The Bangalore Water Supply and Sewerage Board has drawn up a Rs 760 crore project for the upgradation of the water supply and sewage system of Bangalore.
It has sought 'expression of interest' from international bidders and from Indian and international consortiums for investing on a rehabiltate-operate-transfer basis. The board will invite bids for these projects from shortlisted parties.
Land has been acquired for the project but sovereign guarantee will not be provided to investors. The project includes conducting studies of the existing water supply and sewage system, preparing a techno-economic feasibility report and the execution of the project. The board has also shortlisted multinationals for Cauvery Stage IV Phase I and II. Together, they involve an investment of Rs 2,500 crore.
The Japanese Overseas Economic Cooperation Fund (OECF) will fund 75 per cent of the Rs 1,200 crore Phase I project that will bring 270 million litres of water to the city every day. The other financiers include the Bangalore Development Authority, the state government and the water supply board.
The Steel Authority of India Limited (SAIL) has bagged the largest contract for the project worth Rs 120 crore for supply of mild steel plates.
For the Rs 1,300-crore Cauvery Stage IV Phase II, global majors Biwater of Malaysia and consortiums led by GVK International and Bovis India are among the seven companies shortlisted. It will be funded partly by the state government, Hudco, LIC and other financial institutions besides the water supply board. The board plans to raise Rs 100 crore through bonds. The project envisages bringing an additional 500 million litres of water per day to the city.
At present, the city receives 560 million litres of water per day. The additional 770 million litres, to be made available by 2003, is expected to meet the demand till 2011.
Meanwhile, the Centre is considering a proposal to accord further concessions and tax incentives to boost private sector participation in water supply and sanitation projects similar to those given to the power sector.
