The Government of India (GoI), the Government of Uttarakhand and the World Bank Board has signed a $120 million Loan Agreement on Monday in New Delhi, which will help increase access to improved water supply services in peri-urban areas in the State of Uttarakhand.
The $120 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 17 years, the release said.
The Agreement for the project was signed by Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; Mr. Arvind Singh Hyanki, Secretary, Department of Drinking Water and Sanitation, on behalf of the Government of Uttarakhand; and Mr. Hisham Abdo, Acting Country Director, World Bank, India on behalf of the World Bank.
“From 2001 to 2011, the state’s urban population grew by nearly 42 percent, which is substantially higher than the national average of 32 percent,” the release stated.
Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India said that “Over 700,000 people residing in peri-urban areas of the state are expected to benefit from the program. He said that with increasing urbanization, the demarcation between rural and urban is slowly diminishing. The rise of peri-urban areas in Uttarakhand presents many challenges to development.”
Services would be provided through the piped network and metered service connections with a focus on improving the operation and management (O&M) of it, Khare said.
He further added that, some of the efforts at improving services under the Program will include ensuring a minimum 16-hour water supply which meets the Government of India water quality standards, supplied at a minimum pressure of 12m, for no less than 300 days in a year; 100 percent customer metering and volumetric tariffs; and sustainable water supply systems which recover O&M costs through user charges with transparent subsidies, if any.”
“With rapid economic growth and urbanization, there is a strong demand for better public services, including water supply in peri-urban areas. She said that this Program is now a priority for the State as it moves towards achieving its goal of universal water supply coverage in urban areas by 2030 and in rural areas by 2022. She further said that we hope this program shows the way for others addressing service delivery issues in challenging `peri-urban’ areas that are increasingly part of the landscape of India and other countries in South Asia,” Ms Smita Misra, Lead Water Supply and Sanitation Specialist and the World Bank’s Task Team Leader for the program, said.