 "ADB, India Sign $200 million loan to expand urban services in Rajasthan")
The government and the Asian Development Bank (ADB) have inked a $200 million loan agreement to bolster the ongoing Rajasthan Secondary Towns Development Sector Project. The project's objective is to expand water supply and sanitation systems, while also enhancing urban resilience and promoting heritage conservation in selected towns.
The loan agreement was signed by Vumlunmang Vualnam, Additional Secretary of the Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Takeo Konishi, the country director of ADB's India Resident Mission, representing ADB.
Vualnam emphasised that the additional financing will assist the Government of Rajasthan in its commitment to address basic infrastructure gaps in secondary towns by expanding water supply and sanitation services, ultimately improving the quality of life in urban local bodies.
Konishi added, “The project will incorporate various innovative and climate-resilient solutions for expanding basic urban services and incorporate nature-based solutions to rehabilitate heritage structures besides piloting public-private partnerships in the state’s water and sanitation sector to deepen private sector engagement.”
The ongoing project, approved in September 2020, has already made significant progress, laying approximately 1,451 kilometers of water supply pipes, 1,110 kilometers of sewer pipes, and providing water services to 68,098 households in selected secondary towns across Rajasthan.
With the additional financing, water supply systems in at least seven towns will be upgraded by transitioning from groundwater sources to surface water, replacing around 700 kilometers of leaking water pipes, installing 1,400 kilometers of new water supply pipelines, and connecting 77,000 households with water meters. Moreover, the project will establish three new water treatment plants.
Sanitation systems in at least eight towns will also see improvements, involving the rehabilitation of approximately 580 kilometers of sewers, construction of seven sewage treatment plants with co-treatment units for fecal sludge and septage, and connecting at least 54,000 households to the sewage system.
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In ADB's support, a new feature introduced is water facility development for urban resilience improvement and heritage-sensitive urban development in at least eight heritage towns or towns with significant tourism potential. This initiative includes the reconstruction of water structures with heritage value, integrating nature-based solutions to enhance climate resilience. Additionally, at least 20 heritage or heritage-like structures will be rehabilitated to create a more appealing living environment and attract more tourists.
The project also plans to establish a special-purpose vehicle through a public-private partnership to address water security issues in Rajasthan's manufacturing industry. This initiative aims to encourage private sector investments and financing, establishing designated pipe networks to transport treated wastewater from sewage treatment plants to industrial facilities.