My target audience includes all the stakeholders in Delhi’s water supply problem. My audience also includes policy makers, multilateral development banks, development financial institutes, philanthropists and others who can steer the proposed change in implementation. I am suggesting an innovative financing solution which can effectively address the challenges facing Delhi in providing 24x7 clean drinking water to its citizens. Needless to say, water is an essential requirement for our life, daily activities, commercial activities and almost everything. Its continuous availability can ease the life tremendously.

1. Delhi Water Supply
Innovative Financing Solution
Name – Manpreet Kaur Juneja
Course- World Bank, Financing
for Development

2. Delhi
• Capital city of India
Population – 18 million in 2015
• Most Prosperous among Indian states in per capita income
GDP per capita – 241,000
Growth Rate – 8.2% in 2014-15
• Tax revenue growth has been meager in comparison to
GDP growth and non-tax revenue fell in 2014-15.

3. Delhi Jal Board
• Responsible for water supply and sanitation in
the city.
• Operating cost recovery only 40.3%
Total income: Rs. 1903 crore
Total operating expenditure: Rs. 4719 crore

4. Delhi’s Water Supply Status
• Coverage – 82%
• Duration – 3 hours
• Per capita supply – 144 liters per day
• Non Revenue Water – 63% (Audit Reports)
• Households spends significant money and
time to meet the supply gap.

5. Problems faced by Delhi Jal Board
• Insufficient Finance for Investment
• Lack of financial autonomy
• Lack of capacity
• Political interference to levy user charges to
recover Operations & Maintenance cost

6. Frustration in Citizens
• The economically powerful citizens of an
economically powerful city are frustrated due
to lack of basic water supply efficiency.
• 2015 elections had water supply as a key
political agenda
CITIZENS DESPERATELY WANT CHANGE!

7. Innovative Financing
• An Instrument that provides adequate incentives along
with financing can nudge stakeholders to work.
• Used to help eradicate polio.
• World Bank approved no-interest loan for the purchase
of oral polio vaccine.
• Investment Partnership for Polio will “buy down” loan
if country successfully complete polio eradication
program.

8. Innovative Financing Instrument
for
Delhi Water Supply
IDEA ! All citizens (except Below Poverty Line) can provide an
upfront security fee (which will be a loan) to Delhi
Government with a condition that 24x7 water supply will be
provided within a stipulated time frame
BENEFITS
• Divides risk, one investor might not be willing to take the huge
risk
• Provides finance
• Raises accountability & transparency
• Creates pressure on government to act & provides incentive
for vigilance to citizens

9. Default scenario
• In case of default, the government is required to pay
back the security fee to citizens.
• This is the cheapest and most effective way to raise
finance without interest charges.
• This structure provides ample incentives and
democracy pressure to ensure 24x7 water supply
system is created.
• Default risk is structurally reduced with this
instrument due to mutual incentives to government
and citizens.

10. On Success
• The government can pay back the security fee
after a set time frame through deductions in
monthly bill charge of residents.
• It’s a win-win solution.

11. Thank You