Manila, Philippines (BBN)- The Asian Development Bank (ADB) is extending a $150 million multitranche financing facility to help India’s National Capital Region (NCR) accelerate plans to build urban infrastructure.
ADB’s Board of Directors has approved the India National Capital Region Urban Infrastructure Financing Facility, which will provide funds in two or more tranches, an ADB announcement said on Wednesday.
It will extend long-term finance for improved urban services, while helping to encourage private investor interest, and support for a regional rather than city-centric approach to development, according to the statement.
The first tranche loan of $78 million will have a 25-year term, including a 5-year grace period, and an annual interest rate determined in accordance with ADB’s LIBOR-based lending facility.
An additional $50 million will be provided by the NCR Planning Board for targeted investments. The Planning Board is the executing agency for the investment program, which is expected to be completed by June 2017.
India’s economy has been growing at one of the fastest rates in the world in recent years, fuelled by its booming cities, but municipal governments have struggled to keep pace with the demand for services because of financing and capacity constraints.
BBN/SI/AD-11Aug10-1:24 pm (BST)