India: Tamil Nadu Urban Flagship Investment Program Tranche 3

Sovereign Project | 49107-010

Project Name Tamil Nadu Urban Flagship Investment Program Tranche 3
Project Number 49107-010
Country / Economy India
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4253-IND: Tamil Nadu Urban Flagship Investment Program - Tranche 3
Ordinary capital resources US$ 125.00 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 flood protection - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project is the third tranche of the Tamil Nadu Urban flagship Program, which will develop priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors in Tamil Nadu.
Project Rationale and Linkage to Country/Regional Strategy 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 urban local bodies (ULBs) to undertake operation and maintenance (O&M); (e) inadequate tariff revisions; and (f) weak governance.

(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).

(iii) Water security and reduced vulnerability to climate change in urban areas achieved (Tamil Nadu Sustainable Water Security Mission, State Action Plan on Climate Change).

Project Outcome
Description of Outcome

Livability and climate resilience in selected cities in priority industrial corridors enhanced.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Climate resilient sewage collection and treatment, and drainage systems developed in two cities (Coimbatore and Thoothukudi).

Water supply system in one city (Madurai) improved with smart features.

Institutional capacity, public awareness, and urban governance strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Three IEEs were prepared. The proposed subprojects and components are located in urban areas of Madurai, Coimbatore and coastal city of Thoothukudi. Water and sewer lines, and drains will be constructed along existing public roads within right of ways, and facilities such as pumping stations, water tanks, and treatment plants etc., will be constructed over vacant land parcels in and around the towns. Given urban setting of project sites, there are no environmentally sensitive areas such as forests or protected areas. There are also no places of archeological, historical or cultural importance. Madurai is a prominent historical and cultural city in the state, however, none of the places of interest, including the famous Madurai temple, is in the project area. In Coimbatore, and selected sewage treatment plant sites are away from habitation. Thoothukudi is located along the east coast of India on Gulf of Mannar, and proposed drains will be constructed along the roads in a part of the town where there are no environmentally or culturally sensitive areas. Project area is about 6 km away from the nearest boundary of Gulf Mannar marine national park comprising 21 islands and spread over 560 sq. km in the Bay of Bengal. It is also about 1-2 km away from the eco sensitive zone notified around the national park. None of the subproject components are located in coastal regulation zone notified by the government.
Involuntary Resettlement Three resettlement plans were prepared for sewerage subproject in Coimbatore, water supply distribution subproject in Madurai and storm water drainage subproject in Thoothukudi. Construction of these subprojects will be accommodated either within the existing facilities' premises or on vacant government lands. No permanent and/or temporary land acquisition or significant impacts are envisaged. Nonetheless, potential temporary income loss has been assessed to 363 affected households (1,380 family members) comprising street vendors, roadside movable and transitory business, due to proposed pipelaying and drainage construction. 135 households (617 members) will also incur minor structure loss (soak pits and/or ramps) built on government lands - drainage alignments are under the legal jurisdiction of the government in Thoothukudi SWD subproject. Of the total affected households, 265 households (1039 family members) are considered vulnerable. Adequate consultations have been carried out during resettlement plan preparation. The resettlement plans will be finalized during detailed measurement surveys and design validation. Executing and implementing agencies will ensure that consultations will be sustained during construction.
Indigenous Peoples

Tranche 3 is classified as category C for Indigenous Peoples impact. No scheduled tribes were identified during the field visits and socioeconomic surveys and assessment undertaken in Coimbatore, Madurai and Thoothukudi. The scheduled tribe population in each of the three city corporation areas is less than 0.5% of their respective total populations and is scattered across city wards. The project does not impact Indigenous Peoples' dignity, human rights, livelihood systems or territories or natural or cultural resources that are used, owned, occupied, or claimed by indigenous peoples as their ancestral domain or asset.

Stakeholder Communication, Participation, and Consultation
During Project Design A project-level community awareness and participation plan (CAPP) has been prepared to strengthen stakeholder participation. The activities, key messages and methodology were planned to involve key stakeholders including the poor and women. Stakeholder mapping was carried out to identify stakeholders and plan information and communication strategies.
During Project Implementation The CAPP will be inclusive and participatory during project planning, implementation and monitoring. Adequate participation of civil society organizations in project implementation will be ensured with the inclusion of specific activities and indicators involving training and capacity building of self-help groups in the design monitoring framework, gender action plan (GAP) and CAPP. The self-help groups will be involved in awareness and consultation activities as part of CAPP implementation, including facilitating participation and empowering the poor. A gender and community development and participation assistant within the construction management and supervision consultant and governance improvement and awareness consultants (GIAC) will be mobilized to implement and monitor CAPP activities, with adequate resources provided.
Business Opportunities
Consulting Services ADB's Guidelines on the Use of Consultants (2013, as amended from time to time)
Procurement ADB Procurement Guidelines (2015, as amended from time to time)
Responsible ADB Officer Shoji, Hikaru
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Municipal Administration and Water Supply Dep't
Tamil Nadu Urban Infrastructure Financial Services Ltd.
Concept Clearance -
Fact Finding -
MRM 30 Jun 2022
Approval 23 Nov 2022
Last Review Mission -
Last PDS Update 24 Nov 2022

Loan 4253-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2022 27 Dec 2022 - 31 Dec 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 193.50 Cumulative Contract Awards
ADB 125.00 29 Dec 2022 0.00 0.00 0%
Counterpart 68.50 Cumulative Disbursements
Cofinancing 0.00 29 Dec 2022 0.00 0.00 0%

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tender Title Type Status Posting Date Deadline
PDC VIII Firm - Consulting Active 31 Dec 2022 12 Feb 2023
PDC X Firm - Consulting Closed 31 Dec 2022 29 Jan 2023
PDC IX Firm - Consulting Active 26 Dec 2022 07 Feb 2023
PDC X Firm - Consulting Closed 16 Jul 2022 15 Aug 2022
49107-IND: Tamil Nadu Urban Flagship Investment Program-Tranche 3 Invitation for Bids Closed 09 Jun 2022 28 Jul 2022
PDC-VII Firm - Consulting Closed 16 Apr 2022 20 May 2022
49107-IND: Tamil Nadu Urban Flagship Investment Program-Tranche 3 [TNUIFP/MDU/05] - CORRIGENDUM Invitation for Bids Closed 31 Mar 2022 28 Apr 2022
49107-IND: Tamil Nadu Urban Flagship Investment Program-Tranche 3 [TNUIFP/MDU/05] - ORIGINAL Invitation for Bids Closed 28 Feb 2022 12 Apr 2022
49107-IND: Tamil Nadu Urban Flagship Investment Program-Tranche 3 [TNUIFP/CBE/04] Invitation for Bids Closed 28 Feb 2022 06 May 2022
49107-IND: Tamil Nadu Urban Flagship Investment Program-Tranche 3 [TNUIFP/CBE/05] Invitation for Bids Closed 28 Feb 2022 06 May 2022
49107-IND: Tamil Nadu Urban Flagship Investment Program – Tranche 3 Advance Notice Active 12 Mar 2021

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.