KMC shifts Rs 521 cr pending KEIIP works to new ADB-funded project

Kolkata: In a bid to continue essential drainage, sewerage and sanitation works that had already been tendered, the Kolkata Municipal Corporation (KMC) has approved a proposal to transfer all pending contractual obligations from the Kolkata Environmental Improvement Investment Programme (KEIIP) into the newly launched Kolkata Municipal Corporation—Sustainability, Hygiene and Resilience Project (KMC-SHARP).

The proposal was recently cleared in the monthly meeting of the civic body. Earlier, it had been approved by the Mayor-in-Council, where it was placed to ensure that incomplete works under the ADB-assisted KEIIP do not stall after the earlier project’s closure.

The move follows prolonged delays, cost escalations and partial surrender of funds under KEIIP. The total project cost of KEIIP was $570 million, of which $400 million was sanctioned by the Asian Development Bank (ADB) as loan assistance.

“Owing to pandemic disruptions, a shift from VAT to GST, cost-escalation clauses, site-specific variations and increased expenses related to utility shifting, several packages under Tranche-2 and Tranche-3 remain unfinished and have undergone major cost revisions,” an official said.

According to officials, KMC has identified a pending contractual liability of about Rs 521 crore for these incomplete works—Rs 144.21 crore under Tranche-2 and Rs 377.06 crore under Tranche-3.

With the KEIIP loan now formally closed and about $81.72 million surrendered to ADB, the civic body decided to migrate the spillover works to the new ADB-funded KMC-SHARP project to maintain continuity and expedite completion.

KMC-SHARP, which focuses on improving Kolkata’s environmental resilience and urban infrastructure, has a total cost of $285 million. Of this, $200 million will come from ADB, while the Government of West Bengal and KMC will contribute $55 million and $30 million, respectively.

In all, 13 KEIIP packages—four from Tranche-2 and nine from Tranche-3—will be carried over. Officials said the integration will ensure technical consistency, sustained funding and faster delivery of critical sewerage and drainage upgrades in several wards prone to waterlogging. The civic body said the move will also help align Kolkata’s infrastructure goals with ADB’s broader urban resilience framework.