Government signs $273 million loan agreement with ADB for rural roads

GUWAHATI: The government has signed a $273 million loan agreement with the Asian Development Bank ( ADB) to improve rural roads in Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal.

This is the third and last tranche of the $800 million financing facility being provided under the Rural Connectivity Investment programme. The funds will help build over 6,000 km of all-weather roads in the five states.

The loan agreement was signed between S Selvakumar, joint secretary (bilateral cooperation), department of economic affairs, and Teresa Kho, country director for ADB.

According to an official statement, the programme has supported the government’s objectives under the Pradhan Mantri Gram Sadak Yojana by providing all-weather road connectivity in selected rural areas in the states.

Selvakumar said this will improve access to markets, district headquarters and health and education centres, among other facilities.

According to Kho, the loan will be used to make further investments as well as to support improved road design, road safety, asset management measures and training, with women actively involved in all aspects.

The rural development ministry is the executing agency of the project at the central level while the five state governments have been entrusted with overall implementation at the state level. The third tranche is expected to be completed by December 2017.