Asian Development Bank Current Affairs

India inks $120 Million Loan agreement with to improve Rail Infrastructure

Government has inked $120 million loan agreement with Asian Development Bank (ADB) for completion of projects to improve Rail Infrastructure along high-density corridors and operational efficiency of Indian railways.

The loan has 20-year term, including grace period of 5 years and have annual interest rate determined according to ADB’s London interbank offered rate (LIBOR) based lending facility, and commitment charge of 0.15% per year.

Rail Infrastructure Improvement Project

The loan amount is 3 tranche of $500 million multi-tranche financing facility for Railway Sector Investment Program approved by ADB Board in 2011. The loan amount will be used to complete the ongoing works commenced under earlier tranches.

The project is aimed at enhancing efficiency of rail infrastructure through electrification, introduction of modern signaling system and doubling rail tracks on key routes in country.  It will help to develop energy-efficient, safe, and reliable railway system that will result in reduced travel time along project rail routes and improved operational and financial efficiency.

Funding will contribute towards achieving overall program outputs of double-tracking about 840 kms of rail routes and electrification of 640 kms of tracks along high density corridors. It will also help to implement new accounting systems and provide additional safety measures including collision avoidance equipment.

The loan proceeds will be used for busy freight and passenger routes in Chhattisgarh, Odisha, Maharashtra, Karnataka and Andhra Pradesh, including “Golden Quadrilateral” corridor that connects Chennai, Kolkata, Mumbai and New Delhi.

Asian Development Bank (ADB)

ADB is regional development bank which aims to promote social and economic development in Asia. It was established in 1966. It is headquartered in Manila, Philippines. Now it has 67 members, of which 48 are from within Asia and the Pacific and 19 outside.

The ADB has been modelled closely on World Bank. It has similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions. As of 2014, Japan was largest shareholder (capital subscription) having 15.7% shares followed by US (15.6%), China (6.5%), India (6.4%), and Australia (5.8%).

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ADB approves $346 million loan to upgrade Karnataka highways

Multilateral funding agency Asian Development Bank (ADB) has approved $346 million loan for highways upgradation project in Karnataka.

The loan funds will be used for Karnataka State Highways Improvement III Project to upgrade 419 km of state highways from two to four–lane widths and improving culverts and bridges along stretch of road.

Key Facts

The project roads will address needs of residents along roads for adequate footpaths, lights, and improvement to curves that pose safety hazards, especially at night.

It will also carry out a road safety survey to identify critical accident spots across the state highways and carry out measures to improve these. Besides, the upgradation will also include construction of planned pedestrian, installation of women-friendly amenities, marked crossings and proper signage.

This is second loan from ADB for improving state’s road network. The total project cost has been estimated to be US $655 million, out of which, state government will provide US $202 million and US $107 will be raised through private sector investment through hybrid annuity contracts.

Asian Development Bank (ADB)

ADB is a regional development bank which aims to promote social and economic development in Asia. It was established on 19 December 1966. It is headquartered in Manila, Philippines. Now it has 67 members, of which 48 are from within Asia and the Pacific and 19 outside. The ADB has been modelled closely on the World Bank. It has similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions. As of 2014, Japan was largest shareholder (capital subscription) of ADB having 15.7% shares followed by US (15.6%), China (6.5%), India (6.4%), and Australia (5.8%).

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