Govt, ADB sign $350 million loan for road development in Madhya Pradesh
Along with ADB’s loan, the Government of Madhya Pradesh will provide counterpart support of $150 million.
The Asian Development Bank (ADB) and the Government of India signed on Wednesday a $350 million loan for improving about 1,500 kilometers of major district roads in Madhya Pradesh in line with the State’s Road Development Plan.
Along with ADB’s loan, the Government of Madhya Pradesh will provide counterpart support of $150 million. The project will run for almost four years with an expected completion date of March 2021.
The signatories to the Loan Agreement for the Madhya Pradesh District Connectivity Sector project were Raj Kumar, Joint Secretary (Multilateral Institutions), Department of Economic Affairs in the Ministry of Finance, Government of India who signed on behalf of the Government of India, and L B Sondjaja, Deputy Country Director of ADB’s India Resident Mission, who signed for ADB. The Project Agreement was signed by Pramod Agrawal, Principal Secretary on behalf of Government of Madhya Pradesh and by Piyush Kumar Chaturvedi, General Manager on behalf of Madhya Pradesh Road Development Corporation (MPRDC).
Sondjaja said that ADB’s continued participation in the State’s Road Development, through this project, will help further the state-wide road improvement program, stabilize and deepen institutional capacity, and improve road safety and accident response initiatives. He said that a key element of the project is the use of concrete pavements to ensure better ride quality and reduce lifecycle maintenance costs.
The project will involve upgrading roads with concrete pavements, strengthening culverts and bridges, and maintaining the improved road assets for a period of five years after construction, on a performance based payment format. The project will also develop and introduce a cashless accident victim treatment facility in the state, and improve the accident response system.