ADB, Government of India Sign $100m Loan Agreement

The Asian Development Bank (ADB) and the Government of India signed a USD100 million loan agreement to strengthen a key irrigation and drainage system and improve water management in south Indian state of Tamil Nadu. 
The financing will be used to strengthen embankments of six major irrigation water channels in the Vennar system and rehabilitate 13 irrigation pumping schemes, ADB press release said. 
The Cauvery river basin is a critical source of water for agriculture, both within Tamil Nadu and neighboring states. But a lack of investment over many years has left irrigation systems unable to meet user demand and increasingly vulnerable to floods and droughts. 
"The loan will support Tamil Nadu’s water resources professionals to manage resources better, and with greater involvement of the stakeholders they service," said L. B. Sondjaja, Deputy Country Director of ADB’s India Resident Mission, who signed the loan agreement for ADB. "Communities will be involved in planning and delivery of water services. Flood forecasting and warning systems will be installed and a flood risks map drawn up to help communities respond more effectively to extreme events." A separate project agreement was signed by V. Shanmugam, Chief Engineer, Water Resources Department, on behalf of the State of Tamil Nadu. S. K. Prabakar, Principal Secretary, Public Works Department, Government of Tamil Nadu, was also present. 
The loan from ADB’s ordinary capital resources has a 25-year term. The Water Resources Department of the State of Tamil Nadu is responsible for implementing the project, which is expected to be completed by December 2020.