The Asian Development Bank (ADB) and the Government of India has signed a $490 million loan. The loan is signed for public-private partnership (PPP) project through the hybrid-annuity model (HAM) to upgrade about 1,600 km of state highways and major district roads in the state of Madhya Pradesh. An additional $286 million investment will be mobilised through private sector participation under the PPP modality. The upgradation of these roads under the project will improve rural and peri-urban connectivity in the state and improve access to markets and better services.
The HAM is a mix of engineering, procurement, construction, and build-operate-transfer. This passes the responsibility of design, implementation, and operation and maintenance obligations to the private sector, while attracting some private sector financing.
Important takeaways for all competitive exams:
- Asian Development Bank Headquarters: Manila, Philippines, President: Takehiko Nakao.
Source: The Press Information Bureau