The Asian Development Bank to lend $470 million for Bihar and Maharashtra projects

New Delhi, Sep 16 (Calcutta Tube) The Asian Development Bank (ADB) will lend $300 million to the Bihar government for building nearly 365 km of state highways, new drainage and bridges.

The ADB’s board of directors Thursday also approved another $170 million for modernising the horticulture industry in the state and Maharashtra.

The multilateral lender in a statement said the loan to Bihar State Highways II project would upgrade the highways into two-lane roads.

The lender would extend technical assistance of $1 million to help the Bihar State Road Development Corporation to operate and maintain the improved roads and to design future road projects.

The ADB said the loan would account for about 71 percent of the total project cost of $424 million. The Bihar government would provide $124 million.

‘By helping reduce travel times, improving road safety, and supporting the state government’s capacity for road asset management and maintenance, the project will create a more efficient highway system, which in turn will help support sustainable economic growth,’ said Markus Roesner, transport specialist in ADB’s South Asia department.

The bank said the financing facility for the horticulture industry in Bihar and Maharashtra would pioneer the mainstreaming of public-private partnerships that would result in higher value for horticulture products in select regions of the two states.

‘The total investment cost for the programme is $212.2 million, with the government of India providing counterpart finance of $42.2 million,’ the ADB said.

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