Question : FUNDING OF ROAD PROJECTS



(a) whether the ambitious road projects of the Central Government are lagging behind their target and suffering from fund crunch;

(b) if so, the details and facts thereof;

(c) whether any foreign Government has agreed to provide finance to build modern road infrastructure in the country through public-private-partnership;

(d) if so, whether any agreement has been signed with such countries in this regard; and

(e) if so, the details and facts thereof?

Answer given by the minister


THE MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI R.P.N. SINGH)

(a) & (b) Yes Sir.   131 projects have been delayed mainly due to problems associated with land acquisition, shifting of utilities, obtaining environment and forest clearance, approval for Road Over Bridges, poor performance of some contractors due to cash flow constraints and other reasons, law and order problems in some states etc.  The award of projects through Build, Operate Transfer (BOT) Toll/Annuity mode under Public Private Partnership was affected due to the recent downturn in the economy which affected the ability of private investors/developers to raise necessary finance for projects.

(c) to (e) On behalf of the Ministry of Works, Government of Malaysia, the Construction Industry Development Board, Malaysia (CIDB) have expressed their interest to collaborate on highway related projects on a Government to Government (G to G) basis with the Indian Government. No agreement has been signed yet.