To enhance connectivity and access to economic centres across 12 districts in Karnataka, India has signed a loan agreement worth $346 million with the Asian Development Bank (ADB) to improve over 400 km of state highways in the state.
The agreement was signed between Sameer Kumar Khare, Joint Secretary (Fund Bank and ADB), Department of Economic Affairs in the Ministry of Finance, Thursa and Kenichi Yokoyama, Country Director of ADB’s lndia Resident Mission on Thursday.
“State highways provide a crucial link to population and economic centres, and support for the development of the state highway network in Karnataka through this project will promote economic activities and foster inclusiveness,” said Khare after signing the agreement.
Under the Karnataka State Highways lmprovement III Project, 419 km of state highways will be upgraded to two- and four-lane with paved shoulders.
According to the government, the project features the use of hybrid-annuity contracts to increase the participation of the private sector and improve the quality and sustainability of road assets with performance-based maintenance period of seven years, post-construction. Under the project, a road safety audit will also be carried out.
Karnataka is already implementing a road improvement project involving 615 km of roads aided by a $315 million loan provided by ADB.