Tirupur Water Supply and Sewerage Project - First water supply project in the Public Private Partnership framework

New Tirupur Area Development Corporation Limited (NTADCL) has been established as a special purpose vehicle for development and implementation of the Tirupur Water Supply and Sewerage Project. NTADCL is promoted by TWIC along with the Tirupur Exporters Association, to implement the first water sector related project under the public-private partnership framework in the country. It is the first water supply project in India to be financed commercially on a limited recourse basis. Under the project, facilities have been constructed to extract, treat and supply 185 million litres of water per day (MLD) from the river Cauvery. Water is being supplied to the dyeing and bleaching industries and domestic consumers in Tirupur. Domestic consumers of Tirupur Municipality, fifteen villages panchayats and three town and panchayats with a total population of 8,00,000 will be supplied with water. In addition, water supply is being provided to five wayside unions. The project includes construction of a sewerage system for Tirupur Municipality and onsite sanitation facilities for slums within Tirupur Municipality (TM). Presently, TM has neither a sewerage system nor a planned, organised drainage system. The project has been completed to time, cost and standards. NTADCL has already commenced supply of water to all consumers, both industrial and domestic. The construction work on the sewerage system is completed and this would be commissioned shortly. Salient Features Water Quantity to be supplied Concession Period Cost of the Project Debt Equity Sub-Debt

- 185 Million Liters per Day - 30 years - Rs. 10230 Million

- Rs. 6138 Million - Rs. 3227 Million - Rs. 865 Million

State Support Equity Rs. 300 million Sub-Debt Rs. 250 million Debt Service Reserve Fund Rs. 500 million Water Shortage Period Fund Rs. 710 million Strong support for obtaining regulatory & other requirements

Unique Aspects of the Project First Water & Sanitation Project in the country to be implemented on a Public-Private Partnership format. First water project in India to be funded on a Project Finance, non-recourse basis. Largest private investment in the Urban Infrastructure sector. Leverages State support by 19 times {Rs.550 million of state financing helps raise over Rs.10000 million for the project}. Provides a viable model for implementing other projects in the sector. Tamil Nadu is the first State in the country to set up a Public-Private Partnership based institution in the sector, namely Tamil Nadu Water Investment Company.

Beneficiaries of the Project 1. Rural households

No. of villages/habitations 629 Population 324669 Quantity (2006) 18.66 mld and (2031) 26.07 mld.

2. Urban households No. of towns 3 Population 422432 Quantity (2006) 19.83 mld and (2031) 31.15 mld

3. New sanitation network covering over 60 per cent of Tirupur 4. Low cost sanitation facilities for slum areas 5. Providing quality water to the processing industries of Tirupur Impact of the Project Improve health & hygiene conditions for households. Free-up waiting time, particularly for women for water collection from tankers. Dignity of life, particularly for women through private in-house sanitation. Help industrial growth. Create enhanced opportunities for employment and poverty reduction. Position Tamil Nadu as the premier location for textile (knitwear export) industry. Protect groundwater exploitation. Free-up ground water for agricultural growth, productivity and development.

Agencies/Institutions involved in implementation of the project

Sponsors of the Project Promoter of the Project EPC Contractors Operations & Maintenance Project Management Owners Representative Independent Engineer Independent Auditor Lead Financial Institution Lead Banker Overseas Funding

- Government of Tamil Nadu and IL&FS - Tamil Nadu Water Investment Company Ltd - HCC & L&T - United Utilities (UK) & Mahindra - Wilbur Smith Associates (USA) - GKW (Germany) & CES - Frischmann Prabhu India P Ltd (UK) - S B Billimoria & Co. - Industrial Development Bank of India - State Bank of India - USAID