JICA provides ₹3,065 crore ODA loan for Chennai’s second seawater desalination plant

Japan International Cooperation Agency (JICA) has signed a loan agreement amounting to 52,556 million Japanese Yen (approximately ₹3,065 crore) for the construction of the Chennai Seawater Desalination Plant (II) project in Tamil Nadu. The ODA (Official Development Assistance) agreement was signed between Manisha Sinha, Additional Secretary, Department of Economic Affairs, Ministry of Finance, and TAKEUCHI Takuro, Chief Representative of JICA India.

The project will involve the construction of a new 400 MLD desalination plant, along with the installation of water transmission and distribution infrastructure, including pumping stations, reservoirs, and pipelines. The project also includes consulting services for design, construction supervision, operational management support, and public awareness activities, says a release.

The Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) is the executing agency for this project and is responsible for its implementation and future operation.

The Chennai Metropolitan Area, with a current population of approximately 8.69 million (2011), is projected to exceed 15 million by 2035, placing immense pressure on water supply infrastructure. The increasing water demand, currently exceeding 1,400 million litres per day (MLD), has led to a supply gap, impacting both residents and industries, including over 360 Japanese companies operating in the region.

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According to Va Tech Wabag, the project will be the largest desalination plant in the South East Asian Region

Given the limited availability of surface and groundwater resources, the city has prioritized seawater desalination as a sustainable and stable source of water supply. The project aims to ensure a safe and stable water supply in Chennai by constructing and enhancing seawater desalination and water transmission facilities, thereby contributing to an improved living environment and a stronger investment climate.

Takuro, Chief Representative of the JICA India Office, said, “Chennai has long faced challenges in securing sustainable water sources due to rapid urbanization and climate-related factors. Through this project, JICA is committed to supporting the city’s efforts to establish a resilient and sustainable water supply system that ensures a better quality of life for residents and a more favourable business environment.

This initiative complements previous and ongoing international aid efforts, including the Asian Development Bank’s Tamil Nadu Urban Flagship Investment Program and the World Bank’s Chennai City Partnership Program, both of which support urban water infrastructure.