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Public Private Partnership In Rural W/S & Sanitation -Experiences Er. RP Gupta Executive Engineer, WSS Division No.3 SAS Nagar.

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Presentation on theme: "Public Private Partnership In Rural W/S & Sanitation -Experiences Er. RP Gupta Executive Engineer, WSS Division No.3 SAS Nagar."— Presentation transcript:

1 Public Private Partnership In Rural W/S & Sanitation -Experiences Er. RP Gupta Executive Engineer, WSS Division No.3 SAS Nagar

2 My presentation covers our good experiences in using PPP in delivering outstanding service in the field of rural water supply and sanitation and our continuous efforts in this direction.

3 Fields of Public Private Partnership

4 1.RO based small WTPs 2.Water Supply Schemes 3.Sewerage Schemes

5 RO BASED SMALL WTPs

6  TDS/Uranium affected areas  water scarcity areas to meet with the minimum drinking & cooking water requirements. RO based small WTPs have been installed in:

7 This PPP model is procured on “Concession model” principal where the system is build & operated (for 7 years) through competitive bidding & is then transferred to the owner i.e DWSS No other Private operator is allowed in the village for providing drinking water supply. GPWSC or any other agency can, however, supply water for other purposes. Procurement

8  Endeavoring for the maximum participation of the community through intensive IEC activities.  Regular upkeep of the RO Plant.  Proper disposal of reject water into nearby deep bore well/pond  Selling potable water at plant site at all Rs 2/- per 20 ltr. Jerry Can/ bucket Duties of service provider

9 To Provide:  A source of RAW water, however the water will be produced by the service provider.  A Power Supply connection, however the electricity bill is to be paid by the service provider  Land, free of cost, throughout the tenure of project. Duties of Department/ Gram Panchayat

10 Performance Guarantee for 7 years (% of Capital Cost)  1 st two years 20%  3 rd and 4 th years 15%  5 th, 6 th and 7 th year 10% Contract Performance Conditions- Financial

11  Number of units already in 686 Operation  Number of units under 1125 Installation  Total No. of Units likely to 1811 be in operation by March, 2012  Units in planning stage 65 Some statistics

12 For 1000 lph capacity plant year of Installation: 2009 Production : Litre 10Paisa per Litre Total Annual Income : Rs /- Annual Expenditure: Power cost : Rs 38000/- Average O&M cost : Rs 12000/- Total Salaries: Rs 30000/- Total Production cost : Rs 80000/- Saving per Annum: 25060/- Case Study

13 Successful And Satisfying

14 Water Supply Schemes

15 Part-1 O&M of Cluster of Schemes which are operated and maintained by DWSS

16  1 st Party: DWSS  2 nd Party : Contractor Procured on bi- party Agreement basis

17  Overseeing all aspects of O&M performed by contractor.  Payment of electricity bills.  Billing & Collection of water Revenue. Duties of 1 st Party i.e DWSS

18  Equitable distribution of Water Supply.  Disconnection of illegal connections, if any.  Making new connections (sanction and material to be arranged by the consumer)  General upkeep of the installation Duties of 2nd Party i.e Contractor

19  Compliance of various labour laws including minimum wages Act.  Alternative arrangements in case disruption of water supply. Duties of 2nd Party i.e Contractor – Contd.

20  Tenure of Agreement 4/ /2012.  No of water schemes covered under one agreement : 42 (103 Villages) DescriptionY Y Expenditure Lac Lac (Upto November)( inclusive of annual 10%) Revenue Lac56.81 Lac % revenue50%55% Collected/ target Recovery ratio Case Study

21 Since the recovery ratio has remained the same(0.34) therefore some punitive/ motivational measures are required to be incorporated in the agreement for improving the ratio closest to 1, to make the system self sustainable

22 Part-2 Schemes handed over to GPWSC

23 Generally the O&M of such schemes is satisfactory but some times (in very few cases) due certain unavoidable reasons, the GPWSCs fail to run the schemes successfully. This PPP model has been developed to deal with such situations.

24  Lack of interest of some GPWSC members  Groupism in Village hindering Sustainability.  Lack of Technical know how.  Non availability of technical man power in and around the village.  Spoilt by free bees in the past, hence avoidance for payment of monthly water bills Some Identified Reasons

25  1 st Party: GPWSC  2 nd Party : Contractor  3 rd Party: DWSS  Scope O&M of SV/MV Schemes which have been handed over to GPWSC. Procured on tripartite Agreement basis

26  To make payment to the contractor by 10th of every month.  To pay the electric bill in time, regularly.  To guide and supervise the contractor Duties of 1 st Party i.e GPWSC

27  To make sure that there are no illegal connections at the time of handing over the scheme to the contractor.  To deposit 10% of the monthly revenue collected by it to District water Supply and Sanitation Committee every month. Duties of 1 st Party i.e GPWSC -Cont.

28  To endeavor to provide satisfactory water supply to all the households in the village (s).  To keep vigil that any illegal connection is avoided.  To distribute the bills and collect the revenue/ arrear of water charges from the consumers and deposit the same into the account of GPWSC Duties of 2 nd Party i.e Contractor

29  To maintain the water works, and cleanliness of pump chamber & staff quarter etc.  To carry out the minor repairs in machinery and plug leakages in distribution system. The material used for this purpose shall be reimbursed to the contractor by GPWSC on monthly basis. Duties of 2 nd Party i.e Contractor –Cont.

30  To ensure that the agreement is implemented religiously. Duties of 3 rd Party i.e DWSS

31 Year of Commission: July 2008 Year of entering into Tri-Partite agreement: Aug 2011 Description beforeafter 1.Intervention of deptt.180 for collection of revenue 2.Balance in O & M a/c 0Rs. 4500/- of GPWSCRs /- due for Payment towards electricity bills 3.No. of private water 114/145118/145 connections 4.Satisfaction levelnot satisfiedfully satisfied Case Study Village Malkomajra (IDA) Distt. Fatehgarh Sahib Problem identified: Groupism (non payment of water bills, compelling chairman to pay from his pocket)

32 Though the model seem to successful but since it has been introduced only recently it thus still need to be evaluated comprehensively.

33 Sewerage Schemes

34 Devised for ensuring smooth and efficient running of the sewerage system without blockages and proper disposal after necessary treatment.

35  Regular attention is required to be paid to the cleaning of the sewerage system. Challenges

36 Procured as part of main agreement however subsequently a MoU is signed between GP, GPWSC & DWSS to carry forward the O&M part of the main agreement

37  To entrust the 2 nd party i.e GPWSC the responsibility for O&M.  To own all moveable and immovable assets of the schemes.  To authorize 2 nd party to sign O&M agreement, open bank account and make payment to the contractor. Duties of 1 st Party i.e GP

38  To utilize all powers conferred on it as per Punjab Panchayati Raj Act to support the 2 nd party in achieving the objective.  To take over the functions of the 2 nd party in case of non performance, mis-utilization, mis- appropriation, embezzlement of funds or failure to operate the scheme Duties of 1 st Party i.e GP- Contd

39 through 3 rd party.  To monitor as well as audit all activities undertaken by 2 nd party. Duties of 1 st Party i.e GP- contd

40  To act as link between 1 st party i.e GP and 3 rd Party i.e DWSS.  To ensure participation of women, youth, scheduled cast and poor in the village community.  To comply with the rules and guidelines issued by 3 rd party. Duties of 2 nd Party i.e GPWSC

41  To maintain records such as assets register, account books etc.  To fix and collect revenue.  To release payment to contractor. Duties of 2 nd Party i.e GPWSC -contd

42  To arrange for implementing social mobilization, IEC and capacity building activities.  To provide guidance to 1 st and the 2 nd party for preparation and implementation of O&M management plan and compliance with Environmental Management Plan Duties of 3 rd Party i.e DWSS

43  To keep a close watch on the functioning of 2 nd party regarding sustainability, transparency and performance (through SNK)  To reconstitute the 2 nd party within a month in case the 2 nd party fails to perform its duties orderly and its functioning is handed over to it by 1 st party Duties of 3 rd Party i.e DWSS - contd

44  Administrative Sectary, Deptt. of Water Supply and Sanitation, Govt. of Punjab shall act as Arbitrator. Settlement of disputes

45 Since the schemes are yet to be commissioned hence the model will be evaluated in the due course of time.

46 Conclusion Although all the models are being implemented successfully but in order to still improve upon them the department proposed to appoint a consultant for which applications have already been received and are under process,


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