SEOUL, Nov. 25 (Yonhap) — South Korea will offer US$170 million in loans to India to help the South Asian country build an advanced traffic management system on a major highway under construction, the finance ministry said Thursday.
The government approved the loans under the Economic Development Cooperation Fund (EDCF) program to support the establishment of an intelligent transportation system (ITS) for the ongoing 701-kilometer expressway project linking the western coastal city of Mumbai and Nagpur in the central region, the ministry said in a release.
South Korea launched the EDCF program in 1987 to help other developing countries with their basic infrastructure. It marked the first such EDCF project with New Delhi.
An ITS is designed to collect and analyze traffic data to better provide road information to drivers and inform them of any emergencies or accidents. It also includes building an up-to-date electronic toll collection system on highways.
South Korea made the decision in consideration of the importance of the project to help improve logistics in India and strengthen the bilateral economic cooperation between the two countries, the ministry said.
With the EDCF project, the government will continue to work with India to explore fresh opportunities to further deepen the cooperation in infrastructure, according to the ministry.