The Loan and Project Agreements for World Bank (IBRD) assistance of US$ 100 million for the Karnataka Urban Water Supply Modernization project were signed between Government of India/Government of Karnataka and the World Bank.

The objective of the project is to provide city-wide access to a continuous piped water supply in the eligible cities in the State of Karnataka and to strengthen the service delivery arrangements at the city level. KUIDFC is the implementing agency for the project. The project would have four broad components: (i) Capital Investment Program; (ii) Institution Building; (iii) Technical Assistance for Sector Development; and (iv) Project Management. The project will be implemented over a period of six years, initially in the twin cities of Hubballi-Dharwad, with provision for other eligible cities to join the project at a later date.

The project will help the Hubballi-Dharwad Municipal Corporation set up a city-level water utility that will take over water supply operations from the professional operating company at the end of its contract period. The project will benefit about one million residents of the Hubballi- Dharwad, including estimated 160,000 slum dwellers.