Chennai Water Production and Demand Management Programme (Part 1: Desalination Plant)

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The planned Chennai Water Production and Demand Management Programme aims to increase the drinking water supply of the city of Chennai and reduce water losses, thereby contributing to the sustainable urban development of Chennai. The FC development loan of up to EUR 100 million financed as part of Phase I will be used to partially finance the construction of a seawater desalination plant at the Nemmeli site south of Chennai. In parallel, measures to increase resource efficiency (demand management) are being prepared, which are to be financed as part of a FC interest rate reduction. The desalination plant and the demand management measures that have yet to be defined are integral components of the Chennai Water Production and Demand Management Programme, which is being implemented jointly with the municipal water supply company Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB). The investment costs of the desalination plant are expected to amount to around EUR 170 million.