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cancellation of Pune water supply project


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Prepared by Marie-Helene Zérah, Lyonnaise des Eaux, seconded to Water and sanitation Programme South Asia,with assistance from Kathleen Graham-Harrison, Editorial Consultant, and Marie Llorente, PhD Student, University of Paris X Centre
de Sciences Humaines, New Delhi.

december 2000


In 1998, the Pune Municipal Corporation attempted to implement an urban environmental infrastructure project, valued at approximately Rs 7.4 billion (US$185 million),
through construction and management contracts with a private
sector firm. The project was an integral part of a 25-year strategic plan which aimed to gradually extend, to the total population, a 24-hour water supply and sewerage service. This groundbreaking partnership was also designed to ensure that Pune remained an attractive economic destination for investors. Had it succeeded,It would have provided a model for other cities in India seeking to improve services through private sector.The project was canceled for a number of reasons, but the most critical was a loss of political support.

This case study seeks to analyze the challenges faced in the
preparation of the project, many of which are illustrative
of the obstacles to water sector reform, including increased
private sector participation, in South Asia.