ADB, Centre sign $200 mn loan for expanding urban services in Rajasthan

The central government and the Asian Development Bank (ADB) on Friday signed a USD 200 million loan as additional financing for the ongoing Rajasthan Secondary Towns Development Sector Project.

The additional financing will support the Rajasthan government in reducing basic infrastructure gaps in its secondary towns by expanding water supply and sanitation services and improving livability in selected urban local bodies, the finance ministry said in a statement.

The project will incorporate various innovative and climate-resilient solutions for expanding basic urban services and incorporate nature-based solutions to rehabilitate heritage structures besides piloting public-private partnerships in the state's water and sanitation sector to deepen private sector engagement, the statement said.

A total of 1,451 km of water supply pipes, 1,110 km of sewer pipes have been laid as part of the ongoing project, which was approved in September 2020, while 68,098 households have been connected to water services in selected secondary towns in the state.

The additional financing will help improve water supply systems in at least seven towns by converting groundwater sources to surface water, replacing about 700 km of leaking water pipes, installing 1,400 km of new water supply pipelines, and providing 77,000 households with water meter connections, it said.

The amount will also help establish three new water treatment plants.

Sanitation systems in at least eight towns will be given an uplift by restoring about 580 km of sewers, building seven sewage treatment plants with co-treatment units to process fecal sludge and septage, and connecting at least 54,000 households to the sewage system, the statement said.

This includes the reconstruction of water structures with heritage value, incorporating nature-based solutions to improve climate resilience. It will also rehabilitate at least 20 heritage or heritage-like structures to improve the environment and attract more tourists, it added.