World Bank okays Rs 1,168 cr aid for Shimla water supply project

Tribune News Service

Shimla, September 20

The World Bank has finally approved a financial assistance of $160 million (Rs 1,168 crore) for the Shimla Water Supply and Sewerage Service project.

The lengthy negotiations concluded today and now Shimla residents can look forward to 24x7 water supply and effective sewerage services in the next few years. The project will be completed by 2026.

"The negotiations with the World Bank and the Department of Economic Affairs (DEA) concluded today. I am happy to disclose that negotiations concluded successfully. The World Bank has agreed to provide $160 million for the project," said Rajneesh, Secretary, Urban Development, who headed the negotiation committee of the state.

"The date of effect for the project will be January 1, 2022. Shimla residents can hope for 24x7 water supply in the next two to three years," he added.

Urban Development Minister Suresh Bhardwaj said that the project would surely see the light of the day. "The World Bank will soon start releasing funds for the project. Once it is completed, Shimla will not have to worry about water supply and sewerage service for the next couple of decades," he added.

The project that aims to provide 24x7 pressure water supply and improve and augment sewerage services in and around the city has a total financial outlay of $250 million (Rs 1,825 crore). Of the total amount, the World Bank will provide $160 million (Rs 1,168 crore) while the state government will borne the remaining $90 million (Rs 657 crore). Rajneesh said the Urban Development Department managed to secure funding from the World Bank despite fiscal constraints due to Covid-19.

Objectives of the project

  • Augment water supply to Shimla from the Sutlej with additional 67 MLD to meet the demand up to 2050
  • Bulk water supply to Shimla peri-urban areas to meet the demand of the Special Area Development Authority (SADA) at Kufri, Shoghi, Ghanahatti and additional planning areas up to 2050
  • 24X7 supply to domestic and commercial consumers in the Shimla MC area. Improved sewerage services in the municipal area
  • Replace the distribution pipe network in the Shimla MC area and upgrade it to a 24x7 supply system
Courtesy: Tribune News Service

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