Press Information Bureau

Government of India

Ministry of Finance

17-March-2011 16:36 IST

Support for Urban Infrastructure Improvement in Rajasthan from ADB US $ 63 Million Loan Agreement Signed for Rajasthan Urban Sector Development Investment Program, Tranche-III

The Government of India, the Asian Development Bank (ADB) and the State Govt of Rajasthan today signed an agreement for a third tranche loan of $63 million for the ongoing Rajasthan Urban Sector Development Investment Program (RUSDIP) which is helping to improve infrastructure and living conditions in the fast growing state.

The signatories were Shri Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs (DEA), Ministry of Finance, on behalf of the Government of India, and Mr. Hun Kim, ADB Country Director for India. Shri R. Venkateswaran, Secretary, Local Self Government Department, signed on behalf of the Rajasthan Government.

The multitranche financing facility of $273 million for the investment program was approved in 2007 and it is funding infrastructure improvements in 15 towns in the state, where current services are unable to support rapidly expanding populations. The towns include Alwar, Baran, Barmer, Bharatpur, Bundi, Chittorgarh, Churu, Dholpur, Jaisalmer, Jhalawar, Karauli, Nagaur, Rajsam, Sawai Madhopur and Sikar. The third tranche loan will help to upgrade water supply, sewerage and sanitation, urban drainage, urban transport, solid waste management, and firefighting facilities in the project towns, benefitting more than one million people.

Shri Venu Rajamony, Joint sEcretary, DEA speaking on the occasion said that the water supply subprojects will augment supply and improve the quality of drinking water and by transferring best practices for the environmentally safe disposal of sewage and solid waste, this will help to reduce water-borne and other diseases, and improve public hygiene and health.

The water upgrades, focused on Baran and Chittorgarh, include new treatment plants, the rehabilitation of a distribution network and the installation of new connections in slums and low income areas. Under the sewerage and sanitation component, covering five towns, over 300 km of sewer pipelines will be laid and a sewage treatment plant will be built. Work under the third tranche of the program is expected to be completed by December 2014.

ADB Country Director, Mr. Kim said that ADB’s engagement with Rajasthan in the urban sector dates back to 1998. Giiven that implementation of RUSDIP has been progressing satisfactorily, a third urban development loan is currently being designed in close consultation with the state Government. This will further deepen ADB’s development partnership with the state.

DSM /BY/GN

Multitranche financing advances urban infrastructure upgrades and sanitation improvements under an ongoing state development program. A third tranche Loan Agreement under an existing Multitranche Financing Facility advances urban infrastructure upgrades in multiple designated towns. The tranche finances water supply augmentation and treatment, distribution network rehabilitation, new connections in low income areas, sewer pipeline laying and a sewage treatment plant, plus drainage, transport, solid waste and firefighting works, intended to benefit over one million residents and complete implementation by December 2014.