1. Water Security for Urban India (Water for billion + people….) Arun Lakhani, Chairman Vishvaraj Environement Pvt. Ltd. SUM – Sustainable Urban Water Management - 24x7 Water Supply – (Nagpur Case Study) - Sewage as Resource - Future of PPPs – Need of 4P Model

2. 2 Water deeply embedded in the social fabric of the country Panch-Mahabhut Amongst the world‘s youngest nations (median age of 25 years) Steady rise in urbanization – Expanding middle class 2011  377 Mn 2031  598 Mn 10 year average GDP growth rate of ~7.7% Stable government with a clear majority at the Center and most of the States – First time in last 3 decades India at the Crossroads of Customs and Development

3. 3 Urban India : Water Supply Improvement Opportunity HPEC report 2011, PWC water report 2011 ParameterBenchmarkReality NRW< 15 %> 50% Per Capita Supply of water (lpcd) 13537 - 298 Coverage (Piped Supply)100%64 % Duration of water supply24 Hrs.1 – 6 Hrs Meterisation100 %4% Sewage Treatment100 %Large towns ~ 30% Small towns ~ 3% Town Class - I A > 5 Mil, IB – 1 to 5 Mil, IC – 0.1 to 1 Mil, II – 50,000 to 100,000, III - 20,000 to 50,000, IV+ < 20,000 Town Class No. of TownsUrban Population Investment I + II~ 1,00079 % USD 45 Bn State of Indian urban water system Urban Demographics (Town Class, Number, % Urban Population) Total Urban Population - 31 Crs Approximately 1,000 urban towns in India need investment of USD 45 Bn for upgrading water supply systems

4. 4 TreatmentPeopleSewage Sewage Treatment Industry Reuse Source Way Forward -- Sustainable Urban Water Management River / Lakes WTP 24x7 water To residents STP Power Plant / Industries SUM Sewerage Network

5. Indian Urban Water Supply Systems Providing 24x7 Water Supply (Case study – Nagpur)

6. 6 Project 2.7 million+ population across 217 Sq. Kms 50:50 JV of Vishvaraj Infrastructure Limited & Veolia Water India Pvt. Ltd. 6 Water Treatment Plants: 750 MLD, 350,000 water connections with 2,500 Km of pipelines Investments – Total USD 95 Mn, Grant USD 45 Mn Recognized as the “Best practices in Urban Water Supply in India” at the launch of Smart City program by Hon’ble Prme Minister India’s First Large Scale Water PPP - Nagpur 24x7 Contract

7. 7 Nagpur 24x7 - PPP Contract NMC / NESL – Owners of 25 Yr. PPP contract Sovereign rights remain with NMC Tariff decisions, Connection/disconnection authority Asset ownership Operator – Service Provider Investment Performance linked service (Rehabilitation and O&M of the network) Key performance indicators for operator Achievement of 24 x 7, pressurized water NRW reduction to 25% in 10 years NMCNESL Private Operator Water to 27 Lac People Agency Operating agreement

8. 8 Nagpur 24x7 - Supply & Services Improvement No Water to Water Conversion 106 Areas 1,37,293 Citizens Alternate day to Daily Supply Conversion 81 Areas 1,38,085 Citizens Supply & Pressure Condition Improvement 128 Areas 5,11,254 Citizens 24x7 Supply 8 Areas 2,04,262 Citizens Contamination Issues Resolved 44 Areas 60,955 Citizens Total 10,51,849 Citizens significantly benefitted Under Rehabilitation: 480.00 km Pipe line laid; 96,059 Connections replaced As on 30th Nov 2015

9. 9 Accolades

10. Indian Waste Water Sector – Reuse A Civic Necessity

11. 11 India - Stressed Water Resource 4% of world’s water resources are supporting 16% of world’s population Pressure growing with urbanisation, higher food production and industrialisation Converting a liability into asset : Untreated Sewage discharge Treatment Capacity in India Large towns ~ 30% Smaller towns ~ 3 % 38,000 Million litre/day ( MLD ) of sewage is discharged untreated in the ecosystem contaminating fresh water – 21% diseases 28,000 MLD of this 38,000 can be reused by Industry 8,000 MLD by Thermal Power Stations 20,000 MLD by various Industries Treating Sewage as Resource and Not waste

12. 12 Waste Water Reuse a Civic Necessity – 21% Diseases Rivers/Dams/ Lakes Urban Population Power plants / Industry Agriculture To Provide Treatment Infra Limited Fresh Water Resources Rivers/Lakes Fresh Water Waste Water Treated Water Investment, Construction and O&M by Private Operator Water Sale Proposed value chain for the Central and State Authorities Waste Water Value Chain

13. 13 Experience - Nagpur 200 MLD STP – Largest PPP in India in Reuse Objective  Providing Sewage Treatment for 200 MLD & possible reuse by potential Customers Project Details  Structure : PPP / DBFOT project  Client : Nagpur Municipal Corporation  Scope : Augmentation of existing STP from 100 to 200 MLD  Project Cost : USD 72 mn ( including USD 36 mn for tertiary facility ) Revenue Model:  Annuity Payment towards Capex + Opex  Option to sell 175 MLD of tertiary treated water on royalty payment to NMC  Concession Period : 32 years (2 construction + 30 operations)  Win win for all  NMC – treatment capacity, additional fresh water, revenue from reuse (free treatment)  Power plant – Water security  Green buses

14. Future of PPPs – Need of 4 th P Model

15. 15 Public Private Partnership Model in theory appears viable, effective and doable considering; – Ownership remaining with Public Institutions – Public related decision making remaining with Public Institutions – Efficiencies and accountability from Private Player – Private Player utilizing large existing infrastructure with investments – Long term contract to address its initial costs – Sense of Public Service and Pride by improving quality of life of People Is it emerging out as envisaged ? Are we achieving the expected “Win-Win” for all stakeholders ? Are the problems faced only by citizens or all parties? We need to critically analyze the model and do corrections if necessary PPP as A model ?

16. 16 Perceptions – Misconceptions Its Privatization It is tweaked for Private player to benefit at the cost of Public as the total revenues are generally perceived as Income of the Private Player Test case – Water Water in Private hands goes against the culture It will lead to ground water control handed over to private company PPP to 4P -> Need to Review the Current PPP Structure Communicating with the stakeholders is a key to address these challenges…

17. 17 For long term water PPP Projects to succeed, The Roles P – Public – Policy Maker P – Private – Efficiency improvement with investment P – People – Communication & Monitoring Communication, Transparency and On-boarding of the largest stakeholders “People” is more of a business need and mitigates many risks. “ Win Win for all the stakeholders is essential for long term PPP Projects to succeed” Future of PPPs – Need of 4 th P as People

18. 18 Thank You