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ADB Approved USD 570 mn Loans for Urban Projects in Rajasthan, Madhya Pradesh

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ADB-approves-USD-570-mn-loans-for-urban-projects-in-Rajasthan,-Madhya-PradeshA lot of efforts are being made by the centre and state governments for improving sanitation and the drinking water supply infrastructure. Some of these efforts are also supported by international financial agencies in the form of grant or loan, here, Asian Development Bank (ADB) plays an important role which is continuously backing the governments to scale up the enhancement of urban livability.

  • Now, as a part of fulfilling this commitment, on September 25, 2020, ADB has approved two loans worth USD 570 million (about Rs 4,200 crore) for urban sector projects in Rajasthan and Madhya Pradesh. There details are provided as below:

Loan Approval for Rajasthan: USD300 million

ADB has approved a USD 300 million loan to develop Rajasthan’s secondary towns by financing inclusive water supply and sanitation infrastructure and services. This project will benefit 5,70,000 people with improved water supply services 7,20,000 people enhanced sanitation services in at least 14 secondary towns.

  • Water supply systems in at least eight project towns are expected to improve by 2027 as there will be five new or rehabilitated water treatment plants and 1,350 kilometres of distribution networks.
  • Citywide sanitation systems based on the most cost-effective solutions will also be developed.
  • Notably, this project will be built on the lines of three earlier related projects and sector reforms funded by ADB.

Loan Approval for Madhya Pradesh: USD 270 million

ADB has approved an additional financing of USD 270 million loan for construction of water supply and integrated storm water and sewage management infrastructure in Madhya Pradesh under Madhya Pradesh Urban Services Improvement Project, which was approved in 2017 with a USD 275 million loan.

  • This additional financing will benefit further 1,85,000 households consisting of about 1.3 million people and provide continuous support to the Urban Development and Housing Department and Madhya Pradesh Urban Development Company Limited.
  • The project will also be supported by Bill & Melinda Gates Foundation.

Recent Related News:

i.On March 31, 2020, Asian Development Bank (ADB), a regional development bank, has signed a loan agreement worth $60 million with affordable housing loan provider Aavas Financiers Ltd to provide housing finance to women in low-income communities either as primary borrowers or co-borrowers.

ii.On 20th April 2020, The Government of Rajasthan has partnered with MedCords, a healthcare startup to provide online consultations and to deliver medicine to the people of Rajasthan to control the COVID-19 pandemic. MedCord will provide the requirements of over 68 million people throughout Rajasthan through its integrated solution – Aayu and SehatSathi app.

About Asian Development Bank (ADB):

President– Masatsugu Asakawa
Members– 68 Nations
Headquarters– Mandaluyong in Manila, Philippines