Rs 1,100 cr World Bank fund for Punjab roads

The World Bank has agreed in principle to disburse Rs 1,100 crore to the Punjab government for strengthening and recarpeting 1,100 km long state roads.

"The World Bank has agreed to spend Rs 1,100 crore on the widening and strengthening of roads in the state and by the end of this year, the project will begin," Punjab PWD Minister Partap Singh Bajwa said.

"In the first phase, 325 km long roads would be strengtened, while in the second phase, the rest of the roads would be developed," Bajwa added.

The bank has also hired international consultant to take care of the ambitious project, he said, adding, the Punjab government has sought a Rs 500-crore loan from the National Bank For Agriculture and Rural Development (NABARD) for the development of state roads.

"The Punjab chief minister and Nabard chairman had met yesterday and the state government had put a proposal before Nabard for the funding and strengthening of roads," Bajwa said.

"The state government in asociation with the Malaysian government will put money into the development of state roads. The total cost of the project will be Rs 1,100 crore, out of which, 25 per cent will be spent by the state government and the remaining will be contributed by the Malaysian government and different financial institutions," Bajwa added.

The memorandum of understanding will be signed between the Malaysian and the Punjab government in June this year, after the state Assembly and the Malaysian government approved the project, he said.