MP gets $350 mn loan from ADB to upgrade district roads
Asian Development Bank will provide USD 350 million loan assistance for upgradation of district roads in Madhya Pradesh. The project will upgrade 1,600 kilometres of major district roads in the state.india Updated: Nov 20, 2014 00:06 IST
Asian Development Bank (ADB) will provide USD 350 million loan assistance for upgradation of district roads in Madhya Pradesh.
"The Asian Development Bank has approved a USD 350 million loan to upgrade district roads in Madhya Pradesh for a project which will tackle an important link in road improvements," ABD said in a statement.
The project will upgrade 1,600 kilometres of major district roads in the state through lane widening, surface improvements, and strengthening of culverts and bridges.
This is to help cut travel time, improve traffic flow and road safety, and provide better access to markets and social services for poor and remote communities, the statement added.
"The loan, which is ADB's first in the district roads sector in India, will address a neglected part of ongoing road network upgrades, with these secondary roads providing a key link between rural roads and state highways," said Ravi Peri, principal transport specialist, transport and communications division, South Asia Department, ADB.
As part of the project, 5-year performance-based maintenance contracts will be taken up along with construction contracts to ensure high standard of road construction and good maintainence, ABD said. It said project roads will also be covered under an accident response system, being developed by the state and ABD.
"The state is pioneering this initiative to create insurance links that will finance the immediate hospital treatment costs for road accident victims," the statement said.
ADB's loan will cover 70% of the total project cost of USD 500 million, with the MP government providing the balance of USD 150 million. The project is expected to be completed by April, 2018.
ADB, the Manila-based multi-lateral funding agency, provided assistance worth USD 21 billion, including co-financing of USD 6.6 billion, in 2013.