Vijayawada: In what could be a big relief to the state govt, the Asian Infrastructure and Investment Bank (AIIB) has agreed to extend the deadline for completion of about 50 drinking water schemes planned for urban areas in the state.
The deadline for completion of the project ended in June and AIIB has expressed its willingness to continue the fund flow following several rounds of discussions held by the state govt.
A majority of the schemes were left incomplete in the middle due to the failure of the state govt to release its share in the last five years.
The state govt took up the drinking water project with support of AIIB during the previous TDP regime between 2014-19. It was proposed to provide additional reservoirs, pipelines from the existing water sources and laying of internal lines to improve the water supplies in about 50 towns and cities.
The project was taken up with about Rs.5,400 crore in which AIIB promised to extend around Rs.3500 crore as loan. While the state govt had to release Rs.1,500 crore, the respective urban local bodies had to take the remaining Rs.300 crore burden.
The previous TDP govt launched about 17 projects of the total planned 50 projects by the time it quit the office in 2019. However, the subsequent govt failed to complete the ongoing 17 projects and launch the works of the remaining 33 projects citing financial constraints.
AIIB released nearly Rs.333 crore of the planned expenditure on the water schemes. Although, the then state govt spared Rs.140 crore as its share, it released just around Rs.60 crore leaving a gap of Rs.80 crore.
The TDP-led NDA govt studied the prospects of the projects soon after coming into power and requested AIIB to continue its fund flow with a promise to release its share on time.
It had also requested AIIB to extend the deadline of the loan facility by another two years to complete the projects. After discussions with the state govt executives and in writing assurance, AIIB has agreed to extend the deadline and also continue the release of financial assistance.
