India signed agreement with Asian Development Bank for 60 million Dollars loan for NKUSIP

The Government of Karnataka is dedicated to provide counterpart funds of 41.6 million dollars for a total project investment cost of 101.6 million dollars under this tranche.
The Government of India signed an agreement with Asian Development Bank (ADB) on 19 July 2013 for a 60 million dollars loan as to improve urban services and to strengthen municipal and project management capacity in several towns in north Karnataka.

Basically the agreement is for the third project under the overall facility of 270 million dollars for the North Karnataka Urban Sector Investment Program (NKUSIP).

Provisions under North Karnataka Urban Sector Investment Program (NKUSIP)

The third part of the loan under the North Karnataka Urban Sector Investment Program will develop sewerage networks in six towns, and help the rehabilitation and expansion of potable water systems in two more towns. More than 100000 households will benefit from the improvements.

• The project will support the State in its endeavor to improve quality of life in towns (Bidar, Davanagere, Dharwad, Gadag-Betegeri, Gulbarga, Jamkhandi, Sindhanur and Yadgir) in North Karnataka and promote economic growth.
• The project will improve access to better urban services in the eight targeted urban local bodies, he added.
• The project is going to assist implementing the State’s reform agenda through the execution of property and utility mapping subprojects using geographic information systems and the establishment of the Heritage Planning Cell. He said that it will also provide assistance to enhance billing and collection efficiencies in program towns.

The loan taken from ADB’s Ordinary Capital Resources has a 25-year term including a grace period of five years, commitment charges of 0.15 percent and an interest rate to be determined in accordance with ADB’s LIBOR-based lending facility.

The Government of Karnataka is dedicated to provide counterpart funds of 41.6 million dollars for a total project investment cost of 101.6 million dollars under this tranche.

About Asian Development Bank

Asian Development Bank was established in 1966, and is owned by 67 members – 48 from the region. In 2012, ADB assistance totaled 21.6 billion dollars including co-financing of 8.3 billion dollars.
ADB, which is based in Manila, is dedicated for the reduction in poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth.