ADB signs $300 million loan agreement with India

NEW DELHI: Multilateral funding agency Asian Development Bank today entered into a $300 million loan agreement with India to help improve road connectivity along key corridors in Chhattisgarh.

"The project has been approved with an objective to improve more than 900 kilometers of state roads, in line with the Chhattisgarh Road Master Plan, involving upgradation of roads sections and strengthening culverts and bridges," a statement from the Finance Ministry said.

The agreement was signed by Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs on behalf of the Government of India and M Teresa Kho, Officer-in -Charge, ADB's India resident mission on behalf of ADB.

"The project targets key corridors in Chhattisgarh and will significantly contribute to improving road connectivity in the state," the statement said quoting Mitash.

The loan will be funded from ADB's ordinary capital resources. It has a principal repayment period of 20 years, and annual interest set in accordance with ADB's LIBOR-based lending facility, it added.

The Government of Chhattisgarh will provide counterpart finance of about USD 128 million to cover the estimated total project cost of USD 428 million.