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PRESS RELEASE January 4, 2018

World Bank Approves $120 million to Improve Access to Water Supply Services in Hilly State of Uttarakhand, India

WASHINGTON, January 04, 2018 – The World Bank Board today approved $120 million for the Uttarakhand Water Supply Program for Peri-Urban Areas which will help increase access to improved water supply services in peri-urban areas in Uttarakhand, a mountain state richly endowed with natural resources.

In recent years Uttarakhand has experienced growth and urbanization that has led to the rise of significant “peri-urban” areas (mostly in the plains) that, while classified as rural, are effectively urban in nature (in terms of density of population, the structure of the economy, and aspirations of the people).  The “disconnect” between the formal classification of these populated areas and their actual nature presents many challenges to development, including provision of water supply, along with unique governance, infrastructure, and service delivery challenges.

From 2001 to 2011, the state’s urban population grew by nearly 42 percent, which is substantially higher than the national average of 32 percent. While the state has made significant strides in piloting and implementing innovative approaches in water supply and sanitation services, water supply services in peri-urban areas have not been a focus.

This program will help the state increase water supply coverage as well as ensure sustainable water supply service delivery in peri-urban areas. It will develop and implement a service-oriented and efficient water supply policy for peri-urban areas, strengthen the current monitoring and evaluation systems, and provide dedicated incentives for preparation and adoption of water supply ‘master-plans’ in peri-urban areas.

Over 700,000 people residing in peri-urban areas of the state are expected to benefit from the program.

The program will focus on increasing coverage, quality and reliability of water supply services in all peri-urban areas of the state. Services would be provided through piped network and metered service connections with a focus on improving the operation and management (O&M) of it. Some of the efforts at improving services under the program will include ensuring a minimum 16-hour water supply which meets Government of India water quality standards, supplied at a minimum pressure of 12m, for no less than 300 days in a year; 100 percent customer metering and volumetric tariffs; and sustainable water supply systems which recover O&M costs through user charges with transparent subsidies, if any.

“With rapid economic growth and urbanization, there is a strong demand for better public services, including water supply in peri-urban areas. This program is now a priority for the state as it moves towards achieving its goal of universal water supply coverage in urban areas by 2030 and in rural areas by 2022. We hope this program shows the way for others addressing service delivery issues in challenging `peri-urban’ areas that are increasingly part of the landscape of India and other countries in South Asia.” said Smita Misra, Lead Water Supply and Sanitation Specialist and World Bank’s Task Team Leader for the program.     

The $120 million loan from the International Bank for Reconstruction and Development (IBRD), has a 5-year grace period, and a maturity of 17 years. 


In India:
Nandita Roy
In Washington:
Elena Karaban
+1 (202) 473-9277