Project Name Tamil Nadu Urban Flagship Investment Program - Tranche 1
Project Number 49107-004
Country / Economy India
Project Status Active
Project Type / Modality of Assistance Grant
Technical Assistance
Source of Funding / Amount
Grant 0613-IND: Solar Powered Sewage Treatment Plan in Coimbatore, India
Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 2.00 million
Loan 3718-IND: Tamil Nadu Urban Flagship Investment Program - Tranche 1
Ordinary capital resources US$ 169.00 million
TA 9599-IND: Strengthening Institutional Capacity for Project Development and Urban Governance in Tamil Nadu
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban water supply

Gender Effective gender mainstreaming
Description The program will develop priority water supply, sewage and drainage infrastructure in at least 10 cities located within strategic industrial corridors of Tamil Nadu. It will support innovative pilots, including India's first solar-powered sewage treatment plant (STP) to offset greenhouse gas emissions and enhance operational efficiency; strengthen urban governance; and build capacity of state and local institutions to enhance services delivery, environmental sustainability, and climate resilience.
Project Rationale and Linkage to Country/Regional Strategy Tamil Nadu ranks first in urbanization amongst large states in India (48.5% of its population lives in cities, which is projected to increase to 67% in 2030) and is the second largest contributor to the country's gross domestic product. Despite being a leader in many areas of manufacturing and information technology enabled services, managing rapid urbanization will be vital to sustaining its economic growth, alleviating poverty, and maintaining urban livability. Key challenges include: (i) acute infrastructure deficits with increasing demands from rapid urbanization; (ii) expanding slum populations; (iii) pollution of waterways; (iv) weak institutional capacity to plan and implement projects; and (v) mixed performance in key governance indicators, including local revenue generation, financial management, and municipal administration. Water related disasters such as recurring droughts (once in every 2.5 years) and catastrophic urban floods linked to climate change are aggravated by high water losses in older distribution networks and inadequate drainage systems not adapted to heavier monsoon rains. Addressing these complex challenges requires significant investments and deeper institutional support.

(i)Universal access to basic water and sanitation services achieved (Vision Tamil Nadu 2023) (ii) 'World-class cities and industrial corridors across the state developed (Vision Tamil Nadu 2023); and (iii)Water security, reduced vulnerability to climate change in urban areas, and enhanced share of renewable energy achieved (Tamil Nadu Sustainable Water Security Mission, State Action Plan on Climate Change)

Project Outcome
Description of Outcome

Livability and climate resilience in six cities in priority industrial corridors enhanced

Progress Toward Outcome Works are ongoing.
Implementation Progress
Description of Project Outputs

Climate-resilient sewage collection and treatment, and drainage systems developed in six cities.

Water supply systems in one city improved with smart features.

Institutional capacity, public awareness, and urban governance strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Sewage Collection and Treatment: All contracts have been awarded in the project cities (Tirunelvelli, Tiruchurapalli, Vellore, Chennai, Coimbatore and Rajpalayam) and works are ongoing.One contract of Tirunelvelli underground sewerage works (UGSS) - Phase 3 has been terminated due to poor performance and the balance work is to be rebidded.

2. Water Supply: Contract with smart features awarded and ongoing in Chennai.

3. Construction Management and Supervision Consultants, Project Design Consultants and Governance Improvement and Awareness Consultant have been mobilized to support the executing agencies for execution of the output.

Geographical Location Ambur, Chennai, Coimbatore, Cuddalore, Rajapalayam, Thoothukkudi, Tiruchchirappalli, Tirunelveli, Tiruppur, Vellore
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Initial environmental examinations were prepared by the implementing agencies for all subprojects, which showed no significant environmental impacts. The anticipated impacts are temporary and will be avoided or minimized through proven mitigation measures and engineering-construction practices, as outlined in the environmental management plans.
Involuntary Resettlement The implementing agencies prepared resettlement plans for all subprojects to assess and adequately address (i) potential temporaryloss of income for street vendors on proposed pipe alignments; and (ii) permanent impacts in the Vellore sewerage subproject. No private land acquisition is required.
Indigenous Peoples There are no indigenous people communities present at or around subproject sites.
Stakeholder Communication, Participation, and Consultation
During Project Design An initial baseline survey was conducted under the project preparatory technical assistance (PPTA). A community awareness and participation plan (CAPP) has been prepared.
During Project Implementation The initial baseline survey has been expanded on and updated by the governance improvement and awareness consultant and will target the collection of information on the socioeconomic profile of the program beneficiaries. The survey will cover all elements of society including the vulnerable, marginalized and poor.
Business Opportunities
Consulting Services

All consultants will be recruited according to ADB s Guidelines on the Use of Consultants (2013, as amended from time to time). There will be one Construction Management and Supervision Consultant (CMSC) for each implementing agency (except for municipalities to be assisted by TWAD) to assist it in all aspects of the TNUFIP. One agency will be recruited to support CMA for capacity building and urban reforms, participation and awareness consultant will support implementation of incentivized reform, capacity building and participation activities.

Each CMSC will require an estimated 2878 person-months national experts and will be responsible for the contract management and construction supervision, data collection and assessment, assisting ULBs to evaluate bids, supervising construction, monitoring and reporting to PMU on progress and compliances, assisting in the disbursement of funds and ensuring safeguard compliance in line with ADB requirements.

A governance improvement and awareness consultant (GIAC) will be recruited to assist the CMA (which is the implementing agency for governance and capacity building component and has administrative control over the ULBs) to support in implementing community participation, gender and social inclusion action plan, public awareness campaigns and incentivized governance improvement component

The consultants will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality: cost ratio of 90:10. Individual consultants will be recruited using a bio-data technical proposal

Procurement Procurement of civil works and goods including consulting services will follow ADB s Procurement Guidelines (2015, as amended from time to time). The procurement of consultants will follow ADB s Guidelines on the use of Consultants (2013, as amended from time to time). A procurement capacity assessment concluded the overall procurement risk for the project is moderate. The TNUIFSL has extensive experience in development partner-supported procurement of large works and will provide advisory support to ULBs and the CMA.
Responsible ADB Officer Majumder, Sourav
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission (INRM)
Executing Agencies
Ministry of Finance (Aid Accounts & Audit Division)
Municipal Administration and Water Supply Dep't
Tamil Nadu Urban Infrastructure Financial Services Ltd.
Concept Clearance -
Fact Finding -
MRM 29 May 2018
Approval 28 Sep 2018
Last Review Mission -
Last PDS Update 14 Dec 2022

Grant 0613-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2018 16 Nov 2018 12 Feb 2019 31 Dec 2021 31 Dec 2022 17 Apr 2023
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.00 Cumulative Contract Awards
ADB 0.00 17 Nov 2023 0.00 1.42 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 2.00 17 Nov 2023 0.00 1.42 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3718-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2018 16 Nov 2018 12 Feb 2019 31 Dec 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 475.50 Cumulative Contract Awards
ADB 169.00 17 Nov 2023 153.32 0.00 91%
Counterpart 306.50 Cumulative Disbursements
Cofinancing 0.00 17 Nov 2023 77.94 0.00 46%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

TA 9599-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Sep 2018 30 Nov 2018 30 Nov 2018 31 Dec 2020 15 Sep 2023 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 17 Nov 2023 593,984.10
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
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