ADB to lend $470 mn for projects in Bihar, Maharashtra

ADB to lend $470 mn for projects in Bihar, Maharashtra

New Delhi: The Asian Development Bank will extend loans worth $300 million to develop roads in Bihar and another $170 million for modernising the horticulture industry in the state and Maharashtra.

Both the plans have been approved by ADB’s board of directors.

The multilateral lending agency will offer $300 million in loans for the Bihar State Highways II project, which would build or upgrade about 356 kilometres of state highways.

In a statement today, ADB said the project would upgrade targetted highways into two-lane roads, build new drainage systems and bridges and strengthen culverts and existing bridges.

The lender would extend technical assistance of $1 million to help the Bihar State Road Development Corporation.

The ADB noted the loan would account for about 71% of the total project cost of $424 million. The Bihar government would provide counterpart funds of $124 million.

Separately, the Philippines-based entity would provide a $170 million multitudinous financing facility to help Bihar and Maharashtra modernise their horticulture industries.

“The programme will finance improvements to facilities such as cooling, packaging and storage sheds and drainage and waste management systems, as well as linking up essential infrastructure, such as power, water and farm-to-market access roads," ADB said in a separate statement today.

According to the statement, this investment initiative would pioneer the mainstreaming of public-private partnerships that would result in higher value for horticulture products in select regions of Bihar and Maharashtra.

“The total investment cost for the programme is $212.2 million, with the government of India providing counterpart finance of $42.2 million," the ADB added.