Asian Development Bank $177 mn Loan to India
Source | Press Information Bureau
GS Paper II: Important International institutions, agencies and fora- their structure, mandate.
- It is a $177 million loan to upgrade 450 kilometers (km) of state highways and major district roads in the state of Maharashtra.
- Overall the project will upgrade 2 major district roads and 11 state highways, with combined length of 450 km, to 2-lane standard across seven districts of Maharashtra
- ADB is a regional development bank headquartered in Manila, Philippines.
Context: The Asian Development Bank (ADB) and the Government of India signed a $177 million loan to upgrade 450 kilometers (km) of state highways and major district roads in the state of Maharashtra.
What you need to about loan agreement between ADB and India?
- OVERALL LOAN AGREEMENT: $177 million loan to upgrade 450 kilometers (km) of state highways and major district roads in the state of Maharashtra.
- COVERAGE: Overall the project will upgrade 2 major district roads and 11 state highways, with combined length of 450 km, to 2-lane standard across seven districts of Maharashtra, and improve connectivity to national highways, interstate roads, seaports, airports, rail hubs, district headquarters, industrial areas, enterprise clusters and agricultural areas.
- TRAINING: The project will also focus on training the Maharashtra Public Works Department project staff to build their capacity in climate change adaptation and disaster resilient features in road design, road maintenance planning and road safety.
- IMPORTANCE: After signing the loan agreement, the project will improve connectivity between rural areas and urban centers in the state enabling rural communities to better access markets, employment opportunities and services.
Read More: World Bank Assistance to India amid COVID-19
What you need to know about Asian Development Bank?
- ESTABLISHED: 19 December 1966
- TYPE: Asian Development Bank is a regional development bank.
- HEADQUARTERS: Ortigas Center located in the city of Mandaluyong, Metro Manila, Philippines.
- MEMBERSHIP: The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.
- From 31 members at its establishment, ADB now has 68 members.
- WORKING: It is modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
- STATUS WITH UN: ADB is an official United Nations Observer.
- SHARES AND HOLDINGS: As of 31 December 2016, Japan holds the largest proportion of shares at 15.677%, closely followed by United States with 15.567% capital share.
- China holds 6.473%.
- India holds 6.359%.
- Australia holds 5.812%.
- PRESIDENT: The current president is Masatsugu Asakawa.
- He succeeded Takehiko Nakao on 17 January 2020, who succeeded Haruhiko Kuroda in 2013.
- FINANCING: The Asian Development Bank loan are of two types:
- “Hard” loans on commercial terms primarily to middle income countries in Asia.
- “Soft” loans with lower interest rates to poorer countries in the region.
Read More: New Development Bank
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