The Government of India, Government of Himachal Pradesh (GoHP) and the World Bank signed a $40 million loan agreement to help bring clean and reliable drinking water to the citizens of the Greater Shimla area, who have been facing severe water shortages and water-borne epidemics over the last few years.
The Shimla Water Supply and Sewerage Service Delivery Reform Programmatic Development Policy Loan 1 is expected to improve water supply and sanitation (WSS) services in and around the iconic hill city of Shimla.
Shimla’s water supply infrastructure with a capacity of 40 million litres daily (MLD) is unable to meet the current demand of 56 MLD. As elsewhere in urban India, around half the available water is lost to leakages and unauthorized siphoning. As a result, the water supply reaches citizens only once in two days and for limited hours. With at least 30-40% of the city’s population of around 200,000 not covered by the sewerage system, sanitation has also emerged as a public health issue in Shimla.
“The Government of Himachal has taken the bold step of making the supply of WSS services directly accountable to citizens by creating an autonomous, professional company that answers to the urban local body,” said Junaid Ahmad, World Bank Country Director. “This DPL will help SJPNL orient itself as a customer-focused utility able to provide reliable water and efficient sanitation to the citizens of Shimla.”
The $40 million loan from the International Bank for Reconstruction and Development (IBRD), has a 4-year grace period and a maturity of 15.5 years.
Original source: World Bank
Published on 15 February 2019
