Question: Total assistance Asian Development Bank has agreed to provide to the East Coast Economic Corridor project is…
(a) $631Million
(b) $500 Million
(c) $215 Million
(d) $846 Million
Ans: (a)
Related Fact:
- On 23rd February, 2017 The Asian Development Bank (ADB) and the Government of India signed $375 million loans and grants to develop the 800-kilometer Visakhapatnam-Chennai Industrial Corridor, which is the first phase of a planned 2,500-kilometer long East Coast Economic Corridor (ECEC).
- The ADB has approved to provide $631 million in loans and grants in September 2016 to develop the Corridor. The Government of India will provide extra funding of $215 million to the $846 million project.
- Asian Development Bank’s assistance includes a $500 million multi-tranche facility to build key infrastructure in the four main centers along the corridor — Visakhapatnam, Kakinada, Amaravati, and Yerpedu-Srikalahasti in the state of Andhra Pradesh.
Key Highlights of the Agreement: - The first tranche of $245 million was signed on 23rd February, 2017. This will finance subprojects to develop high-quality internal infrastructure in 2 of the 4 nodes of the corridor — Visakhapatnam and Yerpedu-Srikalahasti.
- Another component of the approved ADB funds was a $125 million policy-based loan that will be used for capacity development of institutions engaged in corridor management, provide support to enhance ease of doing business and for supporting industrial development policies.
- Another agreement signed was for a $5 million grant from the multi-donor Urban Climate Change Resilience Trust Fund that is managed by ADB to build climate change resilient infrastructure.
- The tranche 1 loan will have a 25-year term, including a grace period of 5 years.
Benefits:
The Corridor is expected to spur development on India’s eastern coast in line with the Government of India’s ‘Make in India’ and ‘Act East policy’ to integrate the Indian economy with Asia’s dynamic global production networks. Among the outputs envisaged under the $245 million tranche 1 loan include strengthening and widening of a 29.6-kilometer section of state highway to four lanes to improve connectivity from Kakinada Port to National Highway 16. Besides, investments will increase in smart water management in Visakhapatnam to reduce nonrevenue water and provide continuous water supply, upgrading 7 power substations to for reliable power supply to Visakhapatnam, Naidupeta, and Yerpedu-Srikalahasti industrial clusters, and effluent treatment facility in Atchutapuram and Naidupeta clusters. The project is an important milestone in the process of developing the corridor and realizing the objectives of Make in India. ADB estimates that by 2025, annual industrial output along the corridor will increase fourfold to $64 billion from about $16 billion in 2015 if investment opportunities are maximized over the next few years.
About ADB:
- ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.