New Delhi, Jan 28 (IANS): The government and the Asian Development Bank (ADB) on Thursday signed an $80-million loan agreement to continue improving infrastructure in Agartala and Aizawl, respective capitals of the northeastern states of Tripura and Mizoram.
“The loan is the third tranche of a $200-million financing facility under the North Eastern Region Capital Cities Development Investment Programme and will be used for investments in water supply, solid waste management and sanitation in Agartala and Aizwal,” the ministry of finance said in a statement.
“It will also support urban reforms, benefiting nearly a million people in the two cities,” it added.
Apart from these two cities, previous programme tranches have provided assistance to three other cities in the northeast -- Shillong, Kohima, and Gangtok, the capital cities of Meghalaya, Nagaland and Sikkim, respectively.
Thursday's agreement was signed on behalf of the Indian government by Raj Kumar, joint secretary (multilateral institutions) in the department of economic affairs, ministry of finance.
Teresa Kho, country director in ADB’s India resident mission, signed on behalf of the ADB.
Separate sub-project agreements were also signed between central government officials and representatives of the governments of Tripura and Mizoram.
“The loan will support further investments to increase access to sustainable and improved urban services, with Aizwal and Agartala cities, selected for financing under the third tranche of the programme based on their progress on reforms and implementation performance under earlier tranches,” the ministry statement said
The third tranche loan from ADB’s ordinary capital resources has a 20-year term and the urban development ministry is responsible for implementing the third tranche's activities and overall programme, which are both due for completion by June 2019.
Manila-based ADB works to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members, including 48 from the region.