ADB, India sign $190 million loan

Question: Asian Development Bank (ADB) & India has recently signed $190 million loan for the improvement of road connectivity in which of the following state?
(a) Uttar Pradesh
(b) Rajasthan
(c) Bihar
(d) Sikkim
Answer: (b)
Related facts:

  • The Asian Development Bank and the Government of India signed a $190 million loan to upgrade 754 kilometres of state highways and major district roads (MDRs) to two-lane or intermediate-lane standards that will benefit about 26 million people in 14 districts of Rajasthan on October 11 2019.
  • The Tranche 2 roads pass through mostly rural areas of Rajasthan that lack reliable connectivity and will help improve access to health, education facilities and markets leading to increased job opportunities.
  • The ADB value-addition will consist in financing part of the construction costs for the annuity-based public private partnership (PPP) concessions and EPC contracts and ensure good governance during project implementation, particularly on procurement and safeguards.

Annuity based PPP Model:

  • The annuity-based PPP model attracts private sector financing to address capital investment requirements, where a proportion of initial capital expenditure is paid during construction while the balance is serviced by annuity payments during the operation and maintenance phase.
  • The toll collection rights will remain with the state public works department to bring sustainability in operation and maintenance of the project.
  • For the benefit of commuters and pedestrians, particularly women and children, the project provides for constructing more than 200 bus stops, 70 km of hard shoulder, and 2 km of raised sidewalk on project roads.

Links:
https://pib.gov.in/PressReleseDetail.aspx?PRID=1587929