The World Bank and the government signed a loan pact under which the multi-lateral lending institution will provide $175 million to fund a second highways project in Gujarat.
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 and Building Department, on behalf of the state government of Gujarat.
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.