KIUWMIP Gets A Boost: Government Signs Loan Agreement And Receives Grant From ADB
KIUWMIP Gets A Boost: Government Signs Loan Agreement And Receives Grant From ADB
The government has signed a loan agreement with Asian Development Bank/ADB for USD 75 million and a USD 1.8 million dollar grant for the Karnataka Integrated Urban Water Management Investment Program/KIUWMIP.
One Loan, Three Towns
The loan fund will be used in 3 towns namely Byadagi, Davanagere and Harihar under the KIUWMIP scheme. The loan seeks expansion and upgradation of urban water supply as well as sanitation infrastructure for improvement of water resource planning and monitoring as well as service delivery. The funds will also be used for strengthening the operational as well as administrative capabilities in the towns.
According to the agreement, the loan will last for a 25 year term which includes a grace period of 5 years. The project which will be funded by this loan will enable urban towns to enhance water treatment capacity by 15,000 cubic meters in a day. This project will also help in the expansion and upgradation of water pipelines of more than 1,000 kilometres and water sewage treatment capacity by 48,000 cubic metres per day promoting water efficiency as well as environmental protection.
KIUWMIP: Karnataka Integrated Urban Water Management Investment Program
This is an investment program that aims to enhance water resource management in urban parts of Karnataka in a way that is holistic and sustainable. It also aims at modernisation and expansion of urban water supply and sanitation through bolstering of relevant institutions to enhance efficiency, sustainability and productivity in water use. Innovative social instruments such as PPP or reform oriented funds will also be used for aiding this program.
Capacity development for effective adaptation in fragile environments is the aim of this program. It is oriented towards providing optimal water management in Northern parts of Karnataka. Government of India signed an agreement with Asian Development Bank (ADB) here today for a $75 million loan and a $1.8 million grant that will help improve water resource management in three (3) towns of Karnataka in the Upper Tungabhadra sub-basin. This loan from the ADB's Ordinary Capital Resources has a 25-year term including a grace period of five years.
Every Drop Counts
The first tranche of loan under the program will be used for the expansion and upgradation of urban water supply and sanitation infrastructure as well as improvement of water resource planning and monitoring plus service delivery. The loan agreement was signed between Tarun Bajaj, Joint Secretary Department of Economic Affairs, GoI and Rajeev Singh, Officer-in-Charge of the ADB India Resident Mission. The project agreement had the following signatories- D. Chandrashekariah Joint Director, Planning, Urban Development Department of the Government of Karnataka and Darpan Jain, MD of the KUIDFC or Karnataka Urban Infrastructure Development & Finance Corporation Limited.
The project will promote the establishment of Urban Local Bodies Incentive Fund for assisting towns in implementation of reforms and mainstreaming performance based contracts in ensuring continuous water services and supply. The project will test the application of output based approaches for supporting programs for poor and vulnerable sections of society. The investment program also aims at water resource management in a way that is sustainable across the towns. UWSS or Urban Water Supply and Sanitation will be modernised through this initiative. The program aims at building climate resiliency and capacity development for effective adaptation.
