The World Bank has agreed to provide to the Government of India with an IBRD assistance of $175m for its second Gujarat State Highways Project (GSHP-II).

The project aims to modernise highway financing and institutions, enhance asset management performance and road safety management framework, as well as improve access to some of the tribal regions in eastern part in the state of Gujarat.

The three components trhis grant will support are the Highway Improvement Component ($290m), the Sector Policy and Institutional Development Component ($12m) and the Road Safety Management Component ($22m).

"The scheme will benefit local businesses and residents in the project area."

In addition to directly improving the condition, capacity and safety of nearly 625km of the 6,444km core state road network, the scheme will benefit local businesses and residents in the project area by providing improved access to higher service level highways and transport services.

Road users will also benefit from the subsequent costs savings in travel time and transportation, improved infrastructure safety and local capacity in stabilising road deaths in the state.

The roads identified for improvement under the project travel span across 16 districts.

The latest IBRD loan will be implemented over a period of five years by the Government of Gujarat Department of Roads & Building,.

GSHP-II project leverages the experience gained during implementation of completed and on-going highway lending operations in India (including the GSHP I), along with analytical work executed in the sector.