ADB Approves $300 Million Loan to Develop Rajasthan’s Secondary Towns

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New Delhi: The Asian Development Bank (ADB) has approved a $300 million loan to finance inclusive water supply and sanitation infrastructure and services in secondary towns of Rajasthan, India.

The project is expected to build citywide access for improved water supply services for around 570,000 people and enhanced sanitation services for about 720,000 people in at least 14 secondary towns. These localities have 20,000–100,000 residents.

“Partnership with ADB helps ensure a longer-term policy dialogue on deepening financial sustainability and institutional strengthening, particularly in local governments, and introduces new good practices,” said ADB Senior Urban Development Specialist for South Asia Na Won Kim. “Specifically, ADB will help ensure that the project incorporates practical lessons and innovations. The use of smart technologies and a cost-effective system are the key innovative features that could be widely replicated in other cities in Rajasthan and beyond.”

Through the project, water supply systems in at least eight project towns are expected to improve by 2027, with about 100,000 households including all urban poor households, benefiting from five new or rehabilitated water treatment plants and 1,350 kilometers of distribution networks. Citywide sanitation systems based on the most cost-effective solutions will also be developed.

The project will build on three earlier related projects and sector reforms funded by ADB in Rajasthan. Since 2000, the government has implemented two multisector urban investment projects supported by ADB, benefiting more than 7 million people in 21 cities. The third project, Rajasthan Urban Sector Development Program, implements water supply and sanitation investments in six major cities.

The project will strengthen the institutional capacity of the local governments and the Rajasthan Urban Drinking Water, Sewerage, and Infrastructure Corporation Limited, a corporate entity established with ADB’s technical support. The project will provide enhanced support to women and vulnerable groups through skills training, paid internships, and community engagement and awareness activities.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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