Washington, June 18: The World Bank has approved a 348 million dollar loan to help improve the quality, capacity and safety of the road network in Tamil Nadu. The loan, which will be used for the Tamil Nadu road sector project, will benefit the state's 62 million people by improving the state's infrastructure and investment climate, a bank release said.

"Road transport is the dominant mode of transport in the state, and plays a big role in trade and tourism," A K Swaminathan, World Bank task leader for the project, said. "While demand for road transport has increased rapidly, infrastructure has not kept pace leading to serious network deficiencies. In addition, inadequate attention to road safety has resulted in an increasing number of deaths and injuries especially of vulnerable road users like pedestrians, bicyclists and motorcyclists," he said.

The project will enhance the quality of about 750 km of roads in the core Tamil Nadu network with proper management of social and environmental impacts. In addition, it will deliver major maintenance on about 2,000 km, improve accident-prone locations and management of the network through institutional strengthening, public-private partnerships, and enhanced funding and improved allocation procedures for the road sector.

In keeping with the World Bank's country assistance strategy (CAS) for India, the project addresses the needs of a key infrastructure sector.

As envisaged by CAS, adequate infrastructure and more effective governance will help strengthen the enabling environment for investment and sustainable growth, and thereby contribute to poverty reduction in the state.

Bureau Report