3 major NE projects to be funded by ADB

Major Events Vol. 3 Issue No. 32

August 1-15, 2007

3 major NE projects to be funded by ADB

Three major projects in the North East would be funded by the Asian Develpment Bank(ADB.

The three projects are – North Eastern State Road Projects (NESRP), North Eastern Urban Development Project (NEUDP) and North Eastern States Trade Investment Creation Initiative project.

Under the NESRP, about 1,300 kms of roads will be upgraded including the construction of 5,500 metres of bridges and 4,700 metres of crossing.

The NEUDP (Phase-I) seeks to improve urban infrastructure in the five capital cities of Agartala, Aizawl, Gangtok, Kohima and Shillong, the sources said, adding that Phase-II of the project would cover Guwahati, Imphal, Itanagar and Dibrugarh.

“The trade investment creation initiative project seeks to develop a trade and investment framework that will enable the Northeastern region to participate in global and regional markets and to derive considerable gains from specialisation a nd globalisation”, according to the sources.

The ADB will also build capacities of State public work department by introducing computer-based road asset management tools and state-of-the-art project management techniques.

India, Bhutan sign pact on hydel project
India and Bhutan crossed another milestone in bilateral economic relations by signing a defining agreement on setting up a new Rs 3,500 crore hydel project that will provide power to the South Asian giant. Visiting External Affairs Minister Pranab Mukherjee and his Bhutanese counterpart Lyonpo Khandu Wangchuk inked the landmark agreement for the largest-ever hydel project to be built in the Himalayan Kingdom with Indian assistance.

The 1,095 mw Punatsangchu-I plant, a run-of-the river project, is expected to be completed in eight years to become yet another symbol of hydel power emerging as a key pillar in Indo-Bhutanese relations.

“The agreement is historic and takes mutually beneficial cooperation to greater heights,” Mukherjee told reporters on the second day of this three-day official visit to the Himalayan Kingdom.

“The hydel projects are shining examples of initiatives for mutual benefit and prosperity of India and Bhutan”.

The project that will augment the power availability in energy-starved India will be funded by the Indian

Government with 40 per cent grant and 60 per cent loan and also provides for erecting transmission lines up to the Indo-Bhutanese border.

With India committed to purchase 5,000 mw of power from Bhutan by 2020 under an agreement signed last year, Mukherjee said Detailed Project Reports (DPRs) are being prepared to construct two more hydel plants-Punatsangachu-II and Manaduchu.

India is already buying power generated from three projects built with Indian help. The projects including the Tala (1,020 MW) together account for 1,420 mw.

Interestingly, Mukherjee had signed the agreement to construct the Tala project during his visit to Bhutan in 1996 when he was the External Affairs Minister.

The capacity utilization of Tala is 100 per cent and has helped in easing the power situation in India’s eastern states.

Wangchuk said the Punatsangchu project gave a big push to the socio-economic development of the two neighbouring countries. “Today’s pact represents the most successful bilateral cooperation element in the history of our relations,” he said, adding Thimpu attached a “very high importance” in further developing its ties with New Delhi.

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