Untapped potential of Public Infrastructure

By- Anoop Jha

Public Infrastructure – from Liability to Asset

In the majority of cities and towns of developing countries like India, developing and maintaining public infrastructure are perceived responsibility of governing authorities and it is usually a major source of expenditure in municipal finance. Though to make any infrastructure sustainable in the long run, whether public or private it has to be a source of constant or recurring revenue generation to at least partially meet its operation and maintenance expenditure or to reach the breakeven point. Collective public infrastructure in any city should ideally pay for its own operation and maintenance requirement to make it sustainable. There might be varying dynamics of income expenditure for individual public infrastructure but collectively they should take care of themselves in not immediately may be in long term.

Public asset for alternative revenue stream 

It’s high time that public infrastructure should acquire the status of asset rather than liability or a financial burden to state, that does not necessarily mean it has to become private venture or property. Governing authorities like states, municipal corporations and municipalities have to be little aware towards what precious assets they own and have to find out the innovative mechanisms to exploit the previously untapped revenue potential of these assets, for example they own the most precious chunks of properties in the strategic locations which are spatially scattered throughout the city and beyond, with no or negligible income from them.

There are enough resources within any given region, need of the time is to recognize the potential, identify the resources and formulise a mechanism for revenue generation. If governing authorities or anyone else thinks that this is a difficult task or vague assumption, they should approach any random businessman- small or large, any developer, any architectural, planning or consultancy firm, any resource management firm, any thinker or business guru or even any common citizen with that asset and they will find innumerous ideas, proposals, business plans and even willing investors. 

Future-proofing urban planning

By Anoop Jha

Understanding future dynamics of urban environment

Urban planning projects present a multifaceted and dynamics set of challenges over its project lifecycle and during its subsequent operational phase. Due to dynamic behavior, polycentric domain, complex cross-sectoral interaction, varying scale and time of execution and operation within urban environment it is difficult to perceive future problems, constraints and direction of growth.

Only possible solution to understand the future dynamics of urban environment is to extract static elements in terms of quantitative measurements from the array of dynamic qualitative urban environment and actions like climate, social interaction, active transportation, combining them with the static elements of city like urban built form, concealed infrastructure. Each element of this derived quantitative inventory need to be assigned some index based on its weightage, and based on these indexes a comprehensive urban vulnerability matrix need to be prepared.  After a thorough and periodic assessment of vulnerability indictors from evaluation matrix, relevant revitalisation, prevention and recovery strategies against each item of this matrix need to be listed to for future proofing urban development and environment.  

Pedestrian Vehicular conflict : why can’t we seem to find a solution?

By - Anoop Kumar Jha

Missing Human Behavioral Analysis aspect in Transport Simulation Model

No matter how functional and mathematically sound a transportation plan and related infrastructure design for any city or stretch appear before implementation, there is always a conflict between vehicular and pedestrian circulation which appears only once the transport plan is in place and functional, it’s the story of every city and every stretch. Blogs and forums are filled with discussions and captured photographs of such pedestrian vehicular conflicts.

It’s a conflict between pedestrians desire to take easiest and shortest route and transport planners age old scientific approach planning with modern simulation tools. Its conflict between “human desire” and “scientific approach”.  

In a country like India, apart from education and enforcement there is one missing crucial aspect which leads to pedestrian vehicular conflict in urban setting, that is understanding of human behavior and learning from past and other projects mistakes. It appears that common man collectively always appear smarter than the panel of planners, designers and implementation and enforcement agencies, because no matter how sound they make any system or transport plan people always find out loopholes in it. People are willing to take the dangerous shortcuts, break the law and even risk their life to reach the destination quickly. There is almost similar pattern and language of such human behavior across the cities and towns of India when it comes to intra city travel, but transport planners do not seem to observe and learn from such cases. Its high time that they should observe, document and incorporate human behavioral analysis in the transport simulation model to arrive at a successful transport plan for a city. 

Transport plan, systems and tools also need to be regionalized or localized, because what works in Bogota  or America or Europe might not work in Delhi or Surat or Jaisalmer  if replicated in-toto. 

Definition of “Per Capita Consumption” need to be modefied - Water Sector

By- Anoop Jha

Apparently “per capita consumption” figure is used in financials, estimates and projections of every project, and DPRs across the country and across the sectors, but apparently age old definition (Per Capita Demand in litres per day per head) and formula of “per capita consumption” seem to be flawed and vague. Let’s consider Water Sector for example.

There are few reasons for this apparently flawed 

First, this formula invariably assumes that all the water is being consumed at household, institutional or community level for some useful purpose, but that is not the fact. The fact is “the collective water losses at household and institutional level are huge in any given community, settlement, or housing society”, leaking taps, pipes due to “lack of maintenance and willingness to maintain” and water wastage related to casual behavior of users “due to lack of education and sense of responsibility”  are a regular phenomenon of almost every household. Planning bodies and Policy makers have to understand that unless they stop these water losses or unless they change the definition from  “Per capita Consumption” incorporating the water losses, there demand estimates, future projections, projects cost estimates, will inevitably  be vague and skewed,

Some interesting extract from the discussion on “India Water Portal” (indiawaterportal.org) on the similar subject are as follows-

Link: http://www.indiawaterportal.org/ask/5409

“ When the norm for a large city is 250 lpcd, it doesn’t mean the residents actually get or use 250 lpcd. A large city has many other water needs such as public use in offices, railways stations, commercial places, for fire fighting, public horticulture, etc. All these are distributed over the population and indicated as per capita use” - Chetan Pandit

“The norms do not take in to account the climate. No distinction is made between Delhi that has a huge water requirement for desert coolers in summer and a bath twice a day is not a luxury; Pune that uses some coolers but not as common as Delhi and usually bath once a day is enough; and Copenhagen where the maximum summer temperature in 17 C and most of the time it is below 10 C” -Chetan Pandit

“Water consumption is affected by various factors which are variable and hence it is difficult to precisely assess the demand of public. There are empirical formulas available for estimating a fair value of domestic consumption for design of water supply systems. However, Indian Standard (BIS):1172-1993 is the basis of 135 litres/capita/day. This 135 litres/capita/person includes drinking (5 litres/capita/day), Cooking (5), Bathing (55), Washing of clothes (20), Washing of Utensils (10), Washing & Cleaning of house (10) and flushing of toilets (30 litres/capita/day)” - J.Harsha

Second, basis, thumbrules, lifestyle, requirement and related values for arriving at “standard per capita water consumption” in different urban areas changes in courses of time and cahnge as per seasonal variation which need to be accounted for calculation per standard water consumption” Standards need to be revised after a certain time interval.

“Details of present norms for water consumption are available in CPHEEO Manual on Water Supply and Treatment and Per capita water supply in selected urban centers of India is available at Water Supply, Sanitation and Solid Waste Management in Urban Areas by National Institute of Urban Affairs, 2005”

Third, accuracy of standard per capita water consumption figure is directly proportional to the size of sample (no. of household) surveyed, which may vary from agency to agency which prepares the report. Larger the sample more realistic the results would be. There should be Policy norms for minimum size of sample to be surveyed and heterogeneity of the sample.

Conservation Projects: From Liability to Asset

By : Anoop Jha

Architectural conservation has traditionally been considered as public or state responsibility and very few private entities are interested in taking up such projects, though state like Orissa is having Public Private Partnership (PPP) Model for conservation projects. A country with rich history and centuries of traditions like India has also rich Architectural assets which are often neglected and difficult to conserve due to its sheer abundance, Though national and international agencies like “Archeological Survey of India (ASI), UNESCO, etc. are taking active measures to conserve the heritage of India, but it seems that it’s time that private entities and investors should come forward to conserve the architectural heritage of Nation. I think it can prove to be quite a lucrative option for private investors if government acts as a facilitator and if some relaxation is given in heritage conservation planning process along with some incentives. It would prove to be a win-win situation for both public and private entities.

This is how it will work. Architectural conservation projects have few elements in common –

●      TECHNIQUES – its technical aspects of conservations projects, there are technical guidelines, policy norms, etc. it’s simply art of engineering.

●      HERITAGE VALUE – every historic architectural asset has a heritage value attached to it, and if methodically and convincingly approached by private agencies, government or public agency will certainly come forward to facilitate the conservation project of any nature, because conserved and maintained heritage is an asset for any state, which they often fail to take care of because of other pressing welfare responsibilities and limited financial resources.

●      EMOTIONAL VALUE – It has high perceived emotional value for, a Nation, a State, a certain group, or certain individuals, this high emotional value can be translated into monetary value with certain effort and proper strategy

●  UTILITARIAN VALUE – This is the most important aspect of any conservation project because this is what makes it as a commercial viable project, to make this model viable government will need to act as a facilitator and will have to draft special policy considering the special and sensitive status of such projects, policy also have to incorporate privet participation and related relaxation in terms of some norms and subsidies etc. to attract the investment from private investors.

Commercial Development Cost: PPP Projects

Cost Comparision of Commercial PPP projects 
(Cost in Rs. Cr.)

Post by: Anoop Jha

PPP based Water & Sewage Infrastructure Costing

By - Anoop Jha


Cost Comparison of Water Supply, WTP & STP PPP projects 
(Cost in Rs. Cr.)

PPP model water projects

Water related projects vary in scale as well as nature, which ranges from National level river water management to state level irrigation projects to city level flood management to neighborhood level water supply and distribution system. considering the widespread and vital nature of water system these projects demands huge capital and recurring investments in Operation and Maintenance (O&M). Governments revenue inflow might not be sufficient to take care of all demands of water related projects, so long term private participation has been encouraged in recent past in India for commercially viable and attractive projects mainly in form of public private partnership (PPP), mostly in urban infrastructure segments  like water supply and distribution as well as health and sanitation. larger project baskets like flood management, irrigation canals, dams, etc are primarily under control of state and central government.  

Cost of Parking Infrastructure

Cost Comparision of Parking, Multilevel Parking (MLP) & Automated Parking PPP projects 
(Cost in Rs. Cr.)

Multi Level Parking

Post by: Anoop Jha     

PPP based Solid Waste Management (SWM) Projects

By - Anoop Jha

By- Anoop Jha


COST COMPARISION  OF SOLID WASTE MANAGEMENT (SWM) PPP PROJECTS IN INDIA

(Cost in Rs. Cr.)

PPP for solid waste management 

Here are some cost comparison figures of Solid Waste Management (SWM) Projects in India based on Public Private Partnership (PPP). It appears that now focus of municipal bodies has started shifting towards waste to energy generation which would prove imperative for sustainable cities. Earlier dumping the waste at disposal sites or incineration were the only few possibilities for ever-growing city waste management, but emergence of new technology like plasma gasification and vitrification (PGV) is showing way forward for waste to energy generation possibilities in environmentally sustainable ways compared to other historically prevalent waste management options.

Source: www.pppindiadatabase.com

Urban Infrastructure : Investment Vs Operations and Maintenance (O&M)

Investment Vs O&M

Urban Infrastructure Cost

Per Capita Investment Cost by Sector

(Rs at 2009-10 prices)

Source:  Report on Indian  Urban Infrastructure and Services 

Per Capita Operations and Maintenance Cost (annual) by Sector

Source:  Report on Indian  Urban Infrastructure and Services 

Urban Infrastructure Investment Requirement (2012-31)

(Rs crore)

                            

Source:  Report on Indian  Urban Infrastructure and Services 

Operations and Maintenance Expenditure by Sector (2012-31)

Source:  Report on Indian  Urban Infrastructure and Services 

Pattern of per Capita investment in different urban infrastructure sectors and O&M cost are somewhat different from each other, while Urban Roads demands more capital investment , Water Supply, Sewage, SWM, Urban Road & Transport require more O&M investment. 

"Water utilities in India are typically able to recover only 30-35 per cent of the operations and maintenance (O&M) cost.Even with current levels of highly inadequate service, solid waste management accounts for 25-50 per cent of a ULB’s expenditure (World Bank 2006), but cities recover less than 50 per cent of the O&M cost, according to a study by the Ministry of Urban Development, Government of India. ULBs will be required to invest 54 per cent on capital investment and close to 25 per cent on the O&M of physical assets by 2021-22. In practice, user charges cover less than 50 per cent of the O&M cost of basic infrastructure services in India, on an average"

Source:  Report on Indian  Urban Infrastructure and Services 

Urban Infrastructure Investment Requirement in India : 2012-31

Urban Infrastructure Investment Requirement: 2012-31 (Rs crore).

Total Expenditure        3918670

 Urban Roads              1728941 

 Urban Transport         449426 

 Renewal and Redevelopment including Slums 408955 

 Water Supply             320908 

 Sewerage                   242688 

 Storm Water Drains   191031

 Capacity Building       101759

 Traffic Support Infrastructure    97985

 Solid Waste Management         48582

 Street Lighting            18580

 Other Sectors             309815

"Almost 44 percent of urban infrastructure investment over the 20-year period  is accounted for urban roads. The backlog for this sector is very large, ranging from 50 per cent to 80 per cent across the cities of India.  Sectors delivering urban services such as water supply, sewerage, solid waste management, and storm water drains account for  about 20 per cent"

Source:  Report on Indian  Urban Infrastructure and Services 2009-2010

State wise types of Special Economic Zone (SEZ)

State-wise prevalent Public Private Partnership (PPP) format

[Handpicked Books]

Infrastructure priority Matrix of India

By - Anoop Kumar Jha

State-wise infrastructure priorities in India-