ADB approves USD 230 million loan to modernise water supply and sanitation in Chennai

New Delhi: Asian Development Bank (ADB) has approved a USD 230-million loan to modernise and expand Chennai's water supply and sanitation infrastructure, benefiting 4.5 million residents in the Greater Chennai area.

Despite being India's fourth-largest city and a major industrial hub, Chennai's water supply infrastructure has not kept pace with growth, ADB said in a statement.

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ADB's latest investment builds on earlier projects in the city to expand access to safe and equitable water and waste management services, in line with the Government of India's flagship urban development interventions, such as the Atal Mission for Rejuvenation and Urban Transformation 2.0 and the Urban Challenge Fund, it said.

"The funding will improve access to safe and reliable water supply and better sanitation services across Chennai. The project will also help strengthen the city's resilience to climate change, improve public health and quality of life, and support a more efficient and financially sustainable urban water system," said ADB Country Director for India Mio Oka said.

The project will construct over 170 kilometers of water supply pipes and sewer pipes, upgrade seven water pumping stations and 38 sewer pumping stations, and strengthen water utility assets and operations management through performance-based contracts, it said.

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Chennai will become the first Indian city to implement a comprehensive ring-main solution -- a closed-loop system designed to maintain balanced water pressure and deliver water efficiently across service areas -- improving reliability, equity, and resilience to natural hazards in its urban water supply system, it said.