Asian Development Bank announces $200 million loan to build
North East roads

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NEW DELHI: Multilateral funding agency Asian Development Bank on Friday announced a $200 million loan to reconstruct roads in north-eastern region of the country to open up growth and development opportunities.

The funds, to be released in two tranches under the North Eastern State Roads Investment Programme , will upgrade over 400 km of roads in the north-eastern states of Assam, Manipur, Meghalaya, Mizoram, Sikkim and Tripura.

The improvement work will include widening existing roads, strengthening pavements, raising embankments, and providing permanent structures at river crossings, ADB said in a statement.

More than 30 per cent of the population in these states lives below the poverty line, Hideaki Iwasaki of ADB's South Asia Department said.

"By upgrading these roads, we will be able to improve mobility and accessibility for many communities that will help provide new economic opportunities, boost growth and reduce poverty," Iwasaki added.

Better roads in the region are bound to significantly improve the investment climate for the private sector.

Moreover, an associated technical assistance grant of $1.2 million from the Japan Fund for Poverty Reduction, administered by ADB, will be provided to introduce modern road management practices.

The first tranche loan of close to $75 million will be used to fund improvements in over 200 km of roads in three states.

Besides, the Centre and state governments will provide counterpart finance of $98.2 million for a total programme investment cost of $298.2 million.

The Ministry of Development of N-E region along with the six state governments will carry out the programme which is due for completion by 2016.