Integrated Urban Flood Management for the Chennai-Kosasthalaiyar Basin Project (ADB-49107-009)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Chennai
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 28, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of India
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 251.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 251.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 470.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 25, 2022

Disclosed by Bank Mar 10, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to ADB website, the project will strengthen climate and disaster resilience in the Chennai-Kosasthalaiyar River basin. It will reduce the exposure of 1.9 million people to seasonal flooding by (i) improving climate-resilient urban flood protection infrastructure; (ii) enhancing urban flood preparedness of the Greater Chennai Corporation (GCC), the civic body that governs the city of Chennai, and project communities; and (iii) establishing measures for sustaining the operation and maintenance (O&M) of the stormwater drainage system in the GCC.

PROJECT RATIONALE

Chennai is ranked the most vulnerable to climate change among large Indian cities. The city is relatively low and flat and three major rivers traverse a coastal bowl. In 2015, severe flooding claimed more than 400 lives. The floods destroyed property and livelihoods particularly of the poor and other vulnerable groups residing next to water bodies. With rapid urbanization, the city's floodwater retention capacity is constrained and diminished. Flood risk management is inadequate due to the inappropriate urban planning, limited flood forecasting and early warning systems, and inadequate response capacity and awareness of the GCC and communities. The project reinforces pillars 2 and 3 of ADB's country partnership strategy for India, 2018-2022 by supporting inclusive urbanization and improving climate and disaster resilience.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Government of India has requested a regular loan of $251 million from ADB’s ordinary
capital resources to help finance the project. The loan will have a 25-year term, including a grace
period of 6 years; an annual interest rate determined in accordance with ADB’s London interbank
offered rate (LIBOR)-based lending facility; a commitment charge of 0.15% per year; and such
other terms and conditions set forth in draft loan and project agreements. Based on the custom-tailored repayment method, the average maturity is 15.95 years, and the maturity premium
payable to ADB is 0.10% per year.

The loan will finance expenditures in relation to
(i) part of the civil works and equipment, (ii) consulting services, and (iii) PBI schemes. The
Government of Tamil Nadu will provide $219.5 million to cover (i) part of the civil works and
equipment, (ii) taxes and duties, (iii) land acquisition and resettlement, (iv) contingencies, and (v)
financing charges during implementation. The Government of Tamil Nadu has provided
assurance that it will meet any financing shortfall to ensure that the project outputs are fully
achieved. Climate adaptation is estimated to cost $141.6 million. ADB will finance $87.0 million in
adaptation costs (61.4%) and the government will finance $54.6 million (38.6%).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer Matsunaga, Akira
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Municipal Administration and Water Supply Dep't
Government of Tamil Nadu Fort St. George Chennai -600-009



ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main

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