Manila, Dec 15, 2006 AEST (ABN Newswire) - Asian Development Bank (ASX: ATB) is lending an additional US$80 million for a project to clean up the environment for millions of people in the Indian city of Kolkata.
The extra funds will finance basic urban services in the city's deprived outer areas, promote community involvement, and support the Kolkata Municipal Corporation (KMC).
Work to be carried out includes sewerage and drainage for more than 2 million people, solid waste management for 5 million, enhanced urban services for 200,000 slum dwellers, and flood protection.
Only half of the 4.58 million population of Kolkata, the capital of West Bengal, have a sewer connection - a figure that drops to only 17% in the city's outer areas, which generally have access to fewer and lower quality basic urban services.
"Despite initial implementation delay, the last 18 months have seen the project gain considerable momentum and stronger project management," says Keiichi Tamaki, an ADB Senior Urban Development Specialist.
"There is clear sign the project's revised targets can be fulfilled. The $80 million is needed to fill a now sizable gap in the finances and to make sure that the work is carried out in an integrated manner over the entire project area. Otherwise, the results envisaged would be seriously undermined."
The scope of the project has undergone several changes since 2000, with the inclusion of a new borough, a rise in the number of affected persons to be resettled, higher compensation, and changes in canal improvement works. In addition, costs of goods and services have risen significantly.
Revised costs for the project are now more than $400 million, of which ADB is funding $257.8 million (including the supplementary loan). The Government of West Bengal and KMC will cover the rest of the cost. The supplementary loan is fully synchronized with the original loan, so has a 19-year term and interest determined in accordance with ADB's LIBOR-based lending facility. Estimated completion date is end of June 2010.
Contact
Omana Nair
Email: onair@adb.org
Tel:+632 632 5178; Mobile: +63 918 914-7003
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; Mobile: +63 920 938-6487
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