ADB pledges further funding for Indian infrastructure

The Asian Development Bank (ADB) has pledged further financial assistance to the Indian state of Bihar to continue upgrade works on its state highways, taking its total investment to more than US$ 1 billion.

The bank is to loan an extra US$ 300 million to upgrade 254 km of highways in Bihar. The 25-year loan will be used to upgrade sections of four highways, build and maintain bridges, and strengthen pavements. Work is scheduled for completion in 2017.

The environment has also been taken into consideration. Construction sites will be powered using solar panels. The project will also plant 10 trees for every one tree cut down to make space for the new roads, as part of a carbon offset initiative.

The total cost of the project is US$ 375 million, with the Government of Bihar providing the remainder of the funds. ADB will also provide a US$ 1 million grant to help the state government prepare a 20-year master plan to develop and maintain its highways.

The ADB funding follows a US$ 300 million loan provided in September 2010 to rehabilitate 356 km of state highways under the Bihar State Highways II Project.

That project is due to be completed in 2015. ADB also provided US$ 420 million in September 2008 under the first Bihar State Highways Project to upgrade 820 km of state highways and implement sector reforms, including the establishment of the Bihar State Road Development Corporation. Work on that project was completed this summer.