The ignominy of a “poor performer” hangs before Kerala as the Union Department of Economic Affairs (DEA) begins the two-day crucial review of the World Bank-funded Kerala State Transport Project’s (KSTP) Phase II in New Delhi on Tuesday.
The review in the presence of the WB, KSTP and Public Works Department (PWD) officials is in the backdrop of the move by the World Bank to pull out of the $445 million project or partial cancellation of the loan extended to the State in the wake of delays, missed deadlines and several breathers given to expedite the work.
The State is trying its best to avoid the ‘poor performer” tag and cancellation of the loan as it would have grave repercussions for Kerala in seeking financial assistance from external lending agencies and in attracting investors.
Official sources said the issue had been taken up at the highest level by the State with the DEA and the Union Finance Ministry. The State had already posted a full-time IAS officer as Project Director as demanded by the World Bank. Special Secretary, PWD, Biju Prabhakar and KSTP Project Director Ajith Patil will represent the State in the review.
A World Bank mission, which reviewed the works in eight corridors that traverse 87 villages in eight districts for five days from June 5, has noted “slow progress” in the upgrade of 363 km of State Highways and failure to complete land acquisition even after four years of commencing the work.
The mission found that the $22 million road safety component, an integral part of the phase II, aimed at vulnerable road users have been “sidelined and ignored” despite repeated reminders.
The World Bank has extended a soft loan of $210 million for the phase II, kicked off in June 2013 and to end in November 30, 2018.
The World Bank has given ₹377 crore for phase II to the KSTP so far and the funds have not been utilised since February. Work on the 41-km Perumpilavu-Pattambi-Perinthalmanna stretch was dropped as land acquisition could not be completed by the State.
In 2016, the lack of progress in land acquisition and civil work had pulled down the KSTP Phase-II to the last and 17th position among the WB-funded projects in the country.
Although the World Bank wants to salvage the project and help the State, it cannot ignore the report submitted by Satish Sagar Sharma, Highay Engineer and Sony Thomas, Road Safety expert, after the detailed review of the work.
The World Bank is learnt to be contemplating to withdraw the ₹350-crore loan for the work that is unlikely to be completed before November 2018 in view of the slow progress of works.
