WASHINGTON, June 23, 2025 -The World Bank's Board of Executive Directors today approved a new program to improve water security for more than four million residents in India's tech capital, Bengaluru, in the southern state of Karnataka.
Bengaluru is one of the fastest growing cities in India, and better management of water resources and increased resilience to extreme weather events will help respond to the demands of its growing population and expanding economy. Karnataka has been witnessing frequent floods and droughts with estimated average losses of over $1.2 billion for every affected year since 2009. The impact of these events is being felt in economic hubs like Bengaluru, and its surrounding areas, where infrastructure and houses are affected.
The $426 million Karnataka Water Security and Resilience Program will help revive the city's 183 lakes which act as natural sponges during heavy rainfall. The Program will also construct nine sewage water treatment plants (STPs) to prevent the sewage from entering lakes and drains. The treated wastewater will be reused for industrial purposes, as well as for recharging groundwater in the greater Bengaluru area. In addition, over 100,000 households will get sewerage connections for the first time.
"The program will increase revenues of the Bangalore Water Supply and Sewerage Board and mobilize $5 million in private capital. This will improve efficiency, restore aging water pipes, and tap the private sector to create innovative tools like smart water meters," said Auguste Tano Kouame, the World Bank's Country Director for India.
The Program will also help Bengaluru cope with increased extreme weather events - which are posing a challenge to the pace of economic growth. The Program will develop and implement advanced flood modeling, that utilizes computer simulations to predict where, when, and how flooding might occur. This will help optimize future investments in the city's resilience.
"This Program will also help communities through early warning systems and response to extreme weather by strengthening the Karnataka State Natural Disaster Monitoring Centre," said Kristoffer Welsien and Anup Karanth, the Task Team Leaders for the Program.
The $426 million loan from the International Bank of Reconstruction and Development (IBRD) has a maturity of 20 years with a grace period of 5 years.
