WB approves $320 million for Andhra roads

A $320-million (approximately Rs 1,568 crore) loan to design, improve the quality, capacity and safety of roads in Andhra Pradesh has been approved by the World Bank. The loan is from the International Bank for Reconstruction and Development (IBRD) and has a maturity of 30 years, including a grace period of 5.5 years.

The Andhra Pradesh Road Sector Project is designed to upgrade about 429 km of priority state highways and finance long-term maintenance of over 6,000 km of the state’s core road network, according to a media statement issued by the World Bank.

“Improvements in road transport are vital to catalyse agricultural and industrial development and improve access to markets, jobs, and services to the people of Andhra Pradesh, especially its poor people. This project will help to remove the infrastructure bottlenecks in the state, which is considered a major constraint to sustain the state’s impressive economic growth in recent years,” World Bank country director for India, Roberto Zagha, said in the release.

 

Road transport, which is vital to Andhra Pradesh’s economy, account for more than 80 per cent of freight and passenger traffic.

Recognising that an efficient transport system is critical for agricultural and industrial growth, the state government has invested heavily to improve its transport infrastructure.

For example, double lane roads on state highways have increased from 52 per cent to 68 per cent over the past six years. However, lack of roads maintenance and deteriorating road safety require urgent actions, the release added.