Press Information Bureau

Government of India

Ministry of Finance

09-March-2012 18:32 IST

The Government of India, Asian Development Bank (ADB) and the Government of Assam today signed a $81 million loan agreement for Tranche 1 of the Assam Urban Infrastructure Investment Program (AUIIP) which aims to bring clean, piped water to about 350,000 residents of Guwahati, as well as upgrade wastewater treatment and urban transport. In Dibrugarh, solid waste management and drainage infrastructure will also be improved.

The signatories were Shri Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and Mr. Hun Kim, ADB Country Director for India. Dr. Ashish Kumar Bhutani, Commissioner & Secretary, Guwahati Development Department signed the project agreement on behalf of Government of Assam.

The $200 million multi-tranche financing facility is to help Government of Assam with long-term funding for Urban Development. The Urban transport component of the first tranche of $81 million includes development of a 10-kilometer rapid transit corridor for buses in Guwahati, which is expected to serve more than 40,000 people daily, shorten travel time and cut greenhouse gas emissions. In Dibrugarh, solid waste collection coverage will increase to more than 80% of households and will include recycling. Drainage in the city will be improved by removing waste from waterways and by widening and rebuilding flood relief culverts, bridges and sluice gates. A new treatment plant, pipes and pumping stations will be built in Guwahati.

Joint Secretary (Multilateral Institutions), Department of Economic Affairs Shri Rajamony said that the water supply subproject will significantly augment supply and improve the quality of drinking water and wastewater treatment. Environmentally safe disposal of sewage and solid waste will help reduce water-borne diseases and improve public hygiene and health.

ADB Country Director for India Mr Kim said that major growth in these cities in recent years has put serious pressure on basic services. Guwahati, for example, currently has no sewage system and more than two-thirds of its population has no access to piped water. This project will invest in sustainable urban infrastructure development for delivery of urban service at the national standards.

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Loan agreement establishes multilateral financing for Assam urban infrastructure to expand water, wastewater, waste and transport services. Signing of a Loan Agreement among the Government of India, the Asian Development Bank and the Government of Assam establishes Tranche 1 financing under a multi tranche facility to expand piped water supply and wastewater treatment in Guwahati, upgrade solid waste management and drainage in Dibrugarh, and develop a rapid bus transit corridor in Guwahati to improve urban service delivery and environmental health.