ADB Transport Specialist for South Asia Sin Wai Chong said the project road is along the East-West Highway, which forms part of the South Asia Subregional Economic Cooperation (SASEC) corridor.
The Manila-based bank said the loan was approved on Wednesday.
The project will improve road safety through features such as junctions with traffic signals, footpaths with streetlights and tactile paving surfaces, overhead pedestrian crossings, road crossings with raised platforms, and bus stops equipped with lighting systems, the ADB said.
The ADB said it will provide additional financial support to develop climate change mitigation and adaptation guidelines for road projects, bidding documents, performance indicators, and long-term performance-based maintenance.