World Bank gives India $320m aid money for Assam roads project

Tuesday, 6 November 2012 - 4:52pm India News Bulletin Desk

A road in Lakhimpur district of Assam. The road project will improve roads, connectivity and safety

Image: Wikimedia Commons (Flickr: rajkumar1220)

The government of India, the state government of Assam and the World Bank have signed the Loan and Project Agreements for international bank's assistance of $320m (approximately £200m) for Assam State Roads Project.

The ambitious Assam roads project will be implemented over a period of six years.

It is aimed at improving the road network of the north eastern state. The project has three components – first is road improvement to improve state connectivity and facilitate regional integration. The second component is road sector modernisation for regional development and last component is road safety management.

The total project cost is $400m. While the World Bank’s International Bank For Reconstruction And Development (IBRD) will provide $320m, the remaining $80m will be funded through borrowings.

Prabodh Saxena -- joint secretary, department of Economic Affairs at the central government, Mohan Chandra Boro -- Assam’s commissioner & special secretary for Public Works Road department and Onno Ruhl, country director for World Bank (India) on behalf of the World Bank struck the $320m agreement in New Delhi on Monday, November 6.

The IBRD loan has a variable spread over LIBOR and is a US dollar denominated loan, the Indian Finance Ministry has said.