The World Bank (WB) has decided not to fund new road projects in the wake of the “bitter experience” of the Kerala State Transport Project (KSTP) funded by it since 2002.
The project had been envisaged to improve traffic flow and road safety on State highways (SH) and strengthen institutional and financial capacity of key transport sector agencies.
The decision not to extend financial assistance to new road projects comes close to the three-month breather given to the State to expedite works of KSTP’s Phase II as the ongoing upgrade of 363-km of State highways to worldclass standards has missed milestones and completion target.
The three key road safety management initiatives - safe corridor demonstration project, challenge fund, and capacity building for the Kerala Road Safety Authority - taken up along with the $445-million Phase II project have also faired “badly” in the report card of the WB.
The WB has also backed out from a pact to fund a high-tech six-storey building to house the headquarters of the Public Works Department on a plot owned by the PWD near PMG Junction here.
“The $2-million offer was part of institutional strengthening, a key element of Phase II, and it has been communicated,” WB task team leader Bernard Aritua told The Hindu here.
Of the eight corridors in Phase II, the 41-km Perumpilavu-Pattambi- Perinthalmanna stretch had been dropped owing to delay in land acquisition.
The WB is also upset over the frequent change of project directors of the KSTP. Since 2012, the KSTP had five project directors, which had affected the works.
The WB has so far provided $50 million of the $210 million soft loan agreed by it for the Phase-II works.
