ADB approves $125 mn loan to upgrade NE roads
The Government of India has signed a $125 million loan agreement with Asian Development Bank (ADB). The amount would be utilized for upgrading of roads in North Eastern states.’
The North Eastern States Roads Investment Program’, as it is known, is designed to reconstruct roads in the North Eastern states of Assam, Manipur, Mizoram, Tripura, Meghalaya, and Sikkim, thereby cutting on the region’s isolation and opening it up for growth and development opportunities. Improvements include widening existing sections of roads, strengthening pavements, raising embankments, and providing permanent structures at river crossings.
The agreement was signed by Nilaya Mitash, joint secretary of department of economic affairs, Union ministry of finance, and M Teresa Kho, country director of ADB, a press release said.
The project is expected to improve more than 236 km of roads in Assam, Manipur, Mizoram and Tripura and is expected to be completed by 30 September 2019.
The loan agreement for the first phase of the project was signed in July 2012. It covered around 200 Kms of state roads in the states of Assam, Meghalaya and Sikkim.
There is a 25-year term including a grace period of 5 years for the second tranche from the ordinary capital resources of ADB. Additional charges are a commitment charge of 0.15 per cent per year (on un-drawn balance), maturity premium of 0.10 per cent (by straight line method) and interest rate to be determined in accordance with ADB’s LIBOR-based lending facility. The cost of total project is around $157.2 million; out of which ADB is granting a loan of $125.2 million which makes up to 79.7 per cent of the total project cost and the central and state governments providing counterpart finance of $32 million.
Source: Business Standard
ADB, ADB loan to India, Asian Development Bank, Assam, development opportunities, Government of India, M Teresa Kho, Manipur, Meghalaya, Mizoram, Nilaya Mitash, North Eastern States, North Eastern states of India, permanent structures, raising embankments, river crossings, Sikkim, strengthening pavements, Tripura, Union ministry of finance, upgrade roads in North Eastern states, widening roads
