Government signs loan and grant agreement with ADB

The Government of India and the Asian Development Bank (ADB) on Wednesday signed a loan and grant agreement for the Karnataka Integrated Urban Water Management Investment Program (KIUWMIP) to improve water resource management in the Upper Tungabhadra sub-basin of Karnataka.

The USD 75 million loan, which has a 25-year term, including a grace period of five years, will help expand and upgrade urban water supply and sanitation infrastructure in Byadagi, Davanagere and Harihar towns of Karnataka.

The agreement also includes a USD 1.8 million grant.

The agreement was signed by Joint Secretary in Department of Economic Affairs at the Finance Ministry, Tarun Bajaj.

Speaking on the occasion, Bajaj said he is happy to note that this project will help increase water treatment capacity by 15,000 cubic meters per day.

Meanwhile, Officer-in-Charge of ADB's India Resident Mission, Rajeev Singh, said that the project will pioneer the establishment of Urban Local Bodies Incentive Fund to assist towns in implementing reforms and mainstreaming the use of performance-based contracts in ensuring continuous water services.