GoI, ADB sign $206 million loan agreement under TNUFIP

CHENNAI: Keeping in mind the recent water crisis in Chennai and rising pollution levels, the Government of India (GoI) and the Asian Development Bank (ADB) signed a $206 million loan to develop water supply and sewage infrastructure in five cities of Tamil Nadu. The loan is also aimed at strengthening capacities of urban local bodies for improved service delivery. Kenichi Yokoyama, country director, ADB’s India Resident Mission and Sameer Kumar Khare, additional secretary, Department of Economic Affairs, Ministry of Finance, signed the loan agreement.

This will be the second project for the ADB supported $500 million multi-tranche financing for Tamil Nadu Urban Flagship Investment Programme (TNUFIP). According to a press release from ADB, the TNUFIP will build climate-resilient water supply, sewage and drainage infrastructure in ten cities of Tamil Nadu. The first phase of the project, worth $169 million, is already under implementation.

Four cities-Ambur, Tiruchirappalli, Tiruppur and Vellore-would be covered for developing sewage collection,treatment and drainage systems by setting up of rehabilitating sewage plants, pumping station, in the first phase of the project. The project will also connect all households in the project area to the sewage network, including and specially below poverty-line households. Industries in atleast four more cities will be covered for developing infrastructure to support wastewater reuse. Further, water supply systemswould be improvedfor the cities of Madurai and Tiruppurby commissioning of over 1,260 km of new distribution lines connecting nearly 1.90 lakh households with metered water supply. Moreover, around200 km of new transmission mains and nearly 230 km of feeder mains would be constructed along with two new water treatment plants.

According to Khare, the projects are aimed at improving the living standards of the urban population of the target cities of Tamil Nadu by providing water supply and sanitation facilities and improving the drainage system. The project initiatives are also aimed at creating a suitable environment for economic growth in these cities. According to Yokoyama, the project interventions will benefit residents, workers and industries in the State’s economic corridors thereby building industrial competitiveness and creating jobs. It also supports urban reform agenda such as better service delivery through private operators and with quality benchmarking.