1. The Tirupur Water Supply and Sanitation Project in India involved a public-private partnership (PPP) between the New Tirupur Area Development Corporation Limited (NTADCL) and private companies to address water infrastructure needs. Under a build-own-operate-transfer (BOOT) contract, NTADCL constructed pipelines and a distribution network to supply water to industries and residents. 2. However, the PPP faced criticism for failing to adequately regulate prices, ensure sufficient water quality and supply to villages, and account for excess water allocation to industries rather than domestic use. Tighter controls by regulatory agencies were difficult under the PPP arrangement. 3. Case studies from France and the United

1. Seminar 3 Group 1
Sara Khoshkar
Manon Albarède
Ipsit Dash
Tirupur Water Supply and Sanitation Project
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2. Article Reviewed
ROOPA MADHAV
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3. Tirupur
• Dollar City of India /Textile Hub
• Indian Domestic Market ₹ 100 Billion, $ 1
Billion exports , Net Market worth of ₹ 220
Billion
• Population Density is 16 000/km2
• Very High Floating Population
• 1900 units of knit wear industries and many
local business settlements
• Water Supply from Noyyal and Nallar
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4. Contents
Case Studies
•France
•USA
Group
Recommendation
Scope
Review of Article
•NTADCL
•BOOT Contract
•Reach
•Criticism
Summary
Water
Governance
in India
Status of
Water Supply
and Sanitation
PPP Benefits
Genesis
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5. Water Governance in India
• Basically managed by State Government
and Local Bodies who adhere to Guidelines
set by National Government
• Huge Allocation of Resources in every
Budget ₹ 1526 Billion allocation in 2013
Water Supply Sanitation
• Rajiv Gandhi National
Drinking Water Mission
Given the Status of a
Mission
• National Water Policy
• National Urban Sanitation
Policy
• Nirmal Bharat Abhiyaan
• Nirmal Gram Puraskar
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6. Status of Water Supply and Sanitation
Indian water problem
 inadequate resources & Inefficient management to subsidize water
availability and its distribution
• Disparity between Rich and Poor : Caste System : Imbalance
• Delhi, Mumbai, Chennai among worst 4 cities in Asia in terms of
Water Availability (ADB)
• Illegal Tapping – No Maintenance - Inefficient Use
Sanitation Issues
• Sanitation – Not a cultural Priority
• Majority of Water Borne Diseases
• Community Sanitation still not effective
• Commendable Work done by NGOs –
• Sulabh International and NRHM (Kalyani)
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7. PPP Benefits : Water Sector
Benefits to Governmentt Benefits to Private Partner
• Monetary Help
• Ownership and Policy
Making in hands of Govt
• Technical Expertise and
Efficient Management
• Better Mobilization of
Resources and Assets
• Policy Level & Statutory
Help by Govt
• Help of Govt in resolving
problems in Land
Acquisiton and Clearnace,
Approvals
• Financial Security (Limited
Assistance)
Types of PPP
• Management Contracts
• BOOT Build-Own-Operate-Transfer
• BROT Build-Rehabilate-Operate-Transfer
• DBFO Design-Build-Finance-Operate Examples from India
• Tirupur
• Ghaziabad
• Dewas
• Vishakhapatnam 7

8. Summary 1. NTADCL
Despite international recognition as a major export centre for
knitwear, Tirupur lacks quality infrastructure
• –Domestic water supply is limited to a few hours on alternate days
• –Industries do not have access to piped supply
• –Depleted ground water in the region
•Investment in infrastructure is critical for a future Tirupur
•A comprehensive program (TADP) was formulated to address the
infrastructure needs of the town
•Lack of budgetary resources prompted local industry to spearhead
implementation of TADP on a commercial format
•New Tirupur Area Development Corporation Limited (NTADCL) was
formed as the company to implement the TADP
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9. Summary 2. BOOT Contract
 Characteristics of the agreement:
• Possibility to extend the concession period (especially if
costs not recovered)
• Possibility to set the prices
• Possibility to reallocate the quantities of raw water that
must be supplied
• Possibility to make requests to increase the water drawal
rights for the industries
• Possibility to use the excess water
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10. Summary 3. Reach
• 56 KM pipelines from Cauvery River
• Distribution Network of 350 KM – Delivering
185 MLD (Extension to 250 MLD)
• 900 Registered Textile Firms, 1.6 Million
Residents
• Maintenance of Raw Water and Sewerage
Treatment plants
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11. ‹#›

12. Summary 4. Criticism
 Consequences:
• Prices not adequately set and incentive to increased water
use for the industries
• Water quality and supply not satisfactory for the villages
• Contradictions regarding wastewater recycling
• Excess water not attributed to domestic purposes
• Less accountability  difficult for regulatory agencies to
impose controls
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13. Case Study: France (1/3)
 More than 70% of
water supplied by
private companies
 In theory, high degree of control from the
municipalities but some abuses:
– Huge profit margins & over-pricing
– Huge losses of water in the piped, paid by the users
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14. France (2/3)
 Massive renegotiations of delegation contracts :
• In 2009, law introducing a maximal duration of 20
years for the contracts concluded before 1995
• Consequences:
- decrease in the prices (ex: 32% in Millau)
- new conditions and demands of results
- Systems of bonus/malus
- ...
 New trend of a return to public management
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15. France (3/3)
 Tighter control only possible if absence of
corruption
 Example of Grenoble:
• Concession contract granted to
La Lyonnaise des Eaux in 1989,
in exchange of gifts around 3 million€
• Contract finally cancelled in 2000
• Return to public management
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16. United States
• 85% of water systems operated by
municipalities and other government bodies
• 15 % owned operated by the private-sector
• Regulated activity
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17. United States
• Purchase of municipal tap
water by water bottling
companies
• Why?
– Easier access to municipal
tap water
– Easier to negotiate deals
with city officials
– Economic decline
– Job creation and increasing
tax revenues
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18. Sacramento, California
• July 2009-agreement
between Nestlé & city
of Sacramento set
• Nestlé- 30 million
gallons of the city's
water & 18.9 million
gallons of spring water
• Nestlé Pure Life Brand
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19. Kennebunk, Maine
• Summer of 2008, Poland
Springs, a subsidiary of
Nestlé Waters North
America
• Withdraw 432,000
gallons/day of water
from local water district
• 'Save Our Water’
organized by public to
protest
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20. Group Recommendations 1
• Stricter regulations from the beginning
• Monitoring programs and guidelines by an
independent group
• Public participation
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21. Group Recommendations 2
• Capping the rights of Private Companies in
PPP by Government
• Subsidies given to Public should not be
economically Determined by Market Forces
• Reserve Funds by Govt collateral for PPP
should be turned in favor of Public
• Gievance Redreasal System + Proper
Documentation = Transparency
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22. Thank You
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