Thiruvananthapuram: Road development works under the World Bank-aided Kerala State Transport Project (KSTP) have come to a standstill, with the State Government and the contracting companies heading for a showdown.

Road Builder (M) Sdn Bhd has issued notice to the Government that it will suspend work on the Thrissur-Kuttipuram stretch. The company is entrusted with the work on the Palakkad-Shoranur stretch also.

Pati-Bel, involved in the development of Main Central (M.C.) Road, has also run into a confrontation with the Government. Some of the companies have pulled out equipment from the project site and retained only a skeletal workforce to ensure that the contract conditions are not violated.

A meeting of Government officials and project directors of the contracting companies held earlier this week, in the presence of Minister for Public Works T.U. Kuruvilla, failed to produce any result.

According to sources, the Public Works Department was willing to give an extension of time provided the companies did not raise claims for the delay. The stage has been set for litigation between the Government and the contracting companies over the claims.

Sabarimala pilgrims will feel the immediate impact of the standoff because of the bad roads.

Launched in 2002

The KSTP was launched in 2002 under a World Bank aided project, estimated at $ 330 million. The project was primarily intended to upgrade State highways and major district roads. The formal contracts were signed on November 7, 2003, with December 2005 as the completion date. Implementation was smooth in the early stages of the project, with the then United Democratic Front Government backing it. Land for road expansion was handed over only by July 2005. The contracting companies went ahead with the work beyond December 2005, hoping to get an extension.

By April, the Government stopped payments, leading to the current set of problems. In the meantime, the project consultants recommended extension of time till March 2007. But doubts have been expressed whether the project can be completed even then, as land has not been handed over for expansion on some stretches.

With the Left Democratic Front assuming power, there has been a change in the Government's attitude towards the project. Politically, the front is yet to decide on the fate of the further stages of the KSTP. One of the contracting companies, in the meantime, moved the High Court and got a stay on the Government move to cash the bank guarantee it had provided for the contract.

The World Bank's report on Status of Projects in Execution has warned that the KSTP cannot be completed by the time the loan is closed by December 2007 if there are any further delays in executing the work after settling the land acquisition issues. The notice for suspension of work will have a cascading effect, with the World Bank re-examining its commitments, it is pointed out.

Most of the World Bank-aided road development works in other States are ahead of time or on time, unlike in Kerala. The delays would, it is pointed out, will create a negative impact and the World Bank will be forced to take a hard decision. It will also affect other foreign-aided projects being planned.

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