India has agreed to donate USD 6.7 million to the African Development Bank (AFDB) to conduct studies on the development projects in the continent.
"India has committed a support of USD 6.7 million to the African Development Bank for the study of development projects in Africa," a senior finance ministry official told PTI.
The funding support will take effect from January 1, 2011 and will extend over a period of three years.
The Tunis-based AFDB said the donation will enable the regional development bank to conduct studies in the transport sector, particularly in the field of railways.
"There is also the field of telecommunications, higher education and private sector development," AFDB vice president
Aloysius Ordu said in a statement.
The signing of the protocol between AFDB and the Indian government in Abidjan recently, aims both to strengthen South-South relations and to diversify the funding partners of the bank.
Ordu said India can be of critical support in AFDB's efforts to help African countries attain development as it has achieved significant progress in the field of economic growth
and democratic governance in the recent decades.
Joint secretary at the Finance Ministry Anup Pujari, who initiated the agreement on India's behalf, said it has helped in strengthening the relation between India and Africa.
"Several areas of intervention are identified, but the allocation of funds will be left to the discretion of the AFDB, which may be used depending on the needs and priorities," Pujari said.
It is the second donation of its kind. The earlier grant was of USD 3.3 million, AFDB said.