ADB clears $300-million loan for upgradation of UP roads

Multi-lateral funding agency Asian Development Bank (ADB) has approved a project loan of $300 million (about Rs 2,000 crore) for upgradation of over 400 kilometre (km) of major district roads in Uttar Pradesh.

The project supports the state government's core road network improvement master plan, under which the government plans to improve the roads through a combination of state, private and multilateral resources, ADB said in a statement.

The loan, which is ADB's first road sector assistance in Uttar Pradesh, will be used to improve around 430 km of major district roads, upgrading them to standard design widths, suitable for use in all types of weather and with safety features, including widened and strengthened culverts and bridges.

The Manila-based lender said that a key element of the project is the inclusion of five-year performance-based maintenance contracts to ensure ongoing high-standard upkeep of the roads.

Uttar Pradesh is the country's most populous state and has the largest rural population, along with widely dispersed industrial centres, making its total road network of around 3,00,000 km crucial for its economy and development.

However, significant stretches have inadequate widths and poor surfacing, leading to higher economic costs and making them hazard-prone.

Along with ADB's loan, the government of Uttar Pradesh will provide support of $128 million for the project.