Public Private

PartnershipIn

Rural W/S & Sanitation-Experiences

Er. RP GuptaExecutive Engineer,WSS Division No.3

SAS Nagar

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.

Fields of

Public Private

Partnership

1.RO based small WTPs

2. Water Supply Schemes

3. Sewerage Schemes

ROBASED

SMALL

WTPs

TDS/Uranium affected areas water scarcity areas

to meet with the minimum drinking & cooking water requirements.

RO based small WTPs have been installed in:

•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

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 times @ Rs 2/- per 20 ltr. Jerry Can/ bucket

Duties of service provider

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 providerLand, free of cost, throughout the tenure of project.

Duties of Department/ Gram Panchayat

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

Contract Performance Conditions- Financial

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

For 1000 lph capacity plantyear of Installation: 2009 Production 1.4.10-31.3.11:1050600 Litre

Income@ 10Paisa per LitreTotal Annual Income : Rs 105060/-

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

SuccessfulAnd

Satisfying

Water Supply

Schemes

Part-1O&M of Cluster of Schemes

which are operated and maintained by DWSS

1st Party : DWSS 2nd Party : Contractor

• Procured on bi- party Agreement basis

Overseeing all aspects of O&M performed by contractor.

Payment of electricity bills.

Billing & Collection of water Revenue.

• Duties of 1st Party i.e DWSS

Equitable distribution ofWater 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

Compliance of various labourlaws including minimum wages

Act.

Alternative arrangements in case disruption of water supply.

Duties of 2nd Party i.e Contractor – Contd.

Tenure of Agreement 4/2011-03/2012.

No of water schemes covered under one agreement : 42 (103 Villages)

Description Y 2010-11 Y 2011-12Expenditure 165.5 Lac 169.26 Lac(Upto November) ( inclusive of annual

increase @ 10%)Revenue 51.45 Lac 56.81 Lac% revenue 50% 55%Collected/ targetRecovery ratio 0.34 0.34

Case Study

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

Part-2Schemes handed over to GPWSC

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.

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

1st Party : GPWSC 2nd Party : Contractor 3rd Party : DWSS

Scope O&M of SV/MV Schemes which have been handed over to GPWSC.

Procured on tripartite Agreement basis

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 1st Party i.e GPWSC

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 1st Party i.e GPWSC -Cont.

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 2nd Party i.e Contractor

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 2nd Party i.e Contractor –Cont.

To ensure that the agreement is implemented religiously.  

   

• Duties of 3rd Party i.e DWSS

Year of Commission : July 2008Year of entering into Tri-Partite agreement : Aug 2011

Description before after

1. Intervention of deptt. 18 0for collection of revenue

2. Balance in O & M a/c 0 Rs. 4500/- of GPWSC Rs. 14000/- due for

Payment towards electricity bills

3. No. of private water 114/145 118/145connections

4. Satisfaction level not satisfied fully satisfied

Case Study Village Malkomajra (IDA)Distt. Fatehgarh Sahib

Problem identified: Groupism (non payment of water bills, compelling chairman to pay from

his pocket)

Though the model seem to successful

but since it has been introduced only

recently it thus still need to be evaluated

comprehensively.

SewerageSchemes

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

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

Challenges

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

To entrust the 2nd party i.e GPWSC the responsibility for O&M.

To own all moveable and immovable assets of the schemes.

To authorize 2nd party to sign O&M agreement, open bank account and make payment to the contractor.

• Duties of 1st Party i.e GP

To utilize all powers conferred on it as per Punjab Panchayati Raj Act. 1994 to support the 2nd party in achieving the objective.

To take over the functions of the 2nd party in case of non performance, mis-utilization, mis-appropriation, embezzlement of funds or failure to operate the scheme

• Duties of 1st Party i.e GP- Contd

through 3rd party.

To monitor as well as audit all activities undertaken by 2nd party.

• Duties of 1st Party i.e GP- contd

To act as link between 1st party i.e GP and 3rd 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 3rd party.

• Duties of 2nd Party i.e GPWSC

To maintain records such as assets register, account books etc.

To fix and collect revenue. To release payment to

contractor.

• Duties of 2nd Party i.e GPWSC -contd

To arrange for implementing social mobilization, IEC and capacity building activities.

To provide guidance to 1st and the 2nd party for preparation and implementation of O&M management plan and compliance with Environmental Management Plan

• Duties of 3rd Party i.e DWSS

To keep a close watch on the functioning of 2nd party regarding sustainability, transparency and performance (through SNK)

To reconstitute the 2nd party within a month in case the 2nd party fails to perform its duties orderly and its functioning is handed over to it by 1st party

• Duties of 3rd Party i.e DWSS - contd

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

• Settlement of disputes

Since the schemes are yet to be

commissioned hence the model will be

evaluated in the due course of time.

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,