ADB to fund road projects in Rajasthan

The Asian Development Bank has approved financing for road projects in Rajasthan for improving connectivity and enhancing trade in the state. This will usher in economic development and social welfare

October 12, 2019

The Asian Development Bank and the Government of India signed a US$190 million deal

This will develop over 750 km of highways and internal roads in 14 districts of Rajasthan

The tranche 2 loan follows a funding of of US$220 million that upgraded 1,000 km of roads

This is one of many road projects being financed in India by the development bank

The Asian Development Bank (ADB) and the Government of India on October 12 signed a US$190 million loan to upgrade over 750 km of state highways and major district roads (MDRs) to two-lane or intermediate-lane standards that will benefit about 26 million people in 14 districts of Rajasthan.

The Tranche 1 loan of $220 million under the Programme, signed in July 2017, upgraded about 1,000 km of state roads. In his statement, Shri Khare mentioned that Tranche 2 roads pass through mostly rural areas of Rajasthan that lack reliable connectivity. This investment in road projects is expected to improve access to health, education facilities and markets, in turn leading to increased job opportunities. For the benefit of commuters and pedestrians, particularly women and children, the project provides for construction of more than 200 bus stops, 70 km of the hard shoulder, and 2 km of raised sidewalk on project roads. 

This initiative is part of Rajasthan’s ongoing efforts to improve road and connectivity within the state. The ADB value-addition will consist in financing part of the construction costs for the annuity-based public-private partnership (PPP) concessions and EPC contracts. The toll collection rights will remain with the state public works department to bring sustainability in the operation and maintenance of the project.

This is one of the many projects in India that is being financed by the Asian Development Bank. Recently, ADB had also granted US$200 million for construction of rural roads in Maharashtra and loaned US$250 million for Pradhan Mantri’s rural roads program as well as the Pradhan Mantri Gram Sadak Yojna (PMGSY). 

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

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