Recent Projects in Urban Development

Consulting services for national urban infrastructure fund (UIF)
The objective of this assignment is to assist the Ministry of Urban Development, Government of India, and KfW in exploring the potential of development of PPP-UIF and institutional design of the proposed fund. The assignment entails determination of the necessity for institution of PPP UIF. CRISIL Infrastructure Advisory has successfully completed this phase of the assignment recently and has been accorded approval by the Ministry of Urban Development to proceed to Phase II that is to facilitate in development of the institutional design of the proposed PPP-UIF and undertake all preparatory activities required for setting up the fund. The fund will have a significant impact in promoting private sector investment in urban infrastructure sectors in India.

Appraisal of reforms under JNNURM
GoI has proposed substantial assistance through JNNURM over the seven-year period. During this period, funds shall be provided for proposals that would meet JNNURM's requirements. Assistance under JNNURM is additional central assistance, which would be provided as grant (100 per cent central grant) to implementing agencies. The thrust of the JNNURM programme is to ensure improvement in urban governance and service delivery so that ULBs become financially sound and sustainable for undertaking new programmes. An MoA between states/ULBs/parastatal agencies and GoI, a prerequisite for accessing central assistance spells out specific milestones to be achieved for each item of reform.

The objective of the assignment is to undertake appraisal and monitoring of the reforms signed under JNNURM and to ensure that implementation of the agreed mandatory and optional reforms is according to the agreed timelines and is progressing according to the commitments to achieve the desired objectives/goals under the mission. CRISIL Infrastructure Advisory has been recently mandated by the Ministry of Urban Development to undertake the appraisal of reforms under the JNNURM programme in nine states across India.

Bid Advisory services for implementation of Provision of Urban Amenities in Rural Areas (PURA) scheme in PPP framework
The PURA scheme envisages rapid growth of rural India. It is envisaged that given this connectivity and infrastructure, the rural population can be empowered and enabled to create opportunities and livelihoods for themselves on a sustainable and growing basis. Some of the areas of work are:

  • Knowledge connectivity in the form of good educational and training institutions.
  • Road, transportation and power connectivity.
  • Electronic connectivity in the form of reliable telecom, internet and IT services.
  • Market connectivity to enable farmers to get the best prices for their produce.
  • Provision of drinking water and upgrade of existing health facilities.
  • Overall development of civic amenities.

Developing financing strategy for four cities in Maharashtra for the World Bank
The World Bank has appointed CRISIL Infrastructure Advisory to develop a financing strategy for four towns in Maharashtra. The towns are covered under the JnNURM scheme and are currently in the process of developing several projects in their respective cities. As the investment requirements of these cities far exceed their capacity, meeting the investment requirements remains a challenge. In addition, there is no clear road map on the future revenue position in line with the reform agenda already undertaken by these ULBs. Through this engagement, CRISIL Infrastructure Advisory will develop a detailed medium term financial strategy that would enable the ULBs to improve their financial health. In addition, detailed financing plans for two projects would be developed. At the end of this exercise, from the set of these four towns, one project would be prepared for market borrowing.

Financial assessment of Bruhat Bangalore Mahanagara Palike
The core Bangalore area, expanded to include the surrounding eight urban local bodies and 108 villages to form the Bruhat Bangalore Mahanagara Palike, expand the limits of the city corporation to about 800 sq km from about 270 sq km. Naturally, the investments for meeting the infrastructure requirements increased manifold and a detailed assessment was required to be undertaken in order to assess the investment capacity of the erstwhile Bangalore Mahanagara Palike (BMP) and the parastatal bodies, such as the Bangalore Water Supply and Sewerage Board (BWSSB) and the Bangalore Development Authority (BDA). CRISIL Infrastructure Advisory undertook a detailed financial assessment of all these bodies and provided a road map for meeting the investment requirements for BBMP. This was a crucial exercise undertaken on behalf of the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) before forming BBMP. Preparation of the manual on good practices of financial management for ULBs of Madhya Pradesh, the Urban Administration and Development Department (UADD), under DFID, funded the Madhya Pradesh Urban Services for the Poor Project. CRISIL Infrastructure Advisory assisted UADD and the Government of Madhya Pradesh (GoMP) to prepare a comprehensive manual on good practices of financial management for uniform adoption by the ULBs of Madhya Pradesh.

Preparation of business plan for the Maharashtra Urban Infrastructure Development Company Ltd. (MUIDC)
The business plan for MUIDC will be contingent to the role that is envisaged for it. The approach involved identifying the institutional role that MUIDC is to play in the context of Maharashtra. This was followed by suggesting an appropriate organisational and governance structure. Lastly, based on the institutional role, clarity and organization, and governance structure conceptualised, potential sources of revenue and the capital structure for MUIDC were defined.

Support for PPP/outsourcing in municipal activities
MPUSP is a five year (2006-2011) partnership between GoMP and the UK DFID for achieving a sustained reduction in the vulnerability and poverty of the urban poor in the state. Through the MPUSP programme, GoMP intends to increase the capacity of 11 municipal corporations to implement public-private partnerships to improve municipal finances, delivery of municipal services, and other municipal functions. The short-listed municipal corporations are Burhanpur, Dewas, Katni, Khandwa, Ratlam, Rewa, Sagar, Satna, Singrauli, Jabalpur, and Ujjain. In the above context, MPUSP has sought technical assistance (TA) from CRISIL Risk and Infrastructure Solutions Ltd to develop and implement such projects through PPP. The objective of this TA is to identify potential PPP projects within the urban sector in the participating ULBs and procure private developers for the same. A total of 20 projects having PPP potential have been identified by CRISIL Infrastructure Advisory. Currently, these projects are being evaluated for their feasibility.

Exploring Options for PPP in seven Yamuna Action Plan (YAP) towns
As the common reform implementer for PPP projects, CRISIL Infrastructure Advisory is required to assist ULBs to identify potential PPP projects, developing the project concepts, and managing the bidding process leading to selection of private parties for implementation of the identified PPP projects. CRISIL Infrastructure Advisory is also conducting capacity-building activities in the form of workshops on PPP and a manual for PPP projects aimed at ULBs. CRISIL Infrastructure Advisory has identified and developed three projects on a PPP basis in Faridabad, Sonepat, and Yamunanagar, which are currently in different stages of bid process management. The project is expected to play a significant role in ensuring a common and shared understanding of PPP in the context of urban infrastructure across ULBs in the seven towns of Haryana.

Preparation of a comprehensive mobility plan and project proposal for a bus rapid transit system for Pimpri Chinchwad Municipal Corporation
The engagement involved preparing a project proposal for developing a bus rapid transit system for the Pimpri Chinchwad Municipal Corporation for availing funds under JNNURM scheme. CRISIL Infrastructure Advisory developed the comprehensive mobility plan for BRTS. This included developing detailed traffic assessment and planning, land use planning and establishing the financial feasibility for the project. CRISIL Infrastructure Advisory also assessed the extent of funding sources to implement the project; so that a comprehensive mobility plan for integrating land use with the transit system network could be developed. Based on this assessment, the quantum of funds to be availed from the central government through the JNNURM scheme was ascertained. As this exercise involved integration of the bus rapid transit system with that of the Pune Municipal Corporation, the exercise involved extensive interaction with the Pune Corporation in order to assess the feasibility of integration and other revenue-sharing arrangements.

Innovative financing options for municipal infrastructure sector
The purpose of the assignment is to identify "bankable" urban infrastructure projects in JNNURM cities/towns within Gujarat, Maharashtra and Karnataka, so as to enable the Asian Development Bank to explore for non-sovereign local currency-lending opportunities. The scope of services is to identify bankable urban infrastructure projects and prepare initial concept papers for potential non-sovereign local currency lending, including PPPs and other innovative financing options for municipal infrastructure. Urban Finance Assessment & Framework Design for Karnataka.

Andhra Pradesh Urban Infrastructure Development and Finance Corporation
One of the most pioneering engagements in the country was developing a state-level urban finance framework, which CRISIL Infrastructure Advisory undertook for the Government of Karnataka through the World Bank. The engagement captured a financial assessment of state-level finances and specifically the urban finance flows from the state government to the urban sector. The key revenue and expenditure trends of all the urban local bodies in the state were developed in order to assess the urban finance position. Detailed frameworks were developed covering the devolution framework, capital investment framework, performance benchmark framework, and institutional framework for the state. The urban finance framework for the state set the stage for several reform initiatives in the state.

Assessment of the fiscal situation of ULBs, identify policy initiatives at the state and ULB level for improving Urban Service Provision in Gujarat, Gujarat Urban Development Company Limited, 2007
The Government of Gujarat (GoG) has embarked upon extensive urban reforms, with the objectives of improving urban governance and advancing decentralisation in the context of 74th Constitutional Amendment. The state also proposes to broaden the reform process to all the municipal bodies in the state in the areas of basic urban services. As part of project preparation, a comprehensive review of the existing urban financial framework has been proposed. In this context that GUDCL, the nodal agency for the GUDP project, mandated CRISIL Infrastructure Advisory for assessing the fiscal situation of the ULBs and identify policy initiatives at the state and ULB level for improving urban service provision. The assignment identified the flow of municipal finance for urban infrastructure delivery, its utilisation pattern, and its monitoring mechanism. The recommendations covered the institutional reforms for market access by ULBs for urban service provision and an effective performance-monitoring mechanism.

Karnataka Urban Water and Sanitation Development Program (KUWSDP) road map
The Water and Sanitation Program of the World Bank appointed CRISIL Infrastructure Advisory to develop a road map for the Karnataka urban water and sanitation sector. Already as part of the reform process in the state for the water sector, several studies were being undertaken by the KUIDFC to roll out the urban drinking water and sanitation policy objectives. A culmination of all the studies with the updated financial requirements was the main objective of this engagement. It was envisaged that this study will pave the way for policy roll out through a road map and a detailed implementation plan. Towards this, scope of work included financial assessment of the sector, including the ability of the ULBs to sustain investments, the investment requirements for the medium term (five-year timeframe) and the strategies to achieve the same.

Assistance to Pimpri Chinchwad and Nashik Municipal Corporation (NMC) in implementation of MoA under JnNURM
Nashik Municipal Corporation and PCMC have approached the Government of India (GoI) for funding under the JNNURM. Accordingly, the cities have got their City Development Plan (CDP) approved by the Ministry of Urban Development (MoUD) and have submitted DPRs for approval by the MoUD. The respective City Corporations have appointed CRISIL Infrastructure Advisory to provide advisory assistance for implementation of reform agenda with respect to the time frame as agreed with MoUD. A two-member team is stationed at the Corporations with experts being brought in as and when required. Both cities have fared very well and have received an A+ grade during evaluation of the progress made by the state government.

Study on municipal finances for a paper to be presented to the Planning Commission by World Bank
The Planning Commission is in the process of drawing up its 11th Plan Document (2007-2012) and as an input to the plan for the urban sector, requested the Bank to produce two papers: Urban Strategy for India 2025 and a Megacities Strategy. One of the key sections of this Urban Strategy paper being prepared by the Bank would be on Municipal Finance and to support preparation of this section of the Urban Strategy Paper, the World Bank engaged CRISIL Infrastructure Advisory to undertake a review of urban finances in India, review of capital financing of urban projects, and ULBs' access to financial markets and Identify key policy impediments for accessing financial markets by ULBs

Implementation of administrative reforms, Nashik Municipal Corporation (NMC)
Administrative reforms aim at instituting better human resource management systems, reduction in establishment expenditure by introducing voluntary retirement schemes, non-filling up of posts falling vacant due to retirement, extensive use of outsourcing, performance review and management mechanisms, and achieving specified milestones in this regard.

To realign the corporation with respect to its current and future roles and responsibilities and to equip itself for handling the system in an efficient manner, NMC approached CRISIL Risk and Infrastructure Solutions (CRIS) to undertake capacity building and skill enhancement measures as part of their administrative reforms agenda under JNNURM. CRIS, as part of this initiative, organised three workshops in the areas of 1) Financial Management, 2) PPP and 3) Service Level Benchmarking (SLB), which were attended in large numbers by both the officials and the elected representatives of NMC.

Bid Process Management services for development of bus terminal and parking lots in PPP format in various states
CRISIL Infrastructure Advisory has assisted several state government agencies in Gujarat, Madhya Pradesh, Karnataka, Tamil Nadu, and Haryana in improving urban transport infrastructure. The specific services provided include undertaking detailed feasibility studies, developing concept plans, preparing project structures, defining risk-sharing principles, preparing bid documents, and undertaking bid process management for development of bus terminals and parking lots with or without additional commercial exploitation options. Each of these new projects will enable the respective cities in decongesting the city, provide improvised services to passengers, and improve overall service quality of the corporations.

Bid Process Management for Municipal Solid Waste Management Project for Gujarat Urban Development Company Ltd
The Ministry of Environment and Forests, Government of India, has enacted the Municipal Solid Waste (Management and Handling) Rules, 2000 vide its S.O. 908(E). These municipal solid waste rules are applicable to every municipal authority, making it mandatory for every municipal authority for implementation of these rules and for development of necessary infrastructure for collection, segregation, storage, transportation, processing, and disposal of municipal solid waste. In light of the above, the Government of Gujarat vide resolution no. urban/2005/447/1/UM dated 13th September 2005, designated the Gujarat Urban Development Co. Ltd (GUDC) as the nodal agency to implement the state-wide Municipal Solid Waste Management Project (MSWMP). Subsequently GUDC mandated CRISIL Infrastructure Advisory for providing Bid Process Management Advisory Services.

Assistance in implementation of accounting reforms for Nagpur Municipal Corporation (NMC), Maharashtra
NMC engaged CRISIL Infrastructure Advisory to assist it in implementing accounting reforms based on the double-entry accrual-based system. The scope of this assignment included implementation of accounting reforms on a double-entry basis at NMC by following the guidelines and policies framed by the Government of Maharashtra and the best international practices in accounting.

CDPs for Pune, Nagpur, Vadodara, Pimpri-Chichwad and Faridabad under JNNURM
Out of 63 cities selected under this prestigious programme of Government of India, CRISIL Infrastructure Advisory is proud to have prepared CDPs for 5 Million plus cities of India namely Pune, Nagpur, Vadodara, Faridabad, and Pimpri-Chinchwad under JNNURM, all of which are large and vibrant urban centers. The CDPs were aimed at developing a long-term infrastructure plan. Scope of services included:

  • Growth Management and Development Objectives: Recommending the most appropriate growth management strategy, from alternative scenarios
  • Strategic Plan: Formulated a long-term plan identifying areas of development and physical requirement, special attention was to address issues regarding concerns of urban poor
  • Investment Program: For state-level Initiatives and development of an affordable investment programme within the financial capacity of the Corporation (internal sources, external borrowings and private sector participation) followed by the identification of high-priority investments and interventions. A Capital Investment Program (CIP) was prepared for short, medium and long term. This included identification of the sectors/areas where the work of detailed project preparation is required.
  • Assessment Report: It comprised the current physical and institutional environments, which will lead to ensuing further development project
  • Stakeholder's Consultation: The workshops were very successful and well received with active participation by officials from all the concerned departments.
  • Citizen Surveys Were conducted to have first-hand information of the assessment of the services being provided and their expectations. The CDP had identified an investment of Rs.63000 million for Pune, Rs.35,000 million for Nagpur, Rs.23,910 million for Vadodara, Rs.20,490 million for Faridabad, and Rs.39,000 million for Pimpri-Chinchwad. As on date, all CDPs prepared by us have been appraised and approved by the Government of India.

In addition to the above, CRISIL Infrastructure Advisory prepared CDPs for 22 towns of India in Maharashtra, Tamil Nadu, Gujarat, Haryana, and Rajasthan under the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) Scheme of the Government of India.

Appointment as project development consultant for development of various Infrastructure projects on BOT/PPP basis by Zilla Parishad, Aurangabad
Aurangabad, one of the fastest growing cities of India, has witnessed good pace of growth in the last two decades due to increase in industrialisation and tourist traffic. To capitalise on the recent development that is happening across the city, the Zilla Parishad envisages development on its lands through the PPP mode. As a stepping stone for this multi-prolonged strategy to develop various parcels of land in PPP mode, the Zilla Parishad has appointed CRISIL Infrastructure Advisory as a project development consultant for the development of its land parcel at CTS No. 3319, Aurangabad. The overall objective of the assignment is to assist the Zilla Parishad with Market Demand & Feasibility study (Phase I) and Bid Process Management (Phase II). CRISIL Infrastructure Advisory has recently successfully completed Phase I of the project and has been accorded approval by Zilla Parishad to proceed to Phase II of the project that is Bid Process Management.

Urban Development