ADB Approves $200 Million Loan to Expand Urban Services in Kolkata, India

NEW DELHI, INDIA (26 February 2025) — The Asian Development Bank (ADB) has approved a $200 million loan to enhance the development of climate- and disaster-resilient sewerage and drainage infrastructure in Kolkata, aiming to improve the city's livability.

These interventions, which are part of the Kolkata Municipal Corporation Sustainability, Hygiene, and Resilience (Sector) Project, will improve living conditions and health outcomes, particularly for vulnerable groups including women and children, by reducing exposure to waterborne and vector-borne diseases, while also addressing flood risks.

“The project builds on ADB’s 25-year partnership with the Kolkata Municipal Corporation (KMC), working to make Kolkata a more livable city through phased, integrated investments to improve urban services, operational efficiency, institutional effectiveness, and long-term sustainability,” said ADB Water and Urban Development Portfolio Management Unit Head Hikaru Shoji.  “As the next phase of our urban development efforts in Kolkata, this project builds on earlier initiatives to expand sewerage and drainage infrastructure, improve hygiene conditions, and strengthen KMC’s governance and revenue generation efforts."

Kolkata, one of India’s most populous and densely populated cities, faces significant challenges due to inadequate drainage and sewerage systems, causing urban floods and unhygienic environment. These issues are exacerbated by increased heavy rains due to climate change.

To address these challenges, the project will construct 84 kilometers (km) of combined trunk and secondary sewerage and drainage pipelines, 176 km of combined lateral sewerage and drainage pipelines up to customer connections, and 50,000 household sewer connections. It will construct one sewage treatment plant and five pumping stations. The project will benefit over 277,000 residents.

In addition, the project will support KMC in developing a comprehensive IT-based asset management system, enhance property tax revenue, expand the early flood warning system developed through an earlier ADB intervention, raise community awareness on water, sanitation, and hygiene and support women’s employment through skills training and internship program.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—49 from the region.