ADB to give $275 mn loan for rural roads in 5 states

Asian Development Bank will provide USD 275 million loan for improving rural road connectivity in five states in the country.
"The Government of India and ADB today signed a USD 275 million loan agreement to continue improving rural roads in five states including Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal," a Finance Ministry release said.
The loan is the second tranche of a USD 800 million financing facility under the Rural Connectivity Investment Programme. It will help construct 3,693 km of all-weather rural roads in these states, benefiting nearly 1,800 rural habitations.
The pact was signed by Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance and M Teresa Kho, Country Director, ADB.

"The project will help construct all-weather roads in rural areas that will improve access to markets, district headquarters, health and education facilities, and other centres of economic activity," Mitash said.
Ministry of Rural Development (MORD) is the executing agency of the project at the central level, while the state governments are charged with overall implementation at the state level for a period of 43 months.

The second phase of project is expected to be completed in June, 2017.
"Weak rural connectivity affects economic growth in rural areas and has a strong link to poverty, particularly in these five states. The second stage of this loan will invest in physical infrastructure, improve road design, road safety, and asset management," Kho said.

The central government will provide counterpart funds of USD 81.56 million for a total second tranche project investment cost of USD 356.56 million, it added.