Various work-in-progress projects hit roadblock

Even as the World Bank chief Robert Zoellick is visiting India to take stock of various bank-aided programmes in the country...

Even as the World Bank chief Robert Zoellick is visiting India to take stock of various bank-aided programmes in the country, a set of key road projects being funded by the bank are stumbling into major roadblocks. Several four-laning projects coming up in Uttar Pradesh, Bihar and Jharkhand under the Golden Quadrilateral project through its financing are running into massive delays. Reason: rehabilitation and resettlement issues, and law and order problems.

Of a total of 30, such World Bank funded projects being implemented by the National Highways Authority of India, 18 should have seen closure to date. Instead, only six have been completed. The time over-run for these six completed projects, which include the 62-km road connecting Sikandara to Bhaunti in UP and the 80-km Barachatti-Gorhar road running through Bihar and Jharkhand, have ranged between one and three years. Another 16 projects are also in various stages of delay of between two and three years. Of these, the project witnessing the largest delay is the 77-km stretch connecting Fatehpur and Khaga in UP which was scheduled for completion in 2004, but is now expected to see the light of day only sometime in 2008.

8220;The biggest problem causing delays has been hindrances in land acquisition and law and order problems in certain states,8221; said a senior NHAI official in a written response. 8220;In certain cases, there was poor, unprofessional management by contractors. One of these packages has also been terminated.8221; For World Bank, the issue is more than money. 8220;It8217;s not just about building roads. There are critical social considerations such as fair and effective resettlement and rehabilitation of the displaced population,8221; said the bank8217;s spokesperson.

He too cited law and order problems in Bihar, UP and Jharkhand for the delays. 8220;The bank agreed to support these projects, knowing fully well that this would be a challenge,8221; he said. While 8220;geographic location8221; of these projects is an important reason for their delay, similar NHAI projects funded by Asian Development Bank, Japanese Bank for Industrial Cooperation and NHAI8217;s self-funded projects in the same states, seem to have fared better.

Of the eight ADB-funded road projects in UP, Bihar and Jharkhand, two have been completed on time. These are the 41-km road that traverses from Jhansi to Shivpuri in UP and the 43-km Barwa Adda-Barakar road in Jharkhand. The rest of the projects too are largely expected to be on time, with maximum delays of between six months to one year expected. Similarly, the two JBIC-aided projects have also fared well, with one road 8212; the 33-km Ghaziabad-Hapur and Hapur bypass 8212; even being completed five months ahead of schedule.

World Bank officials maintain that releasing the loan funds on these stretches has not been an issue. 8220;The bank releases its fund as reimbursements to expenditure incurred by the implementing agencies in this case, NHAI. If the project is not completed, then the amount not spent remains undisbursed,8221; said the bank spokesperson. Currently, the bank has disbursed around 1.2 billion 8212; 62 per cent of the of the amount it has sanctioned for these 30 projects.

India to get 944 mn loan

NEW DELHI: The World Bank on Friday agreed to sanction a loan of 944 million to India for strengthening its rural cooperative credit system, vocational training programmes and community-based water management projects. The multi-lateral agency would give 600 million for boosting rural cooperative credit institutions, 280 million for supporting 400 industrial training institutions over four years and 64 million for Karnataka-based water tank management projects.