World Bank to provide 250mn dlr loan to Punjab for roads

Washington, Dec 6 (UNI) The World Bank has approved a loan of 250 million dollars for the rehabilitation and expansion of Punjab's road network.

The loan from the International Bank for Reconstruction and Development, approved yesterday, will assist the state government in providing a targeted approach to the comprehensive improvement and maintenance of the 7,400 km of Plan Roads (state highways, major district roads and other district roads), which link the rural road network to the National Highways and provide most of the main road links in Punjab.

Noting that the state faced the challenge of developing a modern road network with the quality and capacity to meet the needs of increasingly time and reliability conscious production and distribution systems, the World Bank said that better roads, low transport costs and higher transport service standards have been identified by the state government, in its 10th Five-Year Plan, as ''core elements'' of required enabling investment climate and a prerequisite of economic diversification and accelerated economic growth.

''Economic diversification is critical to accelerate economic growth in Punjab,'' Senior Manager, India Programme Fayez Omar, who is also the acting Country Director for india, said, adding that without an effective road network, it would be ''very difficult'' to encourage the shift from the present heavy dependence on wheat and rice to higher-value, more time-sensitive agricultural production and distribution.

''Effective roads are also essential for the development of light manufacturing and service industries which rely on high-quality logistics,'' he said.

The loan is payable in 20 years, including a five year grace period.

UNI XC VD ND1834