India : Sikkim Integrated Urban Development Project

Sovereign Project | 57230-001

The project will (i) improve sustainable, inclusive, and resilient urban services and mobility through infrastructure investment; and (ii) build the state's capacity for integrated urban planning and sustainable service delivery. Based on a gap analysis undertaken by the Urban Development Department (UDD) and Public Health Engineering Department (PHED), seven towns are prioritized for the proposed urban infrastructure investment (i.e., Gangtok, Gyalshing, Mangan, Pakyong, Rangpo, Singtam, and Soreng towns). The project aims to strengthen climate-resilient and smart water and sanitation infrastructure by improving water supply systems in Gangtok, Pakyong, Rangpo, and Singtam, focusing on reducing nonrevenue water and ensuring continuous supply.

Project Details

  • Project Officer
    Thu, Kyaw
    Sectors Group
    Request for information
  • Country/Economy
    India
  • Sector
    • Water and other urban infrastructure and services
Project Name
Sikkim Integrated Urban Development Project
Project Number
57230-001
Country / Economy
  • India
Project Status
Proposed
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan: Sikkim Integrated Urban Development Project
Source Amount
Ordinary capital resources US$ 180.00 million
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
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Transport / Urban public transport

  • Water and other urban infrastructure and services / Urban water supply

Gender
Effective gender mainstreaming
Description

The project will (i) improve sustainable, inclusive, and resilient urban services and mobility through infrastructure investment; and (ii) build the state's capacity for integrated urban planning and sustainable service delivery. Based on a gap analysis undertaken by the Urban Development Department (UDD) and Public Health Engineering Department (PHED), seven towns are prioritized for the proposed urban infrastructure investment (i.e., Gangtok, Gyalshing, Mangan, Pakyong, Rangpo, Singtam, and Soreng towns). The project aims to strengthen climate-resilient and smart water and sanitation infrastructure by improving water supply systems in Gangtok, Pakyong, Rangpo, and Singtam, focusing on reducing nonrevenue water and ensuring continuous supply. Sanitation infrastructure enhancements will include sewerage networks in core areas along with fecal sludge management for the remaining areas of Pakyong, Rangpo, Singtam, and Soreng, and inundation control in critically affected areas across all the seven project towns.

Urban mobility will be improved by (i) upgrading roads; (ii) establishing road asset management system; (iii) improving stormwater drains, footpaths, and streetlights; and (iv) establishing transit hubs with gender equality and social inclusion (GESI) responsive community facilities and smart parking. The development of smart zones with smart street lighting and air pollution monitoring systems will further enhance urban livability. A riverfront development with a park and community hall is planned in Rangpo to enhance recreational public space.

Municipal service capacity will be enhanced through integrated urban planning initiatives, including updates to the State Strategic Urban Plan and the development of geographic information system (GIS)-based master plans. Efforts will include capacity building for the State Climate Change Cell and the preparation of town-level climate action plans. Sustainable O&M plans will be developed along with modernizing accounting and tax revenue systems. Inclusive governance measures will include citizen-centric e-governance programs and the establishment of a State Urban Gender Cell. Skills development and awareness activities will include training for government officials, municipal staff, and local communities including school children, public representatives, and citizens on urban essential services and road safety.

Implementation arrangements. UDD of the Government of Sikkim will be the executing and implementing agency, with support from two project implementation units (PIUs). One PIU will consist of officers from UDD, while the other will comprise officers from PHED. PHED-PIU will manage water supply and sewerage components at the town level whereas UDD-PIU will oversee other project components. Both PIUs will have town-level field offices. PHED and UDD have prior experience in implementing similar projects.

Project Rationale and Linkage to Country/Regional Strategy

Demographic Trends, Urban Development, and Climate Vulnerability. Sikkim, located in the eastern Himalayas with an area of 7,096 square kilometers, is the second smallest state in India. Sikkim experienced a population growth rate of 12.9% from 2001 to 2011, and is expected to grow moderately from 677,000 in 2021 to 758,000 by 2036. The state's urbanization rate increased from 11.1% in 2001 to 25.1% in 2011, driven by industries, educational hubs, and rural to urban migration. Urban development is concentrated along main roads especially at higher reaches above 2,100 meters elevation and primarily in the eastern region around the capital, Gangtok. Tourism emerged as a significant economic driver in recent years. The state's average annual economic growth was 8.3% during 20142019 (footnote 3).

Sikkim's elevation ranges from around 280 meters to 8,586 meters above sea level. Only 20% of the state's area is habitable due to its mountainous terrain and extreme weather. The state is highly vulnerable to climate change, particularly increasing temperature in the region, and climate change-induced glacier melt, cloudbursts, cyclones and heavy rains, and flash floods.

Challenges in Municipal Services and Infrastructure Development. Sikkim lags in municipal services compared to other northeastern states. Water supply treatment capacity and quality control are insufficient, and the supply is limited to two to three hours per day for most towns. Operational costs are not fully recovered due to the low flat tariff rate and poor collection efficiency. During heavy rains, floods, and extreme weather events, the water supply system becomes vulnerable to contamination, damage, and associated operational problems. Sikkim has achieved significant sanitation coverage but most of the sanitation facilities are onsite pit latrines and flush latrines without proper fecal sludge management facilities. There is no sanitation tariff. Pollution and contamination of flood water pose public health risks. Stormwater drainage covers only 12% of the urban roads and they are old and insufficient in size. Heavy rainfall exceeds the design carrying capacity of drainages, resulting in increased flooding of roadways. The operation and maintenance (O&M) budgets for municipal services are inadequate, hindering resilience over the long-term. Sikkim towns suffer chronic congestion due to increasing number of motor vehicles, shortage of parking spaces, and improper urban planning and traffic management. Gangtok has an outdated mobility plan of 2010. Currently, a master plan for Gangtok is prepared, but other cities require their own comprehensive plans. The towns also face constraints in manpower, budget, and other resources in managing municipal services.

Vulnerability due to Climate Change. As climate change is expected to increase the magnitude and frequency of flooding, increased temperature, precipitation variability, and other extreme weathers in Sikkim, coupled with a small land area and insufficient critical infrastructures and planning, Sikkim's towns are in an unsustainable and vulnerable position with poor livability. Limited access to municipal services and poor resilience also disproportionately impact women and girls in the state.

Impact

Urban livability of target towns improved with better service delivery and climate and disaster resilience

Outcome

The outcome is resilient and sustainable urban services improved in seven project towns

Outputs

Green, smart, climate-resilient, and inclusive water and sanitation infrastructure strengthened

Urban mobility and infrastructure improved in seven towns of Sikkim

State and municipal capacity enhanced for integrated urban planning, climate-change resilience, urban mobility, and sustainable service delivery

Geographical Location
Nation-wide

Safeguard Categories

Environment
B
Involuntary Resettlement
B
Indigenous Peoples
B

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Contact

Responsible ADB Officer
Thu, Kyaw
Responsible ADB Department
Sectors Group
Responsible ADB Division
Water and Urban Development Sector Office (SG-WUD)
Executing Agencies
Urban Development Department, Government of Sikkim

Timetable

Concept Clearance
24 Jun 2024
Fact Finding
12 Sep 2024 to 12 Sep 2024
MRM
-
Approval
-
Last Review Mission
-
Last PDS Update
02 Jul 2024

Funding

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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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Project Management and Design Supervision Consultant (PMDSC) Firm - Consulting Closed
57230-IND: Sikkim Integrated Urban Development Project Advance Notice Active

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.