Announcement of India Receives Forty Million Dollars for Uttar Pradesh Water Supply and Sewerage on August 21, 1975

World Bank .1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 75/59 AUGUST 21, 1975 INDIA RECEIVES $40 MILLION FOR UTTAR PRADESH WATER SUPPLY & SEWERAGE The International Development Association (IDA), an affiliate of the World Bank, has approved a credit of $40 million to India to im- prove water supply and sewerage facilities in the State of Uttar Pradesh. The project will promote implementation of the first phase (1975- 1981) reorganization of the water supply and sewerage sector by supporting the establishment of the Nigam--the Uttar Pradesh Water Supply and Sewerage Development Corporation, and eight Jal Sansthans--local water authorities which will provide water supply and sewerage services in selected areas for large and smaller towns as well as for certain rural areas. Three of these will be regional Jal Sansthans which will supply a total population of about 7.6 million. An urban Jal Sansthan will be established in each of the five • KAVAL towns . The project includes construction of piped water supply schemes in some rural areas suffering from hardship due to poor supplies. It will also improve the quality of the water supply and sewerage systems in the five largest cities of the State--Kanpur, Agra, Varanasi, Allahabad and Lucknow, the so-called KAVAL towns. In addition to improving service to about five million people in the expanding KAVAL towns, the project will provide facilities to about 1.2 million villagers in 2,000 villages served by the regional Jal Sansthans. Rural schemes will consist of piped water supply systems using surface water sources, springs or groundwater, with water treatment plants where necessary. An average provision will be about one standpipe per 200 persons in each village. House connections will be also available to consumers who are prepared to pay at rates to be determined in tariff studies. Only about a third of Uttar Pradesh's present population--which, at 95 million, is larger than that of any of the World Bank's borrowers except Brazil, Indonesia, and India itself--has access to safe water supplies. The present rate of investment in the sector is not sufficient to keep pace with the annual growth in population. The danger always exists of large-scale outbreaks of water-borne diseases and increasing hardship due to lack of drinking water for large masses of people. • The $40 million credit to India is for a term of 50 years, including 10 years of grace. It is interest-free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. Note: Money figures are expressed in US dollar equivalents.  • T E C H N I CAL DAT A PROJECT: Uttar Pradesh Water Supply & Sewerage COUNTRY: India TOTAL COST: $75 million IDA FINANCING: $40 million, standard IDA terms OTHER FINANCING: Life Insurance Corporation (LIC), $23 million, Government of Uttar Pradesh (GUP), $12 million. IMPLEMENTING ORGANIZATION: Uttar Pradesh Rajya Jal Sambharan Tatha Sewer Vyawastha Nigam, 6-Rana Pratap Marg, Lucknow, Uttar Pradesh, India. PROJECT DESCRIPTION: The project will promote implemer.tation of the first phase (1975/76-1980/81) reorganization of the water supply and sewerage sector by supporting the establishment of the Nigam, the Uttar Pradesh Water Sup?lY and Sewerage Development Corporation, and eight Jal Sansthans--local water author- ities which will provide water supply and sewerage services for large and smaller towns as well as rural areas. Three of these will be regional Jal Sansthans having a total population of about 7.6 million, and an urban .Jal Sansthan will be established in each of the five KAVAL towns or the five major cities of Uttar Pradesh--Kanpur, Agra, Varanasi, Allahabad and Lucknow.In addition, the project will provide facilities to improve service to about five million people in the expanding K.AV.AL towns and to about 1.2 million villag-· .ers in 2,000 villages in the regional Jal Sansthans. Rural schemes will consist of piped water supply systems using surface water sources, springs or groundwater, with water treatment plants where necessary. An average provision will be about one standpipe per 200 persons in each village. House connections will be available to consumers who are prepared to pay at rates to be determined in tariff studies. PROCUREMENT: Contracts for about $16 million worth of equipment and materials will be awarded on the basis of international competitive bidding (ICB). Indian suppliers bidding under ICB will be granted a preference margin of 15% or the current rate of import duty, whichever is less. About 300 contracts for civil works totaling about $25 million will be awarded following competitive bidding advertised locally, with the exception of such individual contracts not exceeding $125,000 which may be executed by force account. Contracts totaling $18 million for equipment and materials which are not suitable for ICB for reasons of small size, high transportation costs, or high damage risk will also be awarded following competitive bidding advertised locally. CONSULTANTS: Consulting services totaling about 300 man-months for financial, managerial, training and engineering consultants are included in the project. ESTIMATED COMPLETION DATE: June 30, 1979 - 0 - •