Why in news? India and  Asian Development Bank (ADB) sign $125 million loan to improve Urban Services in Tamil Nadu

Highlights

• Loan to develop climate-resilient sewage collection and treatment, and drainage and water supply systems in three cities in the state of Tamil Nadu.
• The tranche 3 loan covers Coimbatore, Madurai, and Thoothukudi.
• In Thoothukudi, climate-resilient stormwater drainage system will be developed.

About Asian Development Bank

• Formation : 1966
• Type: Multilateral Development Bank( Regional)
• Legal status: Treaty
• Purpose: Social and Economic Development
• Headquarters: Mandaluyong, Philippines
• Region served: Indo- Pacific
• Membership: 68 countries
• President: Masatsugu Asakawa
• Admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and non-regional developed countries.
• Voting system : Distributed in proportion with members capital subscriptions.
• ADB is an official United Nations Observer
• Proportion of shares: Japan and the United States each holds the largest proportion of shares followed by China ,India and Australia
• Financing: Hard” loans on commercial terms primarily to middle income countries in Asia and “soft” loans with lower interest rates to poorer countries in the region.