Support for Urban Infrastructure Improvement in NCR Region from ADB US $ 78 Million Loan Agreement Signed for National Capital Region Urban Infrastructure Financing Facility, Tranche-I

Press Information Bureau

Government of India

Ministry of Finance

17-March-2011 16:34 IST

Support for Urban Infrastructure Improvement in NCR Region from ADB

US $ 78 Million Loan Agreement Signed for National Capital Region Urban Infrastructure Financing Facility, Tranche-I

The Government of India, Asian Development Bank (ADB) and National Capital Region Planning Board (NCRPB) today signed an agreement for a first tranche loan of $78 million under the $150 million National Capital Region Urban Infrastructure Financing Facility which seeks to improve living conditions for the region’s fast growing population.

The signatories were Shri Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Mr. Hun Kim, ADB Country Director for India. Shri R. K. Karna, Director (A&F) signed the agreement on behalf of the National Capital Region Planning Board (NCRPB).

The population of the National Capital Region (NCR) covering Delhi and the sub-regions of Haryana, Rajasthan, and Uttar Pradesh is expected to almost double from 37 million in 2010 to 64 million by 2021, putting already over-stretched infrastructure under immense pressure. The regional planning board has identified investment needs in key areas including transport, power, water and solid waste totaling about $43 billion and ADB’s financing facility¯approved in August 2010¯will help fund those requirements.

Shri Venu Rajamony, Joint Secretary, DEA said that the financing facility will extend long-term finance to improve urban infrastructure and services, encourage private investor participation and support a regional rather than city-centric approach to development.

Six projects earmarked under the board’s Regional Plan 2021 will be financed by the Tranche 1 loan. They include water supply improvements in Panipat, Haryana, regional road upgrades in Jhajjar and Sonepat districts, and one bypass road in Badli, and the development of two multi-modal transit centers in Delhi (Sarai Kale Khan, and Anand Vihar). Two more loan tranches will follow. Till date ADB has extended 23 urban sector loans to India totaling over $2.88 billion.

ADB Country Director Mr. Kim said that this facility is an innovative urban sector loan as it will help transform the regional board into a strong entity able to execute its regional infrastructure plan by developing new projects, attracting private sector participation, mobilizing additional finance and providing technical assistance support to sub-borrowers. He hoped that the board’s successful institutional transformation will provide a model that could be replicated by other urban sector entities in India.

DSM /BY/GN