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||
|Operational Priorities||OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP4: Making cities more livable
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
|Sector / Subsector||
Water and other urban infrastructure and services / Urban housing
|Gender||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 collectionin 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.
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||Works under progress at different sites.|
|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)||1. Construction works are under progress at Vallam and Kalanivasal site. Works would soon commence at Rediyarpatti. 2. Construction works under progress at one site (subproject financing approved by ADB). 3. Regional Planning consultants recruited and mobilized.|
|Geographical Location||Tamil Nadu|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||For output 1, an environmental assessment and review framework has been prepared in accordance with ADB's Safeguard Policy Statement and applicable laws and regulations that will guide subproject selection, screening, and categorization; environmental assessment; and the implementation of potential subprojects. Subprojects classified as category A will not be considered under the project. Results of the initial environmental examinations (IEEs) conducted in accordance with ADB's Safeguard Policy Statement adequately identify project impacts and risks for the three sample subprojects and indicate that the project is unlikely to have any significant adverse environmental impacts that are irreversible, diverse, or unprecedented. Potential impacts are site-specific and localized in nature (such as increased noise and dust levels, vibration, traffic congestion, potential interruption to existing utilities, and waste generation) with the exception of the land use change that will result in direct and irreversible impact because of the conversion of unused land to residential use. IEEs and environmental management plans (EMPs) have been prepared for the initial subprojects and are included in bid and contract documents. Further consultations will be held along with the completion of the social census survey, and the environment safeguards documentation will be updated prior to contract award. Grievances will be handled following the project grievance redress mechanism. The PMU will prepare environmental monitoring reports (quarterly during construction and annually during operation) and submit these to ADB. TNUHDB will be supported by loan consultants and the TA for environment safeguard implementation, monitoring, and required capacity building. All IEEs and EMPs will be disclosed on ADB's website and TNSCB's website. For output 2, the TNIFMC environmental and social management system (ESMS) outlines the screening, categorization, and due diligence (including identification of environmental impacts and mitigation) for potential investments under TNSF. Category A subprojects will not be considered for investment. In addition to the ESMS, an action plan, contained in the PAM, has been agreed with TNIFMC that applies to ADB-funded investments under the TNSF to ensure compliance with ADB's Safeguard Policy Statement. Reporting on the ESMS and the agreed action plan implementation will be submitted to ADB on a semiannual basis during project implementation and will also be publicly disclosed. Screening and categorization will be reflected in the subproject appraisal reports prepared by TNIFMC for the TNSF and submitted to ADB for clearing subprojects.|
|Involuntary Resettlement||For output 1, a resettlement framework has been prepared in accordance with ADB's Safeguard Policy Statement and applicable laws and regulations that will guide subproject selection, screening, and categorization; resettlement planning; and the implementation of future subprojects. Draft resettlement plans prepared for three sample subprojects indicate physical displacement of 2,745 families, loss of income generating assets and/or businesses, potential loss of employment, and temporary economic impacts to businesses and its employees as well as loss of common property resources and trees for some families due to pipelaying. The proposed mitigation measures and safeguard planning documents are adequate to address the assessed impacts. The involuntary resettlement impacts will be further assessed during the census survey, and the resettlement plans will be updated prior to contract award. TNSCB will disclose the draft resettlement plans by bid invitation stage and the updated resettlement plans prior to contract award on its official website; the documents will be available in the local language (Tamil) to be disclosed to affected persons. The PMU will prepare quarterly social safeguards monitoring reports for ADB review and disclosure, and an external monitor will undertake independent monitoring. The grievance redress mechanism is adequate and commensurate to the project risks and impacts. TNUHDB staff, including its Community Development Wing, will require capacity building on ADB's Safeguard Policy Statement requirements. ADB has conducted training workshops on ADB's Safeguard Policy Statement requirements and ADB accountability mechanism for TNUHDB staff. For output 2, an ESMS is in place for TNIFMC Category A projects will not be considered for investment (footnote 37). The action plan contained in the PAM has been agreed to with TNFMIC for ADB-funded investments to comply with ADB's Safeguard Policy Statement, screening, reporting, and disclosure.|
|Indigenous Peoples||The project will have no impacts on indigenous peoples within the definition of ADB's Safeguard Policy Statement.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations with the affected persons in the sending settlements and information dissemination with the host population in the surrounding areas around the resettlement sites of Reddiarpatti, Kalanivasal and Vallam after getting necessary permissions, has been carried out. Consultations were also carried out with Urban Local Bodies and the District Collectors, to discuss the list of settlement sites and necessary protocols for surveys and consultations. TNUHDB also carried out meetings and information dissemination with the necessary line departments. Information related to project design, the Resettlement Framework, EARF, Graduation Program and the project grievance redress mechanism (GRM) and GESI were disseminated to the affected persons, host population, civil society organization, local community leaders, politicians and other interested persons. Second round of consultations in the design phase covered feedback on Resettlement Plan, the Initial Environment Examination and the Gender Equality and Social Inclusion Plan. The consultations covering these aspects have been carried out by the ADB consultants / PID staff. Feedback from the stakeholders are documented and integrated.|
|During Project Implementation||Consultations are being carried out for the implementation phase, in continuation with consultations carried out in the design phase. The implementation phase consultation are being carried out by the Social Teams of the PIDs. The implementation phase consultations will include, ensuring the grievance redress mechanism is functioning and affected persons are made aware to use it in any of any unresolved problems, preparation of micro plans, ensuring all entitlements are paid before shifting; ensuring training programs which need to start are initiated with the needs assessment and market assessments done according as given in the graduation program; facilitating opening of bank accounts, providing information on the legal documentation for ownership of the units, explaining the terms and conditions as given by TNUHDB etc. It will also include information dissemination with contractors and site supervisors on awareness on compliance of core labor standards, occupational health and safety/community health and safety, ADB SPS, agreed Resettlement Framework, EARF, subproject IEE and EMP, GRM and GESI. Another site visit is proposed after the building construction starts to imbibe a sense of ownership amongst the affected persons and also to see for themselves the progress of work. The site visit will also include discussions on features particular to women or disabled people (for example construction of ramps), security features, location of playgrounds, creche, community center, understanding the layout of site also with reference to the facilities available outside the site such as hospitals, shops etc.|
|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 (INRM)|
Housing & Urban Dev't Dep't, Gov't of Tamil Nadu
|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||14 Dec 2022|
|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 Nov 2023||56.94||0.00||38%|
|Cofinancing||0.00||17 Nov 2023||14.39||0.00||10%|
|Status of Covenants|
|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 Nov 2023||134,059.59|
|Status of Covenants|
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.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
Requests for information may also be directed to the InfoUnit.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Industrial Housing Project at Siruseri, SIPCOT for Tamil Nadu Industrial Housing Private Limited||Loan 4106||04 Aug 2023||various | India||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||7,733,738.60||2,209,049.12|
|Affordable Housing Subproject Aavaas by Nebula Infraspace LLP||Loan 4106||04 Aug 2023||Various | India||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||38,784,194.53||4,597,144.93|
|Integrated Industrial Housing sub-project by Vidiyal Residency||Loan 4106||24 Apr 2023||various | various||Housing and Urban Development Department, Government of Tamil Nadu||109,772,423.00||8,300,192.12|
|Construction of 876 Nos. of housing units, Reddiarpatti Village, Palayamkottai Taluk, Tirunelveli District||Loan 4106||16 Dec 2022||Abirami Engineering Construction & Co. | No. 5/217 D1, Teachers Colony, Mohanur Road, Nammakal District||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||14,550,698.57||11,232,907.79|
|Regional Planning Consulting Services||Loan 4106||01 Sep 2022||LEA Associates South Asia Private Limited in JV with LEA International Ltd. Canada | B-1, E-27, Mathura Rd, Block E, Mohan Cooperative Industrial Estate, Badarpur, New Delhi, Delhi 110044||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||1,657,748.07||1,627,755.60|
|Affordable Housing subproject by Vijay Raja||Loan 4106||03 Aug 2022||various | India||Housing & Urban Dev't Dep't, Gov't of Tamil Nadu||47,452,440.97||4,494,902.71|
|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|