World Bank approves $426M program for water security in Bengaluru

World Bank approves $426M program for water security in Bengaluru
Banking & Financial Services
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Ajay Banga, 14th president of the World Bank | Linkedin

The World Bank has approved a program to enhance water security for over four million residents in Bengaluru, India. The initiative, titled the Karnataka Water Security and Resilience Program, aims to address water management issues in one of India's fastest-growing cities. Bengaluru has been experiencing frequent floods and droughts, with estimated losses exceeding $1.2 billion annually since 2009.

The $426 million program will focus on reviving 183 lakes in Bengaluru that serve as natural reservoirs during heavy rainfall. Additionally, nine sewage water treatment plants will be constructed to prevent sewage from entering these lakes and drains. Treated wastewater will be repurposed for industrial use and groundwater replenishment in the greater Bengaluru area. Over 100,000 households are expected to receive sewerage connections for the first time.

"The program will increase revenues of the Bangalore Water Supply and Sewerage Board and mobilize $5 million in private capital," stated Auguste Tano Kouame, the World Bank’s Country Director for India. He emphasized that this would improve efficiency, restore aging water infrastructure, and engage the private sector in developing tools such as smart water meters.

To help Bengaluru adapt to extreme weather events impacting economic growth, advanced flood modeling using computer simulations will be implemented. This approach is intended to optimize future investments in the city's resilience.

"This Program will also help communities through early warning systems and response to extreme weather by strengthening the Karnataka State Natural Disaster Monitoring Centre," noted Kristoffer Welsien and Anup Karanth, Task Team Leaders for the Program.

The International Bank of Reconstruction and Development (IBRD) is providing a $426 million loan for this project with a maturity period of 20 years and a grace period of five years.