World Bank and AIIB approve USD 300 million loan to Punjab

The World Bank and Asian Infrastructure Investment Bank (AIIB) have approved the loan for USD 300 million (about Rs 2,190 crore) canal-based drinking water projects in Punjab. The project is aimed at ensuring quality drinking water and minimise water losses for Amritsar and Ludhiana. The entire project will be co-financed by IBRD (World Bank) for USD 105 million, Asian Infrastructure Investment Bank for USD 105 million and the Punjab government for USD 90 million. The Infrastructure has been designed to meet the water demand for 30 years. At present, the Canal Based Water Supply Project for Amritsar has been awarded to M/s Larsen & Toubro Limited at a contract amount of Rs.784.33 Crore. The total estimated Design-Build Cost of the Ludhiana Project is Rs.1093.92 Crore and the period for completion of the same is 36 months. The estimated Operation & Maintenance cost is Rs.270.73 Crore for 10 years. The total amount for the project comes out to Rs.1364.65 Crore.