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Market conference on Hybrid-Annuity based PPP model for creation of Sewage Treatment Infrastructure held

The Special Purpose Vehicle (SPV) for Hybrid-Annuity based Public Private Partnership (PPP) Model for creation of Sewage Treatment Infrastructure under Namami Gange Programme is likely to be set up by the end of next month. This was stated by Shri Shashi Shehkar Secretary Ministry of Water Resources, River Development and Ganga Rejuvenation while inaugurating a Market Conference on ‘Hybrid-Annuity based Public Private Partnership (PPP) Model for Creation of Sewage Treatment Infrastructure’ under Namami Gange Programme in New Delhi today. He said this conference is very important because for the first time the sewage management is being addressed the way the market would require it. Shri Shekhar said RFP for transaction advisory service will also be issued by March end. The Secretary informed the conference that appointment of transaction advisors will begin in June 2016 and hiring of concessionaires will start from January 2017.

Shri Shekhar said that it has been decided that all STPs along the river Ganga will be taken up in hybrid annuity mode only. He said days are not very far when sewage treatment will be made mandatory. The Secretary said, “When it becomes mandatory it will open up huge market”. Shri Shekhar said, “All the advance preparations are under way and we are hopeful to come with 20-30 projects by May 2016. The Secretary said sale of treated water will not be factored in the valuations of bids. He said, however, for the sale of treated water we are creating market. Ministry of Railways, Petroleum and Power have been approached for this. An MoU has already been signed with the M/o Railways for this purpose. It has been made mandatory for power plants to buy treated water from STPs if they are located within the radius of 50 Kms. Shri Shekhar also appealed to each participant to contributes Rs. 10/- Per month to clean Ganga fund.

Earlier, Shri Pushkal Upadhyay, Additional Mission Director , National Mission for Clean Ganga gave a Power Point Presentation on Namami gange programme . He informed the conference that the total sewage generation in Ganga basin (11 states) is about 12000 mld. and the gap in treatment capacity is about 6300 mld (11 states). He further said the Government proposes to create 4000 mld treatment capacity in five states.

About 200 participants from private sector and NGOs attended the daylong conference. The purpose of conference was to sensitize the market of the upcoming hybrid-annuity based PPP model for sewage treatment and institutionalization of the Special Purpose Vehicle (SPV) for project execution through Transaction Advisors (TA).

Deliberations took place on Government of India initiatives on setting up of institutional and financial model for municipal waste water treatment under Namami Gange program, business models in sewerage sector, maintenance and monitoring of assets, MLD gap, institutional framework and roadmap for NGRBA-SPV-TAs-Concessionaire, treated water recycling development and opportunities and international success stories on annuity/ hybrid annuity model in STP development and operation.