Bhubaneswar, July 21: The Orissa government today signed an agreement with World Bank (WB) in Washington DC for $250 million loan for developing the roads in the state.

Discussions on supervision strategy for civil works by third party monitoring cash flow mechanism, repayment schedule, financial management and disbursement arrangement and accountability action plan was held with World Bank officials during the negotiations.

The final round of talks was held in Washington DC from July 14 to 18.

An Orissa team led by development commissioner R.N. Bohidar negotiated with officials from World Bank.

Today’s agreement preceded a cabinet approval obtained last month of the institutional strengthening action plan. The approval was one of the preconditions set by the World Bank.

The $250 million World Bank loan will go a long way for the development of roads, said state works minister A.U. Singhdeo. The government would share 20 per cent of the total cost of the World Bank-funded Orissa state road project, added the minister.

With the loan amount, 461km of roads would be upgraded to two-lane. A damaged high-level bridge over the Banshadahra near Gumuda would be renovated, too.

Out of the 461km of the road, construction of 204km would be taken up in the phase-I package, while the rest of 257km would developed in phase-II of the project.

The phase-I package would include Bhawanipatna-Khariar road (68km), Chandbali-Bhadrak-Anandpur road (95km) and Berhampur-Taptapani road (41km).

Taptapani-Raipanka road (68km), Raipanka-JK Pur road (83km) and Jagatpur-Chandbali road (106km) would come under the second package.

Besides the above six roads, feasibility reports and bid documents for widening of Sambalpur-Rourkela road (165km), Joda-Bambry road (18km) and Koira-Tensa-Lahunipara road (46 km) under public-private participation mode is under preparation.

The World Bank is also financing the cost of consultancy services, revealed a senior official of the state works department.