World Bank Approves $ 160 Million Funding for Shimla Water-Sewerage Service Systems

Shimla: World Bank has in principal approved financial assistance of Rs 1168 crore ($160 Million) for funding the Rs 1825 crore outlay of the Greater Shimla water supply and sewerage service delivery systems, a Himachal Pradesh government spokesman stated here on Monday.

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 the Department of Economic Affairs (DEA), Union Ministry of Finance and the World Bank.

This is the final negotiation and the World Bank and DEA have agreed the negotiations with state government, the spokesman said.

Earlier, the state cabinet at a meeting held on 24 August, 2021 had approved the negotiation package with the World Bank along with the 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.

The World Bank Funded Shimla Water Supply from River Sutlej with an additional 67 MLD will meet the hill cities water demand up to the year 2050.

Rajneesh said that the main objective of the project was to provide 24 hours water supply in Shimla Municipal Corporation 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 an additional 67 MLD to meet the water demand up to the 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.

Rajneesh further 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 a 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.

The negotiated programme appraisal document will now be posed to the Board of the World Bank for final approval, said Rajneesh, which is expected within a month. The effective date of fund disbursement will be 1st January 2022 and funding will be spread out over five years, he added.

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