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WB, AIIB Approved Loan for 300 Million USD Canal-based Drinking Water Projects in Punjab

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WB, AIIB approve loan for USD 300-mnThe World Bank(WB) and Asian Infrastructure Investment Bank (AIIB) have approved the loan for the 300 Million USD (around Rs.2190 crore) canal-based drinking water project in Punjab.

The entire project will be co-financed by International Bank for Reconstruction and Development (IBRD) of World Bank (USD 105 million), AIIB (USD 105 million) and the Government of Punjab (USD 90 million).

The $105 million loan from the International Bank for Reconstruction and Development (IBRD), has a final maturity of 12.5 years including a grace period of three years.

Aim of the Projects:

  • To ensure the quality of drinking water.
  • To minimise the water losses for Amritsar and Ludhiana.

Drinking-Water Projects in Punjab:

The canal-based drinking water projects in Punjab is Amritsar Project and Ludhiana Project.

Amritsar Project:

i.Source of the surface water supply: Upper Bari Doab Canal. 

ii.Under this project, The water treatment plant with a capacity of 440 million litres per day (MLD) will be constructed in the village of Vallah in Amritsar.

iii.After the treatment the clear water will be pumped to the Over Head Service Reservoirs (OHSR) which will enable a continuous water supply to the residents of the city.

iv.The infrastructure of the project is designed to fulfil the water demands for 30 years.


This project will benefit the residents of Amritsar with an estimated population of 14.51 lakh in 2025 and 22.11 lakh in 2055.

Ludhiana Project:

i.Source of the water supply: Sirhind Canal. 

ii.Under this project 580 MLD water treatment plant will be constructed for treating the surface water and the treated water will be pumped to the OHSR to meet the water supply needs of the residents.


This project will benefit the residents of Ludhiana with an estimated population of 20.76 lakh in 2025 and 29.35 lakh in 2055.

Recent Related News:

On September 7, 2020, The State Government of Himachal Pradesh (HP) and World Bank signed an $82 million (approximately Rs. 600 Crores) loan deal to strengthen its transport and road safety institutions by improving the condition, safety, resilience, and engineering standards of the state’s road network.

About World Bank(WB):

President– David Malpass
Headquarters– Washington DC, United States
Founded– 1944
Members– 189 countries (including India)

About Asian Infrastructure Investment Bank (AIIB):

President– Jin Liqun
Headquarters– Beijing, China