The FINANCIAL — The Asian Development Bank (ADB) is extending a new loan of $200 million to help Jharkhand State continue upgrading key state roads to open up new economic opportunities and improve access to services for the poor.
“Jharkhand has substantial natural resources which are largely untapped due to access issues. Improving road links will help the state tap its full potential, resulting in growth that will help cut poverty,” said Tsuneyuki Sakai, Senior Transport Specialist in ADB’s South Asia Department. “Along with physical upgrades to 176 kilometers (km) of roads, this loan assistance will also support efforts to improve the design, safety, and maintenance of the network.”
Roads are the dominant form of transport in the state, but about 40% of the main network is in poor condition, hampering mobility and opportunities between remote areas and industrial and economic centers. Jharkhand has an estimated 40% of India’s mineral resources, but it is also one of the poorest states, with over a third of its 33 million people living below the state poverty line.
Jharkhand has set out a $2.5 billion investment plan to improve over 6,000 km of roads in 2012-2017, and ADB supported the state’s goals with an initial loan for road improvements in 2009. The new assistance will continue the ongoing physical upgrades, as well as building up the capacity of the State Highways Authority of Jharkhand to design, plan, and maintain roads, and adopt a road safety master plan. The state’s road accident rate is sharply higher than the national average, according to ADB.
A number of safety and environmentally friendly features are included in the project design, including over 60 bus stop shelters; 50 km of raised sidewalks in urban areas; 4 km of dedicated bicycle lanes; and solar-powered street lights. The project will also generate employment opportunities for residents in five districts, including for women, who will get a guaranteed share of a least 20% of jobs for afforestation work alongside the upgraded roads.
In addition to ADB’s loan, the state government of Jharkhand will provide counterpart assistance equivalent to $106.25 million. The project will run for over 4 years, with an expected completion date of 31 December 2019.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.
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