Union Government, ADB sign loan agreements worth USD 574 million for various projects in India

The Union Government and the Asian Development Bank (ADB) on November 16, 2018, signed loans agreements worth USD 574 million for various projects in India, including hydropower transmission in Himachal Pradesh; support to IIFCL in India; and for water and sanitation services in Tamil Nadu. Established in 1966, the ADB is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific. It is owned by 67 members with 48 from the Asia and the Pacific region.

The ADB and the Union Government signed a USD 105 million loan agreement to continue financing the transmission system upgrades in Himachal Pradesh for increased supply of hydropower. This tranche 3 loan is part of the USD 350 million multi-tranche financing facility (MFF) for Himachal Pradesh Clean Energy Transmission Investment Program approved by the ADB Board in September 2011.

The ADB and Union Government signed USD 169 million loans as the First Tranche of a USD 500 million multi-tranche financing to develop climate-resilient water supply, sewerage, and drainage infrastructure in at least 10 cities of Tamil Nadu. The program will develop climate-resilient sewerage collection and treatment and drainage systems in 10 cities, and install the country’s first solar-powered sewage treatment plant.

The ADB and Union Government signed a USD 300 million Loan Agreement to support lending by India Infrastructure Finance Company Limited (IIFCL). The ADB funding is expected to fund at least 13 sub-projects through IIFCL, including roads and renewable power generation, under the last tranche.

Around 4 million people will benefit from piped water and sewerage connections and improved drainage. The program will boost institutional capacity, public awareness, and urban governance as part of a comprehensive approach for developing livable cities. The First Tranche Loan will target the cities of Chennai, Coimbatore, Rajapalayam, Tiruchirappalli, Tirunelveli, and Vellore.

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