Annual Report 2010 - Ministry of Finance and Planning

1 | DEVELOPMENT PERSPECTIVESChart 1.28 > Funds for National Roads Maintenance 2005-2010 Chart 1.29 > Financing Pattern 2005 - 2010Rs. Bn7654321Investment (Rs. Mn)1200001000008000060000400002000002005 2006 2007 2008 2009 2010Year02005 2006 2007 2008 2009 2010YearDomestic FundsForeign ResourcesSource: Department of National BudgetSource: Department of National BudgetA considerable amount of domesticfunds has been provided to acquireland for national road developmentand resettlement. Land acquisition forroads is being done with a minimumcost to the affected people. Value oflands is assessed and compensationpaid accordingly. For delayedpayments, 7 percent interest perannum is added to the value of theacquired land. A significant amountof Rs. 16,510 million has been spentas compensation payments forland acquisition during 2005 -2010period, although the backlog ofcompensation still remains high.Therefore, the use of Treasury Bondsas a new method of payment wasintroduced in 2009 to clear thepayment for land acquisition.Foreign financing component of thetotal road investment in 2005 wasRs. 8,600 million and it has increasedto Rs. 44,600 million in 2010. Thelion share of foreign financing hasbeen spent on rehabilitation (56percent) and on the construction ofexpressways (43 percent) projectsin 2010. Rural road development isbeing done mostly through domesticfunds.Around Rs. 14 billion worth ofloans have been obtained fromdevelopment partners such as ADB,WB, EXIM Bank and the DevelopmentBank of China, Government of Koreaand Government of Japan to improveapproximately 2,500km of nationalroads and 1,170km of provincial roadsduring the medium term 2011-2013.Table 1.17 > Land Compensation 2005 - 2010 (Rs. Mn)2005 2006 2007 2008 2009 2010Land Acquisition 2,288 2,320 3,021 2,718 2,999 2,890Of whichTreasury Bonds- - - - 489 1,085Source: Ministry of Ports and Highways56