09-07-2025
Chandigarh: French delegation, MC discuss water supply project funding
A high-level delegation from the French development agency Agence Française de Développement (AFD) held a crucial meeting with officials of the Chandigarh municipal corporation (MC) on Tuesday to discuss the city's 24x7 Pan-City Water Supply Project. During the meeting, MC officials raised several queries, particularly about the project's funding structure and overall implementation viability, before taking the final call on rolling it out across the city. The Pan-City 24x7 Water Supply Project is designed to cover all 35 wards of Chandigarh and aims to replace the current intermittent water supply system with a continuous, round-the-clock model. (HT photo for representation)
The AFD team visited the Integrated Command and Control Centre (ICCC) and the Supervisory Control and Data Acquisition (SCADA) Centre to assess the technological backbone and project preparedness. Municipal commissioner Amit Kumar and chief engineer Sanjay Arora gave a detailed presentation on various technical and financial aspects of the project. The French delegation also visited Manimajra to evaluate the pilot project on ground, which has recently drawn scrutiny from the vigilance department over multiple implementation concerns.
'Various aspects like finances, project viability and implementation process were discussed in detail. MC officials, after consulting with the high power committee, will officially raise queries in a letter to the AFD, so that all concerns can be resolved,' said a senior MC official familiar with the discussions.
The Pan-City 24x7 Water Supply Project is designed to cover all 35 wards of Chandigarh and aims to replace the current intermittent water supply system with a continuous, round-the-clock model. Following the implementation of the Manimajra pilot, the MC intends to begin full-scale execution of the project, which includes replacing nearly 270 km of the city's aging water pipeline network not suited for high-pressure supply. The city has been divided into 55 district metering areas (DMAs) for phase-wise rollout, with each DMA comprising approximately one sector. The first DMA is expected to receive 24x7 supply by 2025, while the complete city-wide transformation is targeted by 2029. The earlier deadline was 2024.
However, while the project promises significant infrastructure upgrades, it also brings with it a considerable financial burden for city residents. Of the total estimated cost of ₹510 crore, AFD will provide ₹412 crore as a loan to be repaid over 15 years. Additionally, the European Union is contributing ₹98 crore as a grant. The loan agreement was formalised in December 2022.
Beginning December 2029, the MC will be required to repay approximately ₹40 crore annually to the French government. To meet this financial obligation, the Chandigarh administration will hike water tariffs after the project's completion, with rates expected to be nearly double the current charges.
