Thursday, September 17, 2009

World Bank to provide $3 bn for road projects

The World Bank has agreed to provide a USD 3 billion-loan for developing national highways. The World Bank assistance will be utilised for converting 6,372 km of one-lane highways to two-lane, out of the total of 19,702 km of single lane highways in the country. "They have (World Bank) for the first time informed me that they will be willing to fund the viability gap funding and also fund 50 per cent of our annuity projects," Nath said after concluding his week-long tour to the United States on Wednesday.

Nath also announced the construction of 18,000 kms of expressways in the country. "We are going to set up an expressway division in the next fortnight and I propose bringing in legislation for Expressway Authority of India," he said. "Roads in India are not merely a matter of connectivity but is an important component of inclusive growth," he said, adding the total project costs for 2009-2010 is estimated at USD 20 billion.

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