Union Government, ADB sign loan agreements worth USD 574 million for various projects in India
The ADB and the Union Government signed a USD 105 million loan agreement to continue financing the transmission system upgrades in Himachal Pradesh for increased supply of hydropower. This tranche 3 loan is part of the USD 350 million multi-tranche financing facility (MFF) for Himachal Pradesh Clean Energy Transmission Investment Program.
The Union Government and the Asian Development Bank (ADB) on November 16, 2018 signed loans agreements worth USD 574 million for various projects in India, including hydropower transmission in Himachal Pradesh; support to IIFCL in India; and for water and sanitation services in Tamil Nadu.
Established in 1966, the ADB is committed to achieve a prosperous, inclusive, resilient and sustainable Asia and the Pacific. It is owned by 67 members with 48 from the Asia and the Pacific region.
USD 105 million loan agreement to support hydropower transmission in Himachal Pradesh
• The ADB and the Union Government signed a USD 105 million loan agreement to continue financing the transmission system upgrades in Himachal Pradesh for increased supply of hydropower.
• This tranche 3 loan is part of the USD 350 million multi-tranche financing facility (MFF) for Himachal Pradesh Clean Energy Transmission Investment Program approved by the ADB Board in September 2011.
• The program is aimed at developing and expanding the transmission network to evacuate clean and renewable power generated from the State’s hydropower sources to load centers.
• It also supports the institutional capacity development of the state transmission utility, Himachal Pradesh Power Transmission Corporation Limited (HPPTCL), as the executing agency for the project.
• The loan will have a 25-year term, including a grace period of 5 years.
USD 300 million loan agreement to support IIFCL in India
• The ADB and Union Government signed a USD 300 million Loan Agreement to support lending by India Infrastructure Finance Company Limited (IIFCL).
• The ADB funding is expected to fund at least 13 sub-projects through IIFCL, including roads and renewable power generation, under the last tranche.
• The Project supports the renewed effort of the Government in accelerating infrastructure growth through increased Private Sector investment.
• The will help catalyse the financial closing of USD 2.4 billion in investments.
• In addition, the attached technical assistance will support IIFCL capacity development and will focus on IIFCL’s financial management and social and environmental safeguards.
USD 169 million loan agreement to provide water and sanitation services in Tamil Nadu
• The ADB and Union Government signed USD 169 million loan as the First Tranche of a USD 500 million multi-tranche financing to develop climate-resilient water supply, sewerage, and drainage infrastructure in at least 10 cities of Tamil Nadu.
• The program will develop climate-resilient sewerage collection and treatment and drainage systems in 10 cities, and install the country’s first solar-powered sewage treatment plant.
• Introduction of smart water management systems will help reduce non-revenue water and strengthen operational efficiency.
• Around 4 million people will benefit from piped water and sewerage connections and improved drainage.
• The program will boost institutional capacity, public awareness, and urban governance as part of a comprehensive approach for developing livable cities.
• The First Tranche Loan will target the cities of Chennai, Coimbatore, Rajapalayam, Tiruchirappalli, Tirunelveli, and Vellore.