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HP gets WB loan for better water, sanitation in Shimla

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HP gets WB loan for better water, sanitation in Shimla

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The Government of India, Government of Himachal Pradesh and the World Bank have signed a $40 Million Loan Agreement to help bring clean and reliable drinking water to the Greater Shimla area, that has been facing severe water shortages and water-borne epidemics over the last few years.

The Loan Agreement was signed by Mr. Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India and Mr. Junaid Kamal Ahmad, Country Director, World Bank-India, on behalf of the World Bank. Project Agreement was signed by Mr. Prabodh Saxena, Principal Secretary, Urban Development Department, on behalf of the GoHP.

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, 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 Bank-supported Project, the first in a series of three development policy loans (DPL), will support the GoHP’s program of policy and institutional reform needed to bring continuous, pressurized (24x7) water supply, efficient sewage collection and treatment for all households in the Greater Shimla Area.

The World Bank DPL will support SJPNL in its policy and institutional reform program as it launches three critical operations to improve WSS services in the state capital: (i) Bringing bulk water to Shimla from a new source on the Sutlej River; (ii) 24x7 Water Supply and Sewage Management for Shimla City and; (iii) Sewage services for peri-urban areas.


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