Private Participation Explored in Sewerage Projects

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Tamil Nadu’s Municipal Administration Department has decided to explore private participation in underground sewerage projects for the first time, beginning with Madurai and Nagercoil corporations. The Tamil Nadu Urban Infrastructure Financial Services Limited has issued a tender to study the feasibility of implementing the projects in the two corporations and submit a report. The selected consultancy is required to complete the report within five months.

Tamil Nadu has 25 municipal corporations under the Municipal Administration Department, including Chennai and Madurai. As private participation in municipal activities has been increasing, the department has initiated the process of examining private participation in underground sewerage projects. The tender concerns the feasibility study and project framework for Madurai and Nagercoil.

Madurai Corporation already has a project report prepared under the Engineering, Procurement and Construction (EPC) method. The proposed works include rehabilitation of sewerage infrastructure, establishing sewage collection systems in newly added areas, and works involving sewage treatment plants. The value of the Madurai project is Rs. 2,377 crore.

In Nagercoil Corporation, the proposed works cover areas without underground sewerage facilities. These include 111 km of sewage pipelines, 19.93 km of sewage pumping pipelines and the required pumping stations. The value of the proposed works is Rs. 189 crore. The two projects contain different infrastructure components.

The selected consultancy will have five months to submit its report. During the first two months, the feasibility report and project structure are to be prepared. During the following three months, tender procedures for selecting a private company are to be undertaken. Companies participating in the tender must pay an earnest money deposit of Rs. 50,000.

Applications must be submitted by October 15, according to the tender document. If the project is implemented, private-company participation is also expected in activities including maintenance and tax collection. The current process focuses on feasibility and project framework preparation before private company selection.

The tender issued by Tamil Nadu Urban Infrastructure Financial Services Limited provides for the consultancy to prepare the feasibility report and project structure before the subsequent tender process for selecting the private company. The Madurai project covers sewerage infrastructure rehabilitation, new collection systems and sewage treatment facilities, while the Nagercoil project covers pipelines and pumping infrastructure.

Administrative Measures

Madurai Corporation, Nagercoil Corporation, Tamil Nadu Urban Infrastructure Financial Services Limited, Municipal Administration Department

Rs.2,377 crore Madurai project, Rs.189 crore Nagercoil project, 111 km sewage pipelines, 19.93 km pumping pipelines

Private participation being explored, feasibility study tender issued, subsequent tender process planned for private-company selection

25 municipal corporations, five-month timeline, feasibility report and project structure in first two months, private-company tender activities in next three months, Rs.50,000 deposit, October 15 application deadline

The tender issued by Tamil Nadu Urban Infrastructure Financial Services Limited states that the selected consultancy must submit the feasibility and project-structure report within five months.