ADB, India Sign USD 490 Million Loan for (PPP) Project to Upgrade Madhya Pradesh Roads

ADB, India Sign USD 490 Million Loan for (PPP) Project to Upgrade Madhya Pradesh Roads

ADB, India Sign USD 490 Million Loan for (PPP) Project to Upgrade Madhya Pradesh Roads

The Asian Development Bank (ADB) and the Government of India signed a $490 million loan for public-private partnership (PPP) project to upgrade about 1,600 km of state highways and major district roads (MDRs) from single-lane to two-lane widths in the state of Madhya Pradesh. An additional $286 million investment will be mobilised through private sector participation under the PPP modality.

The MoU Signed by:

The signatories to the loan agreement were Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, and Mr Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.

Benefits:

The project will upgrade 750 km of state highways and 850 km of MDRs to two-lane and all-weather standards with road safety features. It will also develop an e-maintenance system, which can record defects or required maintenance, along with a training program to develop capacity on contract implementation and project finance in Madhya Pradesh Road Development Corporation. Since 2002, ADB has provided the state government with five loans to develop its road network, improving about 7,300 km of roads or about 11% of the total network.

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