India signs loan agreement with world bank for IBRD loan of US$ 100 million for ‘Karnataka Urban Water Supply Modernization project’

Press Information Bureau

Government of India

Ministry of Finance

24-May-2016 17:19 IST

The Loan and Project Agreements for World Bank (IBRD) assistance of US$ 100 million for the Karnataka Urban Water Supply Modernization project were signed between Government of India/Government of Karnataka and the World Bank here today.

The Loan Agreement was signed by Shri Raj Kumar, Joint Secretary, Department of Economic Affairs on behalf of the Government of India and Mr. Michael Haney, Acting Country Director, World Bank (India) on behalf of the World Bank. The Project Agreement was signed by Shri V. Ponnuraj, Managing Director, Karnataka Urban Infrastructure Development & Finance Corporation (KUIDFC) on behalf of the Government of Karnataka. Mr. Michael Haney signed the Project Agreement on behalf of the World Bank.

The objective of the project is to provide city-wide access to a continuous piped water supply in the eligible cities in the State of Karnataka and to strengthen the service delivery arrangements at the city level. KUIDFC is the implementing agency for the project.The project would have four broad components: (i) Capital Investment Program; (ii) Institution Building; (iii) Technical Assistance for Sector Development; and (iv) Project Management.

The project will be implemented over a period of six years, initially in the twin cities of Hubballi-Dharwad, with provision for other eligible cities to join the project at a later date. Under the project, the Hubballi Dharwad Municipal Corporation has hired a professional water supply operating company for improving the water supply system, as also to manage the refurbished system through a 12-year contract in accordance with strict performance criteria. The municipality will retain ownership of the water supply assets and control of the service delivery set up. The project will help the Hubballi-Dharwad Municipal Corporation set up a city-level water utility that will take over water supply operations from the professional operating company at the end of its contract period. The project will benefit about one million residents of the Hubballi- Dharwad, including estimated 160,000 slum dwellers.

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DSM/KA