India and ADB sign USD 250 million loan to improve rural connectivity in five states

India and Asian Development Bank (ADB) on 30 January 2018 signed USD 250 million loan to finance the construction of 6254 kilometres all-weather rural roads in five states- Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal.

The loan agreement was signed by Sameer Kumar, Joint Secretary (Multilateral Institutions), Department of Economic Affairs in the Union Ministry of Finance and by Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.

Highlights of the project
• Under the project, about 2000 technical personnel would be imparted training on road safety and maintenance.

• It will support the government’s drive for innovative approaches to reduce costs, conserve non-renewable natural resources, and promote the use of waste materials in rural road construction.

• The road maintenance will be ensured through the provision of a 5-year post-construction maintenance in each civil works contract.

• The road designs will take into account the climate risks with measures such as greater elevation of road embankments, slope protection, and better drainage in flood-prone areas.

• These five states will be provided with the rural connectivity under the Prime Minister’s Rural Roads Program (PMGSY).

• This loan is part of the USD 500 million Second Rural Connectivity Investment Program for India approved by the ADB Board in December 2017.

• The program is aimed at improving rural connectivity, facilitating safer and more efficient access to livelihood and socio-economic opportunities for rural communities through improvements to about 12000 kilometres rural roads across the 5 States.

This investment program is an addition to the USD 800 million ADB-financed first Rural Connectivity Investment Program in 2012 that added about 9000 kilometres of all-weather rural roads in the same States.

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