India signs loan with Asian Development Bank (ADB) for improvement and expansion of water supply in Bihar
The Government of India (GoI) and the Asian Development Bank (ADB) have signed a $84 million loan for improvement and expansion of water supply in Bhagalpur and Gaya towns in Bihar. This is the second tranche of ADB’s $200 million Multi-tranche Financing Facility (MFF) for Bihar Urban Development Investment Programme, which was approved in 2012. The Project 2 will improve access to better quality and sustainable water supply, for the people of Bhagalpur and Gaya towns. It will also promote better water management practices that will result in a citywide coverage with 24-hour uninterrupted supply of treated water of 135 litres per capita per day in both cities. The loan will have a 25-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s lending facility based on the London Interbank Offered Rate (LIBOR), and a commitment charge of 0.15% per year.