To help improve water and sanitation issues in Kolkata, multilateral funding agency Asian Development Bank (ADB) will provide a Rs. 3,600-crore loan. An estimated 300 million litres of water is lost every day in Kolkata, along the 5,700 km network, undermining income for water suppliers. Also, much of the operating machinery, some of which are up to 90 years old, uses far more electricity than modern equipment.

The ADB funds will be provided in three batches in the city’s peripheral areas through a multi-tranche financing facility. The first tranche will help restore the original production capacity of two existing water treatment plants, cutting water losses and gradually rolling out 24-hour water supply in target areas. New sewer pipes, pump stations and 2,300 new sewerage connections will be installed in the southern peripheral part of the city.

The loan will also help the Kolkata Municipal Corporation (KMC) put together a long-term cost recovery and subsidy plan that will ensure high-quality water and sanitation services are maintained. Subsequent tranches will continue installing sewage and direct water pipes in the eastern and western outlying areas of the city and build three sewage treatment plants using technologies that reduce greenhouse gas emissions. ADB’s loans will help KMC implement its water and sewerage plan. This builds on two previous ADB loans in 2000 and 2006 to renovate the city’s sewer-drain network.