Karnataka Urban Water Supply Modernization Project (KUWSMP)

Project Objective

The World Bank assisted “Karnataka Urban Water Supply Modernization Project” (KUWSMP)

To provide city-wide access to continuous piped water supply in the cities of (i) Hubballi-Dharwad (ii) Belagavi and (iii) Kalaburagi in the state of Karnataka and to strengthen service delivery arrangements at the city level.

Project Scope

Each project city will enter into a twelve-year contract with a private operator. The performance-based contract comprises a one-year period for planning (start-up period),a three-year investment period to transition to continuous supply and to build a well-run utility convert intermittent supply and an eight-year period of ongoing service delivery with continuous supply (sustaining period). The ULB operates the system during the start-up period and private operator takes over operations from the beginning of the transition period.

Project Components

SL No. Components INR(in Crores)
1 Capital Investment Program 1679.00
2 Technical Assistance for Sector Development 30.00
3 Project Management 100.00

Project Funding Arrangement

Sl No. Funding Agency US $ Million Rs. in crores %
1 World Bank 187 1209 67
2 State Share 20 130 7
3 ULB Share 72 470 26
4 TOTAL 279 1809 100

Project Implementation

KUIDFC, which manages a range of urban infrastructure development projects for the GoK, will manage project implementation on behalf of the project cities. It has established a PMU which will be responsible for the day-to-day project management, progress monitoring and reporting, procurement activities, and financial management.

KUIDFC has established PIU in each project city, which will oversee the day-to-day activities of the Project at the city level and will report to the PMU and to the ULB.

An Empowered Committee has been established to take decisions for implementing the projects



It is proposed to implement reforms based on “Urban Drinking Water and Sanitation Policy” of Government of Karnataka.

Frequently Asked Questions

Yes. 24x7 water supply has been provided in the 5 demonstration zones, 1 each at Hubli, Dharwad, Belgaum (North), Belgaum (South) and Gulbarga under “Karnataka Urban Water Sector Improvement Project” (KUWASIP). It is also successfully implemented in Ilakal Town, Bagalkot District with 60,000 population.
Yes. Continuous water supply is achieved by provision/rehabilitation of Raw Water / Clear Water Transmission Mains, Pumping Stations, Water Treatment Plants, Ground level and Elevated Services Reservoirs, distribution networks, SCADA, House Service connections etc. This has been successfully implemented in the selected 5 demonstration zones and Ilkal town, Bagalkot District
Worldwide, it is recognized that the best way of distributing safe water is to keep the distribution network under constant pressure, and thus distribute water on a continuous basis. Under intermittent supply conditions, contamination can occur every time distribution pipes are empty, according to Central Public Health Engineering & Environment Organization (CPHEEO) and hence it is advisable to have continuous water supply.
Continuous water distribution is the most cost effective way of distributing water, both for the ULB and the customers. If the ULB has to pump the same quantity of water in 4 hours rather than in 24, it would require larger pipes. It also requires higher pumping and storage capacities. This results in higher pumping & electricity costs. If continuous water supply is not available, customers have to build their own storage i.e., tanks, sumps or other storages. Some customers will go in for alternative supplies like bore wells. It is advantageous for them to have water all the time from taps than to store. They will not have the trouble of collecting water at odd hours and waiting indefinitely for unpredictable water supply.
Yes. Sufficient water is available, only the storage, pumping and treatment facility capacity has to be increase & this would lead to continuous water supply.

Private sector involvement is basically for the expertise the private agency brings into the system in terms of best practices adopted internationally & suited for our conditions. But overall control of the project & the assets will still lie with the corporation.

In recent years, large sums of money have been spent in urban areas of the state to develop Water Supply infrastructure, but this has failed to translate into improved Water Supply service provided to customers. Therefore, an innovation of asking the person executing the project to also maintain these assets for a certain period was attempted in the demonstration zones and was successful. As against carrying out of only the civil works, the contractor also has to maintain the system for particular period thereby ensuring better service to the public.

Yes. The private Operator will be responsible under contract obligations, for delivering water under continuous supply conditions to all connected properties. The Operator will also have to comply with the performance targets set in their contract for minimum pressure at premises as well as continuity of supply. The Operator will be paid a bonus if they exceed minimum contractual performance or charged a penalty in case they do not. Reduction of losses in distribution system will make additional water available. Most importantly, since, the private agency brings in International expertise in supply of continuous water it is bound to result in significant improvement in service.
Yes. There will be an arrangement to improve customer interface and grievance redressal mechanism. Measures will be put in place to ensure that customer grievances are handled timely and effectively. Customer Service Centres will be set up in various zones which has to look into customer grievances in time bound manner & 24x7 call centres will be set up to attend to customer complaints. In the demo zones, the Operator is obliged to attend to the complaints in a time bound manner
Results in the demonstration zones show that usage of water will not go up on the introduction of continuous water supply. In fact, the usage of water in the demonstration zones is on an average 90-110 lpcd as against the prescribed standard of 135 lpcd. Metered, continuous water supply brings in a sense of conservation rather than of wastage in users.
Concessions will be provided to urban poor (defined as those residing in houses measuring up to 600 square feet, built-up area regardless of whether they live in or outside the slums in the matter of water supply).
It is proposed that public stand posts will be replaced by individual house connections. Individual connections will be provided to even poor and vulnerable sections
At present those households, who do not have individual connection (specially the poor), get lesser quantity of water. Large amount of time is wasted in collection of water. They also end up buying low quality water at high cost from private sources. The cost of collection of water is high. These problems will be overcome in 24x7 water supply . The poor households will be charged volumetrically i.e. based on what they use and the time saved can be utilized for productive purposes.
Yes. All connections will be metered. Billing will be as per meter readings.
An opportunity will be given to citizens to get illegal connections regularized. The Corporation will legitimize such connections on receiving applications, by collecting applicable fee.
The tariff will be on volumetric basis and water charges will depend on the quantity of water used by consumer. The tariff has been designed keeping in view affordability of different categories of customers
Topographic survey & condition assessment studies are being carried out and design & blue print for bulk water supply & distribution will be done.
It is proposed to implement the project in 2 phases. Phase I has been planned for the projected population of 2026 and Phase 2 is for the projected population of 2041.
Project preparation activities are in progress for implementation of Phase-I. As a part of the preparatory activities, two studies (a) Sectoral Environmental and Social Assessment (SESA) and (b) Communications & Stakeholder Intermediation Strategy (CSIS) are taken up. The Operator is, in place in Hubballi-Dharwad, conducting topographic survey, customer survey & condition assessment.SIP submitted under review
Up scaling of the continuous water supply is NOT for a short period. It has been planned keeping in mind the projected population of 2041.
  • There would be increase in the quantity of water available for distribution to the public.
  • No time is wasted waiting for water. The time can be spent on other productive activities
  • Also, due to improved water quality, there will be improvements in the health of citizens as the incidence of water borne and water related diseases will come down
  • The customers need not store water and pump it to their storage tanks. Hence, there will not be any storage, pumping and maintenance costs, ultimately resulting in savings in storage construction and electricity charges for the customers

Pre- Bid Draft