CONTENTS TABLE OF CONTENTS I LIST OF FIGURES IV LIST OF TABLES IV ABBREVIATIONS V EXECUTIVE SUMMARY VI CHAPTER 1 INTRODUCTION 1 1.1 BACKGROUND 2 1.2 PROBLEM STATEMENT 2 1.3 HYPOTHESIS 4 1.4 AIM 4 1.5 RESEARCH QUESTIONS 4 1.6 OBJECTIVES 5 1.7 STUDY METHODOLOGY 5 2 BDS FRAMEWORK FOR O&M COST RECOVERY 8 2.1 O&M COST RECOVERY 9 2.1.1 Why O&M Cost Recovery is Important? 9 2.1.2 Trends in O&M Cost Recovery 10 2.1.3 Addressing O&M Cost Recovery 11 2.2 FRAMEWORK FOR IMPROVING O&M COST RECOVERY 12 2.2.1 Role of Business Development Services in Urban Water Sector 13 2.2.2 How to Analyze BDS Markets? 15 2.2.3 What Tools can be used for Analyzing Markets? 15 2.2.4 What services to analyze? 16 2.2.5 What Interventions can be taken to Develop Markets? 17 2.3 BDS EXPERIENCE IN MALI 17 2.4 BDS EXPERIENCES IN KENYA 18 2.5 CONCLUSIONS 19 3 MARKET FOR ENERGY EFFICIENCY SERVICES IN GUJARAT 21 3.1 INTRODUCTION 22 3.2 ENERGY AUDIT 23 3.2.1 Things to Consider Before Implementing an Energy Audit 24 3.2.2 Steps for Conducting Audit 25 3.2.3 The Audit Report 25 3.2.4 Components of the System 27 3.2.5 Performance contracts 28 3.2.6 Components of performance contracts 29 3.3 MUNICIPAL ENERGY EFFICIENCY MARKET IN INDIA 29 3.4 DEMAND ASSESSMENT FOR MUNICIPAL ENERGY EFFICIENCY SERVICES IN GUJARAT 30 3.5 SUPPLY ASSESSMENT FOR MUNICIPAL ENERGY EFFICIENCY SERVICES IN GUJARAT 33 3.6 MUNICIPAL ENERGY EFFICIENCY INITIATIVE IN OTHER STATES 34 3.7 MUNICIPAL ENERGY EFFICIENCY INITIATIVE IN GUJARAT 36 3.7.1 Municipal Energy Efficiency Initiative in Anand 37 3.7.2 Municipal Energy Efficiency Initiative in Mehsana 38 3.7.3 Emerging Energy Efficiency Market Prospects in Gujarat 39 3.8 CONCLUSION 40 4 MARKET FOR WATER USE EFFICIENCY SERVICES IN GUJARAT 42 4.1 INTRODUCTION 43 4.2 WATER AUDIT 44 4.3 DEMAND ASSESSMENT FOR MUNICIPAL WATER USE EFFICIENCY SERVICES IN GUJARAT 45 4.4 SUPPLY ASSESSMENT FOR MUNICIPAL WATER USE EFFICIENCY SERVICES IN GUJARAT 48 4.5 MUNICIPAL WATER USE EFFICIENCY INITIATIVE IN OTHER STATES 50 4.6 MUNICIPAL WATER USE EFFICIENCY INITIATIVES IN GUJARAT 51 4.6.1 Municipal Water Use Efficiency Initiative in Anand 51 4.6.2 Municipal Water Use Efficiency Initiative in Mehsana 52 4.6.3 Municipal Water Use Efficiency Initiative in Kalol 52 4.6.4 Emerging Water Use Efficiency Market Prospects in Gujarat 53 4.7 CONCLUSION 53 5 FACILITATION MEASURES FOR BDS IN URBAN WATER 55 5.1 CHALLENGES IN BDS FOR URBAN WATER 56 5.1.1 Energy Efficiency Market 56 5.1.2 Water Efficiency Market 56 5.1.3 Common Challenges in market 57 5.2 FACILITATION MEASURES FOR BDS IN URBAN WATER 57 5.2.1 Concerns for BDS 57 5.2.2 Supply Side Measures 59 5.2.3 Enabling Environment Measures 60 5.2.4 Demand Side Measures 60 ANNEXURE 62 ANNEXURE-I 63 TYPES OF BUSINESS DEVELOPMENT SERVICES 63 ANNEXURE-II 64 BDS EXPERIENCE IN MALI 64 5.2.5 The role of the commune in public water services 64 5.2.6 The Roles of Different Actors 64 5.2.7 Support Mechanisms 65 5.2.8 Decision support tools 65 5.2.9 Financial mechanisms 66 5.2.10 Strategic Directions defined by the Malian Government 66 ANNEXURE-III 68 BDS EXPERIENCE IN KENYA 68 5.2.11 Scheme development Support 68 5.2.12 Post-implementation phase support: 68 5.2.13 Market assessment of business development services 69 5.2.14 Enabling environment for efficient bds 69 5.2.15 Facilitating BDS development 70 5.2.16 Recommendations 71 REFERENCES 72