Urban Water – Page 28

Much has been talked about PPPs (Public Private Partnerships, a euphemism for privatisation) in urban water supply sector. After National Water Policy 2012 spelled water as an economic good, PPP water projects have spurred further across cities all over India.

Concession agreement between the Municipal Corporation and the private company awarded with the contract is a mode of PPP widely used in this sector. Many municipal corporations sign concession agreements in such a way that the concessionaire gets entirely exclusive rights on using the water infrastructure for purpose of water supply and also of billing & collection. This means that the more water the concessionaire sells, the more profit it earns.

While these agreements are signed assessing the financial feasibility of the projects, realistic studies of their impact on the water use from the dams or source at the back end are missing. So how do PPP projects interact with the water sources like dams which are the source of raw water for these agreements? We conducted a brief case study of 24×7 Water Supply PPP Project of Nagpur in Maharashtra. We see a strong link between demand stress on the dams and 24 x 7 water supply promotions, indicating that the 24×7 water supply projects which are pushed widely across the country may further increase the demand stress on the dams.

The central Indian city of Nagpur has been one of the earliest cities to opt for water supply PPP. The pilot project launched in Dharampeth Zone started in June 2007 and is now in the operational phase. Before the project could be critically assessed for its performance, the NMC (Nagpur Municipal Corporation) in November 2011 extended the PPP to entire City claiming that the demo project has already been successful[i]. Concession agreement was signed with Orange City Water Private Ltd. (OCWL) which is a joint venture of Vishvaraj Environment Pvt Ltd and Veolia Water (India) Private Ltd[ii].

It has to be understood at the outset that Dharampeth ward which was chosen as a demo ward[iii] already had average water supply of 18 to 20 hours a day. This ward also has abundant open wells which are used regularly by the consumers for non-potable uses. In fact the experts say that NMC has chosen the ward with least amount of water problems so that the project can be readily showcased as a success, but with such convenient selection, the NMC did not wait for the critical assessment of the performance of demo.

Water consumption increased after 24×7 Water Supply was launched in demo zone

PPP was launched on a pilot basis in this ward claiming multiple benefits. One of the benefits of 24×7 water supply claimed repeatedly is ‘reduced burden on water resources’. Continuous supply is said to reduce water wastage arising from overflowing storage systems and open taps. It is also said to save on stored household water that is discarded when new supply comes in. Because the distribution pipe network is repaired and renewed where needed before starting 24X7, it also reduces losses arising from leaks in the old pipes.

All this is said to result in reduced water use.

In Nagpur however the case has proved to be the opposite.

Administrative State College of India (ASCI), Hyderabad conducted Impact Assessment of the Pilot Project[iv]. The study found that during the demo project the target set for increase in billed volume was 10%. In reality, there was an actual increase of about 50%. Billed volume for Bajiprabhu Nagar (an area of about 2.5 to 4 SqKM in Dharampeth zone) which was 0.440 MLD, increased to 0.504 MLD. The billed volume[v] for Dharampeth zone increased from around 22 MLD before the project to 33 MLD by March 2010. While 24X7 water is not available to the poor in many slums, meter reading and bills have gone up by two to three times in non-slum area. The NMC officials claim that the increase in total water supplied[vi] to the pilot area from 45 MLD to 52 MLD, is a natural growth.

Findings of another study in which this author was involved are on similar lines. The study shows that the leakages after replacement pipes and leakage at consumer premises due to excess pressure in fact increased the wastage multifold. In addition the taps fitted for slum connections are of poor quality and keep leaking. This adds to the wastage. Non slum connection holders point out that 24 hours availability leads to more wasteful water use. They also mention that 3 to 4 hours of water supply with good force twice a day is much preferred than 24 hours water supply.

Print media reports in September 2011 state that water demand for Demo zone was 41.25 million litres per day (MLD) while the actual supply was 92.98 MLD[vii]. The figures had been quoted from information obtained from RTIs filed by corporator Vedprakash Arya. It was alleged that the additional 51.73 MLD more than the actual requirement has been the wastage from the leaking main pipelines & leakage at consumer premises. It was also alleged that this additional water has been provided to the Demo Zone by diverting water from other zones.

Mr.Arya also shows concern about increase in the water supply quantum when the project is implemented in the entire city. He says that NMC will have to arrange for over 1,000 MLD, which is impossible.

Nagpur receives water from the Pench dam at the cost of irrigation potential

While the demand in the city has been going up with introduction of 24×7 water supply, it will be interesting to take a look at what has been happening at the source of city’s raw water.

The Navegaon Khairi dam in the Parseoni forests from which the Nagpur City receives its raw water is a part of Pench Project, which incidentally straddles the Pench Tiger Reserve. The dam was constructed in 1977. The total water available for utilization at Navegaon Khairi dam is 965 M Cum (75% dependability). PRAYAS Resources & Livelihoods Groups has conducted a detailed case study of water allocation for the Nagpur City. The report presents startling facts. As per the report, the original allocation plan shows that the project was constructed primarily for irrigation purpose, with 79% of the planned water allocated for agriculture development and 21% allocated for non-irrigation purpose. NMC started drawing 112 MCuM water from the Navegaon Khairi dam between 1982 and 84. In 2001 NMC demanded allocation of additional 78 MCuM water to supply for the increased population. Allocating this share of water to NMC would essentially have to be at the cost of loss of irrigation potential. Hence temporary permission was granted to NMC and the city was specifically asked to lower their dependence on the Pench River. The water allocation was made permanent in August 2008 on two conditions –

1) NMC should pay the restoration cost[viii] of 8445 Ha at the rate of Rs 100 000/ha

2) NMC shall undertake treatment of waste water

The current water allocation to NMC from Pench RBC (Right Bank Canal) is 255.71 MCuM.

Kanhan River to be augmented as a future raw water source

After diverting the water from irrigation to urban water supply, NMC is all set to augment a fresh water source for the city’s growing thirst. The DPR (Detailed Project Report) prepared for 24×7 water supply states that NMC has prepared the master Plan for Water Supply to meet the water supply up to 2031 from identified sources. The future source for city would be proposed barrage on Kanhan River which will meet the water demand up to Year 2031. Kochi barrage and Jamghat will be required to be developed to meet water demand beyond 2031.

Accordingly NMC has started the process of to approve the project of constructing a barrage at the confluence of Kanhan and Kolara rivers[ix]. The project aims to increase water supply from Kanhan water treatment plant, which would benefit East, North and few parts of South Nagpur. NMC had constructed water treatment plant with installed capacity to treat 240 MLD water. However, the plant cannot function to full capacity due to shortage of raw water from Kanhan River. The plant can treat water stored in the barrage throughout the year.

A proposal has been tabled before the standing committee seeking approval for Rs 1.82 crore for the work. The standing committee was to give its nod in the meeting organized on July 14 (2014).

Conclusion

Case of Pilot 24×7 water supply project at Dharampeth zone is indicating that 24×7 water supply has increased water use by the consumers. It also indicates that the problem of leakage has actually increased in 24×7 water supply. The PPP agreements are drafted in such a way that the more water the concessionaire sells the more profit it earns. Quick look at the PPP agreements of Bhiwandi, Aurangabad, Latur will confirm this fact. In case of Nagpur the more water the private player bills the more profit he earns. This increases the demand pressure at the raw water source and may result in issues like water supplied at the cost of irrigation potential, and increase in the need of dam projects, with associated social, ecological and economic impacts.

Instead of managing the demand and promoting local options like as Rain Water Harvesting, reuse of treated sewage which will reduce the demand side stress on sources like dams, 24 x 7 water supply projects are widely promoted with the assumption that they will automatically mean less water use. No comprehensive assessment of performance of these projects has been done to actually assess initial claims. As in the case of Nagpur, the model seems to promote more wasteful use of water And is banking on more sources for this.

It is also significant to note here that these efforts are funded by the centre. Out of 17 JNNURM projects sanctioned for Nagpur, (till September 2013) eight projects are water supply sector related projects[x]. All of them are proposed to augment the present water supply source and to develop a raw water source. As the situation stands now, NMC has signed concession agreement with OCWL the entire city and is looking to augment more water sources like Kanhan River. On background of poor performance by OCWL during implementation of the project, this move saw signification local protests and opposition[xi].

There is an urgent need to assess the performance of PPP water supply schemes in terms of water use by the consumers which seems to be missing in the hoopla of promotion of PPPs. The alternative of greater democratization of urban water sector by increasing transparency, participation and accountability seems to be more imperative than PPP experiments.

– Amruta Pradhan, SANDRP. amrutapradhan@gmail.com

References

– National water policy 2012

– Detailed Project Report of 24×7 pilot project

– Unpublished study by PRAYAS Resources & Livelihoods Group: Water Diversion from Irrigation to Non-Irrigation Use in Pench Project

[i] http://timesofindia.indiatimes.com/city/nagpur/Double-blow-for-Orange-City-Water-Limited-as-Nagpur-Municipal-Corporation-Centre-tighten-strings/articleshow/13828881.cms

[ii] http://timesofindia.indiatimes.com/city/nagpur/What-is-the-exact-cost-of-24×7-water-supply-project/articleshow/17775071.cms

[iii] http://www.nmcnagpur.gov.in/files/Draft-DPR.pdf

[iv] http://www.urbanindia.nic.in/programme/lsg/lsg_presentation/ASCI/Nagpur%20PPP-dist%20copy.pdf

[v] Billed volume does not include the water losses in the distribution system

[vi] Total water supplied includes the water losses in the distribution system

[vii]http://articles.timesofindia.indiatimes.com/2011-09-20/nagpur/30179542_1_dharampeth-zone-mld-water-supply

[viii] Capital cost incurred into the canal infrastructure rendered unutilized because of diverting water for non irrigation purpose.

[ix] http://timesofindia.indiatimes.com/city/nagpur/Kanhan-river-barrage-plan-revived/articleshow/38226739.cms

[x] http://www.indiaenvironmentportal.org.in/files/file/details%20of%20projects%20approved%20under%20jnnurm.pdf

[xi] http://timesofindia.indiatimes.com/city/nagpur/Orange-City-Water-Private-Limited-paying-Rs-46-lakh-penalty-every-month-for-poor-performance/articleshow/37154852.cms

More than 50 people including tribal groups, social activists, water experts, ecologists and wildlife experts, academics came together for a brainstorming workshop about Dams coming up for Mumbai Region. The meeting was organized by South Asia Network on Dams, Rivers and People, Shramik Mukti Sangathana, and Jalbiradari.

Seetaram Shelar of YUVA at Meeting on Dams round Mumbai Photo: SANDRP

About 12 dams are planned or are under construction to satisfy the increasing thirst of the Mumbai Metropolitan Region (MMR). All of these dams fall in eco-sensitive region of the Western Ghats. They will together submerge more than 22,000 hectares of land, including nearly 7000 hectares of forests, lakhs of trees and more than 750 hectares of Tansa Sanctuary. They will affect a minimum of 100,000 tribals who depend on the forests and their ancestral lands for livelihoods. These dams include Kalu, Shai, Balganga, Susari, Khargihill, Bhugad, Pinjal, Gargai, Middle Vaitarna, Barvi and Poshir, among others. These are in addition to the dams already constructed for MMR water supply.

Tribals and other affected groups of Thane and Raigad region have been strongly opposing these projects. Most people in Mumbai seem unaware of their struggles or impacts of these projects.

Most of these dams are escaping the social and environmental impact assessments and management plans, environment clearance requirements, environmental monitoring or public consultations due to blunders in environmental impact assessment notification of Sept 2006, which excludes domestic and industrial water supply projects from environmental clearance process. It signifies the environmental illiteracy of the officials and ministers at the Union Ministry of Environment and Forests. In spite of repeated letters, and acknowledging that this makes no sense, they have refused to change it.

Local protest against Pinjal Dam near Jawhar which can submereg 11 villages and 2000 hectares fo forests Photo: SANDRP — Local protest against Pinjal Dam near Jawhar which can submereg 11 villages and 2000 hectares of forests Photo: SANDRP

MMR has not done any sort of options assessment before pushing these projects and cursory review show that many options exist. At the city or Region level, there is no shortfall in water supply currently and the existing problems are due to inequitable, non-transparent, non-participatory and wasteful water governance in MMR. Municipal corporations under the MMR which are pushing new dams do not treat even 15% of their sewage. Bhiwandi Nizampur & Vasai Virar Corp do not treat ANY of their sewage. The Mumbai Region has no estimate of its rainwater harvesting potential, and there is little effective action in this direction despite high rainfall. Water supply and distribution losses are over 30%. Local water sources like rivers, lakes and wells are being destroyed by pollution and encroachments. There is no interest in democratizing governance of MMR water sector.

The meeting resolution urged the MMR region to address these issues first, which would lead to sustainable water supply to the city and suburbs. Konkan Irrigation Department which is constructing most of these projects has violated several laws related to tribal and forest rights, environment, forests and resettlement and has been mostly favoring a single contractor, illegally.

The meeting also strongly urged the MMRDA, MCGM, Municipal Corporations of MMR, Maharashtra government, Union Ministry of environment and forests, Maharashtra Forest Department, National Board of Wildlife and all others concerned to ensure that following steps are taken up urgently and in a credible way:

Þ Undertake thorough options assessment for Mumbai’s (and also for other cities of MMR) water needs which includes groundwater recharge and sustainable use, protect and use local water sources, rainwater harvesting, sewage treatment and reuse, plug leakages, improve water supply efficiency, take up systematic demand side management measures etc.;

Þ Undertake Environmental and Social impact assessments for all the dams coming up for Mumbai Region;

Þ Take immediate action against KIDC for violating multiple laws while bulldozing ahead with projects and MMRDA for funding projects in the absence of clearances;

Þ Respect people’s protests and Gram Sabha resolutions against displacement, deforestation and their refusal to give permission for these projects;

Þ Take strong penal action against the officers and the contractors who have displaced Adivasis illegally;

Þ Not resume any work or planning for any project before the above is done, stop work on projects in the meantime;

Þ Change the EIA notification to ensure that all large dams are included for environment clearance, public hearings and EIA requirements;

Þ Immediately institute a credible Cumulative Impact Assessment of the projects already constructed and advanced in implementation;

Þ Institutionalize decentralized, democratic governance of water sector in MMR from bottom to top.

Forests in the Western Ghats are Mumbai’s and MMR’s lungs. They are the watersheds of rivers and water sources like Tansa and Bhatsa and naturally purify Mumbai’s & MMR’s drinking water. Rich tribal culture of Thane and Raigad is a shared heritage of Mumbai and we have no right to displace the tribals or destroy their livelihoods. This destruction in Mumbai’s backyard must be stopped.

However, Mumbai and MMR are not the only urban areas guilty of destroying the environment, forests, biodiversity and livelihoods of lakhs of poor people. Delhi, already having more per capita water than European cities like Paris, Amsterdam or Bonn, is asking for Renuka, Lakhwar and Kishau dams in upstream Yamuna basin, while destroying the YamunaRiver for all downstream areas. Ahmedabad is using water from the Sardar Sarovar Narmada dam that was meant for the people of Kutch and Saurashtra and which has led to displacement of over two lakh people. Jaipur is taking water from Bisalpur dam. Farmers for whom it was made are not getting the water and some lost their lives in police firing, while demanding that water. Massive diversion of Nethrawathi water is proposed for Bangalore and other areas, destroying the pristine Western Ghats forests. 3 farmers died in police firing near Pune when a huge farmers rally was protesting against diversion of water from Pawna Dam to the Corporation of Pimpri-Chinchwad.

Headwaters of Netravathi and Gundia threatened by Yettinahole Diversion Photo: Parineeta Dandekar, SANDRP

As Planning Commission member Dr Mihir Shah recently wrote, the 12^th Five Year Plan proposes paradigm shift in Urban sector sector: “Each city must consider, as the first source of supply, its local waterbodies. Therefore, cities must only get funds for water projects, when they have accounted for the water supply from local waterbodies and have protected these waterbodies and their catchments. This precondition will force protection and build the infrastructure, which will supply locally and then take back sewage also locally.”

The trouble with this urban water sector reform agenda is that close to two years into the 12^th Plan, we still do not see it being implemented anywhere. We do not see any roadmap for its implementation. And yet the UPA government continues to fund solutions catering to only long distance supply-side measures like big dam projects for urban areas under the Jawaharlal Nehru National Urban Renewal Mission. In fact, of the first Rs 60 000 crores sanctioned for JNNURM, about 70% was for urban water sector, but do we see any progress in democratisation or even improvement of Urban Water Governance?

The hope lies with clean, transparent and participatory governance. Let us hope we see some change in this direction.

Himanshu Thakkar (ht.sandrp@gmail.com), Parineeta Dandekar (parineeta.dandekar@gmail.com), SANDRP

A slightly edited version of this has appeared in Civil Society http://www.civilsocietyonline.com/pages/Details.aspx?480

Tag: Urban Water

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