India, ADB sign $230 million loan to upgrade Chennai water system

The Government of India and the Asian Development Bank (ADB) on Friday signed a $230 million loan agreement for the Chennai Climate-Resilient Water Security and Sewerage Project, aimed at expanding and modernising the city’s water supply and sanitation infrastructure, the Ministry of Finance said.

The project will improve access to safe and reliable water supply and sanitation services across Chennai, while strengthening the city’s resilience to climate change, improving public health and quality of life, and supporting a more efficient and financially sustainable urban water system.

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The plan includes the construction of more than 170 km of water supply and sewer pipes, the upgrading of seven water pumping stations and 38 sewer pumping stations, and the strengthening of water utility assets and operations management through performance-based contracts.

A key component of the project is a comprehensive ring-main solution, a closed-loop plumbing system designed to maintain balanced water pressure and deliver water efficiently across service areas. Chennai will become the first Indian city to implement such a system, according to the government.

The project will also digitally transform water and sanitation services through real-time monitoring and data-driven decision-making. Advanced technologies will be used to detect sewer blockages faster and reduce hazardous manual sewer inspections, while improving worker safety and customer responsiveness.

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The latest ADB investment builds on earlier projects in Chennai to expand access to safe and equitable water and waste management services. It is aligned with the government's Atal Mission for Rejuvenation and Urban Transformation 2.0 and Urban Challenge Fund.