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World Bank and DEA agrees Rs. 1168 crore negotiation with Himachal government

A Spokesperson of the state government informed here today that the negotiation committee under the chairmanship of Principal Secretary, Urban Development Rajneesh on behalf of the state government negotiated the Shimla-Himachal Pradesh water supply and sewerage service programme for seeking financial assistance of Rs. 1168 crore from the World Bank with Department of Economic Affairs (DEA), Union Ministry of Finance and World Bank, today. This is the final negotiation and the World Bank and DEA have agreed the negotiations with state government.

The State Cabinet in its meeting held on 24 August, 2021 approved the negotiation package negotiated by the Urban Development Department with the World Bank and Department of Economic Affairs for funding Shimla water supply and sewerage services delivery programme for improvement of WSS services in the Greater Shimla area for financial assistance from the World Bank with total financial outlay of Rs. 1825 crore.

Out of Rs. 1825 crore (250 Mn), the World Bank will provide financial assistance to the tune of Rs. 1168 crore (160 Mn) and rest Rs. 657 crore will be borne by the State Government. Principal Secretary Urban Development has finalized the minutes of the Negotiation meeting and the negotiated loan document on behalf of State government with the World Bank.

He said that the main objective of the project is to provide 24 hours water supply in Municipal Corporation, Shimla and strengthen the sewerage services. The main components of the Shimla Water Supply and Sewerage Project include Augmentation of Shimla Water Supply from River Sutlej with additional 67 MLD to meet the water demand up to year 2050, bulk water supply to Shimla Peri-Urban areas to meet the water demand of Special Area Development Authority/ (SADA)- Kufri, Shoghi, Ghanahatti and additional planning areas up to 2050, round the clock water supply to all domestic and commercial consumers within Shimla Municipal Corporation area and improved sewerage services within Shimla Municipal Corporation area.

He said that the project envisages lifting water from Sutlej near village Shakrodi, involving lifting to a height of 1.6 km and pipe laying of 22 km to augment 67 MLD water at Sanjauli. The project also seeks to replace the distribution pipe network across MC Shimla to upgrade it to 24×7 water supply system. Additionally, the sewerage network in areas of Mehli-Panthaghati, Tutu and Mashobra will be provided. The project will be completed by 2026.

He said that this would be a flagship project for the State as it seeks to provide best in class water supply and sewerage system in Shimla that will cater to requirements of the town up to 2050. Urban Development department has been able to secure this funding from the World Bank and Ministry of Finance despite fiscal constraints posed due to Covid 19. The negotiated programme appraisal document will now be posed to the Board of the World Bank for final approval, which is expected within a month. This will be a major boost in augmenting water supply and sewerage network in Shimla. The effective date of fund disbursement will be 1st January, 2022 and funding will be for tenure of five years, he added.