India, ADB sign $230 million loan to modernise Chennai’s water supply, sanitation

New Delhi, Aug 21 (AHN) In a bid to modernise and expand Chennai’s water supply and sanitation infrastructure, the government and the Asian Development Bank (ADB) on Friday signed a $230 million loan.

The project will construct over 170 km of water supply pipes and sewer pipes, upgrade seven water pumping stations and 38 sewer pumping stations and strengthen water utility assets and operations management through performance-based contracts, according to a Finance Ministry statement.

With this, Chennai will become the first Indian city to implement a comprehensive ring-main solution, a closed-loop plumbing system designed to maintain balanced water pressure and deliver water efficiently across service areas, improving reliability, equity, and resilience to natural hazards in its urban water supply system.

The official statement further said that ADB will help digitally transform water and sanitation services through real-time monitoring, data-driven decision-making, and improved customer responsiveness.

The project will introduce advanced technologies to eliminate hazardous manual sewer inspections, make blockage detection faster and safer, enhance worker safety, and prepare distribution networks in at least two Greater Chennai zones for future investments.

The Chennai Climate-Resilient Water Security and Sewerage Project will improve access to safe and reliable water supply and better sanitation services across Chennai.

It will also help strengthen the city’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system, said the statement.

The latest investment by ADB builds on earlier projects in the city to expand access to safe and equitable water and waste management services, in line with the government’s flagship urban development interventions, such as the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund.

The loan finalisation was done under the guidance of Baldeo Purushartha, Joint Secretary (ADB and Japan), Department of Economic Affairs (DEA), Ministry of Finance.