$400 Million Road Development Loan from WB to Uttar Pradesh, India
The Government of India, Government of Uttar Pradesh and the World Bank signed a $400 million loan agreement to help the state of Uttar Pradesh design and build green highways resilient to climate change
The loan will strengthen, upgrade and maintain about 500 kms of the state’s core road network of state highways, including measures to reduce crashes and fatalities.
The Uttar Pradesh Core Road Network Development Project will help the state’s Public Works Department (PWD) to design and build green highways which are resilient to the effects of climate change. It will also strengthen the PWD’s capacity to identify issues on road safety, improve traffic flows and reduce fatalities on congested district and state highways.
Employment opportunities for women are expected to increase as all civil works contracts drawn-up under the project will require contractors to hire females for at least 30 percent of the routine maintenance works.
Contractors will be encouraged to recycle and use local materials in construction, grow plantationsInfrastructure development, and in particular roads, is a priority for the Government of India,” said Sameer Kumar Kharevelopment, and in particular roads, is a priority for the Government of India,” said Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance. “The UP-Core Road Network Project will help Uttar Pradesh develop an efficient road network which will help integrate the less developed regions in the state and accelerate agricultural and industrial growth.”
The loan agreement was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, on behalf of the Government of India; Girijesh Kumar Tyagi, Special Secretary, PWD, on behalf of the Government of Uttar Pradesh; and Junaid Ahmad, Country Director, India on behalf of the World Bank.
Uttar Pradesh (UP) is one of the largest states in India, with a population of nearly 220 million and an average GDP growth rate of 6.5 percent over the last decade.
Even though rural connectivity has been improving in the state, the condition of the state highways and major district roads, which link the rural road network and the national highways, has not improved at the same pace. “Building safe and efficient core road infrastructure is critical for economic growth” said Junaid Ahmad, Country Director, World Bank.re road infrastructure is critical for economic growth” said Junaid Ahmad, Country Director, World Bank. “The World Bank support to the state of Uttar Pradesh will help build a high-quality, resilient, safe and sustainable road network in the state. This will strengthen the state’s human capital through better access to health, education and employment opportunities that will help alleviate poverty.”
The $400 million loan from the International Bank for Reconstruction and Development (IBRD), has a 6-year grace period, and a final maturity of 24 years.
The project will support training and capacity building for PWD staff on asset management, contract management, social and environmental safeguards, road safety and climate resilient road designs through domestic training courses, workshops and knowledge exchange visits.
Given the socio-economic costs of road deaths, a major focus will be on strengthening the road safety policy of the state government. It will build capacity of the agencies responsible for road safety within the state to develop accident data management systems, strengthen the road safety cell and help establish a highway police for the first time in the state. Targeted interventions to change road users’ behavior will be used to achieve visible and measurable reductions in traffic fatalities. This will be facilitated through improved police enforcement and social marketing measures on high-risk national and state highways.
