PPIAF Supports the Design of PPPs for City-Wide 24/7 Water Service in Karnataka
In the mid-2000s, a pioneering contract for privately operated water service in sections of Hubballi-Dharwad, Belagavi and Kalaburagi cities proved that 24/7 water service was possible in India. Until then, despite the availability of enough water, residents in the majority of Indian cities received water for only a couple of hours a day due to poor management, system leaks, and financial problems of utilities. That initiative, financed as part of a World Bank project, also showed that it was feasible to shift from flat rate to volumetric billing and to partner with the private sector. PPIAF technical assistance support was used to help the Karnataka Urban Infrastructure Development and Finance Corporation prepare for the PPP by helping on range of issues, from convening stakeholder workshops to shape the PPP and to provide guidance on procurement and contractual issues to facilitate the new design, supporting city and state-level actors through the bid process. Ultimately, service increased from 10 hours a week to 24 hours a day; revenues increased almost seven fold; and despite an increase in clients, the volume of water was reduced by 2,500 m3/day, because leakage dropped to only seven per cent in the demonstration zones.