India, ADB sign USD 200 million loan agreement to improve highways in Bihar

The Asian Development Bank (ADB) and the Union Government on November 26, 2018 signed a USD 200 million loan agreement to finance widening and upgrading of about 230 kilometers state highways in Bihar to all-weather standards with road safety features.

This loan agreement for the Bihar State Highways III Project (BSHP-III) was signed by Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Union Ministry of Finance and Rajeev P Singh, Officer in-Charge of ADB's India Resident Mission.

The Bihar State Highways III Project agreement was signed by Vipin Kumar, Resident Commissioner of Bihar and Chandra Shekhar, Chief General Manager of Bihar State Roads Development Corporation Limited.

Bihar State Highways III Project (BSHP-III)

The project involves upgrading State Highways to standard two-lane width with road safety features and paved shoulders including reconstructing, widening, and strengthening culverts and bridges.

The Project will also build institutional capacity of the State for road design and maintenance and incorporate appropriate new technologies in the State's road sub-sector.

The improved roads will contribute to savings in vehicle operating cost and travel time, reduce vehicle emissions, and improve road safety.

It will establish a State-level Road Research Institute to improve technical and management capacity of the Road Agency Staff.

The loan will complement the efforts of Bihar Government to upgrade all State Highways to meet the minimum two-lane standard with better surfaces and improved road safety.


This BSHP-III project was approved by the ADB Board in October 2018. This loan is in continuation of ADB's support in the development of the road sector in Bihar.

Since 2008, ADB has provided four loans to Bihar, amounting to USD 1.43 billion, to upgrade about 1453 km of State Highways and to construct a new bridge over the Ganga River near Patna.

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