ADB approves loans worth $570 mn for urban projects in Rajasthan, MP

ADB said it has approved a $300 million loan to develop Rajasthan's secondary towns and a $270 million loan for Madhya Pradesh Urban Services Improvement Project

The Manila-headquartered Asian Development Bank (ADB) on Friday said it has approved two loans totalling USD 570 million (about Rs 4,200 crore) for urban sector projects in Rajasthan and Madhya Pradesh.

ADB said it has approved a USD 300 million loan to develop Rajasthan's secondary towns and a USD 270 million loan for Madhya Pradesh Urban Services Improvement Project.

In a statement, ADB said the USD 300 million loan has been approved to finance inclusive water supply and sanitation infrastructure and services in secondary towns of Rajasthan.

"The project is expected to build citywide access for improved water supply services for around 5,70,000 people and enhanced sanitation services for about 7,20,000 people in at least 14 secondary towns. These localities have 20,0001,00,000 residents," it said.

It further said that through the project, water supply systems in at least eight project towns are expected to improve by 2027, with about 1,00,000 households, including all urban poor households, benefiting from five new or rehabilitated water treatment plants and 1,350 kilometres of distribution networks.

Citywide sanitation systems based on the most cost-effective solutions will also be developed, it said, adding that the project will build on three earlier related projects and sector reforms funded by ADB in Rajasthan.

In another statement, ADB said it has approved a USD 270 million loan for construction of water supply and integrated storm water and sewage management infrastructure in Madhya Pradesh.

The loan is an additional financing intended to scale up the scope of the Madhya Pradesh Urban Services Improvement Project, which was approved in 2017 with a USD 275 million loan.

It will expand the outcome of the current project by benefiting an additional 1,85,000 households consisting of about 1.3 million people, ADB said.

"The project will receive support from the Bill & Melinda Gates Foundation, specifically for the integration of Citywide Inclusive Sanitation principles into the planning, design, implementation, operation, and maintenance of the sanitation subprojects," it said.

As in the previous loan, ADB said, the project will support the continued institutional strengthening and capacity building of the Urban Development and Housing Department and Madhya Pradesh Urban Development Company Limited.