PRESS RELEASE

$216 Million Financing for Kerala State Transport Project II, India Targets a 30% Reduction in Road Accident Fatalities on Key Project Corridors

May 14, 2013


The project will pass through around 87 villages and cover eight districts

WASHINGTON, May 14, 2013 - The World Bank today approved a $216 million loan for the Kerala State Transport Project II (KSTP II) to support the government of Kerala improve the condition, traffic flow and safety of its road network.

Under the first project – Kerala State Transport Project I (KSTP I) – the state upgraded 254 km of roads and improved and maintained a further1150 km of roads. Travel time on these roads has reduced by 20 % and the road user surveys showed an increased level of satisfaction with the roads provided.

However, even with a dense road network of 152,000 km, which is roughly three times the national average, poor quality and suboptimal alignment of many roads is acting as a constraint to the state’s economic development. Of the 4,340 km of state highways around 70% are still single-lane with 54% in poor condition. Road safety is also a major challenge in many of Kerala’s roads and there are 4,100 traffic fatalities annually in the state with vulnerable road users including pedestrians and the riders of two wheelers being disproportionately affected.  

The KSTP II project approved today has three key components – upgrading 363 km of strategically important state highways, strengthening road safety management systems and improving the network’s financial viability and capacity to deliver road infrastructure and services that are responsive to the needs of users.

“Kerala has the highest human development outcomes and has made impressive economic progress. However, the state needs to improve its road infrastructure for inclusive growth. This, along with attention to road safety, can spur investments, create new jobs and boost agriculture, while improving citizens’ access to markets, healthcare and education,”  said Onno Ruhl, World Bank Country Director for India.

Recognizing that road safety is a critical issue in the country today, KSTP II will build on the work done under the previous project and continue to support the Road Safety Authority – the first of its kind in India – particularly in improving its data collection abilities as well as its monitoring and evaluation framework. It will include an 80 km safe corridor demonstration project which will focus on measures to improve the safety of pedestrians, bicyclists and motorized two-wheelers. The safe corridor will benefit from a multi-sectoral approach with better engineering, enforcement, health care and community awareness.  

This will enhance the state’s ability to systematically identify, analyze, develop and prioritize critical road safety measures, which will benefit all road users. The KSTP II project will pass through some 87 villages, covering eight districts with about 13.4 million people, of which more than 50% are women.

“The first project had a number of institutional successes but there is also an unfinished agenda. The project will support the on-going modernization agenda of the Public Works Department through improved asset management, financial sustainability and road user focus. The project will also demonstrate best practice in road design and construction, traffic management to improve road safety and environmental protection measures,” said Simon David Ellis, Senior Transport Specialist and the project’s task team leader.

The loan, from the International Bank for Reconstruction and Development (IBRD), has a maturity of 18 years including a grace period of 5 years.

Media Contacts
In India
Nandita Roy
Tel : 91-11-41479220
nroy@worldbank.org
Washington
Gabriela Aguilar
Tel : 202 473 6768
gaguilar2@worldbank.org



PRESS RELEASE NO:
2013/391/SAR

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