Chandigarh MC asked to clarify French agency role in Manimajra water supply project

Agence Francaise de Developpment (AFD), the French agency which is going to provide Rs 413 crore loan under the 24x7 water supply project for pan city Chandigarh, has asked the MC to issue a press release, clarifying that there is no role of the AFD and the EU in the Manimajara pilot project of 24x7 water supply.

In a letter written by Lise Breuil, AFD India Country Director, to Amit Kumar, Commissioner, MC dated October 24, it has been stated that, “Pursuant to our discussion on October 9 regarding the temporary suspension of project activities of the AFD-supported Chandigarh 24x7 water supply project, I recall the consequent actions to be taken by the MC team at the earliest on priority, as mutually agreed and directed by yourself during the said meeting: Firstly, clearing of dues of the LTTA consultant by the MC, covering costs incurred till September 30, as it involves significant reputational risk to both AFD and the EU and secondly, a press release by the MC to clarify that there was no role of AFD and the EU in the Manimajra project.

The letter further said that “We remain available for any further discussion regarding the project implementation, including intended additional field studies to be concluded by the MC within the next 6 months.

The credit facility agreement was signed with AFD in New Delhi on September 15, 2022, for implementation of the project. As per the agreement, the AFD was going to provide Rs 413 crore for the project in the form of a loan, to be repaid in 15 years.

In addition to it, the EU promised to give a grant of Rs 98 crore.

The project has a financial outlay of Rs 591 crore and is expected to be completed by 2027. It was claimed during the signing of the agreement that once the 24x7 water supply project is completed the consumers will get round-the-clock water supply without any interruption. But after signing of the project no significant progress has been made.