Announcement of IDA Approves Second Bombay Water Supply and Sewerage Project in India on August 3, 1978

. .· . FOR IMMEDl~TE RELEASE .VorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393.:.6360 LDA NEWS RELEASF NO. 79/8 AUGUST 3, 1978 IDA APPROVES SECOND BOMBAY WATER SUPPLY AND SEWERAGE PROJECT IN INDIA The International Development Association (IDA) today announced the approval of a $196 million credit for its second water supply and sewerage project in Bombay. (DA is the World Bank's affiliate for con- cessionary lending. Bombay, with a population of 7.6 million, is the second largest city in India and a major industrial center. A rapidly expanding popula- tion has led to increasing demand for water supply and sanitation. The $411.6 million project will supply an additional 450 million 1 iters per day of water in the Greater Bombay area. It will maintain the supply of water for domestic purposes roughly at its present per capita • level as the population increases over the next 10 to 15 years. The project will slightly increase the water supply to industry. The water distribution system and facilities for slum areas will be improved. The project also contains provision for more intensive detection of distribution system losses and repair of existing mains. The sewerage component will improve and e~~end the collection system from 44% to 90% of the Greater Bombay area and will provide treatment and safe means of disposing of sewage from the whole of the urban population. It will provide additional public latrines for the slum areas where some 2.5 million people, one third of Bo~bay 1 s population, live. The supply of reasonably safe water and the provision of better sanitation through the improvement of the sewerage system, especially in the slum areas, will help reduce the incidence of water-borne and sanitation- related diseases in an area where 40% of all deaths are attributed to infec- tious and parasitic diseases. The project follows the first Bombay water supply and sewerage 'Project which is now being implemented with an IDA credit of $55 million approved in 1974. The IDA credit is for 50 years, including 10 years of grace. It carries no interest but bears a service charge of 3/4 of 1% per annum to cover IDA's administrative costs . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L D A T A • PROJECT: Second Bombay Water Supply and Sewerage COUNTRY: India TOTAL COST: $4 \ 1 • 6 mi 11 ion I DA FI NANC I NG : $196 mill ion, standard IDA terms OTHER FINANCING: Government of India Bombay Municipal Corporation (BMC) IMPLEMENTING ORGANIZATION: Bombay Municipal Corporation Municipal Office Building Mahapal ika Marg Te 1ex: 0114325 Fort, Bombay 1, India. Cable: BOWASEP PROJECT DESCRIPTION: It consists of construction of facilities required for the treatment, transmission and distribution of 450 mil- lion 1 iters per day of water, and for the improvement and extension of sewage collection, treatment and disposal; the provision of public water taps and latrines for the slum areas; the improved detection of water distribution system losses, repair of mains and • metering; training and technical assistance. PROCUREMENT: Civil works which include a large number of relatively small contracts, which are fairly widely dispersed throughout the project area, will not attract foreign bidders since overseas firms could not successfully compete with local bidders for works of this type and size. Larger and more specialized civil works valued at $100 million will be bid inter- nationally. A preference margin of 15% or the current rate of import duty, whichever is less, will be granted to local equipment manufacturers competing under international competitive bidding. A preference margin of 7-1/2% will be allowed for local contrac- tors in evaluating civil works bids. ECONOMIC RATE OF RETURN: 6% ESTIMATED COMPLETION DATE: 1984 - 0 - •