April 15, 2004

CM, Delhi misleading Citizens on the DJB Privatisation

Chief Minister of Delhi is misleading citizens of Delhi on Water Privatisation in the State (the steps taken by the Delhi government towards water privatisation in last six years is enclosed).

Her Government has handed over more than 20% of operation and maintenance to Private Companies on public cost in last 5 years (list of work under private hands is enclose for reference).

France based multinational Suez (Ondeo Degremont) has been awarded all major Operation & Maintenance works at public cost and without any investment by the MNC.

As a policy framed recently by Delhi Jal Board (DJB) on PSP (Private Sector Participation), all new projects will be handed over to the private companies for operation and maintenance.

The water privatisation agenda of Government of Delhi and DJB was finally formalized in the 32nd Board meeting of the DJB on 6th June 2000 under the Chairmanship of the Chief Minister.

Delhi Government hired Price Water House Coopers (a World Bank Consultant) and paid 2.5 million dollars; its Report advocates water Privatisation in Delhi. (Copy of time table from report is enclosed)

The first step on the implementation of water Setting up of Regulator on Water.
Establishing independent Regulator on Water is the live evidence of Privatisation of Water in Delhi.

The constant challenging version of the Chief Minister and dual policy adopted by the government of Delhi on water privatisation is meant to confuse the public on the occasion of parliamentary election.

Citizens of Delhi have lost faith on Government on this issue; Government must make all documents public relating to the issue. Delhi Citizens be ready to be betrayed after the general election when Water prices will be increased by 40 times for corporate profits at public cost.

The Chief Minster of Delhi on 10th April 2004 denied that her government has taken any steps towards privatising Delhi’s water and stated that the World Bank consultant report has nothing on water privatisation.

CM’s denial on Delhi’s Water Privatisation is misleading and deceitful. The Citizen Front against Water Privatisation in Delhi condemns this false statement by the Constitutional Authority and considers this as breach of trust and right to information.

The final draft report of Price Water House Coopers (World Bank Consultant) was submitted in January 2003 and final report arrived in January / February 2004. The report is not only a document of Privatising and commodifing Delhi’s waters but also suggest a timetable to implement water privatisation. (The copy of the relevant pages from consultant report is enclosed). Though the CM denies having taken any steps to privatize Delhi’s Water yet they have been strictly following the timetable and guidelines dictated by the World Bank Consultant.

(i). Following privatisation agenda and time-table as framed by the WB Consultant, the Delhi Government announced Water Sector Vision on 31st January 2004, exactly one year after the target date as specified by the Consultant.

(ii). The target date for increase in water tariff was February 2004 and the Delhi Jal Board sent its proposal well in time to the Delhi Government, but citizens’ resistance and the Parliamentary Election saved the people of Delhi from increased tariff. But this tariff relief is temporary; the Citizens of Delhi be ready to be betrayed after the general election when water prices will be increased by many fold.

(iii). As per Consultant’s framed time table, the Delhi Government was to enact Water and Waste Water Reforms Act (Independent Regulator) by 28th February 2004 and Delhi Cabinet took a decision on the proposed Act on 25th February 2004. This is another major step towards water privatisation.

(iv). As per Consultant’s framed time table, the Delhi Jal Board will be privatised by December 2006. The Government has taken all such step to abide by the guidelines and timetable of the World Bank consultants. The Government’s attitude of yielding to the World Bank and Multinational agenda to privatize water is a reflection that our elected Government has become a puppet in the hands of World Bank and Multi Nationals for corporate profits.

(v) The clandestine contract between Government of Delhi and the French multinational Suez (Ondeo Degremont) for the Sonia Vihar Plant is another major steps towards water privatisation. This is being done without any investment by Suez. The same company got all the many projects for operation and maintenance (List enclosed).

It is very unfair for the Chief Minister to mislead the citizens of Delhi. The Citizens Front Against Water Privatisation in Delhi demands that the Delhi Government be transparent on its policies to supply water to the public whether through public or private operation. The Government should also put in public all the documents related to water privatisation and proof that the Government is not privatizing water in Delhi and not unduly benefiting the private water corporates.

For any further information please contact:

Dr. M. K. Mohanty - Tel: 011 - 2752 3069
Mr. SA Naqvi - Tel: 011 - 3104 6854
Mr. Sanjay Sharma - Tel: 011 - 3102 0158
Mr. Afsar H. Jafri - Tel: (0) 98107 - 26325

Citizen’s Front against Water Privatisation
A - 60, Hauz Khas, New Delhi - 110016
Tel: 011 - 2656 1868, 2685 3772
Email: citizens4water@yahoo.com