The Government of India and the Asian Development Bank (ADB) on Friday signed a $230 million loan agreement to modernise and expand water supply and sanitation infrastructure in Chennai.
The loan documents were signed by Saurabh Singh, Deputy Secretary, Department of Economic Affairs (DEA), Ministry of Finance, on behalf of the Government of India, and Mio Oka, Country Director of ADB’s India Resident Mission, on behalf of the multilateral lender. The engagement with ADB for finalising the loan was undertaken under the guidance of Baldeo Purushartha, Joint Secretary (ADB and Japan), DEA.
The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable water supply and sanitation services across the city. The project is also expected to strengthen Chennai’s resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system.
ADB’s latest investment builds on its earlier projects in Chennai to expand access to safe and equitable water and waste management services. The project is aligned with the Government of India’s urban development initiatives, including the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund.
Under the project, more than 170 km of water supply and sewer pipelines will be constructed, while seven water pumping stations and 38 sewer pumping stations will be upgraded. Water utility assets and operations management will also be strengthened through performance-based contracts.
The project will enable Chennai to become the first Indian city to implement a comprehensive ring-main solution, a closed-loop plumbing system designed to maintain balanced water pressure and ensure efficient distribution across service areas. The system is expected to improve the reliability, equity and resilience of the city’s urban water supply network against natural hazards.
The project will also support the digital transformation of water and sanitation services through real-time monitoring, data-driven decision-making and improved customer responsiveness.
Advanced technologies will be introduced to eliminate hazardous manual sewer inspections, improve the speed and safety of blockage detection and enhance worker safety. The initiative will also prepare water distribution networks in at least two Greater Chennai zones for future investments.
