$315 mn ADB loan for Karnataka road projects

July 20th, 2011 - 11:54 pm ICT by IANS  

New Delhi, July 20 (IANS) The Asian Development Bank (ADB) is giving a $315 million loan for improving state highways in Karnataka. This is the first loan assistance from ADB to Karnataka for upgrading its roads.

The loan will upgrade about 615 km of state highways identified from the core road network of the state. It will also strengthen the capacity of Karnataka’s public works department (PWD) to develop, operate, and maintain the state road network.

“Road improvement works will include the upgrading of existing roads to two lane, construction of bypasses, strengthening of culverts and bridges, and construction of new bridges and drainage structures,” said an official statement here.

A tripartite agreement was signed for the loan Wednesday. Venu Rajamony, joint secretary (multilateral institutions) at the union finance ministry; Prodyut Dutt, officer-in-charge, ADB’s India mission and Subhash Chandra Khuntia, Karnataka’s principal secretary, public works, ports and inland water transport, signed the deal.

“This project will not only ease the stress on physical infrastructure that has been placed in recent years, but also contribute to capacity building and enable transfer of best practices in asset management,” Rajamony said after signing.

India, a founding member of the bank, has so far received 144 loans from ADB amounting to $23.25 billion. It has also received 313 technical assistance projects amounting to $232.5 million on cumulative basis so far. India received the first ADB assistance in 1986.

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