The Asian Development Bank (ADB) will provide $75-million loan and $1.8-million grant to help improve water resource management in three towns of Karnataka in the Upper Tunghabadra sub-bhasin.
The loan from the ADB's ordinary capital resources has a 25-year term, including a grace period of five years.
The first tranche of the loan under the Karnataka Integrated Urban Water Management Investment Programme will help expand urban water supply and sanitation infrastructure, improve water resource planning, monitoring and service delivery, and strengthen operational and administrative capacity in the three towns of Byadagi, Davanagere and Harihar.
Tarun Bajaj, Joint Secretary, Department of Economic Affairs in the Finance Ministry, signed the agreement on behalf of the Indian Government, and Rajeev Singh, Officer-in-Charge of ADB's India Resident Mission, signed the agreement on behalf of ADB.
The project agreement was signed by D Chandrashekariah, Joint Director, Planning, Urban Development Department, Government of Karnataka on behalf of the Karnataka Government, and Darpan Jain, Managing Director, Karnataka Urban Infrastructure Development & Finance Corporation Ltd (KUIDFC) on behalf of KUIDFC.