World Bank signed a $216 million loan agreement with the Government of India and the Government of Kerala for the second Kerala State Transport Project.
The loan agreement was signed by Nilaya Mitash (Joint Secretary, Department of Economic Affairs) on behalf of Government of India and Onno Ruhl, Country Director, World Bank (India) on behalf of the World Bank.
The Objective of the project is to improve road conditions, traffic flow and road safety with a focus on vulnerable road users on selected roads in Kerala. The projects will be implemented over a period of six years.
The loan would be used for upgrading 363 km of strategically important State Highways to complete network connectivity in the state.
It would also be used for strengthening of the road safety management systems in Kerala with the objective of arresting the increase of crash fatalities in the state.
The loan amount would also be used for institutional strengthening. The objective of this component is to improve the sustainability of Kerala’s state road network with respect to its functional adequacy, financial viability and capacity of key state road sector institutions to deliver road infrastructure and services that are responsive to road user needs.