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Press Release

March 31, 2016

JICA extends ODA loan of 25,796 million Japanese Yen (approx. INR 1,535 crore) for Odisha Integrated Sanitation Improvement Project (Phase II)
The assistance will enhance sanitary conditions of residents and water quality of surrounding rivers

PhotoMr. Takema SAKAMOTO, Chief Representative, JICA India Office with Mr. S Selvakumar, Joint Secretary, DEA, Ministry of Finance, Government of India in New Delhi

New Delhi, Mar 31, 2016: The Japan International Cooperation Agency (JICA) today signed an agreement with the Government of India to provide 25,796 million Japanese Yen (approx. INR 1,535 crore) Official Development Assistance (ODA) loan for the Odisha Integrated Sanitation Improvement Project (Phase II). The ODA loan's conditions are very concessional, i.e. 0.3% of interest rate and 40 years of repayment period (including 10 years of grace period). This is the additional loan for Phase I, which was signed on March 30, 2007 to provide up to 19,061 million Japanese Yen (approx. INR 756). By adding this loan, the cumulative loan amount for this project becomes 44,857 million Japanese Yen. The assistance is to provide reliable sewerage service in Bhubaneswar, and sewerage and storm water drainage service in Cuttack by constructing and improving the sewerage and drainage facilities and by supporting capacity building of related agencies, thereby improving sanitary conditions of the residents including the poor in the concerned areas and improving water quality of surrounded rivers.

JICA's assistance is to support construction of sewerage system which includes construction of 3 Sewerage Treatment Plants (STPs), with total capacity of 100 Million Liter per Day (MLD), of which 2 STPs in Cuttack are designed to treat all domestic wastewater generated within Cuttack municipal area and 1 STP in Bhubaneswar is designed to treat domestic wastewater generated within Bhubaneswar district 6. The assistance also includes extensive sewer networks (nearly 700 kms) in Bhubaneswar and Cuttack, as well as improvement of drainage system (more than 20 kms) in Cuttack.

The Executing Agency of the project is Orissa Water Supply and Sewerage Board (OWSSB), which is responsible for construction of sewerage treatment plants, pumping stations and sewers (including house connections), construction and rehabilitation of drainage facilities, and consulting services (excluding institutional improvement). Public Health Engineering Organization (PHEO) is responsible for institutional improvement/water sector reforms. WATCO has been created by the Government of Odisha to harness the service level improvement to its citizens in a more professional manner in line with the water and sanitation service reforms instituted by the Government of India. Besides improving in service deliveries, this would result in sustainable water and sanitation management in Bhubaneswar and Cuttack. In addition, Bhubaneswar Municipal Corporation (BMC) and Cuttack Municipal Corporation (CMC) would implement social development improvement measures, as well as public awareness campaign in Bhubaneswar and Cuttack cities.

"Appropriate water and sanitation services are absolutely essential for public health and better quality of life. JICA will provide its full support for reliable sewerage and storm water drainage services in Bhubaneswar and Cuttack in the State of Odisha by constructing and improving the sewerage and drainage facilities, and by supporting capacity building of related agencies, thereby improving sanitary conditions of the residents including the poor in the concerned areas and improving water quality of surrounded rivers," said Takema Sakamoto, Chief Representative, JICA India Office.

The water supply demand has increased in India in tandem with growth in population and in economic activities, and corresponding sewage generation exceeding the treatment capacity is causing a threat to public health and living environment. Current sewerage capacity in Bhubaneswar and Cuttack is extremely insufficient. For example, generated sewerage (39 MLD) in District 6 of Bhubaneswar is discharged without treatment. In Cuttack, the current sewerage capacity is only 33 MLD, while sewerage volume is estimated 85 MLD. Therefore, the wastewater is generally being discharged into the storm water drains taking polluted water to the ultimate surrounding Kathajori and Mahanadi rivers. The situation worsens during the rainy season. Without doubt, sewerage capacity development in these cities is one of the highest prioritized challenges to be very urgently tackled.

JICA has been assisting enhancement of water supply and sewerage infrastructure in India since 1991, and has extended 512 billion Japanese Yen (approx. INR 30,000 crore) in ODA loans for 29 such infrastructure development projects across India. Over 3 crore people stand to receive water supply through projects facilitated by JICA assistance, and over 1.5 crore people stand to benefit from the sewerage infrastructure being developed with JICA assistance.

About JICA

Established, by a specific law, as an independent administrative institution under the Government of Japan, the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a sole Japanese governmental agency in charge of ODA implementation. JICA works as a bridge between Japan and emerging countries, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.

JICA India Office Web: http://www.jica.go.jp/india/english/
JICA India Brochure: http://www.jica.go.jp/india/english/office/others/brochures.html

For further information, please contact:
JICA India Office
Ai Tachikawa/ Vini Sharma
+91 11 47685500
Tachikawa.Ai@jica.go.jp / sharmavini.id@jica.go.jp

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