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World Bank extends $663.4-million loan

The World Bank on Friday agreed to grant $589 million for upgrading the 1,300 km Grand Trunk Road and another $74.4 million for the second district primary education project of Rajasthan.

The agreements for the projects were signed by World Bank country director, Edwin Lim, and additional secretary under department of economic affairs, Adarsh Kishore.

Stressing on project implementation, Lim said that the bank had been focusing on the highway development of India and would continue to assist India.

The $589-million loan from World Bank's lending arm International Bank for Reconstruction and Development would part finance the $756-million Grand Trunk Road Improvement Project.

The loan has 20 years maturity with a five-year grace period.

World Bank anticipates that after completion of the project, travel time between Delhi and Calcutta will be cut by nearly one-third, transport costs decreased by 10 per cent and number of fatal accidents would be reduced by 20 per cent.

Kishore said the World Bank loan would be utilised for building state-of-the-art road facility which would trigger growth in the economy.

National Highways Authority of India chairman, Deepak Dasgupta, said this is the second World Bank loan and the authority hopes to sign a series of such loans till the completion of the National Highway Development Project.

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