ADB, Government of India Sign $300 Million Loan Boosting Regional Road Connectivity
26 March 2015
The Asian Development Bank (ADB) and the Government of India signed a $300 million loan agreement on 26 March 2014 to improve road connectivity and increase domestic and regional trade along the North Bengal-Northeastern Region international trade corridor.
The loan is the first under a $500 million multitranche South Asia Subregional Economic Cooperation (SASEC) Road Connectivity Investment Program (SRCIP) approved by ADB in 2014. SRCIP: Project 1 will construct two national highways totaling about 150km in West Bengal, and state roads totaling about 180km in Manipur, extending to Myanmar. This key strategic corridor in the North Bengal and Northeastern Region of India lies along the Asian Highways and South Asian Association for Regional Cooperation (SAARC) Highway Corridors.
Developing a key strategic thoroughfare that borders Bangladesh, Bhutan, Myanmar, and Nepal will help integrate South and Southeast Asia, as well as enable efficient and safe transport within India, and regionally. The project is expected to be completed by 31 December 2021.
Mr. Tarun Bajaj, Joint Secretary (Multilateral Institutions), Department of Economic Affairs of the Ministry of Finance and Ms. Teresa Kho, Country Director of ADB India Resident Mission, signed the loan agreement on behalf of the Government of India and ADB, respectively.
India's central and state governments will provide counterpart financing of around $125 million. SRCIP was endorsed by the SASEC Trade Facilitation and Transport Working Group at a meeting in Singapore on 30 October 2013 to resolve last mile connectivity along SAARC corridors.
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