New Delhi: Asian Development Bank will provide USD 350 million loan to government for upgradation of roads in Madhya Pradesh.
"The Government of India and the Asian Development Bank today signed an agreement for a USD 350 million loan to upgrade district roads in Madhya Pradesh," ADB release said.
The Madhya Pradesh District Connectivity Sector project will improve about 1,600 kilometers of major district roads in the state through lane widening, surface improvements, and strengthening of culverts and bridges.
"The project will lead to improved road transport connectivity in Madhya Pradesh through reconstruction and rehabilitation of major district roads to all-weather standards," said Tarun Bajaj, Joint Secretary, Ministry of Finance.
The project will also help MP meet a substantial part of its financing requirements for improving road infrastructure, he added.
The project includes forming State Highways Fund on PPP model, toll plus annuity on hybrid model of Build Operate Transfer mode & BOT (Annuity), Border Checkposts and PPP model to increase revenue and control overloading and damage.
"The loan is ADB's first in the district roads sector in India, and will address a neglected part of ongoing road network upgrades in the country for these secondary roads, which provide a key link between rural roads and state highways," said Teresa Kho, Country Director, ADB India Resident Mission.
It envisages five-year performance based maintenance contracts to ensure higher standards and maintenance after completion of initial work.
The project roads will also be covered under an accident response system being developed by state with ADB's prior assistance.
The loan will cover 70 percent of total project cost of USD 500 million, while Madhya Pradesh will provide balance of USD 150 million.
The project is expected to be completed by April 2018.
Manila based multilateral funding agency, ADB works for projects related with poverty reduction, infrastructure development and growth in Asia and the Pacific.
