New Delhi: The Himachal government has signed a development policy loan with the government of India and the World Bank for improving water supply and sewerage services in greater Shimla area.
The state government, government of India and World bank in a meeting held at New Delhi signed development policy loan-1 (DPL1) amounting to Rs. 292 crores (USD 40 Mn) out of total negotiated loan amount of Rs. 986 crores (USD 135 Mn).
Under this Rs. 986 crores project, Rs. 366 crores would be spent on 107 MLD bulk water supply from Sutlej river and rehabilitation of Giri and Gumma water sources, Rs. 270 crores on improvements in water distribution and SCADA, Rs. 246 crores on extension of sewerage network and Rs. 104 crores on rehabilitation and capacity addition of sewerage treatment plants.
After experiencing water crisis during last summer in the state capital, the state government has made serious efforts to get the project approved so that Shimla do not face such crisis in the future.
This is first development policy loan related in water sector, wherein the Himachal government in line with its commitment to provide world class service delivery in water and sewerage services to its citizens, has undertaken policy level decisions in institutional reform, volumetric tariff, water connections, energy efficiency and customer satisfaction. On successful achievement of all the priors action agreed with World Bank, the state government had approached the Department of Economic Affairs, MibUnion 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 timelines agreed with the World Bank in the negotiation meeting.