1.1    Chennai’s Urban Transportation Component of World Bank-assisted TNUDP-III was sanctioned in April 2005 with the issue of Govt. order (G.O.Ms.No.55 MAWS Dept. dated 29-4-2005 according administrative sanction for the component). The effective date of commencement of the component is, however, 19-10-2005, the date of signing of the Loan Agreement with the World Bank (WB).

1.2    A comprehensive urban transportation project to meet the challenges posed by rapid growth of Chennai Metropolitan Area (CMA) was undertaken by the Government of Tamil Nadu (GoTN) with the World Bank (WB) assistance, under Tamil Nadu Urban Development Project III (TNUDP-III); While administrative sanction for the project was issued in the G.O.Ms.No.55 MAWS Dept. dated 29-4-2005, the project implementation, phasing and procurement plan for the Chennai's Transportation component of TNUDP-III was approved in G.O.Ms.No.145 H&UD Dept. dated 29-4-2005. The project has to be implemented over a period of five years.

1.3    The Chennai's Urban Transportation Component under TNUDP-III was originally estimated at a cost of US $ 150 m (Rs.610 crores). Of this, the assistance from the WB would be US $ 123 m and the remaining share of US $ 27 m would be borne by GoTN. The entire amount will be released to CMDA as grant through TNUIFSL under TNUDP-III. A separate fund called Grant Fund III (GF-III) has been set up and managed by TNUIFSL. The component essentially comprised the road sub-component implemented through Highways Department (DoH) and the traffic management & enforcement sub-component implemented through Chennai Traffic Police (CTP) apart from a traffic study to be undertaken by CMDA through consultants.

1.4    A Project Management Unit (PMU) for implementation of the Component has been set up within CMDA with Member-Secretary as its Project Director. A Project Implementation Unit (PIU) for implementation of the Component has been set up in DoH since Mar.2007.