Punjab Cabinet approves World Bank-supported USD 285.71 mn canal water supply project for Amritsar and Ludhiana

Punjab canal water supply

The Punjab Cabinet on Wednesday approved a USD 285.71 million project for canal-based water supply for Amritsar and Ludhiana cities under World Bank financing.

The International Bank for Reconstruction and Development (IBRD) would finance US$ 200 million (70%) and Punjab Government US$ 85.71 million (30%), as per the proposal mooted by the Local Government department for the adoption of Resettlement Policy Framework (RPF) under Punjab Municipal Services Improvement Project.

A decision to this effect was taken in a Cabinet meeting chaired by Chief Minister Captain Amarinder Singh held through video conferencing.

The project would have four components including strengthening urban and water supply service management with a total cost of US$ 11.61 million, improving water supply infrastructure at US$ 240.38 million, besides Land Acquisition and Rehabilitation & Resettlement involving a cost of US$ 15.62 million, COVID crisis response to the tune of US$ 10 million and project management at US$ 7.6 million, in addition to Front End Fee of US$ 0.5 million.

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The Punjab Government had, in June 2018, through the Government of India’s Department of Economic Affairs (DEA), requested the World Bank to support Punjab for implementing 24X7 canal-based water supply projects in Amritsar and Ludhiana.

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A spokesperson of the Chief Minister’s Office said that the RPF lays down procedures and measures to ensure adequate accountability and transparency in the process of assessing land-related impacts. A fair process will be put in place for acquiring land and for compensating those adversely impacted due to replacement cost as described in ESS5 of World Bank, so as to improve or at least restore their livelihoods and standards of living to pre-project levels.

-PTC News