NDB and Government of India sign Facility Framework Agreement and Loan Agreement for Rajasthan Water Sector Restructuring Project for Desert Areas

On 13 February 2018, the New Development Bank (NDB), the Government of India and the Government of Rajasthan signed the Facility Framework Agreement for financing of Rajasthan Water Sector Restructuring Project for the Desert Areas, under which the Bank has agreed to provide multi-tranche financing facility for an amount aggregating to USD 345 mln. Loan Agreement and Project Agreement for the first tranche loan of USD 100 mln approved by the NDB under the multi-tranche financing facility were also signed.

The objective of the project is to rehabilitate the 678 km long Indira Gandhi Canal system built during 1958-63 to prevent seepage, conserve water, and enhance water-use efficiency as mandated by both national and state-level policies on water use. The execution of the project would generate multiple benefits such as:

• Arresting the seepage by rehabilitating the deteriorating canal lining of the Indira Gandhi Nahar Project which needs urgent attention;
• Rehabilitation of waterlogged areas;
• Modernization and optimization of the irrigation management practices in the project area by involvement of the water users’ associations in the command area;
• Strengthening of drinking water supply and irrigation facilities in the project area.

The Facility Framework Agreement was signed by Mr. Govind Mohan, Joint Secretary, Department of Economic Affairs on behalf of the Government of India, Mr. Shaohua Wu, Director General, Project Financing on behalf of the NDB and Mr. Shikhar Agarwal, Principal Secretary, Water Resources Department on behalf of the Government of Rajasthan.

The Loan Agreement was signed by Mr. Govind Mohan, Joint Secretary, Department of Economic Affairs on behalf of the Government of India and Mr. Shaohua Wu, Director General, Project Financing on behalf of the NDB.

The Project Agreement was signed by Mr. Shikhar Agarwal, Principal Secretary, Water Resources Department on behalf of the Government of Rajasthan and Mr. Shaohua Wu, Director General, Project Financing on behalf of the NDB.