$100 million loan for Uttarakhand

February 01, 2013 12:00 am | Updated 05:05 am IST - NEW DELHI:

The Union Government on Thursday signed an agreement for a $100-million loan with Asian Development Bank (ADB) as the second tranche of Uttarakhand’s urban sector development investment programme.

According to an official release here, the loan assistance will support rehabilitation and expansion of basic urban infrastructure in five major urban towns of the State and ensure sustainable municipal service delivery.

It will also supplement the urban infrastructure programme already initiated under the first tranche in Dehra Dun, Haridwar and Nainital. In addition, it will be extended to cover towns such as Haldwani, Roorkee and Ramnagar, specially for improving the water supply infrastructure to benefit about 800,000 residents.

The documents were signed by Department of Economic Affairs Joint Secretary Anup Wadhawan on behalf of the Centre, ADB’s Country Director Hun Kim and Uttarakhand’s Urban Development Secretary M.H. Khan.

The second tranche loan from the ADB has a 25-year term, including a grace period of five years, commitment charges of 0.15 per cent and carries an interest rate to be determined in accordance with the Manila-based multilateral agency’s LIBOR-based lending facility.

The Centre will provide counterpart funds of $42.86 million for a total second tranche project investment cost of $142.86 million, the statement said.

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