The Punjab government will seek $ 210 million loan from World Bank/Asian Infrastructure Investment Bank (AIIB) for the canal-based water supply project for Amritsar and Ludhiana under the Punjab Municipal Service Improvement Project (PMSIP).
The decision to seek the loan was taken on Friday by the state cabinet at a virtual meeting chaired by Chief Minister Captain Amarinder Singh. The cabinet authorised the Chief Minister to take any decision to meet the objectives of the project and to ensure successful & timely implementation of various activities proposed by the World Bank/AIIB.
The proposed project investment is expected to cost around US$ 300 million, of which the International Bank for Reconstruction and Development (IBRD) will finance 70 percent and the Punjab government 30 percent.
The Cabinet was informed that the present water supply system to the residents of Ludhiana and Amritsar towns is through deep bore tube-wells installed at different sites. However, with time, the groundwater level is depleting causing the tube-wells to need frequent replacement. Also, the discharge in the tube-wells gets reduced, as a result of which residents often complain of getting insufficient water for drinking purpose.
To overcome this problem, it has now been decided to shift to canal-based water supply in these two towns with the assistance of the World Bank/AIIB by seeking a loan of US$M 210. The work for canal-based water supply for Amritsar town has already been awarded, whereas a request for proposal for Ludhiana town is being floated. The implementation period for this project shall be three years after the award of work.