The Asian Development Bank (ADB) is set to provide a $490m loan towards improving 1,600km of state highways and major district roads in the Indian state of Madhya Pradesh.

The private sector will contribute $286m towards the $904m public-private partnership (PPP) project, while the government will provide $128m.

The project is scheduled for completion in May 2024.

ADB South Asia transport specialist Kai Wei Yeo said: “Increasing the capacity of the Madhya Pradesh road network will not only improve road conditions and safety but raise living standards by enabling better access to markets and better services.

“This project also introduces PPP arrangements through the hybrid-annuity model in Madhya Pradesh to bring private sector efficiencies for sustainable asset creation and maintenance.”

Under the Madhya Pradesh Road Sector Project PPP, at least 750km of state highways and 850km or major district roads will be upgraded to two-lane and all-weather standards, as well as the addition of new road safety features.

An e-maintenance system will be developed to record defects or required maintenance.

The project also includes a training programme to build capacity on contract implementation and project finance in the Madhya Pradesh Road Development Corporation.

The Madhya Pradesh Government plans to connect all of the region’s busy areas by two-lane roads and all villages by all-weather roads. This is in line with the Indian Government’s agenda to redevelop the state’s road network.

This September, ADB signed an agreement to provide a loan of $200m to enhance road infrastructure in Maharashtra.

ADB has contributed five loans to the government since 2002 to develop its road network, improving approximately 7,300km of roads or roughly 11% of the total network.