MANILA (AFP) — The Asian Development Bank (ADB) has approved an extra 71 million dollars for an urban water project in India to cover costs after it became held up, the Manila-based lender said Tuesday.
It extended a 181 million dollar loan in March 2005 for the project in Madhya Pradesh state to build water and sewerage systems in the cities of Bhopal, Gwalior, Indore and Jabalpur.
But delays in awarding contracts, the appreciation of the Indian rupee and price increases drove the cost of the project up.
"Without the additional funding, the project in its original scope cannot be completed, and the integrity of the urban infrastructure system for water supply, sewerage, and waste disposal will be severely undermined," ADB economist Hiroyuki Ikemoto was quoted as saying.
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