The program will develop priority water supply, sewerage, and drainage infrastructure in at least 10 cities in strategic industrial corridors in Tamil Nadu.
|Project Name||Tamil Nadu Urban Flagship Investment Program- Tranche 2|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sewerage - Urban water supply
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The program will develop priority water supply, sewerage, and drainage infrastructure in at least 10 cities in strategic industrial corridors in Tamil Nadu.|
|Project Rationale and Linkage to Country/Regional Strategy||The program aims to address: (i) Rapid urbanization. Tamil Nadu is the most urbanized of India's large states: 49% of the population lives in urban areas and it is projected to increase to 67% by 2030. The MFF will address key urbanization challenges, including: (a) acute infrastructure deficits and low service levels, (b) water scarcity from recurring droughts linked to climate change, (c) environmental pollution, (d) weak capacity of ULBs to undertake operation and maintenance (O&M), (e) inadequate tariff revisions, and (f) weak governance. (ii) Low urban service levels. As of 2017, Tamil Nadu's cities had (a) 48% of households served by piped water; (b) 20% of households with more than 80 liters of water per capita per day, compared with a national standard of 135 liters per capita per day; (c) 30% to 50% nonrevenue water; (d) 42% of households covered by a sewerage network; (e) wastewater treatment capacity at 43% of sewage generation; and (f) 50% urban drainage coverage. (iii) Road map. Through its strategic documents, the Government of Tamil Nadu (GOTN) identified the following areas for making cities more livable: (a) mobilizing finance for urban infrastructure, (b) universal access to water and sanitation services, (c) accelerating green technologies, (d) climate-resilience, (e) advancing municipal reforms, (f) capacity building, and (g) supporting industrial corridors (footnote 4). (iv) Investment program. Vision Tamil Nadu 2023, the state government's strategic plan for infrastructure development, estimated urban investment at $42.7 billion, with short-term needs at $4.46 billion. Given the large requirement, the state government requested ADB to support part of $1.268 billion equivalent investment. (v) Policy framework. The Commissionerate of Municipal Administration's mandate is to (a) help ULBs plan infrastructure to meet national service-level standards; and (b) advance urban reforms set forth in India's Constitution (Seventy-fourth Amendment) Act, 1992, focusing mostly on devolution of urban services and revenue generation to ULBs. The MFF supports these goals through investment, performance-based grants for governance improvement, and institutional capacity building support through technical assistance (TA). (vi) Value added by ADB assistance. Innovative approaches and lessons adopted from past urban projects include (a) including household service connections in all water supply and sewerage contracts to ensure immediate use of new facilities and increase revenue; (b) using new technologies, such as India's first solar-powered sewage treatment plant (STP) and smart water meters and systems for real-time monitoring, to address water management challenges; (c) expanding recycling of treated wastewater for industrial reuse; (d) employing extended O&M contracts for smooth STP start-up; (e) aligning urban investments with economic corridor development; (f) supporting climate resilient investments; and (g) achieving high project readiness.|
|Impact||(i) universal access to basic water and sanitation services achieved; (ii) world-class cities and industrial corridors across the state developed; and (iii) reduced vulnerability to climate change in urban areas achieved.|
|Description of Outcome||Livability and climate resilience in selected cities in priority industrial corridors enhanced.|
|Progress Toward Outcome|
|Description of Project Outputs||
Climate-resilient sewage collection and treatment, and drainage systems developed in four cities (Ambur, Tiruchirappalli, Tiruppur, and Vellore)
Water supply systems in two cities (Madurai and Tiruppur) improved with smart features
Institutional capacity, public awareness, and urban governance in ten cities strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Geographical Location||Ambur, Madurai, Tamil Nadu, Tiruchirappalli, Tiruppur, Vellore|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The environmental assessment review framework (EARF) prepared for the MFF in 2018 is applicable to Project 2. Six IEEs were prepared following the EARF and show anticipated impacts during construction are temporary and will be adequately avoided or minimized through proven measures and practices, as outlined in the EMPs. Any permanent impacts during operations such as sludge residuals from treatment, while not significant, will be mitigated through standard operating procedures. An environmental audit of the existing Tiruppur STP found no major issues. The IEEs for bulk water supply subprojects in Madurai and Tiruppur found no significant impact on water availability for downstream users. In Vellore and Tiruchirappalli, significant impacts (e.g. vibration) from works occurring within the regulated areas of protected monuments will be avoided by (i) appointing an archaeological expert to assess impacts and supervise construction and (ii) obtaining permission from the Archaeological Society of India on proposed designs.|
|Involuntary Resettlement||The resettlement framework prepared for the MFF in 2018 is applicable for Project 2. Five draft resettlement plans and one due diligence report were prepared by the implementing agencies following the resettlement framework and adequately address (i) potential temporary loss of income to 2,691 street vendors including 1,428 vulnerable persons on pipe alignments; and (ii) permanent impacts to 3 business owners, and one residential household (structure loss). Total land required is 47.76 acres of which 36.02 acres is government land and 11.74 acres is private and being obtained through negotiated settlement and land donation from 10 owners (43 affected persons) with third-party verification.|
|Indigenous Peoples||There are no identified indigenous peoples impacts in Project 2.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||An initial baseline survey has been 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 will be 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.The CAPP shall be implemented. Its primary purpose is to disseminate information and open lines of communication between implementation agencies and all stakeholders to facilitate the implementation of the program and the early resolution of any conflict issues that may arise. The project also includes programs on leadership development for women to increase their representation in decision-making bodies, and awareness campaigns in low-income communities.|
Except as set forth in the paragraph below and ADB may otherwise agree, the Borrower shall ensure or shall cause the EA to apply Quality- and Cost-Based Selection for Consulting Services.
The Borrower shall ensure or shall cause the EA to recruit the individual consultants in accordance with procedures of ADB's Consulting Guidelines for recruiting individual consultants.
|Procurement||The procurement of Goods, Works and Consulting Services shall be subject to and governed by the Procurement Guidelines, and the Consulting Guidelines, respectively.|
|Responsible ADB Officer||Vivian Castro-Wooldridge|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Urban Development and Water Division, SARD|
Tamil Nadu Urban Infrastructure Financial Services Ltd.
#19, T.P Scheme Road, Raja Annamalai Puram Chennai - 600028, India
|MRM||18 Sep 2019|
|Approval||26 Nov 2019|
|Last Review Mission||-|
|Last PDS Update||26 Nov 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|26 Nov 2019||-||-||30 Jun 2026||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||593.00||Cumulative Contract Awards|
|ADB||206.00||26 Nov 2019||0.00||0.00||0%|
|Cofinancing||0.00||26 Nov 2019||0.00||0.00||0%|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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|Title||Document Type||Document Date|
|Tamil Nadu Urban Flagship Investment Program- Tranche 2: Periodic Financing Request Report||Periodic Financing Request Reports||Nov 2019|
|Tamil Nadu Urban Flagship Investment Program- Tranche 2: Tranche-at-a-Glance Report||Tranche Reports||Oct 2019|
Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation
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