India and ADB) Sign $ 169 Million Loan to Provide Water and Sanitation Services in Tamil Nadu
Asian Development Bank (ADB) and the Government of India
signed a $169 million loan as the First Tranche of a $500 million multi-tranche
financing to develop climate-resilient water supply, sewerage, and drainage
infrastructure in at least 10 cities in the State of Tamil Nadu.
The State has faced recurring droughts and erratic monsoons
in the recent past resulting in severe water scarcity and urban flooding.
The ADB program forms part of its support to the state’s
Vision Tamil Nadu 2023 to provide universal access to water and sanitation and
to develop world-class cities in high-performing industrial corridors.
Though Tamil Nadu is the most urbanized of India’s large
States, urban service levels remain low, with less than half of households
served by piped water, only 42% of households are covered by a sewerage
network, with 43% of sewage disposed directly into waterways untreated.
The program will develop climate-resilient sewerage
collection and treatment and drainage systems in 10 cities, and install the
country’s first solar-powered sewage treatment plant.
Introduction of smart water management systems will help
reduce non-revenue water and strengthen operational efficiency.
Around 4 million people will benefit from piped water and
sewerage connections and improved drainage.
The program will boost institutional capacity, public
awareness, and urban governance as part of a comprehensive approach for
developing livable cities.
The First Tranche Loan will target the cities of Chennai,
Coimbatore, Rajapalayam, Tiruchirappalli, Tirunelveli, and Vellore.
A $2 million grant from the Asian Clean Energy Fund,
established by the Government of Japan, will fund the solar energy pilot
An ADB technical assistance grant of $1 million will
accompany the program to support capacity building.