Negotiations with service organizations fail; ADB loan agreement for drinking water supply in cities accused of corruption

THIRUVANANTHAPURAM: Talks held with various service organisations led by Minister Roshy Augustine on handing over drinking water supply in cities to a private company with the help of Rs 2511 crore ADB loan have failed. Organisations will go ahead with the strike. Marches will happen to the Kochi Corporation on the 22nd and to the Secretariat on the 26th.

The minister and the water authority officials refused to give a clear answer to a question on the terms of the contract signed with French company Soyuz Projects Pvt Ltd for the supply of drinking water in Kochi.

Alleging corruption in handing over the water supply entirely to a private company, the organisations demanded that the tender proceedings be cancelled. However, the government's argument is that the water supply will not be fully privatised and the supply in Kochi will be handed over to a private company only subject to conditions. Water authority officials say the billing and meter reading will not be handed over to the contracting company. Tariffs will also be decided by the Water Authority. Further discussions about the terms of the agreement will be held with the organizations.

What Organizations are saying

• A 10-year contract is equivalent to privatisation
• Not even the chief engineers of the water authority have seen the terms and conditions of the contract and the estimate
• The claim that there is currently 51 per cent water loss is baseless.
• If that was the case, the waterlogged areas in Kochi would have been under water.
• The Rs 100 crore cost to fix the non-existent leak is a waste of money.
• Constructing a new 190 MLD reservoir will cost additional
• About 5,000 public taps will be eliminated