Tamil Nadu: ADB's $125 Million Loan To Support Improved Sewage And Water Systems In Coimbatore, Madurai And Thoothukudi

The Government of India and Asian Development Bank (ADB) on Tuesday (27 December) signed a $125 million loan to develop climate-resilient sewage collection and treatment, and drainage and water supply systems in three cities in Tamil Nadu.

The loan agreement for Tamil Nadu Urban Flagship Investment Programme was signed by Union Finance Ministry's economic affairs additional secretary Rajat Kumar Mishra and Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission.

The financing is the third and the last tranche of the $500 million multi-tranche financing facility (MFF) for the programme approved by ADB in 2018 to build priority water supply, sewerage, and drainage infrastructure in strategic industrial corridors across 10 cities in the state, the Union Finance Ministry said in a statement.

The tranche 3 loan covers Coimbatore, Madurai, and Thoothukudi.

The financing will support the development of two sewage treatment plants in Coimbatore with 529 kilometers (km) of sewage collection pipelines, install 14 pump and lift stations and build 14 km of sewage pumping mains.

In Madurai, the project will support the commissioning of 813 km of new water supply distribution pipelines that will connect 163,958 households to 115 newly established district metered area with smart water features to reduce nonrevenue water.

In Coimbatore and Madurai, two all-female self-help groups will be trained on the benefits of household connection to sewage collection system, water conservation, sanitation, and health and hygiene.

After signing the loan agreement, Mishra said that the ADB financing will help ensure universal access to basic water and sanitation services and improve resilience against floods in the project target areas which are also the industrial hubs of Tamil Nadu.

“Through this project, ADB continues to support developing and improving urban services in the state by deploying new approaches such as build and operate modality, automatic meters for bulk water users, and real-time monitoring through supervisory control and data acquisition systems,” said Jeong.

“ADB’s urban investments are aligned to support strategic industrial corridor development in Tamil Nadu," Jeong added.