The Hindu Business Line : ADB reallocates $60-m loan for water supply in Jaipur

THE Asian Development Bank (ADB) will help the Government of Rajasthan, to construct a new water supply system for its capital city of Jaipur through a $60-million loan reallocation under the ongoing Rajasthan Urban Infrastructure Development Project.

The $362-million project, backed by an ADB loan of $250 million approved in December 1998, is about 60 per cent complete.

It is improving the urban infrastructure of the State's six major cities, including the water supply system for Jaipur.

The current water supply system in Jaipur is almost 100 per cent dependent on ground water sources, which are shrinking and losing quality due to over extraction and repetitive prolonged droughts in the area.

A detailed aquifer study financed by a grant from the Government of France, completed in 2000, indicated that at current extraction rates, the aquifers in Jaipur would be severely depleted before 2010.

The State consequently decided to construct the long planned Bisalpur water supply system now, instead of by 2010 or so as originally planned, and sought the ADB's assistance to reallocate loan savings.

The $60-million loan reallocation will help construct a new $220-million water supply system for Jaipur, from the existing Bisalpur dam and reservoir, located 120 km from Jaipur.

"The $120-million Phase I works including a new intake, water treatment plant, pump station, 100-km pipeline and storage reservoir will provide Jaipur with a secure water source through 2021 and beyond, thereby allowing the ground water aquifers to recharge,'' Mr Alex Jorgensen, Principal Urban Specialist and Head, Urban Development, at ADB's India Resident Mission said here.

Phase II of the Bisalpur system, costing $104 million, is supported by an $85-million loan from the Japanese Bank for International Cooperation (JBIC) and will help the State rehabilitate and expand the water distribution system in Jaipur.

The Japanese Government has also provided a substantial grant to conduct leakage detection studies to improve the efficiency and overall operation of the Jaipur distribution system.

The ADB loan has covenants requiring the State to rationalise water tariffs and improve revenues in each of the six project cities to ensure sustainability.

As part of the negotiations to add the Bisalpur system under the project, the State Government provided ADB and JBIC with an updated water tariff plan to be undertaken over the next couple of years.