Communication - Press

HP signs MoU for 817-crore project with French agency

Shimla: The Himachal Pradesh government has signed a Memorandum of Understanding (MoU) with the French Development Agency – Agence Francaise de Development (AFD) – for the Rs 817.12-crore project to improve drinking water and sanitation services in five towns of the hill state.

The objective of the project is to develop better sewerage facilities in Manali, Bilaspur, Palampur, Nahan and Karsog and to improve drinking water supply in Manali and Palampu towns.

The MoU was signed by the secretary, Jal Shakti Vibhag, Amitabh Awasthi on behalf of the state government and country director, AFD, Bruno Bosle. Chief minister Sukhvinder Singh Sukhuand his deputy Mukesh Agnihotri were also present.

Sukhu said under the project, Rs 612 crore would be provided by the AFD, whereas the state government would provide Rs 204.85 crore.

He said the beneficiaries of the project would receive house service connections in these five cities and the sewerage treatment plant would be designed with the cutting-edge technology, so that the effluents could be reused for agricultural and industrial purposes.

The project aims to improve the environmental condition of water sources, reduce water-borne diseases, manage quality sanitation facilities in accordance with local regulations and international best practices and bring financial sustainability to the drinking water and sanitation sector, said Sukhu.

Out of Rs 425.85 crore in the first phase, Rs 340 crore will be financed by the AFD. In the second phase, AFD will provide Rs 272 crore out of a total project cost of Rs 371 crore. The implementation period of the project is three years. Phase-II will begin after 18 months from the commencement of Phase-I, he added.

“The state government is committed to provide the best sanitation facilities and quality drinking water to the people of the state and this project will go a long way in achieving this goal,” said the CM.


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