ADB pledges USD 220mn for improving road connectivity in Raj

Asian Development Bank (ADB) today committed USD 220 million for improving road connectivity as well as transport efficiency and safety on state highways of Rajasthan.

The loan is the first tranche of the USD 500 million Rajasthan State Highways Investment Programme, approved by the ADB Board in May this year, that will upgrade about 2,000 kilometers of state highways and major district roads to two- lane or intermediate-lane standards to meet road safety requirements, the ADB said in a statement.

Commenting on the loan agreement, Minister of State for Finance Arjun Ram Meghwal said the ADB and the government will together strengthen the transportation efficiency of the state highway.

It will also enhance the capacity of the state public works department in the areas of road asset management, road safety and project management.

The first tranche of loan will improve about 1,000 kilometers of state highways and major district roads.

It will have a 25-year term, including a grace period of 8 years, and carry an annual interest rate determined in accordance with ADB s London interbank offered rate-based (LIBOR) lending facility.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)