$100 mln ADB loan for infrastructure development in Uttarakhand

NEW DELHI: Government today signed a $ 100 million (around Rs 540 crore) agreement with the Asian Development Bank ( ADB) for supporting urban and infrastructure development in Uttarakhand.

"Government ... today signed an agreement for a $ 100 million loan with Asian Development Bank (ADB) as second tranche of Uttarakhand Urban Sector Development Investment Programme," an official release said.

The loan agreement will support rehabilitation and expansion of basic urban infrastructure in five major urban centres of Uttarakhand and ensure sustainable municipal service delivery, it added.

The project will supplement the urban infrastructure programme already initiated under the first tranche in Dehradun, Haridwar and Nainital and will be extended to cover in addition Haldwani, Roorkee and Ramnagar towns specially for improving the water supply infrastructure that will benefit about 800,000 residents.

A comprehensive sewerage system will also be developed under the project, which will provide improved sanitation facilities to about 100,000 residents in Roorkee.

"The project will improve the quality life and employment opportunities for the people living in five project towns. It will also improve the ability of participating institutions to manage sector reforms and deliver better services," ADB Country Director Hun Kim said during the signing of the agreement.

The second tranche of loan has a 25-year term including a grace period of five years, commitment charges of 0.15 per cent. Its interest rate will be on ADB's LIBOR-based lending facility.

The Government will provide counterpart funds of $ 42.86 million for a total second tranche project investment cost of $ 142.86 million, the statement added.