NEWS – The World Bank, which is giving a loan of $426 million (₹3,500 crore) to Bengaluru for its water resilience project, has imposed nine disbursement-linked indicators (DLIs), including service benchmarking, digital governance, climate financing, and mobilisation of own resources, for the loan.

HIGHLIGHTS

Overview of the Loan

• Lending Institution: World Bank
• Amount: $426 million (₹3,500 crore)
• Purpose: Bengaluru’s water resilience project
• Implementation Period: 2026–31
• Financing Mechanism: Program-for-Results Financing (PforR)
  • Loan disbursal linked to specific outcomes
  • Nine Disbursement-Linked Indicators (DLIs) mandated

Project Details

• Total Cost: ₹5,000 crore
  • World Bank loan: ₹3,500 crore
  • State government funding: ₹1,500 crore
• Implementing Agencies:
  • Bruhat Bengaluru Mahanagara Palike (BBMP)
  • Bangalore Water Supply and Sewerage Board (BWSSB)
• Key Activities:
  • Fortifying storm-water drains (SWDs)
  • Building sewage treatment plants (STPs)

Disbursement-Linked Indicators (DLIs)

1. Service Benchmarking: Establishing measurable outcomes for service improvements.
2. Digital Governance: Leveraging technology for efficient project implementation.
3. Climate Financing: Developing funding strategies to address climate change impacts.
4. Reuse of Treated Water: Promoting circular economy practices.
5. Flood Alert System: Installing sensors in SWDs for advanced flood warnings.
6. Operation & Maintenance: Ensuring the longevity and proper functioning of infrastructure.
7. Sluice Gates Installation: Enhancing lake management capabilities.
8. Resource Mobilization:
   • BBMP: Property tax reforms
   • BWSSB: Planned water tariff hike (expected in 2025)
9. Disaster-Risk Governance: Setting up a state-of-the-art control room for climate risk management.

Stakeholder Consultation

• Participants: Civic agencies and World Bank representatives
• Key Discussions:
  • Specific targets for DLIs
  • Quality-focused outcomes, e.g., water quality in lakes rejuvenated by STPs

Key Innovations and Mandates

• Circular Economy: Focus on reuse of treated water.
• Flood Management: Sensors in SWDs and sluice gates in lakes.
• Climate Financing:
  • Leveraging the Climate Action Plan
  • Increasing local resource generation
• Advanced Control Room:
  • Located at the Karnataka State Natural Disaster Monitoring Centre
  • Cost: ₹350 crore

Implementation and Compliance

• Existing Progress: Several DLIs already partially implemented.
• Future Actions:
  • Submission of documentation to the World Bank.
  • Adhering to DLIs during project execution.