ADB approves $500 million loan for rural roads in five states

ADB has approved a multi-tranche financing facility worth $500 million for the Second Rural Connectivity Investment Programme to improve rural roads in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha and West Bengal. Under the project, ADB will undertake the construction and upgradation of 12,000 km of rural roads in these states. In the first tranche, ADB is expected to invest $250 million in December 2017 for the construction of 6,254 km all-weather rural roads. Further, a second tranche of the same amount is expected to be granted by October 2019. In addition, ADB will also provide a technical assistance (TA) grant worth $0.5 million from its Technical Assistance Special Fund to strengthen the sustainability of rural road assets, and increase disaster resilience and innovation in rural road development. The TA is due for completion in December 2021, with the investment programme expected to be completed by the end of 2023.