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Japan International Cooperation Agency to provide loan for water project in India

31 October 2012

Representatives of Indian government and JICA signing the loan agreement.

The Japan International Cooperation Agency (JICA) has signed an agreement with the Government of India to provide a low-interest, long term loan of JPY28.975bn ($364.74m) to support the Delhi Water Supply Improvement Project.

Under the Delhi Water Supply Improvement Project, the Indian government is aiming to upgrade and improve its old water supply systems and distribution networks in order to provide equitable and continuous water supply to the citizens of national capital city of Delhi.

The loan will be used to reconstruct and replace the current water supply facilities, and strengthen the geographical information system (GIS) on water supply systems and consulting services.

In addition to from the loan, JICA will also extend its technical cooperation to improve water facility operations and maintenance.

The daily water supply in Delhi is three hours on an average which is mainly due to the loss of water through leakages.

The old and worn out facilities and insufficient maintenance and operations have further contributed to water loss and the low supply rate.

Another factor contributing towards the low water supply rate is the capacity of the water treatment plants. The water treatment plants have not been designed considering the size of the area and the demand for the water.

India with assistance from JICA is working on the 'Master Plan for Improvement of Water Supply System in Delhi' to achieve its equitable and continuous water distribution target by 2021.

The JICA loan will be provided for 30 years, with another ten years grace period at an interest rate of 1.40% for the project and 0.01% for the consulting services.


Image: Representatives of Indian government and JICA signing the loan agreement. Photo: Courtesy of JICA.