Union Government signs agreement with ADB for A $60 Million Loan

Government of India signed an agreement with Asian Development Bank (ADB) today for a $60 million loan for improving urban services and strengthen municipal and project management capacity in several towns in North Karnataka. The agreement is for the 3rd Project under the overall facility of $270 million for the North Karnataka Urban Sector Investment Program (NKUSIP).

The third tranche loan under the North Karnataka Urban Sector Investment Program will develop sewerage networks in six towns, and help the rehabilitation and expansion of potable water systems in two more towns. More than 100,000 households will benefit from the improvements.

This loan from the ADB’s Ordinary Capital Resources has a 25-year term including a grace period of five years, commitment charges of 0.15% and an interest rate to be determined in accordance with ADB’s LIBOR-based lending facility. The Government of Karnataka will provide counterpart funds of $41.6 million for a total project investment cost of $101.6 million under this tranche.