Asian Development Bank (ADB) Current Affairs
The Asian Development Bank has committed USD 10 billion to support infrastructure building and to cater to the immediate development needs of less-developed States in India. This has been stated by ADB President Takehiko Nakao during his 3-day visit to India.
The ADB president has said that the bank is ready to meet immediate critical infrastructure needs of less developed states like Uttar Pradesh, Bihar, Jharkhand, Odisha and Chhattisgarh over a period of five years.
ADB has also assured its support to relatively lesser developed states in the area of power, transport, urban development, and health services.
ADB’s President has also in-principle accepted India’s suggestion of setting up a regional hub in New Delhi to cater to the needs of the South Asia region.
As per the estimates of ADB, India is expected to grow by 7.4% in the current financial year and 7.6% in 2018-19.
ADB is multilateral lending agency based in Manila, Philippines. It was established on 19 December 1966. It aims to reduce poverty in Asia and the Pacific region through inclusive environmentally sustainable growth, and regional integration. It provides finance to both sovereign countries as well as to the private parties. It provides hard loans to middle-income countries and soft loans to poorer countries.
ADB has 67 members – 48 from the Asia-Pacific region including India and is collectively owned by these 67 members. The non-Asia Pacific region members are only developed countries. Most of the ADB’s lending is concentrated in five operational areas viz. Education; Environment, Climate Change & Disaster Management; Finance Sector Development; Regional Cooperation & Integration; and Private sector lending.
Government has signed a loan agreement with Asian Development Bank (ADB) for 75 million dollars and 1.8 million dollar grant for Karnataka Integrated Urban Water Management Investment Program (KIUWMIP).
This loan fund will be used in the three towns of Byadagi, Davanagere and Harihar of Karnataka under the KIUWMIP.
This loan seeks to expand and upgrade: urban water supply and sanitation infrastructure, improve water resource planning, monitoring and service delivery, and strengthen operational and administrative capacity in these towns.
As per this agreement, the loan has a 25 year term including a grace period of five years.
Implications: This project by utilizing the loan fund will help these urban towns to increase water treatment capacity by 15,000 cubic meters per day. It will also help expand and upgrade more than 1,000 kilometers of water pipelines and increase sewage treatment capacity by 48,000 cubic meters per day, thereby promoting water efficiency and environmental protection.
About Karnataka Integrated Urban Water Management Investment Program (KIUWMIP)
- KIUWMIP- is an investment program that aims to improve water resource management in urban areas of Karnataka State in a holistic and sustainable.
- It seeks to modernize and expand urban water supply and sanitation (UWSS) by strengthening relevant institutions related to it in order to enhance their efficiency, productivity and sustainability in water use.
- It takes help of innovative social instruments like as public-private partnership (PPP) or reform oriented incentive funds.
- This Program also aims to improve the condition of more fragile environments located in North Karnataka that are increasingly affected by water resource degradation by promoting climate-resilient development, capacity-development techniques for conducive adaptation.