India & ADB sign $206M loan to improve urban services, water supply & sanitation in 5 TN cities

New Delhi: The Ministry of Finance said in a Press communication yesterday that Asian Development Bank (ADB) and the Government of India signed a $206 million loan on 2 December to develop water supply and sewerage infrastructure in 5 cities of Tamil Nadu and strengthen capacities of urban local bodies (ULBs) for improved service delivery.

In November, the Government of India and ADB had signed a $451 million loan to strengthen power connectivity between the southern and northern parts of the Chennai-Kanyakumari Industrial Corridor (CKIC), which is part of the East Coast Economic Corridor (ECEC) in Tamil Nadu.

This is the second project loan for the ADB-supported $500 million multi-tranche financing for Tamil Nadu Urban Flagship Investment Program, approved in September 2018, that will overall develop climate-resilient water supply, sewerage, and drainage infrastructure in 10 cities of Tamil Nadu. The first project under the Program with $169 million financing is currently under implementation.

The signatories to the loan agreement were Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs in India’s Ministry of Finance, and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.

“The project is aimed at improving the lives of the urban people in the identified cities of Tamil Nadu by providing universal access to water supply and sanitation, and improving sewage treatment and drainage systems. Project initiatives are also expected to help the state develop the requisite ecosytem for economic growth,” said Khare after signing the loan agreement.

“The project interventions will benefit residents, workers and industries in the state’s economic corridors thereby building industrial competitiveness and creating good jobs. It also supports urban reform agenda such as better service delivery through private operators and with quality benchmarking,” said Yokoyama.

The project will target four cities – Ambur, Tiruchirappalli, Tiruppur, and Vellore – for developing sewage collection and treatment and drainage systems by setting up or rehabilitating sewage treatment plants, pumping stations, and connecting all households in the project area to the sewerage network, including below poverty line households. Wastewater reuse for industry will also be achieved in at least 4 cities.

Improvement to water supply systems will be targeted in the cities of Madurai and Tiruppur through commissioning of over 1,260 km of new distribution lines to connect nearly 190,000 households with metred water supply, including below poverty line households.

In addition, nearly 200 km of new transmission mains and 230 km of feeder mains will be constructed along with two new water treatment plants.

The project will also strengthen capacity of the Commissionerate of Municipal Administration in Tamil Nadu for new project development, and monitoring and benchmarking quality of services across the 135 urban local bodies in the state.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty, said the communication, adding that in 2018, ADB made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, ADB is owned by 68 members – 49 from the region.

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The ID Staff

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