K'taka to seek WB funds

The Karnataka government is in the process of seeking additional funds from the World Bank for development works like creation of sewage and drinking water system in the new areas of Bruhat Bangalore Mahanagar Palike (BBMP) or the Greater Bangalore City Corporation.

The BBMP was created in 2007 by merging eight urban local bodies with the then Bangalore City Corporation. At present, there are 198 wards in BBMP and most of them lack basic civic amenities.

The Bangalore Water Supply and Sewerage Board (BWSSB), is currently implementing a Rs 989 crore project under the Karnataka Municipal Reform Project (KMRP) in 10 assembly constituencies in and around Bangalore city.

This project involves a financial assistance of Rs 605 crore from the World Bank and Rs 383 crore sanctioned under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). However, due to cost escalation, the project cost has been revised at Rs 1,300 crore.

“We have approached the World Bank for an additional loan of Rs 500 crore to complete the project by April 2012 in all 198 wards of the BBMP area,” P B Ramamurthy, chairman, BWSSB, said.

In addition to the project, the government has drawn up a project involving an expenditure of Rs 2,300 crore for developing sewage and drinking water supply system for 110 villages in the greater Bangalore area. The proposal is presently before the state finance department for its approval. Once it is approved, the proposal will be taken to the state cabinet for the final nod, he said.

“As regards to the funds for the project, we are working out the details. We plan to approach the World Bank and Japan Bank for International Cooperation (JBIC) among others for funds. The final decision on raising funds will be taken up after the government nod,” Ramamurthy told Business Standard.

Under the KMRP, the BWSSB is planning to develop sewage system spanning 2,007 km in Bangalore city. This includes 305 km of trunk lines and 180 km of main roads where the drainage pipes will be laid. In addition to this, a 63-km long storm water drain will be developed in the new areas of the BBMP, Katta Subramanya Naidu, minister for IT/BT and BWSSB, said.

He said, of the 25 packages under the programme, work contracts have been awarded for 17 packages and work has commenced.

The World Bank had sanctioned funds for the project in March 2006, but the work had not been taken up due to poor response from contractors. Tenders for the project were floated in January 2009 and the work awarded recently.