ADB Loan to Improve Urban Services in Two Northeastern Capital Cities

News from Country Offices | 28 January 2016

NEW DELHI, INDIA – The Asian Development Bank (ADB) and the Government of India signed today an $80 million loan agreement to continue improving infrastructure in two northeastern state capital cities. 

The loan is 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 ongoing urban reforms, benefiting nearly a million people, in the two cities. Previous program tranches have provided assistance to five cities in the northeast—Shillong (Meghalaya), Aizawl (Mizoram), Kohima (Nagaland), Gangtok (Sikkim) and Agartala (Tripura). 

The loan agreement was signed by Raj Kumar, Joint Secretary (Multilateral Institutions), Department of Economic Affairs in India’s Ministry of Finance, and Teresa Kho, Country Director, of ADB’s India Resident Mission. Separate subproject agreements under the third tranche were signed by B P Das, Project Director, Government of Tripura; and Vanlalmawia Renthlei, Joint Secretary, Urban Development and Poverty Alleviation Department, Government of Mizoram. Parmod Kumar, Director, signed on behalf of the Ministry of Urban Development.

“Urban infrastructure and services in the northeast of the country are grossly inadequate and this third tranche loan will help Agartala and Aizawl improve and expand services, as well as strengthening the institutional, managerial, and financial capacity of  service institutions,” said Ms. Kho.

“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,” said Mr. Kumar.

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.    

ADB, based in Manila, is dedicated 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 – 48 from the region.