ADB to lend $222 mn for rural road development in 4 states

The Asian Development Bank will provide a $222 million loan to construct and upgrade over 4,700 kilometres of rural roads in Madhya Pradesh, Orissa, West Bengal and Chattisgarh.

An agreement to this effect was signed here today between the government of India, the ADB and various state governments involved in the programme.

"Asian Development Bank (ADB) will provide a loan of $222.22 million under the Rural Roads Sector II Investment Programme," the Finance Ministry said in a statement after the signing of the agreement today.

"According to the agreement the loan amount would be utilised for construction and upgrading of roads in Madhya Pradesh, Chattisgarh, West Bengal and Orissa," it said.

Under the programme, around 2,443 km of road will be taken up for construction and upgrading in Madhya Pradesh, 1,509 km in Orissa, 443 km in West Bengal and 312 km in Chattisgarh.

This is the last tranche of the $750 million loan promised by the ADB for the Rural Road Sector II investment programme, approved in 2005 as a multi-financing facility for the states of Assam, Chattisgarh, Madhya Pradesh, Orissa and West Bengal, it said.

Ministry of Finance Joint Secretary Anup K Pujari signed the loan agreement on behalf of the Government of India. ADB Country Director Hun Kim signed on behalf of the regional development bank.

Officials from the four states also signed the agreement on behalf of the respective state governments.