The Punjab government will seek a $210 million loan fromthe World Bank or the Asian Infrastructure Investment Bank (AIIB) for thecanal-based water supply project for Amritsar and Ludhiana under the PunjabMunicipal Service Improvement Project (PMSIP).
The decision to seek such loan was taken on Friday by thestate Cabinet at a virtual meeting chaired by Chief Minister Amarinder Singh.
The cabinet authorised the Chief Minister to take anydecision to meet the objectives of the project and to ensure successful andtimely implementation of various activities proposed by both the lenders.
The proposed project investment is expected to costaround $300 million, of which the International Bank for Reconstruction andDevelopment (IBRD) will finance 70 per cent and the Punjab government 30 percent.
The cabinet was informed that the present water supplysystem to the residents of Ludhiana and Amritsar towns is through deep boretubewells installed at different sites.
However, with the passage of time, the groundwater levelis depleting, causing the tubewells to need frequent replacement. Also, thedischarge in the tubewells gets reduced; as a result of which residents oftencomplain of getting insufficient water for drinking purpose.
To overcome this problem, it has now been decided toshift to a canal-based water supply in these two towns by seeking a loan.
The work for the water supply for Amritsar town hasalready been awarded, whereas request for proposal for Ludhiana town is beingfloated. The implementation period for this project will be three years afteraward of work.