Ahmedabad’s Livability Gets Boost with India, ADB’s $181M Loan

In a significant development for urban planning in Gujarat, the Government of India and the Asian Development Bank (ADB) signed a landmark loan agreement valued at USD 181 million (hereinafter referred to as “the Loan”) in March 2024. This crucial financial instrument serves as the cornerstone of the Ahmedabad Peri-urban Livability Improvement Project (APLIP), a comprehensive initiative designed to address critical infrastructure deficiencies and demonstrably elevate the quality of life for residents in Ahmedabad’s rapidly expanding peri-urban zones.

Targeted Infrastructure Investments for Measurable Impact

The meticulously allocated Loan will propel the development of the following critical infrastructure projects within Ahmedabad’s peri-urban areas:

• Water Security Enhancement (Estimated Budget: USD 50 million): A comprehensive 166-kilometer water distribution network will be constructed, ensuring consistent and reliable access to clean water for peri-urban residents. This project directly addresses a critical public health need. A 2023 survey by the Ahmedabad Municipal Corporation revealed that over 30% of peri-urban households lack consistent piped water supply. The new network is projected to benefit over 500,000 residents.
• Climate Resilience Measures (Estimated Budget: USD 40 million): Recognizing the pressing need for climate change adaptation, the project allocates funds for the development of a 126-kilometer climate-resilient stormwater drainage system. This vital infrastructure will mitigate flooding risks and safeguard communities during extreme weather events. Studies by the Indian Institute of Technology Gandhinagar indicate that Ahmedabad’s peri-urban areas are particularly susceptible to flash floods, with economic losses exceeding ₹100 crore ($1.2 million) in 2022 due to heavy monsoon rains.
• Improved Sanitation and Waste Management (Estimated Budget: USD 70 million): A substantial portion of the Loan will be directed towards constructing a 300-kilometer sewerage network. This, coupled with the establishment of four new sewage treatment plants with a combined capacity of 100 million liters per day, will significantly improve sanitation and waste management practices in peri-urban areas. Currently, over 20% of peri-urban households lack access to proper sanitation facilities. The APLIP aims to achieve 100% sewage collection coverage within five years.
• Technical Assistance and Capacity Building (Estimated Budget: USD 21 million): The remaining portion of the Loan will be used to provide crucial technical assistance to local authorities. This will involve incorporating technology-based solutions for urban planning and management, with a specific focus on developing sustainable and disaster-resistant infrastructure.

Promoting Social Inclusion and Equitable Development

The APLIP prioritizes social inclusion and aims to create a more equitable living environment for all. The project designers have demonstrably considered the needs of vulnerable populations, including the urban poor, women, and migrant workers. Improved access to basic services like clean water and sanitation, coupled with enhanced urban governance, is expected to empower these communities and foster a more inclusive city. The project has set specific targets to ensure equitable distribution of benefits, aiming to reach 70% of project beneficiaries from low-income households and guaranteeing at least 30% of women’s participation in community planning committees.

A Catalyst for Ahmedabad’s Sustainable Future

The Ahmedabad Peri-urban Livability Improvement Project represents a significant turning point for the city’s future. By addressing critical infrastructure gaps, promoting better urban planning practices, and prioritizing social impact, this initiative has the potential to transform the lives of residents in peri-urban areas. The project serves as a catalyst for Ahmedabad’s overall growth and development, fostering a more sustainable, inclusive, and livable urban environment for all.

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