WB sanctions Rs 1,200 cr to State

 
The State government is likely to sign an agreement with the Bank for extending a five-year loan at soft rates of interest at Washington in next month, Karnataka PWD Minister C M Udasi told reporters here. Work under this project is expected to begin by early 2010.

Though the State had planned to develop 3,411 km of road under World Bank assistance, the bank has agreed to fund only 886 kms roads. Remaining road upgradation would be taken up under Asian Development Bank (ADB) funding, he said. The ADB has already shown interest in extending assistance to the State government and funds are expected to be made available to the State government in 2010-11. However, the exact amount is yet to be decided.

The loans carry tenure of 21 years and the repayment period starts from the eighth year onwards. The first seven years will not carry any interest. The department of public works, which executes these road projects, had borrowed Rs 2,300 crore in 2000 and the repayment of the same has commenced in 2007, the Minister said.