AIIB & India Sign USD 455 Million Loan To Improve Rural Connectivity In Andhra Pradesh
The Asian Infrastructure Investment Bank (AIIB) and the Government of India signed a USD 455 million loan in New Delhi to finance the Andhra Pradesh Rural Roads Project, which will connect some 3,300 habitations with a population of more than 250, and benefit around two Million people.
The objective of the Project is to improve road transport connectivity in previously unserved communities by providing all-weather rural roads in all 13 Districts of the State of Andhra Pradesh. The Project plans to construct rural roads to provide first connectivity, construct cross drainage works and bridges to complete missing links and structures, provide approaches to educational institutions and health care centres, construct rural roads passing through tribal areas, and upgrade earthen/gravel roads to asphalt-based roads.
The Project is likely to improve the life of a common man living in the remote and isolated areas in the State of Andhra Pradesh.
Andhra Pradesh Rural Roads is the Third Project being signed by the AIIB in the State of Andhra Pradesh, the other two being in Power Sector and Water Sector. AIIB is very keen to support more such Projects in India in various sectors”, said Ms Supee, Director General, Investment Operations Department, AIIB.
The successful completion of the Project will result in increased agricultural productivity and industrial development (agro-industries, in particular) through improved connections to markets with more favourable prices for agricultural inputs and outputs. Also, it will reduce travel time and hence giving better access to schools and hospitals for the rural population, resulting in improved healthcare and increase in literacy levels. Better access roads to habitations also will result in setting up of more schools and healthcare centres around the habitations (which are considered unviable by service providers without such roads), resulting in further improvement of healthcare, literacy levels and overall quality of life.
The Asian Infrastructure Investment Bank (AIIB) is a Multilateral Development Bank, headquartered in Beijing, which began operations in January 2016. The Republic of India is the Second Largest shareholder in the AIIB and its Largest borrower.