ADB Approves $179 Million for Climate-Resilient Urban Transformation in Sikkim

Through a combination of investments in water supply, sanitation, and mobility systems, the initiative seeks to create resilient, inclusive, and livable cities for communities across Sikkim.

 

The Asian Development Bank (ADB) has sanctioned a $179 million loan to support a transformative urban development program in Sikkim, India. The Sikkim Integrated Urban Development Project aims to overhaul critical urban services while enhancing climate resilience and improving mobility across seven key towns: Gangtok, Gyalshing, Mangan, Pakyong, Rangpo, Singtam, and Soreng.

Supporting India’s Urban Transformation Agenda

The project aligns closely with India’s national vision for urban transformation and digitalization, strengthening infrastructure while embedding smart technologies for better governance. “The project supports India’s national agenda for urban transformation as well as its digitalization goals by establishing GIS data centers, expanding IT initiatives, and mapping municipal assets to enable smarter and integrated planning,” said Mio Oka, ADB Country Director for India.

Through a combination of investments in water supply, sanitation, and mobility systems, the initiative seeks to create resilient, inclusive, and livable cities for communities across Sikkim.

Expanding Water Supply and Sanitation Systems

A central focus of the project is to provide continuous piped water supply to more than 90% of residents in four towns, a major step forward in improving quality of life. To achieve this, three new water treatment plants and modern distribution networks will be constructed.

In addition, the project will deliver citywide inclusive sanitation services, including:

• Construction of new integrated wastewater treatment systems

• Over 45 kilometers of sewerage networks

• Fecal sludge management facilities to support environmental and public health goals

These efforts are designed to cut non-revenue water losses, improve water efficiency, and promote safe sanitation practices, particularly in vulnerable communities.

Strengthening Urban Mobility and Connectivity

The project also prioritizes modern and inclusive mobility systems. ADB’s investment will:

• Upgrade 25 kilometers of urban roads and pedestrian-friendly pathways

• Build 9 integrated transit complexes equipped with smart parking, commercial spaces, and disaster relief facilities

• Develop 7 adaptive urban corridors with smart lighting, real-time information displays, and intelligent traffic management systems

These enhancements are expected to reduce congestion, improve accessibility, and foster transit-oriented urban growth across the region.

Building Climate Resilience and Disaster Preparedness

Given Sikkim’s vulnerability to floods and landslides, the project incorporates significant climate resilience measures, including:

• Flood-proofing and landslide mitigation systems

• Disaster response infrastructure and emergency relief hubs

• GIS-based urban master planning to integrate risk-sensitive development

These measures aim to reduce disaster risks, safeguard communities, and ensure continuity of services during emergencies.

Institutional Strengthening and Capacity Building

Beyond infrastructure, the project emphasizes institutional capacity development. State agencies will benefit from updated strategic frameworks, GIS-based master plans, and smart mobility initiatives. A dedicated urban data center and training hub will enable sustained capacity building, revenue generation improvements, and stronger interdepartmental coordination.

Importantly, the program integrates gender-inclusive planning. Women-led community initiatives will guide water and sanitation management, while training and internships will open opportunities for youth and young women to participate in urban service delivery.

Toward Resilient and Livable Cities

The Sikkim Integrated Urban Development Project represents a holistic model of urban planning—one that combines infrastructure upgrades, smart technology adoption, climate adaptation, and inclusive governance. By strengthening water, sanitation, mobility, and resilience systems, the ADB-backed initiative is expected to transform Sikkim’s urban landscape, making it a model for sustainable, climate-adaptive, and people-centered development in India’s Himalayan region.