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$270 Million USD Loan to Improve Urban Water Services in Madhya Pradesh


The Government of India and the Asian Development Bank have signed a loan agreement for the second phase of the Madhya Pradesh Urban Services Improvement Project, following an original loan of $275 Million USD signed in 2017.

The new $270 Million USD loan will expand on the program to develop integrated storm water and sewage management infrastructure in an additional 64 small cities in the state of Madhya Pradesh. The program will also develop water supply networks and build capacity at the local level, in particular at the Urban Development and Housing Department and Madhya Pradesh Urban Development Company Limited. Specifically, the project will pilot an integrated urban development approach to improve urban water service delivery and to expand networks in two urban areas. It is expected that about 1.3 million people will benefit.

The programme also includes subprojects that specifically target improved sanitation, which receive support from the Bill & Melinda Gates Foundation. “Citywide Inclusive Sanitation” principles will be integrated into the planning, design, implementation, operation, and maintenance of the respective sanitation subprojects.

“The project will improve livability in selected cities with provision of universal access to basic water and sanitation services for the residents,” said Sameer Kumar Khare, Department of Economic Affairs in India’s Ministry of Finance. “This is aligned to the vision of the Government of Madhya Pradesh to improve urban infrastructure services with universal coverage of piped water supply in all urban local bodies by 2025.”

“Through this project, ADB will continue innovative approaches and good practices of the ongoing project including universal coverage with 100% household metering, full operation and maintenance cost recovery, and reducing nonrevenue water,” said Takeo Konishi, Country Director of ADB. “The provision of inclusive water and sanitation services to the urban poor will help achieve Sustainable Development Goal 6 or access to clean water and sanitation for all.”