The legal agreements to this effect were signed by Shri Govind Mohan, Joint Secretary, Ministry of Finance on behalf of Government of India and by Shri Hun Kim, Country Director, on behalf of ADB. Shri Shambu Dayal Meena, Secretary, UDD, Government of Karnatka and Shri Arvind Shrivastava, Managing Director, KUIDFC signed the agreement on behalf of the Government of Karnataka and KUIDFC respectively.

This is the second tranche of the overall Investment Programme for a total loan amount of US $ 270 million. The first tranche for a loan amount of US $ 33 million was signed on 23rd January, 2008 and the same is presently ongoing. Tranche 2 of the Programme will assist the participating Urban Local Bodies (ULBs) in rehabilitating existing and constructing new urban infrastructure facilities which comprise sewerage & drainage systems, water supply systems, infrastructure works in slums & community development programmes and construction of non-municipal infrastructure involving construction of fire station & quarters for firemen, district information centres and tourism facilities. Tranche 2 will also support the institutional reforms for the participating ULBs. ULBs included are Badami, Basavakalyan, Bellary, Belgaum, Bidar, Bijapur, Chamrajnagar, Davangere, Dharwad, Gadag-Betagiri, Gangawati, Gokak, Gulbarge, Haveri, Hospet, Hubli, Likal, Jamkhandi, Koppal, Nippani, Rabkavi Banhatti, Renebennur, Shahbad, Sindhnur and Yadgir.