New Delhi, June 1 (ANI): The Indian Government and the World Bank have signed a 350 million dollar loan to accelerate the development of Karnataka's core road network through the Second Karnataka State Highway Improvement Project (KSHIP II).
The agreements for the Second Karnataka State Highway Improvement Project (KSHIP II) were signed by Venu Rajamony, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; Dr Subhash Chandra Khuntia, Principal Secretary, Public Works, Ports and Inland Water Transport Department, on behalf of the Karnataka Government; and Mr. Hubert Nove-Josserand, Operations Adviser for India on behalf of the World Bank.
The signing was witnessed by Karnataka Chief Minister B. S. Yeddyurappa and Public Works Minister C.M.Udasi.
Speaking on the occasion, Yeddyurappa said: "The Government of Karnataka has identified about 25,000 km of the most important traffic corridors and designated them as the state's core road network. Accelerating the development of this Network is critical for Karnataka's economic growth and for ensuring a balanced development throughout the state."
Minister Udasi congratulated the project team and the World Bank, and thanked the Government of India for making the project a reality.
He said: "While the project will help in partly achieving the objective of improving the State's core road network, it will also show the way of how innovative methods can be adopted for speeding up the process of attending to the larger core network"
According to the latest road condition survey, 39 percent of the core road network in the state requires improvement to bring it into good or fair condition. At the same time, vehicular traffic has been rapidly growing at the rate of 10 to 15 percent per year over the last decade, the survey says.
Ten percent of allRelatively larger number of road accidents in India occurs in Karnataka and the number of fatalities has increased by 55 percent since 2000 to reach a rate of 140 per 100,000 vehicles in 2009, compared with rates like nine in the UK, 15 in USA and 70 in Brazil and China. The high fatality rate in Karnataka is attributed to a lack of effective road safety management and enforcement system.
"For the government, iImproving infrastructure, including road transport, is key to sustaining growth and bridging regional disparities. This loan from the World Bank, introduces an important innovation by we hope, will helping the Government of Karnataka leverage private sector financing through economically viable Public Private Partnerships (PPP) and thereby in accelerating the development of their state highways," said Rajamony.
The Second Karnataka State Highway Improvement Project (KSHIP II) will help upgrade 1,231 km of roads into two-lane highways designed to facilitate better movement of people and goods; support the Government of Karnataka diversify its financing base by leveraging this loan to attract private sector funds through the PPP mode and through co-financing with domestic banks and financial institutions; and improve road safety design, management and enforcement to reduce road fatalities and major injuries, consistent with the main thrust of the 2007 Sundar Committee report.
This project follows the first 360 million dollar Karnataka State Highway Improvement Project (KSHIP I) implemented from 2001 to 2007 which helped improve and maintain 2,385 km of State Highways and Major District Roads. Under this Project, the share of state highways under good condition has increased from 5 percent to 35 percent and the travel time on key road corridors has decreased by 37 percent.(ANI)
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