WB approves $ 105 million for canal water supply project in Ludhiana, Amritsar

Nitin Jain

Tribune News Service

Ludhiana, April 1

Finally, the much-awaited 24x7 canal-based surface drinking water supply project for Ludhiana has got the financial support from the World Bank (WB).

The project will quench the thirst of the state’s two Maximum Cities within the next three years. Following negotiations, the World Bank has formally approved the project. The work on the scheme has been taken up on a priority basis to benefit the citizens at the earliest. — Vini Mahajan, Chief Secretary

The World Bank has approved a $105 million funding for the Punjab Municipal Services Improvement Project to strengthen urban services in Ludhiana and Amritsar, the two largest cities in Punjab.

A decision to this effect was taken at the meeting of the World Bank Board of Executive Directors held in Washington DC on Wednesday, a top government functionary told The Tribune here on Thursday.

She said the $105 million loan from the International Bank for Reconstruction and Development (IBRD) has a final maturity of 12.5 years, including a grace period of three years.

A major focus of the project will be on providing efficient water supply and sanitation services in Ludhiana and Amritsar, cities that are the engines of economic growth for the state. The improvements in the water supply will benefit more than three million people in 2025 and an estimated five million projected population in 2055. Industrial and commercial users would also benefit from the good quality reliable water supply.

“Punjab’s rapid urbanisation has been creating thirsty cities. Overexploitation of groundwater is the inevitable casualty,” said Junaid Ahmad, World Bank Country Director in India. “This project aims to tackle the challenge of urbanisation and ensure access to sustainable and safe water for Ludhiana and Amritsar. The focus is on municipal capabilities to plan, finance, and deliver services and to tap into the potential of surface water,” he added.

The Punjab Government has launched slew of initiatives to address urban service delivery gaps and strengthen the Urban Local Bodies (ULBs) in the state. The government has devolved authority and responsibility for infrastructure development and service delivery to large municipal corporations. Several schemes to improve waste management, water supply, sewerage, streetlighting, and public transport are presently underway.

“The Punjab Government has prioritised urban reforms and investments to address rising urban challenges. Through this project, we hope to address the broader governance and institutional gaps at multiple levels of the local government system in Ludhiana and Amritsar for an effective and responsive, and over time, efficient municipal service delivery in the two cities,” said Yarissa Lyngdoh Sommer, Senior Urban Specialist and World Bank’s Task Team Leader for the project.

He said the focus on administrative and e-governance improvements, especially those with a public interface (such as improved systems for permits, payments, and grievance redress), would benefit the users of municipal services in both cities.

Shift in water supply

Presently, Ludhiana and Amritsar draw their water by pumping out groundwater from hundreds of borewells dug up across the two cities. Pumping groundwater directly from these borewells leads to significant water loss and wastage as households are not incentivised to save. Studies have also revealed that Ludhiana’s groundwater is contaminated with nitrates and other heavy metals while Amritsar district’s with arsenic. The project will shift water supply from rapidly depleting and highly contaminated groundwater sources to a centralised treatment plant drawing water from local canals.

Funding pattern

The project will finance all new raw water systems, water treatment plants, transmission systems and reservoirs to supply clean water to cover entire cities under a Design, Build, Operate and Transfer (DBOT) contract. The DBOT operator will manage the operations and maintenance of these water supply systems under the direct supervision of the MCs in the two cities through city-level water utilities. The project will also provide sub-grants to all MCs to finance critical non-medical interventions that address impacts of Covid crisis.

Site selected

The site selection committee, headed by DC Varinder Kumar Sharma, has approved 54 acres at Bilga village in Ludhiana for the project.

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