The government of India and the Asian Development Bank have signed a US$220 million loan agreement for the development of State Highways in Rajasthan.
The finance will be used to upgrade about 2,000 kilometers of state highways and major district road and is expected to drive breakbulk demand in the region and improve longer-term logistics in the state.
“ADB will finance part of the construction costs for the annuity-based PPP concessions and engineering procurement construction contracts, enhance the stability of contract regime, and ensure good governance during project implementation,” said Kenichi Yokoyama, country director of ADB’s India Resident Mission.
The first tranche of the loan will improve about 1,000 kilometers of state highways and major district roads and will have a 25-year term, including a grace period of eight years.
Photo: The funding will support road networks in Rajasthan. Credit: Wikimedia