After proposing a Rs 16,500-crore tunnel and a Rs 500-crore skydeck projects, the Bengaluru civic body plans to hire a consultant to streamline its financial management.
The consultant is expected to prepare a comprehensive financial and funding plan for Bruhat Bengaluru Mahanagara Palike (BBMP) for the next five years, evaluating the civic body’s financial health, revenue sources, and budgetary deficits.
It will also conduct a comparative analysis of successful financial models implemented by other urban local bodies and identify best practices that can be adapted to BBMP’s requirements.
Also read: Bengaluru civic body to borrow Rs 19,000 crore for tunnel road project
The civic body has invited requests for proposals (RFP) for strategic consultancy services for financial sustainability-led transformation of BBMP. “The consultant will study the BBMP’s upcoming project plans for the next five years, identify priority projects, and determine funding requirements for both capital and operational expenses,” said a senior BBMP official.
“The assignment includes preparing detailed financial projections, including pro-forma profit and loss and cash flow statements, along with a financial model that simulates revenue, expenditure, and funding scenarios. The consultant will also identify risks and propose mitigation strategies” said an official.
10 critical projects to be monitored
For project control and monitoring, the firm will design a framework to oversee 10 critical projects. This will include creating dashboards to track progress, establishing governance structures for effective oversight, and defining performance indicators to ensure timely project completion.
To ensure efficient execution of key infrastructure projects, the consultant will benchmark urban infrastructure projects in India and abroad to assess their development models, funding structures, and factors contributing to successes or failures.
It will also propose suitable development models, including options for joint ventures or special purpose vehicles, and outline contracting frameworks.
The firm will also conduct scenario analyses to evaluate the financial sustainability of these projects under various conditions.
To augment BBMP’s revenue, the firm will analyse the performance of its existing tax and non-tax sources over the last five years and identify revenue streams. It will prioritise these potential sources through a financial analysis, preparing an actionable roadmap to enhance revenue generation while improving citizen outcomes.
The consultant will explore innovative financing mechanisms to reduce BBMP’s reliance on public funding. This includes identifying optimal funding sources, facilitating discussions with Indian and international funders, and developing strategies to improve BBMP’s credit rating. The firm will also assist in structuring financing terms that align with the civic body’s priority projects and identify ancillary revenue streams to offset funding outlays.
To drive sustainable organisational changes, the consultant will conduct targeted training sessions for BBMP staff, focusing on project management, financial literacy, digital tools for data analysis, etc. “This is to enhance the civic body’s capacity to manage its financial and operational responsibilities effectively, ensuring long-term sustainability” said an official.
Also read: 'Brand Bengaluru' caught between DK Shivakumar’s vanity projects and city's crumbling infra
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