The Asian Development Bank has approved a $139.55 million loan to improve urban infrastructure and municipal governance in Puducherry, marking the development bank’s first engagement in the Union Territory.
The funding, under the Puducherry Integrated Urban Livability Improvement Project, will support climate-resilient water supply and sanitation infrastructure, whilst modernising urban public spaces and strengthening municipal finances.
The project will enhance Puducherry’s water supply and sanitation services by upgrading 100 kilometres of water supply network, laying 80km of new pipelines, constructing new overhead service reservoirs, and establishing district metered areas and brackish water reverse osmosis desalination plants.
The initiative will also build 270km of underground sewer network, rehabilitate 80km of existing sewer network, and set up a new sewage treatment plant with a capacity of 50 million litres per day.
ADB Country Director for India Mio Oka emphasised that the project is aligned with supporting India’s cities to become engines of economic growth.
The project will also upgrade urban public spaces by constructing 4.5 km of pedestrian walkways accessible to persons with disabilities and improving drainage systems through concrete lining and stabilisation.
These measures aim to enhance pedestrian safety, prevent flooding and accidents, and reduce the impact of extreme weather events.
The initiative will strengthen the municipal government’s institutional capacity and financial sustainability by implementing more efficient revenue collection measures, financial management system upgrades, a digital municipal service management platform, and integrated planning for water security and inclusive sanitation.
