Gangtok, 19th September: The Asian Development Bank (ADB) has approved a $179 million loan to support a transformative urban development initiative in Sikkim, India, aimed at modernizing infrastructure, expanding essential services, and strengthening climate resilience. Announced on 18 September 2025, the loan will finance the Sikkim Integrated Urban Development Project, covering the towns of Gangtok, Gyalshing, Mangan, Pakyong, Rangpo, Singtam, and Soreng. The project seeks to enhance water supply, sanitation, mobility, and disaster preparedness while integrating climate-resilient planning across the rapidly growing Himalayan state.
ADB noted that the initiative is designed to balance sustainable urban growth with ecological sensitivity, recognizing Sikkim’s fragile mountain ecosystem. The project also aligns with India’s national urban transformation and digitalization goals by establishing GIS data centers, expanding IT initiatives, and mapping municipal assets for smarter and integrated planning. “By combining investments in water supply, sanitation, and urban mobility, the project will deliver continuous water supply, reduce non-revenue water, and ensure inclusive sanitation services creating resilient and livable cities for communities across Sikkim,” said Mio Oka, ADB Country Director for India.
A key focus is improving water supply and sanitation. The project will ensure continuous piped water supply for more than 90 percent of residents in four towns by constructing three new water treatment plants and expanding networks. It will also establish inclusive sanitation systems, including integrated wastewater treatment, over 45 kilometers of sewerage networks, and fecal sludge management facilities.
To boost mobility and resilience, the initiative will upgrade 25 kilometers of urban roads and pedestrian infrastructure, and build nine transit complexes featuring smart parking, commercial zones, and emergency disaster relief facilities. Seven adaptive urban corridors will be developed with smart lighting, real-time information systems, and advanced traffic management. Resilience measures include flood-proofing, landslide mitigation, GIS-based master planning, and enhanced disaster response infrastructure.
Institutional capacity building is another major component, with efforts to strengthen state agencies in urban planning, mobility, operations and maintenance, revenue generation, and climate resilience. This will be supported by updated strategic frameworks, GIS-based master plans, and smart mobility initiatives. A dedicated urban data center and training hub will ensure sustained capacity development and foster interdepartmental collaboration. The project also emphasizes gender-inclusive planning through women-led community water and sanitation programs, skill-building, and internships for youth and young women in urban services.
ADB highlighted that this program complements its wider efforts in India’s northeast, noting its recent approval of a $125 million loan for Assam to enhance resilience in Guwahati and six district headquarters. Both projects reflect the Bank’s focus on climate-adaptive infrastructure in Himalayan and northeastern states facing mounting urban and environmental pressures.
Founded in 1966 and owned by 69 members, ADB is a leading multilateral development bank committed to promoting inclusive, resilient, and sustainable growth across Asia and the Pacific. By leveraging innovative financing tools and strategic partnerships, the Bank continues to invest in transformative projects that improve quality of life, safeguard the environment, and support long-term development.
