North Karnataka gets USD 60 million loan from ADB to improve urban services
Updated: Jul 19, 2013 05:19:57pm
New Delhi, Jul 19 (KNN) The Government of India has signed an agreement with the Asian Development Bank (ADB) for a USD 60 million loan for improving urban services and quality of life in North Karnataka.
The agreement is to improve the urban services and strengthen municipal and project management capacity in several towns in North Karnataka, said an official release.
It is the 3rd project under the overall facility of USD 270 million for the North Karnataka Urban Sector Investment Program (NKUSIP).
The third tranche loan under the North Karnataka Urban Sector Investment Program will develop sewerage networks in six towns, and help the rehabilitation and expansion of potable water systems in two more towns. More than 100,000 households will benefit from the improvements.
The agreement was signed by Joint Secretary, Department of Economic Affairs, Ministry of Finance, Nilaya Mitash on behalf of Government of India and Country Director of ADB’s India Resident Mission, Hun Kim on behalf of ADB.
Speaking on the occasion, Mitash said the project would support the State in its endeavour to improve quality of life in towns (Bidar, Davanagere, Dharwad, Gadag-Betegeri, Gulbarga, Jamkhandi, Sindhanur and Yadgir) of North Karnataka and promote economic growth. The project will improve access to better urban services in the eight targeted urban local bodies, he added.
Kim said the project would assist in implementing the State’s reform agenda through the execution of property and utility mapping subprojects using geographic information systems and the establishment of the Heritage Planning Cell. It would also provide assistance to enhance billing and collection efficiencies in program towns.
The loan from the ADB’s Ordinary Capital Resources has a 25-year term including a grace period of five years, commitment charges of 0.15 per cent and an interest rate to be determined in accordance with ADB’s LIBOR-based lending facility.
The Government of Karnataka will provide counterpart funds of USD 41.6 million for a total project investment cost of USD 101.6 million under this tranche.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totalled USD 21.6 billion, including co-financing of USD 8.3 billion. (SD/KNN)
The agreement is to improve the urban services and strengthen municipal and project management capacity in several towns in North Karnataka, said an official release.
It is the 3rd project under the overall facility of USD 270 million for the North Karnataka Urban Sector Investment Program (NKUSIP).
The third tranche loan under the North Karnataka Urban Sector Investment Program will develop sewerage networks in six towns, and help the rehabilitation and expansion of potable water systems in two more towns. More than 100,000 households will benefit from the improvements.
The agreement was signed by Joint Secretary, Department of Economic Affairs, Ministry of Finance, Nilaya Mitash on behalf of Government of India and Country Director of ADB’s India Resident Mission, Hun Kim on behalf of ADB.
Speaking on the occasion, Mitash said the project would support the State in its endeavour to improve quality of life in towns (Bidar, Davanagere, Dharwad, Gadag-Betegeri, Gulbarga, Jamkhandi, Sindhanur and Yadgir) of North Karnataka and promote economic growth. The project will improve access to better urban services in the eight targeted urban local bodies, he added.
Kim said the project would assist in implementing the State’s reform agenda through the execution of property and utility mapping subprojects using geographic information systems and the establishment of the Heritage Planning Cell. It would also provide assistance to enhance billing and collection efficiencies in program towns.
The loan from the ADB’s Ordinary Capital Resources has a 25-year term including a grace period of five years, commitment charges of 0.15 per cent and an interest rate to be determined in accordance with ADB’s LIBOR-based lending facility.
The Government of Karnataka will provide counterpart funds of USD 41.6 million for a total project investment cost of USD 101.6 million under this tranche.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2012, ADB assistance totalled USD 21.6 billion, including co-financing of USD 8.3 billion. (SD/KNN)
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