The UP government on Tuesday signed a loan agreement of US $ 428 million (Rs 2,782 crore) with multi-lateral funding agency Asian Development Bank (ADB) for improvement and strengthening of major district roads. The ADB board, based in Manila, had approved the loan in April 2016.
The loan agreement was signed by ADB officials and UP government in the presence of Chief Minister Yogi Adityanath, Deputy CM Keshav Prasad Mauruya and other ministers.
The project supports the state government’s core road network improvement master plan, under which the government plans to improve roads through a combination of state, private and multilateral resources.
The loan, which is ADB’s first road sector assistance to Uttar Pradesh, will be used to improve eight major roads in 12 districts measuring 431 kms, upgrading them to standard design widths, suitable for use in all types of weather and with safety features, including widened and strengthened culverts and bridges.
After signing of the loan agreement, Chief minister Yogi Adityanath said that it was a big event in the history of development of UP that the ADB agreed for a big exposure in the state and it would extend financial assistance in urban development, energy, transport and drinking water sectors.
The CM said that the loan for road and infrastructure sector is of Rs 2,782 crore of which the ADB will contribute Rs 1,950 crore and the rest Rs 832 crore will be the share of the UP government.
The timeframe of the execution of the project is five years and the loan, carrying the interest of 2 percent, is repayable in 25 years.
Yogi Adityanath said that earlier, repayment of loan was done in dollars but this loan would be repaid in Indian currency. He said that he had discussions with ADB President Takehiko Nakao on the potential of UP government contracting further loans for other projects.
“Its a matter of pride for UP that the ADB President has come to lucknow along with a 13-member delegation. The ADB, in pricniple, has given approval for funding projects in energy sector, transport, Smart City in urban development and funding surface water based drinking water projects in Bundelkhand and eastern UP,’’said the CM.
Yogi said that the state government discussed prospects of the ADB funding project for strengthening power distribution network. He said that the state government has also given a proposal to the ADB for funding and giving technical assistance for energy audit project in Poorvanchal Power Distribution Company.
In the Transport sector, the CM said that the ADB was likely to fund projects for preventing road accidents by installing simulators and setting up inspection and certification centre for automatic driving testing track and inspection of vehicles for issue of fitness certificates.
ADB president Takehiko Nakao said this was the bank’s first project in UP. He said that had UP been a nation state, it would have been the sixth largest country in the world with over 200 million population.
Nakao said that the ADB was aware that development of UP was crucial for the development of India and the ADB has a very positive attitude towards the proposals for funding of projects in various sectors sought by the UP government.
He said that ADB has funded education and health projects in various states of India and it would also consider funding the projects in these sectors in UP.