ADB loan unaffordable, says Kozhikode Mayor

KOZHIKODE, MARCH 11. A proposal of the Asian Development Bank (ADB) to fund the Kerala Sustainable Urban Development Project (KSUDP) has run into rough weather with the Mayor, Thottathil Ravindran, stating that the city corporation cannot accept the loan from the Manila-based international financial institution.

The Mayor told S.M. Vijayanand, Secretary (Planning) and Member-Secretary, State Planning Board, P.M. Kamal Kutty, Secretary, Local Self Government, and the KSUDP officials at a meeting held in Thiruvananthapuram on Thursday that the corporation did not want the loan since it did not have the financial capacity and stability to repay the money.

The ADB consultants had prepared the KSUDP for the corporation, estimated at Rs. 153.5 crores. The ADB will fund the project from its ordinary capital resources with contribution from the Government and the corporation.