Project Name
Kolkata Environmental Improvement Investment Program (Facility Concept)
Project Number
Country / Economy
  • India
Project Status
Project Type / Modality of Assistance
  • Loan
  • Technical Assistance
Source of Funding / Amount
MFF Facility Concept 0075-IND: MFF- Kolkata Environmental Improvement Investment Program (Facility Concept)
Source Amount
Ordinary capital resources US$ 400.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Private sector development
Sector / Subsector
  • Water and other urban infrastructure and services /

Effective gender mainstreaming

Kolkata is the capital of the Indian state of West Bengal, and one of the densest megacities in the world, with 24,000 people per square kilometer. Kolkata faces multiple challenges. In 2017, Kolkata had an estimated 5.2 million people; while the total population of the city and its suburbs was 14.7 million, making it the third-most populous metropolitan area in India. KMC is mandated to provide urban servicesincluding water supply and S&Dto its citizens, but services are not uniform across the city. In 2007, Kolkata was identified as a hotspot for climate change and among the top 10 cities with high exposure to flooding under climate change forecasts by the Organization for Economic Cooperation and Development. In 2011, a detailed study by the World Bank assessed Kolkata's vulnerability to climate change and recommended investments in S&D systems. In 2011, KMC prepared an investment plan to improve the urban sector, which estimated the needed physical investment at $4 billion. KMC designed KEIIP to increase its climate resilience and urban services by adopting the recommendations from the 2011 World Bank study and following the investment plan and KMC's relevant master plans and policies. The program's associated policy framework aims to create an enabling environment for improved services. Adoption of a water loss roadmap in 2016, property tax reforms in 2017, and increases in urban services through Projects 1 and 2 of KEIIP (approved in 2012 and 2016, respectively) are helping KMC address some of the challenges identified by the policy framework. Project 3, approved in August 2018 continues expanding S&D coverage, provide treatment for sewage collected under KEIIP, and strengthen KMC's capacity for resilient urban services.

Project Rationale and Linkage to Country/Regional Strategy
Water supply and sewerage services in Kolkata have excelled the national average, particularly in terms of quality, continuity, and coverage. The city also has a good, low-cost sewage treatment system. However, service provision is not uniform across the city and is increasingly strained by economic expansion. As shown in Table 1, service is better in the city center than in the periphery. This is both a problem and an opportunity. The problem is that the number of vulnerable households has grown rapidly in the periphery as the population has declined in the center, which is subserviced. The opportunity arises from the KMC's ability to generate revenues from a still-large population with higher income in the center, with which to fund investment in the periphery. The city has worked hard to narrow service disparities. Efforts started with two loans provided in 2000 and 2006 for the Kolkata Environmental Improvement Project (KEIP), which financed the renovation of 564 kilometers (km) of the sewerdrain network and the rehabilitation of three sewage treatment plants, raising the percentage of the population with direct sewer connection from 31% in 2001 to 43% in 2011. The service coverage for water supply is higher than for sewerage, but disparities between central and peripheral areas remain, particularly in service continuity. Unless addressed rapidly, these disparities will widen as population shifts from the center to the periphery.

Improved access to water supply and sanitation in KMC

Project Outcome

Description of Outcome

Improved water supply, sewerage, and drainage service quality and operational sustainability in selected areas of KMC

Progress Toward Outcome
Project 1 is closed, and spillover works of water loss management (WLM) contract (WS-01) shifted to Project 2 is likely to be commissioned by December 2022.

Implementation Progress

Description of Project Outputs

Inefficient water supply assets rehabilitated.

Sewerage extension to peripheral areas continued.

Financial and project management capacity further developed.

Status of Implementation Progress (Outputs, Activities, and Issues)
(i) Stabilization of nonrevenue water reduction in the pilot areas under progress; (ii) Works completed in all 19 district metering areas (DMAs) except meter installation in 2 DMAs; (iii) 129 kms of water supply pipes laid; (iv) Water production capacity restored to 1,478 mld. The household water meters are being installed in the identified DMAs of the pilot area. 16,852 household water meters installed so far. (v) House connections are being progressively provided with the laying of sewerage network. 17,500 house connections provided so far.
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
Consultations have been held throughout the planning and design stage with Mayor, PMU, KMC officials, and state government departments like Pollution Control Board (PCB). Walk through informal discussions have been held with the local community along the proposed transmission stretch to assess the kind of impacts.
During Project Implementation
The design and technique adopted by KMC has helped address and mitigate potential social issues associated with works. However, information disclosure is an integral part of safeguards planning during project implementation. Consultations and information disclosure will be carried out at different stages of the project cycle. Consultation measures envisaged for the project are: (i) KMC will inform through its officials and contractor about the construction schedule to minimize the temporary impacts; (ii) PMU will ensure that the affected people's if any will be identified and informed about the assistance to be provided for any temporary loss of livelihood; and (iii) attempts will be made to ensure that vulnerable groups, if any, will understand the process and that their specific needs will be taken in to consideration.

Business Opportunities

Consulting Services
All consultants will be recruited accroding to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). The procurement plan indicates the threshold, mode of procurement, and consultant selection, review procedures, and contract packages.
All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). The concurred standard bididng documents for the national competitive bidding will be used throughout the Facility period.


Responsible ADB Officer
Majumder, Sourav
Responsible ADB Department
South Asia Department
Responsible ADB Division
India Resident Mission (INRM)


Concept Clearance
Fact Finding
24 May 2012 to 31 May 2012
14 Aug 2012
26 Sep 2013
Last Review Mission
Last PDS Update
14 Dec 2022


MFF Facility Concept 0075-IND

Financing Plan
  Total (Amount in US$ million)
Project Cost 570.00
ADB 400.00
Counterpart 170.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards - 0.00 0.00 %
Cumulative Disbursements - 0.00 0.00 %
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