World Bank inputs sought for mega highway projects

World Bank inputs sought for mega highway projects
The Hindu Business Line, December 03, 2009, Page 15

The World Bank President, Mr Robert B Zoellick, calling on the Union Finance Minister,Mr Pranab Mukherjee, in the Capital on Wednesday. - Kamal Narang

Our Bureau, New Delhi

The Road Transport and Highways Ministry would like to consult World Bank for technical, financial and legal inputs for the identified mega highway projects of the National Highways Authority of India and the proposed Expressways.

The Union Road Transport Minister, Mr Kamal Nath, said this here today after a meeting with World Bank President, Mr Robert Zoellick.

The meeting also had industry participation from companies including GMR, GVK, IL&FS, IRB Infrastructure.

“The World Bank is willing to look at funding the viability gap and (build-operate-transfer) annuity projects…not only in terms of financing but institutional support as well,” Mr Kamal Nath told reporters. Till date, World Bank funds projects on an EPC basis.

The World Bank is willing to partner NHAI in doing a review of PPP projects (BOT-Annuity and viability gap funding based) and to identify projects amenable for utilising bank lending support, an official release informed. Among the issues discussed at the meeting included a proposal for seeking World Bank loan assistance for up-gradation of 6376 km of National Highways.

The proposal envisages development of existing single/intermediate lane National Highways, which are not covered under any other development scheme, to two lane standards.

Mr Nath also said that a World Bank team would be visiting India in January 2010 to identify the project in a more detailed manner.