The economic growth of any region is closely linked to its road infrastructure. The mountainous state of Himachal Pradesh with its rich horticulture and tourism potential requires well-constructed, well connected, climate resilient and safe roads. This project will help the state develop reliable, resilient and safe roads which are crucial for the economic development of the state.
The $82 million loan agreement for the project was signed by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India and Junaid Kamal Ahmad, Country Director (India) on behalf of the World Bank. Whereas, the project agreement was signed by Jagdish Chander Sharma, Principal Secretary, Public Works Department on behalf of the Government of Himachal Pradesh and Ahmad.
Himachal Pradesh has the potential to produce high-value horticultural products. However, to leapfrog to the next level of competitiveness in the global value chain, the state needs to focus on improving its roads and logistics services. This project will support the Government of Himachal Pradesh to provide greater opportunity to smallholder farmers to access domestic and international agricultural markets, attract private investments to enhance value chains and increase jobs and farmers’ incomes.
Himachal Pradesh, a mountain state richly endowed with natural resources, often faces landslides and flash floods that affect its road connectivity. Cloud bursts, more extreme river flows and flooding cause landslides and erosion of embankments and loss of roads or bridges. These events are projected to increase over the next few decades as a result of climate change. To protect against landslides and floods, the project will implement engineering solutions that are plant and natural-based as well as control vehicular emission to address climate risks.
Furthermore, as there is no early warning system in the state, landslides cause fatal accidents. During the snow and rainy season, transportation of agricultural products and tourists is either terminated or delivered at a high cost. Measures such as creating an emergency response crew, upgrading drainage structures and protecting slide prone areas will help build resilient road infrastructure.
According to Tesfamichael Mitiku, Senior Transport Engineer and World Bank’s Task Team Leader for the project, a well-performing road infrastructure that helps in creating an efficient logistics system will go a long way in supporting smallholder farmers, small and medium enterprises and manufacturing industries deliver products just-in-time to wholesale and terminal markets at a lower cost. Reorganizing Himachal Pradesh Road and Other Infrastructure Development Corporation (HPRIDC) and HP Motor Vehicle Administration as corporate entities, will also support greater transparency and accountability in promoting innovative development solutions.
