The Government of India and the Asian Development Bank (ADB) on Monday signed a $125 million loan agreement to enhance urban livability and strengthen climate resilience in Assam, benefiting nearly 3.6 lakh residents across six district headquarters and Guwahati.
The loan agreement for the Assam Urban Sector Development Project was signed by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, and Mio Oka, Country Director, India Resident Mission, ADB.
The project aims to deliver continuous, metered water supply, upgrade stormwater management systems, and improve urban governance through institutional reforms and capacity-building measures.
Key infrastructure investments include construction of six water treatment plants with a combined capacity of 72 million litres per day; installation of 800 km of water distribution pipelines in Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nalbari; and deployment of a real-time monitoring system to maintain non-revenue water below 20%.
In Guwahati, the project will enhance stormwater management in the Bahini Basin through flood diversion channels, upgraded drainage, and a nature-based retention pond to reduce flood risks and recharge groundwater.
The project will also establish the Assam State Institute for Urban Development in collaboration with IIT Guwahati, roll out a GIS-based property tax database, digital water billing systems, and a volumetric water tariff structure to improve financial sustainability and service delivery.
A strong focus has been placed on women’s empowerment and social inclusion, including training women self-help groups in water operations, offering internships for young women, and conducting school outreach programs to raise awareness on water, sanitation, and hygiene.
Officials said the project reflects a major step toward building climate-resilient, sustainable cities in Assam, while strengthening institutional capacity for better service delivery.