The loan would be used for climate-resilient sewage collection and treatment, drainage, and water supply systems

The government of India and the Asian Development Bank (ADB) on Tuesday inked a $125 million loan agreement in order to build climate-resilient sewage collection and treatment, drainage, and water supply systems in three cities in the state of Tamil Nadu.

Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance signed the tranche 3 loan for Tamil Nadu Urban Flagship Investment Program from the Indian side whereas Hoe Yun Jeong, Officer-in-Charge of ADB’s India Resident Mission signed the loan from ADB’s side.

According to Mishra, the ADB finance will aid in ensuring that all people have access to fundamental water and sanitation facilities as well as enhancing flood resilience in the project's target districts, which are also the state's industrial centers.

On the other hand, Jeong said that by implementing fresh strategies like the build-and-operate modality, automatic meters for large water users, and real-time monitoring via supervisory control and data acquisition systems, ADB is continuing to support the development and improvement of urban services in the state.

He continued by saying that ADB's urban investments are coordinated to help Tamil Nadu's development of critical industrial corridors.

This funding represents the third and final installment of the $500 million multi-tranche financing facility (MFF) for the program, which was approved by ADB in 2018 and is meant to construct high-priority water supply, sewerage, and drainage infrastructure in key industrial corridors throughout ten cities in the state.