Boost of Rs 292 crore for Shimla’s water supply

  • | Sunday | 17th February, 2019

Country director Junaid Ahmad and team leader Smita Misra represented the World Bank in the meeting. Shimla: Himachal Pradesh government has succeeded in signing development policy loan with the Government of India and World Bank for improving water supply and sewerage services in Greater Shimla area. In a meeting held at New Delhi on Friday, development policy loan-1 (DPL1) amounting to Rs 292 crore (USD 40 million) out of total negotiated loan amount of Rs 986 crore (USD 135 million) was signed.After experiencing water crisis during last summer in the state capital, chief minister Jai Ram Thakur had personally intervened and made serious efforts to get this project approved so that Shimla does not face such crisis in future again. The procurement process for the bulk water project has already been initiated and will be completed as per the timeline agreed with the World Bank in the negotiation meeting.Additional secretary, department of economic affairs, Union ministry of finance, Sameer Khare, signed the legal and programme agreement on behalf of Government of India while principal secretary (urban development) Prabodh Saxena signed the loan agreement and programme agreement on behalf of Himachal Pradesh government. He pursued the matter time and again with the Prime Minister’s Office, the World Bank and Union finance ministry, as a result of which the state succeeded in getting approval for this project.Under the Rs 986 crore project, Rs 366 crore would be spent on 107 million litres of bulk water supply per day from Satluj river and rehabilitation of Giri and Gumma water sources; Rs 270 crore will be spent on improving water distribution and supervisory control and data acquisition (SCADA); Rs 246 crore will be utilised in extension of sewerage network, and Rs 104 crore on rehabilitation and capacity addition of sewerage treatment plants.This is the first development policy loan related to water industry, wherein the Himachal government has undertaken policy-level decisions in institutional reform, volumetric tariff, water connections, energy efficiency and customer satisfaction.The state government had approached the department of economic affairs, Union ministry of finance to negotiate the DPL1 with the World Bank.

Shimla: Himachal Pradesh government has succeeded in signing development policy loan with the Government of India and World Bank for improving water supply and sewerage services in Greater Shimla area. In a meeting held at New Delhi on Friday, development policy loan-1 (DPL1) amounting to Rs 292 crore (USD 40 million) out of total negotiated loan amount of Rs 986 crore (USD 135 million) was signed.After experiencing water crisis during last summer in the state capital, chief minister Jai Ram Thakur had personally intervened and made serious efforts to get this project approved so that Shimla does not face such crisis in future again. He pursued the matter time and again with the Prime Minister’s Office, the World Bank and Union finance ministry, as a result of which the state succeeded in getting approval for this project.Under the Rs 986 crore project, Rs 366 crore would be spent on 107 million litres of bulk water supply per day from Satluj river and rehabilitation of Giri and Gumma water sources; Rs 270 crore will be spent on improving water distribution and supervisory control and data acquisition (SCADA); Rs 246 crore will be utilised in extension of sewerage network, and Rs 104 crore on rehabilitation and capacity addition of sewerage treatment plants.This is the first development policy loan related to water industry, wherein the Himachal government has undertaken policy-level decisions in institutional reform, volumetric tariff, water connections, energy efficiency and customer satisfaction.The state government had approached the department of economic affairs, Union ministry of finance to negotiate the DPL1 with the World Bank. The procurement process for the bulk water project has already been initiated and will be completed as per the timeline agreed with the World Bank in the negotiation meeting.Additional secretary, department of economic affairs, Union ministry of finance, Sameer Khare, signed the legal and programme agreement on behalf of Government of India while principal secretary (urban development) Prabodh Saxena signed the loan agreement and programme agreement on behalf of Himachal Pradesh government. Country director Junaid Ahmad and team leader Smita Misra represented the World Bank in the meeting.

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