Uttarakhand Gets $200M ADB Loan for Urban Infrastructure

The Government of India and the Asian Development Bank (ADB) today signed a $200 million loan to help upgrade water supply, sanitation, urban mobility, and other urban services in the state of Uttarakhand.

The signatories to the loan agreement for the Uttarakhand Livability Improvement Project were Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, for the Government of India, and Ms. Mio Oka, Country Director of India Resident Mission, for ADB.

Ms. Mukherjee stated that the project aligns with the Government of India’s urban development agenda as well as the Government of Uttarakhand’s initiatives to enhance urban services, aiming to boost livability and sustainability in cities.

“The project aims to create urban infrastructure that is resilient to climate and environmental risks such as floods and landslides, ensuring the safety and health of Uttarakhand’s population,” said Ms. Mio. “It will also build the capacity of the state agencies in project management, climate-and disaster-resilient planning, own-source revenue generation, and gender mainstreaming.”

The project will enhance transportation, urban mobility, drainage, flood management, and overall public services in Haldwani, the economic hub of the state. Additionally, it will improve water supply delivery in four cities - Champawat, Kichha, Kotdwar, and Vikasnagar - by developing efficient and climate-resilient water supply systems.

In Haldwani, the project will develop 16 km of climate-resilient roads, establish an intelligent traffic management system, deploy compressed natural gas buses, and pilot electric buses. To prepare the city against disasters, the project will construct 36 km of stormwater and roadside drains to improve flood management and implement an early warning system. A green-certified administrative complex and bus terminal will be built to improve the delivery of public services.

In the other four cities, the project aims to increase water service coverage to 100% by constructing 1,024 km of climate-resilient pipelines with smart water meters, 26 tubewells, new reservoirs, and a 3.5 million-litre-per-day water treatment plant. Sanitation coverage in Vikasnagar will be improved by sewage treatment facilities that will benefit around 2,000 households.

The project will introduce initiatives for women, such as livelihood skills training on driving buses, bus ticketing, and the operation of electric charging stations. Given women’s role in monitoring water supply systems, the project will build the capacity of women, including those from vulnerable households, in operating and managing water supply and sanitation services.

The European Investment Bank is cofinancing the project with $191 million on a parallel basis.