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G. Gurumurthy

The monitoring bodies would evaluate the scheme implementation and see whether the work is being done in line with the construction agreement.

COIMBATORE, June 21

THE flag-off of the first private water project intended to benefit Tirupur has set in motion the supervisory mechanism to monitor the progress of the BOOT project.

The New Tirupur Area Development Corporation (NTADCL), the special purpose vehicle to implement the Rs 960-crore project, has appointed at least two external consultants including an independent engineering firm who will periodically monitor the progress of the Tirupur water/sanitation project.

These bodies would also evaluate the scheme implementation by the BOOT operators and engineering contractors so as to see whether the work is being done in line with the construction agreement, according to sources close to NTADCL.

GKW Consulting Engineering Services who have been appointed as the owner's representatives (i.e they will represent NTADCL) will supervise the construction of the Tirupur project implemented by the BOOT operators, Mahindra & Mahindra, Bechtel and the United Utilities of UK.

Similarly, the special purpose company has engaged Pell Frischmann Water Ltd, the UK-based Engineering group as independent engineers to look after the progress of the scheme implementation. The idea behind engaging external supervisors is mainly to ensure that the scheme execution adheres to the construction agreement entered into by the BOOT operators with NTADCL for the Tirupur water supply and sewage project.

In addition, NTADCL has also tied up with S.B. Billimoria and Company who will be its external auditors. The special purpose company is also expected to shortly finalise an insurance package for the Tirupur scheme with the United India Insurance Company.

The sources told Business Line that with most of the groundwork for the project had already been initiated, NTADCL was expected to initiate the `mobilisation advance' to be given to the engineering contractors for the Tirupur project whose work is expected to start shortly.

Besides Mahindra & Mahindra, Hindustan Construction Corporation and Larsen and Toubro are the engineering-procurement-construction (EPC) contractors selected for the project. The BOOT model for Tirupur water project, the first private water supply scheme in the country, has certain unique features to protect the interests of the investors funding the project as a hedge against risk elements.

One such novelty is the creation of a `Water shortage fund'. Before the commencement of the commercial operation of the BOOT project, the Government of Tamil Nadu will create a specified sum as the Water Shortage Fund, which would be parked in the public deposit (PD) account.

This risk fund would be drawn by NTADCL in the extreme event of water shortage in the source river, so as to pay the interests and operative expenses of the BOOT project.

The creation of this fund, according to sources, is only of `notional' value because in the last 15 years or so, it has been observed that the water level in the source river never ran below the required levels. Even in the worst shortage conditions, the water flow levels stood 15 times the NTADCL's requirement.

At the water distribution point in Tirupur local area covered by the NTADCL's project, 250 km length of pipelines is already available and the promoters would add an additional 50-km length in addition to erecting 9 more overhead water tanks to facilitate distribution. If needed, these capacities would be enhanced.

The sewage system, being planned as part of the project and including the sewage treatment plant, would be built at a cost of Rs120 crore. Currently Tirupur badly lacks in sewage facility. It is said that on the completion of the BOOT project, Tirupur would have its sewage connectivity level going up to 60 per cent, next only to Chennai city.

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