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ADB, India sign $300 million loan to improve connectivity in Assam

BNE News Desk


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New Delhi: The Asian Development Bank (ADB) and the Government of India signed a $300 million loan agreement to upgrade over 300 kilometres of state highways and major district roads (MDRs) in Assam.

Shri Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Ministry of Finance, who signed for the Government of India, and Mr Nilaya Mitash, Officer-in-Charge of ADB's India Resident Mission, who signed for ADB, were the signatories to the Assam South Asia Subregional Economic Cooperation (SASEC) Corridor Connectivity Improvement Project.

Shri Mishra stated after signing the loan agreement that the project supports the Government of Assam's flagship Asom Mala road improvement programme, which aims to improve the quality and service of priority sections of state highway and MDR networks while also filling critical infrastructure gaps.

"Improved connectivity and safe road networks developed through the project will enhance mobility and accessibility of people in the state's less developed areas to markets and services, spurring growth and contributing to the state's potential as a growth catalyst for the SASEC region," Mr Mitash said.

The project's roads, which include six sections in the state's western, central, and southern regions, are linked to SASEC corridors connecting India with Bhutan and Bangladesh, and are expected to boost cross-border trade and transportation. The project will complement the multimodal logistics park currently under construction in Jogighopa and another proposed in Silchar to serve road, rail, inland waterway, and air transportation facilities.

The project will widen state highways and major district roads from one to two lanes, as well as build new climate- and disaster-resistant structures. It will build pedestrian and public transportation infrastructure, raise highways in flood-prone areas, and include landslide prevention structures in hilly and mountainous areas.

Community schools, water, health, and sanitation facilities, as well as heritage and tourism sites, will be restored in affected indigenous peoples' villages. Viaduct structures will be built to avoid human-elephant conflict in elephant habitats to protect wildlife and habitats in project areas.

Furthermore, residents, drivers, motorcycle riders, schoolteachers, and students will be educated and trained on road safety. The project will strengthen the Assam Public Works (Roads) Department's capacity in managing road assets, incorporating climate and disaster resilience into road projects, and ensuring safeguards such as environmental, resettlement, and indigenous peoples concerns are taken into account.

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BNE News Desk