JICA signs pact to fund 400mld desalination plant

Japan International Cooperation Agency (JICA) has signed an agreement with the Union government to provide Official Development Assistance (ODA) loan of 30,000 million Japanese Yen (approximately Rs 1,800 crore) for the “project for construction of Chennai seawater Desalination Plant (I). 

The ODA loans would be availed for the project at an interest rate of 1.5% for project activities and 0.01 % interest rate for consulting services and 30 years of repayment period (including 10 years’ grace period). The agreement was signed between Ambassador of India to Japan Sujan R and senior vice president of JICA Junichi Yamada at Iikura House of the Ministry of Foreign Affairs in Tokyo. 

The project aims to provide safe and reliable water supply from a seawater desalination plant with a capacity of 400mld and its related water supply facilities at Perur to residents in Chennai Metropolitan Area (CMA). The city has two functional 100mld desalination plants each at Minjur and Nemmeli now.