JICA signs loan agreement for two road projects

The Japan International Cooperation Agency (JICA) and the Government of India have signed official development assistance (ODA) loan agreements for Tranche II for the Mumbai Trans Harbour Link (MTHL) project and the North-East Road Network Connectivity Improvement Project (Phase IV). Of the total loan amount, funds worth Rs 42.62 billion (JPY 66.91 billion) have been allocated for Tranche II of the MTHL project while funds worth Rs 9.4 billion (JPY 14.93 billion) have been allocated for Phase IV of the North-East Road Network Connectivity Improvement Project. The loan has been sanctioned at an annual interest rate of yen-Libor plus 85 basis points for the MTHL project and at 1.15 per cent for the North-East Road Improvement Project. Besides, the annual interest rate for consulting services is 0.01 per cent. The repayment period for the loan will be 30 years with a grace period of 10 years.