USD400 Million from AIIB For Safe Drinking Water, Improved Sanitation in Andhra Pradesh

Beijing, China—About 3.3 million people in Andhra Pradesh will have access to safe drinking water following the approval of a USD400 million loan by the Asian Infrastructure Investment Bank’s (AIIB) Board of Directors. The project aims to provide safe drinking water through a piped water supply, to improve service levels and strengthen sustainable service delivery.

This project is expected to have a positive impact on women and girls in affected communities. Hauling water from communal taps is mainly carried out by women and girls and requires a significant amount of time that could otherwise be spent on more productive activities, such as education. Since women and girls have more frequent contact with water that may be contaminated, this project will also reduce health risks and health expenditures for women in Andhra Pradesh.

“Extending piped water supply is a major development priority of the Government of India,” said AIIB Vice President and Chief Investment Officer D. J. Pandian. “Weare supplementing the ongoing and proposed programs locally in Andhra Pradesh and are directly contributing to India’s achievements under Sustainable Development Goal 6 to ensure access to water and sanitation for all.”

The project is part of an integrated approach to water and sanitation improvement in India. Funding will come from AIIB as well as from programs by the Government of India and the Government of Andhra Pradesh.

The project components include:

• Water Supply: The construction of water supply systems in the project’s urban local bodies (ULBs), including intakes at the raw water source, raw water transmission mains, water treatment plants, clear water transmission mains, treated water storage, distribution networks and household service connections with meters.
• Sanitation and Drainage Pilots in five selected ULBs: Pilot Waste Water Treatment Plants for graywater treatment will be financed alongside critical drainage improvements by the Government of Andhra Pradesh.
• Institutional component: Capacity building to strengthen (i) overall project management and supervision and (ii) the institutional capacity in the ULBs in municipal services delivery and management, including financial, environmental and social aspects.

“This project will increase access to safe drinking water and support the Government of Andhra Pradesh in addressing water supply and sanitation,” said AIIB Director General of Investment Operations Supee Teravaninthorn. “The project will also strengthen AIIB’s capacity to finance other broad-based water supply projects, which are in high demand in other areas of India and in the region.”

Additional information about this project can be found on AIIB’s website.