Kochi: The Kerala Water Authority (KWA) is poised to transition the management of Kochi’s water distribution system to a foreign private entity, following a recent decision by the State-Level Empowered Committee (SLEC). This move, recommended in a meeting chaired by the Chief Secretary, is motivated by the urgency of securing an Asian Development Bank (ADB) loan of approximately ₹900 crore before its approval expires on November 22, 2024.
The SLEC’s recommendation stipulates that the current foreign bidder, who has offered a price 23% above the original estimate, be awarded the contract. The performance-based contract, set for a decade, is deemed critical given the looming deadline. The ADB’s stipulation against re-bidding due to potential inefficacies has influenced this recommendation, despite concerns over cost overruns.
The decision has sparked significant opposition. Critics, including pro-Left unions and local residents’ associations, argue that the cost escalation is excessive and could undermine the affordability and accessibility of water services. The Joint Forum of KWA Employees’ Unions has expressed dismay, highlighting that the proposed bid exceeds the permissible cost limits by a substantial margin. They have mobilised for protests, although government assurances of further discussions have tempered immediate unrest.
Water Resources Minister, however, has refuted claims of privatisation, asserting that the KWA will retain control over water distribution. Nonetheless, there are allegations of a lack of transparency regarding the project’s details, with local MLA’s and district residents’ groups accusing the government of withholding critical information. This development reflects a broader trend towards private sector involvement in public utilities, raising questions about the balance between cost-efficiency and public accountability. As Kochi approaches a pivotal moment in its water management strategy, the implications of this foreign partnership could have lasting impacts on both financial and service dimensions of water distribution in the city.
