Khandwa Water Supply Augmentation Project

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On February 11, 2009 Khandwa Municipal Corporation (KMC) signed a 25 year concession agreement with Vishwa Infrastructure and Services Limited for development and operation of a Water Supply Scheme in Khandwa town, East Nimar district, located in the state of Madhya Pradesh. Project includes bringing Narmada (river) water at a distance of 52 km from the Choti Tawa River (back water of Indira Sagar Project near Charkhera village) to Khandwa. The concession included setting up 56 MLD intake well, 42 MLD water treatment plant (the project is designed for 42 MLD, six hours of water supply), raw water pumping stations, clear water pumping main, electric sub stations, feeder mains, 10 over head tank to ensure 24x7 water supply, and distribution network for the project on a Design-Build-Finance-Operate-Transfer (DBFOT) basis along with operation and maintenance of the water supply system for the entire concession period of 25 years. The concession was awarded through competitive bidding. Five EOIs had been received and were shortlisted by KMC. It was agreed that there shall be no commission of any parallel competing facility whether by way of construction of new facility or augmentation of existing facility for a period of 25 years from appointed date. Vishwa Infrastructure and Services Limited won the concession by quoting the lowest retail water charges to be collected from consumers of Rs 11. 95 per kilo liter for the base year. Post-Commercial Operation Date(COD), concessionaire shall have the sole and exclusive right to demand, collect and appropriate charges as per concession agreement. O&M reimbursement to the concessionaire will be USD 1.55 Million per annum. The initial estimated project cost at the time of bidding was USD 21.78 Million. Post bidding, KMC approved an investment cost of about USD 23.53 Million. The funding support was expected to include grant from the Government – (i) UIDSSMT Scheme of Government of India (74%) of USD 17.43 Million, and (ii) Government of Madhya Pradesh (9.3%) of USD 2.18 Million. The balance fund (16.7%) of USD 3.93 Million shall be brought in by the Concessionaire. The company was expected to start supplying 29 MLD water from 2010.