Question 1604

In September 2025, an international multilateral development bank extended financial assistance to strengthen urban infrastructure and climate adaptation capabilities across multiple district headquarters in a northeastern state. Which development bank approved a USD 125 million loan for this Assam-focused urban transformation project?

Answer

Asian Development Bank

Why?

The correct answer is Asian Development Bank. In News Asian Development Bank approved USD 125 million loan for the Assam Urban Sector Development Project to enhance urban services and climate resilience. Key Points Asian Development Bank sanctioned USD 125 million loan specifically for the Assam Urban Sector Development Project aimed at comprehensive urban infrastructure transformation. The project covers six key district headquarters including Barpeta, Bongaigaon, Dhubri, Goalpara, Golaghat, along with Assam's capital city Guwahati. Primary objectives include strengthening urban infrastructure systems and building climate resilience against Assam's vulnerability to floods and natural disasters. Initiatives encompass improved water supply networks, enhanced sanitation facilities, and the development of disaster-resilient urban infrastructure across covered cities. The project addresses critical urban service gaps in Assam's growing district headquarters, supporting sustainable urbanisation and improved quality of life. ADB financing enables Assam to implement international best practices in urban planning, climate adaptation, and sustainable infrastructure development. Additional Information ADB provides concessional loans and technical assistance to developing member countries for infrastructure, poverty reduction, and sustainable development projects. Established in - 1966 HQ - Manila, Phillippines Assam faces significant climate risks due to the Brahmaputra river flooding requiring specialised urban infrastructure resilient to extreme weather events. Urban sector development projects typically include integrated solutions for water, sanitation, solid waste management, and urban mobility improvements. District headquarters serve as growth centres in India's urbanisation strategy, requiring planned infrastructure development to support economic expansion. Climate-resilient urban planning incorporates flood-resistant designs, green infrastructure, and early warning systems in vulnerable geographies.