fbpx ADB, India Sign $169 Million Loan to Provide Water and Sanitation Services in Tamil Nadu | Asian Development Bank

ADB, India Sign $169 Million Loan to Provide Water and Sanitation Services in Tamil Nadu

News from Country Offices | 16 November 2018

NEW DELHI, INDIA (16 November 2018) — The Asian Development Bank (ADB) and the Government of India today signed a $169 million loan as the first tranche of up to $500 million in multitranche financing to develop climate-resilient water supply, sewerage, and drainage infrastructure in at least 10 cities in the state of Tamil Nadu.

The signatories to the first tranche loan of the Tamil Nadu Urban Flagship Investment Program were Mr. Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed for the Government of India; and ADB Country Director for India Mr. Kenichi Yokoyama, who signed for ADB.

“The state has faced recurring droughts and erratic monsoons in the recent past resulting in severe water scarcity and urban flooding. ADB’s support will help address these complex urban challenges through innovative and climate-resilient investment and deeper institutional support,” said Mr. Khare.

“The ADB program forms part of its support to the state’s Vision Tamil Nadu 2023 to provide universal access to water and sanitation and to develop world-class cities in high-performing industrial corridors,” said Mr. Yokoyama.

Though Tamil Nadu is the most urbanized of India’s large states, urban service levels remain low, with less than half of households served by piped water, only 42% of households are covered by a sewerage network, with 43% of sewage disposed directly into waterways untreated.

The program will develop climate-resilient sewerage collection and treatment and drainage systems in 10 cities, and install the country’s first solar-powered sewage treatment plant. Introduction of smart water management systems will help reduce non-revenue water and strengthen operational efficiency. Around 4 million people will benefit from piped water and sewerage connections and improved drainage. The program will boost institutional capacity, public awareness, and urban governance as part of a comprehensive approach for developing livable cities.

The first tranche loan will target the cities of Chennai, Coimbatore, Rajapalayam, Tiruchirappalli, Tirunelveli, and Vellore. A $2 million grant from the Asian Clean Energy Fund, established by the Government of Japan, will fund the solar energy pilot project. An ADB technical assistance grant of $1 million will accompany the program to support capacity building.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.