India is committed to sustainable development and inclusive growth
The Government of India, the Government of Andhra Pradesh, and the New Development Bank (NDB) today signed loan agreements of up to USD 323 million each for two projects. The first project – Andhra Pradesh Roads and Bridges Reconstruction Project – comprises widening 1,600 km of State Highways to double lane and reconstructing dilapidated bridges on the State Highway network. The second project – Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Project – comprises widening 1,400 km of district roads to double lane and reconstructing dilapidated bridges on the district road network. The Government of Andhra Pradesh will implement the Projects through the Roads and Buildings Department.
The two projects are expected to improve mobility and connectivity to the socioeconomic centres, enhance transport efficiency, improve road safety and riding quality, and provide all-weather accessibility for the State's road users. The projects would increase the roads' daily traffic capacity to 15,000 passenger car units, which is expected to meet the projected traffic growth over the next 20 years.
The agreement was signed by Shri Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India, Shri M. T. Krishna Babu, Principal Secretary, Transport, Roads and Buildings Department on behalf of the Government of Andhra Pradesh and Mr. Xian Zhu, Vice President, and Chief Operations Officer on behalf of the NDB.
"India is committed to sustainable development and inclusive growth," said Shri Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India. "The projects will contribute to the development of state infrastructure, enhance road connectivity and safety, and provide connectivity between adjoining Mandal headquarters and rural areas. The projects will also have a positive impact on employment generation and economic well-being."
"The projects will expand the capacity of roads with high vehicular traffic, improve last-mile connectivity to ports and industrial hubs and enhance connectivity to rural areas contributing to the enhanced socioeconomic development of the State of Andhra Pradesh. NDB funding shall help to bridge the funding gap for road infrastructure development and will support the Government of Andhra Pradesh in its goal to enhance connectivity between socioeconomic centres" said Mr. Xian Zhu.
The NDB was established based on the Inter-Governmental agreement among the BRICS countries (Brazil, the Russian Federation, India, China, and South Africa) signed on July 15, 2014. The Bank's purpose is to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries. The tenor of each loan is 32 years, including a moratorium period of 5 years.