ADB to give $275 mn loan for urban services ugrade in MP

The Indian government has signed an agreement with the Asian Development Bank whereby the lender will provide a $275 million loan to upgrade piped water supply and municipal services in 64 small towns in Madhya Pradesh.

"The Asian Development Bank (ADB) and the Government of India signed a $275 million loan on June 19, 2017, for improving urban services in 64 small towns in the State of Madhya Pradesh," a Finance Ministry release here said on Tuesday.

The state government will provide $124 million as counterpart support for the project, which is estimated to be completed by June 2022, it said.

"The project will develop sustainable, inclusive, and climate-resilient water supply in 64 small and medium-sized towns, and integrated storm water and sewerage infrastructure in two heritage towns of Khajuraho and Rajnagar," it added.

While the loan agreement was signed by Finance Ministry's Joint Secretary Raj Kumar and ADB Deputy Country Director L.B. Sondjaja, the project agreement was inked by Madhya Pradesh Urban Development Secretary Vivek Aggarwal.

"Madhya Pradesh needs substantial investments to keep pace with its rapid urbanisation. Sustainable piped water supply will foster inclusiveness by giving more of the state's' population easier access to basic services, especially for women and girls," Raj Kumar said in the statement.

"A key element of the project is the use of design-build-operate contracts including 10-years operation and maintenance to ensure better sustainability of the water service operation and financial viability," Sondjaja said.

Urban population in the sprawling central Indian state is expected to increase from 28 per cent in 2016 to 35 per cent by 2026, ADB said in a release.

--IANS

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