Transaction consultancy for the municipality of Chandigarh in India
Context
The Municipal Corporation of Chandigarh (CMC) aims to improve the city's water distribution and to achieve a service operating 24 hours a day, 7 days a week. The implementation of this project includes 5 components :
- Component 1: increase in storage capacity
- Component 2: improvement of the network with a view to uninterrupted operation (replacement of 25% of the existing network, installation of measuring instruments, etc.)
- Component 3: gradual transition to uninterrupted operation (network maintenance, detection of leaks, works aimed at improving performance)
- Component 4: capacity building
- Component 5: change management
Objective
Since the CMC lacks the skills to set up, operate and maintain an uninterrupted network, it plans to rely on private expertise through a 15-year DBO (Design, Build, Operate) contract.
The French Development Agency (AFD), which is financing the project, has asked ICEA/Espelia to ensure that the project’s implementation modalities are suited to its objectives, in particular regarding the choice of a “DBO” type contract.
Our contribution
Our team has provided transaction advisory assistance to the CMC and AFD through the following tasks :
- Clarification of expectations and constraints of the CMC and AFD
- Definition of criteria for comparing procurement options
- Review of the various options with the project partners
- Comparison and implementation of a decision support tool to select the best option
- Consolidation of the chosen option (preparation of a procurement plan, a timetable, a summary note) and preparation of a "Term Sheet" of the specificities of the DBO contract
- Consultation with private actors regarding the chosen characteristics
- Identification of CMC capacity building needs and drafting of the Terms of Reference for a long-term technical assistance
- Drafting of the DBO contract as well as the consultation documents
Our team has brought its expertise in contracting and in public-private partnerships (PPP) to develop a PPP contractual scheme fully adapted to the context and to the specificities of the project, in close consultation with the CMC and AFD teams.
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Espelia supports local authorities, public stakeholders and their partners in the design, management and transformation of local public policies. A consulting firm committed to serving the public interest, Espelia mobilises strategic, legal, financial and operational expertise to help territories build sustainable and resilient solutions.
