New Delhi: The Asian Development Bank (ADB) on Thursday entered into a $250 million loan agreement with India as part of its infrastructure financing project.
This is the second tranche of loan for the ongoing Second India Infrastructure Project Financing Facility, originally approved in 2009.
“Government of India, ADB and the India Infrastructure Finance Company Ltd (IIFCL) today signed a USD 250 million loan agreement for tranche two of the ongoing Second India Infrastructure Project Financing Facility,” a statement from the finance ministry said.
The Second India Infrastructure Project Financing Facility aims to stimulate infrastructure development through public-private-partnership investments in the country.
In 2009, ADB had agreed to provide a $700 million multi-tranche financing facility to help IIFCL provide long-term funding for infrastructure development.
The first tranche of $210 million was earmarked to finance three subprojects for improving roads and highways in Madhya Pradesh, Punjab, Haryana, Himachal Pradesh and Delhi NCR, besides partially funding a power project in Kutch district in Gujarat.
“The signing of the second tranche will enable ADB to fulfill its commitment to fund 8-10 subprojects to expand the road network in Gujarat, Maharashtra and Rajasthan by a further 906 km, and to provide additional funding for the Gujarat power project,” the statement said.
ADB had previously provided a $500 million loan to IIFCL for the First Infrastructure Project Financing Facility in 2007. Of the loan, about $381 million was disbursed for 27 road subprojects and $89 million for two international airport subprojects in Delhi and Mumbai.
Meanwhile, the multilateral agency also signed an agreement with Rajasthan for a $63 million loan for urban development programmes in the state.
It also entered into an agreement to provide a $78 million loan as the first tranche for the National Capital Region Urban Infrastructure Financing Facility.