Asian Development Bank Sign $181M Loan for Urban Project

The Government of India and the Asian Development Bank (ADB)today signed a $181 million loan to build quality infrastructure and services toward improving urban livability and mobility in the peri-urban areas of Ahmedabad city in Gujarat.

 The signatories to the loan agreement for the Ahmedabad Peri-urban Livability Improvement Project were Ms.Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance for the Government of India, and Shri Rajesh Vasudevan, Officer-in-Charge of ADB’s India Resident Mission, for ADB.

After signing the loan agreement, Ms. Mukherjee said that the project aims to make peri-urban areas of Ahmedabad livable, environmentally sustainable, and efficient with robust physical andsocial infrastructure, a vibrant economy, and a distinct identity as a preferred investment destination.

Enhancing Urban Services in Ahmedabad

“Ahmedabad’s continued expansion presents an opportunity as an economic growth center while the attendant challenge is to better manage the city’s urban sprawl especially in the peri-urban areas. The project’s interventions aim to address this challenge with the expansionof quality urban services and transport connectivity for the large migrant population settled in the city’s peripheral areas,” said Mr. Vasudevan.

The project will benefit urban poor, women, and migrant workers through improved urban services and urban governance. It will construct 166 km of water distribution network, 126 km of climate-resilient stormwater drainage, 300 km of sewerage systems, and four sewage treatment plants. The project is also supporting 10 junction improvements along the existing Sardar Patel Ring Road to improve connectivity of peri-urban areas to Ahmedabad city.

ADB will help strengthen the capacity of the Ahmedabad Urban Development Authority and urban local bodies in technology-based urban planning, including climate change and disaster-resilientinfrastructure that promote environmental and social safeguards, gender equality and social inclusion. The project will support land development plans and town planning schemes integrating these elements that can be replicated by other states to enhance more planned urban development and densification through agglomeration.

The project will also build the government agencies’ capacity in financial planning, revenue enhancement and infrastructure asset operations. Awareness-raising activities will be conducted in communities to encourage water conservation, health, and hygiene. Women self-help groups will be trained on water supply operations. The project will support development of recycling treated sewage for industrial use through a public–private partnership.