BMC Appoints French firm as consultant for
the $600,000World Bank-aided water privatisation project in K-East ward
Even as Delhi is dithering over water reforms, the Brihanmumbai Municipal
Corporation (BMC) has gone ahead with its plan to improve the water
distribution system in the city.
It has appointed French firm Castalia as consultant for the $600,000 World
Bank-aided water privatisation project in the K-East ward. The firm will
study the operations of the hydraulic department and suggest ways to reduce
water theft and contamination, plug leakages, prevent pipe bursts and
increase water output.
After a year-long study, the firm will help the BMC frame tender to appoint
a private contractor for managing its operations at Andheri. The model will
be replicated in other wards.
But the BMC’s move to implement the pilot project in the sprawling K-East
ward has not gone down well with Action for Good Governance and Networking
in India (AGNI), an NGO. James John, AGNI’s coordinator for K-East ward,
said, “Privatisation of water is aimed at solving problems, providing 24×7
supply and eradicating theft. But why has the BMC chosen K-East – the
highest revenue-generating ward? Instead, the corporation should have chosen
wards facing (acute) water problems.” BMC earned a revenue of Rs 46 crore
from water supply to the ward during 2004-05. With privatisation, the civic
body may lose control over pricing.
But VG Sahasrabudhe, nodal officer, K-East ward, said, “We cannot increase
the price of water supply.” Accepting that it was BMC’s primary duty to
supply water, Sahasrabudhe added the study would help the civic body carry
out a water audit. “Currently, we don’t know what quantity of water is
supplied to the ward, from which source (lake), and what should be the
actual revenue earnings.” The BMC has installed 25,000 meters to measure the
quantity of water utilised.
A spokesperson of the World Bank said there was no privatisation in the
project, which would begin in January. The consultants had not been asked to
suggest ways and means to implement privatisation, he noted. “The
consultants are appointed following BMC’s request for fund for technical
assistance to arrest the gradual downtrend in the distribution system’s
performance and to achieve equity in the provision of water supply service,”
the spokesperson said.
Responding to fears that the project would face a similar fate as the one in
Delhi, the spokesperson said, “Unlike Delhi, there would be no bank loan for
physical improvement of the distribution system, or its operation in K-East
ward.”
“The entire future operation, will be funded by the BMC,” the spokesperson
added.
Publication: DNA; Date:Dec 9, 2005; Section: Mumbai; Page Number:6
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