USD 206 Million loan agreement signed with ADB for Strengthening Urban Services in Tamil Nadu

The Government of India and the Asian Development Bank (ADB) has signed a USD 206 million loan deal on Monday, 2nd December 2019 for developing sewage infrastructure and water supply in 5 cities of Tamil Nadu.
For improving the service delivery, the loan deal will further work on strengthening the capacities of the urban local bodies (ULB’s).
Under the project, in four cities- Ambur, Tiruppur, Vellore, and Tiruchirappalli, rehabilitating sewage treatment plants will be set up for developing drainage system, sewage collection and treatment, in the project area all households will be connected to the sewage network, pumping stations will be set up.
Through commissioning of new distribution lines for over 1260 km connecting about 190000 households will be targeted for improving the water supply system in the cities of Tiruppur and Madurai.

This is the second loan project under the ADB supported multi-tranche financing of USD 500 million loan agreement signed in September 2018 for the Tamil Nadu urban flagship investment program. Under the first project, USD 169 million financings are under implementation.


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