The Union Government of India and the Asian Development Bank (ADB) signed a $200 million loan agreement to develop highway infrastructure in Bihar on 26 November (2018).
The funds will be utilised to widen and upgrade around 230 km of highways in the state to all-weather standards with road safety features. This loan is part of Bihar government’s broader mission of upgrading all State Highways to meet the two-lane standard and provide better surfaces.
This is expected to help citizens save in vehicle operating costs and travel time, reduce vehicle emissions, and improve road safety across the state. It is the fifth such loan from ADB since 2008, and the bank has provided $1.43 billion to upgrade about 1,453 km of State Highways and to construct a New Bridge over the Ganga River near Patna.
Asian Development Bank, conceived in the 1960s, is a development finance institution comprising of 67 member nations, 48 of which are from the Asia Pacific region. The bank has a weighted voting structure similar to that of the World Bank, the USA and Japan hold the most substantial proportion of shares at 15.607 per cent. While China has 6.444 per cent, India holds 6.331 per cent.