NDB, Government sign $646 million loan pact for State Highway & District Road Network in Andhra Pradesh

The union government, state government of Andhra Pradesh, and New Development Bank (NDB)  signed two loan agreements of $323 million each on Wednesday to fund the Andhra Pradesh Roads and Bridges Reconstruction Project and the Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Project.

The projects are aimed at improving the 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.

The projects will be implemented by the Government of Andhra Pradesh through the Roads and Buildings Department.

The agreement was signed by Baldeo Purushartha, Joint Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India,  M. T. Krishna Babu, Principal Secretary, Transport, Roads and Buildings Department on behalf of the Government of Andhra Pradesh and Xian Zhu, Vice President, and Chief Operations Officer on behalf of the NDB.

Signing the agreement on behalf of NDB, Vice President Xian Zhu said, "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."

"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," said Baldeo Purushartha.