India, ADB sign $230 million loan to modernise Chennai water supply and sanitation infrastructure

New Delhi: The Government of India and the Asian Development Bank (ADB) have signed a $230 million loan agreement to modernise and expand water supply and sanitation infrastructure in Chennai under the Chennai Climate-Resilient Water Security and Sewerage Project.

The Government of India's engagement with ADB for finalisation of the loan was undertaken under the guidance of Baldeo Purushartha, Joint Secretary (ADB & Japan), Department of Economic Affairs (DEA), Ministry of Finance.

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The loan documents were signed by Saurabh Singh, Deputy Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Mio Oka, Country Director, India Resident Mission, on behalf of ADB.

The project aims to improve access to safe and reliable water supply and sanitation services across Chennai while strengthening the city's resilience to climate change. It is also expected to contribute to improved public health and quality of life and support a more efficient and financially sustainable urban water system.

Over 170 Km of Water and Sewer Pipes

Under the project, more than 170 km of water supply and sewer pipes will be constructed. It will also upgrade seven water pumping stations and 38 sewer pumping stations.

The project will strengthen water utility assets and operations management through performance-based contracts, with a focus on improving the efficiency and sustainability of urban water services.

Chennai to Implement Comprehensive Ring-Main Solution

A key feature of the project will be the implementation of a comprehensive ring-main solution, making Chennai the first Indian city to adopt such a system.

The closed-loop plumbing system is designed to maintain balanced water pressure and enable efficient distribution across service areas. The solution is expected to improve the reliability and equity of water supply while enhancing the city's resilience to natural hazards.

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Digital Transformation of Water and Sanitation Services

ADB will also support the digital transformation of water and sanitation services through real-time monitoring, data-driven decision-making and improved customer responsiveness.

The project will introduce advanced technologies aimed at eliminating hazardous manual sewer inspections and making blockage detection faster and safer. These measures are also intended to improve worker safety.

In addition, the project will prepare distribution networks in at least two Greater Chennai zones for future investments, helping create a stronger foundation for the city's long-term water security.

Alignment with Urban Development Initiatives

ADB's latest investment builds on earlier projects in Chennai aimed at expanding access to safe and equitable water and waste management services. The project is aligned with the Government of India's flagship urban development initiatives, including Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and the Urban Challenge Fund.

The investment is expected to strengthen Chennai's urban water infrastructure while supporting climate resilience, improved sanitation and more sustainable management of essential municipal services.

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