Announcement of Fifty Five Million Dollars Credit for the Bombay Water Supply and Sewerage Project on May 17, 1973

'O 'r· v E L O /',It,(, I ~ .>, • INTERNATIONAL DEVELOPlVIEI~T ASSO(.:IATION (~) 1818 H STREET, N.W, WASHINGTON 25, D. C. TELEPHONE: EXECUTIVE~:3-6360 ·---------w--·-----·•·---·---------·-----11 IDA Press Release No. 73/33 Subject g$55. 0 million Cl"f~d.j. t for the Bombay May 17, 1973 wa trJr supply and s,awere.ge project A $1.58 .O milfion project to expand and m.iproiVe the watier supply and sewer.age system. serving Bombay's six .millit.:m people1 will be assisted by a credit of $.5.5.0 million from the International Development Associatj_on (IDA), an affiliate of the World &mk. The project, first operation for the World Bank Group in this Sf;ctc;r in India:, is part of a 10-year (1972-Hl) water suppzy and sewerage d,avl/.~lopment pr,ogram designed to im-- prove living conditions :in one o.f India's principal ci tif~s. Bombay is also the capital of the Sta tl3 of Ma.hara sh tra. The project, when completed, will enabl1a the Bomba.y M.m:i.cipal Corporation (BMC) to, increase water supply from less tr. 3.n five hcrars per day for 60% of the arfJa 's population of over six million to. about eight hours per day for the entire population. It will also expand sewage collectton, treatment and disposal systems for Gre:ater Bombay. The IDA credit will cover 35% of the costs, including all of the foreign exchange costs. M:tharashtra is the third largest State in India in area and popula.tion. As in the rest of India, water supply and sewerage systems in the State are inad,aquate,, For i.nstance, • only about 11+ million out of a total State population of 50 m:illion get piped water at pr,~sent. Bombay's population of over six million is esttmated to rise by at lea.st 30% hy 1981. ':l'here is an urgent need to improve the city's water supply and sewerage systems tc, pf.?rmi t further economic development and to aYoid deterioration ir1 public health. The project being assisted by IDA represents the first major phase of the 10-year program. It includes the construction of a water intake together with a water treatment and pumping system from the Bhatsai River, a me.jor treatment plant and pumping station at Bhandup for aDL water entering the distribution system. of Bombay 1-funici.pality, 12 storage reservoirs, a major modification of the distribution system, and the carrying <.>ut of an extensive leak detection and waste prevention·program. The pro,ject also includes r,ehabilitation and improvement of the existing sewerage system serving the central part of the city and beginning new sewerage systems for the suburbs, which are only partially served by sewers. A second phase of the program is planned to start in 1975. Implementation of the project will be the responsibiltty of the Water Supply and Sewerage Department of the Bombay Municipal Corporation. The project will be completed in 1978 at a total estimated. cost of $158 million -- $111 million for water supply and $47 million for sewerage. · The IDA credit to the Government of India is for~ term of 50 years, including 10 .years of grace. It will be interest free, except for a 3/4 of 1% service charge to cover IDA's administrative expenses. The proceeds of the credit will be made available by the Indian Government as part. of the funds for general development purposes p:r.ovlded to Maharashtra. The State Government will relend the proceeds to BMC at 6.25% interest for 25 years, including four years of grace. - 0 -  May 17, 1973 • TECHNICAL DATA PIDJECT: Boni>ay water supply and· sewerage COUNTRY: India TOTAL COST: $158.2 million equivalent. IDA FINANCING: $55.0 million, 50 years, including 10 years of grace, interest free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. OTHER FINANCING: Internal cash generation and bond issue by the Bombay Municipal Corporation (BMC), and a grant from the Government of Maharashtra. IMPLEMENTING ORGANIZATION: Water Supply and Sewerage Depal."tment, Bombay • Municipal Corporation, Bombay, India. PROJECT DESCRIPTION: Construction of a Bhatsai river intake, pumping station and water treatment plant; construction of a water treatment plant and a pumping station of about 22m3 sec capacity, a master balancing reservoir, and eleven service reservoirs and provision of transmission mains and distribution system, inst'rumentation and control systems, vehicles and water meters. Improvement in the extension of the sewerage system by laying about 80 miles of sewers a:nd sewage pumping mains; construction of seven pumping stations; rebuilding of nine existing pumping stations; improvements to existing sewage treatment works; the provision of sewer maintenance equipment, vehicles and spares; and investigations for sewage treatment and disposal. Consulting assistance for project planning and control, accounting and financial management and management information systems. Staff training programs. PP~CUREMENT: Equipment and material estimated to cost $35.3 million will be procured through international competitive bidding with domestic manufacturers accorded the normal preference margin. Equipment and material estimated to cost $ 7. 6 million will be procured locally, for reasons of standardization, for the advantage of procuring certain items in .small quantities throughout p,roject execution, or for ·the dis- proportionately high transportati'on cost of large diameter pipes~ • CONSULTA.~TS: Binnie & Partners (India) Ltd., Tata Consulting Engineers, Tat~ Management Consultants, India. ESTIMATED COMPLETION DATE: 1978 - 0 -