The proposed privatisation of water supply in Karnataka is a terrible way of solving the water crisis. B&E explains why
Exactly four months back, the fifth World Water Forum convened at Istanbul. During the seven days extravaganza, there was a high voltage scenario in the capital of Turkey. More than 30,000 delegates across the world participated in that conference and they discussed the value of ‘blue gold’ at this moment and its future. In and around the same moment, few important files were moving in between Hubli-Dharwad, Gulbarga, Belgaum Corporation and Karnataka State Government. There in Istanbul, few hundred global activists gathered in front of conference hall and protested against water privatisation, a new inhuman phenomenon. In contrast, in Karnataka, the stage was set and a red carpet was rolled out for privatisation of water supply in the three cities.
According to Government sources, the pilot projects conducted in few selected wards of the above three cities were highly successful. Now the time has come for a full fledged project. With the help of World Bank funds, the Government of Karnataka is now planning to privatise water supply in three cities. If everything goes according to plan, the project will be on very soon. In February, Karnataka Urban Infrastructure Development & Finance Corporation (KUIDFC) had invited consultancy firms for expression of interest in this project. More than 36 firms showed interest in this project and out of them around 12 have been short listed. Soon Urban Development Department will finalise the name of the firm on the basis of the World Bank guidelines. Then, that firm will prepare a project report for 24*7 water supplies to cover the entire Corporation areas of Hubli-Dharwad, Belgaum and Gulbarga cities. The firm will be asked to give transaction support, including financial and institutional feasibility aspects, preparation of draft contract, bidding document and assistance in bidding process till award of the contract on PPP (Private Public Participation) basis. So, the stage is set, and according to sources, within two months Government will call for a global tender for this proposed Rs.735 crore project. Out of the total project cost, the private company will bear 50%, by means of World Bank loan, the State Government will invest 40% and the rest 10% will come from the local body.
Exactly four months back, the fifth World Water Forum convened at Istanbul. During the seven days extravaganza, there was a high voltage scenario in the capital of Turkey. More than 30,000 delegates across the world participated in that conference and they discussed the value of ‘blue gold’ at this moment and its future. In and around the same moment, few important files were moving in between Hubli-Dharwad, Gulbarga, Belgaum Corporation and Karnataka State Government. There in Istanbul, few hundred global activists gathered in front of conference hall and protested against water privatisation, a new inhuman phenomenon. In contrast, in Karnataka, the stage was set and a red carpet was rolled out for privatisation of water supply in the three cities.
According to Government sources, the pilot projects conducted in few selected wards of the above three cities were highly successful. Now the time has come for a full fledged project. With the help of World Bank funds, the Government of Karnataka is now planning to privatise water supply in three cities. If everything goes according to plan, the project will be on very soon. In February, Karnataka Urban Infrastructure Development & Finance Corporation (KUIDFC) had invited consultancy firms for expression of interest in this project. More than 36 firms showed interest in this project and out of them around 12 have been short listed. Soon Urban Development Department will finalise the name of the firm on the basis of the World Bank guidelines. Then, that firm will prepare a project report for 24*7 water supplies to cover the entire Corporation areas of Hubli-Dharwad, Belgaum and Gulbarga cities. The firm will be asked to give transaction support, including financial and institutional feasibility aspects, preparation of draft contract, bidding document and assistance in bidding process till award of the contract on PPP (Private Public Participation) basis. So, the stage is set, and according to sources, within two months Government will call for a global tender for this proposed Rs.735 crore project. Out of the total project cost, the private company will bear 50%, by means of World Bank loan, the State Government will invest 40% and the rest 10% will come from the local body.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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