ADB approves $350 mn for Madhya Pradesh roads

New Delhi: Asian Development Bank (ADB) will provide $350 million loan assistance for upgradation of
district roads in Madhya Pradesh.

“The Asian Development Bank has approved a $350 million loan to upgrade district roads in Madhya Pradesh for a project which will tackle an important link in road improvements,” ABD said in a statement.[caption id=“attachment_108956” align=“alignleft” width=“380”]  Representational image. [/caption]

The project will upgrade 1,600 kilometres of major district roads in the state through lane widening, surface improvements, and strengthening of culverts and bridges.

This is to help cut travel times, improve traffic flow and road safety, and provide better access to markets and social services for poor and remote communities, the statement said.

More from Economy

Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates?

“The loan, which is ADB’s first in the district roads sector in India, will address a neglected part of ongoing road network upgrades, with these secondary roads providing a key link between rural roads and state highways,” said Ravi Peri,
Principal Transport Specialist, Transport and Communications Division, South Asia Department, ADB.

As part of the project, a five-year performance based maintenance contracts will be taken up along with construction contracts to ensure high standard of road construction and good maintenance, ABD said.

It said project roads will also be covered under an accident response system, being developed by the state and ABD.

“The state is pioneering this initiative to create insurance links that will finance the immediate hospital treatment costs for road accident victims,” the statement said.

ADB’s loan will cover 70 percent of the total project cost of $500 million, with the state government of Madhya Pradesh providing the balance of $150 million.

The project is expected to be completed by April 2018.

ADB, the Manila-based multi-lateral funding agency provided assistance worth $21 billion, including co-financing of $6.6 billion, in 2013.

PTI