The World Bank and the government today signed a loan pact under which the multi-lateral lending institution will provide USD 175 million to fund a second highways project in Gujarat.
"The loan agreement for World Bank (IBRD) assistance of USD 175 million for second Gujarat State Highways Project (GSHP-II) has been signed between the Government of India and the World Bank," said a Finance Ministry release.
The loan agreement, signed between Nilaya Mitash, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, and Onno Ruhl, Country Director (India), World Bank will help modernise highways financing and institutions, and improve asset management performance among others.
It will also help improve the road safety management framework in the state as well as access to some of the poorer tribal regions.
The project agreement was signed by P P Vakharia, Chief Engineer, Roads & Building Department, on behalf of the state government of Gujarat.
"The project would directly improve the condition, capacity and safety of about 625 kilometres (km) of the 6,444 km core state road network. Local businesses and inhabitants in the area of influence of the project roads as well as users of the project roads will be direct beneficiaries of the project," it said.
The roads identified for improvement of the project pass through 16 districts with a population of 3.8 crore.
The loan will be extended for a period of five years. It will be implemented by state government's Department of Roads & Building.
