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ADB and the Government of India Sign $ 84 Million Loan for Improvement and Expansion of Water Supply in the State of Bihar

Capital Market 

The Government of and The (ADB) signed a $84 million loan for improvement and expansion of water supply in and towns in

The tranche 2 loan is part of the $200 million multi-tranche financing facility (MFF) for the Urban Development Investment Program that was approved by ADB in 2012 to provide and services in four towns in - Bhagalpur, Gaya, Darbhanga and Muzaffarpur.

The Project 2 will improve access to better quality and sustainable water supply, for the people of and towns. It will also promote better water management practices that will result in a citywide coverage with 24-hour uninterrupted supply of treated water of 135 litres per capita per day in both cities, said Shri Sameer Kumar Khare, (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, who signed the loan agreement for Government of

The loan finances will support civil works subprojects and would benefit 1.1 million people in the two project towns with increased coverage of treated water supply by 2021; train 400 urban local body (ULB) staff in the management and operation and maintenance (O&M) of water supply systems, and help ULBs improve technical and of the water supply operations, said Mr Kenichi Yokoyama, of ADB's Resident Mission who signed the agreement for ADB.

The project agreement was signed by Shri Vipin Kumar, Resident on behalf of the

The two towns under the project would achieve the goals or match many of the national averages for urban service delivery performance in India. The investment program will assist ULBs in designing affordable tariffs for O&M cost recovery.

The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB's lending facility based on the interbank offered rate (LIBOR), and a commitment charge of 0.15% per year.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 23 2018. 15:26 IST
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