Excelsior Correspondent
New Delhi, May 16: The Asian Development Bank (ADB) and Government of India today signed an agreement for a $110 million loan that will help improve urban services, including water supply, in two key cities of Jammu and Kashmir.
The loan represents the second tranche of a US$ 300 million Multi-tranche Financing Facility (MFF) Jammu and Kashmir Urban Sector Development Investment Program (JKUSDIP). 1st tranche for US$ 42.2 million was signed on 28.12.2007 and is under implementation. This second tranche will help develop infrastructure for solid waste management, drainage and transport in Jammu and Srinagar. More than two million people in Srinagar and Jammu will benefit from improved access to water supply, functional drainage systems and better road facilities.
The signatories to the loan were Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India and Hun Kim, Country Director for India, on behalf of ADB. The project agreements were signed by Saurabh Bhagat, Chief Executive Officer, J&K Economic Reconstruction Agency (ERA) on behalf of J&K Government and Shagufta Qazi, Director Finance J&K ERA- on behalf of ERA.
“The project will support the State to increase average water supply in Jammu, from 90 liter/day/capita to 135 liter/day/capita through rehabilitation and improvement of infrastructure,” said Mitash. “The project will also support reduce inner city traffic congestions, resulting in positive economic impacts”, he added.
“A more efficient operational mechanism for user charges, billing and collection on water supply and sewerage will ensure sustainable service delivery and bring efficiency and accountability in the functioning,” said Mr. Kim. “As well, capacity development programs will be run for concerned State Government departments and representatives of urban local bodies to enable them to provide better urban service,” he added.
This loan from the ADB’s Ordinary Capital Resources has a 25-year term including a grace period of five years, commitment charges of 0.15% and interest rate to be determined in accordance with ADB’s LIBOR-based lending facility. ADB lauded the work of ERA for completing most of the undertaken work in stipulated time.
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