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Home Banking & Finance

WB lends US$120M for Uttarakhand water project

Fiinews by Fiinews
January 23, 2018
in Banking & Finance, Infrastructure, Investment, Projects
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Programme to benefit 700,000 people

UTI FUND

The World Bank is lend US$120 million for water supply services in peri-urban areas in Uttarakhand state.

The Uttarakhand Water Supply Program for Peri-Urban Areas will help the State increase water supply coverage as well as ensure sustainable water supply service delivery in peri-urban areas.

It will develop and implement a service-oriented and efficient water supply policy for peri-urban areas, strengthen the current monitoring and evaluation systems, and provide dedicated incentives for preparation and adoption of water supply ‘master-plans’ in peri-urban areas.

Growth and urbanization has led to the rise of significant “peri-urban” areas (mostly in the plains) that, while classified as rural, are effectively urban in nature (in terms of density of population, the structure of the economy, and aspirations of the people).

From 2001 to 2011, the state’s urban population grew by nearly 42%, which is substantially higher than the national average of 32%. While the state has made significant strides in piloting and implementing innovative approaches in water supply and sanitation services, water supply services in peri-urban areas have not been a focus.

Speaking at the loan signing, Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, said that over 700,000 people residing in peri-urban areas of the state are expected to benefit from the program.

He said that with increasing urbanization, the demarcation between rural and urban is slowly diminishing. The rise of peri urban areas in Uttarakhand presents many challenges to development.

The Program will include ensuring a minimum 16-hour water supply which meets the Indian Government’s water quality standards, supplied at a minimum pressure of 12m, for no less than 300 days in a year; 100% customer metering and volumetric tariffs; and sustainable water supply systems which recover O&M costs through user charges with transparent subsidies, if any.

The loan agreement was signed with the Government of India and State government of Uttarakhant in New Delhi on 22 Jan 2018.

The $120 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 17 years. fii-news.com

Tags: Department of Economic AffairsWorld Bank
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