Original disclosure @ ADB website
Updated in EWS Jul 25, 2022
Disclosed by Bank Mar 10, 2020
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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.
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.
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%).
|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