India: Rural Roads Sector II Investment Program (Project 5 and Multitranche Financing Facility)
In 2000, the Government of India established the Prime Minister’s Rural Roads Program, also known as the Pradhan Mantri Gram Sadak Yojana (PMGSY), to address the issue of inadequate road connectivity. To implement this, the government requested ADB for a multitranche financing facility (MFF) of $750 million over a 5-year period to assist in the upgrading or construction of 30,000 km rural roads in the states of Assam, Orissa, and West Bengal. It aimed to build capacity in implementing rural road development and address policy issues (i.e., safeguards and road safety) throughout the investment cycle. The expected total cost of the program was $2.1 billion, of which 64% was to come from the government. The subject of this validation is the progress under the MFF and its fifth tranche (Project 5) as described in the project completion report. IED overall assessment: Successful.