EOI RFQ 24X7 Water SupplyNagpur Municipal Corporation intends to achieve uninterrupted water supply to city on 24x7 basis. In this context, NMC has received the JNNURM sanctions for about Rs. 615 crore for expansion of water supply systems and will apply to get JNNURM grant for rehabilitation of distribution system for this project of appx Rs. 350 crore. NMC envisages to collect full user charges for assets created under JNNURM. To this end, NMC established new tariff setting, with a view to collecting full cost recovery.
NMC intends to entrust the realization of Full-City uninterrupted 24x7 water supply system in Nagpur to a private operator, which will be required to finance the capital expenditure required to rehabilitate, repair, maintain and to provide for appropriate refurbishing and replacement of water supply infrastructure as required to achieve the objectives of this project.
To this end NMC intends to grant 25-year exclusive rights of operating of water supply services, under which the private operator shall be granted, for a period of 25 years, exclusive rights to operate, maintain, refurbish water supply infrastructure owned by NMC, to deliver water supply services and to collect corresponding water charges on behalf of NMC, and to retain an Operator’s fee in proportion of the volume of water produced and sold. The Operator’s fee shall be intended to cover eligible expenditure incurred by the Operator for running the system. The operator’s fee will depend on factors designed to reward performance in maintaining physical and commercial losses below certain levels and in providing for adequate collection efficiency.