and Anakapalli area, are in the process of preparing DPRs through external consultants by GVMC.

As per the figure below, the GVMC divides the city into 19 sewerage blocks. The statuses of the blocks are as follows:

• Completed - 9 Blocks; In progress - 5 Blocks; To be taken up - 6 blocks • Existing Sewer Network around 496 km. • Number of Sewerage Connections approximately 91,000 (New connections under progress) • Total Area of Sewerage covered corresponds to 61% by population • Number of STPs functioning (2 Nos.) of capacity 63 MLD (14 mgd)

50 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Source: GVMC

Presently, the sewerage system covers about 26% of the area with a sewerage network along with decentralized STP, while some areas have individual septic tanks and no regularized way of collecting septages.

Some area for regularizing septate management STP construction work is in progress (i.e. Anakapalli). As per the UGD scheme of GVMC a Total Sewerage Network coverage is planned in 9 phases. At present, 3 phases have been completed and Phase 4 is in progress.

On completion of ongoing schemes, 14 out of 20 blocks will be covered with UGD 52% coverage (blocks 1-11, 14, and 15). For the remaining 3 blocks (12, 13, 16) DPR’s have been submitted to the Government for approval. DPR’s are under preparation for the remaining 3 blocks merged villages (16, 17, and 19) along with Anakapalli & Bheemili separately. The total number of households was 213,000 in year 2011, out of which 83,486 HSE existed, excluding the Bheemili and Anakapalli areas in which no sewerage system exists.

Sewerage network and collection of sewage

The area of the city that is covered by a sewerage network and the status of household connections in each zone are provided in the table below:

51 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Table 3.09: Zone Wise Coverage of Households

Zone No Total No of Households with Households with Households without Households Sewerage Network Septic Tank any outlets for toilets

All 436,300 85,357 336,943 14,000

Zoning information is not readily available with GVMC.

Coverage of sewerage

The details available mention that the UGD sewerage system coverage in areas are as low as 3% and is 5.7% based on the population in these areas.

With the ongoing projects by JNNURM, the UGD area under sewerage shall rise to 18%, serving 54% of the population in those areas.

It is also interesting to note the rise of population based on census for the year 2011 and estimated up to 2029. If the rate of household discharge is constant, the population trend shall require the STPs capacity to rise from 216.25 MLD to approximately 620.25 MLD.

Table 3.10: Population and Capacity of STPs required

Year Population Household discharge Capacity of STPs required 2011 17.3 lakhs 125 MLD 216MLD 2014 20.0 lakhs 125 MLD 250MLD 2022 29.6 lakhs 125 MLD 370MLD 2029 39.6 lakhs 125 MLD 495MLD 2044 49.6 lakhs 125 MLD 620MLD

Sewage treatment plants under operation

The present number of STPs and their capacities are listed below:

1. Appughar - 25 MLD (20 MLD underutilization) 2. Old city - 38 MLD (15 MLD underutilization) 3. Mudasarlova - 13 MLD (6 MLD underutilization) 4. Mini STPs - 31 MLD (16 MLD underutilization) 5. Total Capacity - 107 MLD (57 MLD underutilization)

• Current sewage being treated in the existing in STPs: 57 MLD • Total sewage generated (including Anakapalli & Bheemili): 181 MLD • The sewage treated corresponds to 31% of the total current sewage generated

52 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Current population covered by existing STPs: 3.52 lakhs • Current area covered by existing STPs: 19 sq. km. • On completion of on-going projects the total capacity of STPs will be 214 MLD • Population coverage by the STPs: 10 lakhs • Area coverage: 106 sq. km.

Sewerage projects for 100% coverage of GVMC

There are 4 STPs proposed in different areas. The proposed capacity of STPs shall be approximately 167 MLD.

Table 3.11: Proposed STPs and Areas covered

Sl no Proposed STP capacity Areas covered Coverage 1 84 MLD Gajuwaka, Blocks 12,13,16 Malkapuram and Coverage of population is 22.67% Yarada Coverage of area is 21.15% 2 51 MLD 32 merged Blocks 17,18,19 peripherals Coverage of population is 16.16% Coverage of area is 54.25% 3 18 MLD Anakapalli Coverage of population is 4.78% Coverage of area is 4.11% 4 14 MLD Bheemili Coverage of population is 2.88%, Coverage of area is 3.34%

Stormwater

Responsible organizations

1. GVMC: Greater Visakhapatnam Municipal Corporation 2. VUDA: Visakhapatnam Urban Development Authority

Supply, demand and coverage levels

Table 3.12: Supply vs. demand assessment for stormwater drainage

2015 2015 2015 2021 2021 Present Ongoing Total Demand Gap Component Km projects Km Km Km Major Drains 238 - 238 238 - Minor Drains <1 m Pucca Drains 3365 3365 7800 4435 Kuccha drains 4197 3365 Proper drainage to all 26.00 - 26.00 55.00 29.0

53 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report stagnant / flood prone areas Network length where 12.00 - 12.00 21.00 9.00 wastewater discharged directly to drains Rejuvenation of existing - - - - - primary nalas and primary drains including covering and installation of filter

Comprehensive stormwater drainage is a dire necessity to the Greater Visakhapatnam Municipal Corporation because intense flooding occurs during the heavy rains. Construction of a Major Storm Drainage System is anticipated for approximately 238 km in length.

Table 3.13: Infrastructure Gap Assessment (Benchmarks vs Existing)

Parameter Benchmarks for Smart city Current level % coverage of network to 100% 35% SWD network Aggregate no. of incidents of 0 20 places water logging areas % Rainwater harvesting 100% 35%

Methods of monitoring systems

• Manual checking only

Methods of communicating with customers

Potential future communication methods include:

• The municipal website • All municipal social media channels, including Facebook and/or Twitter • Municipally controlled mobile applications • Municipal advisory boards or agencies that service the socially vulnerable populations within the community. • Community based networks, including but not limited to stakeholders consultation, ward Council member organizations, and civic associations.

Methods of coordination with other service providers

Potential services management integration can bring all providers on a single platform with the following methods:

54 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Municipally controlled mobile applications • Open forums and Workshops

Capital and operational funding methods

1. Central and State government funds, International Funding Organizations (IFOs)

Existing Situation

The area is divided into 22 drainage basins (GVMC -14, AKP - 4, BML - 4). All drains discharge into the Bay of Bengal. Two drainage basins are partially completed under JNNURM – Yerrigedda, Gangulagedda, and Yerrigedda Branch Canals & S.L. Canal. This is approximately 23 km out of 277 km (GVMC – 176, AKP – 56, BML – 44) which comes to 7.85%. A balance of 20 basins is yet to be taken up. Also, there are major natural channels known as geeddas coming from uphill that discharge into the ocean, while the drainage catchment area of channels varies from 128 sq. km to 5 sq. km.

Table 3.14: Stormwater Service Levels by Basin

Basin Service Level No. 1 Coverage of Stormwater drainage network. Minor Drains (pucca drains) 2 Incidence of sewerage mixing in the drains

3 Incidence of water logging

55 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Source: GVMC

The gap of internal road side drainage network in city by lined/pucca drains is 55.50% since the town is not fully covered. However, kuccha/earthen channels exist in the city area in an un- regularized way.

Major drainage channels in the GVMC area are heavily silted up and choked at various places. Also, due to very rapid urbanization and industrial development in GVMC, major drains need immediate improvement, rehabilitation/restoration, and capacity enhancement to take safe stormwater disposal and avoid flooding /water logging in the future.

Major challenges facing the city in regard to achieving these service level benchmarks are due to a lack of funds, DPRs and details estimate available with GVMC for various zones.

Energy

Responsible organizations

• Transmission Corporation of Andhra Pradesh (APTRANSCO) • Andhra Pradesh Electricity Distribution Company Ltd. (APEDCL) • New & renewable energy department of Andhra Pradesh (NREDCAP) • GVMC • VUDA

56 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Supply, demand and coverage levels

• The expected demand of Vishakhapatnam City by 2020 is approximately 200 MW. As per discussions with APEDCL, the present maximum demand is around 70 MW, the existing substations and feeders are 50% loaded which creates a buffer of 50% for an increased demand over 7-10% annually. • GVMC & VUDA Areas are covered by APEDCL.

Methods of communicating with customers

Potential communication methods include:

• The Municipal Website • All municipal social media channels, including Facebook and/or Twitter • Municipally controlled mobile applications • Municipal advisory boards or agencies that service the socially vulnerable populations within the community. • Community based networks, including but not limited to Stake holders Consultation, Ward Council member organizations, and civic associations.

Methods of coordination with other service providers

Potential services management integration can bring all providers on a single platform with the following methods:

• Municipally controlled mobile applications • Open forums and Workshops

Methods of coordination with other service providers

• Direct contract of services management • Indirect (through third party Private /state organizations)

Capital and operational funding methods

• Central and State government funds, International Funding Organizations (IFOs)

Constraints hindering improved service:

• Space provision in existing ROW’s for converting overhead lines underground • Lack of centralized power SCADA • Lack of renewable energy policy implementation • Weak system reliability & redundancy

Existing Power Infrastructure 57 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Transmission & Distribution

For purposes of supply of power, Visakhapatnam is divided in three (3) zones. Each zone has a cluster of 33 & 11 kV substations. The city is fed from five 220/132 kV power sources, namely: 220/132/33 kV Gujwara, 220 kV Parawada, 220 kV/132 kV Brandix, 220 kV Dairy Farm and 220/132 kV Pendurthi substations. These substations receive 220 kV overhead supply from 400 kV Kalapaka substation.

The existing 220 kV, 33 kV & 11 kV Feeding arrangement in Visakhapatnam circle is shown below.

58 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Source: APEDCL

59 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The expected demand of Vishakhapatnam City by 2020 is approximately 200 MW. As per our discussions with APEDCL, the present maximum demand is around 70 MW, the existing substations and feeders are 50% loaded which creates a buffer of 50% for an increased demand over 7-10% annually. To meet this annual increase, APEPDCL has planned to provide 6 new substations for each 5 year period.

The projected load forecast for Visakhapatnam for the next 10 years is graphically presented below: 200 180 160 140 120 100 PORT 80 NAKKAVANIPALEM 60 220 KV DAIRY FARM SS 40 220/132/33kv Common point SS 20 MW 0

Source: APEDCL

As adequate and uninterrupted supply of electricity is important, APEPDCL has proposed the following initiatives.

The contribution of solar energy (as per NREDCAP & MNRE) to be at least 10% of the demand by installing solar panels across the corporation.

In the public consultations, the need for underground electric cables was greatly emphasized as the removal of overhead cables will increase the efficiency of flow of electricity and also free the road space.

60 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Renewable: wind energy

In Andhra Pradesh, the Wind Generation installed capacity is around 897.34 MW. Injection of power from wind energy happens at various voltage levels. The use of Wind energy utilization in Visakhapatnam is under consideration.

Renewable: Solar Energy

To reduce the carbon footprint by loading on substations and supply continuity, NREDCAP has started initiatives like solar water heaters, solar roof top panels, solar farms and net metering system.

Street lighting

All the street lamps are replaced by LED lamps. This is the first state in India that has replaced the street lighting system with energy-efficient lamps.

Initiatives considered/undergoing in Visakhapatnam

Ring Main Units:

APEPDCL is planning to establish 11 kV RMU’s for feeders connecting 20-25 distribution Transformers.

Smart Metering:

A pilot project comprising installation of smart meters (Prepaid / Postpaid) for 1,500 consumers is planned to be implemented by June 2016. Metering shall be provided with auto updates. Use of these meters shall prove beneficial in data collection related to consumption, load flow graphs, theft and fault detection.

Cable Laying:

The supply in Vishakhapatnam is planned through overhead lines. It is proposed to lay existing 11 kV overhead lines underground along costal area. The laying of these cables is planned in two phases i.e.

Phase I: 11 kV underground cables for five (5) Substations.

Phase II: 11 kV underground cables for fifteen (15) substations.

132 kV underground cables are planned between 220 kV dairy farm Substation and 132 kV PEDA WALTAIR Substation along a stretch of 7.2 km.

61 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Gas Insulated Substation:

With urban area land being prime and costly, it at times is economical to plan GIS. A 132/33 kV GIS is under construction at PEDA WALTAIR.

Ring Arrangement of Feeders:

As stated above, 11 kV feeders are planned in ring through RMU’s for redundancy & continuity of supply APEPTCL.

SOLAR:

A 10MW solar park is being installed under the Port Trust for utilization by Port authorities. A solar roof top panel subsidiary is being provided by NREDCAP.

Mobility

Responsible organizations

• VUDA – State agency for master planning for Andhra Pradesh and provision of roadway infrastructure in the outer periphery of the city. • GVMC – Responsible for provision of roadway infrastructure within the boundaries of the City. • Andhra Pradesh State Transport Corporation (APSRTC) – State agency responsible for operation of public transit including the public transit within the boundaries of the GVMC • GOI – Responsible for the funding of mobility projects including highways and rail transit.

Supply, demand and coverage levels

Traffic Congestion - Vizag has a radial road network with a length of 3,470 km and an arterial and sub arterial network of 430 km. 71% of trips are less than 3 km in length. The average trip length of city is 4.1 km and buses are used for average trip lengths of 11.6 km.

In an analysis done on BAU for 2030, the conclusions are: that the mode share of walking will shrink from 52% currently to 36%, and cars and two-wheelers would increase from 17% to 33%. The number of bus trips would reduce by half and auto-rickshaw trips would double. This will cause the addition of 15 lakh vehicles on to the road, which will result in severe congestion on many corridors within Vizag. If the number of 3-wheelers is restricted, the corresponding trips will shift to cars or two-wheelers, adding to the road congestion (LCMP 2011). The city’s transportation requirement is met by the following motorized modes of transport (Source: Detailed Project Report for Visakhapatnam Metro Rail Project July 2015):

62 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Bus transport is the major public transit mode with a modal share of 20%. • Auto-Rickshaws (3-seat) acting as para-transit accounts for approximately 15% of the transportation demand.

In terms of the public transit share of the market, the current public bus captures about 85% of the market and the auto-rickshaw providing paratransit service account for 15%. The use of auto- rickshaws (3-seater and 7-seater) have grown in recent years to capture the peak hour demand and are emerging as unhealthy competitors to the public transport system and also contributing to traffic congestions and accidents. (Source: Detailed Project Report for Visakhapatnam Metro Rail Project July 2015) Two Bus Rapid Transit (BRT) corridors (Pendurthi Transit Corridor and Simhachalam Transit Corridor) with a total length of 43 km have been under construction with approximately 25 km of the corridors completed to various degrees. Current BRT operation on either of the corridors is currently not provided, although regular bus service does operate in each of the corridors.

Parking Management - Organized off-street parking is very minimal in the city. This lack of off-street parking results in vehicle parking along the edge of the roadway, on pedestrian pathways and on the roadway reducing the space for moving vehicles and increasing congestion and creating a safety hazard for pedestrians and drivers. By 2030, there would be an additional 15 lakh vehicles on the road, leading to even more significant issues in parking management. (BAU survey analysis 2011). Given the increase in auto and two-wheel vehicles seeking parking, new off-street structures (garages) or at-grade parking facilities need to be provided.

Public Transport System - Vizag has a bus fleet size of 670 buses, covering 127 routes. There are 39 buses/ lakh population and on an average day, 2.9 lakh passengers are carried with average bus occupancy of 30 people. 18% of the total trips are made by bus and they account for approximately 500,000 trips per day. 4% of the population is bus card holders and on average, INR 410 per month is spent by bus passengers. Statistically, buses occupy approximately 10% of roadway space while carrying approximately 37% of the vehicular trips in the city. The City is currently implementing 2 Bus Rapid Transit (BRT) services to improve the speed and reliability of travel times for people using buses, to attract auto and 2-wheel users to public transit. Currently, neither service is in operation. Current services lack information at the bus stops to inform passengers of the status of the bus, the time for the next bus to arrive, the route of the next bus and if there are any delays. This results in passengers facing delays and uncertainty about their trip. In addition to information, the current system does not provide automated fare collection, which would provide faster access to the bus, reduce operating costs and result in faster travel times for the passengers.

Vizag has no existing intra-city rail system for moving people from their jobs in downtown to their homes on the outskirts and in other parts of the city. An elevated metro-rail project has been identified to be implemented. This additional public transit facility will attract existing public transit users and new users currently using private transit, freeing up roadway capacity. The facility will also facilitate the movement of the expanding population of Vizag that has been forecasted by increasing the number of people shifting from private vehicles to rail transport.

63 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Intermediate Public Transport (IPT) consists of auto-rickshaws. There are approximately 25,000 auto-rickshaws which accounts for approximately 5% of the total vehicles registered in the City of Vizag. According to a survey conducted by the LCMP, 80% of the auto-rickshaws in Vizag are privately owned while the remaining 20% are rented by the drivers. Auto-rickshaws or IPTs account for 9% of the total trips made in the City with an average trip length of 5.9 km. In terms of economics, approximately INR 400 per month is spent by passengers on auto-rickshaws. Clearly IPT or auto-rickshaws are a major component of the public transit solution, providing the equivalent of the last mile connection between public transport mode such as Bus, BRT or Metro Rail and need to be part of the planning and implementation of a Smart City Transportation Plan. Approximately 70-75% of the trips on passenger transport and intermediate passenger transport are on the average 15 minutes in duration.

Non-motorized transportation consists of cyclists and pedestrians. While typically not given sufficient credit as a mode of transport, both provide a significant part of the transportation, providing in many instances the last mile connection between public transit or in the case of the cyclist, in place of motorized public transit. Cycles account for approximately 3% of the total trips in the city. One of the major reasons for such limited usage is the lack of safety on roads for cyclists, and also the lack of parking for bicycles in the city. 52% of the trips made are walk trips; (Source: Low – carbon Comprehensive Mobility Plan: Vishakhapatnam) Cyclist and pedestrian fatality rates are 0.05 per 100,000 cyclists and 0.02 per 100,000 pedestrians.

The city only has 78 km of footpaths out of the total arterial road length of 430 km and even these footpaths are not continuous or universally accessible (source: LCMP, 2011). None of these footpaths have been provided with disabled-friendly access. It has been observed that approximately 50% of the footpaths in the city are discontinuous, 20% of the footpaths are encroached upon by vehicles such as auto, taxi, auto-rickshaw and trucks. The funds allocated to walking and cycling are less than 1/100th of the total funds allocated for transport

From 2011 to 2015, the area around RK Beach has recorded 55 fatal vehicular accidents and 19 injuries, whereas non-fatal accidents stand at 227 with 266 injuries. (Source: Police Dept., Visakhapatnam). Pedestrians are most vulnerable to traffic fatalities, resulting in up to 200 fatalities per year by high speed vehicles. To combat these pedestrian accidents the speed limit has been set since 2015 at 40km/hr within the boundary of the GVMC and is enforced by the police. In addition to speed reductions, an effort is underway to improve street lighting by installing LED lights. The goal of the program is to replace 100% of the streetlights with the brighter LED lighting.

Methods of monitoring systems

• Currently roadways have no monitoring systems other than limited cameras at new traffic signalized intersections. • Program underway to expand the number of smart traffic signalized intersections that would have camera monitoring as well as vehicle count information.

64 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • New central monitoring system now operating by traffic police which monitors smart signalized intersection for vehicle traffic violations and issues summons for violations. Need to improve the vehicle registration record accuracy so that summons are served and paid. • Command center also has capability of changing traffic signal timing at intersections. Need to develop signal times for different periods of the day and implement on a corridor - basis not an area basis. • Pedestrian monitoring is limited to traffic intersection cameras. Need to include additional cameras at non-signalized heavily trafficked pedestrian crossings. • Bus and Bus Rapid Transit (BRT) stations planned to have passenger information displays at bus stops, but to date none have been implemented. • Currently there is no monitoring of bus operations other than personnel on the street noting and controlling bus operations. Monitoring is limited and no real-time location of buses is in operation. • Currently there is limited variable message signing on major roadways that provide traffic information.

Methods of communicating with customers

• Currently all operational communications with customers whether on the highway or users of buses is limited to posted informational and regulatory signage for vehicles and printed notices at bus stops or on public transit buses. Additional information is provided by GVMC websites. • Public Outreach to customers of new projects such as construction of highways, new transit BRT or rail is via project specific outreach meetings and workshops, and the GVMC project websites.

Methods of coordination with other service providers

Coordination with the various service providers of transportation is through direct contact with state, national and private providers of transportation services. In the case of roadway infrastructure, coordination is between the GVMC and VUDA. For coordination of existing public transport, coordination is between the GVMC and the APSRTC. It is anticipated for the Metro Rail project that coordination will include the Government of India Transport, VUDA, APSRTC, and GVMC.

Capital and operational funding methods

Capital Project Funding

• Viability Gap Funding (VGF) Subsidy – GOI • India Infrastructure Project Development Fund – GOI • Public Private Partnership (PPP)

65 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • State of Andhra Pradesh Support for Infrastructure projects • Government of India

Constraints hindering improved service

• Lack of infrastructure for public bus transport system • Lack of regulation of intermediate public transport • Lack of integrated multimodal system • Lack of facilities for cyclists and pedestrians • Lack of transparency in public transport system • Lack of an alternative public transit mode to vehicle and long-range bus

ICT services

Responsible organizations:

GVMC

Supply, demand and coverage levels

The city of Vishakhapatnam has the potential to be one of the leading cities with the implementation/adoption of ICT services. High speed internet is available in large parts of the city and the next step for GVMC would be to offer wireless connectivity across the city to make it one of the first cities in India go “digital”. This wireless feature will also allow GVMC to easily expand into other Smart City domains like Smart Transportation, Water, Public Safety etc. by providing the required back end infrastructure which is the limiting factor in most cities.

Methods of monitoring systems

GVMC can use various methods to monitor the effectiveness of services provided. Standard software tools can monitor uptime of servers, response times, and user traffic that accesses various services that are provided by a common portal. Other methods like questionnaires and digital opinion polls can help GVMC improve the quality of services offered to its citizens.

Methods of communicating with customers

GVMC communicates with its citizens via their portal, GVMC.gov.in and via the GVMC mobile app (Android and iOS) where the citizens of Vizag can access government services and log complaints. Additional methods of communication like emails and text messages should also be considered to inform citizens of updates.

66 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Methods of coordination with other service providers

• PPP for IT Infrastructure (IT towers, IT parks, IT zones through public private partnership policy) • GVMC should consider offering a common integrated portal/website so its users have a single place to go to access all government related services, some of which may not be owned by GVMC. For example, a link on the GVMC portal leading users to other government departments like the water and/or other utilities, such as electricity, would be useful.

Capital and operational funding methods

• Fiscal incentives • Stamp Duty, Transfer Duty, and sale/lease deed Registration Fee reimbursements • Power subsidies • Patent filing cost reimbursement • Up to 50% subsidy on lease rentals

Constraints hindering improved service

• Only ~2% of current IT production in newly formed state • No IIT, IIM, IIIT in state • Weak brand name as IT destination • Slower than expected response from industry for creating new delivery centers • Services can be improved by providing better internet connectivity across the city, increasing the technology adoption rate for different demographics and promoting the awareness of existing e-services can help increase the adoption and success of GVMC e-services.

Overall Infrastructure Delivery

For the purposes of delivering key infrastructure projects under the Smart City initiative, a Special Purpose Vehicle (SPV) has been established. The SPV is in the process of selecting a consultancy team that can act as a Program Management Unit (PMU). The PMU team will have experts to provide advisory services on technical and financial aspects during the implementation of various smart city projects.

Presently, approximately 30 projects have been identified for implementation through Engineering, Procurement, and Construction (EPC), Public Private Partnership (PPP) and other Alternative Project Delivery (APD) methods. These projects will be funded through various central and state government schemes as well as user fees and local taxes. Funds available

67 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report through multilateral organizations like World Bank and other organization can be used to supplement other resources.

68 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 4. Socioeconomic profile

This chapter examines the socioeconomic context for growth in the region and provides insights into the daily life of residents. The section describes the target economic growth markets based upon the Smart City Vision Statement for Visakhapatnam described in task 1.

Population

The VUDA Area at present comprises of the following administrative units:

1. Municipal Corporation of Greater Visakhapatnam (GVMC).

2. Municipalities of Anakapalli, Bheemunipatnam, Vizianagram, Amadalavalasa, Srikakulam, Tuni, Yelamanchili, Narsipatnam and Rajam Nagar Panchayat.

3. 1,218 villages under the part Districts of Srikakulam, Vizianagram, East-Godavari and Visakhapatnam are spread over 34 Mandals within these districts.

The estimated population as of the 2011 census figures is estimated to be around 46.5 lakh. The following is the break-up of the population figures based on Municipalities, Nagar Panchayats and Mandal Population as per the Census 2011. The population within GVMC boundary (including Bheemunipatnam and Anakapalli) is 1,881,952 as per revised CDP 2015.

VUDA projections for the Greater Visakhapatnam Municipal Corporation and the Visakhapatnam Metropolitan Region (VUDA planning area) depict a region slowly expanding to 6.1 million people by 2021. The Average Annual Growth Rate (AAGR) from 2001 to 2011 is only 1.34%. Based on an AAGR of 2%, the population will rise to 7.56 million in 2030. More than half of the total regional population will still live in GVMC.

69 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Household survey

A sample household survey was conducted within the planning areas of Visakhapatnam Urban Development Authority (VUDA). The purpose of the household survey is to develop a fine- grained understanding of households’ patterns of usage of information technology as well as the level of penetration of various technology platforms. It will also address usage patterns, priorities, and preferences associated with urban infrastructure and services, and help to plan for future demand for infrastructure and social services, as well as the ability of the local population to benefit from "smarter" urban services.

Methodology

The study has been classified into three clusters for the study purpose as follows:

Strata - I: The southern part of the planning area, stretching southwards from the industrial zone adjacent to the port, including wards 3, 17, 48, 57, 69, zones IV, V, VI, and Anakapalli.

Strata - II: The city core: the existing built-up area of central Visakhapatnam, including wards 7, 15, 23, 39 and zones II and III.

Strata - III: The northern part of the planning area, stretching northwards from the Kailasagiri, including wards 2, 4, 11, 23, zone I, and Bheemunipatnam.

The data from the 650 sample households was collected through survey forms (questionnaire) designed in English that was translated into the local language i.e. Telugu. Data from the head of the household has been collected in person. Later the data was entered into SPSS software (20.0

70 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report version) and tables were generated. The survey and analysis was conducted in the months of June and July, 2016.

Major Findings of the Study

I. Household Information

The study found that the average size of the dwelling unit is 4.21 members and the minimum number of members in the dwelling unit range from 1 to maximum 14 members. About one third (35.4%) of the dwelling units have four members in their family. Of the 650 families surveyed, 114 other households also live in the same dwelling unit.

Household Size

The study observed that the mean size of the family is 4.14, the minimum is 1, and the maximum is 12. Among the surveyed families it is observed that 84.4% of the males are the heads of the households and the remaining 15.6% families are headed by females.

Age Composition

The working population (15-60 years) constitutes nearly 72% of the total population. Children below 6 years and the older population (60+) constitute 16% of the total households.

Educational Status

About one fourth (24.3%) of the heads of the households are illiterate and 31.6% of the heads of the households have a College/Bachelor's, Master's, or Ph.D. Degree. The analysis indicates that out of the total surveyed families, 14.5% are illiterate and 26.2% are currently studying.

Occupation

About 33% of the members of the surveyed families are either working or employed and 4.5% are unemployed.

Ownership

The study noticed that 61.2% of the households have full ownership of land and unit (house). Further, the other important observation is 36.6% of the households living in renting unit.

II. Dwelling Unit and Urban Services

The study observed that the average size of the housing unit is 112.3 square meters, where the minimum is 16.7 square meters and the maximum is 668.9 square meters. The housing units are primarily used for a residential purpose and this is the pattern observed in the majority of the households (62.6%). It was also observed that the housing units are used for residential and commercial purposes (4.5% of the study respondent).

71 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report The study observed that 90.5% of the households have a private kitchen, 6.8% of the households did not have a private kitchen, and 2.8% of the households share their kitchen with others.

Regarding bathing facilities, it was found that 93.1% of dwelling units have a private bathing facility, 4.3% share the bathing facility with others, and 2.5% do not have any bathing facility in their household.

The study found that 92.9% of the households have a private toilet facility in their dwelling units and 4.5% of the households use shared/common toilets. Only 1.8% of the households do not have a private toilet facility in their dwelling unit.

Pour flush latrine connected to a septic tank is the most widely used type of toilet (66.9% of households). Pour flush latrine connected to public sewerage networks are the second most used types of toilet by the members of households.

52.2% of the respondents mentioned that they experienced occasional problems with the sewerage network and 38.0% said that the sewerage network is ‘almost never a problem’. Further, 9.5% mentioned that the sewerage network never works properly.

The major source of water supply to households is piped into the dwelling unit (72.6% of households), while 10.2% of dwelling units use a public tap/bore hole pump source within a 10 minutes’ walk as their source of water.

61.8% felt that a stable supply of electricity to households is available and 36.0% mentioned that electricity cut off a few minutes per month. 92% of the respondents said they use electricity for at least four purposes such as phone charging, television, lighting and the refrigerator. For 95.2% of households, the major heat source for cooking is a gas canister.

The study found that the main method of garbage removal is collection by municipality staff (81.1% of the households). Open public containers are the second most used method of garbage disposal (10.2% of households), followed by dumping on street or another unsanitary site (5.7%).

With street lighting, 4.8% of respondents said there are no lights on their streets, 8.6% said that there are street lights but they do not work, and about 65.5% of respondents said the lights on their streets always work.

The important factors that households wanted to add to their neighbourhood were: 1) 24 hours water supply (39.4%) and 2) better bus services (36.3%).

The study focussed on the main problems in dwelling units and observed that utilities (water, electricity or sewerage) are the problems felt by the vast majority of households (63.1%).

The study found that 28.7% of household members travel more than 15 km to reach their place of work, while 22.8% of household members stated that they work from home. 72 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Auto rickshaw is the most important mode of transport, ranked first by 88.6% of households, while public bus ranked second. Private bus was ranked seventh by households.

While public bus is one of the more important modes of transportation, most people only use this service between 8am and 10am (25%). Other modes of transportation (auto rickshaws and cars) are also used mostly between 8am and 10am.

Most household members use auto rickshaws (56.5%) and public bus (53.5%) as their mode of transportation to get to work. The uses of two-wheelers or walking are also modes of reaching their workplaces. Children more or less use similar modes of transport to get to schools. Similar modes of transportation to reach shopping destinations were also reported in the study.

Accessibility to services (food/grocery) is relatively high, followed by access to parks and gardens. It was found that children's play grounds, outdoor athletic facilities and maidans are easily accessible to households.

Household respondents mentioned that being attacked by street dogs (31.6%), being hit by a vehicle while not crossing at street intersections (16.0%) and being hit by a vehicle while crossing street at intersections (12.4%) are the top three safety issues. Falling into an open drain or being hit by a vehicle while walking along the road was also mentioned as safety issues.

Respondents felt that employment opportunities, transportation, water supply, health care and sewerage collection/disposal were the top five priorities for improving services in the GVMC.

The majority of respondents were not willing to pay more in exchange for better services, such as access to better internet or access to better storm water drainage. However, a sizable portion were willing to pay more for access to better road transportation options and access to better water supply and sanitation.

III. Health Care and Education On the five point scale the respondents felt that health care services need improvement in the quality and delivery of those services. They felt that a better quality of doctors and nurses is the most important initiative to undertake in order to improve the health care services, followed by the ease of travel to points of service, and the convenience of making appointments.

About one fourth (27.3%) of the households send their children to private primary schools. Private secondary schools (25.7% of respondents) and public primary schools (10.6% of respondents) are the other sources of education. Technical training school is the least preferred education source for study respondents.

Better teachers, courses offering skill development for greater job opportunities and schools closer to home are the three most important factors suggested by the study respondents to improve the education services in their localities.

73 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report IV. Household Expenditures The study found that the average monthly household expenditure among the study respondents is INR 18,311.37. Household expenditures range from INR 1,767 to INR 142,800. About 33% of families spend between INR 10,000 and INR 15,000. 21.4% spend below INR 10,000 per month. Food and beverages, rent, savings, miscellaneous expenditure and education in that order are the top expenses for the heads for household. Mobile data plans and water were the bottom expenses for households.

The study found that the average monthly household income for study respondents is INR 20,920.29. The income ranges from a minimum household income of INR 2,000 to a maximum of INR 160,000. Most families (48.3%) have an income range of INR 10,000 to INR 20,000 per month whereas 2.2% of the families have income greater than INR 75,000 per month. The combined wages of all household members, business income, and property income are the three major income sources for households.

The study found that 29.4% of the households are saving more money than they did in the last 5 years, while 51.8% of the households said they would try to save money for this year.

V. Information Technology The study found that individual mobile telephones without a data plan, individual mobile telephones with a data plan, individual landline telephones, public computer labs or internet cafes, and computers at home with internet are the five main sources of access to information technology. 60.2% of households mentioned that individual mobile telephones without a data plan is their first source of information technology, followed by individuals using mobile phones with a data plan (36.3%), and individuals using public computer labs or internet cafes (13.8%).

The study found that making phone calls, sending text messages, and using social media are the top three reasons to get a phone. Specifically, 97.2% of the respondents stated that the most important use of their phone was making phone calls. Respondents hardly use their phone for receiving information from a local urban body or to make appointments with doctors or nurse practitioners.

Only 26.7% of households said they desire technology training. Instead, study respondents wanted training to use computers and to use basic computer software. A majority (94.2%) expressed their willingness to pay for the technology training.

VI. Governance and Participation When study respondents observe problems with infrastructure, they first want to address government officials, as this was mentioned by 46.8% of the study respondents. Community based organizations and community leaders are the other important people/institutions which study respondents wish to address in order to resolve issues. Non-governmental organizations

74 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report were either not mentioned at all or were the least mentioned by study respondents to resolve issues related to infrastructure.

19.4% of household respondents said that it was the first time they had learned about the Visakhapatnam Smart City initiative, whereas 80.6% were aware of the initiative already. About two thirds (74.8%) of the households said that had learned about the Smart City Initiative through newspapers, TV, radio, or the internet. Government notice, neighbors, friends or family were also ways through which they came to know about the smart city initiative.

About half of the respondents (47.5%) were satisfied with their current household economic status, while 20.5% were unsatisfied with current their economic status. Respondents felt that access to governmental office processes in a faster manner, access to transparent government data and access to better medical care were the top three options to help them reach a more satisfying economic condition in the future.

VII. Information through observation The surveyors noted their observations and also conversed with household members while data was being collected in the field. The type of buildings/houses in which respondents lived was observed to be 40.3% in a shanty/pucca/ masonry residence, 35.8% in a bungalow/independent building and 17.1% in an apartment building less than 6 stories tall.

The three most common types of roads leading to dwelling units were paved roads (71%), vehicle accessible stone, gravel or sand roads (19.4%), and pedestrian only paths (7.1%).

It was further found that 30% of the households have sewage around the dwelling unit and 32.2% of the dwelling units have garbage or solid waste around their dwelling unit. Summary of key growth Sectors:

Logistics

• The network of coastal ports, existing and proposed, and complimentary rail network create a compelling case for assessing the regional opportunity to establish a more robust logistics hub within South and Southeast Asia. Visakhapatnam port ranked fifth among Indian ports in gross cargo handled, according to the Indian Ports Association in 2015. • Andhra Pradesh, the eighth largest state in India, is endowed with natural resources and mineral wealth and boasts the second longest coastline in the country. Visakhapatnam has a huge potential to transform itself into a maritime and logistics hub in South India.

75 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Visakhapatnam has excellent potential because of its status as an industrial hub, the availability of a state-of-the-art port and government initiatives encouraging the establishment of industrial corridors. • The development of Visakhapatnam as the logistic hub encompasses various logistics facilities, which start with infrastructure such as the freight terminal, followed by services such as freight hub and logistics clusters. This provides tremendous opportunity for investment across a range of areas from large scale development of container terminals to an SME providing packaging facilities. • For additional information on the Logistics Sector’s potential, please refer to the KPMG report on this socioeconomic growth sector – Logistics, included in the Annex.

Healthcare

• The hospital network within the GVMC represents a potential growth opportunity based upon proximity to medical colleges, an existing market for providing tertiary care services to people from outside the region and increasing demand associated with an increasing regional population. • Andhra Pradesh is one of the leading destinations for medical value travel in India along with Karnataka, New Delhi, Kerala, Tamil Nadu, and Maharashtra. Due to the establishment of some of the earliest medical schools in the southern states of India, healthcare infrastructure available here is of the highest standards. The healthcare industry in Vishakhapatnam has immense potential for growth and serves as the focal point for healthcare in the state in the years to come. The city is expected to be developed as a hub for medical tourism in the state in the years to come. • In April 2016, the Andhra Pradesh Government inaugurated the Visakhapatnam Institute of Medical Sciences (“VIMS”) at Vishakhapatnam with a plan to develop VIMS into a super specialty hospital on the lines of All India Institute of Medical Science (“AIIMS”) in Delhi. In addition to this, the foundation stone for a 300 bed Employee State Insurance (“ESI”) hospital was also constructed at Sheelanagar in the city. The Andhra Pradesh Government also has plans to build a Super Specialty Block in the city’s famous King George Hospital (“KGH”). • For additional information on the Healthcare Sector’s potential, please refer to the KPMG report on this socioeconomic growth sector – Healthcare, included in the Annex.

Pharmaceuticals

• The success of the Jawaharlal Nehru Pharma City (JNPC) S.E.Z., connections to GITAM and Andhra University Pharma programs and available workforce suggest pharma as a foundational element for growth. • The North Andhra region including Visakhapatnam and Srikakulam districts are considered one of the major hubs in the country housing a pharma industry worth USD 1 billion. Visakhapatnam is one of the key pharma clusters in the country competing with Mumbai, 76 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Hyderabad, Pithampur (Indore), Vadodara (Baroda), and Ahmedabad. Visakhapatnam accounts for over 50% of the pharmaceutical units in the state. • Visakhapatnam has a strong and vibrant ecosystem for pharmaceutical industries with the noteworthy – Jawaharlal Nehru Pharma City located in Parwada. Further projects like APSEZ, Atchutapuram and Pydibhimavaram Industrial Park which include multiple pharmaceutical manufacturing units are also in proximity. The pharma ecosystem in the region includes major players like Hetero Drugs set up adjacent to the proposed project site and Divi’s Labs located in Bheemunipatnam. • A key advantage of Visakhapatnam over other locations is that it has excellent connectivity and linkages with its seaports and airport. Visakhapatnam also has an excellent availability of talent and human resources with institutes like GITAM University and Andhra University well equipped with pharma courses. • For additional information on the Pharma Sector’s potential, please refer to the KPMG report on this socioeconomic growth sector – Pharmaceuticals, included in the Annex.

Tourism

• The region’s natural assets as well as existing cultural tourism opportunities can possibly be reinforced by enhancements to the beach tourism industry. • The Andhra Pradesh Government has recognized the potential for developing Vishakhapatnam as a tourism hub and is focusing on developing further tourism assets as well as supporting infrastructure, facilities and connectivity projects in the city. This would further increase the number of tourism arrivals and increase revenues in the tourism sector. • Tourism avenues like sea plane and sea based tourism, heli-tourism, para-sailing, water sports, amusement and water parks are being envisaged, along with cultural activities like Kacheris - traditional singing, cinema, music, traditional dances, and exhibitions of local crafts like Etikoppaka toys and magic programs at key attractions, like beaches. • A holistic approach with strategic planning with various theme based tourist attractions can develop the existing tourism potential in Visakhapatnam and position the city as a major tourism hub in the country. Mapping the potential theme based attractions reveal opportunities for government and private sector involvement in undertaking tourism planning for the Visakhapatnam Smart City. • For additional information on the tourism sector’s potential, please refer to the KPMG report on this socioeconomic growth sector – Tourism, included in the Annex.

Information Technology / Digital technology

• The apparent success of the IT city in the northern portion of the GVMC coupled with the previous IT/knowledge economy growth in neighboring Hyderabad suggest studying the market offer of Vizag and its associated growth opportunity within the IT sector.

77 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • The Government of Andhra Pradesh has taken on the initiative in developing Vizag as a mega IT hub. By establishing state-of-the-art infrastructure suited to the needs of the IT/ITES industry and the development of an IT township, the government hopes to cultivate IT hubs in Vizag, Vijayawada, Kakinada, Tirupati and Anantapur. • For additional information on the IT/Digital Sector’s potential, please refer to the IBM report on this socioeconomic growth sector – IT, included in the Annex.

78 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 5. Best practices

The Team compiled a listing of best practices in Smart City development based upon the specific goals, aspirations, analyses and vision described in Task 1. The listing includes example international approaches, projects and implementation tools with relevance to Vizag as well as those utilized successfully elsewhere in India. These precedents are intended to serve as a reference for future project identification and to help frame both strategic and tactical infrastructure planning. Additional information and imagery can be found in Annex J. The listing is organized by the following:

Water Reducing non-revenue water Achieving 100% urban household access to sewerage network Neighborhood storm drainage retrofits Demand management approaches Increasing bulk water supply to achieve 24/7 service

Energy Renewably source electricity Safe operations Resilience + response

Mobility Bus Rapid Transit (BRT) retrofit and infill Increase pedestrian/bicycle trips Congestion management concepts Low-Carbon Mobility

ICT Telecom E-Governance Internet Access for citizens Internet Access for business attraction Disaster management + response

Economic Development Clean manufacturing/industrial districts Aerotropolis connectivity Waterfront attractions trends in India

Project Delivery and Implementation Alternative project delivery Alternative procurement

79 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Water

Water – Reducing non-revenue water

Jamshedpur- JUSCO, Karnataka Urban Water Sector Improvement project

Working towards enhancement of water supply on a continuous basis, improvement in reducing NRW from 36% to 9.9%

Jamshedpur, Karnataka, India https://www.wsp.org/sites/wsp.org/files/publications/WSP_Karnataka-water-supply.pdf http://amrut.gov.in/writereaddata/Moving%20towards%2024x7%20water%20supply.pdf http://www.pbdwss.gov.in/dwss/left_menu/10.pdf

Water – Reducing non-revenue water

Industry standard water balance and leak detection

Water balance developed capturing the sum of all flows in = sum of all flows out + lost water; acoustic leak detection technology listens for leaks that can grow over time to catastrophic bursts

Lyon, France, Miami-Dade County Water and Sewer Department, US http://www.awwa.org/portals/0/files/resources/water%20knowledge/water%20loss%20control/iwa-awwa- method-awwa-updated.pdf

Water – Achieving 100% urban household access to sewerage network

Rural water supply and sanitation project for low income states

Promotion of sanitation program in the villages so as to enhance the overall quality of life of the communities. To ensure community participation and facilitate gender mainstreaming in planning, implementation and operation & maintenance of water supply systems

Tamil Nadu Tiruchirapalli district, Jamshedpur; Drinking Water and Sanitation project for GHED area Villages of Junagadh and Porbandar districts of Gujarat A TATA-GE Special Collaborative Project Punjab Rural water supply and sanitation project http://iihs.co.in/knowledge-gateway/wp-content/uploads/2015/08/RF-WATSAN_reduced_sized.pdf http://www.un.org/esa/sustdev/sdissues/water/casestudies_bestpractices.pdf http://pbdwss.gov.in/prwssp/programmes/sanitation.html http://www.pbdwss.gov.in/dwss/left_menu/10.pdf

Water – Achieving 100% urban household access to sewerage network

Wastewater conveyance and treatment

80 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Centralized solution for addressing uniform method for wastewater treatment, versus individual septic systems that may vary widely in effectiveness in removing pollutants (like nitrogen and phosphorus)

Most large wastewater collection systems in cities like NYC, Boston, Washington, DC, Chicago, etc. http://mrrooter.com/greater-syracuse/blog/septic-vs-sewer-what-you-need-to-know http://www.scientificamerican.com/article/earth-talk-septic/

Water – Providing Storm drainage (retrofit)

Green infrastructure, Municipal Separate Storm Sewer Systems (MS4, part of US EPA)

Eliminating stormwater at its source via separate storm sewer system, reservoirs, green infrastructure (green roofs, infiltration galleries, etc.)

US cities with consent decrees for CSOs and SSOs https://www.epa.gov/npdes/combined-sewer-overflows-csos https://www3.epa.gov/npdes/pubs/ssodesc.pdf https://www3.epa.gov/npdes/pubs/csossoRTC2004_chapter04.pdf

Water – Providing Storm drainage (retrofit)

Urban stormwater management

An effective management of stormwater assumes more and more importance, the retrofitting of existing infrastructure becomes critical. Stormwater retrofit programs are essential to correct existing situations and to effectively manage stormwater.

Raipur, Jamshedpur http://www.omicsonline.org/open-access/integration-of-stormwater-drains-with-lakes-expectations-and- reality-a-case-of-raipur-india-2157-7587.1000166.pdf

Water – Rainwater harvesting (retrofit)

Rain water harvesting case studies in India

To arrest declining groundwater levels and recharge the aquifers to reduce dependence on the overstretched municipal water supply for a more sustainable water supply

Goa University Campus, Bhopal, Hapur, Delhi, Rajasthan http://scholarsmine.mst.edu/cgi/viewcontent.cgi?article=2865&context=icchge http://www.indiaenvironmentportal.org.in/files/Urban%20water%20management.pdf http://www.adb.org/sites/default/files/project-document/78825/41598-012-tacr-ind-mp04.pdf http://www.pseau.org/outils/ouvrages/adb_national_university_of_singapore_good_practices_in_urban_ water_management_2012.pdf

81 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Water - Demand management approaches

Smart meters and water conservation portal

Manage the growing demand for water by monitoring consumption, water loss and production

Townsville, Australia and a number of other cities around the world https://www.townsville.qld.gov.au/water-waste-and-environment/water-supply-and-dams/saving-and- consumption

Water - Demand management approaches

Water distribution solution to curb non-revenue water losses due to leaking infrastructure and unauthorized use of water

Bangalore Water Supply & Sewerage Board (BWSSB) and Kerala Water Utility (KWA); Drinking Water and Sanitation project for GHED area villages of Junagadh and Porbandar districts of Gujarat a TATA- GE Special Collaborative Project Dwarka (Delhi), Nagpur http://www.metering.com/features/smart-water-india-utilities-strive-to-curb-non-revenues/ http://www.indiaenvironmentportal.org.in/files/Urban%20water%20management.pdf http://amrut.gov.in/writereaddata/Moving%20towards%2024x7%20water%20supply.pdf

Water – Increasing bulk supply to achieve 24/7 service

Water distribution solution to curb non-revenue water losses due to leaking infrastructure and unauthorized use of water

Bangalore Water Supply & Sewerage Board (BWSSB), Kerala Water Utility (KWA), Jamshedpur, Nagpur http://www.metering.com/features/smart-water-india-utilities-strive-to-curb-non-revenues/ http://www.pseau.org/outils/ouvrages/adb_national_university_of_singapore_good_practices_in_urban_ water_management_2012.pdf http://www.icrier.org/pdf/v.srinivas_chary.pdf

Water – Increasing bulk supply to achieve 24/7 service

Equitable water distribution

Water monitoring and equitable water distribution

Bangalore Water Supply and Sewerage Board, India http://www-03.ibm.com/press/us/en/pressrelease/43255.wss

82 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Energy

Energy - Renewable Diversification

Smart power for rural development

Electrifying rural villages in India to spur economic growth

Initiative initially target districts in Bihar and Uttar Pradesh, where fewer than 10% of rural households are connected to the national grid https://www.rockefellerfoundation.org/our-work/initiatives/smart-power-for-rural-development/

Energy - Renewable Diversification

Solar Roof top panels

The building owners are encouraged to install the small capacity rooftop solar power plants (5KW to 100KW) at their own cost on net metering basis. The power generated shall be used by building owner as captive use and if any surplus power is generated than it shall purchase by DISCOMs of Haryana on the tariff fixed by HERC for roof top SPV power plants (the grid connectivity near the solar installation to be provided by DISCOMs subject to the condition that the individual building owner is the existing consumer of DISCOMs)

Haryana – Gurgaon http://mnre.gov.in/file-manager/UserFiles/state-power-policies/Haryana-Solar-Power-Policy.pdf

Energy - Renewable Diversification

Jawaharlal Nehru National Solar Mission (JNNSM)

The objective of the Jawaharlal Nehru National Solar Mission is to establish India as a global leader in solar energy, by creating the policy conditions for its large scale diffusion across the country as quickly as possible in three phases http://www.seci.gov.in/content/innerinitiative/jnnsm.php

Energy - Safety

Smart street lighting project by Himachal Pradesh Government “RISHTA – Rajiv Gandhi illuminating scheme for Hill town advancement”

New smart/street lighting scheme based on LEED/energy efficient with centralized control & monitoring system

83 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Work on progress in Himachal Pradesh for Shimla, Dharamshala, Sundernagar, Paonta Sahib, Hamirpur, Ghumarwin and Manali http://www.igovernment.in/article/2015/08/25/himachal-cm-launches-urban-smart-street-lighting-project

Energy - Resilience + Response

Energy efficient equipment

Best practice summary of companies like – GAIL / ACC /JOHNSON/ ITC

Multiple http://cbs.teriin.org/pdf/reports/Energy_Efficiency_Compendium.pdf

Energy - Resilience + Response

SMART GRID Demand Management/Outage Management

ENABLING THE SMART GRID IN INDIA: PUDUCHERRY PILOT PROJECT

Puducherry http://www.kalkitech.com/wp-content/files/CS_%20Enabling%20the%20Smart%20Grid%20in%20India- Puducherry%20Pilot%20Project.pdf

Mobility

Mobility - Bus Rapid Transit (BRT) Retrofit/Infill

Introduction of BRT service benefits in dense urban areas without full-time segregated roadways or special elevated bus stations

New York City’s “Select Bus Service” is BRT routes that utilize existing curb-lanes during peak-hours only using pavement marking, signage and bus mounted cameras for enforcement of lane. Also bus stations provide curb level boarding to buses – minimum land requirement http://web.mta.info/mta/planning/sbs/index.html

Mobility - Congestion management concepts

Insight into rider travel patterns; provide situational awareness (e.g. how many people at a station?) and predictive analytics (who else will be impacted); use of social media to get real time info; time of use metering (toll)

Stockholm, Sweden; Singapore; Eindhoven, Netherlands

84 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/transportationflow/

Mobility - Increase Pedestrian/Bicycle Trips

Provide pedestrian/bicycle only area for shopping, recreation, accessible to transit with competition from automobiles

New York City Times Square permanent pedestrian area. Center of Midtown Manhattan is pedestrian mall http://www.panoramas.dk/US/car-free-times-square.html

Mobility - Increase Pedestrian/Bicycle Trips

Provide pedestrian/bicycle only area for shopping, recreation, accessible to transit with competition from automobiles Copenhagen World’s oldest and longest pedestrian street is Stroget Street in Copenhagen. Used exclusively by pedestrians/bicycles; first opened in 1960’s has since been used as model in Sweden, and England (City of Leeds) http://www.copenhagenet.dk/CPH-Map/CPH-Pedestrian.asp

Mobility - Increase Pedestrian/Bicycle Trips

Introduction of bicycle rental and return locations within urban areas in conjunction with bicycle lanes

New York City on-street Public Bike Rental Program, privately funded and operated. Provides easy access and return of bicycles for use by people for recreation and short trips within the urban area http://www.citibikenyc.com/how-it-works

Mobility - Road Space Rationing

This objective is achieved by restricting traffic access into an urban cordon area, city center (CBD), or district based upon the last digits of the license number on pre-established days and during certain periods, usually, the peak hours

Latin & South American cities such as Bogota, Mexico City-Mexico, Santiago-Chile, San Paulo-Brazil on a permanent basis. Also permanently used in Athens-Greece https://en.wikipedia.org/wiki/Road_space_rationing

Mobility - Traffic Calming

A combination of civil engineering application that reduces speeds, increases awareness of drivers for pedestrians and reduces vehicle volumes

85 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Used successfully in Europe and Australia and is now being introduced in USA cities, usually consist of high visibility pedestrian crossings (slightly elevated roadway section), curb bump outs to reduce speed, and engineered bumps in the roadway https://en.wikipedia.org/wiki/Traffic_calming

Mobility - Complete Street Planning/Implementation

Planning and implementation of a comprehensive set of multiple mode improvements for traffic or transit including traffic/pedestrian safety, bicycle, and transit within a specific road or corridor

New York City – Hylan Blvd-Staten Island total street improvement including pedestrian safety median, signals and bus improvements; Dearborn Avenue – Chicago Complete Street for bicycles and traffic; Union Square – Pedestrian Safety Manhattan, NY; http://www.nyc.gov/html/brt/downloads/pdf/201109_brt_hylan_introductory_info.pdf http://nacto.org/case-study/dearborn-avenue-chicago/ http://nacto.org/case-study/union-square-new-york/

Mobility – Congestion management

Insight into rider travel patterns, provide situational awareness (e.g. how many people at a station?) and predictive analytics (who else will be impacted); use of social media to get real time info; time of use metering (toll). Reduce congestion on the roads by optimizing traffic lights, using analytics to get insight into travel patterns and implement dynamic tolls based on traffic/time of day etc.

Stockholm, Singapore, Eindhoven http://www-03.ibm.com/ibm/history/ibm100/us/en/icons/transportationflow/

Mobility – Low Carbon Mobility – E - rickshaw

• Replacing the diesel auto rickshaws with e-rickshaws • Directly solar-powered - fitted with solar panels, power the vehicle. • Indirectly solar-charged - not fitted with solar panels; powered instead by a battery charged prior to use by remote solar panels, usually at a fixed location • Will help reduction of air and noise pollution

Multiple cities http://e-rickshaw.com/

ICT / ITES

City-Wide Wi-Fi

86 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Free, Wi-Fi coverage is extended to adjacent public realm from any city-owned building or public space • Outside base stations cost appx $45K to install and $4,500 annual maintenance • Big beneficiary is tourists and visitors—making city very livable

Helsinki, Finland

http://qz.com/414061/helsinkis-free-city-wide-wi-fi-network-is-faster-than-your-home-internet/

Unified First Responder Platform

Create and provide all first responders with a Common Operating Picture (COP); availability of cameras (public safety); use of instrumentation to monitor various metrics (river levels, weather etc.); implement the four phase cycle Preparedness, Response, Recovery and Mitigation

Multiple cities in the US; certain cities in India (work in progress)

https://www.fema.gov/media-library-data/20130726-1828-25045- 0014/cpg_101_comprehensive_preparedness_guide_developing_and_maintaining_emergency_operations _plans_2010.pdf

Internet Access for citizens /IT/Business attractions

Plan city-wide high-capacity fiber optic network; city wide Wi-Fi networks covering IT employment and residential districts (broadband in residential areas may be sufficient); low power wide area network (LPWAN) to allow bi-directional communication, mobility and localization services; build security into the offering from the ground; segregate networks if and when required

Singapore

http://www.dslreports.com/shownews/Singapore-To-Build-National-100Mbps-Network-90210

Emergency management + disaster response systems

• The US government Federal Emergency Management Agency (FEMA) reference http://m.fema.gov/build-a-kit

• Transportation Issues in Disaster Management: http://nidm.gov.in/idmc2/PDF/Presentations/Urban_Risk/Pres5.pdf

• IBM Intelligent Operations Center for Emergency Management: www.ibm.com/analytics/us/en/industry/government/emergencymanagement.html

www-01.ibm.com/common/ssi/cgi- in/ssialias?subtype=BR&infotype=PM&htmlfid=PUB03004USEN&attachment=PUB03004USE N.PDF

87 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • GITAM University: http://icpecdm.gitam.edu/welcome.aspx

E-governance system

City governance should address four needs: efficient public services delivery, operations monitoring, collaboration & engagement, analytical & actionable insights by following:

• Simplify the process of information accumulation for citizens and businesses

• Automation of services, ensuring that information regarding every work of public welfare is easily available to all citizens, eliminating corruption

• Make it possible for people to get their work done online thereby sparing themselves of unnecessary hassles of traveling to the respective offices

• Drive better delivery of services to residents, improved interactions with business and industry

• Centralized monitoring of the health of key city functions and take coordinated action

• Efficient utilization and life cycle management of city assets and other resources

• Analytics enabling the city to predict and prevent issues that could affect quality of life, spreading across health, education, traffic and transportation, emergencies etc.

• Analytics to optimize costs and minimize revenue leakages for areas such as property tax, utility billing etc. https://www.youtube.com/watch?v=8I9_zWKs_yA - Honolulu Citizen Engagement https://www.youtube.com/watch?v=Wy8vTpl-UIU – Rashtrapati Bhavan https://lnkd.in/fee83ia - Surat Smart City Command Center

Economic Development

Clean Industry - Industrial Symbiosis

• Industrial ecosystem, where by-product of one enterprise is used as a resource by another enterprise • Steam, gas, sulfur, fly ash and sludge are exchanged • Coal-fired power station by-products used • Municipality uses district heating from industrial production facility

Kalundborg, Denmark http://www.symbiosis.dk/en

88 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Clean industry - Eco-Industrial Parks

• National-level plan to sponsor research, local government and industry collaborations for developing by-product re-use industrial parks • Wastewater reuse shows highest return on investment, averaging over 500% return on investment

Korea http://www.sciencedirect.com/science/article/pii/S0959652615012160 https://www.unido.org/fileadmin/user_media_upgrade/Media_center/2013/News/Green_Industry_Confer ence/Hung-Suck_Park__en_.pdf http://www.unido.org/greenindustryconference.html http://www.is4ie.org/isieulsan

Industrial Operations and Asset Protection

• 6 year study with The Nature Conservancy for how Dow Chemical can protect assets from storm damage • Nature-based solutions are cost-competitive for reducing risks and mitigating drought • Dow is now using marshes and wetlands to protect industrial assets and infrastructure

Freeport, TX USA http://www.dow.com/en-us/science-and-sustainability/collaborations/nature-conservancy

Waterfront attractions – Goa, India

• Beach Sports and Recreational Hub- Goa has a wide variety of beaches that not only support different location-specific waterfront activities but also cater to different user groups. While, North Goa is more commercial and touristy with an abundance of mostly low and medium budget tourist accommodations; South Goa is where most higher–end hotels and private beaches are located. The further north or south you go, the more isolated the beaches get. Rocky beaches like Dona Paula host a range of water sports activities. It is one of the few states in India where gambling (Casinos) is permitted legally

• Events & Branding- Events like Sunburn festival, Football matches, Carnival and Shigmo festivals are given visible promotion and are popular among international tourists as well. Goa is also emerging as a popular destination for holding Conventions and conferences. It is a popular second home destination and attracts significant medical tourism

• Capitalizing on Built Heritage- Goa has a lot of Old Portuguese buildings that have been converted to homestays, hotels, restaurants, art galleries and museums through adaptive reuse. Fontainhas precinct in Panjim is one such area http://www.sajth.com/old/vol3/16%20samita%20kamat.pdf https://en.wikipedia.org/wiki/Tourism_in_Goa http://economictimes.indiatimes.com/slideshows/spending-lifestyle/take-a-look-at-indias-top-10- beaches/slideshow/18607877.cms

89 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Waterfront attractions – Puducherry, India

• A Place for all- Goubert Avenue is Pondicherry’s most used and celebrated public space. Although the promenade is bereft of much-needed shade, making it a trying place to be in during the day, once the sun sets, it transforms, filled with people young and old enjoying the view of the ocean, street vendors and food carts creating a bustle

• Pedestrianization of avenue- Every day from 6pm to 6am the traffic is stopped and the street closed to let the passers-by enjoy a free walk on the beach road

• Capitalizing on Built Heritage- All the elements from the past and the present, with French, Indian or both origins still present all the way through the promenade. For example, Mairie building/Hotel de Ville, The Pensionnat de Jeunnes Filles, First World War mémorial etc.

• Citizen Engagement & Initiatives - A heritage preservation and urban environment management initiative was undertaken by the city authority to involve and engage different stakeholders to access their needs and aspirations. This resulted in projects like: Matching Grant Scheme, Heritage Walk, Grand Bazaar, Solid Waste Management- Shuddham, Urban Landscaping, Battery Charging Station etc. http://www.intachpondicherry.org/flipbook/pdf/Flyer_English_Asia_Urbs.pdf https://urbandesigncollective.wordpress.com/2013/05/12/pondicherry-in-the-eyes-of-jane-jacobs/ http://www.natgeotraveller.in/magazine/month/august-2013/urban-renewal/ https://en.wikipedia.org/wiki/Tourism_in_Puducherry

Waterfront attractions – Kochi, India

• Pedestrianization of avenue- Ironic to its name, no vehicles are allowed on the walkway. The walkway starts from the High Court Junction and continues until the Rajendra Maidan

• Mix of Activities- Marine Drive is also an economically thriving part of the city of Kochi. With several shopping malls it is an important center of shopping activity in Kochi. Major fast food places, like Marry brown, Coffee Bar etc. are present along the walkway. There are also several boat jetties along the walkway

• Marine Drive Phase 2 Vision 2030- Marine Drive Scheme Phase 2 is an extension of the Phase 1 proposed in the land to be reclaimed of about 400 hectares, extending from GIDA land to Varappuzha https://en.wikipedia.org/wiki/Marine_Drive,_Kochi http://timesofindia.indiatimes.com/city/kochi/vision-2030-to-reshape-kochi-into-a-global- kochi/articleshow/13142564.cms

High capacity / high quality connection to Greenfield airport

• Dedicated rail/bus services connect downtown to airport to ensure ease of movement • Rail services doesn’t just terminate at the airport, but are part of a system, allowing travelers and airport workers to access services beyond the airport location

90 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Multiple cities connected along dedicated corridor • Significant growth potential along the corridor

Zurich, Switzerland, Hong Kong, Denver, CO, USA, San Francisco Bay Area, USA, Others. http://web.tecnico.ulisboa.pt/~vascoreis/publications/2_Conferences/2011_1.pdf http://humantransit.org/2016/03/keys-to-great-airport-transit.html http://www.seattle.gov/transportation/docs/tmp/briefingbook/SEATTLE%20TMP%207%20Best%20Prac tices%20COMB%20compressed.pdf

Source: http://humantransit.org/wp-content/uploads/YYZ-mode-shares.png

SUMMARY OF BEST PRACTICES ON ALTERNATIVE PROCUREMENT

Alternative Delivery

Sewerage

Alandur Underground Sewage Project

Tamil Nadu

Alandur Municipality and the Tamil New Urban Infrastructure Financial Services Limited (TNUIFSL)

91 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report O&M Contract for Underground Sewage System

Build-Operate Transfer (BOT) Annuity for Sewage Treatment Plant

Water Supply & Sewage

Salt Lake Water Supply and Sewage Disposal System

West Bengal

Kolkata Metropolitan Development Authority and Naba Diganta Industrial Township Authority

Nabadiganta at Salt Lake Sector – V, the IT hub of Kolkata, has seen major developments over the last decade in sync with the IT boom happening across India. However, it had no organized water supply and sewerage system. In 2006, a water supply and sewerage project was conceived by Urban Development Department of Government of West Bengal, Kolkata Metropolitan Development Authority (KMDA) & Nabadiganta Industrial Township Authority (NDITA) to create infrastructures and provide services on BOT basis in PPP (Public Private Partnership) Model

The project involved the design, construction and commissioning of all the water supply and sewerage facilities on a PPP basis

KMDA and NDITA selected a private developer on a competitive basis. The private developer formed a SPV – the Nabadiganta Water Management Limited (NBWML). The SPV was required to undertake part-financing; design the specified components of the water supply and sewerage system; plan; undertake its construction; and operate and manage the system including the purchase of water, generation of bills and collection for the concession period. The project infrastructure was planned to be developed within a total time period of 18 months. Post completion of the construction works, the SPV was to undertake the operation and maintenance of the water supply system for a concession period of 30 years http://www.ndita.org/egovernance/index.php?option=com_content&view=article&id=86:water-supply- and-sewerage-system-of-nabadiganta&catid=42:projects&Itemid=95 http://www.ndwml.com/ http://jnnurm.nic.in/wp-content/uploads/2012/06/Sewerage_Naba-Diganta_Kolkata_WB.pdf

Water Supply

Karnataka Urban Water Supply Improvement

Three towns in Karnataka – Belgaum, Gulbarga & Hubli-Dharwad

Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC)

The Government of Karnataka (GoK), with assistance from the World Bank, initiated a water supply service delivery improvement program with private sector participation at the local level

92 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report The project aimed towards augmentation of the bulk water supply and improvements to the distribution system. This objective was undertaken through a project aimed at providing a 24x7 water supply system on a Public Private Partnership basis for a defined project area

The project involved refurbishment/rehabilitation of the existing distribution network of the select five demonstration zones in three Urban Local Bodies, followed by the operation and management of water distribution systems in these zones on a PPP basis

The project was structured such that a private developer was identified for undertaking the required rehabilitation works and for undertaking the operation and maintenance (O&M) of the distribution network for the period of the contract http://www.worldbank.org/projects/P082510/karnataka-urban-water-sector-improvement- project?lang=en

Water Supply

Latur Water Supply Project

Maharashtra

Maharashtra Jeevan Pradhikaran

The PPP structure for the project is a performance based management contract for integrated source to tap water supply management for the Latur city

The management contract that was entered into for Latur Water Supply was not a typical water supply management contract but a hybrid version of a management contract with elements of affermage/concession built into it wherein the private operator was taking on more than the standard levels of technical and commercial risks of a management contract http://www.spml.co.in/mediaroom/SPML_Case_Study_EAW_Sept_2011.pdf http://www.asci.org.in/ICT/Resources/CaseStudies/WSandSewerage/8Latur.PDF

Solid Waste

Timarpur Okhla Integrated Municipal Solid Waste Management Project

Delhi

New Delhi Municipal Corporation (NDMC) and Municipal Corporation of Delhi (MCD

The project has been undertaken on Built, Own, Operate and Transfer (BOOT) basis. IL&FS Infrastructure Development Corporation Limited (IL&FS – IDC) was mandated to structure the project, evaluate various technologies, carry out project development activities and select suitable developer through competitive bidding. IL&FS IDC and the Andhra Pradesh Technology Development & Promotion Board established an SPV known as the Timarpur-Okhla Waste Management Company Private Limited (TOWMCL) prior to the bid itself. The successful bidder M/s Jindal Urban Infrastructure Limited (JUIL) acquired 100% equity in the SPV - TOWMCL

93 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The project is registered with the United Nations Framework Convention on Climate Change (UNFCCC) for the Clean Development Mechanism (CDM) to earn 2.6 million Certified Emission Reductions (CERs) over a ten-year period http://www.no-burn.org/downloads/Timarpur.pdf http://towmcl.com/

Mass Rapid Transport

Mumbai Metro

Maharashtra

Mumbai Metropolitan Region Development Authority (MMRDA)

A concession agreement on BOOT basis for a period of 35 years, including a construction period of 5 years, has been awarded by the MMRDA. Under the concession agreement, the operator has to design, finance, construct, operate, own and maintain the first corridor and transfer the ownership and assets at the end of the concession period

A Special Purpose Vehicle (SPV) named Mumbai Metro One Private Limited (MMOPL) has been formed with Reliance Energy Limited, Veolia Transport and MMRDA holding equity stakes of 69%, 5% and 26%, respectively

This project was one of the first projects in mass transportation systems being implemented on a PPP basis in Maharashtra. The government thus felt the need to closely monitor the project and took a 26 percent stake in the SPV implementing the project. This allowed the government to have 3 members on the board of the SPV and ensured that it would be able to effectively monitor and influence decisions on financing, design and construction for the project https://en.wikipedia.org/wiki/Mumbai_Metro http://www.reliancemumbaimetro.com/overview.html http://www.mumbai-metro.com/tag/public-private-partnership-ppp https://dhwanishahbagchi.wordpress.com/2015/06/23/mumbai-metro-a-starting-for-indias-metro-ppp- model/

Mass Rapid Transit

Hyderabad Metro

Andhra Pradesh

Government of Andhra Pradesh

Hyderabad Metro Rail Ltd, a fully owned Public Sector Undertaking of GoAP is currently implementing the Hyderabad Metro Rail Project. The project is being executed in a Design-Build-

94 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Finance-Operate and Transfer (DBFOT) format. The concession period is 35 years (including a construction period of 5 years) with an entitlement of further 25 years. Under the concession agreement, the operator has to design, finance, construct, operate, and maintain the 3 corridors and transfer the assets at the end of the concession period

The Hyderabad Metro Rail Network will cover a total distance of around 72 km across three corridors

To implement the Hyderabad Metro Rail Project a Special Purpose Vehicle (SPV) named L&T Metro Rail (Hyderabad) Limited was floated https://en.wikipedia.org/wiki/Hyderabad_Metro_Rail http://www.hmr.gov.in/articles/2014-01-04-Article-for-IPE.pdf https://www.lntecc.com/homepage/resources/brochures/Infrastructure/Bridges/HyderabadMetro.pdf http://www.ltmetro.in/media/29585/metro_brochure_final_020114-80736.pdf

Urban Transport

Amritsar Inter-city Bus Terminal

Punjab

Department of Transportation (DoT), Government of Punjab

DoT, GoP awarded the contract to a private player to undertake the development and operation of a modern bus terminal at Amritsar on a BOT basis

Subsequent to signing of the concession agreement, the private operator established a Special Purpose Vehicle (SPV) for executing the project. Under the concession agreement, the private operator was responsible for finance, building, operations and maintenance of the Amritsar Intercity Bus Terminal complex for a concession period of 11 years and 5 months

Within the concession agreement, two potential revenue streams for the private operator were identified. The first revenue stream was through the operations of the bus terminal. The private operator had the right to collect from bus operators what was termed as "adda fees” which was the charge payable by buses for use of the terminal facilities. The second source of revenue was commercial rentals from shops located within the Intercity Bus Terminal complex. Other sources of revenue included the sale of advertising rights as well as parking fees http://www.iddkarnataka.gov.in/docs/CS_Amritsar.pdf

Electricity Distribution

Bhiwandi Electricity Distribution Franchisee

Maharashtra

95 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Maharashtra State Electricity Distribution Company Limited

The Maharashtra State Electricity Distribution Company Limited (MSEDCL), a public sector company, in an attempt to bridge the growing deficit, focused on the demand-side energy management and decided to introduce private expertise along with their funds by way of forming a distribution franchise

Bhiwandi Electricity Distribution Franchisee (BEDF) was a PPP venture between the State of Maharashtra through MSEDCL and the private partner, Torrent Power AEC Limited (TPL) and has been operated by the latter

The Distribution Franchisee Agreement (DFA) for the Bhiwandi circle is valid for an initial term of 10 years. The structure of the distribution franchisee model is as follows:

MSEDCL continues to be the distribution licensee and authorizes the franchisee to distribute electricity on its behalf in a specific area (Bhiwandi distribution circle)

The franchisee has the right to use the distribution assets of MSEDCL in the franchise area for carrying out his responsibilities and obligations

The franchisee is responsible for the following functions of the MSEDCL for the term of the DFA:

Distribution and supply of power to the consumers of MSEDCL in the franchise area, Operation and maintenance in the franchise area, Metering, billing, collection and all such consumer related services, Compliance with all the standards including the Electricity Supply code and the Standards of Performance and other regulatory provisions. http://circ.in/pdf/ER_Case_Study_12.pdf

http://www.torrentpower.com/b_areas/business_trans_bhiwandi.php

Healthcare

Rajiv Gandhi Super Specialty Hospital, Raichur (Karnataka)

Raichur, Karnataka

Government of Karnataka

The Rajiv Gandhi Super-specialty Hospital in Raichur Karnataka is a joint venture of the Government of Karnataka and the Apollo hospitals Group, with financial support from OPEC (Organization of Petroleum Exporting Countries). The basic reason for establishing the partnership was to give super- specialty health care at low cost to the people Below Poverty Line. The Govt. of Karnataka has provided the land, hospital building and staff quarters as well as roads, power, water and infrastructure. Apollo provided fully qualified, experienced and competent medical facilities for operating the hospital http://south.du.ac.in/fms/idpad/case-studies/IDPAD%20Case%204%20Rajiv%20Gandhi%20Super- specialty%20Hospital.pdf

96 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Emergency Ambulance Services scheme in Tamil Nadu

Theni district, Tamil Nadu

Government of Tamil Nadu

This scheme is part of the World Bank aided health system development project in Tamil Nadu. Seva Nilayam has been selected as the potential non-governmental partner in the scheme. This scheme is self-supporting through the collection of user charges. The Government supports the scheme only by supplying the vehicles. Seva Nilayam recruits the drivers, train the staff, maintain the vehicles, operate the program and report to the government. It bears the entire operating cost of the project including communications, equipment and medicine, and publicizing the service in the villages, particularly the telephone number of the ambulance service http://south.du.ac.in/fms/idpad/casestudies/IDPAD%20Case%2010%20Theni%20Ambulance%20Service,%20Tamilnadu.pdf

Healthcare

Karnataka Integrated Tele-medicine and Tele-health Project

Karnataka

Government of Karnataka

Government of Karnataka’s telemedicine initiative is in association with Narayana Hrudayalaya (a super specialty hospital in Bangalore) and Indian Space Research Organization

It is an on-line health-care initiative in Karnataka. With connections by satellite, this project functions in the Coronary Care Units (CCU) of selected district hospitals that are linked with Narayana Hrudayalaya hospital. Each CCU is connected to the main hospital to facilitate investigation by specialists after ordinary doctors have examined patients

http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3821206/

Healthcare

Uttaranchal Mobile Hospital and Research Center

Uttaranchal

Government of Uttaranchal

It is three-way partnership among the Technology Information, Forecasting and Assessment Council (TIFAC), the Government of Uttaranchal and the Birla Institute of Scientific Research (BISR). The motive behind the partnership was to provide health care and diagnostic facilities to poor and rural people at their doorstep in the difficult hilly terrains

97 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report http://www.birlainstitute.co.in/pdf/mobile.pdf

Education

Adarsh Schools

Punjab

Government of Punjab

The State government of Punjab has formulated the scheme of Adarsh schools to be set up at the rate of one at the block level with partnership with private sector. The land would be given on 99-year lease to the private partner by the government. 50% of the capital cost would also be provided by the State government. The operational cost of the school would be shared on 70:30 basis between the State government and the private partner http://www.theeducationalliance.org/wp-content/uploads/2014/09/Punjab-GuideLine-for-Adarsh-

Schools_PEDB.pdf

98 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Transportation Sector Organization/ Website Remark Entity Name Infrastructure https://www.gov.u Provides expertise in infrastructure and the financing, UK/Infrastructure k/government/orga delivery and assurance of major projects, to support more and Projects nisations/infrastru effective management and delivery across government. Authority cture-and-projects- authority Infrastructure http://www.infrast Infrastructure Ontario (IO) is a Crown corporation owned by Ontario ructureontario.ca/ the Province of Ontario that provides a wide range of services to support the Ontario government’s initiatives to modernize and maximize the value of public infrastructure and realty. Infrastructure Ontario upholds Ontario’s commitment to renew public services and we often do so in cooperation with the private sector. United States – http://www.p3virg Virginia’s Office of Public-Private Partnerships is Virginia Office of inia.org/ responsible for developing and implementing a statewide Public Private program for project delivery via the Public-Private Partnership Transportation Act (PPTA) of 1995. The Virginia P3 office works in conjunction with the Secretary of Transportation, Virginia Department of Transportation, Department of Rail and Public Transportation, Department of Aviation, Department of Motor Vehicles, Commercial Space Flight Authority, and the Virginia Port Authority and focuses on the development of public-private projects across all modes of transportation. Wastewater – Public Utilities Sector Organization/ Website Remark Entity Name Partnerships http://www.partner Partnerships BC supports the public sector in meeting its British Columbia shipsbc.ca/ infrastructure needs by providing leadership, expertise and consistency in the procurement of complex capital projects by utilizing private sector innovation, services and capital to deliver measureable benefits for taxpayers. Infrastructure http://infrastructur Infrastructure Australia is an independent statutory body Australia eaustralia.gov.au/p with a mandate to prioritize and progress nationally olicy- significant infrastructure. publications/publi The organization provides independent research and advice c-private- to all levels of government as well as investors and owners partnerships/ of infrastructure on the projects and reforms Australia needs to fill the infrastructure gap. Energy Sector Organization/ Website Remark Entity Name United States – http://www.p3virg The VAP3 has broadened their expertise to include social Virginia Office of inia.org/ and vertical infrastructure P3 projects. These non- Public Private transportation projects include potential P3 projects such as Partnership solar energy development, cell tower/wireless projects, air 99 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report rights, facilities, etc. These projects include collaboration with diverse state agencies such as the Department of Mines, Minerals, and Energy, and Department of Conservation and Recreation.

Infrastructure http://infrastructur Infrastructure Australia is an independent statutory body Australia eaustralia.gov.au/p with a mandate to prioritize and progress nationally olicy- significant infrastructure. publications/publi The organization provides independent research and advice c-private- to all levels of government as well as investors and owners partnerships/ of infrastructure on the projects and reforms Australia needs to fill the infrastructure gap.

Healthcare Sector Organization/ Website Remark Entity Name Partnerships http://www.partner Partnerships BC supports the public sector in meeting its British Columbia shipsbc.ca/ infrastructure needs by providing leadership, expertise and consistency in the procurement of complex capital projects by utilizing private sector innovation, services and capital to deliver measureable benefits for taxpayers. Partnerships http://www.dtf.vic. The Partnerships Victoria policy, introduced in 2000, Victoria gov.au/Infrastructu provides the framework for a whole of government approach re- to the provision of public infrastructure and related ancillary Delivery/Public- services through public private partnerships. private- partnerships Infrastructure http://infrastructur Infrastructure Australia is an independent statutory body Australia eaustralia.gov.au/p with a mandate to prioritize and progress nationally olicy- significant infrastructure. publications/publi The organization provides independent research and advice c-private- to all levels of government as well as investors and owners partnerships/ of infrastructure on the projects and reforms Australia needs to fill the infrastructure gap. Canadian Council http://www.pppco The Canadian Council for Public-Private Partnerships for Public-Private uncil.ca/ (CCPPP) is a national non-profit, non-partisan, Partnerships member-based organization whose mission is to promote innovative approaches to infrastructure development and service delivery through PPPs with all levels of government.

100 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 6. Baseline gap analysis

Through consultation with local infrastructure managers and field research, the consultant has assessed gaps in the capacity of GVMC and other institutions to deliver Smart City solutions. The intent of this analysis is to provide insights into the implementation planning components of the project and to identify ways to strengthen the implementation capabilities of public sector agencies involved in urban growth management and infrastructure delivery. Water supply

Gap management in water supply

The table below shows various smart city parameters and benchmarks in comparison to current service levels obtaining in Visakhapatnam.

Table 1.5 Infrastructure gap assessments (benchmark vs. existing)

Parameter Benchmarks for smart city Current level 24 x 7 water supply 100% of area 0% of area % of HSCs 100% 85% Per capita supply of water 150 LPCD 120 LPCD % metered connections 100% 23% % of efficiency in collection 99% 99% of water related charges

GVMC water supply system goals

GVMC goals for the water supply systems are:

• 24/7 water supply to homes/customers • Service to 100% of homes, businesses and industries • Meeting quality & quantity needs • 100% metered connections

Major improvements undertaken

The following actions have been undertaken towards improvement in water supply and distribution system:

• Increased treatment capacity: Two new WTPs for providing water up to 127 ML

• Increased treated water storage: provision of numerous ground & elevated tanks having the storage capacity of 6,650 KL

• Increased distribution system: provision of over 500 km of water mains 101 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Financing shall be done to sanctioned projects by the followings: JNNURM, ADB, & AMRUT

However, some issues that still need to be addressed are as follows:

• Overall supply shortage

• Water quality monitoring, metering, SCADA management system

• Improved maintenance of WTPs, pumping stations and distribution system

These issues will directly impact public health, safety and the economic performance of the water supply system.

Measures to be undertaken to ensure adequate water supply include:

• Protect upstream watershed to secure source supply • Increase storage for monsoon rains • Reduce water losses to evaporation & leaks • Manage demand with reuse & metered billing

Measures to be undertaken to ensure adequate quality include:

• Use water industry best practices • Improved WTP quality performance • Maintain water pressure/flush mains

Adequate reliability may be provided by:

• Back-up power, looped mains, parallel supply mains • Regular scheduled maintenance of all water system components

Potential approaches to explore

A “smart water system” uses electronic mapping, a real time all-mains hydraulic model, real time metering data, and SCADA data in daily operations to identify and minimize “lost water,” keep water users informed on potential leaks, and minimize pumping power. One benchmark for such a system is the Las Vegas Valley Water District in Nevada, USA.

To move towards such a smart water system, Visakhapatnam should consider the following:

• Create an all-mains, all-customers GIS of the water system • Install a SCADA system that records tank levels, pump status, and zone meter data on a continuous basis. Link to the hydraulic model

102 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Install meters that report daily demand usage and patterns (also for improved billing and to inform users of unanticipated changes that could indicate leaks in the customer’s system) • Utilize the data to predict daily water usage and control tank levels and pump operations to minimize water system power consumption • Utilize the data to target areas for water leak surveys to minimize leakage and system-wide “lost water” • Utilize the data to schedule maintenance for all water system assets • Utilize the data as the basis for annual budgets for operation, maintenance, and capital improvements, projected for 5-year and 10-year periods (longer for major capital projects)

Steps undertaken to bridge the gap

The additional infrastructure such as raw water transmission pipe lines from Yeleswaram to Narava and Raiwada to Narava are to be taken up to reduce the transmission losses of raw water in the Yeleru Left Main Canal and Raiwada Canal. Also, the comprehensive water supply schemes proposed for the newly merged areas (erstwhile Bheemili and Anakapalli municipalities) into GVMC, in addition to the 24x7 water supply project in North West Sector of GVMC. The projects, like the replacement of age old 914mm diameter gravity main from Mehadrigedda reservoir to Natayyapalem need to be taken up as a part of reduction in UFW & NRW. Also, replacement of old pumps and motors with energy-efficient pumps and motors should be taken up as a part of reduction in current consumption charges (O&M cost), thereby further increasing cost recovery in the delivery of water supply services. These capital improvement projects are necessary for the integrity and effectiveness of the water supply system, which should service all residents of urban areas, but are not all smart city projects per se. Smart city interventions, often relying on ICT, can contribute to these goals, but are fundamentally different from regular infrastructure projects such as extensions of existing water supply distribution networks.

Non-revenue water assessment

Assessment of NRW in Visakhapatnam is ongoing and is being carried out by Tata Consulting Engineers. The present NRW in the city is understood by GVMC to be approximately 40%.

Based on the assessment of existing infrastructure and ongoing/sanctioned projects, the existing gaps and estimated demand by 2021 for a water supply pipe network, number of households to be provided with tap connections, and required enhancement in capacity of water source/treatment plant (MLD) have been calculated.

103 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Table 1.6. Demand gap assessment for water supply sector

2015 2021 Component Unit Complete Ongoing Total Demand Gap Source MLD 286 - 286 489 203 (41.5%) Treatment capacity MLD 360 127 487 489 2 (0.0%) Elevated storage ML 126 43.5 170 163 0% capacity Distribution network Km 1971.0 130 2100 3050 949 coverage (31%)

Gap management activities list

The transmission pipeline from Yeleswaram to Narava, proposed for JICA financing, would increase the amount of raw water from 85 MGD to 170 MGD for all the VIWSCO consumers.

The transmission pipeline from Raiwada to Narava, proposed for ADB funding, would increase the raw water source from 14 MGD to 27 MGD.

The 24x7 water supply project in North West central city, water supply schemes in Anakapalli and Bheemili Zones are proposed under ADB funding. These projects would improve the per capita supply as well as the coverage of residential service connections as per MoUD bench mark.

The projects proposed under AMRUT such as the distribution network, SCADA installation for the entire water supply, replacement of old motors with energy efficient motors etc. will improve the service delivery in the GMC area.

The ongoing projects sanctioned under JnNURM are expected to be completed by the end of August 2016 and December 2016. The projects under consideration for sanction with ADB funds are expected to be grounded in 2016.

Best practices and innovative solutions in sector

24x7 water supply was introduced in Muralinagar area of Grater Visakhapatnam Municipal Corporation, duly providing flow meters to all the water supply connections (nearly 700 connections) in that area which was run successfully for some years. But due to insufficient quantum of water and wastage of water observed during night, the supply hours were reduced to 12 hours.

Measures that may be adopted to recover the O&M costs

With the installation of SCADA at major water supply systems, the NRW & UFW can be assessed accurately and it facilitates in initiating appropriate measures to recover the entire O&M

104 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report cost. Also, by increasing the coverage of water supply connections and by enhancing the water tariff of domestic as well as bulk & semi bulk consumers, O&M cost can be recovered.

The reduction in O&M cost can be achieved with the installation of energy efficient motors in place of old motors in various pumping stations.

A list of projects towards better water supply is provided below.

Table 1.7. Water supply project pipeline

Zone Project Objective 1 24x7 Water Supply in South West Central • Increase in per capita supply from City of GVMC 114 lpcd to 150 lpcd in south west Balance portion of projects proposed under central city. JnNURM transferred to AMRUT • Increase in coverage of water supply connections from 65% to 85%. 2 Replacement of 914mm diameter age old • Reduction in NRW from 40% to 38% gravity main (with 1000mm diameter DI) • Increase in per capita supply from from Mehadrigedda reservoir to 120 lpcd to 125 lpcd. Natayyapalem • Increase in coverage of water supply connections from 65% to 69%. 3 House service connection in extended area 5 Installation of basic level SCADA • Assessment of UFW & NRW. (Monitoring and primary controls such as • Reduction in NRW from 40% to 20%. sensors, RMUs, level indicators, digital meters, PLC) at all the sources, WTPs pumping stations, clear water balancing reservoirs, ELSRs/ GLSRs, all Bulk and semi bulk connections, and public stand posts etc. 6 Replacement of age old motors with energy Increase in cost recovery from the Present efficient motors base line. 7 De-siltation of Mudarslova and Reduction in NRW Gambheeram Tank 8 Development of Chillapeta tank (Pedda Reduction in NRW and storage tank) near Tagarpolasa as storage tank for Bheemili 9 Development of Kondkarlava Tank as Reduction in NRW and storage storage tank

105 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report capita consumption could be increased to 150 LPCD. The coverage of water supply connections will be increased from 60% to 85% and collection efficiency will be increased further from the present baseline.

Wastewater

Service level gap

There are many areas where sewer lines have been levied but still households are not connected to sewer lines. In all areas, toilets and kitchen and bathroom wastes are connected to the UGD System.

Table 1.8: Demand and Gap in Sewerage network

Component Existing Ongo Existing 2021 ing + proje Ongoing (Short term) cts Demand Gap

Sewerage network (km) 205.15 321.2 526.35 3415 2888.65

No of Households 83468 1000 183468 423468 2400000 covered under sewerage 00 system

Table 1.9: Status of sewerage network and Service Levels Sr. No. Indicators (as per SLB framework) Existing MOUD Service Level Benchmarks 1 Coverage of latrines (individual or community) 100% 100% 2 Coverage of sewerage network services (House 19.56% 100% Hold services) 3 Efficiency of collection of sewerage 26.64 100% 4 Efficiency in Treatment: Adequacy of 47 100% sewerage treatment capacity

Table 1.10: Gap in these service levels with regard to benchmarks prescribed by MOUD:

Sr. No Indicators (as per SLB framework) Gap 1 Coverage of latrines (individual or 3%

106 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report community) 2 Coverage of sewerage network services 80% (House Hold services) 3 Efficiency of collection of sewage 73% 4 Efficiency in Treatment: Adequacy of sewage 53% treatment capacity

GVMC’s drainage system was constructed to manage stormwater, not wastewater. However, due to the limited coverage of UGD sewerage system, on-plot septic tanks impact overflows to the stormwater drainage system.

For cleaning of individual septic tanks, septic cleaners are available and are being maintained by individuals and private firms. On receipt of information from individuals, the waste from septic tanks will be collected in to septic cleaners and let out into collection well of nearest STP. The GVMC has two such machines for maintenance of network system and toilets.

In certain extended areas, the overflow of septic tanks is let into open drains/fields. There is no regularized way or defined practice/frequency for the cleaning of septic tanks and septage management.

Specialized skilled labor is being engaged for operation and maintenance of existing sewerage system. Desilting of mains is being taken up annually. Two jetting machines and sewer cleaning equipment like connecting roads are available for operation and maintenance of the sewerage system. In vulnerable areas desilting of sewers is being taken up once in 6 months.

Presently the treated sewage is not being reused or recycled. However, proposals are under finalization for reuse of 63 MLD of treated sewage duly installing tertiary treatment plant.

The treated sewage from TTP will be utilized for industrial usage. The option of power generation is not explored as this needs anaerobic treatment of sludge, laying of pipelines, construction of chambers etc., involving huge capital and O&M costs.

Current STP design is based on an extended aeration treatment process, in which power generation is not economical and feasible. The sewerage projects of GVMC are proposed to be executed in nine phases. Presently, only three phases were completed and the fourth is in progress.

On completion of Phase IV, 14 out of 20 blocks will be covered with UGD network. Under Phase V, 3 blocks were proposed and DPR was submitted to the Government for approval. DPR’s are under preparation for the rest of the blocks. Implementation of the project is being done by GVMC only.

107 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report The city requires additional infrastructure to improve the services in uncovered areas. i.e. Gajuwaka, Malkapuram, Pendurthi, Madhurawada, 32 merged villages, and in Anakapalli, Bheemili to full fill the gaps there in service coverage.

Based on assessment of existing infrastructure and ongoing/sanctioned projects, external consultants under GVMC will calculate existing gaps and estimated demand by 2021 for sewerage network, number of households to be provided with connections, and required enhancement in capacity of STP (MLD), and area to be covered under septage management. Based on the demand and gap assessment, evolved objectives will attempt to bridge these gaps.

Best practices and innovative solutions in sewerage sector

The best practices and innovative solutions in the sewerage sector are analyzed based on initial and operation and maintenance cost of treatment method. The 7 MLD aerated lagoon STP taken up under Phase I was replaced with 38 MLD STP taken up under Phase III duly utilizing activated sludge recycling technology and defused aeration technology.

The existing system in GVMC is a decentralized system. Proposals are under consideration for covering the entire GVMC area with a UGD network in zone wise having STPs. As such, the possibility of replacing septic tanks by bio-digesters, bioremediation etc. may not be economical due to extended aeration process in STP plants.

Table 1.14: Priority list of projects for better sewerage connection and services

S.No Project Name

1 • Sewerage House Connection in Existing connection 2 To provide new sewerage system to Gajuwaka and Malkapuram Area

3 To provide new sewerage system to Madhurawada & Pendurthi area 4 Septage management and interception in Bheemili, Anakapalli and Gajuwaka Peripheral areas

5 To provide new sewerage system to Bheemili area 6 To provide new sewerage system to Anakapalli area To provide new sewerage system to Gajuwaka Peripheral areas 7

108 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report STORMWATER DRAINAGE

Gaps in capacity in managing the services efficiently and also provide an innovative solution for efficiently managing these services

Capacity enhancement of ULB is required with mechanical maintenance equipment to support timely maintenance needed in case of emergency. The stormwater is being drained off through existing open drains. There are only 43.57% of road length which have pucca drains and the rest are kuccha drains.

The present condition of the drains is insufficient to carry peak flows.

The sewage network does not exist in 80% of the area; sewage flow from septic tanks overflow to stormwater drains from households. However, GVMC is providing a separate sewage network to resolve the mixing of grey water with stormwater. There are no locations where stormwater gets mixed with sewer.

On peak rainy days, most of the drains overflow with mixed drainage, which is cleared in about 4 to 6 hours’ time. The drains are cleared using machinery in major drains and manholes in street drains. There are no ongoing projects related to drainage.

The city has not yet conducted any assessment of O&M costs of drains and potable pumps. The City currently needs capacity enhancement of major drains to take care of safe disposal. Gaps in stormwater drainage service levels are provided in Table 1.15.

Table 1.16- Demand Gap Assessment for Stormwater Drainage Sector

Component 2015 2021 Present Ongoing Total Demand Gap projects Major Drains 238 km - 238 km 238 km Capacity enhance ment Minor Drains <1 m Pucha Drains 3365 km 3365 km 7800 km 4435 km Kuccha drains 4197 km 3365km Network 26.00 km - 26.00 55.00 29.00 km requirement to km km provide proper drainage to all identified water stagnant point / flooding points up to the end

109 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report discharge point (in Km) Network length 12.00 - 12.00 21.00 9.00 km where km km km households discharging wastewater directly into the drains Rejuvenation of - - - - - existing primary nalas and primary drains including covering and installation of filter

Comprehensive stormwater drainage is a dire necessity to the Greater Visakhapatnam Municipal Corporation because huge flooding occurs during heavy rains. Construction of a Major Storm Drainage System is anticipated for an approximate length of 238 km.

Table 1.17- Infrastructure Gap Assessment (Bench Marks vs Existing)

Parameter Benchmarks for Smart city Current level % coverage of network to 100% 35% SWD network Aggregate no. of incidents of 0 20 places water logging areas % Rainwater harvesting 100% 35%

Issues of Concern related to Stormwater Drainage system:

There are 3 major areas of concern because of the present drainage system in the city:

• Health Concerns: Sewage in open drains – especially for children, vector transmitted diseases - standing water • Safety Concern: There is no stormwater flood analysis for Vizag drains - extreme events 50 & 100 year frequency • Economic Concern: There is no stormwater master plan for planned development areas

110 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Major challenge facing the city in regard to achieving these service level benchmarks

Due to a lack of funds, DPRs and details estimate available with GVMC for various zones

Potential Approach towards better Stormwater Drainage system:

1. Continue regularization for dense areas

2. Continue rainwater harvesting program

3. Expand stormwater master plan to include BMP and non-structural, nature-based solutions

4. Prepare stormwater flood analysis of all drains, existing and planned

• Recommended by Risk Atlas • Identify high risk areas for corrective action • Prepare Stormwater Master Plan for future development areas

Baseline gap analysis - energy

This chapter presents findings from a review of prevailing service levels and a gap analysis vis- à-vis benchmark norms across various services. For energy infrastructure, baseline gap analyzing the existing infrastructure of Vishakhapatnam was studied and discussed with concerned utility departments: APTransco, APEDCL and NREDCAP.

Identification of Gaps

With Visakhapatnam being a coastal region, the following issues were highlighted by various authorities, which constantly contribute to power breakdown.

System Reliability & Redundancy:

System prone to damages, shutdown due to saline environment.

Under given conditions, poles, towers, transmission lines & substations close to coastal areas are majorly affected by moisture & salt deposits. With these conditions, oxidation of joints is a common problem. This leads to power supply failures and fault detection by the utility board takes time.

Selection of equipment, switchgear and other equipment.

SCADA:

To maintain quality and continuity of supply, reduction of fault clearing time, demand side management becomes crucial to have SCADA arrangements in place. This can be accomplished following the addition/advancement to existing system.

111 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Provision of Feeder Remote Terminal Units (FRTU) • Fault Passage Indicators (FPI) • Digital relay & protection • Auto closure/open of circuit breakers • Underground network to support the two-way communication

Solar system:

• Use of solar roof top panels, water heaters should be extensively promoted • Street lights with solar panels can be implemented • Redundant supply for emergency services • TSR stations & STPs have dedicated feeders but in most cases single feeder. No redundant feed is available • TSR stations have no emergency diesel generator to respond to the power failure • No SCADA installation at TSR Stations

Constraints hindering improved service:

• Space provision in existing ROW’s for converting overhead lines underground • Centralized power SCADA • Renewable energy policy implementation • System reliability & redundancy

Management of gap in energy & projects that can be taken up

Monetizing flexibility using a virtual power plant, which incorporates solar PV, load and home battery systems:

By adding energy storage, the flexibility of the energy demand in neighborhoods can be put to use. This closes the gap between the availability of (renewable) energy and the actual energy demand. Trading on the energy markets with battery systems is new. By the smart use of battery capacity it is probably possible to earn money and realize a faster return of investment for battery systems.

Use of smart street lighting system:

Street light energy consumption computes to 10-30% of any city’s total power consumption. Hence using Solar PV panels mounted on street lights can help reduce the energy bill. These street lights can be provided with selective on/off and dimmers for power saving and efficient utilization.

Redundant supply for emergency services:

Possibility to have “N-1” redundancy for treatment plants. Explore renewable energy options. 112 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report ICT Gap assessment for domains Water, Mobility & Energy

ICT Gap assessment–Water

Challenges/Gaps

• Unable to forecast water requirements • No proper mechanism of measurement of water supplied before and post treatment • Inability to continuously monitor water quality • Water leakages & losses • Intermittent water supply to households (45-60 mins) per day • Revenue Recovery • Analysis of patterns (consumption, peak usage, dependency on other systems etc.)

Potential solutions for consideration

• SCADA system • Flow meters • Quality meters • Smart Water Meters at ward levels • Integration with other domains (healthcare, property tax etc.) Meters are recommended at minimum ward level to understand the usage patterns and to decide the flat rates for the ward. End state could be at colony level or individual household level starting with areas with higher usage based on usage patterns received from ward level meters.

113 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Conceptual Architecture Overview

Source: IBM

The various smart solutions recommended would cover the entire value chain of Water Management: Water Supply Network Management, Water Information Management, Water Supply Planning and Monitoring, Water Quality Monitoring Management.

ICT gap assessment – mobility

Mobility–key facts

• Manual control at all important traffic junctions • Traffic congestions along certain networks – such as NH etc. • Traffic violations especially by two & three wheelers • Encroachment on footpaths, no pedestrian crossing at most of the intersections • Only 18% of major roads have footpaths • Bus network well connected within the city

Challenges/Gaps

• Delays due to congestion or slow moving traffic, high fuel consumption, signal synchronization • Lack of messages regarding unforeseen events ahead of traffic (such as accidents) • No guidance for parking, problem of fines and enforcement. No revenue collected from parking currently

114 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • No management of traffic & transport assets • No real time information on buses for the passengers • No real time information on buses for the transportation department • No integrated transportation

Potential solutions for consideration

• Intelligent traffic lights & integration with various other systems • Access to RTO Data, strengthen RTO software. Proposed mobile app for RTO record & services • Smart parking – open surface • Smart parking – on street • Passenger/Transportation Information System, VMS • Conceptual Architecture Overview

Source: IBM ICT Gap assessment –energy

Challenges/Gaps

• Large number of aged assets in the grid leading to breakdowns and outages

115 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Increased pressure on operational efficiency and workforce productivity so as to increase operating margins • Increasing desire by consumers for a role in managing their energy usage and conservation • Environmental concerns demanding a change in operating conditions, power generation being major contributor to carbon emissions, growing renewable and distributed generation resources like wind, solar, and their integration into the grid

Potential solutions for consideration

• Transforming the utility network by redefining the relationship between utilities and customers, enabling new business models • Advanced metering infrastructure – residential, commercial, industrial • outage management • Peak load management & power quality management • Micro grid and renewable integration

E-governance and disaster management gap assessment

Effective "E-Governance” should have the ability to transform relations with citizens, citizen empowerment through access to information, promote ease of doing businesses and the delivery of public services across sectors through the strategic use of ICT for an increased development impact. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

E-Governance initiatives should also look at improving the efficiency and efficacy of city operations. As best practice, the city should go beyond ”smart instrumentation” and be an interconnected and intelligent city by integrating different service areas such as energy, water, transportation, public safety, education, health care etc. A common operations monitoring platform should look at the health of key city systems and take coordinated action to handle any disruptions or emergency situations in the city. This will also enable the use of data analytics enabling the city to predict and prevent issues that could affect quality of life, ranging from traffic congestion to emergencies.

A smart city requires ICT interventions in multiple layers as illustrated below:

116 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

City governance should address four needs: Efficient public services delivery, operations monitoring, collaboration & engagement, analytical & actionable insights by following:

• Simplify the process of information accumulation for citizens and businesses • Automation of services, ensuring that information regarding every work of public welfare is easily available to all citizens, eliminating corruption

• Make it possible for people to get their work done online thereby sparing themselves of unnecessary hassles of traveling to the respective offices

• Drive better delivery of services to residents, improved interactions with business and industry • Centralized monitoring of the health of key city functions and take coordinated action • Efficient utilization and life cycle management of city assets and other resources • Analytics enabling the city to predict and prevent issues that could affect quality of life, spreading across health, education, traffic and transportation, emergencies etc.

• Analytics to optimize costs and minimize revenue leakages for areas such as property tax, utility billing, etc. Assessment

• The E-Governance mechanism of the Visakhapatnam Municipality can be considered among the better ones in India today and with further embrace of ICT, has significant potential to become an intelligent, data-driven and people-centric Smarter City. Since an effective disaster management would require an effective governance mechanism and vice-versa, this was recommended as a single PAN-CITY solution in SCP.

117 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Feature Scenario 1 Scenario 2 Scenario 3 Scenario 4 Self- Projection (BASE) (ADVANCED) assessment of 'where of the city the city wants to be' IT City has no The city has The city The city offers 3 but only 4 connectivity major plans made plans makes has free Wi-Fi on 2 areas to bring to provide high speed services to increased high speed internet provide high speed internet connectivity opportunity for internet connectivity available in all the citizens connectivity through the most parts to connect with to the existing of the city. high speed public. framework. internet across the city. ICT- Essential Some of the Most of the All major 2 4 enabled Government public services are services are government services are services are provided provided services not linked provided online and through online with online online and offline. Data and offline platforms. infrastructure transparency platforms. Paper for total helps Citizens and intensive digitalization monitoring. officials can interactions is not in Systems and access with the place. processes to information on local Service better accounting and Government delays occur coordinate monitor status continues. regularly in between of projects and Receiving some various programs services and sectors. Government through data response to Responses to agencies are available on citizen citizen being online system. complaints inquiries or developed. Robust data take a long complaints infrastructure time. There are often system shares is limited delayed. No information availability integration and enhances of data to between internal monitor services and governmental service billing. coordination. delivery.

118 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Proposed services, using the e-governance framework – some of them are already being delivered by GVMC

Stakeholder Illustration of proposed Services Enabler

Residents 1. Applications for Services offered by respective body (Gas / Electricity / Water) E.g. Registration / Enrolment, Billing and Payments 2. Tax Assessment & Payments – Property tax, Water Tax etc. 3. Real Estate Management – Progress payments, Ledger Accounts (for property buyer/lessor), Payments, Settlements, Issue of Interest/Principle amount payment certificates 4. Complaints and Queries, Grievance redressal – Lodging, tracking and resolution of complaints (Lodging is possible now however tracking cannot be done)

Common Portal Businesses 1. Applications for Services / Registration under various provisions – Shops and Establishment, Local Trade with link to other Related Taxation, Property Taxes service providers 2. Billing and Payments for Services offered by GVMC (e.g. License fees, Renewals) 3. Tax Assessment and Payments 4. Tenders and bidding for local projects

Employees 1. Employee self-services

Government, 1. Information as service – NGOs, Other 2. Data warehouse - Consolidate the information from regulatory various sources (other Government departments) for infra bodies planning and action

Initial list of E-services proposed for GVMC, including the ones already being delivered by them

119 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report S.No. Payments Permits Services Licenses

1 Utilities Building Complaints Bike

2 Taxes Parking Payment details Dog

3 Fines Street vendor Information request Taxi

Documents – e.g. Birth 4 Permits / Tenders / Death certificate Business

5 Registration

Italicized text refer to the services already being provided by GVMC – fully or partially

Disaster Management

Visakhapatnam is in a cyclone- and flood-prone area. In October 2014, the city was hit by a cyclone named Hudhud, which had winds of up to 250 km/hr and caused extensive damage to Visakhapatnam and the neighboring districts of Vizianagaram and Srikakulam in Andhra Pradesh (AP). Damage was estimated to be INR 21,908 crore (US$3.4 billion) by the AP government. Visakhapatnam faces several challenges in its effort to respond to disasters. The IBM Smarter Cities Challenge team was asked to address the issues that surfaced during Hudhud.

120 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • The IBM team conducted interviews based on the Disaster Management Framework and aligned the findings on four levels of disaster management: planning, preparedness, response and restoration. The findings and observations were aligned per the framework, and our approximation of their current state compared to their state as a resilient Smarter City is described below.

121 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 7. Key performance indicators

The performance of Visakhapatnam as a smart city is to be measured against the goals and objectives set out in the Visakhapatnam Smart City Vision Statement, prepared under Task 1 of this study in May 2016. The Vision Statement says that Vizag will become South and Southeast Asia’s Clean Commerce Capital for the 21st Century. To achieve this vision, Vizag will embrace "Green Living” and "Smart Business.” These themes include:

Green Living: • Unspoiled environment • Healthy lifestyle • Access to amenities • Clean air and water

Smart Business: • Ease of business • Clean manufacturing • Smart infrastructure • Social responsibility

For a more detailed definition of these aspects of Vizag’s vision, please see the Vision Statement.

The Key Performance Indicators are designed to evaluate Vizag’s success in achieving these objectives. In such a complex and multidisciplinary undertaking as this Smart City Master Plan, there are many different indicators one could define in order to measure each objective. To take "Ease of business” as an example, one could consider indicators such as those selected by the World Bank: ease in setting up a business, land allotment and obtaining construction permits, environmental procedure compliance, labor regulation compliance, obtaining infrastructure- related utilities, carrying out inspections… But using many indicators to measure each objective would result in a vast set of 40 or 50 indicators. This is unadvisable because it would be costly and time-consuming to maintain, requiring periodic collection of large amounts of data. For that reason, the Terms of Reference of this assignment require the preparation of a "limited number of Key Performance Indicators.” In this exercise we have defined that limit as two KPIs for each of the objectives listed above under Green Living and Smart Business. The table on the following page presents 15 indicators for measuring the performance of Vizag against the Smart City Vision. The rest of this section is devoted to describing and defining the indicators selected and explaining how the future targets were derived. Further research will be required to establish the baseline for many of the indicators. This work will be carried out under Phase II of the assignment.

122 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Table 7.1: KPIs for Visakhapatnam, the Clean Commerce Capital of South and Southeast Asia

Vision Smart City 2015 2020 2025 2030 theme KPI baseline target target target

Green Living Unspoiled % natural area disturbed (annual)* #% 3% 2% 1% environment % 100-year flood plain urbanized 80%?? 75% 60% 50% (cumulative) Healthy lifestyle % total trips per year made by #% #% ##% ##% walking, bicycling and/or public transport Number of medical tourists per year # # # # Access to % population living within a 10- #% #% #% #% amenities minute walk of green public open space Average time to treatment (days)** # 10 8 5 Clean air and % residents with access to air quality 0% 50% 75% 100% water data % water supply network length with 0% 50% 100% 100% trackable water flow

Smart business Ease of doing % of public procurement 0% 100% 100% 100% business opportunities trackable online Average weekly number of air flights 60 200 500 700 Clean % of industrial wastewater treated ##% ##% ##% ##% manufacturing % decrease in industrial emissions as 0% ##% ##% ##% against 2015 levels Smart Annual % increase in peak demand ##% ##% ##% ##% infrastructure % critical facilities with back-up ##% ##% 100% 100% power Social % industrial value (turnover) ##% ##% ##% 100% responsibility generated by ISO 26000-compliant enterprises

123 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Green Living

Objective: Unspoiled environment

Indicator: % of natural area that is disturbed each year Natural areas in Vizag include ridges, hills, beaches and other areas that are in their natural condition, not having been put to agricultural use or converted to urban uses. “Disturbed” in this context means built upon, cleared of vegetation and/or converted to agricultural use. The indicator measures the extent to which natural areas are left alone. The ridges and hills that separate the urbanized areas up and down the coast of Vizag are considered one of the area’s most distinct visual features. The ridges separate the city into a series of ocean-facing “rooms.” The low-rise white city sits in the valleys, nestled up against the ridges and hills. Preserving these natural areas is considered a key part of the overall effort towards environmental stewardship, which directly impacts quality of life.

Preliminary GIS analysis using existing GVMC land use geodatabases suggests that there are 15,673 hectares of natural areas in Vizag today. While there is some encroachment onto the beaches and ridges, the level is currently fairly low. The future targets aim to limit the extent of the natural areas that are disturbed through urbanization or agricultural development. While 3% of the total area per year is considered, given the difficulty of enforcing development control, an acceptable maximum over the next few years, Vizag is aiming to limit the annual disturbed area to 1% of the total natural area by the end of the planning period (2030).

Indicator: % 100-year flood plain urbanized (cumulative)

In general it is advisable not to build in the 100-year flood plain because of the risks of loss of life and damage to real property in the event of flooding. In reality, it is difficult to restrict urban development in flood-prone areas that have advantages such as proximity to employment areas and/or low land prices. This indicator measures the extent to which the city — including the local government and the society as a whole — has privileged resilience over development expediency. The 100-year flood plain coincides with elevations below 2.51 meters.

124 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Source: HRVA Report: Storm surge flood hazard map for 100-year return period for Visakhapatnam city

The figure shows that most of the flood plain, which runs through the center of the city and connects to the port from the north/northwest, has already been built upon. Finer-grained survey and elevation data will be required to establish an accurate baseline. The future challenge is to reduce the amount of development in the flood plain. This will require restoration of marshes and other lowlands to their natural states. The development of a new airport north of the city center will create the opportunity for some restoration activity. It is considered unlikely, given the extent of entrenched interests in the area that the entire flood plain will be returned to its pre- development state. The 2030 goal is set at a 50% decrease over today’s conditions.

125 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Objective: Healthy lifestyle

Indicator: % total trips per year made by walking, bicycling and/or public transport

Walking and cycling, as aerobic activity, directly contribute to people’s health and well-being. Riding public transport involves some physical activity when people walk to and from the bus or metro station. Furthermore, riding public transport contributes to a reduction in greenhouse gas emissions, which improves air quality and has positive impacts on public health.

As per previous assessments within GVMC, approximately 50% of trips are made by walking, bicycling and public transport. The future targets are relatively modest, which reflects the growth of the middle class in Vizag and the increasing trend for households to own and drive private automobiles. Given the weak cultural disposition towards cycling and the hot climate, it is anticipated that increase in the share of this mode will be modest. However, improvements to the public realm will encourage more walking. Improvements to public transport services will also encourage more use bus and/or metro.

Indicator: Number of medical tourists per year

The quality of healthcare services in Vizag and the perception of Vizagites as leading healthy lifestyles will contribute to the growth of medical tourism. Medical tourists are currently drawn primarily from surrounding states; patients come to avail themselves of the medical care in King George’s Hospital and other public healthcare facilities offering free services. In the future, it is anticipated that private hospitals will attract Indians and foreigners to Vizag for operations and other high-value medical procedures, from which the patients could recuperate in relaxing and attractive communities such as Rushikonda and Bheemili.

Given the low level of medical tourists today, it is preferable to measure future arrivals as an absolute number rather than as a percentage increase.

Objective: Access to amenities

Indicator: % population living within a 10-minute walk of green public open space

Green public open space is understood to be open to the public, have at least some planting, and be usable space for physical activity such as walking, sports or other recreation. There is no minimum area. While there are many types of amenities that are important, we selected public open space to measure access to amenities in general because it is consistent with Vizag’s aspiration to support healthy lifestyles.

The GIS will be used to calculate the population living within a 10-minute walk of each existing public open space. A 0.8 km radius circle will be drawn around the centroid of each approximate public open space. The population within each circle will be estimated based on average population densities for different types of urban fabric in Vizag. 126 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Indicator: Average time to treatment (days) This indicator measures the average time in days between when a resident requests medical care and when he/she receives it. It is an aggregate indicator that takes into account how fast an appointment can be made (which is impacted by communications technology such as hospital applications for making appointments) and the elapsed time between making the appointment and seeing the doctor (which is impacted by the overall supply of healthcare services in relation to demand). The advent of telemedicine, which is supported by the broadband system installed by Cisco, is anticipated to shorten time to treatment periods.

The calculation of the indicator can be based on data from the healthcare industry and/or from customer surveys. The future targets should be progressively shorter periods, achieving in 2030 a minimum average wait of 5 workdays.

Objective: Clean air and water

Indicator: % residents with access to air quality data

In recent years many cities with air quality challenges have begun to post online real-time data about the concentration of particulate matter in the air. Often there is an associated smart phone application. These tools give local residents easy access to air quality data and allow them to take appropriate action in the case of highly polluted air (e.g., staying inside or wearing a mask). This indicator responds to Vizag Smart City’s emphasis on citizen access to data about urban services and urban environmental conditions.

Currently there is no real-time data on Vizag air quality posted online. The baseline value is therefore 0%. It is anticipated that GVMC can install such a system in the short term (before 2020). Since not all Vizagites are online, however, it will be necessary to post data on public kiosks and bus stops and other methods in order to reach close to 100% of residents.

Indicator: % water supply network length with trackable water flow

Currently the GVMC is not able to track the flow of water through the piped water supply system. Smart measures such as zone meters and cameras — as well as traditional method of people visually observing water in open channels — allow a water service provider to track the flow of water. With a view to effective management of the water system, this is an important capacity.

The baseline value is 0%. It is anticipated that the GVMC can make half of the total length of the water supply network “visible” by 2025.

127 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Smart Businesses

Objective: Ease of doing business

Indicator: % of public procurement opportunities trackable online

Transparency in public procurement is a cornerstone of good governance by urban local bodies (ULBs). GVMC, Visakhapatnam District, utilities and other public entities involved in procurement should take steps to give the general public visibility into the procurement process by systematically posting procurement data online.

Currently such data are not posted online. The baseline value is therefore 0%. It is anticipated that 100% of public procurement opportunities could be trackable online within the next five years.

Indicator: Airplane movements per year

Currently there are only about 3,000 flights arriving at and departing from Vizag airport each week. This is a major constraint on the economy, as a number of key economic sectors are dependent on easy air access for their success: tourism, logistics, digital/IT and other knowledge industries, healthcare (especially medical tourism), pharma, etc. The indicator measures passenger flights and cargo flights combined. It also measures both arriving and departing flights.

Given Vizag’s goal of becoming a major logistics hub, the number of flights at the end of the planning period is in the same range as other major logistics centers such as Dubai and Singapore.

Table 7.2: Projections of airline movements at Singapore, Changi, and Dubai International Airports

2006-2015 AAGR 2015 2025 2030 Dubai 6.79% 403,517 663,278 850,379 Singapore 4.83% 364,334 520,044 621,313 Average 5.81% 383,926 591,661 735,846

AAGR = Average Annual Growth Rate Sources: AAGR and 2015 data – Wikipedia; Projections – AECOM Note: Projections based on 75% of average AAGR of the two airports, or 4.36%

128 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Objective: Clean manufacturing

Indicator: % of industrial wastewater treated

Clean manufacturing is a broad initiative that relates to industrial processes as well as waste management. This surrogate indicator addresses one important aspect of clean manufacturing and is easier to measure because the method is essentially the same for any industry that produces wastewater as a by-product. While some stand-alone factories have their own on-site wastewater treatment facilities, waste treatment is more commonly found at the level of the industrial park. The data for this indicator will have to be aggregated from parks and individual factories.

Indicator: % decrease in industrial emissions as against 2015 levels

Industrial emissions are a major contribution to air pollution in Vizag. This indicator measures the decrease of GHG emissions from industrial facilities in the Vizag region in comparison to 2015 levels. Since industrial activity is expected to increase, the emissions per unit of industrial output will have to decrease. The values set for this indicator are consistent with the national commitments made by India as a signatory to the 2015 Paris climate change accord.

Objective: Smart infrastructure

Indicator: % increase in peak power demand

When peak loads can be decreased through move even distribution of power service delivery throughout the day and the year, then utilities can provide more service with lower-capacity systems. This reduces the need for capital improvements and makes service delivery more cost effective.

Since Vizag is growing, it is unlikely that peak demand will decrease. But an effective peak management program will succeed in slowing the rate of peak demand increase. The Vizag power utility can provide the date for the calculation of this indicator.

Indicator: % critical facilities with back-up power

The ability to ensure continuity of operations is a key feature of a resilient city. This indicator will measure the percentage of critical facilities such as water and wastewater treatment plants, emergency management centers, hospitals, etc. that have back-up electrical power in case of natural hazards. It is anticipated that 100% of facilities will have back-up power by 2025.

129 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Objective: Social responsibility

Indicator: % industrial value (turnover) generated by ISO26000-compliant enterprises

ISO26000 is the most internationally accepted standard for corporate social responsibility. This indicator measures the percent of industrial value that is produced by companies that are ISO26000 compliant. The data on compliance can be collected by the Visakhapatnam Chamber of Commerce.

130 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Annexures (not reproduced here; please see original deliverable):

A Mission #2 focus group agendas

B Mission #2 compiled meeting notes

C Sample household survey questionnaire

D Household survey compiled data tables

E Tourism sector profile – KPMG

F Logistics sector profile – KPMG

G Pharmaceuticals sector profile – KPMG

H Healthcare sector profile – KPMG

I IT sector profile- IBM

J Select Best Practices Presentation

131 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Task 3. Strategic Planning for Regulatory and Infrastructure Framework

132 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam

Task 3: Strategic Planning for Regulatory and Infrastructure Framework

August 5, 2016

133 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Table of Contents

1. Introduction and Background ………………………………………………………….135

2. Assessment of Urban Growth Requirements ………………………………………..…136

3. Resilience Assessment …………………………………………………………………147

4. Review of Existing Planning and Regulatory Framework ……………………………156

5. Overarching Strategy for Integrated Smart Urban Development ……………………...180

134 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 1. Introduction and Background

Phase 1 was contracted on February 12, 2016 and is currently underway. Phase 1 includes six tasks:

This report is submitted in satisfaction of the requirements of Task 3, Strategic Planning for Regulatory and Infrastructure Framework.

135 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 2. Assessment of Urban Growth Requirements

Population

Table 2.1. Population of VMR, 2016-2030

Area 2001 2011 2021 2030 GVMC area 2,200,000 2,797,100 3,195,200 4,169,000 Other VMR 2,000,000 2,542,900 2,904,800 3,395,674 Total VMR 4,200,000 5,340,000 6,100,000 7,564,674 Source: GVMC, VUDA 2006; Census of India 2001, 2011 GVMC = Greater Visakhapatnam Municipal Corporation VMR = Visakhapatnam Metropolitan Region

The average household size in the planning area according to the 2011 census was 3.91 persons. The following table breaks population down into households during the planning period. The five year period 2016-2021 is treated separately from the ten-year period 2021-2030 (inclusive).

Table 2.2. Household Projections, 2016-2030

Households Households Change in HH Change in HH Area 2021 2030 2016-2021 2021-2030 GVMC area 817,187 1,066,240 51,740 249,053 Other VMR 742,916 868,459 47,032 125,543 Total VMR 1,560,102 1,934,699 98,772 374,597 Source: VUDA; AECOM, 2016

Housing

The household projections above form the basis of the housing needs projections. The largest generators of housing need are (1) the formation of new households from among the existing population, and (2) the in-migration of new households from outside the VMR. The total number of new households over the first five years of the planning period is approximately 135,000.

136 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report During the following 10 years, an additional 375,000 households are expected to be formed or migrate to Vizag.

Table 2.3. Housing Needs Projection VMR, 2016-2030

Overcrowded Total DUs Total DUs Additional HH Households required Additional HH required

Area 2016-2021 2016 2021 2021-2030 2030 GVMC households 51,740 25,097 76,837 249,053 325,890 Other VMR households 47,032 10,756 57,788 125,543 183,331 Total households 98,772 35,853 134,625 374,597 509,222 Source: AECOM 2016 based on census data

In addition to the new households, there are existing households living in overcrowded conditions that also need new housing. The UN-Habitat’s work in slum housing indicates that approximately 50,000 household living in existing slums in Vizag required new housing in 2006. Since then, 14,000 units have been delivered through low-income housing programs. The balance 35,000 housing solutions are still needed. This is a conservative estimate, as other households have surely migrated to Vizag in the intervening years and settled in informal areas in the intervening years. The total number of required housing solutions during the planning period is about 509,000.

The expanding city should provide housing solutions for all of these households. The type, size, and character of the housing solutions will vary with the buying power and cultural preferences of the household, among other factors. Most households will find housing through existing market mechanisms. Even for low-income households, It is not necessary for GVMC or any public entity to construct housing for all of the households; rather, satisfying housing need for the society as a whole is about enabling the provision by many different actors (most of them private sector) of a broad range of housing solutions, from apartments to free-standing houses to serviced residential land plots.

Densification potential

Densification of existing urban areas presents opportunities to fully utilize existing infrastructure and is therefore generally considered more economically efficient and preferable to greenfield development at the urban periphery. This section looks at the potential for densifying VMR’s existing urban fabric in order to absorb a share of the future population and household growth described above.

The existing urban fabric in the urban centers around VMR has in general been developed to a density that is appropriate for the site and the size of the city. The mid-rise, party-wall construction (5-8 stories) has a number of attributes:

137 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • relatively compact, with corresponding small carbon footprint; • human scale, providing a physical framework for the creation of walkable streets and public open spaces; • parcel sizes are small enough to provide some diversity of urban form and building design, which adds to the character and attractiveness of the public realm. • sits comfortably within the green ridges that separate the urban centers into a series of urban “rooms,” many of them facing the sea.

For these reasons, it is generally not advisable to redevelop existing neighborhoods in Vizag to a higher density. Razing whole districts of mid-rise buildings and replacing them with high-rise buildings will not in most cases yield a higher quality urban environment. Moreover, mid-rise party-wall development is often as dense as high-rise development, given the need to locate the high-rise buildings farther from each other.

This does not preclude the redevelopment of some smaller districts within the city to a higher density than currently obtains in Visakhapatnam. The revitalization of the central business district, which is identified as a key project in the Vision Statement, could potentially include some high-rise development. This may be particularly appropriate if the future CBD has a more explicit financial services function in keeping with the strengthening of Vizag’s logistics sector.

Other districts within the planning area are only partially developed, and their consolidation and continued development will be critical to their future success. This is true for example in Rushikonda, where consolidation of the urban fabric is critical for the success of the IT and tourism sectors. The area along the beach needs to be redeveloped, and housing and mixed-use areas need to be developed between the beach and IT City. Densification of this kind will also take place in Health City and Bheemili, among other areas.

The other form of densification potential presented by the existing fabric of the city is in the use of existing vacant parcels within the urbanized area. There are 2740 vacant parcels with a total area of 534 acres scattered around the city, even in areas with high land values such as along R.K. Beach Road. These parcels should be seen as a priority resource for new development. Infill development using such parcels should be privileged over greenfield development outside the existing urbanized area. The land use proposals in the Smart City Master Plan will develop and add specificity to an infill development strategy.

Greenfield development

Given the limited densification potential, most of the new households will have to be accommodated through greenfield expansion. But the amount of land required for that expansion will vary based on the density of the development models adopted.

The following three scenarios are explored in this section:

1. Business as usual – Future development of multi-family housing, detached housing on small land plots and detached housing on large land plots in proportions that similar to those obtaining in VMR today. 138 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 2. Multi-family housing – More multi-family housing and less detached housing; higher development densities. 3. Detached housing – More detached housing and less multi-family housing; lower development densities.

In the Business as Usual scenario shown below, 10% of new households over the next five years are absorbed into existing urbanized areas, while 50% of new households settle in multi-family housing (apartment buildings). The rest either live in housing on small new plots (including “sites and services” housing for the poor in urban areas) and large new plots (including both luxury housing in urban areas and rural single-family housing). The gross development densities range from this combination of housing types range from 19 households/acre to 8 HH/acre. The total greenfield land requirement over the planning period is 33,000 acres for residential development alone.

Table 2.4. Scenario 1: Business as usual Scenario 1: Business as usual

Change Change Change 2016- 2021- 2016- 2021 2030 2030 VMR population 386,200 1,464,674 1,850,874 VMR households 134,625 374,597 509,222 Distribution of new households Absorbed into existing plots 10% 8% -- % living in new apartments 50% 52% -- % living on new small plots 25% 27% -- % living on new large plots 15% 13% -- New apartments Households 67,313 194,790 262,103 Gross density (HH/acre) 19 19 Land required (acre) 3,543 10,252 13,795 New small plot housing Households 33,656 101,141 134,797 Gross density (HH/acre) 13 13 Land required (acre) 2,589 7,780 10,369 New large plot housing Households 20,194 48,698 68,891 Gross density (HH/acre) 8 8 Land required (acre) 2,524 6,087 8,611 Total new residential land (acre) 8,656 24,119 32,775

139 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Change Change Change 2016- 2021- 2016- 2021 2030 2030 VMR population 386,200 1,464,674 1,850,874 VMR households 134,625 374,597 509,222 Distribution of new households Absorbed into existing plots 10% 8% -- % living in new apartments 50% 52% -- % living on new small plots 25% 27% -- % living on new large plots 15% 13% -- New apartments Households 67,313 194,790 262,103 Gross density (HH/acre) 19 19 Land required (acre) 3,543 10,252 13,795 New small plot housing Households 33,656 101,141 134,797 Gross density (HH/acre) 13 13 Land required (acre) 2,589 7,780 10,369 New large plot housing Households 20,194 48,698 68,891 Gross density (HH/acre) 8 8 Land required (acre) 2,524 6,087 8,611 Total new residential land (acre) 8,656 24,119 32,775

Scenario 2, Multi-family Housing, is more land-efficient than the previous one because it assumes a higher percentage (75%) of new households live in apartment buildings. Correspondingly fewer households live in single-family housing, which have lower development densities. This scenario can house the same population in 25,500 acres of new residential land development.

Table 2.5. Scenario 2: Multi-family housing Scenario 2: Multi-family housing

Change Change Change 2016- 2021- 2016- 2021 2030 2030 VMR population 386,200 1,464,674 1,850,874 VMR households 134,625 374,597 509,222 Distribution of new households

140 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Absorbed into existing plots 10% 8% -- % living in new apartments 76% 74% -- % living on new small plots 10% 12% -- % living on new large plots 4% 6% -- New apartments Households 102,315 277,202 379,517 Gross density (HH/acre) 21 21 Land required (acre) 4,872 13,200 18,072 New small plot housing Households 13,463 44,952 58,414 Gross density (HH/acre) 15 15 Land required (acre) 898 2,997 3,894 New large plot housing Households 5,385 22,476 27,861 Gross density (HH/acre) 8 8 Land required (acre) 673 2,809 3,483 Total new residential land (acre) 6,443 19,006 25,449

Scenario 3, Detached Housing, is the least land-efficient scenario. Between 42% and 47% of new households settle in single-family housing, most of them on smaller plots. Many households also settle on large plots, in both rural and urban settings, which have the lowest gross development densities (from 8 to 11 HH/acre) and therefore consume the most land. The land requirement is about 36,800 acres.

Table 2.6. Scenario 3: Detached housing Change Change Change 2016- 2021- 2016- 2021 2030 2030 VMR population 386,200 1,464,674 1,850,874 VMR households 134,625 374,597 509,222 Distribution of new households Absorbed into existing plots 10% 8% -- % living in new apartments 48% 45% -- % living on new small plots 25% 27% -- % living on new large plots 17% 20% -- New apartments Households 64,620 168,569 233,189 Gross density (HH/acre) 19 19 Land required (acre) 3,401 8,872 12,273 New small plot housing 141 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Households 33,656 101,141 134,797 Gross density (HH/acre) 11 11 Land required (acre) 3,060 9,195 12,254 New large plot housing Households 22,886 74,919 97,806 Gross density (HH/acre) 8 8 Land required (acre) 2,861 9,365 12,226 Total new residential land (acre) 9,321 27,432 36,753

These land requirements include circulation (roads) but not commercial and institutional land uses or usable public open spaces. A rough estimate of the total land required to house this future population increase would be about 1.5 times the gross residential requirements.

These high-level scenarios demonstrate that the mix of urban layouts will have a major impact on the amount of land consumed for housing. The percentage difference between the most land- efficient scenario (#2) and the least land-efficient (#3) is 31%.

Even more importantly, the analysis shows that the amount of land required for new development is small in relation to the total planning area. Even Scenario 3, with requirements of 149 square km, requires only 3% of the total study area to accommodate future residential growth. This shows that it is possible to have a smaller urban footprint that does not cover a large share of the area of the VMR. A more compact approach would improve the environmental impact of urbanization and save more valuable land for agriculture.

142 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Trunk infrastructure

Transport

Vizag’s road network will come under increasing pressure during the planning period. Vizag has a 3,470 km long radial road network and an arterial and sub-arterial network 430 km long. The type of trips that people take is shifting from walking to motorized transport. According to “business as usual” projections carried out for 2030, walkers as a percentage of total trips will decline from half to one-third, while the use of cars and two-wheelers will increase from 17% to one-third.3 The number of bus trips will be halved, and the number of auto-rickshaw trips will double. That scenario will result in an addition 15 lakh vehicles on the road, resulting in severe congestion on Vizag’s road network.

Of course, the addition of a large amount of private cars and public taxis does not translate directly to a requirement for road construction. While the tendency towards motorized transit is inevitable, and road space is required to accommodate it, there is still room to influence the mode split in a way that will require less road construction and enable more public transport and non- motorized transport.

Water supply

The piped water supply network currently covers about 65% of the GVMC population and is projected to rise to 75% with completion of the ongoing JNNURM projects, and then to 85% upon completion of the Year 1 investment program under AMRUT. However, the total amount of water available in the system is insufficient to meet the needs of customers, as described in the table below.

Table 2.7. Domestic and industrial water demand (GVMC), 2016-2030

Domestic Present demand* Bulk Total supply Deficit Year Population (MGD) demand** demand (MGD) (MGD)

2016 2,992,897 99 27 125 64 61

2021 3,195,200 105 32 137 64 73

2030 3,519,930 116 37 153 64 89 Source: AECOM 2016, based on GOI census data and GVMC water supply assumptions *Assumes 150 liters/person/day **Includes industrial and institutional customers

3 LCMP, 2011. 143 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Coverage rates for piped water supply service are much lower in the rest of the VMR than in GVMC. This will put additional pressure on the supply side, especially in urban centers such as Srikakulam. At the same time, many VMR residents live in rural areas and do not require centralized service. Exact figures on the share of the population that should be serviced by water networks are not available.

The development challenge for the VMR water systems over the planning period is first to produce more treated water, and then to deliver it to the population living in urbanized areas. Given the magnitude of the technical losses, which contribute to Non-Revenue Water levels of around 20%, improving the efficiency of the system is a first-line strategy for increasing sales to customers. Smart water system monitoring mechanisms—from bulk zone meters to SCADA to smart metering—can be used to identify areas with heavy losses and prepare a targeted pipe rehabilitation program. These smart interventions will be economically efficient tools for meeting part of the future needs in VMR, and can be paired effectively with traditional capital improvements in water extraction, treatment, transmission and distribution.

Water storage can also offset some of the requirements for system expansion. Work is underway to expand the GVMC network of water reservoirs from 130 million liters (ML) total capacity to 170 ML. Further water reservoir construction can offset the need to expand water production and transmission capacity, as water can be stored near customers during off-peak periods and provided to customers during peak periods. This is another type of smart water system intervention that can lower the marginal cost of water services, thereby improving the economic efficiency of water operations.

Wastewater

Since many improvement projects under JNNURM are currently under implementation, it is difficult to estimate the exact degree of coverage of the centralized sewerage system. As discussed in detail in the Task 2 Report (section on Analysis of Public Service Delivery), about 60% of the GVMC population resides within the 19 sewerage blocks in GVMC. But only 20% of the households in those 19 sewerage blocks are connected to the network, according to GVMC estimates. Most of the remaining households use on-plot solutions such as septic tanks; others use public toilets or have no sanitation facilities.4

Taking into account the projects in the pipeline, about 183,000 households in GVMC will be connected to the sewerage system in the near future. The projected 2021 demand for centralized sewerage connections is 420,000, roughly half of the anticipated total number of households in GVMC (817,000). So in order to meet the demand in 2021, the wastewater collection network needs to be expanded approximately two-fold in order to provide services to residents of medium-density urbanized areas within GVMC. An additional 250,000 households will be added to GVMC over the period 2021-2030, and they will require sewerage services too. In addition,

4 43% of rural residents in Visakhapatnam surveyed in 2007 had access to latrines or other sanitation facilities. Source: International Institute for Population Sciences, 2008. 144 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report the peripheral urban centers within VMR such as Bheemili and Anakapalli, which currently have no centralized sewerage services, will have to raise their wastewater management standards.

With respect to wastewater treatment, only 31% of the sewage collected through the GVMC network is treated in wastewater treatment plants (WWTP) today. To treat all of the sewage currently collected, another 123 million liters/day (MLD) will have to be treated. There is 50 MLD of unused capacity in the WWTPs in GVMC. Another 73 MLD of new capacity needs to be constructed. Given the projected population increase over the period 2016-2030, an additional 256 MLD will be required. That brings the total treatment capacity requirement to about 330 MLD during the planning period.

Power supply

The current maximum electrical power demand is approximately 70MW. Demand is projected by APEDCL to rise sharply to 200MW in 2020; a straight-line projection yields a power demand increase of 30% annually. This may be high, even taking into account current economic output annual growth rates of 13%; population growth rates are only growing at about 2% annually.

In any case, there is existing capacity in the system to accommodate future demand increases, as existing substations and feeders are only about 50% loaded. An additional 70MW can be delivered through the existing system. In additional, APEDCL plans to build more substations and feeders to expand system capacity by 7-10% annually in the coming years, which will meet the future demand. An 8% annual increase from 2020 to 2030 yields a demand of 432MW in 2030.

Power supply coverage in urban areas is essentially 100%. In rural areas of VMR coverage was 82% in representative villages surveyed.5 Off-grid power solutions, including solar-powered net metering units in individual houses, can be deployed to meet the needs of some rural residents.

5 International Institute for Population Sciences, 2008. 145 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Table 2.8. Electrical power load projections (GVMC), 2016-2026

200 180 160 140 120 100 PORT 80 NAKKAVANIPALEM 60 220 KV DAIRY FARM SS 40 220/132/33kv Common point SS 20 MW 0

Source: APEDCL

APEDCL and other actors in the electrical power field have choices about how to address this rather steep requirement for future power in Visakhapatnam. On the one hand, there is plenty of power in the grid: Andhra Pradesh State is a net power exporter; the plant at Pudimadaka is programmed to double in size from 200MW to 400MW; and there is a new 600MW power plant proposed along the south coast of the VMR.

At the same time, some of the future power demand can be met with renewables, especially solar. Based on current solar power investments and GVMC’s roof top solar program, APEDCL projects that about 10% of power will be sourced through solar by the end of the planning period.

Furthermore, demand management can be used to reduce the maximum capacity requirement. Smart Grid and microgrid can be used to improve supply-demand balance. Storage of power can also serve to shave peak system requirements. These methods can be employed to reduce the capacity requirement and bring down capital costs.

146 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 3. Resilience Assessment

This chapter of the report presents the findings and recommendations of a resilience review conducted in April through June of 2016. The review is based on meetings, workshops and field observations in May 2016 and a review and analysis of existing secondary data and recommendations related to the vulnerability of Visakhapatnam to natural hazards. This chapter contains four sections:

• Review of natural hazards • Vulnerability assessment of key assets • Existing mitigation of hazard vulnerabilities • Recommendations for additional resilience

Review of natural hazards

The primary natural hazards facing Visakhapatnam include cyclonic wind events, flooding, tsunami, and vector and water borne diseases. Several recent and comprehensive studies6 of these hazards have been completed for Visakhapatnam and will be summarized in this section. These studies include work by the United Nations Development Program (UNDP),7 The Energy and Resources Institute (TERI),8 and the Integrated Research and Action for Development (IRADe) research institute.9 Additional data from reports and resources of GVMC, the Visakhapatnam District Collector, VUDA, the Government of Andhra Pradesh, and the Government of India10 were also reviewed and incorporated.

Cyclones

An analysis by UNDP shows that major cyclonic wind events impact Visakhapatnam on average once every ten years with 44 cyclones having passed within 150km of Visakhapatnam between 1877 and 2013. Tropical cyclones affect this region in the pre-monsoon season (April-May) and post-monsoon season (October-December). Major tropical cyclones impacted the city most recently in December 1998 and 1995. These events had sustained winds between 119-221 kmph and were classified as Very Severe Cyclonic Storms. The city was also severely impacted by similarly powerful events in 1965 and 1966.

6 United Nations Development Program, Hazard Risk and Vulnerability Analysis (HRVA) City of Visakhapatnam, Andhra Pradesh, Final Report, November 2014. 7 United Nations Development Program, Hazard Risk and Vulnerability Analysis (HRVA) City of Visakhapatnam, Andhra Pradesh, Final Report, November 2014. 8 The Energy and Resources Institute, Climate Resilient Infrastructure Services – Panaji and Visakhapatnam, Final Report, 2014. 9 Integrated Research and Action for Development, Sustainable and Disaster Resilient Urban Development: A Case Study of Visakhapatnam City, 2013-2014. 10 Integrated Research and Action for Development, Sustainable and Disaster Resilient Urban Development: A Case Study of Visakhapatnam City, 2013-2014.

147 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report The direct impacts from major storms include injury to humans and livestock and damage to physical assets from high velocity winds, flooding caused by extreme rainfall and the effect of storm surge and astronomical tides. If the landfall of the cyclone aligns with the high tide during a full or new moon, the effect of the storm surge is increased. If the event coincides with a perigean spring tide – when the moon is closest to the earth (perigee) and the earth, sun, and moon are aligned – the resulting tide may be 20% greater than a normal tide. These events occur approximately four times a year and are sometimes called king tides.

In addition to the direct impacts, secondary or cascading effects from cyclones include loss of access to infrastructure services such as water, electricity, transport, healthcare and communications resulting from damage to those systems. In addition, emergency response times are longer and demand is increased during and immediately after an event. Secondary and tertiary impacts also include an increased exposure to vector- and water-borne diseases resulting from damage to sanitation systems, clean water, refrigeration and standing water.

Monsoon flooding

Extreme rain events during the monsoon season (June to October) can also cause severe flooding and while storm surge is not an issue during these events, damage from flooding to homes and infrastructure systems can lead to direct and indirect impacts to the community. Average annual rainfall in Visakhapatnam is 1,260 mm, with 80% of it falling in the monsoon season. As the city lies in an area of undulating topography, natural runoff is possible, but undersized and malfunctioning drainage infrastructure can lead to flooding. Ponding of rainwater has occurred in recent times due to clogging of the drains and reduced capacity of local streams (nalas) due to encroachment and sedimentation. The magnitude and impact of this hazard is directly related to the construction and maintenance of drainage infrastructure and land use decisions.

Tsunami

The greatest risk for tsunami events to eastern India is a result of the major subduction earthquake zone in the Bay of Bengal and Indian Ocean. The subduction, or movement of the Indo-Australian plates under the Eurasian plate results in the major offshore earthquakes seen in the areas near the western coasts of Indonesia. These major seismic events can cause in large displacements of seawater and resulting tsunamis affecting the region. Figure 3.1 shows the approximate travel time of the tsunami caused by the December 26, 2004 earthquake off the west coast of Sumatra. The contours show one hour time intervals. As depicted, travel time of this event to the east coast of India was approximately two hours.

Modeling conducted as part of the UNDP study showed that an earthquake of the magnitude of the 2004 event in West Sumatra would result in tsunami of 4.7 m at Visakhapatnam, but an event of a similar energy level (9.3 mw) in North Andaman could result in a worst case tsunami of 8.27 m. Travel time to Visakhapatnam for a North Andaman tsunami is marginally longer (~3 hours), but the nearly doubling of wave height likely negates any increase in warning duration.

The impacts of a major tsunami are similar to those of the tidal surge from a very large cyclone with additional risk to human life from the reduced warning time and velocity of the wave.

148 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Secondary impacts from damages to the transportation, power, and industrial facilities (potential for toxic substance release) are very significant in major tsunami event. However, the frequency of these events has historically been lower than other hazards. The science of understanding seismic events has grown in the past 100 years, but we are still unable to accurately predict when events will occur.

Figure 3.1. Approximate travel time of 2004 Sumatra tsunami11

In addition to earthquakes, tsunamis can be caused by volcanic explosions. The massive explosion of the Krakatau Volcano in 1883 caused a massive tsunami (30m in the Sunda Straight) and impacted ocean energy around the world. The most severe impacts were in the areas closest to the event and those in direct line of the wave propagation, including the east coast of India.

11 https://www.ngdc.noaa.gov/hazard/data/icons/2004_1226.jpg 149 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Disease

The incidence and spread of disease in Visakhapatnam is driven significantly by the weather conditions, population density and access to healthcare. Environmental threats caused by the secondary impacts of flooding and access to clean water and sanitation are also significant factors. High temperatures in the summer months along with heavy rains can lead to vector- borne diseases such as dengue and malaria and water borne ailments such as diarrhea. While dengue cases tend to be most acute in September, October, and November, corresponding to high rain levels, diarrhea is reported throughout the year and is likely tied to sanitation and drinking water issues rather than flooding. According to the UNDP research, Malaria cases are higher in the northern part of Visakhapatnam.

Projected effect of climate change

The most recent data on projected changes in climate from the Intergovernmental Panel on Climate Change (IPCC AR5, Working Group II)12 suggest that Visakhapatnam, like most of the region, will experience increases in incidences of severe heat stress, frequency and magnitude of extreme rain events, and sea level rise. Various studies and government reports have performed downscaling of the IPCC data for Andhra Pradesh and the Visakhapatnam region and found no major variations in these anticipated impacts.

Based on these data, the maximum summer temperatures in Andhra Pradesh may increase by more than 2 C; some models show maximum temperatures exceeding this projection by a factor or two or three. The modeling shows the most extreme increases in the north of Visakhapatnam with more moderate⁰ increases in the south and east (coastal) areas of the city. Increases in expected rainfall during the monsoon season could add an additional 70 mm of precipitation with a total annual increase of 100 mm due to the effects of more frequent and intense storms.

Scientific consensus on global sea level rise (SLR) estimates is somewhat in flux at the current time with significant recent literature suggesting the 2014 IPCC estimates are significantly low due to recent ice sheet observations in Greenland and Antarctica and ocean temperature, salinity and current readings. In any scenario, up to one meter of SLR can be expected by mid-century. Direct impacts of this level of SLR on Visakhapatnam (impacts to port and beach facilities) are expected to be less than the cascading impacts that the SLR adds to storm surge and tsunami risk.

Overall, the projected effect of climate change is to increase the vulnerabilities to cyclones, extreme rain events, flooding, tsunami, heat stress and disease by accelerating and increasing the effects described above.

Existing infrastructure vulnerabilities

A comprehensive inventory of key infrastructure and services for Visakhapatnam was prepared in 2014 by TERI under a grant from the US Agency for International Development (USAID).

12 http://www.ipcc.ch/report/ar5/wg2/ 150 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report This inventory covered 11 key sectors, including water, waste management, transport, energy, industry, housing, health and education, telecommunications and tourism. Climate change and disaster management services are also addressed in the inventory. TERI created a database management system to compile, organize and depict the data spatially. In developing an assessment of vulnerabilities and existing mitigation, TERI also created a resource to guide future resilience planning. These GIS layers allow future plans or concepts to be incorporated and tested against the identified hazards. TERI also incorporated climate vulnerability into their assessment. The TERI report vulnerable critical infrastructure assets in Visakhapatnam at risk from sea level rise and storm surge. In the social infrastructure sector, two hospitals (Lata and APHB Colony Steel Plant) and five schools are identified as vulnerable to flooding from SLR and storm surge. Nearly half of the stormwater drains, the Appughar sewerage treatment plan and Shanti Ashram pumping station, and major surface and air transport facilities are also vulnerable to flood damage. In the industrial sector, major facilities in and around the port are at risk, including steel, petroleum, chemical, and Naval assets. Section 3.3.3 of the TERI report details these assets. The report also presents an assessment of residential, heritage, and communication facility vulnerabilities.

While the TERI report does not specifically address heat stress, tsunami risk, monsoon season flooding, or epidemics, we can infer those risks on the critical infrastructure identified in the inventory. Low lying areas, such as the existing airport and areas where drains or nalas are compromised are at risk for flooding from non-coastal events (other than cyclones, storm surge, tsunami, and SLR). Stressors, such as extreme heat events (typically defined as five consecutive days where the temperature is more than 5 C above the normal high temperature), cause impacts on individuals, power systems, transport systems (trains and buses) and hospitals. Increased threats from vector and water borne diseases⁰ are generally a secondary result of standing water, heat, and impacts to sanitation and drinking water supplies. Specific assessments of tsunami risk were not produced but can be inferred from the storm surge risk assessment (as discussed previously, tsunamis have a greater impact but lower probability than cyclonic driven storm surge events). The location of healthcare facilities or rather the lack of a major hospital proximate to the industrial area south of the port was also identified as a vulnerability due to the difficulty in providing timely care to anyone injured in an industrial accident, especially if it is caused by a major storm or other regionally significant event.

Existing infrastructure mitigation

In discussions with local officials and other experts as well as after reviewing studies and plans, we identified a number of actions that have been taken to address hazard vulnerabilities, but most tend to be reactive as opposed to proactive. This is not surprising as it is the case in most urban areas in India and globally. It is not clear that projected climate change has been incorporated into the siting and design of new facilities nor have assets been designed to look at vulnerability to future conditions. Mitigation planning appears to be a rearward looking exercise with plans and criteria based on historical data for flooding, heat and wind.

The most significant evidence of mitigation planning is the work to improve the core infrastructure systems such as water, power, transport and sanitation. Ongoing and proposed

151 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report improvements to the transport system (BRT and bypass highway), drinking water infrastructure and communications systems (broadband) are major factors in increasing the resilience of the existing infrastructure. However, it is critical that these assets be planned and designed to account for predicted changes in technology, climate, and development.

The disaster management coordination function within Visakhapatnam rests with the District Collectors. GVMC and other operators of infrastructure and services support this effort under the direction of the Collector and ultimately State officials in Andhra Pradesh. However, the VUDA area includes all or part of four Districts, so incident coordination is not centrally coordinated across the entire region except at the State level in Hyderabad.

Proposed risk mitigation measures

Based on the assessment of hazards, vulnerabilities and existing mitigation efforts, we have formulated a number of recommended additional mitigation measures. Several recommendations have been presented in previous reports and we will summarize them here as we feel many of these could be implemented. While these recommendations may not leverage technology per se, they have proven to be effective in other similar cities and regions.

Previously recommended mitigation measures:

• Building codes (by-laws) are an effective mitigation to wind and flood risks, but must be uniformly enforced or they do not mitigate the risk. • An effective tree management program can reduce damage from falling trees and branches, which is a secondary impact of high wind events and extreme rain. • Undergrounding of main power lines. • Identification of tsunami shelter locations at higher elevations (e.g., schools and cultural centers). • Improvements to the surge barrier along the coastline. • Stricter enforcement of land use policies related to encroachment of the coastline and waterbodies/drainage areas. • Dredging of inlets and nalas to ensure the effectiveness of drainage during extreme rain events. • Comprehensive surveillance and treatment of potential mosquito breeding locations before and during the rainy season. • Future risk assessment as part of all master planning and development activities.

In a 2015 Smarter Cities Challenge Report for Visakhapatnam,13 IBM developed five recommendations that address improvements in resilience by focusing on people, infrastructure, systems, and integrated command and control. These five recommendations leverage technology and address existing vulnerabilities to hazards in Visakhapatnam.

• Enable and empower a world-class community

13 IBM, Visakhapatnam, India Smarter Cities Challenge report, October 2015 152 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Empower local citizens to be better prepared for disasters • Train and prepare citizens with 72-hour emergency kits • Establish metrics and a test and exercise program to determine readiness • Implement a District-wide comprehensive communication system • Expand landline coverage in villages • Improve emergency cell network with mobile assets and mesh network • Establish priority and pre-emption ability for key officials • Expand use of ham radio, social networking apps, and cable TV technology to improve coverage during emergencies • Improve transport dispatch and restoration • Improve situational awareness of assets and blockages using technology • Update/expand policies and procedures to improve data collection/accuracy • Develop plans based on modelling of likely disaster scenarios • Implement instrumented utility grid with redundancy • Decentralize generation and distribution • Implement smart switching and distribution assets • Identify and fortify key assets and nodes • Develop alternative (distributed) power sources • Create an Intelligent Integrated Command Centre (I2C2) • Create dashboard view of real time events to improve situational awareness • Create a geospatial database of assets and services • Integrate information from across the District from different sources • Allow access and collaboration across geography and sectors

The recommendations are more fully presented in the IBM report.

The following recommendations expand on ideas previously recommended or present new ideas to be considered.

• Comprehensive asset management and planning:

The TERI database is comprehensive and very robust, however, we have found no evidence that it is being maintained as a dynamic planning tool with new plans and completed projects and modifications incorporated into the database. An update and process to keep the database current would be a very effective tool for resilience planning. It is recommended that the database is also expanded to address all hazards, not just the core climate hazards (SLR and storm surge) covered in the initial study. Consistent with the transport recommendation in the IBM report, a comprehensive database could be the basis of an asset management system to assist in planning and assess not only future hazards but also used to assess the state of good repair (SGR) of existing assets. This aids both preventative maintenance issues as well as emergency response activities.

153 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Downscaling of climate data for use in planning:

In order to facilitate better planning for climate change impacts to new and existing assets, we recommend that Visakhapatnam and Andhra Pradesh partner with academic and research organizations to develop and maintain downscaled climate impact assessments based on the latest observation and modeling data developed by the GOI and IPCC. The downscaled data and assessments could be incorporated into the system described in the previous recommendation and used to analyze proposed public investments and land use decisions to improve the resiliency of new projects.

• Improved situational awareness and devolution capabilities across districts:

Disaster management coordination is housed within the office of the District Collector. As described in IBM recommendation #5, an Intelligent Integrated Command Center will improve situational awareness across the District and improve the resilience of District assets. However, large incidents such as cyclones and tsunamis tend to impact a larger area than the District boundary and coordination and visibility across Districts could improve situational awareness and resource sharing. The Collectors report up to the State who coordinates across Districts, but the State officials are getting data from each District. If we connect the systems across Districts, we get two major improvements in resilience. The first is that State officials have consistent visibility of assets and impacts across the entire affected region and can more effectively coordinate asset and resource sharing. The second is that should one District’s command center become impacted or unsafe due to damage from the incident, that staff can relocate to another district and access all of their systems and sensors remotely. In an extreme case, State officials could also devolve the functions of one District to another less impacted District or to the State command center.

• Leverage broadband infrastructure investment to improve healthcare access (telemedicine):

Access to timely healthcare services improves the prevention and treatment of disease. In rural areas, this access is greatly affected by the need to travel to access these services and demand and scheduling of limited resources within the local area. In less affluent areas, people tend to only seek medical help when a crisis occurs because it is difficult and time consuming to access the providers. A lack of preventative assessment and timely attention to acute problems can lead to a lower standard of health in these populations. The State-wide investment in broadband infrastructure allows the opportunity to establish a comprehensive telemedicine program for those with limited access to healthcare providers. This project can build on the regional broadband network developed by CISCO and inaugurated in the spring of 2016. In addition to improving the frequency and timeliness of care by a health professional, the telemedicine program would allow a better balancing of demand and resources across the greater area. Patients could theoretically access providers across Andhra Pradesh or all of India and beyond using this technology. While telemedicine cannot address all medical needs, through the use of video, remote sensors, and biometrics, many routine screenings and triage 154 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report assessments can be performed allowing patients to only need to travel to a healthcare facility when necessary.

• Broad implementation of the GOI rooftop solar program:

The Government of India has established a Grid Connected Rooftop and Small Solar Plan Programme14 and is providing some central financial assistance (CFA) in development of the program. While the CFA level for Andhra Pradesh is only 30% (it is 70% in some northern states), investments in rooftop solar will significant add to the power resilience in Visakhapatnam during high demand periods and when the grid is impacted by damage or a loss of key generation assets. This recommendation expands on recommendation #4 of the IBM report. Additional benefits could be created under this program by creating jobs and potentially manufacturing of hardware in Visakhapatnam. Potential sources of funding beyond GOI include low carbon power programs being developed as part of the Paris climate treaty and are consistent with India’s carbon reduction goals.

Each of these new recommendations could be initiated through a pilot implementation and scaled up based on lessons learned from the pilot.

14 http://mnre.gov.in/schemes/decentralized-systems/solar-rooftop-grid-connected/ 155 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report 4. Review of Existing Planning and Regulatory Framework

Planning and regulatory frameworks at central level

The Central Government has taken several initiatives to facilitate the development of infrastructure projects. Below are the central government offerings for infrastructure projects that are envisaged to be implemented through Public Private Partnership (“PPP”) mode:

• Viability Gap Funding (“VGF”) subsidy:

Viability Gap Funding of up to 40% of the cost of the project can be accessed in the form of a capital grant.

• India Infrastructure Project Development Fund (“IIPDF”):

The program supports the Central and the State Governments and local bodies through financial support for project development activities (feasibility studies, environment impact studies, financial structuring, legal reviews and development of project documentation, including concession agreement, commercial assessment studies, grading of projects, etc.) for PPP projects. The IIPDF program supports up to 75% of the project development expenses.

• India Infrastructure Finance Company Limited (IIFCL):

IIFCL was set up with the specific mandate to play a catalytic role in the Infrastructure sector by providing long-term debt for financing infrastructure projects. IIFCL funds viable infrastructure projects through Long Term Debt, Refinance to Banks and Financial Institutions for loans granted by them, with tenor exceeding 10 years or any other mode approved by the Government.

• Foreign Direct Investment (“FDI”): Up to 100% FDI in equity of Special Purpose Vehicles (“SPVs”) in the PPP sector is allowed on the automatic route for most sectors.

Viability gap funding scheme for financial support to PPPs in infrastructure

To support the timely development and implementation of vital infrastructure projects, VGF program was announced by the Government of India in year 2004. The program aims to develop infrastructure through the PPP framework by subsidizing the capital cost of the projects. The VGF program provides financial support in the form of grants (one time or deferred) to infrastructure projects undertaken through PPP mode with a view to make them commercially viable. The program provides maximum VGF up to 20% of the total cost of project. The Government or statutory entity that owns the project may, if it so decides, provide additional grants out of its budget up to further 20% of the total project cost. Viability Gap Funding under the program is normally in the form of a capital grant at the stage of project construction.

156 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Eligibility for VGF:

In order to be eligible for funding under the VGF program, a PPP project should meet the following criteria:

• The project should be implemented (i.e. developed, financed, constructed, maintained and operated) for the project term by a private sector company to be selected by the government or a statutory entity through a process of open competitive bidding; provided that in case of railway projects that are not amenable to operation by a private sector company, the empowered committee may relax this eligibility criterion.15

• The PPP Project should be from one of the following sectors:

• Roads and bridges, railways, seaports, airports, inland waterways; • Power; • Urban transport, water supply, sewerage, solid waste management and other physical infrastructure in urban areas; • Infrastructure projects in Special Economic Zones and internal infrastructure in National Investment and Manufacturing Zones; • International convention centers and other tourism infrastructure projects; • Capital investment in the creation of modern storage capacity including cold chains and post-harvest storage; • Education, health and skill development, without annuity provision1; • Oil/Gas/Liquefied Natural Gas (“LNG”) storage facility (includes city gas distribution network); • Oil and Gas pipelines (includes city gas distribution network); • Irrigation (dams, channels, embankments, etc.); • Telecommunication (Fixed Network) (includes optic fiber/ wire/ cable networks which provide broadband /internet); • Telecommunication towers; • Terminal markets; • Common infrastructure in agriculture markets; and • Soil testing laboratories.

15 As per the Notification No. 3C/1/2012-PPP dated November 4, 2013 issued by Department of Economic Affairs, as regards medical college, VGF would be admissible only if the proposed medical college is located in one of the backward districts identified under various schemes of GoI, provided there is no medical college in that district as on the date of in-principle approval of VGF by the competent authority. 157 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• The project should provide a service against payment of a pre-determined tariff or user charge. • The Government/statutory entity concerned should certify, with reasons: • That the tariff/user charge cannot be increased to eliminate or reduce the viability gap of the PPP project; • That the Project Term cannot be increased for reducing the viability gap; and • That the capital costs are reasonable and based on the standards and specifications normally applicable to such projects and that the capital costs cannot be further restricted for reducing the viability gap. • The VGF program will apply only if the contract/concession is awarded in favor of a private sector company in which 51% or more of the subscribed and paid up equity is owned and controlled by a private entity.

Key observations

• VGF can be one of the resource for infrastructural development projects such as Tourism centers, Logistics hubs/Warehouses, Roads, Sewerage networks etc. envisaged as part of Vizag Smart City. • VGF can help implement small and marginal projects without causing stress to the financials. • VGF results in increased transparency and standardization in the manner how grants are released. • The VGF program helps reduce capital cost of the projects by credit enhancement, and make them viable and attractive for private investments through supplementary grant funding. • VGF can provide a broad framework and a conducive environment so that the strength of private sector in terms of their efficiencies, flexibility and innovativeness are fully leveraged to provide better infrastructure and services at most efficient cost. • However, VGF does not in any case include the cost of land incurred by the Government/Statutory Entity: • VGF has long gestation periods and limited financial returns. • To receive a grant/funding through VGF, tariff escalation is not allowed during the concession period. This may prevent interest of private players especially for large, complex, long term infrastructure projects. • The scheme guidelines suggest that VGF will be given only when other finances are confirmed. As such, for larger, more complex projects such as ports, industrial zones etc., VGF may not be practical. • The program requires that 51% of equity is held by the private company. Funding for water or wastewater projects where there is a restriction on private sector holding, VGF may not be provided. • Central Government Funding is limited to 20%. Securing funding for infrastructure investment is difficult in that commercial banks are wary of investment in infrastructure.

158 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

India Infrastructure Project Development Fund (IIPDF)

A major reason identified behind lackluster performance of PPPs was the poor quality Detailed Project Reports (“DPRs”) and Project Feasibility Reports (“PFRs”). Furthermore, the public sector in India has little capacity to prepare quality project reports. It also lacks capacity to implement PPP contracts. At the same time, the bidders cannot be expected to prepare their own reports as the cost of transaction advisors for PPP projects is substantial. Therefore, the government has decided to develop capacity in the public sector to prepare credible and bankable projects.

India Infrastructure Project Development Fund (“IIPDF”), which was established by the GOI with a corpus fund of INR 100 crore to provide financial support for PPPs during the development phase. Public agencies, state governments or central ministries can, for example, engage technical consultants and transaction advisors in order to increase the quantity and quality of successful PPPs. It usually provides up to 75% of the development costs typically in the form of an interest-free loan, which is recovered from the successful bidder with a success fee of up to 40% of the funding, or considered a grant if the bid fails.

Eligibility for IIPDF:

• Sponsoring Authority shall be a Central Government Ministries / Departments or a State Government Department or a Municipal Body or a Local Body or a Public Sector Undertakings or any other statutory authority (like an Urban Area Development Authority). • Assistance under IIPDF funding will require co-funding by the Sponsoring Authority generally to the extent of 25% of the total project development cost. • Necessary for the Sponsoring Authority to create and empower a PPP cell to undertake PPP project development activities and address larger policy and regulatory issues to enlarge the number of PPP projects. • The IIPDF can finance an appropriate portion of the cost of consultants and the Transaction Advisor16 on a PPP project where such consultants and Transaction Advisors are appointed by the Sponsoring Authority through a transparent system of procurement under a contract for services. • The IIPDF can be available to the Sponsoring Authorities for PPP projects for the purpose of meeting the project development costs required for achieving Technical Close3 of such projects, on individual or turnkey basis, but would not include expenses incurred by the Sponsoring Authority on its own staff.

16 Consultants hired through a transparent system of procurement by the sponsoring authorities to assist them in designing the project and/or providing technical, financial and legal input for the project design, and providing advice for the management of the process of procuring the private sector partner for the PPP project. 159 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Key observations

• Funding can be raised for feasibility studies, environment impact studies, financial structuring, legal reviews and development of project documentation, including concession agreement, commercial assessment studies (including traffic studies, demand assessment, capacity to pay assessment), grading of projects, etc. • Getting funding through IIPDF can be an efficient way to cover the Project Development Costs for Vizag Smart City where large number of proposals/project development activities may be rolled-out in a short period of time. • There are no foreseeable disadvantages for IIPDF which is funding the Project Development Costs. If planned properly, IIPDF can be leveraged to Plan and Develop large scale PPP projects.

State-level planning and regulatory framework

Andhra Pradesh Infrastructure Development Enabling Act (APIDEA), 200117

The Andhra Pradesh Infrastructure Development Enabling Act, 2001 (“APIDEA”) is the first ever state law to be enacted in India for the purpose of governing infrastructure projects throughout the State. The legislation came into force on August 20, 2001, and is a huge step in the direction of providing a facilitative environment for infrastructure projects within the State. With a view to protect the interests of the investing community and the Developers18 and for reducing administrative and procedural delays, identifying generic project risks, detailing various incentives, detailing the project delivery process and the procedures for reconciliation of disputes, an enabling legal framework has been evolved in enacting the APIDEA. The APIDEA apply to all infrastructure projects implemented through PPP mode in the following sectors:

• Roads (State Highways, Major District Roads, Other District Roads & Village Roads), bridges and bypasses; • Health; • Land reclamation; • Canals and Dams; • Water supply, treatment and distribution; • Waste management; • Sewerage and drainage; • Public markets; • Trade fair, convention, exhibition and cultural centers; • Public buildings; • Inland water transport; • Gas and gas works;

17 The stage of execution of concession agreement, between the private sector developer and the Sponsoring Authority or its agencies, subsequent to selection of the private sector developer through a bidding process. 18 “Developer” means any Private Sector Participant who has entered into a contract for the Infrastructure Project with the Government or Government Agency or Local Authority under the Act. 160 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Sports and recreation infrastructure, public gardens and parks; • Real estate; and • Any other projects or sectors as may be notified by the GoAP.

Salient features of APIDEA:

• Creation of an “Infrastructure Authority” for the entire State of Andhra Pradesh which would have the responsibility of regulating and monitoring infrastructure projects throughout the State. Andhra Pradesh Infrastructure Authority (“APIA”) is a statutory body which was constituted under Section-3 of APIDEA with objective of promoting and providing enablers for private sector participation in infrastructure projects in Andhra Pradesh. • The decision of the Infrastructure Authority on claims relating to infrastructure projects would be final and binding on all statutory and governmental authorities in Andhra Pradesh. • The Infrastructure Authority has also been given a wide range of powers to monitor the project developers, including the power to call for information about the status of the project, etc. from time to time. • The APIDEA provides for the adoption of certain internationally accepted selection procedures, like the Swiss Challenge Approach and direct negotiation approach, competitive and transparent bidding, etc., not only for the primary selection process but also for selection of alternate developers. The APIDEA also provides for an interesting concept, namely, that of an unsolicited or suo moto proposal by a project developer. While all projects are usually bid for upon a decision in this regard by the Infrastructure Authority, private developers may also on their own initiative, bring a proposal to the GoAP. The Infrastructure Authority shall consider the same in its entirety and if the proposal is found to be viable, then the entire selection process as would be followed if the GoAP had initiated the project, would be followed in this case as well and the concession finally given to the most appropriate party. • Power has been given to the GoAP and to the Infrastructure Authority to impose “Abuser Charges”19 and “Polluter Charges”20 on errant project Developers for either not living up to their concession commitments or for other violations of the Act. • The APIDEA also lays down clear criteria which the Infrastructure Authority is required to take into account in considering whether a project is viable, and also to determine which bidder is to be awarded the concession.

19 “Charges for Abuse or Abuser Charges” means the levy of charges by the Infrastructure Authority on any Developer, if any Developer abuses any right accorded under the Concession Agreement, in the course of development, implementation, operation, maintenance, management and transfer of any Infrastructure Project, to the extent as may be specified in the Concession Agreement or such other agreement as may be Prescribed by the Government. 20 “Polluter Charges” means levy of Prescribed charges by the Infrastructure Authority on any Developer, if any Developer pollutes the environment or does not adhere to the specifications and measures for environment preservation & conservation agreed under the contract with the Government or the Government Agency or the Local Authority or fails to stop polluting the environment within 30 days of receipt of notice in writing from the Infrastructure Authority or the Government Agency or the Local Authority.

161 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • With respect to disputes between the Developers and the Infrastructure Authority and/or other State Government bodies, the APIDEA provides for the creation of a Conciliation Board, and goes on to provide further that any proceedings before the Conciliation Board would be treated as a judicial proceeding. • The APIDEA also provides for the creation of an “Infrastructure Projects Fund” while shall be utilized for achieving objects and purposes of the APIDEA and for financing the activities of the Infrastructure Authority. • The Infrastructure Authority would also have a wide range of facilitative functions such as de-bottlenecking of the project development process, acting as the single- window clearance authority for the entire state with respect to infrastructure projects, gauging and building public opinion vis-à-vis specific infrastructure projects etc. • The legislation has been enacted with a view to enable and encourage private sector to invest in the development of the infrastructure like airports, ports, highways, etc. which require huge investments. The legislation provides avenues for funding through Foreign Direct Investment (“FDI”) etc. on varied arrangements which include:

• Build-and-Transfer (“BT”) • Build-Lease-and-Transfer (“BLT”) • Build-Operate-and-Transfer (“BOT”) • Build-Own-and-Operate (“BOO”) • Build-Own-Operate-Transfer (“BOOT”) • Build-Transfer-and-Operate (“BTO”) • Contract-Add-and-Operate (“CAO”) • Develop-Operate-and-Transfer (“DOT”) • Rehabilitate-Operate-and-Transfer (“ROT”) • Rehabilitate-Own-and-Operate (“ROO”)

Infrastructure project delivery process as per APIDEA:

• Project identification:

Either the Infrastructure Authority or the State Government Agency or the Local Authority may identify or conceptualize any infrastructure project. If the Infrastructure Authority identifies or conceptualizes any Infrastructure project, then the same will be referred to the concerned State Government Agency or the Local Authority for its consideration and further action. If the State Government Agency or Local Authority identifies or conceptualizes any infrastructure project, then the same will be referred to the Infrastructure Authority for its consideration, evaluation and further action as may be required.

• Prioritization of projects:

The Infrastructure Authority will prioritize projects based on demand and supply gaps, inter-linkages and any other relevant parameters and create a project pipeline.

162 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Recommendations by the Infrastructure Authority:

The State Government Agency or the Local Authority in accordance with the advice recommendations and suggestions of the Infrastructure Authority shall submit the project to the GoAP along with the proposed concession agreement relating thereto for its consideration and approval.

• Sanction by the GoAP:

The GoAP shall consider the proposal submitted by the State Government Agency or the Local Authority and the proposed concession agreement and either accept the proposal and concession agreement with or without modification or return the proposal and concession agreement to the State Government Agency or the Local Authority for reconsideration or reject the proposal within such time as may be prescribed.

• Consultant selection:

For any project, the State Government Agency or the Local Authority shall ensure adequate competition in the consultant selection process and adequate weightage to the technical capabilities shall be given.

• Developer selection processes:

The State Government Agency or the Local Authority may adopt appropriate Developer selection process including any of the following processes, namely: (i) Direct negotiation, (ii) Swiss Challenge Approach, and (iii) Competitive Bidding.

State government support available for infrastructure projects:

APIDEA provides for the following kind of support (ranked in its order of preferences) to PPP projects by the State Government:

• Administrative support:

The State Government will offer the following administrative support to all the Projects covered under the APIEDA:

• Provide State level statutory clearances within specified time limits after the Project is sanctioned in favor of the Developer. • Automatically grant non-statutory State level clearances, if a project meets specifications, as may be prescribed. • Provide Best Effort support for obtaining all central level clearances. • Undertake all rehabilitation and resettlement activities and recover the cost

163 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report from Developer. • Provide construction power and water at the project site. • Acquire land necessary for the project, if the same does not already belong to the Government.

• Asset based support:

The State Government may offer asset based support which shall comprise:

• Government owned land would be provided at concessional lease charges for projects where ownership would revert to the Government, within a predetermined period from the date of grant of land. • The State Government will commit/facilitate development of linkage Infrastructure for projects.

• Foregoing revenue streams:

The State Government may forego revenue streams. Such support would be in the form of:

• Exemption of sales tax on all inputs required for project construction. • Exemption of stamp duty and registration fees on the first transfer of land, from the Government to the Developer and on Project agreements registered in the State. • Exemption from payment of segniorage fees i.e. cess on minor minerals during construction period.

• Guarantees:

The State Government may guarantee receivables, provided they are not collected directly from users. The State Government may also provide off take guarantees if it is the service distributor and is responsible for collection of user levies.

• Financial support:

Direct financial support may be considered in selective Projects. Extent of financial support shall be used as one of the selection criteria whenever financial support is to be provided.

Key observations

• The Act attempts to anticipate every contingency relating to infrastructure projects and their bidding process. It includes precise rules for a variety of development models and concession agreements – the permissions that would be required, operating conditions

164 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report and controls, payment modalities, penalties for lapses and abuse of development rights or pollution of the environment by developers. • The Statute also specifies how sole bids would be treated or how a limited response would be dealt with or consortium bids would be evaluated. The allocation of generic risks and their disclosure is laid down along with the facilities provided by government. The provisions in the act which covers broadly the objectives of private sector participation in infrastructure development, sectors to be covered under PPP. • The provisions in the act which covers broadly the objectives of private sector participation in infrastructure development, sectors to be covered under PPP, management of PPP projects, processes including project identification, risk identification and mitigation, role of state government, details of concession agreements, appointment of transaction advisors, monitoring and evaluation, etc. deriving better value for money to the user, cost savings and higher operational efficiency, enhanced quality and better management, financial innovations, greater employment generation and to spare public funds for other commercially non-viable but socially justifiable projects.

Andhra Pradesh Industrial Development Policy 2015-2020

Industrial development is a proven means to mitigate poverty and unemployment in any economy as it promotes higher capital formation, raises wage incomes and absorbs surplus workforce to bring about equitable development. Recognizing the same, the state of Andhra Pradesh has prioritized industrial growth and launched the Andhra Pradesh Industrial Development Policy, 2015-20, which aims to establish state-of-the-art infrastructure, promote manufacturing, enhance inclusivity, foster innovation and create employment opportunities across sectors.

Policy approach

In order to achieve its agenda of industrial development in the state, the approach of the Industrial Development Policy encapsulates the overall vision, objectives, and targets that the government aims to achieve in the next 5 years and a broader strategy, focus areas and policy instruments that are envisaged to be utilized to achieve the same.

The vision of the Industrial Development Policy is encompassed in the following vision statement:

“To make Andhra Pradesh a progressive and highly industrialized state… a State that is a center of technology and innovation... And, a joyous population confident of its bright future...”

The overarching objective of the Industrial Development Policy is:

• To ensure sustainable and inclusive industrial growth; • To be among the top 3 states in terms of industrial investments by 2022; • To be the most preferred logistics hub and India’s gateway to East and Southeast

165 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Asia by 2029; and

• To enhance the quantum and quality of skilled manpower and create significant employment opportunities.

Key targets envisaged in the policy are: • Increase the contribution of manufacturing to GSDP from 9.95% (2013-14) to 15% by 2020. • Increase the contribution of industries to GSDP from 20.7% (2013-14) to 25% by 2020. • Attract investment to the tune of INR 2 lakh crore by the end of 2020. • Create employment opportunities for an additional 10 lakh people by the end of 2020.

Figure 4.1: Key target industries

The strategy to attract investments in industrial development is predicated on the characteristic strength factors of the State of Andhra Pradesh like visionary leadership, uninterrupted power supply for industries, conducive business environment, industrial land bank, targeted fiscal incentives, progressive labor policies and skill development, robust infrastructure and effective law and order ecology.

In addition, the policy also provides greater focus to following key sectors which have a relatively higher potential of investment and growth in the State of Andhra Pradesh.

The policy highlights the use of key policy instruments at the disposal of the State Government to encourage investment and promote industrial development. A snapshot of the same is provided in the section below.

166 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Industrial land bank

Non-availability of suitable industrial land is a prominent deterrent to implementation of industrial projects and growth of industries. Therefore, a key policy instrument highlighted in the Industrial Development Policy is the creation of an Industrial Land Bank of over 10 Lakh acres in order to create a strategic edge for attracting investments in the State.

The acquisition of the land inventory is envisaged to be undertaken in a transparent and farmer friendly land pooling /acquisition mechanism. Further inventory of such lands along with survey, GIS information is envisaged to be made available in the public domain and updated on real time basis.

A Land Information System capturing key parameters of the land parcel (such as soil type, distance from sea-ports, airports, railway stations, etc.) is envisaged to be made available online to encourage investors to carry out their land selection assessments with ease. Further, the allotment process for such lands is also expected to be investor friendly with both options of lease and outright sale.

Ease of doing business

Another key policy instrument highlighted by the Industrial Development Policy is the Ease of Doing Business. In order to improve business environment and boost investor confidence, the policy accords highest priority to improve the Ease of Doing Business in the State by providing timely clearances and responsive pre and post investment facilitation services through the following:

• Single desk clearances:

An e-platform which facilitates all necessary clearances for starting and operating an industry within 21 working days with on-line filing and tracking facilities.

• Simplified processes & procedures:

Spot clearances, deemed approval on self- certification, engaging private technical experts for inspections, parallel processing of clearances have also been introduced to expedite closure of application process.

• State investment promotion board:

An enabling administrative structure created to expedite decision making pertaining to industrial projects through monthly meetings of the State Investment Promotion Board chaired by the Chief Minister, GoAP and Empowered Committee of Secretaries chaired by the Chief Secretary to the GoAP.

Labor and skill development

167 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Skilled labor being a key input to any industry, the policy aims to enhance labor capacity in the state by incentivizing the industry to generate employment and promote skill development as well. A Skill Development Corporation has been envisaged to provide funding to build scalable, for-profit vocational training initiatives and enable support systems such as quality assurance, information systems and train the trainer academies either directly or through partnerships.

Industries are also to be incentivized to participate actively in development of skilled manpower, drafting training curriculum to make it sector-specific, industry responsive and market driven. A Manpower Information System (“MIS”) is also envisaged to provide relevant and timely labor information on availability across multiple skill levels/sectors, demographics and geographies.

International desks

To be a favored destination for overseas investors and promote accelerated growth in foreign investments in the State, the Industrial Policy aims to provide a healthy business environment with predictable and non-discriminatory regime, world class infrastructure, state-of-art R&D centers and quality human capital.

Further, support services by select country specific desks are also envisaged to provide bespoke investor facilitation, handholding services, and a comprehensive portal with business opportunity related information.

Fiscal incentives

The policy induces sector specific fiscal incentives to improve the competitiveness of Andhra Pradesh based industrial units depending on the size and category of the industry ranging from MSME’s21 (as defined by MSMED Act 200622), Large (investment up to INR 500 crores) and Mega Industries (investment beyond INR 500 crore or employment beyond 2000). Further tailor-made incentives are also provided to mega industrial projects on case to case basis.

Fiscal Incentives are structured in the policy including reimbursement of power cost, stamp duty, Value Added Tax (“VAT”) / Central Sales Tax (“CST”) or State Goods and Services Tax (“SGST”); capital subsidy on plant and machinery; subsidy on sustainable green measures; special package incentives to Scheduled Caste (“SC”), Scheduled Tribe (ST), Backward Caste (BC) and Woman Entrepreneurs, reimbursement of cost involved in skill upgradation and training local manpower and Swachh Andhra incentives for companies engaged in recycling waste into environment friendly products/energy. Following table summarizes the fiscal incentives available under the Andhra Pradesh Industrial Development Policy 2015-2020.

21 Micro, Small and Medium Enterprises 22 Micro, Small and Medium Enterprises Development Act, 2006 168 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report Key Observations

• Incentives on purchase of land, lease of land / shed / buildings

• MSME & Large Industries

• 100% reimbursement of stamp duty and transfer duty

• SC/ST/BC Entrepreneurs

• 50% rebate in land cost limited to INR 20 lakhs in Industrial Estates/Industrial Parks • 25% Land conversion charges for the industrial use limited to INR 10 lakhs

• Capital Assistance / Investment Subsidy / Interest Subsidy

• SC/ST/BC Entrepreneurs

• Seed capital assistance to First Generation Entrepreneurs @25% of Machinery cost. • 35% investment subsidy on fixed capital Investment and additional 10% investment subsidy for SC/ST/BC Women Entrepreneurs, with a max. limit per unit of INR 75 lakhs. • Additional 5% investment subsidy for units set up in Scheduled Areas by ST entrepreneurs with a max. limit per unit is INR 75 lakhs • Interest subsidy on the term loan taken on the fixed capital investment in excess of 3% per annum subject to a maximum reimbursement of 9% per annum for a period of 5 years from commencement of commercial production

• Women Entrepreneurs

• Seed capital assistance to First Generation Entrepreneurs @15% of Machinery cost • 25% investment subsidy on fixed capital Investment with a maximum limit per unit of INR 30 lakhs

• Power and Water Subsidy

• MSME & Large Industries

• Fixed power cost reimbursement @ INR 1.00 per unit for a period of 5 years from commencement of commercial production

169 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• SC/ST/BC Entrepreneurs

• Fixed power cost reimbursement @ INR 1.50 per unit for 5 years from commencement of commercial production

• Tax Related Incentives

• Micro and Small Enterprises

• Reimbursement of 100% of net VAT/CST or SGST for a period of 5 years from commencement of commercial production • Medium Enterprises

• Reimbursement of 75% of net VAT/CST or SGST for a period of 7 years from commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier.

• Large Industries

• Reimbursement of 50% of net VAT/CST or SGST for a period of 7 years from commencement of commercial production or up to realization of 100% fixed capital investment, whichever is earlier.

Note: For sector specific industries like apparel, food processing, biotech, automobile VAT/CST/SGST concession may be higher.

• Subsidy on Plant & Machinery

• MSME

• 35% subsidy on cost of plant and machinery for specific cleaner production measures limited to INR 35 lakh

• Large Industries

• 10% subsidy on cost of plant and machinery for specific cleaner production measures limited to INR 35 lakhs

• Subsidy for Sustainable Green Measures

• MSME & Large Industries

170 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • 25% subsidy for sustainable green measures on total fixed capital investment of the project for green measures with a ceiling of INR 50 crore

• Other Incentives

• SC/ST/BC Entrepreneurs

• 50% Reimbursement of cost involved in skill upgradation and training local manpower limited to INR 5,000 per person • Subsidy on the expenses incurred for quality certification/ patent registration (100% for SC/ST and 50% for BC) limited to INR 3 lakhs for micro and small enterprises • Infrastructure like roads, power and water will be provided at doorstep of the industry for standalone units by contributing 50% of the cost of infrastructure from Industrial Infrastructure Development Fund (“IIDF”) with a ceiling of INR 1 crore

Planned industrial development

The policy encourages planned, responsible and sustainable industrial development by providing impetus on cluster based approach and multi-sector/sector specific Industrial parks by the Private sector on a PPP basis.

Planned industrial development approach includes developing Industrial Corridors like Visakhapatnam-Chennai, Chennai-Bengaluru and Petroleum, Chemicals and Petrochemicals Investment Region in order to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development.

The policy also envisages development of National Investment and Manufacturing Zones (“NIMZ”), Information Technology Investment Regions (“ITIR”), Smart Industrial Township (“SIT”), Special Economic Zones (“SEZ”) and other Industrial Parks.

Industrial Area Development Authorities are envisaged under the aegis of article 243Q of the constitution to facilitate and encourage investment into specific investment zones like SIRs, industrial parks, Industrial corridor nodes, etc.

Incubation Center for promoting start-ups

The policy provides for handholding the setting up of world-class incubation centers to provide much needed thrust to promote startups and cultivate innovative ideas. Such incubation centers are envisaged in Smart Industrial Townships (“SIT”), premier educational institutes, mega industrial parks and startup villages. Additionally, an incubation center is envisaged be set up in IIM Visakhapatnam on PPP basis. 171 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Key observations

• The policy envisages creation of industrial land bank and allows for land allotment under lease basis as well as outright sale basis which is expected to ease the process for land acquisition for industrial projects and also boost demand for setting up of industries in the State. • Further focus on ease of doing business and provision of fiscal incentives would also encourage future investments into industrial development. • The focus on planned industrial development encourages responsible and sustainable industrial development discouraging setting up of industrial units in residential zones, fragile ecosystems and encouraging cluster based approach for industrial development. • Specifically in Visakhapatnam, industrial projects like VCIC, ITIR, EHMC, IT/ITeS projects, incubation centers and Smart Industrial Townships have been envisaged. While some of these projects would involve implementation by government entities, others are envisaged on PPP mode. The planning exercise for Visakhapatnam Smart City would have to factor the creation of industrial infrastructure to ensure an integrated approach in the overall development plan for the Visakhapatnam Smart City.

Andhra Pradesh Tourism Policy 2015-2020

Andhra Pradesh is on the threshold of evolving as the most preferred tourist destination in the country. The State offers myriad experiences to tourists, and multifarious opportunities to investors. The proactive Tourism Policy, coupled with abundant and world-class tourism opportunities available in the State, shall place the State on the tourism map of the world.

Andhra Pradesh ranks 5th amongst Indian states attracting Domestic Tourist Visits with 93.3 million tourists in 2014 corresponding to 7.3% of the total domestic tourist visits in the country. In terms of Foreign Tourist Visits, the state currently ranks 22nd in the country; however, there have been a significant growth of over 11% in foreign visits. Almost 80% of the domestic tourists are received by five districts namely Chittoor (39%), East Godavari (11%), Srikakulam (9.5%), Krishna (8%) and Visakhapatnam (6.3%). In the case of foreign tourist arrivals, Visakhapatnam contributes approximately 82% of arrivals followed by Chittoor (7%) and Nellore (4.3%).

Tourism can act as a major engine of enabling socio-economic development of the state through enhanced revenues, employment generation and significant contributing to the GDP of the State. The Andhra Pradesh Tourism Policy 2015-2020 offers a proactive approach at policy, which coupled with abundant world-class tourism opportunities available in the State, is expected to place the State on the tourism map of the world.

Policy Approach

In order to create an enabling environment to encourage private investments, the approach of the State is to provide potential private investors with excellent support infrastructure and

172 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report access to a host of scenic locations, virgin beaches, backwaters, pristine forest areas and divine destinations for developing world-class Tourism Infrastructure Projects and Services.

The vision of the Andhra Pradesh Tourism Policy 2015-20 is encompassed in the following vision statement:

“To develop Andhra Pradesh as one of the most preferred tourist destinations through sustained investments, robust Tourism Infrastructure projects and services, and provide world-class diverse tourist experience”

The overall objective of the Policy is:

• To position Andhra Pradesh as a globally recognized tourism destination. • To become the most preferred choice for tourism investments in the country. • To enable tourism sector to become a significant employment generator. • To deliver world-class experiences by offering unique and diverse Tourism Infrastructure Projects and Services. • To nurture and sustain the rich culture, heritage and environment of the State.

In line with the overall objectives, the policy identifies the following targets:

• To be the most preferred State in India for domestic tourist arrivals, and among top 12 states for international tourist arrivals. • To facilitate investments in the tourism sector to the tune of INR 10,000 crore and contribute 7% to the State GDP by 2020. • To facilitate creation of 5 lakh additional jobs in the tourism sector.

In order to achieve the targets set, policy instruments identified include enabling a conducive business environment, incentives for private investments, industry status for tourism projects, comprehensive skill development and capacity building measures, marketing and branding and facilitating investments through a dedicated Investment Promotion team.

Investment Strategy

The policy also highlights an Investment Strategy wherein the majority of new projects in the sector is envisaged by private investment with a small share of residual projects under PPP and direct government investment modes.

Private Sector Projects are envisaged to ensure that facilities and standards are amongst global best practices, PPPs projects are envisaged across all the major themes and sub-themes identified under the Tourism Mission strategy, whereas government projects can be selective where government investment is required to drive tourist activities.

Tourism Department has been mandated to develop a project pipeline outlining investment opportunities in the state and a Land Bank for Tourism Projects is also proposed to ensure

173 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report timely project implementation. Further a uniform tourism zone is envisaged by way of which policy incentives can be applied uniformly across the State, irrespective of the location of the Project / Service.

Fiscal incentives

A snapshot of incentives available under the Andhra Pradesh Tourism Policy 2015- 2020 is presented below.

• Incentives on purchase of land, lease of land / buildings

• 100% Reimbursement of Registration and Stamp duty charges • Waiving of Non-Agriculture Land Assessment (“NALA”) tax or Land Use Conversion charge, as applicable • For setting up of Tourism Infrastructure projects that are proposed on government land, lease rent of 2% of ‘Basic Market Value’ of the land from the Date of Possession, as per the valuation of the concerned sub-registrar office, will be charged to the developers with a 5% annual increase.

• Capital Assistance / Investment Subsidy / Interest Subsidy

• Investment Subsidy to investors for setting up and operating the Tourism Services. • Project Cost < INR 1 crore: 15% of value of Total Project Cost, excluding the cost of land • Project Cost from INR 1-10 crore: 15% of value of Total Project Cost, excluding the cost of land, or INR 1.25 crore, whichever is less • Project Cost from INR 10 -20 crore: 15% of value of Total Project Cost, excluding the cost of land, or INR 2 crore, whichever is less

• Power and Water Subsidy

• All Tourism Infrastructure projects (new as well as existing) which avail High Tension (“HT”) connection, will be charged as per the rates provided in the “H.T. Category-III: Airports, Railway Station and Bus Stations” in the Andhra Pradesh Electricity Regulatory Commission (“APERC”) Tariffs

• Tax Related Incentives

• VAT will be charged at 5% for all new Tourism Infrastructure projects from date of commencement of operations • 100% exemption of Luxury Tax for all new Tourism Infrastructure projects meeting the minimum requirements, for a period of 3 years from date of commercial operations

174 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • 100% exemption of Entertainment Tax for first 3 years from date of commercial operations

• Other Incentives

• To encourage and accelerate rapid world-class tourism infrastructure development, GoAP shall accord industry status to new Tourism Infrastructure projects. • Complementary/Linkage Infrastructure Development Assistance: Incentives from the tourism budget to support investors in providing last-mile connectivity for establishing comprehensive Tourism Infrastructure project. • Total Project Cost < INR 50 crores: Up to a maximum of 5% of Total Project Cost, excluding the cost of land, or INR 2 crore, whichever is less, but not exceeding the total complementary/ linkage infrastructure cost • Total Project Cost from INR 50-100 crores: Up to a maximum of 7.5% of Total Project Cost, excluding the cost of land, or INR 5 crores, whichever is less, but not exceeding the total complementary/ linkage infrastructure cost • Total Project Cost from INR 100 - 200 crores: Up to a maximum of 15% of Total Project Cost, excluding the cost of land, or INR 10 crores, whichever is less, but not exceeding the total complementary/ linkage infrastructure cost • Mega Tourism Infrastructure projects (projects with investment above INR 200 crores): Additional incentives and concessions on a case-to-case basis may be granted with approval of the State Tourism Promotion Board (STPB) / State Tourism Promotion Committee (STPC) or the State Economic Development Board (SEDB) as the case may be.

Institutional framework

While incentives improve the viability of the projects, a strong institutional framework assists in facilitating a conducive environment for setup and operations of Tourism Infrastructure Projects and Tourism Services, and improving Ease of Doing Business. The policy aims to boost investor confidence by facilitating timely clearances and responsive post-investment facilitation services. Institutional arrangements are also envisaged to accelerate development and address inter-departmental coordination.

In line with the institutional framework adopted for industrial promotion, tourism promotion also includes an apex level decision making body chaired by the Chief Minister, GoAP named State Tourism Promotion Board (“STPB”) which approves

projects, incentives, policies and periodically monitors project implementation in tourism. The STPB includes an evaluation and execution committee for faster decision making named the

175 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report State Tourism Promotion Committee (“STPC”) chaired by the Chief Secretary, GoAP. Further PPP projects are envisaged to be fast tracked by an Empowered Committee (“EC”).

The Commissionerate of Tourism (“CoT”) is envisaged to play the role of an “Investment Facilitation Cell” and “Single Desk Bureau” responsible for inviting and processing tourism investment proposals, attending road shows, soliciting investment, carrying out initial due- diligence on investment proposals received. Further the single desk system set up in the Industries Department is envisaged to be leveraged to ensure approvals for tourism sector within 21 working days.

Skill development and capacity building

The policy also attempts to address concerns regarding demand for skilled workforce to keep pace with the sustainable growth of tourism sector by raising awareness of the sector and importance of good customer service in local communities and cultivate a pool of trained world class manpower for the sector. Some of the skill development and capacity building initiatives in the policy include:

• Tourism Infrastructure Projects status and incentives for hospitality focused education institutes, focused on Hospitality Education. • Skill Development Corporation envisaged for the state is expected to develop strategy and undertake initiatives for skill development in the hospitality and tourism sector. • Establishment of a Tourism University with international technical collaboration. • Improving the quality of education by strengthening existing institutions and promoting new institutions through the proposed Tourism University. • Vocational training institutes for roles such as tour guides, tour operators, travel agents, drivers, chefs, tourism service operators, tourism security agencies, etc. • Training institutes empanelled by National Skill Development Corporation (“NSDC”) or the Andhra Pradesh State Skill Development Corporation (“APSSDC”). • Encouraging existing players to conduct relevant courses and establishing dedicated in-house training centers.

Key activities and initiatives

Among other initiatives, AP State as a part of Tourism policy envisages the following key activities:

• Developing a Shelf of Projects outlining the investment opportunities in the State to achieve the target investment of INR 10,000 crores by 2020. • Creating and maintaining a Land Bank for Tourism Projects for ensuring timely grounding of Tourism Infrastructure projects.

• Creating 6 tourist hubs – Visakhapatnam; Rajahmundry-Konaseema-Kakinada; Vijayawada-Amaravati; Tirupati; Ananthapuramu-Puttaparthi and Srisailam. • Promoting MICE tourism in the state, by developing Mega Convention Centers in

176 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report • Visakhapatnam, Tirupati and Vijayawada. • Setting up of tiger reserves, wildlife & bird sanctuaries, hill stations, etc. • Setting up of aqua based theme parks, amusement parks, cruises to eco-tourism and leisure tourism. • Developing initiatives to unlock further value from Temple tourism creation of a Buddhist Circuit to attract both domestic and international tourists alike. • Encouraging medical tourism as world-class hospitals and skilled medical professionals makes a strong pitch. • Filliping various rural tourism schemes with an aim to showcase the rural core competence in art, craft, handloom, textiles and the natural environment.

Key observations

• The Tourism Policy 2015-20 of Andhra Pradesh does not provide any special provisions for conversion of Land use for Tourism Projects (As per 3.2.2 of the Tourism Policy, Private investors will follow due approval process for conversion of land for Tourism Infrastructure projects as required by the Revenue Department or Urban Development Authority). However, the Smart City SPV should have provisions to enable easier conversion of Land Use for Tourism Projects keeping in view the environmental concerns if any. • The Tourism Policy does not specify Capacity Building measures and measures that can be taken for inclusion of the local population to promote/ develop tourism by making them stakeholders in the development and promotion of Tourism Sector.

Summary

At the central level, Government of India has taken measures to promote flow of private capital in infrastructure by actively encouraging public private partnerships. Below figure summarizes the enabling interventions made by the Central Government.

177 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

At the state level, Government of Andhra Pradesh has been pioneer in enacting the APIDEA. It covers the infrastructure sectors of highways/bridges, airports, seaports, power, water supply and sanitation, telecommunication networks, gas distribution, and waste management. It also covers urban infrastructure, including housing, urban development, medical facilities, and leisure facilities. The legislation also aims to facilitate private developers in securing the mandatory administrative approvals and lays down provisions for arbitration and fiscal regulation.

A series of interventions have been made at central and state level to enable the implementation of infrastructure projects through private sector participation. However, below are key areas that require improvement for efficient delivery of infrastructure projects:

• Developing bankable project documents acceptable to government, bidders, and lenders - selection, design and development of most appropriate and feasible projects while ensuring that the financial markets are in a position (legally, financially and practically) to provide the project with the investment it needs (debt, equity and otherwise), including by providing Government support; • Appropriate project structuring - allocating risk to the private sector while insulating investors from those risks best borne by the contracting agency or the Government; • Managing the role of government without conflict of interests, as shareholder, regulator, licensor, and service provider; • Land selection and acquisition—facilitating involvement of all the stakeholders, anticipation of problems, and working towards acceptable solutions; • Dealing with the many decision-making levels in the government;

178 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Timely rehabilitation and resettlement of project-affected persons; and • Obtaining timely statutory clearances related to defense, airspace, and environmental agencies.

179 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

5. Overarching Strategy for Integrated Smart Urban Development

Introduction and objectives

Some of the strategies below are universal smart city strategies; others are specific to Vizag. Furthermore, some of the strategies are not technically “smart city” strategies, but they are important for implementing the vision for the future development of the city, so have been included here.

Goals and objectives

The primary goal of “Smart City” development in the Greater Vizag region is to improve livability for private and corporate citizens. The intent of the Smart City management framework and projects is to set in motion a virtuous circle of infrastructure investments, high-quality urban environment initiatives, investments and workforce attraction, increased local government revenue and additional infrastructure investments. The forthcoming plans and projects are intended to catalyze sustainable, cyclical progress towards regional goals by promoting:

Guiding principles and approaches

• Get the most out of existing infrastructure systems and investments

180 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Develop and use more storage to address peak-use constraints • Prioritize retrofit over redevelopment and greenfield expansion • Leapfrog over old unresponsive technologies towards selection of more efficient ICT- enabled delivery methods • Cultivate resilient, networked systems to build capacity and reduce vulnerability

Summary of validated goals and objectives

During the workshops and focus groups conducted under Phase 1 of the project, the above goals, objectives and guiding principles were presented, discussed and validated. In addition the following priority concepts had been requested and reiterated by GVMC leaders:

• Focus service infrastructure coverage enhancements primarily within the GVMC boundary to take advantage of economies of scale and to reach the most people with the least effort. • Conduct a land use and connectivity review at the scale of the VUDA geography to inform the forthcoming VUDA-sponsored regional masterplan update and ensure that development frameworks support complimentary growth at optimal locations throughout the region. • Benchmark Greater Vizag’s attributes against 1) Competing cities nationally and in Southeast Asia in order to demonstrate the comparative advantages of northern Andhra Pradesh, as well as 2) Global cities that exhibit economic and social characteristics desired by greater Vizag.

Target economic growth sectors

Logistics:

The network of coastal ports, existing and proposed, and complimentary rail network create a compelling case for assessing the regional opportunity to establish a more robust logistics hub within Southeast Asia. Visakhapatnam port ranked fifth among Indian ports in gross cargo handled, according to the Indian Ports Association in 2015.

Healthcare:

The hospital network within the GVMC represents a potential growth opportunity based upon proximity to medical colleges, existing market for providing tertiary care services to people from outside the region and increasing demand associated with an increasing regional population.

Information technology:

181 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The apparent success of the IT city in the northern portion of the GVMC coupled with previous IT/knowledge economy growth in neighboring Hyderabad suggest studying the market offer of Vizag and its associated growth opportunity within the IT sector.

Pharmaceuticals:

The success of the Jawaharlal Nehru Pharma City (JNPC) S.E.Z., connections to GITAM and Andhra University Pharma programs and available workforce suggest Pharma as a foundational element for growth.

Tourism:

The region’s natural assets as well as existing cultural tourism opportunities can possibly be reinforced by enhancements to the beach tourism industry. The potential to grow this sector based on the convergence of these attributes and supporting connectivity should be studied in detail.

Urban Growth Management Strategies

Promote compact development

Compactness of urban form is the first key to smarter cities. First, absolute size matters: small apartments and row houses consume fewer resources in construction and generate fewer GHGs during operation than freestanding houses. Second, many smarter urban infrastructure technologies perform better at high development densities. For example, district cooling, which is less energy-intensive than having individual chillers in every building, generally requires a minimum development density of 40 dwelling units per hectare to be cost-effective. Development density also correlates strongly with lower energy consumption in transportation.

Create green framework to preserve ridges and steer growth

Creating a network of open spaces and using it to structure urbanization is sometimes referred to as Landscape Urbanism. This is a very deliberate approach that sets aside selected parcels of land for parks and natural open spaces, preferably in advance of urban development. Frederick Law Olmstead’s Golden Gate Park (San Francisco), Central Park (Manhattan, NY) and Prospect Park (Brooklyn, NY) are examples of individual parks that structured whole sections of the city. At a pan-city level, the Mall + Rock Creek Park + open spaces along the Potomac have also guided the growth of much of the city center in Washington, DC.

Generally speaking, this is not a “smart city” strategy as much as it is a growth management strategy. It is particularly relevant to Visakhapatnam in that the beauty of the urban setting derives not only from the coastline, but also from the network of ridges that divide the urbanized areas into a series of “rooms” facing the ocean. The contrast between the low-lying, white and compact urbanized areas and the green steep ridges that separate them is striking. To preserve and enhance the natural beauty of Vizag, the ridges need to be preserved (not built upon) and, to the extent possible, connected into a pan-city network of public open spaces.

182 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

This effort is central to Visakhapatnam’s development vision because open spaces are a key part of the livability that Vizag aims to deliver to its citizens. This livability is in turn the key to Vizag’s economic competitiveness and community well-being.

Preserving the ridges is no mean feat, however, especially as development pressure rises. In many cities around the world (Rio de Janeiro, Manila, Mexico City…) informal housing creeps up the sides of (or worse, completely overruns) inner city ridges and hills. Closer to home, this is evident today in the center of Vijayawada, where development has already covered the bottom third of some centrally located ridges. In Vizag too, there is creeping urbanization up the side of the ridge separating the city center from Health City, and even more hillside growth south of the navy base / industrial area.

This problem of urbanization in natural open spaces is often one of housing supply and demand in combination with weak development control. Building on steep slopes is neither easy nor cheap; households will choose to build on flatter sites if they are available, affordable and reasonably well-located in relation to jobs and services. The defense of the ridges in Vizag requires a number of sub-strategies:

• As part of the city-wide management of the housing market, GVMC should work to enable the delivery to market of a sufficient number of “housing solutions” (constructed units, core housing and/or serviced land plots) to meet the demand from in-migrants as well as natural population growth. (This will also help to keep housing prices more affordable, which is covered under Economic Development Strategies below.) The housing component of the Integrated Master Plan to be prepared in Phase II will address this issue. • GVMC should create a formal pan-city “green framework” that delineates in a geographic information system the boundaries of specific land parcels. The framework should “grandfather in” existing open spaces and natural areas such as the ridges, beaches and parks. New parks and connecting (in some cases, lineal) parks should also be considered in the design of the green framework, a concept version of which will be included in the Integrated Master Plan in Phase II. In the case of public lands, the parcels should be marked on the ground and the framework should be widely publicized so that citizens understand these lands are important and building is not allowed there. In the case of private lands, GVMC should follow International Finance Corporation (World Bank Group) guidelines for land acquisition and resettlement, as required. • GVMC should step up its efforts to enforce development control in the green framework. This will require prohibiting construction in those areas by more regular monitoring of urbanization efforts by local residents as well as remedial action in case of construction within the areas of the green framework. GVMC has a good track record in this area, as evidenced by the comparatively minimal development on the ridges. Redoubled efforts in this area will be central to successful urban growth management in the coming years. • The “land trust” is a well-established mechanism for preserving open space for use by future generations. Landowners transfer use rights to specific parcels to the land trust, a special-purpose legal entity. The by-laws of the trust require that the land remain undeveloped in perpetuity. Improvements such as pathways and signage can be made to

183 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

the land, if so specified in the by-laws. GVMC should consider the use of land trusts to protect certain parts of the green framework.

Intensify development of urban sub-centers:

Many of the strategic directions outlined in Vizag’s vision require the development or redevelopment of specific urban sub-centers. These are identified in the Phase II Terms of Reference as “key urban centers” and include the central business district, Old Town, Rushikonda and selected urban sub-centers in the industrial area in the south. The rationale for focusing on the development of these areas is as follows:

• Central Business District:

The CBD is important to the city of Vizag as an administrative and commercial center. Thousands of people work and shop there daily. Along with the beachfront, it is one of the “faces” that the city puts forward to residents and visitors alike. While the CBD is already vibrant, with substantial pedestrian traffic and many retail shopping destinations, it should be improved in order to be more pedestrian-friendly and have a wider land use mix. There should be more cultural and entertainment options in the CBD. The CBD should be easier and more pleasant to visit. This can be achieved through a combination of public realm design (including sidewalk improvements), traffic management, creation of more vehicle parking, and non-motorized transportation facilities and services. An urban design code should also be adopted. The CBD should also function in future as a financial center, as the growth of the logistics sector based in nearby Visakhapatnam Port (as well as other ports and the airport city) will require lead to financial sector development too. Shipping companies, freight forwarders, warehousing firms and other logistics companies will require capital to start up and grow their operations. Rather than having them borrow from banks in other cities, GVMC should create the conditions for the growth of local financial services.

• Old Town:

This is where the city of Visakhapatnam was founded and is its most historical area. Old Town should serve the pan-city function of a cultural and entertainment district for Vizagites and tourists alike. Architecturally and historically valuable buildings and spaces should be designated and preserved / restored. Cultural amenities such as museums, art galleries, crafts markets, etc. can be located here. The public realm should be improved to be more attractive and pedestrian-friendly. Transportation connections with the CBD, R.K. beachfront and other key destinations should be improved. The cultural amenities will combine with retail and entertainment options to make Old Town a regional destination.

• Rushikonda:

Consistent with Vizag’s vision, the scenic area of Rushikonda will have a double economic function: employment and residential center for Digital / IT and other

184 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

knowledge industry workers, on the one hand, and national and international tourist destination, on the other. The two sets of users have similar requirements for the area, most importantly development of the beachfront as an attractive, walkable area with public access and entertainment options. Development will have to be undertaken at the right density and with the right urban form, which will probably be limited to low-rise, low to medium density (to be determined during Phase II area planning). Urban design guidelines will be needed for the whole area. Preservation and connection of open spaces will be a priority. The amenities and services that the two user groups prefer to have will be taken into account in the preparation and implementation of a local area plan for Rushikonda.

• Industrial area sub-centers:

While the conditions in the housing areas of the industrial estates south of the city center are generally adequate, the mixed-use areas that have sprung up outside and between the formal estates are far from sustainable. These are generally unplanned or under-planned areas with inefficient land use patterns and inadequate infrastructure and social services. The urban local bodies lack the capacity to plan or develop these areas in a cohesive and logical manner. It is therefore proposed as part of Phase II (and subject to approval by GVMC and/or Visakhapatnam District) to prepare a local area plan for one such sub- center. A representative sub-center should be selected so that the approach can be replicated, if successful, at a later date. The objective of the plan will be to provide a physical and policy framework for structuring future growth in these informal areas in a way that satisfies the needs of local residents for housing, basic services and environmental quality. The local area plan will include transportation improvements to structure land development, corresponding water and sanitation improvements, flexible land use management tools such as mixed-use zoning, and incremental development mechanisms to allow subdivision and development of private land plots over time, as public infrastructure is provided and land values rise.

Test integrated smart city approaches in pilot zones, then roll out to larger geographic areas:

This strategy has already been adopted by GVMC, as evidenced by the smart city pilot area along the beachfront proposed under the Smart City Challenge Proposal. Some of the smart technology and urban management approaches will need to be adapted to the Vizag context. Whether they work and how they work will be clearer after the pilot projects, which will enable a more efficient and cost-effective roll-out to larger areas.

Apply different smart city approaches to retrofit, redevelopment and greenfield areas:

Smart urban growth management approaches should vary by type of urban fabric.

• Greenfield areas:

185 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

This is the easiest context in which to apply conventional ICT-based smart city technology. When you are starting from a tabula rasa, you can introduce the appropriate level of sophisticated technology from the beginning. Taking a life-cycle costing approach, infrastructure planners can evaluate whether a given technology will have a higher benefit-cost ration than a conventional alternative. For example, will district cooling in the airport city in Vizag be more cost-effective and have a smaller ecological footprint than having central air conditioning in every building? Feasibility analysis should be able to answer this question and guide the investment decision. At the next level of complexity, can smart grid be used in a cost-effective manner to increase the use of renewable energy sources with the appropriate level of energy storage in the airport city? Perhaps most importantly, when both the infrastructure systems and the physical form of the area are in play, what synergies can be created between the two? By orienting buildings in relation to the sun and wind, on the one hand, and using energy-efficient party-wall configurations on the other, how much energy can be saved through urban form, thereby decreasing the capacity of the power system that has to be built? In greenfield development, these interrelated questions can be answered in a systematic manner from a cost-benefit perspective.

• Redevelopment:

Wholesale redevelopment is essentially the same as greenfield, except that one must plug into the existing infrastructure systems that connect to the site. In the Vizag CBD, for example, it is desirable to keep the large majority of the existing buildings, since they have not reached the end of their useful lives and replacing them would have a large cost in terms of GHG emissions. But there may be parts of blocks or entire blocks where the benefits of redeveloping would outweigh the costs. In that case, infrastructure technologies must be consistent with the systems in place and are somewhat constrained by what they can or cannot connect to at the edge of the site. In a peripheral area of Vizag that is not served by the wastewater collection network, for example, it will not be possible to introduce ICT-based wastewater system monitoring because there is no network to connect to. Furthermore, the size of the redevelopment area will impact the feasibility of introducing new systems and technologies; when it comes to district cooling and smart grid, for example, some sites will prove through feasibility analysis to be too small to justify, technically and/or financially, the application of these technologies. On the other hand, some redevelopment areas may be capable of powerful demonstration effects, leading adjacent areas to adopt similar technologies, designs or management practices, in the case of successful pilot projects. For example, one can imagine that a successful structured parking solution, complete with web-accessible capacity data, delivered via PPP within a few blocks of the GVMC complex would be emulated quickly in adjacent areas.

• Retrofit:

This is the perhaps the most challenging type of urban fabric in which to introduce smart infrastructure, yet given the large size of the existing urbanized area, retrofit areas have the greatest potential to produce positive results. The Smart City Challenge Proposal

186 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

(AECOM/IBM, 2015) includes many concrete proposals for retrofitting the proposed Smart City pilot project along R.K. Beach road. In terms of a general strategy, the following elements can be considered:

• Since the urban settlement pattern is already established, layout and urban design factors are less important (because have lower potential for impact) than technology and infrastructure management measures. • In any case, data on existing flows of water, energy and traffic of all kinds can be collected and shared on a systematic basis. In Vizag to date, very little flow- monitoring technology has been introduced, so there is considerable scope for experimentation and improvement. The smart infrastructure delivery guidelines to be prepared under Task 4 will provide specific recommendations in the area related to energy, transportation and water / sanitation. • As in any other urban planning initiative, involving local stakeholders including residents in the planning process is a key to success. Their support will be critical for a successful introduction of new technologies. Detailed knowledge of their behavior patterns will help design solutions that achieve a close fit with current and evolving conditions on the ground. • Relatively small-scale improvements combining multiple services or aiming to achieve multiple objectives can have a big impact at a reasonable cost. For generations town planners have strived to identify this kind of “catalytic investments” capable of jump-starting the transformation of a neighborhood or a city. From a smart city perspective, these can include, for example, the combined bus stop / public toilet / bicycle rental facilities that the Smart City Challenge Proposal identified in the pilot project area. Similarly, one good multi-modal transportation corridor running through the CBD, complete with “next bus” applications, smartly timed traffic lights, rationalized street designs with more space for bikers and pedestrians could have a powerful demonstration effect on other major arterials in Vizag’s city center.

Figure 5.1 shows the sketch plan for greater Vizag included in the Mission Statement. It divides the city in to three main areas (commercial center, industrial south, and knowledge industry north). Within that there are a number of specialized areas designed to promote the development of specific economic sectors, including such existing areas as Pharma City, IT City, and the shipyard, as well as proposed areas like the Smart City Challenge pilot district, a beach tourism area from Rushikonda to Bheemili, and the airport city. The drawing also shows the regional transportation network, notably with the bypass road, and the regional centers which will absorb a significant share of population growth over the next 15 years.

Figure 5.1. Concept Plan for Greater Visakhapatnam 2016-2030

187 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Urban and infrastructure planning strategies

Maximize the efficiency of existing infrastructure before extending systems through capital improvements

Using ICT to improve the efficiency of existing infrastructure networks will generally produce more or better services at a lower marginal cost than system extensions. GVMC and other infrastructure service providers (ISP) in Vizag region should prioritize efficiency interventions over large-scale capital improvements. That does not mean that system extensions are unadvisable; rather, the efficiency interventions should be done first or as a matter of priority because their benefit-cost ratios are higher. In Vizag, ISPs have relatively little data about the existing operations of their system. Standard smart city interventions such as SCADA, smart meters and geographic information systems can be employed to improve ISP understanding of the flows within and performance of infrastructure systems, thereby enabling smarter decisions about how to bring supply to customers in an efficient and timely fashion. Once ISPs have taken advantage of this “low hanging fruit,” they can consider more costly capital interventions that are necessary to extend coverage to unserved populations or to raise service levels.

Get smart incrementally, in keeping with funding availability and institutional capacity

188 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Given the current low level of monitoring and automation in Vizag’s infrastructure systems, it will not always be possible to apply in the short term the most advanced technology for system operation. Nor will funding be available in every case. So GVMC and other stakeholders can introduce smart infrastructure technology and approaches gradually, in a way that is consistent with the technical features of the systems, the institutional capacity of the ISPs and the available funding. Some smart city approaches do not have to include ICT. For example, monitoring of stormwater management systems can be done by people observing flows and reporting back to a central monitoring point in the short term, and by SCADA or other ICT interventions at a later date.

Promote collaboration across disciplines through formal institutional structures

The synergies among infrastructure systems are many and well-known. For example, energy efficiency measures in water and wastewater systems and waste-to-energy schemes can reduce the demand for electrical power, resulting in lower power costs per megawatt hour. But achieving these synergies can only take place when the people and organizational structures responsible for infrastructure planning and operation work together. This is one of the greatest challenges of integrated smart city planning and management. Political leadership and formal institutional structures are necessary to get people “out of their silos.” To that end, GVMC and the Visakhapatnam District should create a coordinating committee composed of officials responsible for land use, water and sanitation, energy and transportation services. This committee should be created at the level of the District Collector’s office so as to facilitate collaboration among GVMC, other ULBs, and the other infrastructure providers operating in the VUDA planning area. The offices of the District Collector and the GVMC Commissioner will both be instrumental in securing the necessary buy-in and participation by the many actors involved.

Use demand management and storage to shave peak loads

Operators of infrastructure systems are often challenged by the schedule of service delivery. Hourly, weekly and year schedules all have peaks and troughs. Providing service at the peak time requires a system with a greater supply capacity, which in turn requires more funding for development and operation. A smart approach is to smooth out the consumption patterns to avoid the highest peaks. This can be done through storage and demand management. Storage of energy or water during low periods (e.g., the middle of the day for residential areas) and subsequent use of the supply is an effective way to “shave the peak” in a daily consumption schedule. Alternatively, utilities and ULB departments can help customers consume less. Metering of services and payment by unit consumed usually results in a reduction in consumption. Public education, including K-12 education, in conserving resources such as water and power is another effective approach. By combining demand management and storage, infrastructure providers can greatly reduce their capital investment requirements, which help make service delivery more cost-effective.

189 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Cascading

Resource “cascading” enables fitting the quality of a resource to the needs of users. In typical water systems, water of one quality is used for many different uses. This is inefficient, as high- quality water fit for drinking is not needed for washing buses or watering parks. For example, gray water can be re-used for toilet flushing, and wastewater can be treated and used to water gardens and parks. Cascading can be applied in industrial production too. One plant (making steel, for example) requires higher forms of energy for its production processes. A by-product of the process is a lower form of energy, which can be passed through steam, water or other media to the neighboring factory suitable for its needs (heating water for textile processing, for instance). The neighbor extracts the heat or energy it needs, and transfers the balance to yet another user with even lower energy requirements. The energy for all three plants only has to be generated once, thereby reducing overall energy consumption of the zone.

A variant on cascading is “looping,” in which resources cycle passed back and forth among different users. The heat by-product form industrial production process, for example, can be used to heat water, which flows to neighboring residences and through some form of radiator. The cool water flows back to the factory for re-heating, and the cycle repeats itself.

Master-plan infrastructure systems

Preparation of pan-city master plans for specific infrastructure systems (e.g., Water Supply Master Plan, Stormwater Master Plan, Transportation Master Plan) is a good way to promote coherence in infrastructure system development. Visakhapatnam does not currently have up-to- date master plans in effect for the major infrastructure systems in the urbanized area. It is advisable to prepare such master plans and put them into effect formally. This does not preclude shorter-term action planning and implementation of programs and capital projects in the meantime.

Make use of distributed infrastructure systems

In the preparation of master plans, Visakhapatnam infrastructure providersshould consider using “distributed infrastructure systems” to reduce carbon footprints and strengthen resilience. Moving water, heat, power, etc. long distances along distribution pipes always causes losses. Rather than having large systems where end users are far from the source, it is possible to size systems to a move local scale and capture the associated efficiency gains. Multiple wastewater treatment plans (especially operating in separate mini-basins in the city, with gravity flow) is one example. Separate small systems can be connected at key points to ensure services in the case of breakdown, which increases resilience. Studies show that distributed energy systems can boost efficiency by 55 to 80%.

Improve north–south ground connectivity

Visakhapatnam is growing along the coast. The development north of Kailasgiri will continue in the coming years, as the IT City expands, tourism areas at Rushikonda and Bheemili are developed, and the airport city is constructed. Connecting these existing and emerging sub-

190 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

centers is important for the efficient functioning of the metropolitan region. Visakhapatnam should increase north-south ground connectivity through a mass transit system and road improvements. Bus Rapid Transit should be considered. Light rail may also make sense. The great distance of the airport from the city center requires that the north-south connection be relatively rapid. The economic viability of the airport city will depend in part on the quality of this ground connection. On the other hand, the connection will also be necessary for the airport to have the intended impact on the development of the knowledge industry and of tourism.

Use climate data in planning communities and infrastructure

UNDP and other agencies have done good work in recent years mapping hazards, including future flooding and heat patterns as impacted by climate change. These climate data need to be systematically taken into account in planning infrastructure systems (see infrastructure master plans above) and local communities. A common data platform accessible by all major players in water, energy, land and real estate must be created and populated with existing climate change data. Additional periodic data collection and/or modeling will also be required. This approach will serve to manage the risks of natural hazards and climate change, which will make Vizag more resilient over the long run.

Use consistent and robust methods for identification of smart infrastructure projects

The methods are set out in the Task 4 reports on guidelines for smart infrastructure project identification, preparation and implementation (see Task 4 report).

Develop a network of specialized ports in VUDA area

In addition to the two existing ports (Visakhapatnam port and Gangavaram port), the possibility of developing one or two more ports should be examined in order to (1) facilitate industrial and logistics activity in multiple centers throughout the approximately 5500 square kilometer VUDA planning area, and (2) assign different functions to different ports based on their location and the carrying capacity of the immediate surrounding area. In the long run, moving bulk port operations out of the city center would allow Visakhapatnam port to be redeveloped either to increase container traffic or to transfer some of the land to urban uses. Both of these changes would decrease pollution from coal shipment in the city center. In the case of revitalization of the CBD, associated growth of financial services and/or redevelopment of Old Town, increasing land values may justify the conversion of some of the existing coal beds into urban uses such as commercial mixed use.

Operational Strategies

Track flows to improve understanding of system performance

One of the most fundamental concepts of smart city is collecting and digesting data on the performance of infrastructure systems. Vizag has a lot of room for improvement in this area. As a first step towards making smarter decisions, Visakhapatnam’s infrastructure operators should collect information about where the flows (of power, water, stormwater, etc.) are within their

191 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

system. This can be done by installing technology such as bulk metering, SCADA and smart metering, for example, as well as with direct physical observation by staff and customers. A continual comparison of actual flows to anticipated demand will facilitate system evaluation and adjustments to improve performance.

Manage demand to reduce system expansion needs

This is a corollary strategy to “Use demand management and storage to shave peak loads” above. Reducing consumption is not only good for the environment; it also helps reduce funding requirements associated with system expansion. None of Vizag’s infrastructure systems (with the exception of electrical power) has the capacity to meet regional demand. To bring supply in line with demand, infrastructure providers can either increase supply (through system expansion or efficiency improvements) or reduce demand. In fact, some combination will be required. But reducing demand is generally cheaper and easier than increasing supply, and should be pursued on a priority basis. The menu of tools that can be used to manage demand — including but not limited to metering, pricing services at cost, public education, customer involvement in system planning, etc. — is well-known and very applicable to the situation in Vizag.

Mix technologies and approaches in order to maximize public outreach

Many smart city interventions are web-based, which tends to exclude from participation those local residents that do not have web access. The household survey carried out by AECOM under this assignment shed light on the degree of penetration of smart phones and personal computers among Vizagites (see Task 2 report). To make smart city inclusive, Vizag will need other methods to reach the people that are off-line. This can include installing kiosks or LED displays in public places such as railway stations and bus stops. For example, in addition to introducing a “next bus” application, the information on the arrival of the next bus can be posted on bus stops. City-wide Wi-Fi systems and broadband service can also boost web access over the medium term. Other ways of reaching the public should be devised during the planning phase of individual smart infrastructure projects. This is a critical factor for the equity and therefore long- term success of the Smart City Mission.

Treat utility users as valued customers

International best practices in utility management consistently highlight the importance of customer relations. The conventional wisdom today is to improve transparency about service levels, planning and pricing through online portals and other information dissemination techniques; involve customers in planning and pricing decisions; in the process secure their buy- in in advance for tariff increases. It is generally advisable to make improvements first, then raise prices.

Promote digital democracy through the use of digital open platforms for public services

Consistent with the spirit of the national Smart City Mission, Vizag should create digital open platforms that a maximum number of citizens can access in order to learn about and participate in urban service delivery. The platforms should be established and owned by the District and

192 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

GVMC and/or other ULBs, even if the actual delivery, operation and maintenance functions are carried out by private firms under contract to government. Citizens should be able to go online (through a phone, PC or kiosk) in order to:

• get information about service coverage, quality and price • sign up for services • report problems with existing services and/or request maintenance or repair • get information about any ongoing or planned service interruptions • learn about any service extensions or improvements that are in the planning phase • participate in decisions about service improvements and service pricing

Economic development strategies

Increase passenger and freight air connectivity

Many of the key economic sectors identified by GVMC are dependent on greater air connectivity. Ease of travel to and from Vizag is critical for the development of the knowledge industry, tourism and the logistics business. The planned airport at Bhogapuram and the adjacent airport city are critical investments for the implementation of Vizag’s development vision.

Enhance educational system to boost growth and spread opportunity across income spectrum

Education is a key to many aspects of Vizag’s development vision. From an equity perspective, improving K-12 education is critical for the future ability of local low- and middle-income children to take advantage of future economic opportunities. With the right training in SCET in high school and post-secondary institutions, local children will have a better chance of landing a job in the knowledge industry. Those that cannot reach that high can still participate in logistics, manufacturing, or other services. Skills development will be critical to many of these jobs, even “blue-collar” (working class) jobs.

At the same time, Vizag’s future economic success is also contingent on the ability of universities and institutes to combine “technical” education in the relevant subject areas (such as biology for pharma, software coding for IT, etc.) and in entrepreneurship. IT firms and other knowledge industry companies report that while the level of technical training in Visakhapatnam is sufficient, the level of entrepreneurship is low. Vizag must cultivate a culture of start-ups. This can begin at school. Partnerships with international universities with strong track records in entrepreneurship should be formed.

Reduce upwards market pressure housing prices by delivering more housing solutions

IT and other knowledge industry companies observed during Phase I that the cost of living in Vizag is substantially lower than other competing cities (Bangalore, Hyderabad) and that this is a key selling point when attracting qualified labor. The lower cost of housing is the biggest determinant of the lower cost of living. As Vizag grows and becomes more successful, the cost of housing is likely to rise. Keeping those price rises within a reasonable range will be critical to

193 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

preserving Vizag’s cost advantage. The main way to keep the prices from rising sharply is to increase housing supply in line with demand. This requires a comprehensive approach to housing that is not limited to construction of new units. A broader range of housing solutions should be offered, including serviced land plots, “core” housing (wet core plus one room that can be expanded upon later), and pre-built apartments and single-family houses. Government’s role is to enable to production of these different housing solutions by a broad range of housing and land developers, most of which will be private firms.

194 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Task 4. Sector-Specific Strategies

195 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector-Specific Smart City Infrastructure Plans for Visakhapatnam

Guidelines for Developing “Smart” Infrastructure:

Energy Sector

August 09, 2016

196 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents

Acronyms and abbreviations …………………………………………………………….....198

Introduction……………….. …………………………………………………………….....199

Objectives of the guidelines ………………………………………………………………..202

Energy sector overview……………………………………………………………………..204

Smart project definition………………………………………………………………...…..208

Smart project identification…………………………………………………………………216

Smart project preparation…………………………………………………………………...221

Smart project procurement……………………………………………………………….....228

197 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

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 Vizag Visakhapatnam VUDA Visakhapatnam (Vizag) Urban Development Authority

198 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Introduction

As the population of greater Visakhapatnam, also known as Vizag, continues to grow in the coming years, increasing pressure will be placed on the urban and social infrastructure that supports residents and visitors. In response, the Government of Andhra Pradesh, the Greater Visakhapatnam Municipal Corporation (GVMC), and Visakhapatnam Urban Development Authority (VUDA) collaborated to develop a guiding vision for the economic transition needed to support anticipated regional growth, and to identify efficient and effective methods for serving existing and planned communities.

The vision for a smarter greater Vizag

Building upon the existing diverse economic base and inherent livable amenities and lifestyle, the vision was set for greater Vizag to become South and Southeast Asia’s Clean Commerce Capital by 2030. This goal aims to protect and enhance quality of life for residents and businesses alike by pursuing two fundamental objectives:

Green Living • Preserve and celebrate the unspoiled environment • Promote a healthy lifestyle • Provide access to amenities • Promote clean air and clean water Smart Business • Maintain and expand ease of doing business • Facilitate and require clean manufacturing • Plan and deploy intelligent infrastructure • Facilitate and require socially responsible businesses practices Achieving the vision will require a “Smart City” approach to regional development and infrastructure planning and delivery. The intent of the Smart City management framework and projects will be to accelerate provision of basic services, employ creative approaches to cost- effective service delivery, and set in motion a virtuous circle of infrastructure investment, high- quality urban environment initiatives, workforce attraction and retention, increased local government revenue, and additional infrastructure investments.

The intent is for Smart City projects to be deployed throughout the region to catalyze sustainable, cyclical progress toward regional goals by promoting: • Higher customer satisfaction and citizen buy-in • More responsive service delivery and smaller carbon footprint • Conservation and enhancement of natural and social resources • Lower marginal costs for improved services

199 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Lower overall infrastructure development and operations costs for improved services • Closure of infrastructure gaps in the most intelligent way possible Guiding principles and approaches

When approaching the planning process and early project identification, the following people- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements: • Understand behavior patterns in order to address peak-use challenges • Acknowledge and leverage connections between infrastructure of different types • Enable feedback loops between infrastructure systems, utilities, and customers • Bring people to services while at the same time bringing services to people • Track progress toward success with specific benchmarks and targets When approaching the planning process and early project identification, the following system- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements: • Get the most out of existing infrastructure systems and investments • Acknowledge and leverage connections between infrastructure of different types • Develop and use more storage strategies to ease peak-use constraints • Prioritize retrofit over redevelopment and greenfield expansion • Leapfrog over unresponsive technologies to select more efficient information and communications technology (ICT)-enabled delivery methods • Cultivate resilient, networked systems to build capacity and reduce vulnerability Smart City project development and procurement scenarios are another critical component to achieving the vision within fiscal and time constraints. “Smart” procurement approaches involve the following strategies: • Attract global interest and competition • Form mutually beneficial partnerships that accelerate implementation of capital projects • Allow appropriate sharing of project risks and contingent liabilities • Support better control of project costs, schedules, and performance • Support innovative project life-cycle strategies for efficient planning, implementation, operation, and maintenance of infrastructure assets • Optimize use of infrastructure assets • Develop creative partnerships that leverage private capital and expertise • Establish implementation entities that can attract, combine, and utilize multiple funding sources • Support stronger contract enforcement mechanisms

200 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Create systems to increase access to, and penetration of, state and federal funding programs Smart City solutions to infrastructure challenges are by nature more complex than traditional approaches. These guidelines are intended to better equip decision makers to manage that complexity and use it to their advantage in accelerating improved quality of life for businesses, residents, and visitors.

201 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Objectives of the guidelines This report is intended to provide guidance for the identification, development, and implementation of energy services. The report outlines the typical processes involved in the project development lifecycle for both solicited and unsolicited projects across the energy sector in Greater Vizag. The guidelines recognize that each project is unique; certain elements set forth in this report may not apply in all circumstances and may be subject to change as deemed appropriate. Furthermore, the guidelines are intended to serve as a general template for implementing smart projects and are not meant to be limiting. The Special Purpose Vehicle (SPV) or the public entity responsible for the Smart City projects has the flexibility to amend provisions in these guidelines on a case-by-case basis, so long as the resulting provisions comply with guideline objectives, which are to: • Guide and inform analyses and other work to be performed for the planning and implementation of Smart City projects; and • Guide and inform the planning, deliberation, and decision-making process of GVMC, the Grantee, and other key stakeholders in identifying, assessing, implementing, and executing Smart City initiatives and projects to the extent applicable to the energy sector. Ultimately, the purpose of the guidelines is to assist in prioritizing and delivering projects that can: • Increase stakeholders’ access to information about critical infrastructure; • Increase the efficiency of service delivery; • Engage the local population; and • Enhance the economic competitiveness of the city. The guidelines are organized as follows: • Energy sector overview • Smart project definition • Smart project identification • Smart project preparation • Smart project procurement

202 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The following diagram illustrates key steps in the process of choosing, prioritizing, developing and procuring smart projects.

203 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Energy sector overview Too often the energy sector is thought of as a segregated infrastructure that serves customers independently of other urban systems. In reality, all urban systems are energy systems of one kind or another and, either directly or indirectly, affect the conversion of primary energy sources. As an example, transportation system improvements that enable and encourage pedestrian and bicycle trips can reduce vehicle miles traveled and avoid the associated conversion of fossil fuels. Similarly, in Vizag, as in many other cities, the largest single consumer of electricity is the water system. Sourcing, treating, distributing, capturing, and again treating water has a dramatic impact on electricity use. Energy conversions are implied in all infrastructure services and behavior patterns, and as such, all systems should be considered when attempting to meet energy system goals. Smart City solutions to infrastructure challenges use these energy interdependencies to get the most out of any system and look for creative ways to harness available energy or offset increased system loads by managing behavior-based demand. While all systems involve conversions of energy, the electricity system is the focus of these guidelines, as it plays a particularly important role in supporting quality of life for residents, as well as industry, and the capacity, resilience, cost, and environmental profile of this system will be even more critical as the region grows. As energy prices fluctuate, as finite fossil fuels are used, and as the energy system’s impact on climate change comes into focus, the effective management of the electricity system becomes paramount to mitigating risks. Smart electricity management can address these issues by using sensors, advanced meters, renewable energy sources, digital controls, and analytic tools to automate, monitor, and optimize energy distribution and use. These systems optimize grid operation and usage by balancing the needs of the different stakeholders involved: consumers, producers, and providers. The utilities involved in improvement and power supply availability are: • Andhra Pradesh Power Generation Company (APGENCO) • Andhra Pradesh Eastern Power Distribution Company Ltd. (APEPDCL) • New & Renewable Energy Development Corporation of Andhra Pradesh Limited (NREDCAP) Power in Vizag is supplied through a network of overhead voltage lines in a range of sizes, including 400 kilovolt (kV), 220 kV, 132 kV, 33 kV, and 11 kV. The expected demand for electricity in Vizag by 2020 is approximately 100 megawatts (MW). According to APEPDCL, the present maximum demand is around 70 MW, the existing substations and feeders are 50% loaded, which creates a buffer of 50% for an increased demand over 7 to 10% annually. To meet this annual increase, APEPDCL plans to provide six new substations every 5 years. The following recent initiatives have been taken to enhance the system:

Cable laying The supply in Vishakhapatnam is planned mainly through overhead lines, but existing 11 kV overhead lines are proposed to be relocated underground along the coast. The laying of these underground cables is planned in two phases. In Phase I, 11 kV underground cables will be laid for five substations. In Phase II, 11 kV underground cables will be laid for fifteen substations.

204 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Several 132 kV underground cables are planned between 220 kV Dairy Farm Substation and 132 kV Peda Waltair Substation along a stretch of 7.2 kilometers.

Gas-insulated substation In urban areas, because land is prime and costly, gas-insulated substations are often economical solutions. A 132/33 kV gas-insulated substation is currently under construction at Peda Waltair.

Ring arrangement of feeders The 11 kV feeders mentioned above are planned through Ring Main Units (RMUs) for redundancy and continuity of supply. While current generation exceeds demand, the region is growing, and with the expected increase in demand for industrial uses, air conditioning, and electrified systems in general, increased generation must be considered now. In addition, the current system is dependent on thermal conversion of coal and subject to price volatility and high greenhouse gas (GHG) emissions. The long-term affordability and livability of the system must be considered when planning for growth. The central government has begun to incentivize photovoltaic (PV) solar energy as a renewable alternative to fossil fuel conversion. The incentives provided by government for PV solar installations include: • Accelerated depreciation: For profit-making enterprises that install a solar system, 40% of the total investment can be claimed as depreciation in the first year. • Capital subsidies: Capital subsidies are applicable to roof-top solar plants up to 500 kW. While the original capital subsidy was 30%, it may vary up to 50%, depending on solar plant capacity and location. • Renewable energy certificates: These are tradeable certificates that provide financial incentives to those generating green power for every unit of power they generate. • Assured power purchase agreement: State- and central government-owned companies that distribute power guarantee the purchase of solar power when produced. The buy- back price in Vizag is about 5.40 rupees per unit. Hence, it allows consumers to earn from green energy. Summarized system goals Based upon our interviews with infrastructure managers and stakeholders, as well as building upon work completed in Tasks 1, 2 and 3, enhancements to the electricity generation, transmission, and distribution system will meet the following goals:

Uninterrupted power supply Vishakhapatnam witnesses power outages resulting from salt deposits on line conductors, equipment etc. These may be overcome by having redundant power sources, i.e., redundant feeders and alternate power sources.

Quality of supply Reducing voltage fluctuations can help attract businesses and better support residents.

205 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Minimization of transmission and distribution losses Vishakhapatnam has about 8% losses in transmission and distribution. This loss may be due to energy dissipated in the conductors and equipment used for transmission, transformation, sub- transmission and distribution of power, unauthorized extensions of loads, errors in meter reading, errors in estimating unmetered energy supply, and improper meter calibration. These losses can be mitigated by upgrading transmission and distribution systems, reducing losses and theft, and allowing redistribution of loads.

Quick fault detection and fast mitigation time Use of smart meters linked by a Supervisory Control and Data Acquisition (SCADA) system will improve the operation of the distribution system.

Diversify energy sources Using a variety of fuels and primary conversions will support a more reliable, resilient, and affordable system.

Incorporate distributed renewable generation and energy storage Increasing penetration of renewable energy generation and storage will improve environmental outcomes and reduce the need for costly peak generation facilities.

Increase use of grid-tied solar micro-grids Grid-tied solar systems are designed to run in parallel with the utility grid. Grid-tied solar systems allow a home to use power from the utility grid as it normally would while also using the power from the solar array. If the solar array produces more power than the home can use, the grid-tied system pushes power back onto the grid, banking the energy for the consumer to use later, and thereby providing sustainable energy.

Implement Smart Grid technology Smart Grids are integrated closely with SCADA, metering, and automation to manage electricity flow and reduce peak pressure on the system.

Mitigate peak demand System peak demands drive the capital invested in generation and increase the sizing and costs of substation systems. More people could be served throughout the day by less infrastructure through financial incentives and demand-side behavioral management change to influence when customers use energy.

Reduction of greenhouse gas emissions The energy sector contributes significant carbon and other GHG emissions. Cleaner energy systems are needed to meet global GHG reduction targets.

206 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Improved system resilience Wind and water damage can shut down electrical systems if systems are not redundant or specifically designed to avoid down time. Similarly, critical facilities will need backup power systems to serve the public following disaster events.

Identified service delivery challenges

The following challenges hindering improved service delivery were identified during stakeholder meetings during previous planning efforts and discussions with utility companies:

• Lack of available skilled manpower for maintenance

• Slow implementation of net metering initiatives • Lack of dedicated utility corridors • Lack of public access to data • Renewable energy alternatives are not integrated within the system • Lack of redundancy of power supply • Lack of looped substation rings • Quality of power provided varies • Dependency on thermal coal conversion • Slow replacement time following equipment failure While the procedures outlined in this document are specifically developed to deliver Smart City projects, some of the procedures are also appropriate for procuring basic infrastructure improvement projects. This report focuses on the procurement of large Smart City projects across the sector rather than any of the related technical and operational activities.

207 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project definition

Smart project ideas can come from multiple sources and decision makers at the Municipal, District, Region, State and Central government levels and must be able to define and differentiate “Smart” projects from traditional infrastructure approaches in order to optimize delivery. The key characteristics that separate the two approaches are as follows:

Traditional infrastructure approach: First assess peak demand and then build new distinct basic service infrastructures scaled to that demand. Smart city infrastructure approach: Use data to improve decision making and maximize efficiency of both existing and proposed systems. ‘Smart Systems’ are people-centric and leverage monitored flows, managed demand, and co-benefits to accelerate delivery of basic services. Using these characteristics of Smart City projects, decision makers can define a long list of solicited and unsolicited smart projects that can be prioritized for implementation in the Project Identification phase and developed in greater detail in Project Preparation. The following section discusses potential components of smart projects, possibilities for integrating ICT overlays to basic infrastructure systems and examples of relevant projects.

First and foremost, smart projects will enable and promote the values identified in the Smart City Vision for Greater Vizag.

Opportunities for strategic sector enhancements to achieve the vision Energy system enhancement projects can best support the Green Living component of the vision through: • Reducing demand for high-emissions thermal energy conversions • Improving penetration of renewable energy generation technologies • Providing for system resilience and stable backup power • Harvesting energy from existing or proposed cross-sector infrastructures Energy system enhancement projects can best support the Smart Business component of the vision through: • Providing reliable power • Providing clean power • Enabling environmentally friendly branding • Avoiding conflicts with highest and best use of land Identified system awareness challenges

Awareness of existing policies and incentives For citizens to reap the benefits of government policies and subsidies, it is important that these policies be more publicized and citizens be made aware of the environmental and financial

208 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

advantages to be derived from these policies. For policies to be successful, there should be more transparency of information and interdepartmental coordination to help boost participation.

Awareness of energy systems Consumers generally do not understand how power is delivered to their homes. Before implementing smart energy concepts, the consumers should be made aware of what smart energy is, how it can contribute to a low carbon economy, and what benefits they as users can gain. Therefore, consumers must also be made aware of their energy consumption pattern; policy makers and regulators must be very clear about the future prospects of smart energy concepts, and the utilities need to focus on the overall capabilities of smart energy concepts.

Policy and regulation No defined standards and guidelines exist for the regulation of Smart Grid initiatives in India. The current policy and regulatory frameworks were designed to deal with the existing networks and utilities. With the move toward Smart Grids, the prevailing policy and regulatory frameworks must evolve to encourage incentives for investment. The new framework will need to match the interests of the consumers with the interests of the utilities and suppliers to ensure that the societal goals are achieved at the lowest cost to the consumers.

Identified system capacity challenges Andhra Pradesh electricity generation exceeds current demand. But as the region grows, peak demands increase, space cooling loads expand dramatically, and the future of imported and domestic coal becomes less certain, the effective capacity of the electricity system could easily become a liability. Issues affecting future system capacity include: • Lack of grid-scale energy storage enabled to offset peak demands • Lack of backup power to critical facilities to support system resilience • Lack of redundant supply lines to critical facilities to support system reliability • Lack of redundant substation connections to support system reliability • Lack of land identified for optimal renewable energy generation • Lack of alternative cooling strategies to meet growing demand Smart City projects will seek to address these challenges both directly through enhancements to the electricity grid and indirectly through synergies with other infrastructure and land use systems. Opportunities to integrate ICT systems to improve performance The emerging utility trends can be broken into three categories. The first category is a completely changed customer environment that consists of smart appliances, new loads, and more sophisticated control technologies. The second is an ever-smarter grid that can integrate distributed sources of sustainable energy. The third is the enabling regulatory and market constructs that are creating the environment for a fundamentally different set of business models than the industry has enjoyed over the last century. The icons in the following diagram are representative of these trends, broken down into ten representations.

209 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Source: IBM

New customer environments Smart appliances will become increasingly ubiquitous in consumer homes. Connected to the Internet, these appliances can be observed and controlled by consumers, as well as third parties such as utilities, and can optimize demand response and energy efficiency. Sophisticated systems such as affordable energy management systems, automated demand response appliances, and mobile smartphone applications will offer control. In many cases, consumers will simply set their preferences, and these systems will respond and learn their patterns and additional preferences.

Smart metering Smart metering automates the collection and transport of meter information, allowing utilities to extract meaningful customer usage data to understand actual resource usage. During times of stress on the electrical grid, smart meter technology can garner important data for the Intelligent Utility Network, allowing meters to be read rapidly and more frequently to improve understanding of consumer usage and make informed decisions about operations during times of high demand or shortages. The solution can also help utility companies: • Improve reliability and response time to address regulatory and market pressures • Increase workforce productivity and safety by automating tasks and limiting the amount of on-site work required • Identify and locate outages quickly to speed response times • Generate accurate load profiles for better resource planning • Motivate residents to limit resource use by implementing load controls

210 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Citizen-centric predictive analytics Utility owners can help citizens by determining how they use power companies and identifying opportunities to serve them better. The system can access structured data from sources such as metering systems, billing, and customer information systems to develop a detailed energy usage profile, including peer benchmarking and efficiency analysis, for individual residents.

New grid The grid itself will fundamentally change. With the increasing percentage of renewable energy sourced from wind and solar, a new pattern of infrastructure deployment and operations will support the unique characteristics of renewable energy. Battery technology, at the grid and consumer level, will become broadly available and affordable. In areas of the world where existing infrastructure is insufficient or the economics for investing large centralized generation and transmission is not feasible, micro-grids will emerge as a reasonable alternative.

Advanced analytics The plethora of data sources such as geographic information systems, distribution automation, PMUs, and smart meters are diverse. Big data can seem overwhelming, but in reality it is an opportunity, not a problem. Advanced analytics offers greater accuracy and greater depth, and can transform utility applications. With the ability of advanced analytics to lower cost and provide better customer service, applications that were heretofore impossible, become possible.

Asset management system These systems allow utilities to consolidate multiple work and asset management solutions into a single platform and database. This includes bringing together assets such as transmission, distribution, power generation, vehicle fleet, and facilities. They help utilities increase assets and resource effectiveness using a platform to support all types of asset classes and have the flowing advantages: • Improve productivity with better utilization of assets • Manage crew type and crew preparedness with enhanced crew management while tracking labor skills and certifications • Support smart meter or revenue meter asset management lifecycle • Integrate with fixed-asset accounting, mobile workforce management, and design tools based on service-oriented architecture

New business models The regulatory environment will increasingly permit new business opportunities and business models for both existing utilities and new entrants to emerge and thrive. This development will be tempered by a recognition and acceptance that significantly more investment is required to ensure the reliability and resiliency of the grid.

Technology advancements For many of the technologies that are currently popular, utilities were, out of necessity, early pioneers. Communication networks, advanced telemetry for reliability and control, and large-

211 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

scale customer information and billing systems are a few examples. As energy companies embrace advancing technology, the changes continue all around them. Many key technology advancements are unfolding that will affect the direction utilities will take.

Internet of Things Numerous assets and control devices are spread over their utility operating territories, and collection of data from them will be beneficial to their business. This can be managed using the Internet of Things, wherein information such as usage patterns and anomalies, device status information and events, and general status of the network would be identified and regularly used. With the advent of smart metering, the information available has become both more detailed and more easily attributed to specific customers.

Information technology and operational technology An interesting phenomenon in the utility industry is unfolding as both the information technology (IT) and operational technology (OT) networks of the industry undergo the same structural transformation from hierarchal with well-defined interactions to flat with multivariable interactions. In OT, the rapid integration of a larger percentage of renewable and distributed energy sources is replacing the traditional centralized power plant with transmission and distribution networks. Today’s IT networks are peer-to-peer and fundamentally not hierarchical. IT and OT environments are both becoming flatter, peer-to-peer, and increasingly operating in real time.

Source: IBM

Situational awareness Utilities have used the fundamental management techniques of situational awareness to operate the grid and to manage storm and catastrophe restoration processes for decades. The difference today is that situational awareness has reached popular culture. The world has a continuous feed of videos, photos, blogs, collaboration tools, and more that all provide a near instantaneous view of the local and global condition. And indeed, the status of the network, whether it relates to an

212 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

outage or its level of sustainability, is of interest to the consumer. In the future, utilities must make the support of situational awareness paramount to their customer interaction. Opportunities for cross-sectoral integration The transition to a low-carbon economy will involve major changes to the way energy is used over the coming years. There will be a complex mix of technologies generating, transmitting, distributing, and storing energy. Utility sectors will operate at a number of different scales, from clusters of buildings, to community systems, to industrial and national networks. At the same time, there will be increased demand for electricity driven by the electrification of transport systems (rail and electric vehicles) and heating and ventilation (cooling) systems, increased power consumables, changing working patterns, and changing demographics. There are complex challenges, not only for developing the individual technologies, but also for how technologies are integrated to deliver robust, flexible, and cost-effective systems. Integration of data management systems and demand response system information on traffic volume, water, sewerage, drainage, energy, and other infrastructure through SCADA will allow utilities to effectively mitigate operational difficulties through the Smart City system.

Smart and efficient utility corridor planning For infrastructure to be most useful, it is important to plan utilities effectively and in a timely manner along or under roads. Since space is of prime concern nowadays, it is recommended to plan dedicated corridors for wet and dry utilities. This will ensure smooth installation and operation of infrastructure.

Building management systems This strategy entails introducing a building automation system, which is a computer-based control system installed in the building that controls and monitors the building's mechanical and electrical equipment such as ventilation, lighting, power systems, fire systems, and security systems.

Smart metering In the area of improved customer service, smart meters are advantageous for both energy and water monitoring. Smart meters can capture consumption patterns and supply thefts, and promotes better of use of available resources. A pilot project comprising installation of smart meters (prepaid and postpaid) for 1,500 consumers is planned to be implemented. Metering will be automatically updated. Use of these meters will prove beneficial in data collection related to consumption, load flow graphs, theft, and fault detection. Sources of project ideas Candidate project ideas in the energy sector can be derived from a number of sources. Project ideas to be considered and potentially implemented can come from: • Comprehensive sector-wide assessments by generation or distribution companies • Previous capital improvement programs • Customer feedback

213 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Maintenance schedules • Response to storm damage or outage patterns • Mandates by the central or state government • Capacity/service demands of development projects • Changes in jurisdictional boundaries • Response to cross-sectoral project proposals and opportunities. • Unsolicited proposals Unsolicited proposals are an important consideration, as they are offered outside of typical project vetting and approval mechanisms. It is important to develop a framework for responding to these proposals consistently and thoroughly because their adoption will impact public relations even if there is little or no upfront public cost. The Swiss Challenge Approach23 is another way of sourcing candidate Smart City projects among unsolicited proposals24 submitted by private sector entities (i.e., developers). The SPV welcomes unsolicited proposals from private entities to develop and/or operate Smart City projects throughout the greater Vishakhapatnam region. Private sector developers may submit unsolicited proposals across the water supply and sanitation value chain. All unsolicited proposals must be submitted to the GVMC or relevant Urban Local Body (ULB) for review and consideration by the SPV. Private sector entities submitting an unsolicited proposal are required to pay a non- refundable, non-negotiable proposal review fee at the time of submitting the unsolicited proposal. The fee will partially offset the cost of processing, reviewing, and evaluating the unsolicited proposal. Example relevant Smart City projects The following list of Smart energy projects is intended to illustrate the kinds of projects that the Visakhapatnam Metropolitan Region can consider when attempting to identify ways to improve system efficiency and the ability of operators to monitor system flows. Discretion is required

23 The "Swiss Challenge Approach” is when a Private Sector Participant (Original Project Proponent) submits an Unsolicited or Suo-Motu proposal and draft contract principles for undertaking a project, not already initiated by the government agency or local authority. The government agency or local authority then invites competitive counter proposals in such a manner as may be prescribed by the government. The proposal and contract principles of the Original Project Proponent would be made available to any interested applicants; however, proprietary information contained in the original proposal shall remain confidential and will not be disclosed. The applicants then will have an opportunity to better the Original Project Proponent's proposal. If the government finds one of the competing counter proposals more attractive, then the Original Project Proponent will be given the opportunity to match the competing counter proposal and win the project. If the Original Project Proponent is not able to match the more attractive and competing counter proposal, the project is awarded to the Private Sector Participant, submitting the more attractive competing counter proposal. 24 Per the Andhra Pradesh Infrastructure Development Enabling Act, 2001, an “Unsolicited or Suo-Motu Proposal” is a proposal in respect of a project not already initiated by the government or government agency or local authority and which proposal is submitted by any Private Sector Participant to the government agency or local authority in respect of any infrastructure in the state supported by project specifications, technical, commercial and financial viability and prima facie evidence of the financial and technical ability of such Private Sector Participant to undertake such project with full details of composition of the Private Sector Participant and his financial and business background.

214 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

when using the following list, as these representative projects will be applicable and appropriate in some situations but not others. • Smart micro-grids for underserved communities or critical facilities • District cooling strategies • Marine thermal heat exchange • Energy harvesting systems • Energy storage systems • Demand-side management techniques • SCADA monitoring and remote control • Supply redundancy (implementation of dual-feed underground cabling system) • Implementation of renewable energy generation (PV solar, solar thermal, wind, ground source cooling, etc.) • Underground cabling • Energy-efficient transformers • Storm hardening the substations, switchgear rooms, and control rooms • Smart meters

215 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Sources of recommended projects to consider The selection of projects will be based on needs identified from field data as part of planned development and from user input. The following is an indicative list of potential smart project proposals. • Comprehensive sector-wide assessment: Energy needs identified from area-wide issues would be the basis of projects. • Previous capital improvement programs: Existing projects already identified in approved capital programs that meet the Smart City guidelines, but have not been implemented, would be considered. Innovative ways of implementing the project would be an important element for determining applicability for the program. • Customer/public feedback: Concerns from roadway and bus riders, as well as comments or issues raised by the general public, would frame problems or deficiencies that could be resolved by a Smart City project. For example, public or bus passenger identification of insufficient service or extended delays or safety issues on existing routes. • Maintenance schedules: Projects can also be developed based on maintenance requirements, either for existing infrastructure rehabilitation/reconstruction, or the need for replacement/upgrading of existing transit facilities such as maintenance garages or bus shelters. • Mandate assessments by central/state government: New mandates similar to accessibility for handicapped individuals, or new design standards that need to be implemented, such as roadway impact attenuators or an emergency roadside phone system, could be another consideration for Smart City projects. • Capacity/service demands of redevelopment: The growth of the population as forecasted by new business openings and businesses relocating to the area, increased tourism, and new residential development would create more of a demand on roadway capacity and services in public transit. The higher demand for services can require quantum jumps in highway capacity needs. • Changes in jurisdictional boundary: Such changes as rezoning of land area in response to growth in business, tourism, population, and jobs will create new demands for new roadways and new or improved transit facilities to meet the new demands. • Response to cross-sectoral project proposals: Project initiatives by other sectors such as Water/Wastewater and Stormwater will be considered favorable. Implementation of new sanitary/stormwater systems under the roadways will require reconstruction of the roadway and present opportunities, or the requirement, to install improved traffic controls

216 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

and roadway geometry. Development of a new airport will require new roadways and rapid transit that needs coordination and connection with GVMC roadway and transit. • Sector-wide assessment: The sector-wide assessment can be used to gain the maximum benefit from advancing multiple related projects within an area in concert. An example of this assessment is when improvements to a roadway are planned, such as a resurfacing project, checking whether other projects, such as new traffic signal installation and improvement to the stormwater drainage system, are also scheduled. The sector-wide assessment is recommended for two main reasons: 1. It is advisable to identify and prepare smarter energy infrastructure projects in the context of a master plan; and 2. System-wide assessment is the first task of master plan preparation. 3. Unsolicited proposals: As a result of the various needs and opportunities from all of the considerations above, unsolicited proposals from the private sector can possibly innovate financing opportunities and generate revenue with no direct expenditure to the 25 government. The Swiss Challenge Approach is another way of selecting candidate 26 Smart City projects from unsolicited proposals submitted by private sector entities (including developers). Once the long list of candidate smart projects is compiled, the proposals can be screened for priority based upon selection criteria. Criteria for screening/evaluating candidate smart city projects The criteria are designed to assist relevant Urban Local Bodies (ULBs) and public entities in determining the suitability of delivering infrastructure projects as Smart City projects. The purpose of the screening criteria is (a) to determine whether a given proposed infrastructure project responds to and is consistent with Visakhapatnam’s overarching approach to smart infrastructure delivery and smart urban management; and (b) to determine a proposed project’s initial feasibility and the desirability of its implementation.

25 "Swiss Challenge Approach” is when a private sector participant (original project proponent) submits an unsolicited or, suo-motu, proposal and draft contract principles for undertaking a project not already initiated by the government agency or local authority. The government agency or local authority then invites competitive counter proposals in such manner as may be prescribed by the government. The proposal and contract principles of the original project proponent would be made available to any interested applicants; however, proprietary information contained in the original proposal must remain confidential and will not be disclosed. The applicants then have an opportunity to better the original project proponent's proposal. If the government finds one of the competing counter proposals more attractive, then the original project proponent will be given the opportunity to match the competing counter proposal and win the project. In case the original project proponent is not able to match the more attractive and competing counter proposal, the project is awarded to the private sector participant submitting the more attractive competing counter proposal. 26 Per the Andhra Pradesh Infrastructure Development Enabling Act, 2001, the “Unsolicited or Suo-Motu Proposal” means a proposal in respect of a project not already initiated by the government, government agency, or local authority, and which proposal is submitted by any private sector participant to the government agency or local authority in respect of any infrastructure in the state supported by project specifications, technical, commercial and financial viability, and prima facie evidence of the financial and technical ability of such private sector participant to undertake such project with full details of composition of the private sector participant and his financial and business background.

217 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The screening method is also a means of systematically and consistently applying evaluation criteria to prioritize projects. These evaluation criteria can also be applied to unsolicited proposals to be considered. However, unsolicited proposals have additional administrative requirements to ensure they adhere to the Smart City process, goals, and objectives. The screening criteria for smart infrastructure projects include (1) specific criteria designed for smart infrastructure projects and (2) general infrastructure project criteria. The table below summarizes criteria used to prioritize candidate Smart City projects.

“ Smart City” infrastructure project screening criteria Alignment with • Does the project contribute to the Green Living aspiration of the vision? vision statement • Does the project respond to the preferences and priorities of future project users, including as stated in the Visakhapatnam Smart City Mission Statement and Smart City Challenge Proposal? System awareness • Does the project improve the ability to monitor the performance of systems? and efficiency • Does the project allow detection or prediction of operational problems in a more timely fashion? • Will the project generate technical, financial, economic, or other benefits for other infrastructure systems? • Does the project enable existing fixed assets to apply to more customers or deliver higher value services to existing customers? • Does the project enable delivery of more or higher-quality services at a lower cost or shorter timeframe? Citizen • Does the project provide customers/users with more visibility into service delivery? participation / • transparency Does the project enable customers/users to know more quickly/easily location and cost of services? • Does the project enable customers/users to observe/participate in decision-making in service delivery changes? • Does the project support appropriate institutional and financial data transparency? • Will customers/users without Internet access benefit from additional project transparency? Resilience • Does the project support disaster management resilience? • Does the project support existing service delivery and ensure that the current capacity is adequately redundant where appropriate? • Does the project support climate change adaptation and mitigation? • Does the project include the capability to notify the public in the event of change or disruption in services and suggest alternatives for the public to choose from?

General infrastructure project screening criteria

Alignment with • Is the project consistent with sector and urban policies at national and state levels? policies Is the project consistent with purposes and needs of GVMC and VUDA?

218 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Economic costs and • Do the anticipated economic benefits outweigh the anticipated costs? benefits • Will the project strengthen Vizag’s economic competitiveness in key growth sectors? Social costs and • Do the anticipated social benefits of the project outweigh the anticipated social benefits cost? • Can mitigation measures be identified for any major negative social impacts? • Does the project respond to the preferences and priorities of future users? • Does the project protect and benefit the vulnerable communities? Environmental • Do the anticipated environmental benefits of the project outweigh the anticipated costs and benefits environmental cost? • Can mitigation measures be identified for any major negative environmental impacts? Cash flow • Is the project anticipated to generate positive cash flow in development costs, operation, and maintenance? • If the project does not generate positive cash flow, is there an identifiable source to fill the financing gap and if so, are public funds required? • What amount of public funds, if applicable, is required to fill the financing gap of the project, and does this ensure that the project is affordable? • Will the project be able to support itself without user fees or subsidies? • Can funding sources and financing be reasonably expected to be obtained? Feasibility • Is the proposed technical solution feasible and sound? • Does the implementing agency have the technical and managerial capacity to develop the project? • Does the implementing agency have the institutional capacity to operate and maintain the project?

Additional screening considerations for unsolicited proposals Per the Andhra Pradesh Infrastructure Development Enabling Act of 2001, unsolicited proposals for projects must also meet the following criteria: • Will the government or any government agency be required to provide asset support? • Are financial incentives in the form of contingent liabilities or direct financial support required to be provided? • Are exclusive rights conferred on the developer/private sector participant? • Are extensive linkages (i.e., support facilities such as power connection, road connection, etc.) needed for the project? Each community or public entity can use the answers to these screening questions to qualitatively prioritize the candidate project list based upon their unique preferences, and citizen needs. The criteria can also be used to hone a project proposal to improve its future ranking.

219 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Once the shortlist of projects for implementation has been identified, those projects each move forward on independent project preparation paths.

220 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project preparation

Project preparation activities generally include detailed feasibility study and or design activities that sharpen the project definition and understanding of project cost. Many entities may implement smart projects. State level agencies and municipalities will have their own standardized processes for preparing and procuring projects. In the case of GVMC, a Special Purpose Vehicle (SPV) has been developed to assist in delivering smart infrastructure. These guidelines focus on the activities of the SPV.

Role of the Special Purpose Vehicle An SPV was created to plan, appraise, approve, release funds, implement, manage, operate, monitor, and evaluate the Smart City development projects. As such, the SPV will be responsible for procuring and delivering the Smart City projects that provide value for the greater Vishakhapatnam area and will adopt and observe in accordance with the guidelines set forth in this report. The SPV will be a limited company incorporated under the Companies Act of 2013 at the city level. By default, the state government and the ULB will be the promoters of the SPV having 50/50 equity shareholding. The private sector or financial institutions could take equity stake in the SPV provided that: 1. The shareholding pattern of 50/50 of the State Government and the ULB is maintained at all times; and 2. The state government and the ULB together have majority shareholding and control of the SPV. The SPV’s board will be composed of a Chief Executive Officer (CEO) and Functional Directors, as well as representatives of the central government who will be appointed by VUDA, representatives of the state government, representatives of the ULB, and Independent Directors. Procurement will be managed by the Office of Chief Engineer with the support of five Superintendent Engineers. The SPV will be independent and autonomous in its operation and decision-making. The Smart City Mission encourages the state government and the ULB to adopt the following best practices to create an empowered SPV to the extent and as provided under the municipal act: • Delegating the rights and obligations of the municipal council with respect to the Smart City project to the SPV. • Delegating the decision-making powers of the ULB under the municipal act/government rules to the CEO of the SPV. • Delegating the approval or decision-making powers of VUDA/Local Self Government Department/Municipal Administration Department to the Board of Directors of the SPV in which the state and ULB are represented. • Delegating matters that require the approval of the state government to the state-level High Powered Steering Committee (HPSC) for Smart Cities. The SPV may retain individuals or firms to provide consulting services to assist the SPV as it deems appropriate in connection with the Smart City projects. Technical, legal, and financial consultants under contract with the SPV can provide the additional resources and

221 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

expertise necessary to help efficiently and effectively develop and implement the Smart City projects. The SPV will advance a Smart City project to the development phase after conducting an assessment to evaluate candidate Smart City projects that have successfully passed the screening criteria. This assessment will consider factors like financial and economic benefits, available funding and financing options, sustainability criteria related to city-specific sustainability needs, project and program interdependencies, locational and non-metric factors, budgetary and funding constraints, capacity constraints, and other key practicalities. A project manager will be appointed for each project to be responsible for preparing the project for procurement and maintaining appropriate coordination with the GVMC and other relevant ULBs and public entities. The Project Preparation phase will be tailored to each project’s needs. The SPV will continue to consider whether a project is suitable for alternative delivery as a Smart City project by evaluating project scope, market sounding, commercial structure, payment mechanisms, and Value for Money (VfM). Other important milestones in the Project Preparation phase include developing preliminary feasibility and economic impact studies, conducting public hearings related to the studies, submitting studies for review, and securing approval. The SPV welcomes unsolicited proposals from private entities to develop and/or operate Smart City projects throughout the greater Vishakhapatnam region. Private sector developers may submit unsolicited proposals across the value chain. All Unsolicited Proposals shall be submitted to the GVMC or relevant Urban Local Bodies (ULB) for review and consideration by the SPV. Private sector entities submitting an unsolicited proposal are required to pay a non- refundable, non-negotiable proposal review fee at the time of submitting the unsolicited proposal. The fee will partially offset the cost of processing, reviewing, and evaluating the unsolicited proposal. The table below summarizes the considerations that may be examined for a candidate Smart City project to assist in determining the optimal project development and delivery approach.

Criteria Considerations

Project Size and • Is the project large enough to be delivered through an alternative approach by the SPV? Complexity • Does the project offer sufficient complexity to leverage private sector innovation and expertise?

Marketability • Are existing service providers capable of delivering these services? • Is the investment community interested in these types of projects? • Are there unacceptable project risks proposed to be transferred to a potential private partner?

Legislative • Are legislative amendments necessary (for use of public funds, payment mechanism, considerations delivery model, etc.)? • Does new legislation need to be introduced?

Project • Would an alternative delivery model as a Smart City project foster efficiencies over the efficiencies project life cycle costs?

222 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Criteria Considerations • Is there an opportunity to create economies of scale?

Ability to raise • Would doing the project as a Smart City project that includes private financing help capital leverage existing sources of funds or free up funds for other priority energy projects?

Project preparation process During the Project Development phase, a number of key tasks could take place to prepare the project for procurement, depending on the characteristics of the project. These include, but are not limited to: • Further define project priority, project scope, detailed engineering design, and phasing schedule • Analyze compliance with environmental and energy planning requirements • Analyze technical feasibility and operations and maintenance evaluations • Refine project cost, revenue estimates, and life cycle costing based on detailed engineering design, and operating and maintenance requirements • Prepare and submit funding and grant applications, as required • Perform additional outreach, coordinate public involvement, and build stakeholder support, including responding to concerns received from the outreach efforts • Define an approach to risk allocation and management • Determine the optimal procurement delivery method • Perform both a Value Engineering and VfM analysis Market sounding The SPV can assess market interest by performing a “market sounding” exercise. Widely used “market sounding” methods include inviting Expressions of Interest (EoIs), conducting an industry forum, and conducting one-on-one interviews. However, the SPV may choose to use additional methods to determine market interest based on the specific needs and risks of a particular project. Through an EoI, the SPV will be able to evaluate the market appetite, as well as glean possible ideas regarding the commercial structure or payment mechanism that the market would accept. EoIs may also include public briefings to further discuss elements of the project under consideration. These forums offer opportunities for public comments and private sector input. An industry forum is a conference sponsored by the SPV that allows private entities to gather, ask questions about the project, and begin to form partnerships and teaming arrangements for the bidding process. Risk allocation Before a commercial structure is selected, the SPV needs to identify all the risks associated with the project, in addition to those already identified at the detail-level screening, and allocate these

223 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

risks among the private entity, the SPV, and GVMC. Individual project characteristics drive the risk allocation strategy. Achieving optimal risk allocation is the key to achieving VfM under an alternative delivery procurement. Risks should be transferred to the party that can manage them best by undertaking effective and cost-efficient risk mitigation strategies. Typically, the public sector retains risks that are government-related, while the private sector retains commercial risks. If neither party is better situated to manage risk, the likely alternative is to share it. The figure below illustrates a possible risk-sharing strategy in a generic form:

Risk allocation

224 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

upon completion of the project. The public sponsor transfers financing risks to the private sector partner, thereby increasing the incentive for the partner to deliver the project in a timely and cost-effective manner. • Design-Build-Operate-Maintain (DBOM) In this procurement structure, a private entity, usually a consortium of companies, agrees to take on responsibility for designing, building, operating, and maintaining a project for an agreed-upon period. While the public entity retains ownership of the project and must manage the project, the private partner assumes the long-term operations and maintenance (O&M) risks of the project. In this model, the public sponsor retains financial risk and is responsible for financing both the construction of the facility as well as ongoing O&M. • Design-Build-Finance-Operate-Maintain (DBFOM)/concession In this procurement structure, a private entity, usually a consortium of companies, agrees to take responsibility for all aspects of project delivery, from planning and financing through construction, acquisition of assets, and O&M. There is a significant risk transfer to the operator over a long period of time. The payment mechanism may vary, from a fee paid by the public sponsor to tariffs paid by end users. Capital investment is borne by the private entity. • Management contract In a management contract, no new major construction or acquisition of assets is involved, and the private entity is given responsibility to manage and operate the assets in return for a fixed fee. The fee might be subject to performance incentives in the form of a bonus or penalty. The private operator has limited repair and renewal obligations. • Affermage/lease In this structure, the private entity is responsible for O&M. The operator collects the user fees directly from consumers on behalf of the public sponsor and retains a portion as payment. The difference between the user fees and the payment is paid to the public sponsor. The public sponsor retains responsibility for major rehabilitation and new capital works. The private operator usually bears more risk in affermage contracts than in management contracts. The lease structure is similar to affermage, except that the private operator pays the public sponsor a lease payment not dependent on demand and tariffs. • Joint venture In a joint venture structure, the public sponsor creates a new company to operate the asset and usually retains ownership of the company. The private entity is part owner and also enters into a management contract with the newly formed company for full control of day-to-day operations. This model has been successfully implemented in Spain, Portugal, and Latin America and transfers more risks to the private entity than in the above- mentioned O&M and management contracts. All projects are different, and one commercial structure may create value for a certain project but not another; therefore, the SPV may explore additional commercial structures other than those listed above.

225 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Illustrative structure matrix After analyzing potential alternative delivery options and the project requirements, the SPV needs to identify the structure that is most suitable to fully meet the project requirements. An example alternative delivery structure matrix based on possible criteria and requirements is presented below.

DBFOM / Management Affermage Joint CMAR DB DBF DBOM Concession Contract / Lease Venture

Minimize public contribution

Maximize operational efficiency

Minimize cost of funds

Maximize innovation

Transfer revenue risk

Transfer other risks

Minimize procurement period

Minimize contract length

Meets project goals Partially Meets project goals Does not meet project goals

226 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

under an alternative delivery model. If the use of an alternative delivery model results in a better VfM compared to a traditional project delivery method, then the alternative option delivers an optimum combination of project lifecycle costs and quality that will meet the objectives of the project. The appropriate VfM methodology will vary across modes and payment mechanisms (e.g., the analysis for privately tolled concessions will differ from that for availability payment transactions in which the SPV retains some or all revenue risk). The VfM analysis is only one factor to consider when evaluating which procurement method is optimal. The SPV may move a project forward based on other benefits, such as faster delivery or meeting established affordability limits. For example, a project may not offer clear quantitative benefit in terms of costs or revenue under an alternative delivery model; however, the alternative approach may accelerate project delivery, which benefits the SPV and GVMC by, for example, reducing congestion and stimulating economic growth. At the conclusion of all Project Development phase activities, the SPV will determine whether the project will progress to the Project Implementation phase.

227 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project procurement

Many entities may implement smart projects. State level agencies and municipalities will have their own standardized processes for preparing and procuring projects. In the case of GVMC, a Special Purpose Vehicle (SPV) has been developed to assist in delivering smart infrastructure. These guidelines focus on the activities of the SPV. Generally, there are two options for the procurement process: one-stage process and two stage process. The one-stage procurement process assumes only a Request for Proposals (RFP), whereas the two-stage approach assumes a Request for Qualifications (RFQ) before the RFP. The choice between the options usually depends on whether the universe of bidders is large, or has no or little experience, and needs to be limited through an RFQ process, or whether the technical solution and scope are clear or the value of the contract is low, in which case there’s no need for an RFQ stage. Regardless of whether the SPV uses a two-stage or one-stage procurement process, submissions received at each stage will be evaluated by the SPV against pre-determined criteria that will produce the desired outcome of the individual project. To the extent that the SPV pursues a two- stage process including a RFQ and RFP, the SPV will review Statements of Qualification (SOQs) received at the RFQ stage to determine a shortlist of bidders based on the criteria set forth in the RFQ. The SPV will issue an RFP to the shortlisted bidders, evaluate the responses to the RFP, and choose a proposer, which will be presented to the Board of Directors for approval. The figure below illustrates flow of the two types of procurement process.

illustrative flowchart for one-stage and two-stage procurement processes

228 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Request for qualifications If the SPV chooses a two-stage procurement process, it will issue an RFQ. The primary objective of the RFQ is to define a pool of qualified, potential proposers for a project. The procurement documents and process will take into account a number of factors, including the nature and status of the project, project objectives, complexity, schedule requirements, public support, estimated costs, and funding requirements. Once the SPV issues an RFQ it will issue a public notice of the RFQ. The RFQ will contain a description and status of the project and request that potential proposers submit certain information to help the SPV adequately assess the qualifications of each bidder. The information requested may include: • Experience and qualifications of the bidder • Technical competence • Past performance • Utilization of local businesses • Workforce capacity to perform • Financial capability, capacity, and approach • Approach to development Additionally, the RFQ documents will specify the evaluation criteria and relative weight given to such criteria so that respondents will know how their submissions will be evaluated. The SPV is responsible for reviewing, scoring, and ranking all responsive SOQs. Upon completion of the SOQ evaluation process, the SPV will decide which respondents should advance to the RFP stage. Although these respondents will be shortlisted, scoring of qualifications and any ranking of the SOQs will not be carried over to the evaluation of the final RFP responses. If there are no qualified respondents for a particular project, the SPV may decide to cancel the procurement or re-procure at a later date. Request for proposals A key objective of the RFP process is to create competition among shortlisted proposers to generate the best value for the city. The SPV must issue an RFP for both solicited and unsolicited projects before it can enter into a public-private agreement. The RFP will normally consist of a variety of procurement documents that together comprise the entire RFP, including Instruction to Proposers, Public-Private Agreement, Technical Provisions, Reference Documents, and Forms and Certifications. The RFP will usually contain the following: • Scope of Work – the RFP will indicate in general terms the scope of work, goods, and services sought • Draft Contract – the RFP will include or incorporate by reference the specifications and contractual terms and conditions applicable to the procurement and the project

229 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Evaluation Criteria – the RFP will specify the factors, criteria, and other information that will be used in evaluating the proposals • Evidence of Financial Responsibility – the RFP will require a statement that a proposal must be accompanied by evidence of financial responsibility as considered appropriate and satisfactory by the SPV If the SPV conducts a one-stage procurement, it will publish a public notice before the RFP is issued. If the SPV conducts a two-phase procurement, then a public notice is not necessary before issuing the draft RFP to shortlisted proposers. The SPV and other appropriate personnel will evaluate responses to the RFP based on established evaluation criteria. The SPV will determine the evaluation criteria for each project and specify those criteria in the RFP. The SPV reserves the right to use a best value to the public approach; a lowest price or cost or the highest payment to, or revenue sharing with the SPV approach; or any other selection process it determines to be in the best interest of the city. The SPV reserves the right to proceed with negotiations with more than one proposer and/or run a Best and Final Offer process, with some or all of the shortlisted proposers. Contract award If the SPV determines that: (a) the proposal meets the evaluation selection criteria and (b) the proposal is in the best interest of the city, the SPV will make a determination of whether the successful proposer should be deemed the operator, and will then submit its decision to the Board of Directors for review and approval. If the Board accepts the determination, then the successful proposer will be designated as the operator for the project, and the SPV may execute the public- private agreement. The SPV reserves the right to modify its request, seek revised proposals, or decline to award a public-private agreement for any reason. In addition, the SPV may withdraw an RFQ or RFP at any time and, at its discretion, publish a new RFQ or RFP. Post-financial close The financial close is just the beginning. The project will last for many years, and the ongoing monitoring and interaction with the private operator is essential to having a successful project, especially when performance requirements are involved in the signed contracts. The relevant ULB will be responsible for coordinating the implementation of the Public-Private Partnership project, and the SPV will serve as a resource to the ULB for any commercial or contract management issues that may arise during the project development, design, construction, finance, and operations and maintenance phases.

230 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam

Guidelines for developing “Smart” Infrastructure:

Transport sector

August 09, 2016

231 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents

Acronyms and abbreviations …………………………………………………………….....233

Introduction……………….. …………………………………………………………….....234

Objectives of the guidelines ………………………………………………………………..237

Transportation sector overview……………………………………………………………..239

Smart project definition………………………………………………………………...…..242

Smart project identification…………………………………………………………………249

Smart project preparation…………………………………………………………………...253

Smart project procurement……………………………………………………………….....260

232 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Acronyms and abbreviations

API Application Programming Interfaces BRT Bus Rapid Transit CEO Chief Executive Officer CMAR Construction Manager at Risk CO Carbon Monoxide dB Decibels DB Design-Build DBF Design-Build-Finance DBFOM Design-Build-Finance-Operate-Maintain DBOM Design-Build-Operate-Maintain DCT Draft Contractual Terms EoI Expression of Interest GVMC Greater Visakhapatnam Municipal Corporation HPSC High Powered Steering Committee ITB Instruction to Bidders LCMP Low Carbon Mobility Plan LoA Letter of Award LOS Level of Service NIT Notice Inviting Tender NO2 Nitrogen Dioxide O&M Operations and Maintenance O3 Ozone Pb Lead PIM Project Information Memorandum PM10 Particulate matter less than 10 micrometers in diameter PM2.5 Particulate matter less than 2.5 micrometers in diameter 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 Vizag Visakhapatnam VUDA Visakhapatnam (Vizag) Urban Development Authority

233 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Introduction As the population of greater Visakhapatnam, also known as Vizag, continues to grow in the coming years, increasing pressure will be placed on the urban and social infrastructure that supports residents and visitors. In response, Government of Andhra Pradesh, the Greater Visakhapatnam Municipal Corporation (GVMC), and Visakhapatnam Urban Development Authority (VUDA) collaborated to develop a guiding vision for the economic transition needed to support anticipated regional growth, and to identify efficient and effective methods for serving existing and planned communities. The Vision for a smarter greater Vizag Building upon the existing diverse economic base and inherent livable amenities and lifestyle, the vision was set for greater Vizag to become South and Southeast Asia’s Clean Commerce Capital by 2030. This goal aims to protect and enhance quality of life for residents and businesses alike by pursuing two fundamental objectives: Green Living • Preserve and celebrate the unspoiled environment • Promote a healthy lifestyle • Provide access to amenities • Promote clean air and clean water Smart Business • Maintain and expand ease of doing business • Facilitate and require clean manufacturing • Plan and deploy intelligent infrastructure • Facilitate and require socially responsible businesses practices Achieving the vision will require a “Smart City” approach to regional development and infrastructure planning and delivery. The intent of the Smart City management framework and projects will be to accelerate provision of basic services, employ creative approaches to cost- effective service delivery, and set in motion a virtuous circle of infrastructure investment, high- quality urban environment initiatives, workforce attraction and retention, increased local government revenue, and additional infrastructure investments. The intent is for Smart City projects to be deployed throughout the region to catalyze sustainable, cyclical progress toward regional goals by promoting: • Higher customer satisfaction and citizen buy-in • More responsive service delivery and smaller carbon footprint • Conservation and enhancement of natural and social resources • Lower marginal costs for improved services • Lower overall infrastructure development and operations costs for improved services

234 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Closure of infrastructure gaps in the most intelligent way possible Guiding principles and approaches When approaching the planning process and early project identification, the following people- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements: • Understand behavior patterns in order to address peak-use challenges • Acknowledge and leverage connections between infrastructure of different types • Enable feedback loops between infrastructure systems, utilities, and customers • Bring people to services while at the same time bringing services to people • Track progress toward success with specific benchmarks and targets When approaching the planning process and early project identification, the following system- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements: • Get the most out of existing infrastructure systems and investments • Acknowledge and leverage connections between infrastructure of different types • Develop and use more storage strategies to ease peak-use constraints • Prioritize retrofit over redevelopment and greenfield expansion • Leapfrog over unresponsive technologies to select more efficient information and communications technology (ICT)-enabled delivery methods • Cultivate resilient, networked systems to build capacity and reduce vulnerability Smart City project development and procurement scenarios are another critical component to achieving the vision within fiscal and time constraints. “Smart” procurement approaches involve the following strategies: • Attract global interest and competition • Form mutually beneficial partnerships that accelerate implementation of capital projects • Allow appropriate sharing of project risks and contingent liabilities • Support better control of project costs, schedules, and performance • Support innovative project life-cycle strategies for efficient planning, implementation, operation, and maintenance of infrastructure assets • Optimize use of infrastructure assets • Develop creative partnerships that leverage private capital and expertise • Establish implementation entities that can attract, combine, and utilize multiple funding sources • Support stronger contract enforcement mechanisms

235 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

236 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Objectives of the guidelines This report is intended to provide guidance for the identification, development, and implementation of transport services. The report outlines the typical processes involved in the project development lifecycle for both solicited and unsolicited projects across the transport sector in Greater Vizag. The guidelines recognize that each project is unique; certain elements set forth in this report may not apply in all circumstances and may be subject to change as deemed appropriate. Furthermore, the guidelines are intended to serve as a general template for implementing smart projects and are not meant to be limiting. The Special Purpose Vehicle (SPV) or the public entity responsible for the Smart City projects has the flexibility to amend provisions in these guidelines on a case-by-case basis, so long as the resulting provisions comply with guideline objectives, which are to: • Guide and inform analyses and other work to be performed for the planning and implementation of Smart City projects; and • Guide and inform the planning, deliberation, and decision-making process of GVMC, the Grantee, and other key stakeholders in identifying, assessing, implementing, and executing Smart City initiatives and projects to the extent applicable to the transport sector. The gaps that were identified in the Transport sector in Vizag by previous studies related to the following issues: • Traffic congestion • Lack of adequate parking and management systems • Lack of infrastructure to support public bus transit systems • Lack of integrated multimodal transport system • Lack of regulation for intermediate public transport (auto-rickshaw) systems • Lack of infrastructure for non-motorized vehicles • Lack of Passenger Information System for public transport Ultimately, the purpose of the guidelines is to assist in prioritizing and delivering projects that can: • Increase stakeholders’ access to information about critical infrastructure; • Increase the efficiency of service delivery; • Engage the local population; and • Enhance the economic competitiveness of the city. The guidelines are organized as follows: • Transport sector overview • Smart project definition • Smart project identification

237 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Smart project preparation • Smart project procurement

The following diagram illustrates key steps in the process of choosing, prioritizing, developing and procuring smart projects.

238 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Transport sector overview The Transport sector can be sub-divided into four subsectors depending on the transport mode: (1) vehicle (cars, non-motorized vehicles, two-wheelers, auto-rickshaws, trucks, and buses), (2) rail (light and heavy rail), (3) ports, and (4) airports. Collectively, these modes of transport move people and commerce, improving economic prosperity and quality of life. Transport infrastructure consists of the fixed installations that allow vehicles to operate and includes roads, bridges, crossings, railways, airways, and terminals such as airports, railway stations, bus stations, truck terminals, and seaports. Projects in the Transport sector may also include support infrastructure such as parking facilities, bus facilities, traffic control, sharing facilities, public information systems, fare collection mechanisms, and monitoring or interactive telecommunications in the transport infrastructure right-of-way. This report does not focus on any of these subsectors in particular, but on the identification, selection, and procurement process for large Smart City mobility enhancement projects across the Transport sector. Identified service delivery challenges Adequate urban mobility is critical to accessing employment, education, healthcare, and recreation opportunities. As the population increases, increased transport activity is necessary. However, if not managed properly, demand can increase pollution, congestion, and accidents in the city. The current travel mode split in the city is 52% walking trips and 18% bus usage, while the private modes of car and two-wheeler trips together are only 17% of the total trips in the city. For females, the private mode usage is even smaller, with 92% trips made by walking, bus, or auto-rickshaw (an intermediate public transport). The city has a bus system with good network connectivity and a fleet of 670 buses that accomplish around 500,000 trips per day. Forty-two kilometers (km) of Bus Rapid Transit (BRT) corridors are also being developed, of which, 21 km are currently operational. The city has only 78 km of footpaths out of the total arterial road length of 430 km, and these footpaths are not continuous, universally accessible, or properly lit at night. Following are the service delivery challenges for the Transport sector: • Lack of infrastructure for the public bus transport system • Lack of stakeholder coordination in implementing mobility improvements • Lack of current data on roadway and transit congestion and operation • Lack of regulation of intermediate public transport • Low level of multimodal integration • Inadequate facilities for cyclists and pedestrians • Lack of transparency in public transport system • Lack of public transit alternatives to automobile and long-range buses In addition to these challenges, the following considerations can be used as performance indicators or measures of a successful system. These benchmarks can assist in demonstrating needs and better inform project definition.

239 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Additional transport sector considerations

Indicator Measurement Definition Occurrence

Transport – Vehicle Mode (Private Vehicle, Taxi, and Rickshaws) Vehicle Level of Service LOS C/D Measurement of vehicle flow along Peak Hours (LOS) a segment of roadway. The best level is LOS A and the worst level LOS B/C is LOS F. Midday Hours Availability of Roadway 24 hours per day Vehicle Access 100% Vehicle Capacity vs. Demand/Capacity% Capacity of Roadway <100% Demand Accidents/Intersection

Air Quality (Source Vizag Standards)

Carbon Monoxide (CO) micrograms/meter3 8 hours <2 1 hour <4

Nitrogen Dioxide (NO2) micrograms/meter3 Annual <40 24 hours <80

Ozone (O3) micrograms/meter3 8 hours <100 I hour <180

Particle Pollution (PM2.5) micrograms/meter3 Annual <40 24 hours <60

Particle Pollution (PM10) micrograms/meter3 Annual <60 24 hours <100

Lead (Pb) micrograms/meter3 Annual <0.5 24 hours <1

240 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Indicator Measurement Definition Occurrence Noise and Vibration Decibels (dB) Identifies levels of noise and noise Night <55 dB generated vibrations Day < 65 dB

Travel Time Reduction Minutes % reduction in travel time Comparison of before and after Annual Maintenance Rupees/Year Cost of maintaining lighting, Comparison of before and Cost/Vehicle Using signage, barriers, etc. after Segment

Transport – Public Transit Mode Measure of Passenger Comfort and Safety Rail - Passengers/Vehicle 0.28 m2 /pass Peak Hours 0.37-0.46 m2 /pass Measure of Passenger Comfort and Non-Peak Hours Safety Travel Time Minutes Measure of Effectiveness vs. Other Peak and Non-Peak modes or improvements Hours

Air Quality (Source Vizag Standards)

Carbon Monoxide (CO) micrograms/meter3 8 hours <2 1 hour <4

Nitrogen Dioxide (NO2) micrograms/meter3 Annual <40 24 hours <80

Ozone (O3) micrograms/meter3 8 hours <100 1 hour <180

Particle Pollution (PM2.5) micrograms/meter3 Annual <40 24 hours <60

Particle Pollution (PM10) micrograms/meter3 Annual <60 24 hours <100

Lead (Pb) micrograms/meter3 Annual <0.5 24 hours <1 Noise and Vibration Decibels (dB) Identifies levels of noise and noise Same as vehicle mode generated vibrations above

241 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Indicator Measurement Definition Occurrence Annual Operating Rupees/Year Cost of maintaining vehicles, Comparison of before and Cost//Service stations/stops, fixed facilities, and after rights-of-way Annual Cost/Passenger by Rupees/Year Cost of providing Service by Comparison of before Service individual service. and after Smart project definition Smart project ideas can come from multiple sources and decision makers at the Municipal, District, Region, State and Central government levels must be able to define and differentiate “Smart” projects from traditional infrastructure approaches in order to optimize delivery. The key characteristics that separate the two approaches are as follows:

First and foremost, smart projects will enable and promote the values identified in the Smart City Vision for Greater Vizag. Opportunities for strategic sector enhancements to achieve the vision Strategic enhancements to the Transport sector will result in improved air quality, and improved access, which will reduce the cost of doing business: • Reduced traffic congestion will result in less stop-and-go traffic, which will improve air quality • A strategic parking management strategy will result in less cruising by private cars looking for parking, which will result in improved air quality and a reduced carbon footprint • Improvements to bus operations and passenger information could result in attracting some people who drive private cars to the public transport system, which will reduce traffic congestion All future projects proposed for development in Vizag should aim at addressing one or more of the gaps identified in the transport sector. The primary step for project evaluation should focus on how the proposed projects would fix the issues identified.

242 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The sector enhancements are needed to fill the gaps that have been identified in Vizag’s transport sector. The possible areas of enhancement include:

Traffic management • Smart traffic signals • Centralized command and control centers • Smart travel corridors

Parking management • Smart parking meters • Multi-level car parking systems

Infrastructure for public bus transport • Automated fair collection system • Smart bus stops • Public information systems • BRT lanes

Promoting integrated multimodal systems • Information integration • Integrated fair collection systems

Facilities for pedestrians and cyclists • Dedicated lanes • Bike sharing systems • Refurbished footpaths Identified system awareness challenges • Lack of vehicle data impedes knowing where congestion is starting to build, so congestion can only be dealt with after the fact. • Since bus operations are not monitored by GPS, there is no way of knowing if buses are on schedule or running behind schedule. No information can be provided to passengers at bus stops. • Lack of vehicle counting equipment prevents understanding the actual use of the roadway and whether demand is exceeding capacity during parts of the day. This makes it hard to identify problems that may require long-term infrastructure improvements, or short-term solutions, such as reducing on-street parking to increase capacity during the peak demand hours.

243 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Identified system capacity challenges If the government in Vishakhapatnam does not intervene, the trend of relying on private transport is projected to increase, with mode share increasing to 25% for two-wheelers and 8% for cars in 2030 (Low Carbon Mobility Plan [LCMP], iTrans, February 2014). Vishakhapatnam’s LCMP found that the best way to reduce the number of vehicle trips is to shift them from private modes of transport to city buses as much as possible, and to auto-rickshaws if busing is not feasible for the trip. Also, the emissions per passenger per kilometer are lowest for buses, followed by auto-rickshaws. Shifting trips from cars and two-wheelers to buses and auto-rickshaws will be beneficial in terms of congestion, emissions, and also traffic safety. The projects carried out in future should conform to this objective. Opportunities to integrate ICT systems to improve performance In the information age, businesses cannot succeed without effective information sharing among employees, departments and customers. This is true for governments too—operating in isolation, governments cannot deliver efficient protection and value-added services to citizens. The effectiveness of government services depends directly on the quality of interaction with citizens, business partners, and employees in the context of agency and business processes. Some opportunities that can improve the performance of greater Vizag government agencies and resident experience are discussed below.

Transit insights Agencies can effectively manage public transport, and reduce congestion, energy spending, and emission levels, using the following strategies. (1) Provide greater visibility of active transit vehicles and predict their arrival times. (2) Analyze the performance and bottlenecks of the transit system through historical data analysis and predictive modeling. (3) Disseminate the transit info through multiple channels, such as web portals, mobile phones, kiosks, and vehicle management systems. If the residents are well informed about real time status, the satisfaction of public transport users can be significantly improved. eServices Multi-channel user engagement applications can provide the most recent information about the city’s transport network and its current status. These applications can be accessed as web portals, mobile applications, kiosks applications etc. Application content and user interactions should be supported in the local language and English, and adhere to web accessibility standards. Capabilities such as journey planner would provide a better customer experience; they could start with a single mode (bus) and extend to multimodal. In future, they could add ability to make online payments, such as with a recharging account, and provide a single, integrated account view with transaction information related to public transport, parking etc.

Intelligent command and control center An intelligent command and control center will increase situational awareness by providing a comprehensive picture of what is coming down the road at any given time. It increases the

244 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

visibility of incidents across a diverse set of traffic systems and improves incident response and traffic flow. It prioritizes signals based on the emergency incidents and traffic conditions, and analyzes historical data to gain performance insights and understand patterns of behavior of traffic and road incidents. The solution can be augmented with intelligent video analytics capabilities, which can monitor live video streaming of road networks and relay events of interest in real-time. It can also perform statistical analysis of and identify patterns across hundreds of millions of past events and activities. This solution can help agencies proactively manage the transport network and enhance the travel experience for commuters.

Business application programming interfaces (APIs) To improve traffic flow and enable continued growth, it is critical to get the right traffic information to the right set of road users at the right time, through visibility across transport networks. This can only be made possible by interactions among government agencies at multiple levels (city, state, and country), non-governmental organizations, and more importantly, improved participation and engagement of road users with the transport agency. APIs can be thought of as the “controlled persona” of an organization publicizing its information as a product or a service. Once published as open web APIs, business partners, and even independent developer communities can find innovative ways to use and build on this valuable information. Business API encourages the ecosystem around it to innovate and build transformational applications. It also opens up innovative business models for revenue generation for the government agencies.

Integrated fare management Integrated fare management is an automated revenue collection system integrated into a broader financial services ecosystem. Commuters can purchase a “SmartCard” that allows them access to buses, metro rail, toll roads, parking, etc. This solution allows seamless travel and transfer throughout different operators and modes of transport. It improves service by making the system easier to use. With the advent of mobile wallet and payment operators, the SmartCard could potentially be used in the future for retail purchases, micro payments, etc.

Electronic parking system These systems provide parking payment options through SmartCard for covered and roadside parking areas. Roadside parking would have the required roadside infrastructure to accept payments and detect active parking on the bay. The device would display the parking charges and have the ability to send notifications to the enforcement agency about violations. It would also be able to detect and share near real-time parking slot availability information as APIs, as well as display the information as variable message signs.

245 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Multimodal transport Leading cities are implementing broader strategies to help them move from single mode operation to more sophisticated multimodal transport services and integrated transport delivery. Their strategies address three main areas: governance, transport network optimization, and integrated transport services. Typically, they progress through different levels of sophistication in each of these three areas, as documented in the IBM Intelligent Transport Maturity Model shown on the following page. The following diagram illustrates the progress profile for a typical city versus global leading practice.

246 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Opportunities for Cross-Sectoral Integration Many of the best smart city projects are expected to be cross-sectoral in nature and involve multiple infrastructure service sectors simultaneously. While the plans for sector improvements are being developed, they should not be developed without coordination and input from the other sectors. The cross-sector project examples below illustrate some advantages of incorporating cross-sector considerations: • Incorporating solar panels into transport projects • Installing transport monitoring systems on existing utility poles • Using a common SCADA system employing an area-wide service feeding to a common traffic/transport command center There are numerous possibilities for true smart city cross-sectoral projects, and each sector should coordinate the planning activities with the other sectors and incorporate common features wherever feasible. All the future projects that are proposed for development in Vizag should aim at addressing one or more of the gaps identified in the transport sector. The primary step for proposed project evaluation should focus on the issues identified and the GVMC and VUDA Transport Master Plan. Example relevant smart city projects The following list of smart transport projects illustrates the kinds of projects that the Visakhapatnam Metropolitan Region can consider when attempting to improve system efficiency and the ability of operators to monitor system flows. Discretion is required when using the following list, as these representative projects will be applicable and appropriate in some situations but not others. • Move-Smart transport corridor – This would be a comprehensive upgrade of a specific transport corridor, including improvements to the roadway, residential stormwater, traffic flow, bus travel times, bus passenger information, bicycle amenities, and pedestrian safety. • Intermodal passenger information system – Would provide bus schedules and routes of all public transport lines to awaiting passengers, with real-time estimates of bus arrivals and notification of delays. • Dedicated bicycles lanes – Could be provided along existing roadways, designated bicycle lanes, and cycle stands/storage cabinets. • Public transit bus travel time improvements – Would improve bus speeds and reliability by obviating the need for buses to pull into and out of stops. Buses could have transit signal priority at signalized intersections and bypass lanes at high volume intersections. • Automated multimodal fare collection system – A stored-value “smart” fare card could be implemented for bus rides, vehicle parking facilities, and other modes of public transport to facilitate intermodal travel and encourage the use of alternative modes of transport.

247 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Smart parking management and information system – A parking strategy could be established to remove on-street vehicle parking in selected areas and provide real-time status, location, and directions to available parking spaces. • Traffic congestion pricing – A fee could be charged for traveling within the downtown area during peak congestion periods. The fee would be limited to private vehicles, not public transit vehicles. It would be a quick way to encourage more people to switch to public transit and reduce traffic congestion. In the area of transport, the typical infrastructure project requires the partial or full acquisition of private property. Under the Smart City process of transparency, the identification of needed property and process of acquiring it is presented to the public and property owners through early notification and consultations with the potentially affected property owner(s) and local governmental agencies and officials. The consultations would explain in advance the potential need for the property acquisition, and outline the process that would be used to determine the fair compensation to the owner for his or her property and the procedures for acquiring it. The discussions would also explain the opportunities the owner will have to negotiate for the terms of compensation.

248 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project identification The following section discusses the process by which municipalities, districts, regional planning entities and state-level administrations can identify and prioritize projects for implementation. The process begins with the ‘long-list’ of smart projects identified by infrastructure managers and the community. Contributions to this list can come from multiple sources. Sources of recommended projects to consider The selection of projects will be based on needs identified from field data as part of planned development and from user input. The following is an indicative list of potential smart project proposals. • Comprehensive sector-wide assessment: Traffic and transport needs identified from area-wide issues such as traffic congestion, lack of parking, and pedestrian and vehicle safety issues would be the basis of projects. • Previous capital improvement programs: Existing projects already identified in approved capital programs that meet the Smart City guidelines, but have not been implemented, would be considered. Innovative ways of implementing the project would be an important element for determining applicability for the program. • Customer/public feedback: Concerns from roadway and bus riders, as well as comments or issues raised by the general public, would frame problems or deficiencies that could be resolved by a Smart City project. For example, public or bus passenger identification of insufficient service or extended delays or safety issues on existing routes. • Maintenance schedules: Projects can also be developed based on maintenance requirements, either for existing infrastructure rehabilitation/reconstruction, or the need for replacement/upgrading of existing transit facilities such as maintenance garages or bus shelters. • Mandate assessments by central/state government: New mandates similar to accessibility for handicapped individuals, or new design standards that need to be implemented, such as roadway impact attenuators or an emergency roadside phone system, could be another consideration for Smart City projects. • Capacity/service demands of redevelopment: The growth of the population as forecasted by new business openings and businesses relocating to the area, increased tourism, and new residential development would create more of a demand on roadway capacity and services in public transit. The higher demand for services can require quantum jumps in highway capacity needs. • Changes in jurisdictional boundary: Such changes as rezoning of land area in response to growth in business, tourism, population, and jobs will create new demands for new roadways and new or improved transit facilities to meet the new demands. • Response to cross-sectoral project proposals: Project initiatives by other sectors such as Water/Wastewater and Stormwater will be considered favorable. Implementation of new sanitary/stormwater systems under the roadways will require reconstruction of the

249 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

roadway and present opportunities, or the requirement, to install improved traffic controls and roadway geometry. Development of a new airport will require new roadways and rapid transit that needs coordination and connection with GVMC roadway and transit. • Sector-wide assessment: The sector-wide assessment can be used to gain the maximum benefit from advancing multiple related projects within an area in concert. An example of this assessment is when improvements to a roadway are planned, such as a resurfacing project, checking whether other projects, such as new traffic signal installation and improvement to the stormwater drainage system, are also scheduled. The sector-wide assessment is recommended for two main reasons: 3. It is advisable to identify and prepare smarter transport infrastructure projects in the context of a master plan; and 4. System-wide assessment is the first task of master plan preparation. 5. Unsolicited proposals: As a result of the various needs and opportunities from all of the considerations above, unsolicited proposals from the private sector can possibly innovate financing opportunities and generate revenue with no direct expenditure to the 27 government. The Swiss Challenge Approach is another way of selecting candidate 28 Smart City projects from unsolicited proposals submitted by private sector entities (including developers). Once the long list of candidate smart projects is compiled, the proposals can be screened for priority based upon selection criteria. Criteria for screening/evaluating candidate smart city projects The criteria are designed to assist relevant Urban Local Bodies (ULBs) and public entities in determining the suitability of delivering infrastructure projects as Smart City projects. The purpose of the screening criteria is (a) to determine whether a given proposed infrastructure project responds to and is consistent with Visakhapatnam’s overarching approach to smart

27 "Swiss Challenge Approach” is when a private sector participant (original project proponent) submits an unsolicited or, suo-motu, proposal and draft contract principles for undertaking a project not already initiated by the government agency or local authority. The government agency or local authority then invites competitive counter proposals in such manner as may be prescribed by the government. The proposal and contract principles of the original project proponent would be made available to any interested applicants; however, proprietary information contained in the original proposal must remain confidential and will not be disclosed. The applicants then have an opportunity to better the original project proponent's proposal. If the government finds one of the competing counter proposals more attractive, then the original project proponent will be given the opportunity to match the competing counter proposal and win the project. In case the original project proponent is not able to match the more attractive and competing counter proposal, the project is awarded to the private sector participant submitting the more attractive competing counter proposal. 28 Per the Andhra Pradesh Infrastructure Development Enabling Act, 2001, the “Unsolicited or Suo-Motu Proposal” means a proposal in respect of a project not already initiated by the government, government agency, or local authority, and which proposal is submitted by any private sector participant to the government agency or local authority in respect of any infrastructure in the state supported by project specifications, technical, commercial and financial viability, and prima facie evidence of the financial and technical ability of such private sector participant to undertake such project with full details of composition of the private sector participant and his financial and business background.

250 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

infrastructure delivery and smart urban management; and (b) to determine a proposed project’s initial feasibility and the desirability of its implementation. The screening method is also a means of systematically and consistently applying evaluation criteria to prioritize projects. These evaluation criteria can also be applied to unsolicited proposals to be considered. However, unsolicited proposals have additional administrative requirements to ensure they adhere to the Smart City process, goals, and objectives. The screening criteria for smart infrastructure projects include (1) specific criteria designed for smart infrastructure projects and (2) general infrastructure project criteria. The table below summarizes criteria used to prioritize candidate Smart City projects.

“ Smart City” infrastructure project screening criteria Alignment with • Does the project contribute to the Green Living aspiration of the vision? vision statement • Does the project respond to the preferences and priorities of future project users, including as stated in the Visakhapatnam Smart City Mission Statement and Smart City Challenge Proposal? System awareness • Does the project improve the ability to monitor the performance of systems? and efficiency • Does the project allow detection or prediction of operational problems in a more timely fashion? • Will the project generate technical, financial, economic, or other benefits for other infrastructure systems? • Does the project enable existing fixed assets to apply to more customers or deliver higher value services to existing customers? • Does the project enable delivery of more or higher-quality services at a lower cost or shorter timeframe? Citizen • Does the project provide customers/users with more visibility into service delivery? participation / • Does the project enable customers/users to know more quickly/easily location and transparency cost of services? • Does the project enable customers/users to observe/participate in decision-making in service delivery changes? • Does the project support appropriate institutional and financial data transparency? • Will customers/users without Internet access benefit from additional project transparency? Resilience • Does the project support disaster management resilience? • Does the project support existing service delivery and ensure that the current capacity is adequately redundant where appropriate? • Does the project support climate change adaptation and mitigation? • Does the project include the capability to notify the public in the event of change or disruption in services and suggest alternatives for the public to choose from? General infrastructure project screening criteria

Alignment with • Is the project consistent with sector and urban policies at national and state levels? policies Is the project consistent with purposes and needs of GVMC and VUDA? Economic costs and • Do the anticipated economic benefits outweigh the anticipated costs? benefits • Will the project strengthen Vizag’s economic competitiveness in key growth sectors?

251 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Social costs and • Do the anticipated social benefits of the project outweigh the anticipated social benefits cost? • Can mitigation measures be identified for any major negative social impacts? • Does the project respond to the preferences and priorities of future users? • Does the project protect and benefit the vulnerable communities? Environmental • Do the anticipated environmental benefits of the project outweigh the anticipated costs and benefits environmental cost? • Can mitigation measures be identified for any major negative environmental impacts? Cash flow • Is the project anticipated to generate positive cash flow in development costs, operation, and maintenance? • If the project does not generate positive cash flow, is there an identifiable source to fill the financing gap and if so, are public funds required? • What amount of public funds, if applicable, is required to fill the financing gap of the project, and does this ensure that the project is affordable? • Will the project be able to support itself without user fees or subsidies? • Can funding sources and financing be reasonably expected to be obtained? Feasibility • Is the proposed technical solution feasible and sound? • Does the implementing agency have the technical and managerial capacity to develop the project? • Does the implementing agency have the institutional capacity to operate and maintain the project?

252 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project preparation

Role of the Special Purpose Vehicle An SPV was created to plan, appraise, approve, release funds, implement, manage, operate, monitor, and evaluate the Smart City development projects. As such, the SPV will be responsible for procuring and delivering the Smart City projects that provide value for the greater Vishakhapatnam area and will adopt and observe in accordance with the guidelines set forth in this report. The SPV will be a limited company incorporated under the Companies Act of 2013 at the city level. By default, the state government and the ULB will be the promoters of the SPV having 50/50 equity shareholding. The private sector or financial institutions could take equity stake in the SPV provided that: 6. The shareholding pattern of 50/50 of the State Government and the ULB is maintained at all times; and 7. The state government and the ULB together have majority shareholding and control of the SPV. The SPV’s board will be composed of a Chief Executive Officer (CEO) and Functional Directors, as well as representatives of the central government who will be appointed by VUDA, representatives of the state government, representatives of the ULB, and Independent Directors. Procurement will be managed by the Office of Chief Engineer with the support of five Superintendent Engineers. The SPV will be independent and autonomous in its operation and decision-making. The Smart City Mission encourages the state government and the ULB to adopt the following best practices to create an empowered SPV to the extent and as provided under the municipal act: • Delegating the rights and obligations of the municipal council with respect to the Smart City project to the SPV. • Delegating the decision-making powers of the ULB under the municipal act/government rules to the CEO of the SPV. • Delegating the approval or decision-making powers of VUDA/Local Self Government Department/Municipal Administration Department to the Board of Directors of the SPV in which the state and ULB are represented. • Delegating matters that require the approval of the state government to the state-level High Powered Steering Committee (HPSC) for Smart Cities.

253 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The SPV may retain individuals or firms to provide consulting services to assist the SPV as it deems appropriate in connection with the Smart City projects. Technical, legal, and financial consultants under contract with the SPV can provide the additional resources and expertise necessary to help efficiently and effectively develop and implement the Smart City projects. The SPV will advance a Smart City project to the development phase after conducting an assessment to evaluate candidate Smart City projects that have successfully passed the screening criteria. This assessment will consider factors like financial and economic benefits, available funding and financing options, sustainability criteria related to city-specific sustainability needs, project and program interdependencies, locational and non-metric factors, budgetary and funding constraints, capacity constraints, and other key practicalities. A project manager will be appointed for each project to be responsible for preparing the project for procurement and maintaining appropriate coordination with the GVMC and other relevant ULBs and public entities. The Project Preparation phase will be tailored to each project’s needs. The SPV will continue to consider whether a project is suitable for alternative delivery as a Smart City project by evaluating project scope, market sounding, commercial structure, payment mechanisms, and Value for Money (VfM). Other important milestones in the Project Preparation phase include developing preliminary feasibility and economic impact studies, conducting public hearings related to the studies, submitting studies for review, and securing approval. The SPV welcomes unsolicited proposals from private entities to develop and/or operate Smart City projects throughout the greater Vishakhapatnam region. Private sector developers may submit unsolicited proposals across the value chain. All unsolicited proposals shall be submitted to the GVMC or relevant Urban Local Bodies (ULB) for review and consideration by the SPV. Private sector entities submitting an unsolicited proposal are required to pay a non- refundable, non-negotiable proposal review fee at the time of submitting the unsolicited proposal. The fee will partially offset the cost of processing, reviewing, and evaluating the unsolicited proposal. The table below summarizes the considerations that may be examined for a candidate Smart City project to assist in determining the optimal project development and delivery approach.

Criteria Considerations

254 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Criteria Considerations

Legislative • Are legislative amendments necessary (for use of public funds, payment mechanism, considerations delivery model, etc.)? • Does new legislation need to be introduced?

Project • Would an alternative delivery model as a Smart City project foster efficiencies over the efficiencies project life cycle costs? • Is there an opportunity to create economies of scale?

Project preparation process During the Project Development phase, a number of key tasks could take place to prepare the project for procurement, depending on the characteristics of the project. These include, but are not limited to: • Further define project priority, project scope, detailed engineering design, and phasing schedule • Analyze compliance with environmental and transport planning requirements • Analyze technical feasibility and operations and maintenance evaluations • Refine project cost, revenue estimates, and life cycle costing based on detailed engineering design, and operating and maintenance requirements • Prepare and submit funding and grant applications, as required • Perform additional outreach, coordinate public involvement, and build stakeholder support, including responding to concerns received from the outreach efforts • Define an approach to risk allocation and management • Determine the optimal procurement delivery method • Perform both a Value Engineering and VfM analysis Market sounding The SPV can assess market interest by performing a “market sounding” exercise. Widely used “market sounding” methods include inviting Expressions of Interest (EoIs), conducting an industry forum, and conducting one-on-one interviews. However, the SPV may choose to use additional methods to determine market interest based on the specific needs and risks of a particular project. Through an EoI, the SPV will be able to evaluate the market appetite, as well as glean possible ideas regarding the commercial structure or payment mechanism that the market would accept. EoIs may also include public briefings to further discuss elements of the project under consideration. These forums offer opportunities for public comments and private sector input.

255 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

An industry forum is a conference sponsored by the SPV that allows private entities to gather, ask questions about the project, and begin to form partnerships and teaming arrangements for the bidding process. Risk allocation Before a commercial structure is selected, the SPV needs to identify all the risks associated with the project, in addition to those already identified at the detail-level screening, and allocate these risks among the private entity, the SPV, and GVMC. Individual project characteristics drive the risk allocation strategy. Achieving optimal risk allocation is the key to achieving VfM under an alternative delivery procurement. Risks should be transferred to the party that can manage them best by undertaking effective and cost-efficient risk mitigation strategies. Typically, the public sector retains risks that are government-related, while the private sector retains commercial risks. If neither party is better situated to manage risk, the likely alternative is to share it. The figure below illustrates a possible risk-sharing strategy in a generic form:

Risk allocation

256 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

providing these services, for a fixed fee. When using design-build delivery, public sector project sponsors usually retain responsibility for financing, operating, and maintaining the project. • Design-Build-Finance (DBF) In a design-build-finance structure, the design-build contractor takes on the additional responsibility of financing the project and is repaid over an agreed-upon period, often upon completion of the project. The public sponsor transfers financing risks to the private sector partner, thereby increasing the incentive for the partner to deliver the project in a timely and cost-effective manner. • Design-Build-Operate-Maintain (DBOM) In this procurement structure, a private entity, usually a consortium of companies, agrees to take on responsibility for designing, building, operating, and maintaining a project for an agreed-upon period. While the public entity retains ownership of the project and must manage the project, the private partner assumes the long-term operations and maintenance (O&M) risks of the project. In this model, the public sponsor retains financial risk and is responsible for financing both the construction of the facility as well as ongoing O&M. • Design-Build-Finance-Operate-Maintain (DBFOM)/concession In this procurement structure, a private entity, usually a consortium of companies, agrees to take responsibility for all aspects of project delivery, from planning and financing through construction, acquisition of assets, and O&M. There is a significant risk transfer to the operator over a long period of time. The payment mechanism may vary, from a fee paid by the public sponsor to tariffs paid by end users. Capital investment is borne by the private entity. • Management contract In a management contract, no new major construction or acquisition of assets is involved, and the private entity is given responsibility to manage and operate the assets in return for a fixed fee. The fee might be subject to performance incentives in the form of a bonus or penalty. The private operator has limited repair and renewal obligations. • Affermage/lease In this structure, the private entity is responsible for O&M. The operator collects the user fees directly from consumers on behalf of the public sponsor and retains a portion as payment. The difference between the user fees and the payment is paid to the public sponsor. The public sponsor retains responsibility for major rehabilitation and new capital works. The private operator usually bears more risk in affermage contracts than in management contracts. The lease structure is similar to affermage, except that the private operator pays the public sponsor a lease payment not dependent on demand and tariffs. • Joint venture In a joint venture structure, the public sponsor creates a new company to operate the asset and usually retains ownership of the company. The private entity is part owner and also enters into a management contract with the newly formed company for full control of

257 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

day-to-day operations. This model has been successfully implemented in Spain, Portugal, and Latin America and transfers more risks to the private entity than in the above- mentioned O&M and management contracts. All projects are different, and one commercial structure may create value for a certain project but not another; therefore, the SPV may explore additional commercial structures other than those listed above.

DBFOM / Management Affermage Joint CMAR DB DBF DBOM Concession Contract / Lease Venture

Minimize public contribution

Maximize operational efficiency

Minimize cost of funds

Maximize innovation

Transfer revenue risk

Transfer other risks

Minimize procurement

period

Minimize contract length

Meets project goals Partially Meets project goals Does not meet project goals

Value for money analysis

258 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Once the Project Development phase activities reach a sufficient level to support more detailed analysis (i.e., technical input refinement, completion of environmental studies if required) the SPV may choose to perform a detailed VfM analysis. The VfM analysis provides both quantitative and qualitative information on the relative value of alternative versus traditional delivery of the project. This VfM analysis tests the value of a project delivered alternatively as a Smart City project (commonly referred to as a Shadow Bid Model) in comparison with the value of a project delivered using a traditional delivery model (commonly referred to as the Public Sector Comparator). This analysis is useful for determining whether it is worth procuring a project under an alternative delivery model. If the use of an alternative delivery model results in a better VfM compared to a traditional project delivery method, then the alternative option delivers an optimum combination of project lifecycle costs and quality that will meet the objectives of the project. The appropriate VfM methodology will vary across modes and payment mechanisms (e.g., the analysis for privately tolled concessions will differ from that for availability payment transactions in which the SPV retains some or all revenue risk). The VfM analysis is only one factor to consider when evaluating which procurement method is optimal. The SPV may move a project forward based on other benefits, such as faster delivery or meeting established affordability limits. For example, a project may not offer clear quantitative benefits in terms of costs or revenue under an alternative delivery model; however, the alternative approach may accelerate project delivery, which benefits the SPV and GVMC by, for example, reducing congestion and stimulating economic growth. At the conclusion of all Project Development phase activities, the SPV will determine whether the project will progress to the Project Implementation phase.

259 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project procurement

illustrative flowchart for one-stage and two-stage procurement processes

260 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

261 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

262 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector-Specific Smart City Infrastructure Plans for Visakhapatnam

Guidelines for Developing “Smart” Infrastructure:

Water Supply, Sewerage, and Drainage Sector

August 09, 2016

Table of Contents

263 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents

Acronyms and abbreviations …………………………………………………………….....265

Introduction……………….. …………………………………………………………….....266

Objectives of the guidelines ………………………………………………………………..268

Water supply, sewage, and drainage sector overview…………………………………………………………………………….…..270

Smart project definition………………………………………………………………...…..274

Smart project identification…………………………………………………………………292

Smart project preparation…………………………………………………………………...297

Smart project procurement……………………………………………………………….....305

264 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Acronyms and abbreviations

API Application Programming Interface 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 GIS Geographic Information System GVMC Greater Visakhapatnam Municipal Corporation HPSC High Powered Steering Committee ICT Information and Communications Technology IT Information Technology MGD million gallons per day MLD million liters per day O&M Operations and Maintenance RFP Request for Proposals RFQ Request for Qualifications SCADA Supervisory Control and Data Acquisition SOQ Statement of Qualification SPV Special Purpose Vehicle STP Sewage Treatment Plant ULB Urban Local Bodies VfM Value for Money Vizag Visakhapatnam VUDA Visakhapatnam (Vizag) Urban Development Authority WTP Wastewater Treatment Plant

265 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

266 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Closure of infrastructure gaps in the most intelligent way possible Guiding principles and approaches When approaching the planning process and early project identification, the following people- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements: • Understand behavior patterns in order to address peak-use challenges • Acknowledge and leverage connections between infrastructure of different types • Enable feedback loops between infrastructure systems, utilities, and customers • Bring people to services while at the same time bringing services to people • Track progress toward success with specific benchmarks and targets When approaching the planning process and early project identification, the following system- centric guiding principles will be used to leverage the greatest benefit from early infrastructure enhancements: • Get the most out of existing infrastructure systems and investments • Acknowledge and leverage connections between infrastructure of different types • Develop and use more storage strategies to ease peak-use constraints • Prioritize retrofit over redevelopment and greenfield expansion • Leapfrog over unresponsive technologies to select more efficient information and communications technology (ICT)-enabled delivery methods • Cultivate resilient, networked systems to build capacity and reduce vulnerability Smart City project development and procurement scenarios are another critical component to achieving the vision within fiscal and time constraints. “smart” procurement approaches involve the following strategies: • Attract global interest and competition • Form mutually beneficial partnerships that accelerate implementation of capital projects • Allow appropriate sharing of project risks and contingent liabilities • Support better control of project costs, schedules, and performance • Support innovative project life-cycle strategies for efficient planning, implementation, operation, and maintenance of infrastructure assets • Optimize use of infrastructure assets • Develop creative partnerships that leverage private capital and expertise • Establish implementation entities that can attract, combine, and utilize multiple funding sources • Support stronger contract enforcement mechanisms

267 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Objectives of the guidelines This report is intended to provide guidance for the identification, development, and implementation of water services. The report outlines the typical processes involved in the project development lifecycle for both solicited and unsolicited projects across the water sector in Greater Vizag. The guidelines recognize that each project is unique; certain elements set forth in this report may not apply in all circumstances and may be subject to change as deemed appropriate. Furthermore, the guidelines are intended to serve as a general template for implementing smart projects and are not meant to be limiting. The Special Purpose Vehicle (SPV) or the public entity responsible for the Smart City projects has the flexibility to amend provisions in these guidelines on a case-by-case basis, so long as the resulting provisions comply with guideline objectives, which are to: • Guide and inform analyses and other work to be performed for the planning and implementation of Smart City projects; and • Guide and inform the planning, deliberation, and decision-making process of GVMC, the Grantee, and other key stakeholders in identifying, assessing, implementing, and executing Smart City initiatives and projects to the extent applicable to the Water sector. Ultimately, the guidelines will: • Increase stakeholders’ access to information about critical infrastructure; • Increase the efficiency of service delivery; • Engage the local population; and • Enhance the economic competitiveness of the city. The guidelines are organized as follows: • Water sector overview • Smart project identification • Smart project selection • Smart project preparation • Smart project procurement

268 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The following diagram illustrates key steps in the process of choosing, prioritizing, developing and procuring smart projects.

269 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Water supply, sewerage, and drainage sector overview Smart water supply, sewerage, and stormwater projects will support the goal of the Vishakhapatnam area becoming Southeast Asia’s Clean Commerce Capital as described below. • Providing water service to all residences on a 24/7 basis is critical for meeting the healthy lifestyle and access to amenities areas of the Green Living component. • Connecting all residences and businesses to the sewerage system is needed as part of the unspoiled environment, healthy lifestyle, and clean water areas of the Green Living component. • Using a smart stormwater management approach at all drains in the Greater Vishakhapatnam area is needed as part of the unspoiled environment, healthy lifestyle, and clean water areas of the Green Living component and the social responsibility part of the Smart Business component. • Monitoring water supply quality, wastewater quality, and stormwater quality and quantity are parts of meeting the unspoiled environment, healthy lifestyle, and clean water areas of the Green Living component and the social responsibility part of the Smart Business component. • Groundwater quality monitoring is a critical part of meeting the social responsibility area of the Smart Business component. The Water sector can be sub-divided into three distinct but complementary services within the scope of basic sanitation. The first is water supply, which provides safe drinking water that meets the populace’s consumption needs. Second is sewerage, which treats the wastewater from human and economic activities. Last is the stormwater drainage sub-sector, which manages stormwater to mitigate damage from flooding and treats stormwater before discharge to the environment or use as water supply. To meet the Smart City goal of becoming the Clean Commerce Capital, it will be necessary for the GVMC to become a “Utility of the Future” with the following attributes: • Consistently reduces costs • Consistently increases revenues • Helps build the local economy • Increases local job opportunities • Produces cleaner effluent • Reduces demand for carbon-based energy • Reduces demand for fresh water • Reduces greenhouse gas emissions • Reduces runoff and flooding by controlling more water at its source • Provides greater beneficial reuse of biosolids • Creates a greener and heathier urban ecosystem

270 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Involves the agriculture community as a key partner in nutrient management • Involves developers as key partners in water retention and reuse • Incorporates streams, ponds, and wetlands into overall control networks, reducing costs while delivering social and community benefits.

271 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Water and wastewater Overall Issues: 1. Yeleru reservoir 2. Raiwada reservoir • Huge energy consumption 3. Meghadri Gedda reservoir in pumping 4. Thatipudi reservoir • Ageing water 5. Mudasarlova reservoir infrastructure Purification • Poor asset management • Godavari River Poor maintenance & repair • Poor customer service 1 Water source and Reservoirs 2 Water storage and purification Execution • Low storage capacity: Inadequate • Supply shortage and unreliability: storage capacity, low utilization, social Unpredictable monsoon, and environmental concerns with Underground water groundwater depletion, inadequate reservoirs. rainwater harvesting, unpredictable • Inadequate purification: Low water demand, lack of treated treatment efficiency, inadequate water reuse. maintenance, operational staff training. • Water losses: Water evaporation, Leakages • Poor quality: Water contamination, Water high TDS tower • Social and environmental concerns Distribution Network

To Water Mains

3 Water • Lack of water conservation: Lack of • distribution water metering, inefficient fixtures, Lack of access: Inadequate distribution coverage, Low consumer awareness. non-functional systems, water quality • Lack of rainwater harvesting: Low • High Water losses: Breakages and leakages, High consumer awareness, Lack of non-revenue water-theft, High water consumption integration with supply system, Space for public infrastructure constraints • Water Contamination: Poor Storage quality, Poor pipe condition • High energy consumption

Industrial wastewater 4 Industrial use treatment

• Low treated Quantity: Low installed capacity • Low Quality: Low efficiency of treatment, varying operational conditions • Treated Water reused: Social unacceptance, Water Rain Water harvesting tank Dual piping needed meter • Discharge to water bodies without treatment 4 Domestic use

Water source and extractionWater storage and purification Distribution Distribution 5 Wastewater Distribution management

272 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The many infrastructure projects needed to provide quality public services in the water supply, sewerage, and drainage sector can fall into two general categories: 8. Smart City projects, and 9. Traditional infrastructure capital projects While the procedures outlined in this document are specifically developed to deliver Smart City projects, some of the procedures are also appropriate for procuring basic infrastructure improvement projects. This report focuses on the procurement of large Smart City projects across the sector rather than any of the related technical and operational activities. Identified service delivery challenges Numerous challenges to delivery of adequate services in water supply, sewerage, and drainage were identified during the Smart City planning process. The challenges are outlined as follows: • Lack of holistic and coordinated master plans for water supply, sewerage, and stormwater systems • Lack of funds to implement necessary projects • Additional water supply is required to meet both existing and future residential, commercial, and industrial water demands

o Additional storage capacity is needed to store adequate water volumes from monsoon rains to meet water demand through the year until the next monsoon • Lack of redundancy in the water and wastewater systems

o Lack of parallel transmission mains for critical service areas o Lack of backup connections between pressure zones o Lack of backup power supplies for water systems o Lack of backup power supplies for wastewater systems • Equipment maintenance should be improved to minimize outages • Only 40% of residences are connected to the sewerage system • Lack of a 24/7 water supply results in degraded water quality at the residential tap • Lack of stormwater drainage exacerbates the sanitation problem in Visakhapatnam, especially during the monsoon months • Inadequate stormwater drainage leads to water logging every monsoon, and outbreak of vector diseases such as malaria and dengue Stated System Goals, Metrics and Key Performance Indicators System goals are summarized for each part of the water supply, sewerage, and drainage sector.

Water supply • 24/7 water supply to homes and other customers • Service to 100% of homes, businesses, and industry

273 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Meeting quality and quantity needs • Eventually have 100% metered connections

Sewerage • Extend sewer service to 100% of the GVMC area • 100% coverage of peripheral areas through individual or community toilets • Connect all households to the sewerage network • No collection system overflows or backups • Improve efficiency and adequacy of treatment systems

Stormwater drainage • 100% area coverage by stormwater drains • No incidents of water logging • 100% rainwater harvesting

Smart project definition Smart project ideas can come from multiple sources and decision makers at the municipal, district, region, state and central government levels must be able to define and differentiate “smart” projects from traditional infrastructure approaches in order to optimize delivery. The key characteristics that separate the two approaches are as follows: Traditional infrastructure approach: First assess peak demand and then build new distinct basic service infrastructures scaled to that demand. Smart City infrastructure approach: Use data to improve decision making and maximize efficiency of both existing and proposed systems. ‘Smart Systems’ are people-centric and leverage monitored flows, managed demand, and co-benefits to accelerate delivery of basic services. Using these characteristics of Smart City projects, decision makers can define a long list of solicited and unsolicited smart projects that can be prioritized for implementation in the Project Identification phase and developed in greater detail in Project Preparation. The following section discusses potential components of smart projects, possibilities for integrating ICT overlays to basic infrastructure systems and examples of relevant projects. First and foremost, smart projects will enable and promote the values identified in the Smart City Vision for Greater Vizag. Water supply system The following are key concerns and opportunities for the water supply sector to achieve the Smart City vision:

274 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Concerns • The operational concerns make the water supply system inefficient. • There is a major bottleneck for overall supply, water quality monitoring, metering, and the Supervisory Control and Data Acquisition (SCADA) management system. • The water supply assets, namely wastewater treatment plants (WTPs), pumping stations, and distribution system, requires improved maintenance. The main economic concern relates to regularly scheduled maintenance of all water system components. • The inefficient operations make the water system vulnerable, resulting in safety concerns.

Opportunities • Adequate water supply can be achieved by increasing storage for runoff during monsoon, reducing water losses to evaporation and lakes, and managing demand by improving metering and potential reuse and recycle of treated wastewater. • Adequate water quality can be improved by utilizing industry best practices for water, improving WTP performance, maintaining water pressure 24/7, and increasing frequency of flushing water mains. • Reliability of the water supply system can be improved through power backup, looped mains, and parallel supply mains. The regularly scheduled maintenance of all water system components and a “Smart Water System” also adds reliability. A Smart Water System uses electronic mapping, a real-time, all-mains hydraulic model, real-time metering data, and SCADA data in daily operations to identify and minimize “non- revenue water,” keep water users informed on potential leaks, and minimize pumping power. Sewerage system The following are key concerns and opportunities for the sewerage sector to achieve the Smart City vision:

Concerns • The biggest concern for the sewerage system is incomplete coverage of all homes. • For existing system’s operations are inefficient, which requires improved maintenance of assets, namely sewers, sewage treatment plants (STPs), and pumping stations. • The inefficient and unavailability of the sewerage system results in significant health concerns because of untreated sewage overflowing to drains. In addition, the collection system overflows and contributes to groundwater pollution. • The lack of redundancy in the sewerage system results in overflowing of untreated sewage to natural water bodies, resulting in safety concerns. • The main economic concern is regularly scheduled maintenance of all sewerage system components.

275 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Opportunities • Direct all wastewater to STPs. • Maximize reuse of recycled wastewater for industrial and other uses, thereby reducing demand for fresh water. • Provide reliable Operations and Maintenance (O&M) of sewers, STPs, and pumping stations, which is most critical for health issues. • Install backup/emergency power systems, a maintenance management system, smart maps, and improved, skilled manpower. • Sewerage master planning as an integral and early part of new development planning will help build a more cost-effective and efficient system. Drainage system The Greater Vishakhapatnam area needs to adopt the following opportunities to address the stormwater drainage management concerns:

Concerns • The primary concern is sewage in open drains and vector-transmitted diseases due to standing water in those drains causing health issues. • Extreme events such as 50- and 100-year frequency storms, in the absence of adequate flood protection, pose major threats to life and livelihood.

Opportunities • Adopt a smart stormwater management approach of preserving and maintaining the natural hydrological cycle, groundwater recharge, and natural drainage systems whenever possible. • Direct stormwater to feed lakes and water bodies to enable recycling of the stormwater. • Safety concerns can be addressed through comprehensive hydraulic and hydrologic analysis and holistic stormwater drain planning. • To facilitate recycling of stormwater, appropriate technological interventions (best management practices [BMPs]) should be adopted to improve the quality of water from stormwater flows. • Stormwater management can result in increased potable water supply and at the same time prevent water pollution. • Sometimes stormwater drains are connected to the sewerage network, which makes the sewerage system ineffective. This needs to be checked meticulously. • Continue regularization of drains through the densely populated areas. • Continue and expand the rainwater harvesting program. • Expand the existing drainage master plan activities to include BMPs and non-structural, nature-based solutions.

276 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Prepare a stormwater flood analysis to identify high-risk water logging areas for corrective action. • Prepare a stormwater drainage plan for future development areas throughout the Vishakhapatnam Metropolitan Region. Identified system awareness challenges Mapping and attributing utilities using a common Geographic Information System (GIS) platform is an efficient way to plan, design, construct, operate, and maintain all parts of the sector. The SCADA integration of utilities with the asset management framework allows data from many sources to be conveyed to a centralized command control center. Implementing this component would be the best use of existing assets, which can be holistically integrated with the proposed assets and implemented in phases. After integrating the water supply system, it could then extend to sewerage and drainage infrastructure on subsequent phases. The sewerage system will be a key resource after its advance treatment provides an alternative water supply source. The long-term planning caters to subsequent phases of Smart City. Smart maps for water supply, sewerage, and drainage utilities are needed to improve awareness of all parties regarding these systems. Smart mapping includes: • Preparation of smart base maps • Mapping of all utilities • Attribution of all key elements, like type of utility, its catchment, and physical parameters (diameter, inverts, height, width, length, alignment, etc.) • Integration of the utilities with other assets over a common GIS platform When complete, the GIS can provide the framework for Condition Asset Management, with task indicators in line with each sector component, resulting in more efficient O&M of all utilities. Identified system capacity challenges

Water supply By 2040, the total water demand is anticipated to be 154.14 million gallons per day (MGD), compared to the present water supply of 64 MGD, which leaves a deficit of 90.14 MGD.

S. No Year Population Requirement @ Bulk Total Present Deficit 150 Liters per Demand Demand Supply (in (in MGD) Day per Capita MGD) (in MGD)

1 2015 20,35,000 67.15 18.00 85.15 64.00 21.15 2 2020 23,28,240 76.82 28.00 104.82 64.00 40.82

3 2040 35,19,930 116.14 38.00 154.14 64.00 90.14

Source: GVMC The water supply deficit can be mitigated by increasing use of alternative water sources and reducing non-revenue water associated with the existing system.

277 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Sewerage Capacity deficiencies in the Visakhapatnam sewerage system are as follows: • Current sewage being treated in existing STPs: 57 million liters per day (MLD) • Total sewage generated (including Anakapalli and Bheemili): 181 MLD • Only 31 percent of the sewage generated is treated. Current population covered by existing STPs: 3.52 lakhs • Current area covered by existing STPs: 19 square kilometers • On completion of ongoing projects, the total capacity of STPs will be 214 MLD • On completion of ongoing projects, the total population coverage by the STPs: 10 lakhs

Component Existing Ongoing Existing + 2021 Projects Ongoing (Short Term)

Demand Gap

Sewerage network (km) 205.15 321.2 526.35 3415 2888.65

No. of households covered 83,468 1,00,000 1,83,468 4,23,468 24,00,000 under sewerage system

Source: GVMC

278 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The sewerage system deficit of about 70% in the present scenario can also be mitigated by an asset management program including a geo-coded condition assessment through GIS integration.

Stormwater drainage System deficiencies in the Visakhapatnam stormwater system are as follows:

Component 2015 2021

Present Ongoing Total Demand Gap Projects

Major drains 238 km - 238 km 238 km Capacity enhancement

Minor drains <1 m

Pucca drains 3365 km 3365 km 7800 km 4435 km

Kuchcha drains 4197 km 3365 km

Network 26.00 km - 26.00 km 55.00 km 29.00 km requirement at flooding points

Network length for 12.00 km - 12.00 km 21.00 km 9.00 km cutting sewage to drain

Rejuvenation of - - - - - existing network

Source: GVMC GVMC has undertaken a study of the stormwater framework to identify zones that can be integrated with the overall stormwater management plan. Geographic Information System-based drainage master plan The drainage guidelines will work most effectively under a larger framework of a comprehensive drainage master plan for stormwater management. The master plan should include watershed guidance that directs water based on natural topography of the region, focusing on retaining and recharging water locally, as in pre-development conditions. In the past, stormwater drains in towns and cities were exposed. When those cities and towns grew in population, these drains became covered, encroached, and realigned. Today we know that GIS-based master plan should be prepared based on the analysis of drainage patterns, hydrological mapping, topography, and open spaces of the city. The GIS will help identify watersheds, critical aquifer recharge zones, ecologically sensitive riparian zones, and other green areas of the city that need to be preserved for their role in the sustainable urban drainage system. In addition, the master plan can indicate the type of drain, cross sectional area, rehabilitation method, and the return period for which it is designed. Some communities in the Greater Visakhapatnam area have already prepared a master plan covering primary and secondary drains that collect water from roadside tertiary drains and the road surface. The master plans describe alignment of drains/service roads and also any widening required based on the width of the

279 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

channel where it outfalls. A map of Vizag showing the alignment of drains is shown in the diagram below.

Source: GVMC

280 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The key objectives of a drainage master plan are: • Protecting the existing waterways • Reducing runoff by using natural drainage mechanisms • Facilitating low (environmental) impact development • Recharging groundwater • Maintaining quality of water • Maintaining health of eco-systems • Building resilience of the stormwater system • Formulating guidelines for design, construction, operation, and maintenance

Essential components of watershed planning Designing decentralized systems including: • Permeable surfaces • Filter strips • Filter and infiltration trenches • Bioswales • Detention basins • Underground storage • Wetlands • Ponds Planning of stormwater system capacity is based on expected rainfall quantum (analysis of 50- year and 100-year flooding history), water absorption quotient of soil types in question, and critical aquifer recharge zones working in a coherent manner within the decentralized systems listed above. The constructed/structured drainage system will be designed to take additional runoff from intense peak hour rainfall and direct it to the closest detention areas or closest water course. The overall aim is to direct water to natural and designed low areas (roadside greens, bioswales, filter strips, etc.) so that it recharges closest to where it falls. The natural systems act primarily as conveyance channels for the stormwater, whereas structured systems supplement them to protect the existing waterways; structured system designs adhere to guidelines for design, construction, operation, and maintenance. Opportunities to integrate ICT systems to improve performance Around the globe, water is used for much more than just drinking, cooking, bathing, and other household uses. Water is essential for agriculture and for cooling and cleaning industrial equipment. It is incorporated into a wide range of products, and vast amounts of it are needed to irrigate crops, parks, and golf courses. As growing consumer and industry demands strain water supplies, society must manage the consumption and distribution of this precious and finite resource with greater efficiency.

281 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

As populations rise and urbanization trends continue, water utilities are finding it increasingly difficult to meet the growing demand for water resources. Utilities are also challenged by an aging and failing infrastructure. Budgets are limited, and utility providers run the risk of compromising service quality. ICT can help governments, utilities, businesses, and organizations address water issues, such as loss, leaks, and aging infrastructure. ICT solutions are designed to enhance infrastructure visibility to deliver an advanced level of situational awareness, event and incident management, informed decision-making, and stakeholder collaboration. ICT can enable the following opportunities in water management:

Asset management ICT allows utilities to consolidate multiple work and asset management solutions into a single platform and database. This includes bringing together assets such as transmission, distribution, power generation, water and wastewater treatment, vehicle fleet, and facilities. It helps utilities increase asset and resource effectiveness by providing a platform to support all types of asset classes. With an asset management system, GVMC can: • Improve productivity with better utilization of assets • Manage crew type and crew preparedness with enhanced crew management while tracking labor skills and certifications • Support the smart meter or revenue meter asset management lifecycle • Integrated with fixed-asset accounting, mobile workforce management, and design tools based on service-oriented architecture The solution should support a map-based user interface with functionalities like supply chain management, contact management, and service level agreements.

Advanced water analytics Water utilities and industrial water users manage many different water infrastructure components, such as SCADA systems, sensors, and meters. It is often hard to establish a single cohesive view of operations. When data is available, it can be in multiple formats and scales. For example, data can come from GIS and enterprise asset management systems. It can also come from enterprise resource planning systems, such as customer information and billing. And the data can be scattered among devices and stakeholders. Furthermore, the increasing amount of information, such as weather, dam, and river levels, that is available from external sources makes comprehensive correlation vital. Integrating disconnected and isolated data and visualizing it holistically can provide rich insights that can improve decision-making. Typical Intelligent Water software enables smarter water management by giving utility operators data on pressure, detecting leaks, reducing water consumption, mitigating sewer overflow, and allowing better management of water infrastructure, assets, and operations. This software uses advanced data management, visualization, correlation, and collaboration technologies to transform vast amounts of disparate data from various devices (including metering systems),

282 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

assets, systems, and stakeholders into actionable information that can guide executive and operational decision-making. Normally the software involves a water management platform that enhances infrastructure visibility to deliver an advanced level of situational awareness, event and incident management, informed decision-making, and collaboration among stakeholders. Analytic systems like these: • Include an intelligent Operations for Water component o Provides an in-depth view of water operations. o Leverages operational data holistically to create insights and improve water management.

o Builds a view of operations that transcends individual systems, devices, and departments.

o Helps utilities coordinate their resources to protect water supply and enable conservation and sustainability. • Include the Water Efficiency Analytics component o Helps mitigate non-revenue water through pressure optimization and pipe failure prediction.

o Reduces leaks and energy consumption by optimizing the pressure in water networks. o Reduces the incidence of disruptive and expensive pipe bursts by providing advanced analytics to identify the pipes most at risk.

o Responds proactively to potential network disruptions through deeper linkages to asset management. • Turn data from smart meters into opportunities o Tracks and monitors water consumption levels by gathering consumption data from smart meters.

o Provides citizens with the insights they need to reduce their energy and water consumption.

o Significantly increases in the rate of water leak detection. • Deliver insights from big data and smart devices o Real-time dashboards harness information so it can be immediately shared throughout organizations and agencies.

o Uses data visualization and deep analytics to provide insights that can help organizations prepare for imminent difficulties. This enables authorities to coordinate and manage response efforts and, over the longer term, to enhance the ongoing efficiency of overall water management.

o A common operating picture consolidates data from disparate sources to provide situational awareness at a system level. This helps operators make system adjustments to avoid overflow violation.

283 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

o Rich semantic model allows a contextual understanding of the water or wastewater network. This provides users with operational insights, relationships, and patterns that were previously invisible. • Take advantage of flexible deployment options o Offers multiple deployment models to support cities of varying sizes with different levels of IT resources.

o Enables cities with robust IT capabilities to deploy software in their own data centers. o Alternatively, can be used as a software-as-a-service option on the Cloud. This enables cities and cross-municipality organizations to take advantage of the latest technology advances while controlling costs.

Urban flood management • Use weather prediction capability to forecast potential urban flooding. Take proactive action to mitigate damage and prepare emergency response via Standard Operating Procedures. • Supply cities with sensors. The interconnected sensors will provide rainfall amounts and drainage channel water levels. Then the data will be analyzed by an intelligent algorithm to forecast and identify trouble spots, making the forecasts available on the Internet, and issuing warnings via text messages and emails, if appropriate. • Analyze post-crisis data to streamline future responses and mitigate issues.

Water quality monitoring management • Water quality is measured by a network of sensors and lab tests to collect data about physical, chemical, and biological changes in the water. The results are coupled with GIS information integrated with the current command center dashboard to give a holistic view of groundwater quality, other sources like lakes or rivers, and water distribution infrastructure. • Audit-ready reporting for compliance.

Operations & maintenance systems • Water supply is a vital resource for people, so it is important to know consumption rates, resources, and production information. This implies a continuous supervision of the water supply process to allow any problem that could appear to be solved, and at the same time, to maintain normal functioning parameters. Proper solutions employ automation and monitoring architectures of SCADA systems that contain a supervision and control system for the real time installation, programmable logic controllers with basic functions (communication, adjusting, measuring, etc.), libraries, communication systems, standard interfaces, or dedicated ones with sensors, electrical drive elements, measuring devices, etc.

284 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Other integrated benefits of ICT • Integrating power generation and water treatment plant and pumps to optimize operating schedules linked to energy demands can result in significant savings. • Smart water meters, infrastructure, and client dashboards can result in reduction in non- revenue water and water usage, and aid leak detection. • Water quality report accessed by primary health care centers would help them predict waterborne diseases and warn the public to avoid using a particular source of water. Opportunities for cross sectoral integration Many of the best Smart City projects are expected to be cross-sectoral in nature and involve two or all three of the infrastructure service sectors. Not only can this approach create economies of scale and reduce redundant construction operations, but considering how a water project can also be an energy project, or how a transportation project can also be a water project, can achieve the greatest benefit from the same infrastructure investment. In Vizag, as in many other cities, the largest single consumer of electricity is the water system. Sourcing, treating, distributing, capturing, and again treating water has a dramatic influence on electricity usage. Smart City solutions to infrastructure challenges use these water/energy interdependencies to get the most out of any system and look for creative ways to harness available energy or offset increased system loads by managing behavior-based demand. When improvement plans are being developed for each sector, they should not be developed without coordination and input from the other sectors with an aim to explore cross-sector opportunities. The example projects below describe the advantages of incorporating cross-sector considerations. • Developing “Smart Corridors” consisting of a complete street retrofit into a continuous strategic mobility corridor. A Smart Corridor includes streetscape, green infrastructure, and public realm beautification; transit improvements including setting transit priorities, signal management, dedicated pedestrian space, and enforcement program; and rehabilitation or renewal of the water supply, sewerage, and stormwater systems. Utilities can typically be rehabilitated using trenchless /No-Dig technology. • Solar arrays deployed as a canopy over raw water canals and floating on existing reservoirs will both generate energy and increase available water supply by minimizing evaporation. • Installing turbines to generate electricity from long water gravity transmission mains will increase efficiency by extracting power from existing assets. • Configuring water and sewerage standby power systems to augment power supply during peak power use periods, as well as during power outages, can allow dual usage of an asset to both improve system reliability and assist in meeting peak power usage demands. • Locating utility service facilities so that they integrate directly with the highways will minimize local road congestion and facilitate improved maintenance. • Utilizing a common SCADA system through an area-wide service feeding to a common command center will allow maximum usage of a single asset to meet multiple cross- sector needs.

285 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

As future projects are identified and developed, there will be numerous possibilities for truly Smart City cross-sectoral projects. Each sector should coordinate its planning activities with the other sectors and incorporate common features wherever feasible. Sources of recommended projects to consider Efficient and effective water supply, sewerage, and drainage systems are essential components to maintaining livability in the Vishakhapatnam area to meet the Smart City Clean Commerce Capital goals. The process for identifying projects is described as follows and will be the primary method of identifying future smart projects. The identification of projects will be based on needs identified from field data, as part of planned development, user input. Most projects should be identified based on comprehensive plans for each of the water supply, sewerage, and drainage systems with careful coordination among system plans to identify cross-sectoral integration opportunities for projects. The process for generating the comprehensive plans is described in the following paragraphs. There are numerous sources of projects that can be considered for implementation through the Smart City process. A partial list of sources is as follows: • Feedback about responses to emergencies such as water system failures, main breaks, sewage pump station overflows, frequent power outages, and frequent water logging. • Comprehensive mapping of main break locations, low pressure locations, overflow locations, and water logging locations in a common mapping format. • Previous capital improvement programs • Capacity/service demands of redevelopment • Proposals by developers • Customer feedback • Mandates by central/state government • Changes in jurisdictional boundary • Response to cross-sectoral project proposals. • Unsolicited proposals The procedure for generating water supply, sewerage, and drainage comprehensive plans requires a thorough understanding of the condition and nature of the existing systems. The lack of accurate, up-to-date information on location, physical condition, operating status, capacity limitations on each of the systems limits the ability to effectively plan, design, construct, and operate the water, sewerage, and drainage systems. Due to pseudo development in Vishakhapatnam, the mapping of utilities is inconsistent or inaccurate; therefore, a detailed survey and mapping of the utilities and system framework should be prepared over a common platform to allow holistic planning. The overall framework applies to both the GVMC and overall Vishakhapatnam Metropolitan Region areas. The following condition assessment tasks should be the first steps to identifying water supply, sewerage, and stormwater projects for the both the Vishakhapatnam Metropolitan Region and for the GVMC area:

286 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Update existing maps (or create new maps) to portray an accurate and up-to-date water utility base map • Critique available data and determine missing data • Survey, investigate, and verify utility locations to fill data gaps • Assemble a data base of the attributes for all utility components including, at a minimum, alignment of utility, invert and ground levels, diameters, material of construction, age of element, historical ailment, design criteria, and zone delineation • Perform a condition assessment of all existing facilities to confirm capacity and remaining useful life • Forecast utility demands based on population forecast, expected demand, and gap analysis as stipulated for the design year and zone delineation • Map attributed parameters on GIS platform A holistic planning and phasing plan for implementing water supply, sewerage, and drainage improvement projects can then be completed based on the condition assessment and fully addresses the identified system capacity challenges. After water supply, sewerage, and drainage improvement plans are developed, the most beneficial Smart City projects can then be identified and prioritized as described later in this report and based on the characteristics of: • Higher customer satisfaction and citizen buy-in • More responsive service delivery and smaller carbon footprint • Conservation and enhancement of natural and social resources • Lower marginal costs for improved services • Lower overall infrastructure development and operations costs for improved services • Closure of infrastructure gaps in the most intelligent way possible

287 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City project characteristics anticipated from both the GVMC and overall Vishakhapatnam Metropolitan Region for larger prospective water supply, sewerage, and drainage improvement

Smart water management Overall ICT Interventions: • Integrated Asset Management 1. Yeleru reservoir Solutions Analytics: Real-time data 2. Raiwada reservoir • Integrated Operations Center and analysis on water 3. Meghadri Gedda • Integrated Multi Channel usage, water availability reservoir Customer Interface patterns, and accurate 4. Thatipudi reservoir 5. Mudasarlova reservoir Purification Plant • Business Process Automation forecasting helps in • City Performance supply planning Management • Workforce and Resource Godavari River Management • Citizen Mobile App Water resource and extraction Reservoirs 4 Water storage and purification 5 3 2 Automated groundwater monitoring & access: Plant monitoring: Underground Water Water quality meters: Real-time monitoring Reduce environmental impact Improved efficiency and effectiveness; higher of water quality

1 ∗ Leakage sensors: Water Tower Online hydrology Zone meters installed: Water booster-pump maps: Enable system: Reduce thefts and non- Identify leakages automated access, revenue losses and breakages, create citizen predict breakages Optimize energy awareness Distribution network requirement 8 To water mains Water SCADA: 9 6 7 Monitoring and manage water and wastewater infrastructure Water distribution Mapping and Modelling of Outage Management Water pressure optimizer: Water Distribution Assets and System: Identifies Real-time hydraulic modelling Ensure right pump Network likely cause of outage water distribution tool: Identifies configuration based on various and informs operator of any issues inputs about volume, quality, or pressure

Smart Meters: 1

Reduce non-revenue water, Industrial use Industrial real time monitoring of water wastewater treatment usage, consumer behavior Plant monitoring and controls: change, enable smart water 1 Higher efficiency and effectiveness, improve Water meter Rain water harvesting tank utilization factors Advanced wastewater Domestic Use treatment ∗ On-going Sensors in sewer line Infrastructure: government Identify leakages and reduce health risks 1 initiatives Wastewater management projects are shown in the following Smart Water Management figure.

Typically these projects will result in energy-efficient systems using solar as a renewable energy source for operating large components under water supply, sewerage, and stormwater project

288 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

schemes. The efficient capturing and mapping of data in GIS to manage Vishakhapatnam assets can be done for the existing network in GVMC and integrated with the larger framework of the VUDA region. Populations in the outer limits of the GVMC and VUDA area use large amounts of groundwater and dispose of sewage through a septic arrangement. Smart groundwater modeling will seek to improve the quality of drinking water in these areas for health reasons. Smart City water supply, sewerage, and drainage projects can be implemented in phases in line with other infrastructure components to showcase as a template for other cities in India to achieve the Government of India’s vision. Asset management is a key tool for efficient O&M of water supply, sewerage, and drainage systems. To create the system framework, GIS mapping for these utilities is critical. GIS mapping and SCADA integration of the entire system is a smart way for maintaining and operating its essential infrastructure components. Such smart projects can also be implemented in correlation with road and electrical systems to avoid repetition of disruption and public inconvenience. Using No-Dig/Trenchless technology also results in saving public inconvenience while rejuvenating existing systems. The GVMC has already begun to prepare a water loss study comprising an Energy and Water Audit. The subsequent steps for water supply can be: • Map all mains and all customers of the water system in GIS. • Create a well-calibrated model of the entire distribution system. • Install a SCADA system that records tank levels, pump status, and zone meter data on a continuous basis. Link to the hydraulic model. • Install meters that report daily demand and usage patterns (also used for improved billing and to inform users of unanticipated changes that could indicate leaks in the customer’s system). • Utilize the data to predict daily water use and control tank levels and pump operations to minimize water system power consumption. • Utilize the data to target areas for water leak surveys to minimize leakage and system- wide water loss. • Utilize the data to schedule maintenance for all water system assets. • Utilize the data as the basis for annual budgets for operation, maintenance, and capital improvements, projected for 5 and 10 year periods (longer for major capital projects). Example relevant Smart City projects The following list of smart water projects is intended to illustrate the kinds of projects that Visakhapatnam Metropolitan Region and GVMC can consider when identifying interventions that will improve system efficiency and the ability of operators to monitor system flows. Discretion is required when using the following list, as these representative projects will be applicable and appropriate in some situations but not others.

289 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Floating solar panels Solar arrays can be deployed over existing and proposed assets in a methodological way resulting in smart components that use natural resources and increase energy efficiency. Floating solar panels over an existing reservoir not only deter water evaporation and losses, but also increase local power for pumping. Installing floating solar panels near the bay, integrating treatment plants, and installing a grid system qualifies the project as a Smart City project. The GVMC has several reservoirs in the system, some of which they control, some they do not. These floating panels could be installed on all or part of the reservoirs they control to minimize evaporation (Mudasarlova and Meghadri Gedda reservoirs for example). This could also apply to any open reservoirs in their system.

Floating solar panels

Groundwater quality monitoring system The GVMC and VMR area use groundwater as the drinking water source. The sewerage systems in these limits are based on septic tanks, which can contaminate groundwater, resulting in health concerns. Groundwater modeling for Smart City projects focuses on groundwater quality, and thus the health of the community. Water quality monitoring will include draw-down tests, laboratory testing, and well-based sensing at sites with potential soil and groundwater

290 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

contamination. This is critical for supporting public health, monitoring groundwater recharge, and developing appropriate remediation and water supply responses. Green living through stormwater drainage system BMPs A holistic stormwater management plan for the city by utilizing the run off to all drains in the VMR area, including the GVMC area represents the key initiative toward the healthy environment, healthy lifestyle, and clean water areas of the Green Living component and social responsibility part of the Smart Business component.

Improve water system efficiency The water system efficiency can be maximized by implementing the following projects: • Optimize water distribution operation through operation modeling to maximize pumping efficiency • Replace pumps, impellers, and motors that have outlived their efficiency with higher- efficiency unit(s) • Install pipeline turbines on gravity mains to extract power from existing flowing water

Maximize storage in existing reservoirs • The existing reservoirs, which are the major source of water supply to GVMC, have lost their designed capacity through siltation, and thus need a smart initiative to increase the supply volume using existing assets. Desilting and dredging will restore original capacity or provide increased capacity. • Additional storage capacity can be attained by installing variable crest gates on the existing dam spillways to allow continuous storage to the flood water level. Bascule gates and fabric dams have been used throughout the world to maximize water supply storage in existing reservoirs.

Reduce water supply system losses • Reduce water loss due to distribution system leakage. GVMC is currently carrying out Energy and Water Audit studies for prioritized zones, known as Smart District Metering Zones, to monitor pressure. They are working to integrate the system with SCADA to reduce water losses through numerous sources. • Reduce water loss due to storage tank overflows. Install sensors to monitor water levels and integrate with the SCADA system to transmit the data to a central command center to enable monitoring of water losses from storage tanks. This would both increase water supply and improve system efficiency.

291 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project identification The following section discusses the process by which municipalities, districts, regional planning entities and state-level administrations can identify and prioritize projects for implementation. The process begins with the ‘long-list’ of smart projects identified by infrastructure managers and the community. Contributions to this list can come from multiple sources. Sources of recommended projects to consider The selection of projects will be based on needs identified from field data as part of planned development, and from user input. The following is an indicative list of potential smart project proposals. • Comprehensive sector-wide assessment: Water supply, sewerage, and drainage needs identified from area-wide issues such as extents and duration of access, and groundwater quality would be the basis of projects. • Previous capital improvement programs: Existing projects already identified in approved capital programs that meet the Smart City guidelines, but have not been implemented, would be considered. Innovative ways of implementing the project would be an important element for determining applicability for the program. • Customer/public feedback: Concerns from roadway and bus riders, as well as comments or issues raised by the general public, would frame problems or deficiencies that could be resolved by a Smart City project. For example, public or bus passenger identification of insufficient service or extended delays or safety issues on existing routes. • Maintenance schedules: Projects can also be developed based on maintenance requirements, either for existing infrastructure rehabilitation/reconstruction, or the need for replacement/upgrading of existing transit facilities such as maintenance garages or bus shelters. • Mandate assessments by central/state government: New mandates similar to accessibility for handicapped individuals, or new design standards that need to be implemented, such as roadway impact attenuators or an emergency roadside phone system, could be another consideration for Smart City projects. • Capacity/service demands of redevelopment: The growth of the population as forecasted by new business openings and businesses relocating to the area, increased tourism, and new residential development would create more of a demand on roadway capacity and services in public transit. The higher demand for services can require quantum jumps in highway capacity needs. • Changes in jurisdictional boundary: Such changes as rezoning of land area in response to growth in business, tourism, population, and jobs will create new demands for new roadways and new or improved transit facilities to meet the new demands. • Response to cross-sectoral project proposals: Project initiatives by other sectors such as water/wastewater and stormwater will be considered favorable. Implementation of new sanitary/stormwater systems under the roadways will require reconstruction of the

292 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

roadway and present opportunities, or the requirement, to install improved traffic controls and roadway geometry. Development of a new airport will require new roadways and rapid transit that needs coordination and connection with GVMC roadway and transit. • Sector-wide assessment: The sector-wide assessment can be used to gain the maximum benefit from advancing multiple related projects within an area in concert. An example of this assessment is when improvements to a roadway are planned, such as a resurfacing project, checking whether other projects, such as new traffic signal installation and improvement to the stormwater drainage system, are also scheduled. The sector-wide assessment is recommended for two main reasons: 1. It is advisable to identify and prepare smarter water infrastructure projects in the context of a master plan; and 2. System-wide assessment is the first task of master plan preparation. 10. Unsolicited proposals: As a result of the various needs and opportunities from all of the considerations above, unsolicited proposals from the private sector can possibly innovate financing opportunities and generate revenue with no direct expenditure to the 29 government. The Swiss Challenge Approach is another way of selecting candidate 30 Smart City projects from unsolicited proposals submitted by private sector entities (i.e., developers). Once the long list of candidate smart projects is compiled, the proposals can be screened for priority based upon selection criteria. Criteria for screening/evaluating candidate Smart City projects The criteria are designed to assist relevant Urban Local Bodies ULBs and public entities in determining the suitability of delivering infrastructure projects as Smart City projects. The purpose of the screening criteria is (a) to determine whether a given proposed infrastructure project responds to and is consistent with Visakhapatnam’s overarching approach to smart

29 "Swiss Challenge Approach” is when a private sector participant (original project proponent) submits an unsolicited or, suo-motu, proposal and draft contract principles for undertaking a project not already initiated by the government agency or local authority. The government agency or local authority then invites competitive counter proposals in such manner as may be prescribed by the government. The proposal and contract principles of the original project proponent would be made available to any interested applicants; however, proprietary information contained in the original proposal must remain confidential and will not be disclosed. The applicants then have an opportunity to better the original project proponent's proposal. If the government finds one of the competing counter proposals more attractive, then the original project proponent will be given the opportunity to match the competing counter proposal and win the project. In case the original project proponent is not able to match the more attractive and competing counter proposal, the project is awarded to the private sector participant submitting the more attractive competing counter proposal. 30 Per the Andhra Pradesh Infrastructure Development Enabling Act, 2001, the “Unsolicited or Suo-Motu Proposal” means a proposal in respect of a project not already initiated by the government, government agency, or local authority, and which proposal is submitted by any private sector participant to the government agency or local authority in respect of any infrastructure in the state supported by project specifications, technical, commercial and financial viability, and prima facie evidence of the financial and technical ability of such private sector participant to undertake such project with full details of composition of the private sector participant and his financial and business background.

293 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

“ Smart City” infrastructure project screening criteria Alignment with • Does the project contribute to the Green Living aspiration of the vision? Vision Statement • Does the project respond to the preferences and priorities of future project users, including as stated in the Visakhapatnam Smart City Mission Statement and Smart City Challenge Proposal? System awareness • Does the project improve the ability to monitor the performance of systems? and efficiency • Does the project allow detection or prediction of operational problems in a more timely fashion? • Will the project generate technical, financial, economic, or other benefits for other infrastructure systems? • Does the project enable existing fixed assets to apply to more customers or deliver higher value services to existing customers? • Does the project enable delivery of more or higher-quality services at a lower cost or shorter timeframe? Citizen • Does the project provide customers/users with more visibility into service delivery? Participation / • Transparency Does the project enable customers/users to know more quickly/easily location and cost of services? • Does the project enable customers/users to observe/participate in decision-making in service delivery changes? • Does the project support appropriate institutional and financial data transparency? • Will customers/users without Internet access benefit from additional project transparency? Resilience • Does the project support disaster management resilience? • Does the project support existing service delivery and ensure that the current capacity is adequately redundant where appropriate? • Does the project support climate change adaptation and mitigation? • Does the project include the capability to notify the public in the event of change or disruption in services and suggest alternatives for the public to choose from?

General infrastructure project screening criteria

Alignment with • Is the project consistent with sector and urban policies at national and state levels? Policies

294 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Is the project consistent with purposes and needs of GVMC and VUDA? Economic Costs • Do the anticipated economic benefits outweigh the anticipated costs? and Benefits • Will the project strengthen Vizag’s economic competitiveness in key growth sectors? Social Costs and • Do the anticipated social benefits of the project outweigh the anticipated social Benefits cost? • Can mitigation measures be identified for any major negative social impacts? • Does the project respond to the preferences and priorities of future users? • Does the project protect and benefit the vulnerable communities? Environmental • Do the anticipated environmental benefits of the project outweigh the anticipated Costs and Benefits environmental cost? • Can mitigation measures be identified for any major negative environmental impacts? Cash Flow • Is the project anticipated to generate positive cash flow in development costs, operation, and maintenance? • If the project does not generate positive cash flow, is there an identifiable source to fill the financing gap and if so, are public funds required? • What amount of public funds, if applicable, is required to fill the financing gap of the project, and does this ensure that the project is affordable? • Will the project be able to support itself without user fees or subsidies? • Can funding sources and financing be reasonably expected to be obtained? Feasibility • Is the proposed technical solution feasible and sound? • Does the implementing agency have the technical and managerial capacity to develop the project? • Does the implementing agency have the institutional capacity to operate and maintain the project?

295 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

needs. The criteria can also be used to hone a project proposal to improve its future ranking. Once the shortlist of projects for implementation has been identified, those projects each move forward on independent project preparation paths.

296 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project preparation

Role of the Special Purpose Vehicle An SPV was created to plan, appraise, approve, release funds, implement, manage, operate, monitor, and evaluate the Smart City development projects. As such, the SPV will be responsible for procuring and delivering the Smart City projects that provide value for the greater Vishakhapatnam area and will adopt and observe in accordance with the guidelines set forth in this report. The SPV will be a limited company incorporated under the Companies Act of 2013 at the city level. By default, the state government and the ULB will be the promoters of the SPV having 50/50 equity shareholding. The private sector or financial institutions could take equity stake in the SPV provided that: 11. The shareholding pattern of 50/50 of the State Government and the ULB is maintained at all times; and 12. The state government and the ULB together have majority shareholding and control of the SPV. The SPV’s board will be composed of a Chief Executive Officer (CEO) and Functional Directors, as well as representatives of the central government who will be appointed by VUDA, representatives of the state government, representatives of the ULB, and Independent Directors. Procurement will be managed by the Office of Chief Engineer with the support of five Superintendent Engineers. The SPV will be independent and autonomous in its operation and decision-making. The Smart City Mission encourages the state government and the ULB to adopt the following best practices to create an empowered SPV to the extent and as provided under the municipal act: • Delegating the rights and obligations of the municipal council with respect to the Smart City project to the SPV. • Delegating the decision-making powers of the ULB under the municipal act/government rules to the CEO of the SPV. • Delegating the approval or decision-making powers of VUDA/Local Self Government Department/Municipal Administration Department to the Board of Directors of the SPV in which the state and ULB are represented. • Delegating matters that require the approval of the state government to the state-level High Powered Steering Committee (HPSC) for Smart Cities.

297 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

298 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Criteria Considerations

Legislative • Are legislative amendments necessary (for use of public funds, payment mechanism, considerations delivery model, etc.)? • Does new legislation need to be introduced?

Project • Would an alternative delivery model as a Smart City project foster efficiencies over the efficiencies project life cycle costs? • Is there an opportunity to create economies of scale?

299 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Market sounding The SPV can assess market interest by performing a “market sounding” exercise. Widely used “market sounding” methods include inviting Expressions of Interest (EoIs), conducting an industry forum, and conducting one-on-one interviews. However, the SPV may choose to use additional methods to determine market interest based on the specific needs and risks of a particular project. Through an EoI, the SPV will be able to evaluate the market appetite, as well as glean possible ideas regarding the commercial structure or payment mechanism that the market would accept. EoIs may also include public briefings to further discuss elements of the project under consideration. These forums offer opportunities for public comments and private sector input. An industry forum is a conference sponsored by the SPV that allows private entities to gather, ask questions about the project, and begin to form partnerships and teaming arrangements for the bidding process. Risk allocation Before a commercial structure is selected, the SPV needs to identify all the risks associated with the project, in addition to those already identified at the detail-level screening, and allocate these risks among the private entity, the SPV, and GVMC. Individual project characteristics drive the risk allocation strategy. Achieving optimal risk allocation is the key to achieving VfM under an alternative delivery procurement. Risks should be transferred to the party that can manage them best by undertaking effective and cost-efficient risk mitigation strategies. Typically, the public sector retains risks that are government-related, while the private sector retains commercial risks. If neither party is better situated to manage risk, the likely alternative is to share it. The figure below illustrates a possible risk-sharing strategy in a generic form:

Risk allocation

300 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Commercial structure The SPV will identify a commercial structure that brings the most value based on the specific characteristics of the project and the market appetite at that time. Potential alternative commercial structures include but are not limited to: • Construction Manager at Risk (CMAR) The CMAR delivery is similar to the traditional delivery process, except that the risk of cost overrun is transferred to the Construction Manager. The CMAR commits to deliver the project within a guaranteed maximum price and bears the risk of any cost overruns. The CMAR provides professional services and acts as a consultant to the governmental entity in the design development and construction phases. • Design-Build (DB) In the DB procurement model, a single private contractor is responsible for designing and building a project. The design-build contractor assumes responsibility for the majority of the design work and all construction activities, together with the risks associated with providing these services, for a fixed fee. When using design-build delivery, public sector project sponsors usually retain responsibility for financing, operating, and maintaining the project. • Design-Build-Finance (DBF) In a design-build-finance structure, the design-build contractor takes on the additional responsibility of financing the project and is repaid over an agreed-upon period, often upon completion of the project. The public sponsor transfers financing risks to the private sector partner, thereby increasing the incentive for the partner to deliver the project in a timely and cost-effective manner. • Design-Build-Operate-Maintain (DBOM) In this procurement structure, a private entity, usually a consortium of companies, agrees to take on responsibility for designing, building, operating, and maintaining a project for an agreed-upon period. While the public entity retains ownership of the project and must manage the project, the private partner assumes the long-term operations and maintenance (O&M) risks of the project. In this model, the public sponsor retains financial risk and is responsible for financing both the construction of the facility as well as ongoing O&M. • Design-Build-Finance-Operate-Maintain (DBFOM)/concession In this procurement structure, a private entity, usually a consortium of companies, agrees to take responsibility for all aspects of project delivery, from planning and financing through construction, acquisition of assets, and O&M. There is a significant risk transfer to the operator over a long period of time. The payment mechanism may vary, from a fee paid by the public sponsor to tariffs paid by end users. Capital investment is borne by the private entity.

301 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Management contract In a management contract, no new major construction or acquisition of assets is involved, and the private entity is given responsibility to manage and operate the assets in return for a fixed fee. The fee might be subject to performance incentives in the form of a bonus or penalty. The private operator has limited repair and renewal obligations. • Affermage/lease In this structure, the private entity is responsible for O&M. The operator collects the user fees directly from consumers on behalf of the public sponsor and retains a portion as payment. The difference between the user fees and the payment is paid to the public sponsor. The public sponsor retains responsibility for major rehabilitation and new capital works. The private operator usually bears more risk in affermage contracts than in management contracts. The lease structure is similar to affermage, except that the private operator pays the public sponsor a lease payment not dependent on demand and tariffs. • Joint venture In a joint venture structure, the public sponsor creates a new company to operate the asset and usually retains ownership of the company. The private entity is part owner and also enters into a management contract with the newly formed company for full control of day-to-day operations. This model has been successfully implemented in Spain, Portugal, and Latin America and transfers more risks to the private entity than in the above- mentioned O&M and management contracts. All projects are different, and one commercial structure may create value for a certain project but not another; therefore, the SPV may explore additional commercial structures other than those listed above.

302 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

DBFOM / Management Affermage Joint CMAR DB DBF DBOM Concession Contract / Lease Venture

Minimize public contribution

Maximize operational efficiency

Minimize cost of funds

Maximize innovation

Transfer revenue risk

Transfer other risks

Minimize procurement period

Minimize contract length

Meets project goals Partially Meets project goals Does not meet project goals

303 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Value for money analysis Once the Project Development phase activities reach a sufficient level to support more detailed analysis (i.e., technical input refinement, completion of environmental studies if required) the SPV may choose to perform a detailed VfM analysis. The VfM analysis provides both quantitative and qualitative information on the relative value of alternative versus traditional delivery of the project. This VfM analysis tests the value of a project delivered alternatively as a Smart City project (commonly referred to as a Shadow Bid Model) in comparison with the value of a project delivered using a traditional delivery model (commonly referred to as the Public Sector Comparator). This analysis is useful for determining whether it is worth procuring a project under an alternative delivery model. If the use of an alternative delivery model results in a better VfM compared to a traditional project delivery method, then the alternative option delivers an optimum combination of project lifecycle costs and quality that will meet the objectives of the project. The appropriate VfM methodology will vary across modes and payment mechanisms (e.g., the analysis for privately tolled concessions will differ from that for availability payment transactions in which the SPV retains some or all revenue risk). The VfM analysis is only one factor to consider when evaluating which procurement method is optimal. The SPV may move a project forward based on other benefits, such as faster delivery or meeting established affordability limits. For example, a project may not offer clear quantitative benefit in terms of costs or revenue under an alternative delivery model; however, the alternative approach may accelerate project delivery, which benefits the SPV and GVMC by, for example, reducing congestion and stimulating economic growth. At the conclusion of all Project Development phase activities, the SPV will determine whether the project will progress to the Project Implementation phase.

304 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart project procurement

Many entities may implement smart projects. State level agencies and municipalities will have their own standardized processes for preparing and procuring projects. In the case of GVMC, a Special Purpose Vehicle (SPV) has been developed to assist in delivering smart infrastructure. These guidelines focus on the activities of the SPV. Generally, there are two options for the procurement process: one-stage process and two stage process. The one-stage procurement process assumes only a Request for Proposals (RFP), whereas the two-stage approach assumes a Request for Qualifications (RFQ) before the RFP. The choice between the options usually depends on whether the universe of bidders is large, or has little or no experience, and needs to be limited through an RFQ process, or whether the technical solution and scope are clear or the value of the contract is low, in which case there’s no need for an RFQ stage. Regardless of whether the SPV uses a two-stage or one-stage procurement process, submissions received at each stage will be evaluated by the SPV against pre-determined criteria that will produce the desired outcome of the individual project. To the extent that the SPV pursues a two- stage process including a RFQ and RFP, the SPV will review Statements of Qualification (SOQs) received at the RFQ stage to determine a shortlist of bidders based on the criteria set forth in the RFQ. The SPV will issue an RFP to the shortlisted bidders, evaluate the responses to the RFP, and choose a proposer, which will be presented to the Board of Directors for approval. The figure below illustrates flow of the two types of procurement process.

Illustrative flowchart for one-stage and two-stage procurement processes

305 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

306 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Evaluation Criteria – the RFP will specify the factors, criteria, and other information that will be used in evaluating the proposals • Evidence of Financial Responsibility – the RFP will require a statement that a proposal must be accompanied by evidence of financial responsibility as considered appropriate and satisfactory by the SPV If the SPV conducts a one-stage procurement, it will publish a public notice before the RFP is issued. If the SPV conducts a two-phase procurement, then a public notice is not necessary before issuing the draft RFP to shortlisted proposers. The SPV and other appropriate personnel will evaluate responses to the RFP based on established evaluation criteria. The SPV will determine the evaluation criteria for each project and specify those criteria in the RFP. The SPV reserves the right to use a best value to the public approach; a lowest price or cost or the highest payment to, or revenue sharing with the SPV approach; or any other selection process it determines to be in the best interest of the city. The SPV reserves the right to proceed with negotiations with more than one proposer and/or run a Best and Final Offer process, with some or all of the shortlisted proposers. Contract award If the SPV determines that: (a) the proposal meets the evaluation selection criteria and (b) the proposal is in the best interest of the city, the SPV will make a determination of whether the successful proposer should be deemed the operator, and will then submit its decision to the Board of Directors for review and approval. If the Board accepts the determination, then the successful proposer will be designated as the operator for the project, and the SPV may execute the public-private agreement. The SPV reserves the right to modify its request, seek revised proposals, or decline to award a public-private agreement for any reason. In addition, the SPV may withdraw an RFQ or RFP at any time and, at its discretion, publish a new RFQ or RFP. Post-financial close The financial close is just the beginning. The project will last for many years, and the ongoing monitoring and interaction with the private operator is essential to having a successful project, especially when performance requirements are involved in the signed contracts. The relevant ULB will be responsible for coordinating the implementation of the Public-Private Partnership project, and the SPV will serve as a resource to the ULB for any commercial or contract management issues that may arise during the project development, design, construction, finance, and operations and maintenance phases.

307 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Task 5. Action Planning for Two Smart City Projects

308 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam

Task 5: Action Planning for Two Smart City Projects

September 26, 2016

309 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Table of Contents

1. Introduction and Background………………………………………………………...... 311 2. Connect Vizag………………………………………………………...... 315 3. Smart Skill Vizag……………………………………………………………………….330

310 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

1. Introduction and Background

• Phase I: Baseline, Smart City Development Strategy and Action Planning for Two Smart City Projects (March 2016 – August 2016) • Phase II: Preparation of the Smart City Master Plan (September 2016 – January 2017) • Phase III: Implementation Plan and Feasibility Studies for Four Smart City Projects (February 2017 – June 2017)

Phase I, contracted on 12 February 2016, includes six tasks: • Task 1. Defining Visakhapatnam Smart City Vision • Task 2. Review and Analysis of Existing Conditions and Corresponding Best Practices • Task 3. Strategic Planning for Regulatory and Infrastructure Framework • Task 4. Sector-Specific Strategies • Task 5. Action Planning for Two Smart City Projects • Task 6. Interim Report

This report is submitted in satisfaction of the requirements of Task 5, Action Planning for Two Smart Projects.

Project management and technical sector leadership from AECOM, IBM and KPMG conducted Mission 3 in Visakhapatnam from 19-26 July, 2016 to discuss progress on Phase I tasks with planning and infrastructure stakeholders, and to further coordinate and refine deliverables.

During this time, the consulting team met with infrastructure and planning managers within GVMC and municipal leaders from the VUDA region to review and discuss vision materials; review and discuss the energy, water and mobility sector strategies and project guidelines; to develop and review a candidate projects list and to select two candidate projects for detailed planning.

As discussed in task 4, Sector Specific Strategies, Smart Project ideas can come from multiple sources and decision makers at the Municipal, District, Region, State and Central government levels must be able to define and differentiate “Smart” projects from traditional infrastructure approaches in order to optimize delivery. The key characteristics that separate the two approaches are as follows:

311 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Traditional infrastructure approach: First assess peak demand and then build new distinct basic service infrastructures scaled to that demand.

Smart city infrastructure approach: Use data to improve decision-making and maximize efficiency of both existing and proposed systems. People-centric “smart systems” monitor flows, manage demand and generate co-benefits in order to accelerate delivery of basic services.

Using these characteristics of Smart City projects, decision-makers can define a long list of solicited and unsolicited smart projects that can be prioritized for implementation in the Project Identification phase and developed in greater detail in Project Preparation.

As described in the below figure, smart projects were defined, identified, and prepared for consideration. The AECOM team coordinated and refined the deliverables under Task 5, Action Planning for Two Smart City Projects, through an iterative process involving GVMC, VUDA and infrastructure providers. The team built upon the Visakhapatnam Smart City vision to develop candidate projects within the energy, water, mobility sectors and cross-cutting platforms. Implementation project criteria were used to evaluate and refine each project consistent with the vision, government policies, and needs of the GVMC and VUDA areas. The action plans take into account anticipated economic and social benefits and costs, environmental benefits and costs, resiliency, as well as project feasibility, financing, and operations and management considerations.

The AECOM team also met with VUDA consultants to coordinate project efforts going forward into Phase II. The AECOM team presented the Phase I vision documents and a summary of work completed work to-date and participated in discussions of the other ongoing projects. The AECOM team participated in a discussion with municipal and panchayat leaders from throughout the Visakhapatnam Metropolitan Region to discuss the work to date and expectations for Phase II. Participants shared and received insight into infrastructural and governance concerns throughout the VUDA region. Materials associated with each of the meetings held on 22 July 2016 can be found in the annexures.

312 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Figure 1: Smart projects definition, identification, and preparation

313 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Two projects were ultimately selected for detailed planning based on discussion with stakeholders: “Connect Vizag” and “Smart Skill Vizag.”

“Connect Vizag” — This transportation project will include implementation of an information system, signal prioritization, ‘smart’ bus stops and an application (app) providing for real-time information for buses along prominent corridors. GPS bus transmitters currently scheduled to be installed on 110 buses would be used in conjunction with Passenger Information Displays on buses and at bus stops along selected roadways to provide real-time information about wait time for buses and bus delays to passengers at bus stops and using smart phone apps. In addition, the transmitters on the buses would be used to provide green signals to buses approaching intersections, speeding up bus travel and reliability.

“Smart Skill Vizag” — The project will promote training roadmaps and predictive workforce demand analytics for major industries/sectors and socio-economic communities through a virtual platform, in-person “Vizag One Centre,” and through regional outreach and training programs. The platform will connect to a database already developed by the Central Government, opening new access to training pathways, programs and facilities.

314 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Action Plan for Smart Infrastructure Project

Project name: Connect Vizag Information System Sector: Transportation

Implementing agency: GVMC Cost: 11.2 million USD

315 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

1. Project Summary

Implementation of a public transportation information system, including signal prioritization, ‘smart’ bus stops, and an application (app) for real-time information on buses along prominent corridors. GPS bus transmitters currently scheduled to be installed on 110 buses would be used in conjunction with Passenger Information Displays on buses and at bus stops along selected roadways to provide real-time information about wait time for buses and bus delays to passengers at bus stops and using smart phone apps. In addition, the transmitters on the buses would be used to provide green signals to buses approaching intersections, speeding up bus travel and reliability.

2. Project Background and Justification

The city of Visakhapatnam has a vibrant economy based on heavy industry (Steel & Chemicals), tourism and the emerging IT industries. The downtown and outer area of the city have been experiencing increased growth, resulting additional commuting to work as well as travel to shopping areas. While Vizagites travel using a broad range of transportation modes (private cars, 2-wheel vehicles, auto-rickshaws, public buses and private buses), private auto and 2-wheel traffic is increasing and is forecasted to increase significantly more by 2030.

Along these heavily traveled routes, congestion for all modes of traffic including transit buses is common. These delays often leave bus passengers at bus stations waiting without any information as to the time of the next bus, the cause of the delay, or potential alternatives in the case of suspended service or extensive delay. Equally important, many potential passengers do not take bus transit because of the lack of information related to bus delay or schedule problems. Improving the transparency of information for passengers, at bus stations, waiting for bus as well as providing advance information to potential riders before leaving their home/place of work will improve the passenger’s trip and increase potential ridership by knowing in advance that the bus is operating on schedule. In times of emergency the information system would provide vital information to people on the availability of buses and routes that are operating.

Typical components of integrated transport management system include:

• Intelligent Transit system to predict ETA, program to calculate speed, time to next bus station and travel times. This module will have details of All Bus Routes, stops, Driver details, will receive information from central server about GPS position of the bus real time and capable of calculating ETA for next stop • Passenger Information System (to manage display units/VMS inside buses and on bus stops). This will take inputs from intelligent transit system and manage the content on the displays on the bus stops and in the bus. • Central Control/ Command System (integrated with PID, and to control Traffic Signals, override of automatic barriers). This will get the feed from transit system and map it to GIS

316 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

maps and display it on the video wall of command center. This will also allow the command center respondent to override Traffic signals and Automatic Barriers. • Transit Signal Priority Control. This would allow preferential treatments for high-occupancy transit vehicles to improve their operations by calculating green extension and early green strategies based on the current distance from signal. • SMS/ Manual key-in support. In case PID in buses and bus stops are no longer connected via wired/ wireless data network, this would allow command center to update information based on SMS feed and manual key-in. • Incident Management System. This should allow incident reporting, response, re-routing thorough two way communication between driver and command center. Specific information on bus movements would also be used by the traffic police and the bus operators to provide transit signal priority at signalized intersections to speed the buses along ahead of other traffic, especially along those routes that already have separated Bus Rapid Transit lanes implemented.

3. Project Location

At the current time three locations have been identified for the initial implementation:

• Route 39 between Route 38 (Pendurthi-Anandapuram Road) and Route N-5 (Port Main Road. • Route N-5 (N-16) between the Vizag Airport and Mudasarlova Road. • Beach Road Town Hall Street and Tenneti Beach.

The Route 39 alignment was identified since it has currently dedicate bus lanes and bus stations and would benefit from the informational system and additional traffic signal improvements linked to bus GPS transmitters on the buses. In addition, it is a well-used arterial roadway with significant bus ridership as noted in the field.

The N-5/N-16 alignment is a major truck and vehicle route with significant bus traffic along it. Traffic delays are common as is the buses being caught in the traffic congestion and tend to run behind schedule. The implementation of the Connect Vizag Information System (CVIS) bus information system and the smart traffic signals will build on previous traffic signal installations under way and provide transparency to bus passengers.

317 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The Beach Road roadway is currently the focus of smart city improvements which include retrofitting existing buses with GPS transmitters for operation in conjunction with new smart signals being installed. The implementation of the CVIS including additional smart traffic signals and TSP phases in all the existing and new “smart” traffic signals would be building on the smart city initiatives already started.

318 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

While each of the three project should be implemented, we suggest that the Route 39 Alignment be done initially; the roadway currently has dedicated bus lanes and bus stations with bus shelters which could be quickly retrofits to include the information systems and with the Transit Signal Priority phase in each signal would be part of the information system that would maximize the work already implemented under the BRT program.

This implementation should be followed with the implementation of the CVIS along the Beach Road corridor and the N-5/N-16 Alignment.

Figure 1 presents a map of each of the recommended routes and limits for initial implementation.

Figure 1 – Map of Proposed Routes for Implementation

319 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

4. Project Description

This project includes a bus information system, signal prioritization, ‘smart’ bus stops and a web- based / mobile application (app) providing for real-time information about buses along prominent corridors.

The components of the project are as follows:

• New traffic signals with Traffic Signal Priority (TSP) capability for buses and emergency vehicles. Active TSP techniques detect transit vehicles as they approach intersections and adjust signal timing dynamically to improve service for the transit or emergency vehicles. Preferential treatment can improve operations for high-occupancy transit vehicles. Green extension and early green strategies have been implemented with successful results globally.

• Bus mounted transmitters (vehicle on-board units) for GPS/ GPRS identification for real-time location tracking. The tracking mechanism shall primarily use bus-mounted GPS devices as the source for geolocation tracking data. The device should have two-way communication capabilities and will transmit data to the central intelligent transit system via cellular data or city-wide mesh Wi-Fi, if available.

• Multi Lingual Passenger Information Displays (PIDs) will be supplied at all bus stops along designated routes with information on the estimated time of arrival (ETA) of bus, route, delays and schedules. Bus stop and terminal display systems shall display real-time route and ETA information using fixed data connections/mobile data connections with the Passenger Information System

• Multi-lingual (Telugu, English, Hindi) PID on the bus for route display and inside the bus for next stop. Bus display units on front wind shields and rear windows shall display bus route information. The internal display shall convey real-time information on upcoming station arrival, preferably by displaying real-time bus positioning on a transit line diagram. The voice information system shall also derive approaching station information based on GPS unit- derived location and shall be capable of playing pre-recorded voice information in the bus for greater accessibility.

• Citizen Web/Mobile Apps display providing Passenger information. The Connect Vizag web portal / app on iOS and Android shall enable passengers to obtain bus route schedules and shall also deliver an ETA based on real time data from the intelligent transit system. The web portal shall also provide facility to passengers to plan travel itineraries to their desired destination.

• Solar Cells to power Bus Stop PIDs and lights

• Automatic barriers for BRT routes for exclusive access for buses. The barrier would consist of railroad-type crossbars that can be raised by a remote signal from a bus approaching the gate in order to prevent access by unauthorized vehicles into the dedicated bus roadway.

320 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

The current program to install GPS transmitters in existing buses would be used to implement the Connect Vizag system with the retrofitted buses assigned to the specific Connect Vizag route(s). To the extent that a sufficient number of buses are not being retrofitted, additional buses would require GPS transmitter retrofits. All buses with GPS transmitters would also be fitted with interior passenger information displays.

Specific information to be provided at the bus station would include:

• Time to next bus, and if more than one route, the times for the next bus by route.

• Indicate delays in minutes for the next bus, by route.

• Identify current time.

• Indicate Emergency Information in case of natural or man-made emergencies such as typhoons, or major accident on route.

• Provide opportunity for advertising.

Specific information to be provided on smart phone apps would include all of the above, as well as possible alternative buses routes in the case of major delays.

On-board the bus, the passenger information displays would indicate the next bus stop, time to the next stop and any delays along the route of the bus. In emergency situations, the display would provide information to riders, information from the on-board bus GPS would provide information to both the traffic and GVMC Command Centers as to the location of individual buses. Smart Traffic Signals would provide data to the traffic command center on traffic congestion at intersections, and whether the signals are operating properly. The command center would also be able to revise signal timing if required.

Two pathways can provide connectivity between the bus GPS system: arrival analytics and conveyance to on-board and bus stop display systems. In the short-term, bus routing and estimated arrival time information can be conveyed via Cisco Fibernet to IP-addressable displays at bus stops. While bus locations are conveyed via GPS, Inrix real-time crowd-sourced traffic data can provide more accurate arrival estimations to static bus stop locations. Google or Microsoft-based traffic projections provide less-refined projections, but can be used in lieu of the Inrix systems to lower costs. Over the longer term, the bus geolocation and arrival projections can be conveyed to IP-addressable display systems via city-wide mesh wifi.

321 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Figure 2 – Typical Passenger Information Displays

PID Mounted within a Bus Shelter

Freestanding PID mounted on a pole at Bus Stop

322 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Passenger Information Display incorporated into the Bus Stop sign

Passenger Information Display and Separate Advertisement Panel

323 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Figure 3 – Typical Solar Powered Bus Stop Installations

Solar Panels on Roof of Shelter

Solar Panels on top of Passenger Information Display – Powers the display

324 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Solar Panels under Translucent Canopy

Figure 4 – Bus Mounted Interior Passenger Displays

1.1.1.1.1 Passenger Information Display on Bus – Displays Next Stop and Time

5. Anticipated Project Benefits

In terms of transportation-related benefits, this project is anticipated to:

• Address lack of information available to passengers on bus trips; would provide vital information before people leave home in the morning and attract new riders to the service; 325 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Improve travel time predictability and reliability;

• Improve transit travel time and reliability for all citizens; utilizes the existing separate dedicated bus lanes along Route 39 in conjunction with the smart signals and GPS to provide a faster ride and provides information to passengers on the travel time and reliability of the trip;

• Enable resiliency and reliability by providing vital information to bus passengers during times of natural emergencies, such as typhoons, regarding the bus service and alternate routes if necessary, both at the bus stop and prior to leaving their homes or places of work;

• Add connectivity benefit to all market sectors by providing economic benefit to workers and employees by reducing uncertainty regarding journey to work and lost hours of productivity by not knowing in advance of transit delays and alternative transit options.

Income generated from advertising could be another benefit of the project. This includes revenue from advertisements located in the buses and revenue from advertisements at the bus stops. Advertisements can be flashed on the same screens that provide bus information to passengers. Similarly, advertisements could accompany information provided to passengers via the use of smart phones.

6. Business Model and Financing Strategy

The project owner / sponsor can consider several potential options, listed below, to partially or fully finance the proposed project of implementation of an information system, signal prioritization, ‘smart’ bus stops and web-based / mobile application (app) providing for real- time information for buses along prominent corridors.

• Monetizing the outdoor advertisement potential at smart bus stops, traffic signals and if possible on the buses itself.

• Commercial utilization of vacant land resources near bus stops.

• Commercial sponsorship for the smart bus stop(s) – i.e., this bus stop is sponsored by “XYZ Company”.

• Levy of dedicated taxes (e.g. betterment levy on land owners) or increase in user charges by nominal value. Consideration should be given to link any future revenue sources generated through these alternative financing options to the existing urban transport fund, which can be used exclusively to finance the envisaged urban transport projects. Considering that the proposed project is of a pilot nature, potential revenue generation cannot be easily estimated at this early stage. If a project owner / sponsor moves forward with project implementation, additional market analysis will be required. From the procurement 326 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

perspective, the project owner / sponsor will have project procurement options available using traditional or alternative procurement delivery methods; however, from the perspectives of commercial and financial viability, it is highly probable that capital subsidies will be required to attract private sector partners. Upon market analysis completion, more information would be available in terms of the level of potential subsidy and sources of financing such a subsidy (i.e., through a general fund, a grant from the GoAP, grants from other bi-lateral and multi-lateral donor agencies, etc.). Revenues generated from advertisement, sponsorships, etc. can be applied to cover remaining operations and maintenance costs.

7. Institutional Arrangements for Project Implementation

The project owner / sponsor could explore the option of implementing the proposed project through PPP mode; however, taking into account the size, complexity and moderate level of capital investment required, the proposed project may not attract the level of interest typical for a large scale transportation project. However, the project owner / sponsor could conduct a high-level financial viability and market interest for the proposed project to determine whether the proposed project can be successfully delivered using the Public-Private Partnership (PPP) arrangement. If the scale of the proposed project can be expanded to cover more corridors / routes in the near future, it could generate interest from the private sector participants. Key government stakeholders will be GVMC and AP State Road Transport Corporation. • Role of Private Sector: Design, finance, implementation, operation and maintenance, collection of revenues from pre-determined revenues streams like advertising, etc. • Role of Public Sector: Provide ROW, approval of designs and implementation plan prepared by private entity, Setting minimum performance standards / output parameters for the private entity and monitoring compliance. Payment of annuity fee (if required). A Detailed Project Report / Business Case can be used by the project owner / sponsor to assess project financial performance. The project delivery / procurement method is less dependent upon project financial performance than on the risk transfer methods sought by the project owner / sponsor, or the types of private sector expertise being considered towards cost reductions and efficiency improvements.

Public buses in Vizag are operated by the Andhra Pradesh State Road Transport Commission (APSRTC). The Special Purpose Vehicle could be designated as the implementing entity on behalf of APSRTC and GVMC.

327 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

8. Cost Estimate and Implementation Schedule (US$)

The conceptual capital and operation and maintenance cost estimates developed for the Route 39 implementation is based upon the following assumptions. These assumptions should be refined in future as detailed designs are developed.

Assumptions:

• 50 bus stops will be equipped with Passenger Information Displays (25 in each direction of travel). • All stops will be equipped with solar panels and battery system to power the passenger information displays (PIDs) and for internal light of bus shelters where applicable. • 40% or 20 of the bus stops are assumed to be existing BRT stops and the existing shelters will be used for placement of the solar panels and the PIDs in the shelter. • The remaining 30 bus stops are assumed to require some mounting for the solar panels and the PID, and a new bus shelter is assumed – subject to detail field audit. • 20 intersections to be equipped with smart traffic signals including camera enforcement on each of the intersection approaches and vehicle detection/counting equipment. • Approximately 20 railroad type crossing “arms” will be assumed for protection of the current dedicated bus lanes in place and associated equipment for automatic raising and lowering at buses approach. • Current 110 buses to be equipped with GPS detectors (based upon current Vizag plans) to be used to relay information to signals and PIDs • 220 PIDs to be installed (2 per bus) on interior to inform passengers of next bus stop, time to next bus and of delays as well as potentially having advertising. • Software for App development of PID information for phones to be developed. • Wired connection from each traffic signal to Police and GVMC Command Centers. • Capital cost contingency assumed to be 30% of capital costs for this estimate. As estimate is refined by refinement of the design and specification of specific equipment contingency to be lowered appropriately. • Costs associated with assisting in the initial procurement are estimate at 4% of capital cost estimate.

Year 1 (By Quarter) Year 2 (By Quarter) Total (USD) Component 1 2 3 4 5 6 7 8 Preparation 216,854 216,854 Procurement 289,138 289,138 Civil Works 144,569 144,569 Systems Work 7,228,462 7,228,462 System Testing 72,285 72,285 Supervision 361,423 361,423 O& M 722,846 722,846

328 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Sub-total 9,035,577 Contingency (30% 2,168,538 of System Work) Total 11,204,115

9. Action Plan

Action Responsible Party Start Date End Date

Authorize Project Preparation GVMC Commissioner Notice to Proceed

Organize and Hold Project Planning Meetings GVMC / APSRTC NTP Month 1 Project Owner / GVMC / Confirm Project Route and Boundaries NTP Month 1 APSRTC Project Owner / GVMC / Confirm Bus Stop Locations and Needs Month 1 Month 2 APSRTC Develop Concept Drawings Project Owner Month 2 Month 5

Develop Specifications for Equipment Project Owner Month 3 Month 4

Review and Approval of Drawings and Specifications GVMC / APSRTC Month 5 Month 6 Project Owner / GVMC / Develop Financial Instruments Month 4 Month 5 APSRTC Define Procurement Method GVMC / APSRTC Month 5 Month 5

Prepare Procurement Documents Project Owner Month 5 Month 6 Approval of Finance & Procurement Method SPV Staff Month 6 Month 7 and Documentation Letting of Contracts SPV Month 8 Month 12

Construction/Installation Project Owner Month 13 Month 23

Systems Completion & Testing Project Owner Month 16 Month 24

O& M Staff Training and Operation GVMC/APSRTC Month 23 Month 24

329 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Action Plan for Smart Infrastructure Project

Project name: Smart Skill Vizag Sector: Economic Development

Implementing agency: Government of Cost: 9.6 – 11.5 million USD

Andhra Pradesh

1. Project Summary

Smart Skill Vizag provides training roadmaps and predictive workforce demand analytics for major industries/sectors and socio-economic communities through a virtual platform, in-person “Vizag One Centre,” and through regional outreach and training programs.

2. Project background and justification

In a representative household survey carried out from May-July 2016, Vizagites expressed that increased skills and additional higher-skilled employment opportunities were the leading priorities in the VUDA region. Residents desire better access to education, skills development, and technology training in order to reach these goals. The potential for improvement is great, as the survey found 14.5 % of households to be illiterate, 44.3% of heads of households have not attained ‘10th standard pass’ status, and only the VUDA (including GVMC) region has a mean expenditure-to-income ratio of 87.5 %.

To leverage Andhra Pradesh’s demographic growth and drive economic development, young women and men will need training and gainful employment in the coming years. A number of Government of India (GOI) and Government of Andhra Pradesh (GOAP) initiatives have been launched to enhance local training capacity and to provide financial for enrolment into skill development programs and to improve employability. However, due to lack of effective counselling facilities, it remains very difficult for people – especially those growing up in rural areas across Andhra Pradesh – to get easy access to comprehensive information, understand the variety of opportunities that exist with respect to roles, training programs and jobs, and to determine the specific actions required to meet their personal career aspirations. As a result, these people may end up making various sub-optimal training and career choices or continue to take up low-skilled jobs mostly in non-state regulated sectors. The absence of a large

330 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

and highly skilled workforce can slow or even derail Andhra Pradesh’s economic development and the demographic dividend can over time, turn into a burden.

Vizag’s workforce of tomorrow is posited to lead growth in key economic sectors; incubate entrepreneurship in the region; support the operations, maintenance and expansion of the region’s smart infrastructure systems; and add value and market competitiveness for lower-income workers. Most workers would benefit from personalized skills development and career guidance that is based on deep insights drawn from real market data, and personalized to the needs, interests and constraints of each individual.

3. Project Location

Skill development counselling is provided through multiple modes: an online virtual platform with web- and app-based interfaces for internet users, the in-person “Vizag One Centre” for local residents, through existing training institutions, and through outreach programs that extend awareness and access to training modules to peripheral and isolated communities.

4. Project Description

Smart Skill Vizag provides training roadmaps, information, and access to training for workers and predictive workforce demand analytics for major industry/sector organizations through the virtual platform, in-person “Vizag One Centre,” and regional outreach programs.

Smart Skill Vizag enhances training capacity by supporting residents to enroll in skill development programs to increase their value in the labor force; to attract, retain and absorb skilled workers in the region; to link individuals and partner educational institutions and industry across sectors to further develop supply and demand chains; to support employment across sectors and socio-economic communities, including the vulnerable.

Other key stakeholders such as government agencies/policy makers, industry bodies, financial institutions, content providers, training and certification agencies, employers etc. will derive value from insights on skill availability, skill demand, training quality, in the region so that investments can be suitably channelized and the effectiveness of the overall ecosystem can be monitored and optimized with time.

331 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Platform – Virtual: The Smart Skill Vizag virtual platform consists of interactive web-based and app-based portals for free self-service access. The virtual platform leverages natural language processing techniques on unstructured data and advanced matching algorithms to link user datasets with National Skills Qualifications Framework (NSQF) training pathways, training opportunities, and job postings.

The virtual platform’s data processing toolkit should include these capacities:

• Concept Insights: offers a set of services that enable users to do content recommendation and exploration. For instance, Concept Insights will recommend related documents by recognizing high level concepts within documents uploaded by employers. The service can help organizations find skilled staff for specific jobs and projects.

• Personality Insights: extracts and analyzes a spectrum of personality attributes from a body of text (3500 word minimum) to discover actionable insights about people and entities in order to guide end users to highly personalized interactions.

• Trade Off Analytics: helps users make decisions when balancing multiple objectives using the “Pareto Optimization” filtering technique, enabling users to examine tradeoffs when considering multiple criteria for a single decision.

• Natural Language Classifier: interprets the intent within a short body of English- language text (1000 characters or less) and returns corresponding classifications with associated confidence levels. The service can be trained to function within any domain or application.

• Statistical Package for the Social Sciences (SPSS): used by an application to communicate the accuracy, confidence, or other qualitative evaluation of a trained predictive model as designed. SPSS is useful in predicting job types per skill for considered industries.

• Document Conversion: provides an Application Programming Interface (API) to enable developers to transform a document into other formats. The input of a single PDF, DOCX, or HTML document translates into outputs as HTML or text documents, or as answer units to be used with other API services.

The virtual platform is coded in English and will integrate Telugu and Hindi language interface compatibility in the longer term. The virtual platform tailors training roadmaps for all industries (with emphasis possible on target market sectors), connects with academic institutions and training providers, and supports Visakhapatnam-based job listings.

332 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Platform – Vizag One Centre: The Vizag One Centre is a physical site within the GVMC that provides free in-person job, career, and training counseling. The centre tailors training roadmaps for all industries, with an emphasis on target market sectors; connects users with academic institutions and training providers; and lists Visakhapatnam-based job listings.

Platform – Outreach: Packaged training modules and teams work with peripheral, isolated, or otherwise marginalized communities to support tailored in-situ skills development programs. The programs rely upon visual materials with Telugu, Oriya, Tamil, Hindi, and English language support for use by resident and migrant workers, self-help groups (SHGs), non-governmental organizations (NGOs), community-based organizations (CBOs), and panchayats to connect their peripheral or isolated communities with desired educational and training programs through Smart Skill Vizag’s portals. While many outreach programs are designed in accordance with funder mandates, others can be designed, facilitated, and led by constituents of the targeted communities as well, such as programs by the Self Employed Women’s Association.

Training Sites: Skills development training is delivered through the existing facilities od local academic institutions, and public and private training providers throughout the GVMC and VUSA areas. When paired with public programs and existing public subsidies, Smart Skill Vizag extends and incentives innovation towards more effective access to training access through private investment in training delivery within the region.

333 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Users: The virtual platform, Vizag One Centre, and outreach programs are designed to serve the range of workers in the greater Visakhapatnam area. These workers are categorized into four broad user types:

User Type One: workers (31.6% of surveyed heads of households) with English literacy and graduate and post-graduate educational attainment who can already secure knowledge-based employment within key economic growth sectors of pharmaceuticals, logistics, health and wellness, digital / IT, and tourism within the Visakhapatnam region.

User Type Two: workers (20+% surveyed heads of households) with English literacy and 10th/12th standard educational attainment who are at the threshold of accessing technical careers within key economic growth sectors of pharmaceuticals, logistics, health and wellness, digital / IT, and tourism within the Visakhapatnam region.

User Type Three: workers who are currently illiterate (14.5% of surveyed families) and without 10th/12th standard educational attainment but having high threshold access to municipal transport and high access to ICT infrastructure services.

User Type Four: workers (14.5% of surveyed families) who are illiterate without 10th/12th standard educational attainment and not having low threshold access to municipal transport and low access to ICT infrastructure services.

Platforms are designed to extend access the four user type categories:

User Type User Type User Type User Type

One Two Three Four

Virtual platform X X X

Vizag One Centre X X X

Outreach programs X X

334 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Expansion Potential: The virtual platform can integrate structural modifications in the natural language processing techniques for higher-complexity Telugu language support.

Over time, additional connections can be fostered with venture capitalists to encourage idea generation, entrepreneurship, and business incubation within Vizag. This innovation hub can provide online mentorship and community and matchmaking between Vizag-based entrepreneurship mentoring and venture capital assets with universities to attract skilled entrepreneurs to build businesses in Vizag. An innovation hub supports business development and incubation through launch and aligns with the Digital India and Startup India policy agendas.

5. Anticipated Project Benefits

The project will benefit all market sectors and position Vizag for economic growth by accelerating skills development and attracting and retaining a highly skill-diverse workforce. A more skillful workforce in Visakhapatnam will be more capable of securing more sustainable, higher-income livelihoods and will increase the purchasing power and disposable income of individuals for use within the region.

6. Business Model and Financing Strategy

The implementing agency can utilize multiple funding sources depending on platform and organization type. Some sources are identified in the table below. Capital investments will be required to initiate the three platforms, with partnerships needed in developing and delivering training programs to all four user types. Once operational, the virtual platform may be able to operate through advertising revenue structured through public private partnerships. The Vizag One Centre and outreach programs are unlikely to generate positive cash flow and will likely require subsidization based upon anticipated economic benefits. The financing of skills development training will depend upon a worker’s ability to pay and interest, as well as on employer’s need and ability to invest in anticipated benefits.

Contribution by platform and organizational type:

Organizational Virtual Vizag One Outreach Training Type Platform Centre programs

Government of GOAP Digital India, India and investment, Digital India, MEPMA, NSDC, MEPMA, Government of MSME MSME, NSDC, Skill India, GOAP MSME, NSDC Andhra programs, Startup India investment Pradesh NSDC GVMC and Facilities, Subsidies or contracting for

VUDA staffing, training existing staff; pre- or

335 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

programs post-training reimbursements Venue for Tuition based training; pre- or Educational training post-training employer institutions programs reimbursements Venue for Foundation / Foundation / grant-based NGOs training grant-based funding programs funding Self-help Full-service organizations delivery Full-service delivery including

and other including self- self-funding CBOs funding Expertise Expertise under through MSDE Digital India; Expertise through contract PPP, Sector Skill MSDE Sector Skill Councils; through MSDE Private entities advertising Councils; funding through MSME and Sector Skill revenue funding through Startup India; training provider councils; PPP MSME and and employer tariffs (CSR) Startup India

In addition to these identified funding sources, the project sponsor/owner should:

• Explore the feasibility of leveraging assistance from various industry groups and education institutions; • Explore the feasibility of marketing the data/information (user group, their education, career interest, location, etc.) generated to prospective employers who are interested in locating their businesses in the GVMC area; • Explore the feasibility of “advertisements” within the virtual platform – i.e., banner tags, for web and mobile apps; • Explore the feasibility of seeking “sponsorship” for the platform – i.e., “this information is brought to you by Rotary Club of GVMC.”

Operations and maintenance costs can be reduced by integrating existing land, building, training programs and provider information assets, as well as through outreach partnerships. Costs can be offset by assigning training information and job listing responsibilities to training providers and employers, and integrating available data from training provider portals into Smart Skill Vizag platforms via “push” and “pull” content transfer methods.

336 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

7. Institutional Arrangements for Project Implementation

Implementation of the three Smart Skill Vizag platforms and training will create an environment in which public and private sector entities share phased responsibility to ensure long-term effectiveness of skills development, advisement, training, and market absorption for residents. Government agencies should develop the virtual platform through launch, after which leasing models can be explored with private entities to generate operational revenue. As they are likely to not be self-financing, the Vizag One Centre and outreach programs can seek financial and in-kind contributions from government agencies, NGOs and companies that emphasize corporate social responsibility (CSR). Operations and maintenance of the Vizag One Centre, training delivery, and outreach can be contracted to private entities, non-governmental bodies, and collectives.

Initial project management, development and launch must be guided by the public sector. However, once the project’s capabilities are established and commercial benefits are evident and sustainable, the public sector project sponsor/owner can invite private sector actors to assume responsibilities for content development, coordination, operations and maintenance, etc. Coordination between various governmental, educational, private, and community bodies should be administered jointly by the GVMC and SPV in order to gather insights into the functional and business requirements for the Virtual Platform, Vizag One Centre and Outreach components of Smart Skill Vizag. A project implementation vendor, once on-board, can further validate these requirements by working with various stakeholders.

Existing portals and resources developed by universities can also be pulled for use within the Smart Skill Vizag virtual platform. This method also encourages greater private sector participation by increasing the number of website “hits” and by securing trainees and employees by explicitly sharing profiles on the desired training of candidates. With oversight, training providers can adapt their programs to meet the certification requirements of NSQF pathways. Employers can also partner with training providers to reimburse training tuition and guarantee employment for residents meeting specific NSQF qualifications.

8. Cost Estimate and Implementation Schedule (US$)

Virtual Platform: Cost estimation for the virtual platform assumes the below annual averages:

• 18,350 average number of users per month in the system, with each individual accessing the virtual platform fifteen times for search functions, and twice to update their profile and curriculum vitae; • 10,000 candidates access the system each month, with 50% remaining in the system for the following month;

337 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

• Half of all candidates will seek skills gap analyses and will include 1 batch prediction per industry; • Three industries, of eight total, are targeted for an individual; • Employers will enter 3,000 jobs into the system per month, with 50% of jobs remaining in the system in each following month; • Application program interfaces (APIs) considered: Concept Insights, Personality Insights, Tradeoff Analytics, Natural Language Classifier English, Statistical Package for the Social Sciences (SPSS), and Document Conversion.

Design & Development Assumptions Low Medium High Total

App Use Cases 5 10 5 20

App Pages / Views / Wireframes 7 0 1 8

API/Service Calls 3 5 2 10

Onetime Year Year Year Year Year Capex 1(US$) 2(US$) 3(US$) 4(US$) 5(US$) (US$)

Mobile App using Hybrid App Dev’t 540000 (Android + iOS )

O&M at 5% of Total Cost every year (5 to 10% at avg, took lower 25000 25000 25000 25000 25000 interval as several components used as service)

Monthly Cost for APIs, Runtime & Database 300000 300000 300000 300000 300000 Services aggregated year wise

5 Year Cost (US$) 2,165,000

Contingency @ 50% 1,082,500

Total (US$) 3,247,500

338 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

% Distribution of App Development Cost

Application Requirement (%) 5.50

User Experience Design (%) 13.74

Application Design (%) 6.87

Application Development (%) 28.29

Application Testing (%) 16.19

Deployment (%) 3.90

Content Development (%) 2.38

2 Form Factors and 2 mobile platforms (%) 10.10

Project Management (%) 13.03

Vizag One Centre: Cost estimation for the Vizag One Centre assumes the below annual averages:

• 500 person capacity at the Vizag One Centre training facility; • 80 square feet of built up area (BUA) is required for each trainee; • Administrative staff will consist of 5% of the training capacity and 250 square feet BUA is required for each administrative staff member; • Circulation space accounts for 15% of BUA when above 2 storeys • The total BUA is between 2 and 4 storeys with a Floor Area Ratio (also Floor Space Index) of 1.25 with 50% ground coverage; • Construction of civil engineering, structure, and finishes will cost between INR 3000 to INR 4000 per square foot; • Site-wide infrastructure (all infrastructures included) will cost approximately INR 2.5 crores per acre; • High quality landscape costs are estimated to be INR 80 lakh per acre.

339 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Design and Development Assumptions

Building

Square Number Square Acres INR cost low INR cost high feet per of people feet total total estimate estimate person

Users 500 200 100000

Administrative 25 80 2000 Staff

Circulation 16000

Total Space 118000 354000000 472000000

Floor Area Ratio 1.25

Site

Land parcel 94400 2.17

Site-wide 54250000 54250000 infrastructure

Site landscape 868000 868000

Total costs (INR) 409118000 527118000

Total costs (INR crores) 40.9118 52.7118

Total costs (US$) 6199000 7987000

Outreach: Outreach programs can be funded and delivered by public sector, private sector, and community-based organizations and their varied internal training design, funding, and delivery processes. As outreach programs are determined through audience-specific coordination, the project sponsor/owner should allocate an initial fund of no less than a range of US$ 135,000 – 270,000.

340 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

9. Action Plan

Virtual Platform

Action Responsible Party Start Date End Date

Authorize project preparation CM’s office Notice to Proceed

Contract and implement feasibility GoAP NTP Month 6 study, including community research

Enter into MOU with relevant GoAP Month 5 Month 8 national and state programs

Contract IT system architect GoAP Month 7 Month 8

Establish and test IT system Contractor Month 9 Month 13 architecture

Launch and operate system Contractor Month 14 Month 26

Sell advertising space GoAP Month 16 Month 26

Analyze feasibility of privatizing GoAP Month 27 Month 28 operation

If feasible, outsource operation to GoAP Month 29 Month 30 private company on a leasing basis

341 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Vizag One Centre

Action Responsible Party Start Date End Date

Authorization from GoAP CM’s office Notice to Proceed

Contract and implement feasibility Contractor NTP Month 5 study

Contract the design, construction administration and construction of Project owner Month 4 Month 7 the facility

Design and build the facility Contractors Month 8 Month 20

Stand up management team, establish Project owner Month 12 Month 18 systems and procedures

Enter into MOU with relevant Project owner Month 12 Month 14 national and state programs

Define training content Project owner Month 15 Month 18

Go live: open enrolment Project owner Month 22

342 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report

Outreach

Action Responsible Party Start Date End Date

Authorization from GoAP CM’s office Notice to Proceed

Solicit: Develop RFP for Outreach Project owner NTP Month 2 Program Coordinator

Build team: Hire coordinator and management team; assess alignment Project owner Month 3 Month 5 of NSQF, accessible communities and training programs

Secure funding: Solicit financial and in-kind contributions from NGOs Project owner and private corporations

Develop: Select initial communities, Project owner / align specific training, develop visual Month 4 Month 9 contractor / NGO collateral for promotion

Launch: Public awareness campaign, Project owner / Month 10 Month 10 deploy priority training programs contractor / NGO

Go live: Open enrolment Project owner Month 12 Month 12

343 Smart City Master Planning + Sector Specific Smart City Infrastructure Plans for Visakhapatnam Interim Report