Water management contract for Mysore city

active

Jamshedpur Utilities and Supply Company Limited (JUSCO) entered into a tripartite "management contract" agreement with Mysore City Corporation (MCC) and Karnataka Urban Water Supply and Drainage Board (KUWSDB) on 2 December, 2008. As per the contract, JUSCO is expected to manage the water supply system of Mysore city in the state of Karnataka for a period of 6 years. The number of connection at the time the management contract was signed was 133,183 (66,565 in the East zone and 66,618 in the West zone. The project would enable equitable distribution of water of River Cauvery which would be treated at Hongalli and Melapur water treatment plants. The project was expected to supply water through a network of about 1200 km from 28 small and large storage reservoirs. The supply is expected to be gradually increased to 24 hours a day. The contract agreement ensures service level guarantees commensurate with national & international benchmarks. KUWSDB and MCC had bid out this management contract in March 2008. Three bidders in addition to JUSCO participated in the bid - (a)Larsen Toubro (L&T), (b)Jain Irrigation Projects and (c)Joint Venture of Ranhill Utilities Berhad, Malaysia and Subhash Projects and Marketing Limited. The management contract was part of larger project which included an investment program of about US$33.8 million (at exchange rate of Indian Ruppes 45 per US$1) to be funded by public resources. Jawaharlal Nehru National Urban Renewal Mission (JNNURM) would provide funds for 80% of the project cost and the State Government of Karnataka and Mysore City Corporation would provide the remaining 20%. The 6 year management contract was split in three phases. In the first phase (one year) JUSCO would evaluate a complete hydraulic remodeling of the present system and preparation of capital investment plan. In the second phase (three years), JUSCO would rehabilitate the distribution network to reduce water losses and gradually increase various service standards. The third and final phase (two years) JUSCO would provide 24x7 water supply in the entire city. Work on the project was expected to commence in January 2009.