India inks $346 million loan agreement with ADB to improve State Highways in Karnataka

India has inked $346 million loan agreement with Asian Development Bank (ADB) to finance Karnataka State Highways Improvement III Project (KSHIP-III) for improvement of over 400 km of state highways in Karnataka. This will help in enhancement of connectivity and access to economic centres across 12 districts in Karnataka.

Karnataka State Highways Improvement III Project (KSHIP-III)

KSHIP-lll project will upgrade about 419 kilometers of state highways to two-and four-lane with paved shoulders. It will also reconstruct, widen, and strengthen culverts and bridges. Use of hybrid annuity contracts is important aspect of the project is to improve quality and sustainability of road assets with performance-based maintenance period of 7 years, post-construction.
The project will also carry out road safety audit to identify and mitigate critical accident blackspots across state highway network. It will also strengthen the institutional capacity of the Karnataka Public Works, Ports, and lnland Water Transport Department.
The ADB Financing will be in addition to ongoing road improvement project financed by ADB with loan of $315 million which involves upgradation of about 615 km of state roads. The new loan will continue ADB support to Karnataka government’s statewide road improvement programme and will also help improve road safety. This project will promote economic activities and foster inclusiveness.


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