ADB Current Affairs - 2020

750 million USD loan approved by AIIB to India

On June 17, 2020, the Asian Infrastructure Investment Bank (AIIB) approved 750 million USD loan to India. The fund granted is to be used by the GoI to strengthen battle against the impact of COVID-19 on the poor and vulnerable.

Highlights

The aid was cofinanced by the Asian Development Bank (ADB). The funds are to be used for improving informal sector, safety nets for the needy and strengthen heath care system of the country.

India and AIIB

The total sovereign loans to India that were already approved by AIIB amounts to 3.6 billion USD. This includes the recent emergency response of the bank that amounted to 500 million USD.

The loan allocated is the second for the country under AIIB COVID-19 Crisis Recovery Facility (CRF).

Crisis Recovery Facility

The AIIB does not have an exclusive policy-based financing. The bank is currently extending its support to its members through projects under CRF that are cofinanced either with the World Bank or ADB.

The CRF was set up with an initial investment of 5 billion USD. Later it was doubled to 10 billion USD in order to make sure the funds are available to the member countries to fulfill their financial, economic and public health pressures.

The AIIB has in total approved 4.05 billion USD under CRF. Of this, China received 355 million USD, 750 million USD to Indonesia and Philippines each, 250 million USD to Bangladesh and 500 million USD to Pakistan.

India and ADB sign 177 million USD to upgrade Maharashtra State Highways

On May 28, 2020, the Government of India and the Asian Development Bank signed an agreement to construct state highways in Maharashtra.

Highlights

The funds received from the bank are to be used by the State Government of Maharashtra to improve road projects. The projects will be used to increase connectivity between urban and rural areas. This will help in increasing access to markets and employment opportunities.

The State Government will also use the funds in training public work department project staff, build their climate change adaptation of roads and also help in disaster resilient features of road design, road safety and road maintenance.

Roads and Climate Change

The supporting structures of transport are the biggest climate change challenges in the world. The roads take the heat continuously during summer and damaged exclusively by flash floods in rainy season. Therefore, it is important to focus on climate resilient roads.