AfDB and government sign $ 570 million loan agreement to finance public infrastructure in Rajasthan, MP


The multilateral funding agency, the Asian Development Bank, on Monday announced that it had signed a loan agreement worth $ 570 million (around Rs 4,180 crore) with the Center to finance the construction of public infrastructure. and strengthen local urban organizations in Rajasthan and Madhya Pradesh.

The AfDB and the Indian government signed a loan of $ 300 million to finance inclusive and sustainable water and sanitation infrastructure and services in 14 secondary towns in Rajasthan, the agency said in a statement.

In addition, a loan of $ 270 million was signed to develop water supply infrastructure and integrated stormwater and wastewater management as well as to strengthen the capacities of local urban organizations (ULB) for better service. of services in Madhya Pradesh.

Under the Rajasthan Funding Program, the water supply systems of at least eight project towns are expected to improve by 2027, benefiting more than 570,000 people.

City-wide sanitation systems will benefit about 7-20,000 people in at least 14 secondary towns, the AfDB said.

The project will strengthen the institutional capacity of local governments and Rajasthan Urban Drinking Water, Sewerage, and Infrastructure Corporation Limited, an entity established with technical support from the AfDB.

Increased support to women and vulnerable groups will be provided through skills training, paid internships, and community engagement and outreach activities, the Manila-based agency said.

The signatories of the Rajasthan Secondary Towns Development Sector Project were Sameer Kumar Khare, Additional Secretary (Fund Bank and AfDB), Department of Economic Affairs of the Ministry of Finance, and Takeo Konishi, Country Director of the Resident Mission of the ADB in India.

The project aims to provide better and more sustainable water supply and sanitation (DWSS) services in the project towns, which will improve the quality of life in these towns, including for the poor and vulnerable. , Khare said.

“The AfDB has incorporated practical lessons from the three previous urban sector projects it has funded in Rajasthan since 2000 and has included innovations such as the use of smart technologies and cost-effective systems,” Konishi said.

Khare and Konishi also signed the agreement for the financing of the Madhya Pradesh Urban Services Improvement Project, which is additional financing to expand the scope of the ongoing project which was approved in 2017 with a loan of 275 million. dollars.

It will expand the results of the current project by covering 64 additional small towns, benefiting 1,85,000 households representing around 1.3 million people, the AfDB said.

Khare said the Madhya Pradesh project will improve livability in some cities by providing universal access to basic water and sanitation services for residents.

“Through this project, the AfDB will continue the innovative approaches and good practices of the current project, including universal coverage with a 100% domestic meter, full recovery of operation and maintenance costs and reduction of electricity consumption. ‘unbilled water,’ Konishi said.

Central state funding will receive support from the Bill and Melinda Gates Foundation, in particular for the integration of city-wide inclusive sanitation principles into planning, design, implementation, l ‘operation and maintenance of sanitation sub-projects, AfDB said.

“Providing inclusive water and sanitation services to the urban poor will help achieve Sustainable Development Goal 6 or access to safe drinking water and sanitation for all,” Konishi added.

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