The AIIB, which currently has 64 member states, took the decision to invest the amount in India at a meeting held at its headquarters in Beijing, China.
Representational Image. (Photo: iStock)
The Asian Infrastructure Investment Bank (AIIB) has decided to invest $140 million to develop, improve and manage rural roads in Madhya Pradesh. The project will benefit around 1.5 million rural residents of about 5,640 villages who use the roads for commutation.
Besides mobility, the project will also improve the livelihoods and education in the rural areas of the BJP-ruled state. The project will be co-financed by the World Bank.
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The AIIB, which currently has 64 member states, took the decision to invest the amount in India at a meeting held at its headquarters in Beijing, China.
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“Livelihoods of the rural population will be improved by expanding income earning opportunities through better farm-to-market road connections,” said the Finance Ministry in a statement.
Improved roads will help more children to not only attend schools regularly but also help them enroll in higher education programs.
According to the ministry, the road maintenance pilot under the project will employ more women, contributing to gender equality and income generation.
The work to be undertaken as part of the project includes upgrading of the gravel roads to a sealed surface standard and enhancing institutional capacity through implementing/upgrading a rural road asset management system.
The project also aims to improve durability and accessibility, and enhance resilience to climate change of the gravel surfaced rural road while building the state government’s capacity to manage its rural road network and road safety, the Finance Ministry statement reads.
A comprehensive road safety program and developing of road safety management capacity with road accident data management system are also among the works.
“Promoting sustainable growth in India through investment in rural infrastructure will require substantial financing,” said AIIB vice-president and chief investment officer DJ Pandian.
“I am glad that AIIB’s participation in this project will contribute to reducing this financing gap and enhance overall development in the region,” he added.
AIIB director general of investment operations Supee Teravaninthorn said that this Project will provide sustainable and safe last-mile connectivity to small villages and improve mobility of the rural population of Madhya Pradesh.
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