ADB to give $200-mn loan for reconstructing helipads in Uttarakhand

They were damaged in the floods of June 2013

Asian Development Bank (ADB) will grant $200 million loan to Uttarakhand for reconstructing and upgrading infrastructure facilities which were damaged after last year’s deluge. This will include building of 50 helipads.
 

An agreement to this effect was signed by Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; and M Teresa Kho, Country Director, INRM, on behalf of ADB. The project agreement on behalf of the State Government was signed by Rakesh Sharma, Additional Chief Secretary (ACS) and Bhaskaranand Joshi, Secretary, State Disaster Management Authority (SDMA). 

 

Speaking on the occasion, Mitash said that the project will assist the state government to meet reconstruction needs due to the mid June disaster in 2013. He said that this project will help State to rehabilitate/ construct the damaged roads, bridges, Urban Infrastructures and will also help by improving disaster Preparedness. It will help economic and social recovery in Uttarakhand in the aftermath of the June 2013 disaster, he added. 

 

The Project’s objective is also to improve economic and social conditions in Uttarakhand after the 2013 disaster. The Project will reconstruct damaged sections of state highways and or district roads for a total length of 1,800 kilometers (km) along with 16 damaged bridges, and will also reconstruct sections of roads built in the past with ADB finance (total length 600 km); repair and upgrade water supply facilities in 8–10 towns, water treatment plants, 56-km water pipeline, and about 20 km of urban roads; (iii) reconstruct and revive tourism infrastructure in 5 districts, including 10 trekking routes, eco-trails, rest houses, and public amenities; and (iv) build about 50 helipads, heliports, or helidromes with associated amenities for emergency evacuation and relief operations. The project is expected to be completed by September 30, 2016. 

 

The loan of $200 million from ADB’s ordinary capital resources makes up to 97.56% of the total project cost of $205 million, with the central and state governments providing counterpart finance of $5 million. Uttrakhand being a Special Category State the loan assistance to the State will be on 90:10 basis (90% grant and 10% loan).The loan has a 25-year term, including a five-year grace period with an annual interest rate determined in accordance with ADB's LIBOR-based lending facility. A $2 million technical Assistance on grant basis from ADB will also help Uttrakhand in implementing the Project.