Manila, July 19, 2006 AEST (ABN Newswire) - An innovative US$15 million cluster grant will help strengthen Asian Development Bank's (ASX: ATB) program in India by improving the preparation of projects and developing the capacities of local government agencies to implement them.
The grant, funded by the Government of the United Kingdom, will finance the feasibility studies, due diligence, capacity development, and detailed design needs of 15 projects identified in ADB's Country Strategy and Program for India for 2006-2008.
The grant will bring all 15 projects to a higher level of project preparedness without any dilution of social safeguard requirements. By placing various projects under one cluster grant, proper quality control will be assured in the preparation and delivery of projects.
"The cluster grant will greatly enhance the quality and speed of delivery of over $3 billion of proposed infrastructure and development investment essential for sustainable growth and poverty reduction in India," says Tadashi Kondo, Country Director at ADB's Resident Mission in India.
With the average loan size in ADB's program for India increasing significantly from $148 million in 2000 to a proposed $321 million in 2006, more elaborate project preparation is required. ADB is also moving to newer, smaller, and less-developed states, which have limited financial and technical capacity to undertake detailed project design.
"The cluster grant offers the flexibility to meet diverse and fast emerging requirements, and will be relevant, responsive, and results-oriented," adds Mr. Kondo. "Also, given the wide range of executing agencies in India, a comprehensive and focused intervention such as this grant is much needed."
Among the 15 projects under the cluster grant are a proposed $250 million road development project for Madhya Pradesh, $300 million for a roads development project for Northeastern States, $200 million urban infrastructure project for Rajasthan, $300 million urban development project for Jammu and Kashmir, and $250 million agriculture and water management project for Orissa.
The Department of Economic Affairs in the Ministry of Finance is the executing agency for the cluster grant, which will be carried out over two and a half years to December 2008.
Contact
Omana Nair
Email: onair@adb.org
Tel:+632 632 5178; Mobile: +63 918 914-7003
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; +632 898 3413; Mobile: +63 920 938-6487
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