The National Highways Authority of India (NHAI) today signed $45 million loan agreement with the World Bank to improve operational efficiency of the body.
"We have signed a loan assistance agreement with the World Bank. The loan amount is $45 million and this loan caters to institutional strengthening in NHAI. It will also be a milestone loan because till now we have been dealing with the loans which were for construction," NHAI Chief General Manager Planning and Information System Atul Kumar told reporters here.
"This is exclusively for the institutional development and transformation of the organisation in terms of enterprise... Road safety, procurement issues and public private partnership," Kumar said.
NHAI said the assistance will finance actions to strengthen the institutional capacity of NHAI to efficiently manage and operate its growing programme.
"We hope through this loan the organisation will benefit. Also, whatever decisions are to be taken regarding the outcomes of the loan they will be taken at the highest level by the board of the organisation and will be implemented on fast track," he said.
The loan from the International Bank for Reconstruction and Development has a five-year grace period and a maturity of 18.5 years.
Venu Rajamony, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Roberto Zagha, Country Director India, World Bank and Kumar were present at the occasion.
Forty per cent of the total road traffic in India plies on the National Highway (NH) network and this share is likely to increase with vehicle growth touching 10 per cent per annum in recent years.
According to estimates, the road sector in India will require investments in the range of $75-90 billion over the next five years.
The World Bank project will also help NHAI implement recommendations of an Inter-Ministerial panel set up in 2008 on the restructuring of NHAI.
"Recognising the need for improving road infrastructure in the country, the government plans to add 20-km of new or improved roads each day as against the recent rate of 3 km per day," Zagha said.
"The World Bank is happy to work with NHAI as it ramps up the pace and quality of implementation of this national programme," he said.
The organisation, it said , is faced with the challenge of enhancing its programme standards - on governance, accountability, asset management and safety -- on an ongoing basis.
