The FINANCIAL -- The Asian Development Bank (ADB) has approved a $275 million loan to help support and improve urban services delivery among poor communities, particularly on water supply and sanitation, in Madhya Pradesh in central India.
Accompanying the loan is a technical assistance to improve the capacity of the state government and other development stakeholders in urban services delivery.
“The project will improve water supply infrastructure in key towns and communities in Madhya Pradesh and make them more climate-resilient, while also helping the state government improve its urban operations and management and empower women,” said Jingmin Huang, an ADB Principal Urban Development Specialist.
Madhya Pradesh is India’s second largest state by land area and the fifth most populous with over 72 million residents. As the state continues to develop — it is urbanizing faster than the national average — there is increased need for better urban services.
The project will construct climate-resilient water supply facilities — such as raw water intakes, water treatment plants, overhead tanks, and distribution networks with metered household connections — in 64 project towns in Madhya Pradesh. It will also enable the construction of sewage and storm water management systems in tourist towns of Khajuraho and Rajnagar, while strengthening local authorities’ project implementation capacity, according to ADB.
The contracts to construct the facilities will be under a design-build-operate (DBO) model that will be introduced and implemented under the project to ensure quality, maximum impact, and sustainability. DBO models require contractors to not only develop high-quality infrastructure but also efficient operations of the facilities through a long-term performance-based contract. The project will support local authorities in maintaining these 10-year operation and maintenance contracts.
The total project cost is $399 million with the Government of India contributing $124 million. The ADB loan is expected to be completed by the end of 2022.