ADB to support upgrade of roads in NE
Updated: Feb 18, 2014 03:54:54pm
New Delhi, Feb 18 (KNN) Government of India and Asian Development Bank have signed a USD 125.2 million loan that will contribute to upgrading of roads in the north eastern region of the country.
Signatories to the loan signed here yesterday were Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, Nilaya Mitash and Country Director (INRM), on behalf of ADB, M Teresa Kho.
The project is expected to be completed by 30 September 2019 with improvements to more than 236 km of roads in Assam, Manipur, Mizoram and Tripura states, official data said.
The North Eastern States Roads Investment Program is designed to reconstruct roads in the north eastern states of Assam, Manipur, Mizoram, Tripura, Meghalaya, and Sikkim, thereby reducing their isolation and opening up badly needed growth and development opportunities. Improvements include widening existing sections of roads, strengthening pavements, raising embankments, and providing permanent structures at river crossings.
Speaking on the occasion, Kho said that upgrade of the roads will improve mobility and accessibility for many communities which will help provide new economic opportunities, boost growth and reduce poverty.
Better roads in the region, Mitash said will significantly improve connectivity that will not only help people but also improve investment in the region.
The loan agreement for the first phase of the project, covering around 200 kilometres of state roads in the states of Assam, Meghalaya and Sikkim, was signed in July 2012.
The second tranche from the ordinary capital resources of ADB has a 25-year term including a grace period of 5 years, 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 loan of USD 125.2 million from ADB’s ordinary capital resources makes up to 79.7 per cent of the total project cost of almost USD 157.2 million, with the central and state governments providing counterpart finance of USD 32 million. (KNN/ES)
Signatories to the loan signed here yesterday were Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, Nilaya Mitash and Country Director (INRM), on behalf of ADB, M Teresa Kho.
The project is expected to be completed by 30 September 2019 with improvements to more than 236 km of roads in Assam, Manipur, Mizoram and Tripura states, official data said.
The North Eastern States Roads Investment Program is designed to reconstruct roads in the north eastern states of Assam, Manipur, Mizoram, Tripura, Meghalaya, and Sikkim, thereby reducing their isolation and opening up badly needed growth and development opportunities. Improvements include widening existing sections of roads, strengthening pavements, raising embankments, and providing permanent structures at river crossings.
Speaking on the occasion, Kho said that upgrade of the roads will improve mobility and accessibility for many communities which will help provide new economic opportunities, boost growth and reduce poverty.
Better roads in the region, Mitash said will significantly improve connectivity that will not only help people but also improve investment in the region.
The loan agreement for the first phase of the project, covering around 200 kilometres of state roads in the states of Assam, Meghalaya and Sikkim, was signed in July 2012.
The second tranche from the ordinary capital resources of ADB has a 25-year term including a grace period of 5 years, 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 loan of USD 125.2 million from ADB’s ordinary capital resources makes up to 79.7 per cent of the total project cost of almost USD 157.2 million, with the central and state governments providing counterpart finance of USD 32 million. (KNN/ES)
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