Thursday, September 1 2005 17:28 Hrs (IST) - World Time -

New Delhi: Asian Development Bank (ADB) will double its assistance to India to more than 2.5 billion US dollars annually in the next three years and was open to consider funding the ambitious 'Bharat Nirman' programme.

"ADB is prepared to step up support significantly in coming years. Annual lending would be increased to 2 and beyond 2.5 billion USD during 2006-08. ADB may lend 6.5-7 billion USD in next three years," Bank president Haruhiko

Kuroda told reporters after his meeting with senior leaders including Prime Minister Manmohan Singh yesterday (Aug 31, 2005).

ADB's loan assistance would be 1.5 billion USD this year, which would go up to 2 billion USD next year and 2.5 billion USD in 2007. It would be more than 2.5 billion USD in the subsequent years.

ADB would like to cooperate with other multi-lateral institutions like World Bank to fund India's infrastructure development, Kuroda said, adding the bank has set up a joint work force to speed up implementation of the bank-funded projects.

He said the bank was willing to fund both urban and rural infrastructure projects.

"Rural and urban development are complementary. Both should be fostered by government," he said.

The ADB chief stressed on Public-Private Partnership (PPP) model to boost infrastructure sector and said, "ADB is here to cooperate with government on this."

The bank would also open to provide technical assistance to the government for PPP projects, he said.

ADB also discussed the Viability Gap Funding of mega projects, he said, adding, "ADB is open to discuss any new way of funding infrastructure projects."

Kuroda called on President APJ Abdul Kalam and Prime Minister Manmohan Singh, besides met with Planning Commission Deputy Chairman Montek Singh Ahluwalia, Finance Minister P Chidambaram, Power Minister P M Sayeed and Shipping, Road Transport and Highways Minister T R Baalu.