JICA and India forge partnership to ensure safe drinking water for Uttarakhand with an ODA loan of INR 914 crores

New Delhi, February 20, 2024: Japan International Cooperation Agency (JICA) signed a loan agreement worth JPY 16,211 million (approximately INR 914 crores) to bolster the urban water supply system in Uttarakhand. Under the banner of improving water infrastructure, JICA has pledged support to address critical challenges faced by communities in the state, contributing to sustainable development goals and climate change resilience.

As India’s population continues to grow, there is escalating demand for water resources amid rapid economic growth and urbanization. The state of Uttarakhand, nestled in the Himalayas and a vital water source for downstream regions, faces unique challenges exacerbated by its rugged terrain and climatic variability. Despite significant strides in development, a substantial portion of Uttarakhand's population still lacks reliable access to drinking water, especially in remote areas where women and children bear the burden of water collection.

Aligned with Uttarakhand's development vision and water policy objectives, the “Project for the Improvement of Urban Water Supply System in Uttarakhand" aims to enhance water infrastructure across the state, ensuring stable access to safe drinking water and fostering resilience to climate change impacts. The Project targets to support 38 towns in 11 districts throughout the state, and the towns in Haridwar, Tehri, Almora, and Pithoragarh districts are expected to be taken up on priority. For the design year of 2054, the beneficiaries are estimated to be around 7 lakhs population.

The project encompasses various components essential for enhancing water supply infrastructure, including the development of pumping and gravity flow distribution systems, as well as water intake systems from wells. Additionally, consulting services will be provided for the effective implementation of the Project, including capacity building of counterpart agencies, such as strengthening operation and maintenance and promoting household connections. Upon completion, the project is expected to significantly improve the lives of Uttarakhand's residents by ensuring stable water supply, thereby enhancing health outcomes and socio-economic opportunities.

The loan agreement for the project was signed between Mr. Vikas Sheel, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. SAITO Mitsunori, Chief Representative, JICA India.

Speaking on this occasion, Mr. SAITO Mitsunori, Chief Representative of JICA India office said, “JICA's partnership with the Government of India reflects Japan's commitment to promoting sustainable and inclusive growth, with a focus on basic social services like water supply and sanitation. The project also aligns with Japan's broader foreign policy initiatives, including the Free and Open Indo-Pacific Partnership, by addressing critical challenges through cooperative solutions.”

Additionally, on the sidelines of the loan agreement signing, JICA and Executing Agency, Uttarakhand Peyjal Sansadhan Vikas Evam Nirman Nigam (UKPJN) agreed to initiate a pilot activity for adopting innovative technology into the project’s operation by collaborating with private entities. The goal of the activity is to generate a more substantial impact, improve project implementation efficiency, enhance service delivery, and ultimately benefit the less privileged.

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.7743700/-

About JICA
Established, by a specific law, as an incorporated administrative, as the sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries like India and provides assistance in the form of loans, grants, and technical cooperation so that emerging countries can strengthen their capabilities.

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