The Project will be implemented under the state sponsored program known as Mukhya Mantri Gram Sampark Yojana of the Government of Bihar (GoB). The scheme aims to construct 37,908 km of rural roads in the state, providing connectivity to habitations with population between 250 and 499 that are not covered under the PMGSY program. NDB’s loan will be used to construct a total of 4,000 km of rural roads spread across 26 districts in the state, which will benefit about 3,400 habitations.

The objective of the Project is helping the State of Bihar to enhance local connectivity and improve the state’s transportation infrastructure through constructing and upgrading rural roads with total length of 4,000 km, spreading across 26 districts in the state. The NDB will support the Project through a Multi-tranche Financing Facility with a total loan amount of USD 350 million. The rural roads proposed for NDB’s loan were selected under the Mukhya Mantri Gram Sampark Yojana Program by the Government of Bihar, using a prioritization matrix with parameters including: i) total beneficiary population; ii) traffic on the road; iii) connectivity to national highways, state highways and district roads; iv) connectivity to socio-economic centers and district headquarters.

The Project is being implemented in multi-tranche and second tranche is expected to be completed by 2025. The procurement for the Project will be conducted through a competitive and transparent bidding process.

The Project will bring benefits of improved connectivity and access to economic, social and educational centers for the rural population of Bihar, therefore enhancing farm productivity, and increasing income and economic growth for the populace in the interior regions of the state of Bihar. The Project is categorized as “B” in accordance with the NDB Environment and Social Framework with limited adverse social and environmental impacts. The adverse impacts are site specific and temporary.