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You are here: Home / cat / ADB Approves $179 Million Loan to Drive Urban Transformation in Sikkim

ADB Approves $179 Million Loan to Drive Urban Transformation in Sikkim

Dated: September 18, 2025

The Asian Development Bank (ADB) has approved a $179 million loan to support the Sikkim Integrated Urban Development Project, aimed at improving urban services, enhancing mobility, and strengthening climate resilience across seven towns in Sikkim, India. The project targets Gangtok, Gyalshing, Mangan, Pakyong, Rangpo, Singtam, and Soreng, focusing on water supply, sanitation, urban mobility, and disaster preparedness.

ADB Country Director for India, Mio Oka, highlighted that the project aligns with India’s national urban transformation and digitalization goals by establishing GIS data centers, expanding IT initiatives, and mapping municipal assets to enable smarter, integrated planning. Investments in water, sanitation, and urban mobility are expected to deliver continuous water supply, reduce non-revenue water, and ensure inclusive sanitation services, fostering resilient and livable cities across Sikkim.

The project will provide continuous piped water to over 90% of residents in four towns by constructing three new water treatment plants and networks. It will also implement citywide inclusive sanitation systems, including integrated wastewater treatment, over 45 kilometers of sewerage networks, and fecal sludge management facilities.

To improve urban mobility, 25 kilometers of urban roads and pedestrian infrastructure will be upgraded, and nine transit complexes will be constructed, featuring smart parking, commercial zones, and emergency disaster relief facilities. Seven adaptive urban corridors will be developed with smart lighting, real-time information displays, and traffic management systems. Resilience measures include flood-proofing, landslide mitigation, GIS-based master planning, and enhanced disaster response infrastructure.

The project will also strengthen institutional capacity in urban planning, mobility, operations and maintenance, revenue generation, and climate resilience through updated strategic frameworks, GIS-based master plans, and smart mobility initiatives. A dedicated urban data center and training hub will support sustained capacity development, fostering interdepartmental collaboration, climate-adaptive infrastructure, and transit-oriented urban development. Gender-inclusive planning is central, with women-led water and sanitation programs, skill-building initiatives, and internships for youth and young women in urban services.

ADB, founded in 1966 and owned by 69 members, is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. It works with members and partners to tackle complex challenges, leveraging innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and protect the environment.

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