ADB to lend $ 60 million for urban services in Karnataka

NEW DELHI: The government today signed an agreement with the Asian Development Bank for a $ 60 million loan to improve urban services in towns in North Karnataka.

The agreement is for the third project under the overall facility of $ 270 million for the North Karnataka Urban Sector Investment Program (NKUSIP), the Finance Ministry said in a statement.

"The third tranche loan under the NKUSIP 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," it added.

The project is meant for Bidar, Davanagere, Dharwad, Gadag-Betegeri, Gulbarga, Jamkhandi, Sindhanur and Yadgir.

It will promote economic growth and improve access to better urban services in the eight targeted urban local bodies, the release added.

The ADB loan has a 25-year term, including a grace period of five years. The state government will provide counterpart funds of $ 41.6 million for a total project investment cost of $ 101.6 million under this tranche.