New Delhi, Feb 23: The Indian Finance Ministry would get a credit of USD 84 million from the Asian Development Bank (ADB) to enhance the water supply in the Bhagalpur and Gaya districts of Bihar.
The Tranche 2 loan is part of the USD 200 million Multi-Tranche Financing Facility (MFF) for Bihar Urban Development Investment Program that was accepted by ADB in 2012. This is to provide sustainable urban infrastructure and services in four towns - Bhagalpur, Gaya, Darbhanga, and Muzaffarpur.
The project 2 will enhance access to better quality and maintainable water supply, for individuals of Bhagalpur and Gaya.
It will likewise advance better water administration hones that will bring about an all-inclusive scope with the 24-hour continuous supply of treated water in the two urban areas.
Further, credit accounts will bolster common works sub-extends and would profit 1.1 million individuals in two task towns with an expanded scope of treated water supply by 2021.
It will likewise support to train 400 urban local body (ULB) staff in the administration and task and support (O&M) of water supply frameworks and enable ULBs to enhance specialized and money related administration of the water supply activities.
Bhagalpur and Gaya would accomplish the national urban administration objectives or match a large number of the national midpoints for urban administration conveyance execution in India.
The speculation program will help ULBs in planning reasonable duties for O&M cost recuperation.
Ministry of Finance expressed that the credit will have a 25-year term, including a grace period of five years, an annual interest rate is decided as per ADB's loaning office in view of the London interbank offered rate (LIBOR), and a commitment charge of 0.15 percent for every year.