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ADB Approves USD 125 Million Loan for Assam Urban Sector Development Project to Boost Urban Resilience.

Banking & Finance | Dated: 04 Sep 2025

In August 2025, the Asian Development Bank (ADB) sanctioned a USD 125 million loan to support the Assam Urban Sector Development Project (AUSDP). The initiative aims to modernize urban infrastructure, improve water supply, and enhance disaster resilience in six major urban districts of Assam, including Guwahati.

🎯 Key Highlights:

  • - The project will be implemented across Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, and Nagaon along with Guwahati, the state capital. It is designed to strengthen Assam’s urban water supply and stormwater management systems while ensuring efficient and sustainable service delivery.
  • - A key feature of AUSDP is the construction of six new water treatment plants with a combined capacity of 72 million liters per day. Alongside this, 800 kilometers of new water distribution pipelines will be installed, benefiting multiple urban centers and ensuring reliable water availability to households.
  • - The project integrates advanced technology through the introduction of a real-time monitoring system to keep nonrevenue water losses below 20%. This will allow better resource management and efficient water supply while curbing system inefficiencies.

💡 Other Important Facts:

  • (i) Governance reforms form a central part of the plan. The project includes the establishment of the Assam State Institute for Urban Development (ASIUD) in partnership with the Indian Institute of Technology Guwahati (IIT-G). This institute will develop GIS-based property tax databases, water billing systems, and volumetric tariff structures to improve financial sustainability.
  • (ii) Social empowerment initiatives are also embedded within AUSDP. Women’s Self-Help Groups (SHGs) will be trained in water operations, awareness campaigns on sanitation will be conducted in schools, and college-age women will receive training opportunities. These efforts strengthen gender inclusivity while promoting community-led urban development.
  • (iii) Environmental improvements under the project focus on sustainable stormwater management. In Guwahati, measures include capacity building for Bahini Basin flood resilience, improved drainage systems, and retention ponds to mitigate urban flooding. These interventions will directly benefit residents through improved water supply, drainage efficiency, and disaster preparedness.

📚 Test Your Knowledge:

Which international financial institution has recently approved a USD 125 million loan for the Assam Urban Sector Development Project (AUSDP)?

Correct Answer: Asian Development Bank

🚀 Quick Recap:

About Asian Development Bank

  • President : Masato Kanda (Japan)
  • Headquarters : Manila, the Philippines