India signs $84m loan with ADB to improve urban services in two towns
The tranche 2 loan is part of the $200 million multitranche financing facility (MFF) for the Bihar Urban Development Investment Program that was approved by the ADB Board of Directors in 2012 to provide sustainable urban infrastructure and services in four towns in Bihar—Bhagalpur, Gaya, Darbhanga, and Muzaffarpur.
The two towns of the project would achieve the national urban service goals or match many of the national averages for urban service delivery performance in India. The investment program will assist ULBs in designing affordable tariffs for O&M cost recovery.
The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s lending facility based on the London interbank offered rate (LIBOR), and a commitment charge of 0.15% per year.
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. ■