New Pench-IV water plant to cost 72% more
NAGPUR: Amid weak financial condition, the Nagpur Municipal Corporation (NMC) is set to bear additional cost of Rs21 crore on new Pench-IV water treatment plant, which is under construction at Godhni. The cost has increased from approved Rs29.05 crore to Rs50 crore (72%) following inordinate delay in completing the project. Bafflingly, the civic body is constructing the plant on PPP model and will have to pay back the investment made by the operator along with operation and maintenance charges for 10 years.
Mayor Anil Sole along with ruling party leader Pravin Datke, chairman of water works committee Sudhakar Kohle, superintending engineer Prakash Urade and others inspected the project work on Saturday. After the visit, Kohle in a press conference said that Sole has directed the officials to complete the project by January-end. "City will get additional 115 million litres per day (MLD) water with commencement of the plant from February. Around 3.50 lakh population in West, South-West, South and Central Nagpur will be benefited," he said.
On the project cost, Kohle said it was increased to Rs50 crore from Rs30 crore approved earlier. "Project cost escalated due to inordinate delay in the works. The project faced many hurdles, including delay in acquisition of land from farmers, permissions from various departments. However, 90% project is complete," he added.
According to the NMC's monthly progress report of JNNURM projects, the Pench-IV plant is a part of Pench-IV water supply project - part-2 was approved by the centre on December 28, 2006. In fact, the NMC is facing additional cost of Rs48.08 crore on the entire project. The approved cost was Rs61.96 crore and it increased to Rs110.04 crore during the work order stage. According to the report, the project was to be completed in November 2012.
Most shockingly, the water treatment plant too is being constructed on PPP model but it was revealed only now at the press conference by Kohle. "Veolia Water is the PPP operator who will also operate and maintain the plant," he said.
According to details given in the report, the NMC went on to execute the entire Pench-IV water supply project on PPP model but could not receive any response.
A senior NMC official revealed some startling facts behind the PPP project. "The treatment plant will cost Rs50 crore, of which Rs20.33 crore will come from the Centre and state governments. NMC was supposed to spend its share of Rs8.71 crore. Veolia Water will invest the NMC's share and also escalation amount of Rs21 crore. NMC will have to pay back Veolia Water total Rs30 crore in 10 years. Besides, the NMC will also pay Rs30 crore to Veolia Water for operation and maintenance of the plant for 10 years," he said.
Source - TOI - timesofindia.indiatimes.com/city/nagpur/New-Pench-IV-water-plant-to-cost-72-more/articleshow/27040530.cms
Mayor Anil Sole along with ruling party leader Pravin Datke, chairman of water works committee Sudhakar Kohle, superintending engineer Prakash Urade and others inspected the project work on Saturday. After the visit, Kohle in a press conference said that Sole has directed the officials to complete the project by January-end. "City will get additional 115 million litres per day (MLD) water with commencement of the plant from February. Around 3.50 lakh population in West, South-West, South and Central Nagpur will be benefited," he said.
On the project cost, Kohle said it was increased to Rs50 crore from Rs30 crore approved earlier. "Project cost escalated due to inordinate delay in the works. The project faced many hurdles, including delay in acquisition of land from farmers, permissions from various departments. However, 90% project is complete," he added.
According to the NMC's monthly progress report of JNNURM projects, the Pench-IV plant is a part of Pench-IV water supply project - part-2 was approved by the centre on December 28, 2006. In fact, the NMC is facing additional cost of Rs48.08 crore on the entire project. The approved cost was Rs61.96 crore and it increased to Rs110.04 crore during the work order stage. According to the report, the project was to be completed in November 2012.
Most shockingly, the water treatment plant too is being constructed on PPP model but it was revealed only now at the press conference by Kohle. "Veolia Water is the PPP operator who will also operate and maintain the plant," he said.
According to details given in the report, the NMC went on to execute the entire Pench-IV water supply project on PPP model but could not receive any response.
A senior NMC official revealed some startling facts behind the PPP project. "The treatment plant will cost Rs50 crore, of which Rs20.33 crore will come from the Centre and state governments. NMC was supposed to spend its share of Rs8.71 crore. Veolia Water will invest the NMC's share and also escalation amount of Rs21 crore. NMC will have to pay back Veolia Water total Rs30 crore in 10 years. Besides, the NMC will also pay Rs30 crore to Veolia Water for operation and maintenance of the plant for 10 years," he said.
Source - TOI - timesofindia.indiatimes.com/city/nagpur/New-Pench-IV-water-plant-to-cost-72-more/articleshow/27040530.cms