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North East : $1400m ADB loan for development projects |
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In a major boost to the North-east, the Asian Development Bank (ADB) has announced that it will provide $1,400 million assistance to the region from 2006-08 in the sectors of urban development, power, road, flood control and resource management.
Figures provided by the ADB reveal that the loans in the pipeline for 2006-08 include the northeastern region urban development, power and roads projects, Assam integrated flood control and river erosion mitigation project and Assam governance and public resource management project.
The Centre has requested ADB to focus on the North-east, to help provide financial help in various sectors.
The Country Strategy and Programme Update for India (2006-2008) states that significant and sustained effort is required to build capacity in these states and to familiarise the executing agencies with ADB’s rules and procedures.
“The bank will be conducting workshops to familiarise various departments and executing agencies of the Northeast with ADB’s policies and procedures. This is required given that ADB will be expanding operations in the region significantly over the next three years,” it stated.
ADB has so far approved two loans to the Northeast - a $200 million Assam power sector development programme in 2003 and a $150 million Assam governance and public resource management programme in 2004.
The urban development loan will be in two phases - the first $300 million will be given in 2006 and the second $200 million in 2008.
The bank said the urban development project would form an integral part of its assistance to the northeastern region for infrastructure investments and economic reforms. “The urban sector intervention presents a unique opportunity for ADB to address widespread poverty in the region through well-designed state and community initiatives” the bank said.
The project will improve and expand basic urban services in line with the government’s priority so that the basic needs of the citizens are met, public health is improved, and growth potential protected.
The $300 million assistance for the road project, which will be approved next year, will be designed based on the Madhya Pradesh state roads sector development program and Chhatisgarh state roads project.
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