Chennai: The Centre and the Asian Development Bank (ADB) on Friday signed a $230 million loan agreement to modernise and expand Chennai’s water supply and sanitation infrastructure, with the project aimed at making the city’s water systems more climate-resilient and financially sustainable.
The Chennai Climate-Resilient Water Security and Sewerage Project is expected to improve access to safe and reliable drinking water and sanitation services while strengthening the city’s ability to cope with climate-related risks.
The loan documents were signed by Saurabh Singh, deputy secretary in the Department of Economic Affairs (DEA), Ministry of Finance, on behalf of the Government of India, and Mio Oka, country director, India Resident Mission, on behalf of ADB. The engagement with ADB for finalisation of the loan was carried out under the guidance of Baldeo Purushartha, joint secretary (ADB & Japan), DEA.
The project will involve construction of more than 170 km of water supply and sewerage pipelines, besides upgrading seven water pumping stations and 38 sewer pumping stations.
A key component will be the introduction of a comprehensive ring-main water supply system, making Chennai the first Indian city to implement such a solution. The closed-loop network is designed to maintain balanced water pressure and improve the reliability and efficiency of water distribution across service areas.
The project will also strengthen the city’s water utility assets and operational management through performance-based contracts, officials said.
ADB will support the digital transformation of Chennai’s water and sanitation services through real-time monitoring, data-driven decision-making and improved customer response mechanisms.
Advanced technologies will also be introduced to reduce the need for hazardous manual sewer inspections, speed up blockage detection and improve the safety of sanitation workers.
The project will further prepare water distribution networks in at least two Greater Chennai zones for future investments.
The latest ADB funding builds on its earlier investments in Chennai and aligns with the Centre’s flagship urban development initiatives, including Atal Mission for Rejuvenation and Urban Transformation (AMRUT) 2.0 and the Urban Challenge Fund.
The project is expected to contribute to improved public health and quality of life while helping Chennai develop a more efficient, equitable and financially sustainable urban water and sanitation system.