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World Bank sanctions $300 million for building roads in Tamil Nadu

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By Newsgram Staff Writer

To improve the capacity, quality and safety of Tamil Nadu’s core road network, World Bank has approved a $300 million loan for the ‘Second Tamil Nadu Road Sector Project ‘.

To help the state fulfill its vision, Second Tamil Nadu Road Sector Project will address the accumulated investment needs by supporting upgradation of 1,175 km of the core road network.

The project will adopt a contracting arrangement to encourage economies of scale. It will also offer stronger incentives for performance, viz., Engineering Procurement Construction (EPC) contracts (430 km), Public Private Participation (PPP) concessions (145 km) and long-term Performance-Based Maintenance Contracts (PBMC, 600 km).

“While Tamil Nadu has made impressive economic progress, the state government recognizes the need for improving infrastructure, particularly road infrastructure, to make growth more inclusive.  Better roads will help improve access to markets, healthcare and education while creating new jobs and boosting agriculture,” said Onno Ruhl, World Bank Country Director for India.

“Rapid growth has also led to substantial increase in vehicle ownership. An important aspect of the project will be to strengthen road safety in order to bring down the number of fatalities and serious injuries from traffic accidents in the state,” Ruhl added.

The first project – Tamil Nadu Road Sector Project – supported upgrading (724 km) and maintaining (1,030 km) roads along with several initiatives to strengthen institutions as well as road safety. These included a road safety policy, a Road Accident Database Management System, a Road Safety Fund, and black-spot improvement.

During the project period, number of fatalities from road accidents per 10,000 registered vehicles reduced from 19 in 2003 to 11 in 2012. The percentage of roads in poor condition in the state’s core road network (CRN), comprising state highways and major district roads, reduced from about 35 per cent to 8 per cent. Also, the share of roads with less than 2-lane width in CRN decreased from 60 per cent to 38 per cent.

“The first project had a number of institutional successes but there is also an unfinished agenda. The project will support the Government of Tamil Nadu in implementing a more sustainable strategy involving innovative contracting structures with scope for greater efficiency, a gradual shift towards more optimal allocation of budgetary support towards capacity expansion and maintenance and a more coordinated approach to road safety at the state and field levels,” said Pratap Tvgssshrk, Senior Transport Specialist and World Bank’s Task Team Leader for the project.

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World Bank shareholders endorse capital increase plan

Following the capital increase plan announced Saturday, the combined financing arms of the World Bank

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World Bank's prompt decission to pause two seperate projects with India nad Pakistan came after India's objection against it
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The World Bank has said its shareholders endorsed a capital increase package, a series of internal reforms, and a set of policy measures to strengthen the international lender’s capabilities.

The $13 billion capital increase package includes $7.5 billion of paid-in capital for the International Bank for Reconstruction and Development (IBRD), the group’s primary lending arm, and $5.5 billion for the International Finance Corporation (IFC), the group’s private sector lending arm, said the World Bank in a statement on Saturday, Xinhua reported.

World BAnk shareholders to have better plans.

World Bank shareholders also endorsed a $52.6 billion callable capital increase for IBRD, the statement said.

“Through the historic agreement endorsed today, our shareholders have clearly demonstrated a renewed confidence in global cooperation,” World Bank Group President Jim Yong Kim said.

“This capital package allows for greater responsiveness to risks to global stability and security, particularly in poorer countries and fragile states,” Kim added.

Following the capital increase plan announced Saturday, the combined financing arms of the World Bank are expected to reach an average annual capacity of nearly $100 billion between fiscal year 2019 and fiscal year 2030, said the World Bank. Kim said at a press briefing this week that the capital increase package doesn’t target changes of loans to any specific country.

Also Read: India will become High-Middle Income Country by 2047, says World Bank CEO

“It’s about how we think about income levels and how the World Bank Group can continue to be a partner and to support all of our member countries who are still clients,” he argued. He said that the multilateral lender would increase lending to lower middle-income countries over time. IANS

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