Tamil Nadu is one of the most urbanized states in India and faces increasing impacts of climate shocks like floods and droughts. For its rapidly growing population, access to services like water and sanitation is essential for more climate-resilient cities.
The $300 million Tamil Nadu Climate Resilient Urban Development Program will help 21 Urban Local Bodies (ULBs) update their delivery systems and provide quality and efficient water supply and sewerage services to consumers.
Besides helping to gain better access to water supply to households, the Program will support ULBs to increase designated areas for green spaces and parks.
For the past two decades, the World Bank has engaged with Tamil Nadu and ULBs to establish and scale-up a state-level urban institution as a public-private partnership facility that leverages various sources of finance for urban infrastructure projects in cities.
The $300 million loan from the International Bank of Reconstruction and Development (IBRD) will use the blended financing instrument of Program-for-Results (PforR) with Investment Project Financing (IPF) to link disbursement of funds directly to the achievement of results while providing technical assistance. The Program loan has a maturity of 32 years with a grace period of 7 years.