<h1>Infrastructure financing expands state highway upgrades using hybrid annuity contracts and seven-year performance maintenance commitments.</h1> A multilateral loan finances upgrading about 419 kilometers of state highways in Karnataka, including reconstruction and strengthening of culverts and bridges, paved shoulders, and road safety audits. The project uses hybrid annuity contracts with a seven-year performance-based maintenance period to increase private participation and ensure asset quality, and it includes institutional capacity strengthening of the implementing public works department.