On January 6, 2021 Govt of India(GoI), Govt of Andhra Pradesh(AP) and New Development Bank(NDB) signed loan agreement worth USD 646 million(about Rs 4,736 crore) for 2 projects to upgrade State Highway Network and District Road Network in AP. The Loan amount of USD 323 million(about Rs 2,368 crore) for each project will be given by NDB.
i.The 2 projects include Andhra Pradesh Roads and Bridges Reconstruction Project and Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Project.
iii.The Roads and Buildings Department of Government of AP will be the Project Implementation Agency.
Note– The tenor of each loan is 32 years, including a moratorium period of 5 years.
Aim of the Projects
To address the connectivity challenges faced by AP by upgrading state highways and district roads of heavy traffic, and reconstructing obsolete bridges.
The agreement was signed by the following dignitaries namely;
- Baldeo Purushartha, Joint Secretary of Department of Economic Affairs, Ministry of Finance on behalf of the Government of India,
- T. Krishna Babu, Principal Secretary of Transport, Roads and Buildings Department on behalf of the Government of AP
- Xian Zhu, Vice President, and Chief Operations Officer of NDB on behalf of NDB
Benefit of Funding:
The funding of NDB will help to bridge the financial gap for road infrastructure development and supports AP govt’s goal to improve connectivity between socioeconomic centres.
Components of the Projects:
Andhra Pradesh Roads and Bridges Reconstruction Project
i.About 1,600 km of state highways to be broadened from single/intermediate lane to double lane.
ii.269 bridges to be constructed in the state highways network.
iii.Deteriorated bridges to be reconstructed on the State Highway network.
Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Project
i.Broadening about 1,400 km of district roads from single/intermediate lane to double lane
ii.Constructing 206 bridges in the district roads network.
iii.Reconstructing deteriorated bridges on the district road network.
Benefits of the Projects:
i.These projects improve road connectivity & road safety and also enhance the transport efficiency, riding quality, and provide all-weather accessibility for the State’s road users.
ii.The 2 projects will increase the daily traffic capacity of the roads to 15,000 passenger car units, which anticipates to meet the projected traffic growth over the next 20 years.
iii.The projects will also have a positive impact on job creation and economic well-being.
Recent Related News:
i.On September 7, 2020 The State Government of Himachal Pradesh (HP) and World Bank signed a $82 million (approximately Rs. 600 Crores) loan deal to strengthen its transport and road safety institutions by improving the condition, safety, resilience, and engineering standards of the state’s road network.
ii.On May 28,2020 The Asian Development Bank(ADB) and the Government of India signed a USD 177 million loan to upgrade 11 state highways & 2 major district roads with a combined length of 450 km, to 2-lane standard across seven districts of Maharashtra.
About New Development Bank(NDB):
i.During the sixth BRICS (Brazil, Russia, India, China, and South Africa) Summit in Fortaleza (2014), the leaders signed an Agreement to establish the NDB.
ii.NDB became fully operational on February 27, 2016.
Headquarters- Shanghai, China
Formerly referred as– BRICS Development Bank
President– Marcos Troyjo