The Asian Development Bank (ADB) and the Government of India today signed a $346 million loan to finance improvement of over 400 kilometers (km) of state highways that will enhance connectivity and access to economic centers across 12 districts in Karnataka.
The signatories to the loan agreement for the Karnataka State Highways Improvement III Project (KSHIP-III) were Sameer Kumar Khare, Joint Secretary (Fund Bank and ADB), Department of Economic Affairs in the Ministry of Finance, who signed on behalf of the Government of India, and Kenichi Yokoyama, ADB Country Director in India, who signed for ADB.
"Karnataka needs substantial infrastructure investments to sustain high economic growth and meet its development needs," said Khare after signing the loan agreement. "State highways are a key link to population and economic centers, and continued development of the state highway network in Karnataka will foster inclusiveness and sustain economic activities."
An ongoing road improvement project financed by ADB with a loan of $315 million is upgrading about 615 km of state roads.
"The new loan will continue ADB support to the Government of Karnataka's state-wide road improvement program, and will also help stabilize and deepen institutional capacity, and improve road safety," said Yokoyama. "A key element of the project is the use of hybrid annuity contracts to improve road asset quality and sustainability."
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