Vellakovil City Development Plan - Municipal

City Development Plan for Vellakoil Municipality SMEC India Pvt Ltd
Final Report TNUDP III
e) Drainage Charges
Table 8.19 Assumptions – Drainage Charges
The current drainage collection is Nil The same shall be 80%
The arrears drainage collection is Nil The same shall be 60%
f) Other income
The collection % of all other income is taken at 100%
h) Others
The collection % of all other items of income is taken at 100%
8.5.4 Annuity Factor
The Annuity Factor for the new loans works out as under :
Table 8.20 Terms of Loan Funding for Proposed Investments
Tenor 20 years 10 years
Interest Rate 9.50% 9.50
Repayment Period 15 years 8 years
Moratorium 5 years 2 years
Repayment Factor 0.13 0.18
Conversion Factor Calculation
a. Rate of Interest 9.5% 9.5%
b. Repayment Period 15 8
c. Loan Amount 17.00 1.00
Conversion Factor 2.17 0.18
Total Conversion Factor 2.36
Note : Sewerage and Water Supply Loan works out to 17% of total project cost identified. Other
Loans works out to 1% of total project cost identified.
8.6 PROJECT CASH FLOWS AND FOP RESULTS :
Detailed cash flows are worked out for each of the sub projects based on the assumptions with
regards investment phasing, financing pattern, additional operation and maintenance expenditure
and additional income out to proposed capital investments for the full project scenario. The net
project cash flows are then loaded on the existing revenues to test their impact on the overall
Municipality fiscal situation.
a) Income and Expenditure projections
Table 8.21 captures the Income and Expenditure projections for the next 20 years with potential
improvements and borrowings :
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