French firm, Chandigarh MC to ink water agreement on November 18

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Chandigarh, October 11

The local MC will sign a project agreement for the 24×7 Water Supply Scheme with the Agence Franccedil;aise de Deacute;veloppement (AFD) on November 18.

This was stated by MC Commissioner Anindita Mitra during the second project governance committee meeting held under the chairmanship of the UT Adviser today.

The meeting was attended by representatives of the European Union (EU) and the lending agency along with other MC officials.

The credit facility agreement (CFA) for providing Rs 413 cr loan to the local MC was earlier signed between the Department of Economic Affairs and the AFD in New Delhi.

Besides the loan, the EU is also providing a grant of Rs 98 crore for the project. The loan is to be repaid in 15 years with a six-year moratorium. The residents will pay the loan through water bills and the rates will increase after a few years. The total cost of the project is 590 cr.

After a presentation by the MC, the Adviser directed reduction in timelines for the execution of the project and insisted it must start by June 2023. He said the contractor must operate the system for 15 years after completion of defect liability period to increase the accountability of executing agency.

The Adviser concluded by emphasising the importance of the project for the city and that regular monitoring be done at all levels to ensure timelines were adhered to.

Rs 590-cr Project

Besides the loan, the EU is also providing a grant of Rs 98 crore for the project. The loan is to be repaid in 15 years with a six-year moratorium. The residents will pay the loan through water bills and the rates will increase after a few years. The total cost of the project is Rs 590 crore.