India, World Bank sign USD 120 million loan agreement to improve Water Supply Services in Uttarakhand

Jan 23, 2018 09:47 IST
India, World Bank sign USD 120 million loan agreement to improve Water Supply Services in Uttarakhan

India and World Bank on January 22, 2018 signed USD 120 million loan agreement to improve water supply services in peri-urban areas of Uttarakhand.

The Agreement for the project was signed by Sameer Kumar Khare, Joint Secretary in the Department of Economic Affairs, under Union Ministry of Finance; Arvind Singh Hyanki, Secretary in Department of Drinking Water and Sanitation of Uttarakhand and Hisham Abdo, Acting Country Director of World Bank, India.

The USD 120 million loan will have a 5 year grace period and a maturity of 17 years.

Highlights of Uttarakhand Water Supply Program for Peri-Urban Areas
• The Uttarakhand Water Supply Program for Peri-Urban Areas will help the state in increasing 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 and will strengthen the current monitoring and evaluation systems.

• It will provide dedicated incentives for preparation and adoption of water supply ‘master-plans’ in peri-urban areas.

• Services will be provided through piped network and metered service connections with a focus on improving the operation and management (O&M) of it.

• The program will also include 100 per cent customer metering and volumetric tariffs and sustainable water supply systems which will recover O&M costs through user charges with transparent subsidies, if any.

• Some of the efforts at improving services under the Program will include ensuring a minimum 16-hour water supply which meets the water quality standards, supplied at a minimum pressure of 12m, for no less than 300 days in a year.

The peri-urban areas are classified as rural, but effectively urban in nature in terms of density of population, the structure of the economy and aspirations of the people.  

From 2001 to 2011, Uttarakhand's urban population grew by around 42 per cent, which is substantially higher than the national average of 32 per cent. While the state has been implementing innovative approaches in water supply and sanitation services, water supply services in peri-urban areas have not been a focus.

With the implementation of this program, over 700000 people residing in peri-urban areas of Uttarakhand will be benefitted.

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