Representative Image: Photo Credit: World Bank
Nine STPs, 183 lakes & more: World Bank approves Rs 3,700 cr loan for Bengaluru
The World Bank’s Board of Executive Directors recently approved a new programme to improve water security for more than four million residents in India’s tech capital, Bengaluru. From reviving 183 lakes, which acts as natural sponges during heavy rainfall to constructing nine sewage treatment plants to prevent the sewage from entering lakes and drains, the Rs 3,700 crore loan covers a slew of projects.
The grant — known as Karnataka Water Security and Resilience Programme — will also help over 100,000 households will get sewerage connections for the first time.
“The program will increase revenues of the Bangalore Water Supply and Sewerage Board and mobilize $5 million in private capital. This will improve efficiency, restore aging water pipes, and tap the private sector to create innovative tools like smart water meters,” said Auguste Tano Kouame, the World Bank’s Country Director for India.
The grant will help Bengaluru cope with increased extreme weather events, be it floods or water shortages in the summer – which are posing a challenge to the pace of economic growth. The programme will develop and implement advanced flood modeling, that utilizes computer simulations to predict where, when, and how flooding might occur. This will help optimize future investments in the city’s resilience.
“This will also help communities through early warning systems and response to extreme weather by strengthening the Karnataka State Natural Disaster Monitoring Centre,” said Kristoffer Welsien and Anup Karanth, the Task Team Leaders for the Program.
The $426 million loan from the International Bank of Reconstruction and Development (IBRD) has a maturity of 20 years with a grace period of 5 years.
Primary Uses of the $426 Million Loan:
- Lake Restoration & Flood Control
- Revive 183 lakes, which act as natural sponges during heavy rains to reduce flooding.
- Integrate stormwater drains (rajakaluves) with lakes to support groundwater recharge and flood buffering.
- Wastewater & Sanitation Infrastructure
- Build 9 sewage treatment plants (STPs) to stop raw sewage from polluting lakes and drains.
- Extend sewerage connections to over 100,000 households for the first time.
- Water Supply & Utility Efficiency
- Repair aging water pipelines, install smart water meters, and improve operational efficiency at the Bangalore Water Supply & Sewerage Board (BWSSB).
- Mobilize $5 million in private capital to support revenue enhancement.
- Flood Resilience & Disaster Preparedness
- Develop advanced flood modelling systems to predict and respond to floods.
- Enhance early warning systems via the Karnataka State Natural Disaster Monitoring Centre.
- Institutional Reforms & Financial Sustainability
- Strengthen planning, coordination, and financing capacity of both BBMP and BWSSB.
- Push BWSSB towards financial viability and creditworthiness—may involve tariff reforms.
Financial Structure:
- Total cost: USD 677 million
- World Bank (IBRD): USD 426 million (20-year loan with 5‑year grace period)
- Government of Karnataka: USD 246 million
Both the Bengaluru Water Supply and Sewerage Board (BWSSB) and the Bruhat Bengaluru Mahanagara Palike (BBMP) will share the grants.
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