India, ADB sign USD 346 million loan to improve state highways in Karnataka

India and the Asian Development Bank (ADB) on August 30, 2018 signed a USD 346 million loan agreement to finance improvement of over 400 kilometres of state highways under the KSHIP-lll Project.

The loan agreement was signed by Sameer Kumar Khare, Joint Secretary (Fund Bank and ADB) in the Department of Economic Affairs, Union Ministry of Finance, and Kenichi Yokoyama, Country Director of ADB's India Resident Mission.

A separate project agreement was signed by Naveen Raj Singh, Chief Project Officer of KSHIP on behalf of Karnataka Government.


The Karnataka State Highways improvement lll Project (KSHIP-lll) will enhance connectivity and access to economic centres across 12 districts in Karnataka.

The state highways will provide a crucial link to population and economic centres, and will promote economic activities and foster inclusiveness.

Highlights of the Karnataka State Highways improvement lll Project (KSHIP-lll)

This KSHIP-lll project will upgrade about 419 kilometres of state highways to two- and four-lane with paved shoulders; and will reconstruct, widen, and strengthen culverts and bridges.

The key element of the project is the use of hybrid annuity contracts to increase the participation of the private sector and improve the quality of road assets with performance-based maintenance period of 7 years post-construction.

It will carry out a road safety audit to identify and mitigate critical accident blackspots across the state highway network and strengthen the institutional capacity of the Karnataka Public Works, Ports, and lnland Water Transport Department.


• ADB, based in Manila, is dedicated to reduce poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

• An ongoing road improvement project, financed by ADB with a loan of USD 315 million, is already under implementation, which involves upgradation of about 615 kilometres of roads.

• This new loan will continue ADB support to Karnataka's road improvement program and help stabilise institutional capacity, and improve road safety.


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