AFD signs Credit Facility Agreement for financing the Puducherry Water Supply Project

French Development Agency (AFD) signs 65-million-euro Credit Facility Agreement with Government of India for financing the Puducherry Water Supply Project.

Credit Facility Agreement of 65 million euros for financing the Puducherry Water Supply Project - JPEG

New Delhi, 30 June 2017

The Government of India, represented by Mr. S. Selvakumar, Joint Secretary - Department of Economic Affairs (DEA), and the French Development Agency (AFD), represented by Mr. Hervé Dubreuil, Deputy Director for India, today signed a Credit Facility Agreement of 65 million euros for financing the Puducherry Water Supply Project. The signing took place in New Delhi in the presence of Mr. Manoj Kumar Parida, Chief Secretary to Government, Puducherry.

An AFD financing towards sustainable use of water resources in Puducherry

Like many other parts of the country, Puducherry is an area of water scarcity. Demographic and economic growth has put severe stress on the available water resources. Climate change is likely to add greater strain on the already affected water resources. Hence, there is an urgent need for planning and implementing the sustainable use of water resources.

The Union Territory’s Public Works Department (PWD) will be responsible for the implementation of this policy in coordination with the Puducherry Pollution Control Committee (PPCC).

The objective of the project is to contribute to the improvement of the living conditions of the people of Puducherry and its environs, by increasing the availability of drinking water. It also aims to create a healthy and attractive environment to back the development of the city.

Ensuring continuous water supply for the people of Puducherry through water infrastructure rehabilitation and smart solutions

In order to meet water demand by 2032 and ensure continuous supply, it is envisaged to drill 84 borewells, acquire submersible pumps, install electrical transformers, set up pumping stations and reservoirs, develop intermediate storage wells and pipes for the distribution network, and promote individual connections for the urban poor.

In addition, it is planned to extend the water supply to the peri-urban area of the city of Puducherry by increasing the number of tanks.

The project involves the acquisition of data collection and monitoring equipment (SCADA) for the operation of boreholes and the city’s drinking water supply system, with a view to improving its efficiency. An important component is dedicated to reach 100% count for home connections. The project will also support the establishment of a computerized billing, collection and subscriber management system to reach 100% user recovery rate while improving the quality of the water distributed to the highest standards.

This project will also see AFD provide a significant technical assistance and capacity building component. This component aims at preparing all the necessary studies to set up the Sewerage Scheme for the urban and other surrounding areas of Puducherry that have been left out. It will also involve setting up the technical conditions for effectively managing the facilities and providing the necessary utility management tools, thus establishing a long-term and modern Operation and Maintenance System.

The Technical Assistance will help the PWD to follow the AMRUT guidelines for investment in water and sanitation.

Strengthened cooperation between France and India on sustainable water management

The project is in line with the Smart Cities Mission launched in 2015 by the Government of India and is part of the Smart Cities Proposal of Puducherry. AFD also provided technical assistance to Puducherry to draw up its Smart City proposal, which was selected by the Government of India for the Smart Cities Mission on 23rd June. The project duration is five years.

New financings could be brought by AFD in the future to support the improvement of the entire water cycle in Puducherry, including appropriate treatment of sewerage water.

AFD is also providing 49m euros of financing to reorganize and optimize the drinking water supply network of the city of Jodhpur in Rajasthan, with an approach that focuses on energy and water efficiency and on improving the service for residents.

About Agence Française de Développement (AFD)

AFD, a public financial institution, implements the policy defined by the French Government and works to combat poverty and promote sustainable development. AFD operates on four continents via a network of 75 offices, and finances and supports projects that improve living conditions for people, boosts economic growth and protects the planet. In 2016, AFD earmarked 9.4bn eurosto finance projects in developing countries and for overseas France. www.afd.fr

Last modified on 30/06/2017

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