ADB loan to improve road connectivity in NER
Source: The Sangai Express / Agencies
New Delhi, March 26 2015:
The Asian Development Bank (ADB) and the Government of India today signed a $300 million loan aimed at improving road connectivity and increasing domestic and regional trade along the North Bengal-Northeastern Region international trade corridor.
The project is to build about 500 km of roads in the North Bengal and North Eastern Region of India, helping to resolve the constraint of 'last-mile' connectivity between the in-country trunk road network and neighboring countries said a release issued by Indian resident mission, in New Delhi today.
Tarun Bajaj, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance and A D James, Deputy Secretary, Ministry of Road Transport and Highways, signed for the Government of India, O Nabakishore, Additional Chief Secretary (Works), signed for the Government of Manipur, while Shaktibrata Basu, Chief Engineer, Public Works Department, signed for the Government of West Bengal.
M Teresa Kho, Country Director of ADB's India Resident Mission, signed the loan agreement on behalf of ADB.
He said "Improvements in road connectivity in North Bengal and the North Eastern Region will enable efficient and safe transport within India and regionally with other SASEC member countries.
According to Tarun Bajaj this will pave the way for India and other South Asian countries to link to Myanmar, and further afield with the member countries of the Association of Southeast Asian Nations.
"The project area under the investment program is a key strategic thoroughfare integrating the regions of South and Southeast Asia, with the corridor connecting the countries of Bangladesh, Bhutan, Myanmar, and Nepal," said Bajaj.
The loan is the first under a $500 million multi-tranche South Asian Subregional Economic Cooperation (SASEC) Road Connectivity Investment Program approved by ADB in 2014.The program was endorsed by the SASEC trade facilitation and transport working group at an earlier meeting held in Singapore in October 2013 .
The tranche 1 project will construct two National Highways totaling about 150 km in West Bengal and State roads totalling about 180 km in Manipur, extending to Myanmar.
The project is expected to be completed by December 31, 2021 .
ADB's loan of $300 million makes up nearly 71% of the total project cost of almost $425 million, with the Central and State Governments providing counterpart finance of about $ 125 million.
The loan has a 25-year term, including a five-year grace period with an annual interest rate determined in accordance with ADB's LIBOR-based lending facility.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration.
Established in 1966, it is owned by 67 members�48 from the region.