Centre eyes Rs 15k-cr line of credit from WB for roads

Centre eyes Rs 15k-cr line of credit from WB for roads
The Financial Express, September 11, 2009, Page 3

fe Bureaus, New Delhi

The surface transport ministry, which aims to attract foreign investments worth $10 billion globally in the next two years, is planning to arrange a line of credit worth Rs 15,000 crore from the World Bank to upgrade around 6,000 km of single-lane highways to two-lane stretches, a move that will provide connectivity to the rural and backward areas.

“Some of our national highways in states such as Bihar, MP and Jharkhand are single lanes. To convert them to two lanes, we are proposing a project of Rs 15,000 crore to the World Bank. This fund will be dedicated to upgrade single-lanes to two-lane because 19,702 km of national highways are single lanes. Of this, we plan to cover 6,376 km. This will be an economic stimulus to these areas because single-lane roads are present in the most backward areas,” said Kamal Nath, who will be leaving on a seven-day visit to the US on Friday to meet World Bank chief and address investors there.

He said the loan will be tied up in six months time. On the mode of awarding contracts and funding to upgrade the two highways, Nath added, “The contracts will be provided on engineering procurement contract basis. 80% of the financing for the project is debt and we will be pumping the balance 20% on our own.”

A top ministry official said the balance 20% of the funding will be met from the plan provision of the ministry, which has already been approved.