Agreement on WB-aided Rs 1,365 cr road project for HP signed

New Delhi, Aug 7 (UNI) An agreement on the World Bank-aided Rs 1,365 crore road project in the hill state of Himachal Pradesh was signed here today by the representatives of the Bank and of Central and State governments.

Of the 2,500 km of road length to be covered under the project, 2,000 km of road are to be renewed and the remaining 500 kms upgraded, the state government said.

Of the total project cost, Rs 1,000 of the World Bank loan would be provided to the State by the Central government as 90 per cent grant, while the remaining Rs 365 crore would be the State government's share, the HP government said.

The World Bank loan would be payable in 20 years with a five-year grace period.

Chief Minister Virbhadra Singh, who attended the signing ceremony, said the state government has already floated tenders of Rs 528 crore worth construction, while tenders for another Rs 360 crore road construction would be issued next month.

UNI