$112 Million ADB Loan to Improve Water Supply in India

$112 Million ADB Loan to Improve Water Supply in India

News Release | 2 August 2021

MANILA, PHILIPPINES (2 August 2021) — The Asian Development Bank (ADB) has approved a $112 million loan to finance water supply infrastructure in four towns in the state of Jharkhand.

“The project supports the Jharkhand Vision and Action Plan 2021 to improve the quality of life of its urban residents through better quality urban infrastructure,” said ADB Principal Urban Development Specialist for South Asia Sanjay Joshi. “Water supply in Jharkhand is currently inadequate, with residents receiving only an average 3 to 4 hours daily of water supply. The project will ensure continuous and quality water supply, which will also improve the health and hygiene situation in the area, particularly in post-pandemic scenario.”

The Jharkhand Urban Water Supply Improvement Project, which covers the towns of Hussainabad, Jhumri Telaiya, Medininagar, and Ranchi, will construct four water treatment plants, with a combined capacity of 275 million liters per day, to provide clean drinking water meeting the national drinking water quality standards. It will establish 940 kilometers of water distribution network to provide continuous water supply to about 115,000 households, including those below the poverty line, scheduled caste and scheduled tribe members, and other vulnerable groups.

To ensure sustainability, the project will strengthen the capacity of urban local bodies (ULBs) on urban service delivery and governance. The staff of ULBs and other state urban institutions will be trained on design and implementation of urban projects, which will cover various other aspects such as response to climate risks, inclusion of gender equality, and institutional development.

Innovative technologies will be introduced in the project design to minimize water losses in water treatment and distribution. The project also includes use of a supervisory control and data acquisition system for water supply operation, and geographic information system-based asset management in Ranchi.

The project aims to establish a model for continuous water supply combined with policy reforms and a contractual framework for sustainable operation, which can be replicated by other low-income states in India, including for the recently launched national Jal Jeevan mission for providing water to all urban households.

Total project cost is $160 million, of which $48 million will be financed by the Government of Jharkhand. The project is expected to be completed in 2028.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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