Union Government signed Loan Agreement with Asian Development Bank

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Who: Loan agreement worth 273 million US dollar
What: Signed between Union Government and ADB
When: 9 November 2015

The Union Government on 9 November 2015 signed 273 million US dollar loan agreement with Asian Development Bank (ADB) to continue improving rural roads in the States of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal.

The loan agreement was signed by S Selvakumar, Joint Secretary (Bilateral Cooperation), Department of Economic Affairs and Teresa Kho, Country Director of ADB.

The loan represents the third tranche, which is also the last tranche of the 800 million US dollars financing facility under the Rural Connectivity Investment Program. The loan will help in constructing over 6000 kilometers of all-weather rural roads and will benefit over 4200 rural habitations.

The Union Ministry of Rural Development (MORD) is the executing agency of the project at the central level, while the State Governments of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal will be handling the overall implementation at the respective State level.

The third tranche is expected to be completed by December 2017. The implementing agencies at the State level will be the respective State Rural Roads Development Agencies.

This loan will also be used to make further investments as well as supporting improved road design, road safety and asset management measures and training with women actively involved in all aspects.