PROJECT

STRUCTURING AND
RISK MANAGEMENT-
CREATING ALANDUR
SEWERAGE SYSTEM

PRESENTED BY :
VAIBHAV BHAVSAR [PT100517]
SAURABH DUGAD [PT100917]
AJAY JADHAV [PT101117]
RISHABH SHAH [PT1020717]
RISKS ASSOCIATED WITH THE PROJECT
• Failure of coordination between different agencies

• Risks associated with cost estimates going wrong because TNUDF didn’t have much experience

• Getting funds for the project through borrowings was not possible for AM

• Raising funds directly from users was a financial risk

• Risk that PPP in STP may or may not work

• WTP survey was not in favour of assumption done in financial model to get 5000 Rs. As one time deposits

• Design risk associated with sewerage system and STP

• Operations of STP was a risk because history showed that STP whose operations rested with ULBs were not
in good condition
RISKS ALLOCATED AMONG DIFFERENT
PARTIES
• Project implementation and approvals-Steering committee

• Detailed engineering report and cost estimates – AM

• Design risk of STP and sewerage system – AM

• Construction,O&M , cost overruns risk of STP-Consortium of IVRCL

• Land acquisition of STP – AM

• Payment risk for sewerage system – AM

Payment risk for STP – AM, GoTN and TUFIDSL
RISKS LEFT UNATTENDED
• Technological risk
The electromechanical machinery was to be supplied by Wabag. There is no mention of the
controlling risk due to failure of technology. Hence, there is a technological risk.
INNOVATIVE ASPECTS OF PROJECT
• Raising funds directly from users of the project

• STP component through PPP was innovative because there was hardly any PPP in STP used elsewhere

• Door to door visits, newsletters, press releases to keep citizens informed

• Separate bank account for project to prevent misuse of collected funds

• Election of two members of Resident’s Welfare Associations for regular audit of bank account