Financial service provider Asian Development Bank approved a $500 million loan that would improve rural road connectivity in five states in the country. The five states benefiting from this initiative are Assam, West Bengal, Madhya Pradesh, Chhattisgarh, and Odisha. In addition to funding the development of roads, the bank will also oversee its protection and sustainability for a considerable period of time.
This is a multi-tranche financing facility (MFF) by the bank, and it has been approved by its board of directors. The project titled ‘Second Rural Connectivity Investment Programme’ will involve the construction of about 12,000 kilometers of roads in these five states. Moreover, the programme will also support the state governments in the maintenance of these roads.
The bank will invest $250 million in the first tranche, which will begin coming December. The first tranche will involve the construction of more than 6,000 kilometers of roads in these five states. The second tranche will involve funding of the same amount, and this will begin in the third quarter of 2019.
This represents second such funding in these five states. The ‘First Rural Connectivity Investment Programme’ witnessed the construction of about 9,000 kilometers for an investment of $800 million in these five states. The all-weather roads constructed under these programs will improve connectivity in the rural areas and ensure better transportation in various areas across these five states.