Agartala

ADB to provide $80m loan to improve urban services in Agartala, Aizawl

NetIndian News Network

New Delhi, January 28, 2016

The Manila-based Asian Development Bank (ADB) and the Government of India signed here today an $ 80 million loan agreement to continue improving infrastructure and urban services in two North Eastern state capital cities -- Agartala and Aizawl.
An official press release said that the loan was the third tranche of a $ 200 million financing facility under the North Eastern Region Capital Cities Development Investment Program and will be used for investments in water supply, solid waste management and sanitation in Agartala and Aizawl.
It will also support urban reforms, benefiting nearly a million people in the two cities, it said.
Previous program tranches have provided assistance to five other cities in the North East—Shillong (Meghalaya), Aizawl (Mizoram), Kohima (Nagaland), Gangtok (Sikkim) and Agartala (Tripura). 
The loan agreement was signed by Mr. Raj Kumar, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Ms Teresa Kho, Country Director, ADB’s India Resident Mission on behalf of Asian Development Bank (ADB). 
Separate sub-project agreements under the third tranche were signed by Mr. Parmod Kumar, Director (UD), Mr. B.P. Das, Project Director (SIPMIU), Government of Tripura and Mr. Vanlalmawia Renthlei, Joint Secretary, Urban development & Poverty Alleviation Department, Government of Mizoram on behalf of Ministry of Urban Development (MoUD), Government of Tripura and Government of Mizoram respectively. 
Urban infrastructure and services in the North East of the country are grossly inadequate and this third tranche loan will help Agartala and Aizawl improve and expand services, as well as strengthen the institutional, managerial, and financial capacity of service institutions, the release said.
The loan will support further investments to increase access to sustainable and improved urban services, with Aizawl and Agartala cities, selected for financing under the third tranche of the program based on their progress on reforms and implementation performance under earlier tranches, it said.
The third tranche loan from ADB’s ordinary capital resources has a 20-year term. The Ministry of Urban Development is responsible for implementing the tranche 3 activities and overall program, which are both due for completion by June 2019. 
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