India: Inclusive, Resilient, and Sustainable Housing for Urban Poor Sector Project in Tamil Nadu
The proposed project will promote access to inclusive, resilient, and sustainable housing and urban development in Tamil Nadu by supporting the state in (i) relocating vulnerable communities living in high-risk areas to safe shelter; (ii) providing affordable, proper housing for urban poor households, and migrant workers from the economically weaker section (EWS) and lower-income group (LIG); and (iii) supporting the state in regional development planning.
South Asia Department
Request for information
- Water and other urban infrastructure and services
|Project Name||Inclusive, Resilient, and Sustainable Housing for Urban Poor Sector Project in Tamil Nadu|
|Country / Economy||India
|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
Private sector development
|Sector / Subsector||
Water and other urban infrastructure and services / Urban housing
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed project will promote access to inclusive, resilient, and sustainable housing and urban development in Tamil Nadu by supporting the state in (i) relocating vulnerable communities living in high-risk areas to safe shelter; (ii) providing affordable, proper housing for urban poor households, and migrant workers from the economically weaker section (EWS) and lower-income group (LIG); and (iii) supporting the state in regional development planning.|
|Project Rationale and Linkage to Country/Regional Strategy||
Tamil Nadu is among the large states with the most acute housing shortage because of both demand and supply factors. Demand side factors include (i) inaccessibility of existing housing programs to the poor because of inaffordability and qualification requirements; (ii) designs are not gender- and culturally sensitive; and (iii) low demand for or low occupancy because housing projects are located far from city centers. Supply side factors include (i) inadequate public resources, (ii) difficulty in attracting private investments due to low investment returns and lack of incentives; (iii) government's housing policies and procedures not matching capacity of the poor; and (iv) weaknesses in regional planning.
In Tamil Nadu, the large shortage of housing for the EWS and LIG result in limited housing options for the urban poor, and where available do not meet the needs of the urban poor including access to jobs and urban services. As such, the urban poor are forced to reside in hazardous areas or bear heavy transportation costs to access livelihoods. Unplanned urbanization and housing deficits have contributed to informal settlements and slum intensification. Tamil Nadu is among five states that host 62% of the country's slum population. The State has 5.8 million slum residents, which represents 17% of the urban population, and 8.9% of the total slum population in India. Most slum residents come from the EWS and the LIG. Informal settlements and slums are often situated in hazardous areas, are congested, and lack appropriate services (i.e., electricity, piped water supply, and sanitation/waste facilities). Slum areas are prone to disaster, environmental degradation, and health risks.
The proposed project builds on lessons from previous urban development projects and housing finance programs of Asian Development Bank (ADB) and the Government of India. In designing affordable housing, there is need for (i) balancing socioeconomic priorities, (ii) integrating regional perspectives and spatial considerations in development and economic planning, (iii) crafting and implementing appropriate policies and strategies, and (iv) ensuring inclusivity.
The rationale for the proposed project is stronger in view of the COVID-19 pandemic. There is recent literature documenting that addressing COVID-19 pandemic is more difficult in slum areas given deficiencies in water, sanitation, drainage, and waste collection in an environment constrained with space that makes social distancing and self-quarantine near impossible. A Brookings Institute study shows that slums are being disproportionately impacted in Mumbai, India. Slum conditions exacerbate already existing health issues in slum populations and containment sever slum dwellers from their income sources. Affordable housing and providing urban services to the urban poor and migrant workers will increase the resilience of beneficiaries to pandemics bringing further benefits to the wider community. In addition, the graduation program to be implemented in project housing sites will increase the resilience of the livelihoods of beneficiaries, and include behavior change required in maximizing benefits in the provision of sanitation and other urban services. The project will build-in required protocols in project design, particularly because the project has a participatory nature. The project is in-line with the recently announced special economic and comprehensive package which includes support for housing for migrants workers and the urban poor.
|Impact||Permanent shelter with appropriate housing infrastructures and services provided for every affected household.|
|Description of Outcome||Access to inclusive and safe affordable housing infrastructure and services for vulnerable and disadvantaged communities in Tamil Nadu increased.|
|Progress Toward Outcome|
|Description of Project Outputs||
Affordable and improved housing for vulnerable communities constructed
Affordable housing for urban poor and migrant workers increased
Regional plan development supported
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Geographical Location||Tamil Nadu|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||Advance contracting will include the engagement of the Regional Planning Consultant (RPC) and Quality Audit Consultancy service package.|
|Procurement||Advance contracting will be undertaken in conformity with ADB Procurement Policy (2017, as amended from time to time and Procurement for ADB Borrowers: Goods, Works, Consulting and Consulting Services (2017, as amended from time to time). Civil works will be packaged such that housing units, water supply and sewerage system and related infrastructure development at each location are in the same package. Clustering (packages covering 2 or more locations) will be used for service/operation and management contracts considering the type of residential units and in proximity of locations, etc.|
|Responsible ADB Officer||Majumder, Sourav|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Housing and Urban Development Department, Government of Tamil Nadu
Government of Tami Nadu Namakkal Kavignar Maligai, Fort St. George, Chennai 600 009
|Concept Clearance||30 Jul 2020|
|Fact Finding||03 Nov 2020 to 18 Nov 2020|
|MRM||12 Feb 2021|
|Approval||03 Sep 2021|
|Last Review Mission||-|
|Last PDS Update||03 Sep 2021|
|Approval||Signing Date||Effectivity Date||Closing|
|03 Sep 2021||07 Dec 2021||15 Feb 2022||28 Feb 2029||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||215.00||Cumulative Contract Awards|
|ADB||150.00||17 Jun 2022||25.78||0.00||17%|
|Cofinancing||0.00||17 Jun 2022||0.00||0.00||0%|
|Approval||Signing Date||Effectivity Date||Closing|
|03 Sep 2021||31 Dec 2021||31 Dec 2021||31 Aug 2025||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,500,000.00||0.00||0.00||0.00||0.00||0.00||1,500,000.00||17 Jun 2022||0.00|
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ADB Approves $150 Million Loan to Improve Urban Housing in IndiaThe Asian Development Bank approved on 3 September a $150 million loan to provide access to inclusive, resilient, and sustainable housing for the urban poor in Tamil Nadu, India.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Construction of 900 Nos of housing units adopting Type Design No. 02/2020 (G+3) with associated infrastructure works at Kalanivasal Village, Karaikudi Taluk in Sivagangai District||Loan 4106||02 Mar 2022||SHIPL AEC JV | No. 5 217 D1 Teachers Colony, Mohanur Road, Namakkal - 637001, Tamil Nadu||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||16,300,872.89||12,491,506.74|
|Construction of 969 Nos of housing units adopting Type Design No. 02/2020 (G+5) with associated infrastructure works at Ayyanar Koil Phase II, Vallam, Thanjavur Taluk in Thanjavur District||Loan 4106||02 Mar 2022||PSK Engineering Construction and CO. | Naducombai Post, KALAPPANAICKENPATTY VIA Namakkal Tamil Nadu 637404||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||18,104,427.26||13,873,586.82|
|Title||Document Type||Document Date|
|Inclusive, Resilient, and Sustainable Housing for Urban Poor Sector Project in Tamil Nadu: Procurement Plan||Procurement Plans||Sep 2021|