WB okays Rs 292-crore loan for Shimla water project

Tribune News Service

Shimla, November 27

World Bank has approved a development policy loan (DPL)-I of Rs292 crore ($40 million) for the Shimla Water Supply and Sewerage Project.

The loan was sanctioned at a meeting held under the chairmanship of the Director, Economic Affairs, Government of India, on Monday, said an official spokesperson.

The spokesperson said the total amount of the DAP loan to be released for the project is Rs 986 crore ($135 million) which would be released in three phases.

Under the project, Rs 366 crore would be provided for 75 MLD water, besides the rehabilitation of the Gumma and Giri water schemes. An amount of Rs 270 crore had been set aside for the 24x7 water supply scheme with water quality compliance.

An amount of Rs 246 crore would be released for the extension of the sewerage network while Rs 104 crore would be utilised for the rehabilitation and capacity addition of sewerage treatment plants (STPs).

The state government has fulfilled pre-requirements and set up an autonomous body — Shimla Jal Prabandhan Nigam Limited — to act as a special purpose vehicle (SPV) for the implementation of the project, which would cater to water requirements of the state capital for 50 years.