ADB, India sign $206 million loan to strengthen urban services in 5 Tamil Nadu cities

The Asian Development Bank (ADB) and the Government of India signed a $206 million loan to develop water supply and sewerage infrastructure in 5 cities of Tamil Nadu and strengthen capacities of urban local bodies (ULBs) for improved service delivery.

This is the second project loan for the ADB-supported $500 million multi-tranche financing for Tamil Nadu Urban Flagship Investment Program, approved in September 2018, that will overall develop climate-resilient water supply, sewerage, and drainage infrastructure in 10 cities of Tamil Nadu. The first project under the program with $169 million financing is currently under implementation.

“The project interventions will benefit residents, workers, and industries in the state’s economic corridors, thereby, building industrial competitiveness and creating good jobs. It also supports urban reform agenda such as better service delivery through private operators and with quality benchmarking,” said ADB Country Director for India Mr. Kenichi Yokoyama.

The project will target four cities—Ambur, Tiruchirappalli, Tiruppur, and Vellore—for developing sewage collection and treatment and drainage systems by setting up or rehabilitating sewage treatment plants, pumping stations, and connecting all households in the project area to the sewerage network, including below poverty line households. Wastewater reuse for industry will also be achieved in at least 4 cities. Improvement of water supply systems would be targeted in the cities of Madurai and Tiruppur through the commissioning of over 1,260 km of new distribution lines to connect nearly 190,000 households with metered water supply, including below the poverty line households. In addition, nearly 200 kilometers (km) of new transmission mains and 230 km of feeder mains would be constructed, along with two new water treatment plants.

The project will also strengthen the capacity of the Commissionerate of Municipal Administration in Tamil Nadu for new project development, and monitoring and benchmarking quality of services across the 135 urban local bodies in the state.

Original source: ADB
Published on 02 December 2019