India and ADB) Sign $ 169 Million Loan to Provide Water and Sanitation Services in Tamil Nadu

Highlights:

  • 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 project.
  • An ADB technical assistance grant of $1 million will accompany the program to support capacity building.