August 23, 2005
The Asian Development Bank (ADB) will help Uttaranchal draw up a set of plans to enhance its road network that will help the state achieve its development targets. The Philippines-based regional development agency will provide Uttaranchal Government a technical grant of US$398,000.
The TA aims to assist the Public Works Department (PWD) of Uttaranchal in reviewing and finalizing a 10-year road master plan; complete financing plans for short, medium, and long-term projects; and prepare a plan to boost PWD’s capacity. It will also prepare a project to strengthen rural-urban connections and link poor rural producers in markets in towns, cities, and ports, says the ADB.
Uttaranchal’s PWD will serve as the executing agency for the TA, which is due to be carried out in two concurrent components over about five months. The local Government will provide US$95,000 equivalent toward the estimated total cost of US$463,000 to finance office space, data collection and counterpart staff.
“The ensuring project will be a sector loan designed not only to increase the quality and quantity of the state’s roads but the PWD’s capacity to better manage them,” says Prianka Seneviratne, an ADB Senior Project Specialist.
The State Government’s master plan will cover around 3,000 kilometers of state and district roads as well as 13,000 km of village and lower class roads. Under the plan, every village, town, and city will be connected to local economic centers, social services, and major cities in the state through a network of all-weather roads and pedestrian links.
About 90% of Uttaranchal is over hilly terrain, while almost two thirds of the state is covered by forest. More than 60% of the state 8.5mn population lives in rural areas and is mostly employed or engaged in agriculture related industries.
However, tourism is the mainstay of the economy and has contributed much to the 5% annual growth of the Gross Domestic Product (GDP) of the state since its creation in 2000. Almost 13mn tourists were attracted to the state last year.
The state government has already started several initiatives aimed at increasing the annual growth of tourism arrivals to 12% and achieving its development targets. However, inadequate and inefficient inter- and intra-state freight and passenger transportation is limiting the effectiveness of those initiatives.
Only 7% of the state’s roads are built to two-lane standard, and half are paved. About one third of the higher-class paved roads are in poor condition, and more than 70% of the roads for light vehicles need to be repaired or rehabilitated.
PWD’s capacity to carry out improvements is constrained by external administrative and financial rules and internally by archaic operating procedures, says the ADB. Also, PWD staff are insufficiently trained in resource allocation and contract administration, it adds.
News Source: http://www.indiainfoline.com
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