Guwahati, Feb. 24: The World Bank has warned the Mizoram government that it might stop financing the regional transport connectivity project in the state as its implementation was "unsatisfactory".

The bank, in its implementation status report published on February 20, on the second Mizoram State Roads Regional Transport Connectivity Project, said: "If the implementation is not significantly improved by the time of the mid-term review in November, the bank will consider all recourse actions, including suspension of financing for this project."

The $107 million project, sanctioned in 2014, aims to increase transport connectivity along regional trade corridors in Mizoram and to help open up trade with neighbouring countries. The project will enhance road links of Mizoram and other northeastern states with Bangladesh, Nepal, Bhutan and Myanmar.

The report said two contractors have achieved only 16 and 36 per cent progress. "Considering substantial delays and poor contract management, the overall performance rating for implementation progress has been downgraded to unsatisfactory," it added.

The bank will also suspend a road contract if compensation is not paid by February 28 by the contractor to families of two employees who died in an accident in April last year.

The roads being widened include a 30km stretch of the Lunglei-Tlabung-Kawrpuichhuah road along the Indo-Bangladesh border, 27.5km of the Champhai-Zokhawthar road along the border with Myanmar and alignment of the 41.7km section from Chhumkhum to Chawngte to connect to border roads with Bangladesh to the west and Myanmar to the south.

The two components of the project include improvement of priority cross-border roads and trade-related infrastructure and the road sector modernisation and performance enhancement through institutional strengthening.

The first component involves widening and strengthening of 91km roads and preparation studies for approximately 330km roads and construction or improvement of trade-related infrastructure along project roads, including haats (markets) and truck stops. The second will support gradual transformation of the public works department into a modern road agency through implementation of a road modernisation plan which will carry forward and deepen various institutional development initiatives introduced under the project.

"The concerns of the World Bank are true and work of contractors is slow," project director Lalrinkima Hnamte told The Telegraph. He said the staff strength at the project implementation unit in Aizawl is inadequate and they have requested for more staff. "The monsoon showers were heavy last year and it rained till November which hindered work," he said.

The bank in its report while sanctioning the project had said Mizoram's road network is poor and under-developed and its road density is the lowest in India. It faces severe constraints in its connectivity with larger markets, it said.