The Asian Development Bank (ADB) and the Government of India on Monday signed a USD 220 million loan agreement for augmenting connectivity, achieving transport efficiency and safety on the state highways in Rajasthan.
The loan is the first tranche of the USD 500 million, Rajasthan State Highways Investment Program, approved by the ADB Board in May this year. The proceeds of the loan would be utilized towards upgrading about 2,000 kilometers of state highways and major district roads to two-lane or intermediate-lane standards to meet road safety requirements.
According to ADB, the objective of the program is to attract private sector financing through government capacity building on public private partnership (PPP) development. The ADB will finance part of the construction costs for the annuity-based PPP concessions and engineering procurement construction (EPC) contracts, enhance the stability of contract regime, and ensure good governance during project implementation.
This update is authored by Clasis Law, Clyde & Co's associated firm in India
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