World Bank to provide $216-mn loan for Kerala transport project
20 June 2013
The World Bank (IBRD) has signed an agreement with the government of India / government of Kerala for assistance of $216 million (approximately Rs1,268 crore) for the second Kerala State Transport Project in New Delhi today.
The loan agreement was signed by by Nilaya Mitash, joint secretary in the department of economic affairs on behalf of government of India and Onno Ruhl, country director, World Bank (India) on behalf of the World Bank. The project agreement was signed by T O Sooraj, secretary, Public Works Department on behalf of the government of Kerala.
The project aims at improving road conditions, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala.
The project will include upgrading 363 km of strategically important state highways to complete network connectivity in the state with the objective of reducing travel time between key socio-economic centers.
It will also support the strengthening of the road safety management systems in Kerala with the objective of arresting the increase of crash fatalities in the state. This component will finance various initiatives building on the work already undertaken during the first project including a safe corridor demonstration project, implementation of a local level challenge fund, and advisory support for road safety activities.
The project also aims at improving the sustainability of Kerala's state road network with respect to its functional adequacy, financial viability and capacity of key state road sector institutions to deliver road infrastructure and services that are responsive to road user needs.
The projects will be implemented over a period of six years.