The AMC has initiated public-private partnerships aimed at improving the streets of Ahmedabad to make them efficient and safe. Under this project, streets are to be designed and constructed to ensure smooth flow of traffic while ensuring the safety of pedestrians, reducing pollution and beautifying the cityscape.

In Ahmedabad roads cover approximately 8% of the AMC area. The total length of all the roads is 1217 Km of which 1050 Km are surfaced. Till recently, most roads consisted of no more than an asphalt strip in the centre, dirt on either side, rudimentary street lighting and a haphazard maze of utility lines underneath. With rapid increase in traffic volumes, in the last decade the road network of Ahmedabad has come under severe strain. Due to a lack of well designed streets, traffic in the city is disorganized and slow, pedestrians are unsafe and noise and air pollution are high. The annual expenditure on road maintenance in Ahmedabad was as low as Rs. 10 million per year till 1994.

From November 1994 onwards, AMC increased its financial and management capacity by diligently enforcing the rule of law, and by rejuvenating the revenue recovery systems. Following this, AMC embarked upon a major program of road improvement. This included:

The entire systems of road construction and maintenance which was prevalent in Ahmedabad was incapable of meeting the new demands generated by AMC's road improvement drive. To solve this, AMC brought in larger contracting firms which had the required technical and management capacity. A computerized hot mix plant was set up for the first time in Ahmedabad. This facilitated quick and timely supply of hot mix for road laying.

In two and half years, a total of 340 Kms. of roads have been resurfaced at a cost of Rs. 600 Million. Rs. 13 million have been spent on improving street lighting. Work has commenced on the widening of three bridges 25 Km of major roads have been provided with footpaths and 45 Km have been proved with central verge at a total expense of Rs. 35 million. Services ducts have been put in at all major junctions.

As part of AMC's initiative in forging urban partnerships, the C.G. Road, a prime business and commercial artery of Ahmedabad, has been redeveloped as a pilot project. This has been taken up by the AMC in partnership with the Arvind Mills Ltd., a leading industrial group.

The estimated project cost was Rs. 35 million. AML has put in Rs. 35 million. All additional costs are borne by the AMC. AML will recover its contribution from advertising and parking revenues. Following recovery of capital investment, these revenues will go to AMC.

The design was prepared by M/s Hasmukh C. Patel (HCP), a private architecture and planning firm. Prof. Allan Jacobs (Univ. of Cal. at Berkeley) an authority on the design of streets was invited in Jan 1996 by the AMC and Environmental Planning Collaborative to conduct a design workshop to sensitize officers of AMC and other public agencies on street design aspects. During his visit Prof. Jacobs reviewed the design of C.G.Road.

The project was coordinated by a committee, headed by the Municipal Commissioner, with representatives of AML. HCP and Dalal Consultants Ltd., a private consulting firm ho undertook the project management. JMC Projects (India) Ltd. a leading construction firm was appointed to execute the redevelopment of C.G.Road.

The AMC has undertaken an initiative to increase greenery in the city as part of its efforts forurban environmental management. This multifaceted program looks at parks, gardens, roadside tree plantation, traffic islands, open plots, ponds, river bank and AMC installations. It is being undertaken in partnership with those who have a stake in the city - industrial houses, community organizations, schools and local residents. By offering opportunities for the citizens to participate in the greening of the city, the AMC hopes to foster greater awareness of the importance of natural space and the need for all citizens to take responsibility for environmental quality. Due to these efforts, the city of Ahmedabad received a Green City Commendation Award in an international competition in which 600 cities from all over the world participated.

To develop urban forests in vacant AMC plots in partnership with community based organizations (CBOs) and NGOs
Capital expenditure including land and water is provided by AMC, while the CBO/NGO are responsible for administration and management
The community has the option to undertake agro forestry and other remunerative activities
27 plots were assigned to 13 CBOs/NGOs, with the active involvement of the USAID as the facilitator but 4 NGOs carried out the work satisfactorily.

To develop plantation on both sides of all the roads in Ahmedabad with the active involvement of private sector companies
Private companies pay for the saplings and tree guards, while the AMC undertakes plantation and maintenance
200,000 saplings have been planted so far under this partnership

To beautify and maintain the gardens and traffic islands in Ahmedabad with total involvement of private sector companies in the design, financing, development and maintenance
All capital and recurring expenditure to be met by the private sector companies with the AMC providing the logistic support and overall coordination
The Law Garden, Parimal Garden, Indulal Yagnik  Park, Vallabh Sadan Udhyan and Lok Manya Tilak Baug have been developed with the active involvement of five leading industrial groups so far

Till recently, parks and gardens in Ahmedabad were notorious for the activities of all sports of anti-social elements. The general public hesitate and even feared to go there. In the last three years, this has been turned completely around. AMC has given a facelift to the parks and gardens in the city an improved facilities for relaxation and recreation.The AMC owns and maintains 76 parks and gardens and 96 traffic islands. There are 9 gardens which are more than 5 acres in area. AMC is working with five leading industrial houses to upgrade and maintain gardens previously maintained by the AMC. The Law Garden (8 acres), Parimal Garden (10 acres), Indulal Yagnik Park (2 acres) and Shri Vallabh Sadan Udhyan (2 acres) have been developed in this manner in lieu of advertising rights in the garden. Many of the larger traffic islands in the city have also been handed over to private companies for beautification and maintenance on similar lieus.
In other parks and gardens, AMC has undertaken extensive plantation and landscaping with its internal resources. It has also developed an Ayurved garden

There are total of 96 islands in the city, out of which 35 islands have adopted by varios companies for upgradation and maintenance with fountains and gardens. There are  52 fountains in the city.

10,000 saplings have been planted on the roadsides with private sector participation. Private companies pay the expenses for tree plantation on specific stretches of road. The respective companies are allowed to display a discreet logo on the tree guard. In 1995 and 1996, 17 private companies came forward to sponsor a total of 7150 tree guards at the cost of Rs. 7.15 million. AMC has supplemented it with its own share of planting . For the first time, AMc has planted two year old saplings, thus increasing the survival rate to nearly 100% Extensive efforts are being made to water the plants during the nights so that traffic is not disrupted.

Kankaria lake is one of the most popular recreation spots in Ahmedabad. At the centre of this artificial lake is an island with a small garden. The lake is surrounded by a circular road with a zoo, gardens, natural history museum, amusement park, aquarium, party plots, children's park and eating joints. The whole area is being redeveloped in partnership with a private sector company. The estimated expenditure is Rs. 50 million. The design has been prepared by the Centre for Environmental Planning and Technology, Ahmedabad. The salient features of the redevelopment are (1) extensive tree plantation in conformity with a new landscaping plan, (2) creation of an aviary, (3) redevelopment of the zoo, (4) landscaping of the island, (5) expansion of amusement park and (6) construction of overhead pedestrian bridges.

The AMC has initiated projects to create two city forests on vacant municipal land. One of these is proposed on 100,000 sq.m. of land around an old stadium. The other parcel of land, 445 hectares in area, is on the river bank towards the southern part of the city. This will be adjacent to a proposed International Finance and Trade Centre.

AMC distributes free saplings to the public during the monsoon season from the gardens as well as through a door to door campaign. In the last three years, 325,000 saplings were distributed for plantation in their own locality. A program named Van Mahotsav (Forest Festival) was organized in 1997 and 1998 involving school children, NGOs. AMC councilors and interested groups 50,000 saplings were planted. The forest department has been allotted open space for plantation by the AMC. In 1996 they planted 5000 saplings on two plots.

The AMC has embarked on a multi-pronged effort to tackle the problem of solid waste management to improve civic health and hygiene. It has spruced up its own system by acquiring the latest equipment and improving the logistics of collection and disposal. It has also pioneered a participatory approach involving the community, NGOs and private companies to improve the system. For the year 1997-98, AMC has allocated an additional amount of Rs. 90 Millions for upgrading the system.
Aimed at improving the hygiene and sanitation in the city, the partnership focuses on collection and disposal of solid waste using eco friendly technology and recycling.
The neighborhood/doorstep level collection system involves local community, NGOs and AMC as partners.
The city level disposal is organized by AMC in partnership with a private sector company (EXCEL Industries) and a cooperative body (Sri Khadi Gramodyog Parishad).
With the introduction of source segregation, efficiency is achieved in the recycling process resulting in higher income generation for the informal sector.
The eco-friendly system of disposal of solid waste ensures direct savings to the AMC in the form of landfill sites.

AMC collects over 1250 tons of waste every day from the city. This includes garbage fron households, commercial aras and specialized markets and building debris. Over 80% of the garbage generated in a day is removed the same day. The garbage is disposed through landfill at Pirana.

Safai Kamdars (sweepers) are allotted specific beats organized by wards. Their work is coordinated by Health Supervisors. AMC employees more than 7000 sweepers to cover an area of 190 sq. Km. The Safai Kamdars sweep the streets, collect the waste and carry it in handcarts to stationary bings or mobile collection points. The AMC recently reorganized its collection logistics. The number of collection points in the AMC area has been increased from 461 to 708. These are being paved with concrete to ensure cleanliness. Open dumping is being phased out by placing large garbage containers (5 to 7 m³). There are designated points for disposing building debris also.

AMC has introduced a system of community bins for collection of waste from households. One community bin is proved per 15 - 20 households. Waste from 100 such bins is cleared once a day by a tricycle and taken to the nearest collection points. These tricycles are being used also to act as an intermediate collector from Safai Kamdars on their beats. One tricycle serves ten beats. 1200 tricycles are being contracted. Collection area for 100 have already been finalized. Special emphasis is put on covering the slum areas where 42 % of the population lives.

Night sweeping has been introduced in areas with intense commercial activity. This has been contracted out on a part time labor contract.

It has been made compulsory for the vendors to keep waste bins. Punitive action is taken on vendors who litter the place. These include levy of administrative charges, canceling of licenses and even closing down of shops. Night cleaning has been contracted out here also.

Forty pickers have been trained and deployed to pick litter in areas where people congregate during the evening and night such as C.G.Road, Law Garden, Ashram Road and Kankaria lake. They move around their beat of 800m road length is a bicycle fitted with two bins. They clean the area before people arrive and continue to pick litter till late in the night.

Special bins are provided at the vegetable and fruit markets. Garbage is removed from the bins twice a day by the AMC. Dead animals and waste from the fish and meat markets are collected by a cooperative named Shree Parishad Khadi Gramodyog Sangh who compost it.

Ahmedabad is one of the first cities in India to have a fully mechanized system of transporting solid waste. Waste is handled only once in the process of collection and transportation. This has brought dignity of labor to the Safai Kamdars of Ahmedabad. AMC has acquired a fleet of 162 vehicle dedicated to solid waste transportation. This includes JCB machines, loader machines, tipper trucks, Roll-On-Roll-Off tupper units, dumper-placers and compactor machines in addition to many smaller vehicles. These mechanical assists are worth Rs. 114 million.

Having reorganized and equipped its collection and transportation system, AMC initiated a program for collection and segregation of waste at the household level, involving the community in the process. A pilot project for this was implemented at Ambawadi area in partnership with SEWA a well known Ngo, Clean Green Abhiyan an initiative supported by the Prarthana Group of Industries, the State Bank of India (SBI) and the Centre for Environment Education (CEE). Cee conducted awareness programs with residents of the area to promote segregation of wet and dry garbage at the household level. SEWA organized women ragpickers (a disadvantages group) to collect the segregated garbage. They are paid a monthly salary by the households through the NGO. In addition, they earn by selling the recyclable dry waste. The whole process was supported by the Abhiyan.

This program was a success. It has been extended to other residential areas like Drive-in, Isanpur and Maninagar. SEWA has trained 4000 ragpickers to collect waste from 300 housing societies.

The AMC runs an electric incinerator of 800 kg/day capacity for disposing of hospital waste. It has been made compulsory for all hospitals, nursing homes, maternity homes and laboratories to send their infectious waste to the AMC incineration plant. AMc arranges for the transportation of the waste, but charges the hospital for the same. Two more plants are planned to be set up and run on a BOT contract. The general hospitals are being asked to set up their own incineration plants.

Disposal of garbage through landfill is being replace by recycling into fertilizer. AMC has entered into an understanding with two private organizations for this purpose. This will eventually save the AMC 2400 cubic metres of landfill space every day.

At Ahmedabad, Excel Industries has been running a pilot plant of 5 tons capacity to process waste from the vegetable and fruit market into bio-fertilizer through aerobic bacterial conversion. This is an eco-friendly method of disposing garbage and also generated revenue from sale of "Celrich" which is a popular bio-fertilizer for vegetable and fruit farming. AMC has now entered into a contract with Excel to set up a plant of 500 tones capacity.

The AMC, in partnership with the Government of India and Shree Parishad Khadi Gramodyog Sangh, a cooperative, has installed a plant for processing animal carcasses and waste from fish and meat markets into chicken feed, duck feed, bone meal and non-edible fats for industrial uses. The plant will be operationalized in mid August.

The introduction of simple systems such as involvement of ragpickers and utilization of tricycles and bicycles as modes of transport has resulted in employment generation while getting the city cleaned with less capital investment. This has benefits also from the point of view of eco-friendliness.

The Slum Improvement Partnership (SIP), Ahmedabad is an innovative approach for the improvement of slums. It is a comprehensive project for upgrading/ providing infrastructure in the slums and integrating it with the city’s infrastructure. Though the major emphasis is on physical infrastructure, it also focuses on environmental upgradation, sanitation, housing, health, education and income generation. The slum communities, private sector companies, NGOs and the Ahmedabad Municipal Corporation will be partners with specific roles and responsibilities. The project will cover 300,000 families over seven years at an estimated cost of Rs. 3.25 Billions. A pilot project has been successfully completed at Sanjaynagar. The lessons learnt from this experience will be utilized in scaling up the project to the city level.

The SIP project aims at improving sanitation and environment in all the slums of Ahmedabad within a finite period. This will contribute to upgrading the city’s infrastructure and environment. The quality of life in slums is to be further improved through health, education and skill upgradation initiatives. Income generating capabilities and access to financing mechanisms of the slum dwellers are also to be improved.

Physical Development

Community Development

City Level Improvements

Direct participation and ownership of efforts are to be ensured by sharing one third of the slum level development costs. The slum dwellers are to be made responsible for community level execution and maintenance of facilities. Neighborhood committees and special interest groups, like women and youth are to be formed with the assistance of NGOs. The community has to actively participate in the socio-economic programs. They have to create an environment for sustainability of the initiative and the partnership

The private sector company which becomes a partner in this process is expected to mobilize resources towards part cost (33%) of slum upgradation. Their entrepreneurial, managerial and technical skills are to be utilized in managing and implementing this project. They are to participate in improvement of slum housing and in the implementation of some of the other project components through BOT mechanism.

The role of the partner NGO is to facilitate community participation, community resource mobilization and assist in health, educational and income generating programs.

The AMC’s main role as a partner is to facilitate all the activities and coordinate with all the agencies. Moreover, it will contribute 33% of the cost of physical development of slums, 70% of the cost of community development and 100% of the cost of city level efforts. AMC will mobilize its own resources and also converge resources from other State/Central government schemes such as Urban Community Development, Low Cost Sanitation, Urban Basic Services, Integrated Child Development Scheme, National River Action Plan and Nehru Rojgar Yojana.

It will be the AMC’s responsibility to develop a comprehensive strategy for city level slum improvement and infrastructure needs. It will determine policies for land tenure and land prices, slum restructuring, rehabilitation, supporting sites & services projects and implementation of 74th Amendment. The AMC is to involve private sector efforts in the planning and execution of city level infrastructure and environmental improvement programs.

Professionals are to be brought in to assist in the planning, design, and execution of projects through surveys, detailed designs, project management and evaluation. Their expertise is required in health, education and community training.

A special body (either a Charitable Trust or a not-for-profit (Section 25) Company), with representation from the community, Corporation, private sector companies and eminent citizens may be set up to coordinate all the efforts in project execution.

During the first phase, surveying, planning, design and execution of a pilot project was taken up at Sanjaynagar. The experiences gained from the pilot project will guide the implementation of the total project during the second phase over a period of five years. For this the AMC is to set up an organization and strategize actions to carry out the project to cover all the slums in the city.

AMC appointed a leading credit rating agency CRISIL to access the inherent strength of the institution and its financial position.
CRISIL evaluated AMC finances with CREMAL model.
Initially, AMC obtained an “A+” category or credit rating from CRISIL which signified Adequate Safety with regard to timely payment of interest and principal amount.
Subsequently, looking to the financial performance of AMC in 1996-97 CRISIL upgraded its credit rating from “A+” to “AA(SO)” which indicated high degree of certainty regarding timely payment of financial obligations on the investment.
AMC became the first credit-rated urban local body in India.

Octroi collection from 10 designated collection points (Nakas) will be specifically earmarked for servicing the Bond and kept in an Escrow account.
The 10 identified AMC octroi collection points are Aslali, Odhav, Hathijan, Sarkhej, Narol-Sarkhej, Keshavnagar, Kalol - Koba, Hansol Bridge, Angadia and Octroi Current Account.

On obtaining Credit Rating AMC decided to access the Bond market for raising finances for capital works.
Placement decided as
75% private placement : Rs. 750 Millions
25% public placement : Rs. 250 Millions
Private placement organized by IL & FS with co-lead managers Kotak Mahindra, SBI caps, ANZ grind lays Draft prospectus approved by SEBI for public placement.
Public placement underwritten by Lead Managers.
3rd week of December, 1997 - Applications to NSE and ASE filed.
2nd week of January, 1998 - Issue opened.
Face value of bond is Rs. 5000 and in multiple of Rs. 1000 thereafter
Coupon Rate is 14% and cost of bond is 3.5% of the total value.
Maturity period is 7 years but repayment will be done in 5th, 6th and 7th year on one third basis.

Augmenting own resources by increasing income from sources of internal revenue as discussed earlier
Accessing to market borrowing through Municipal Bond
Accessing external sources of funding
Professionalisation of the Organization.
Public/Private partnerships