The World Bank has approved the Orissa State Road Project (OSRP) following a protracted negotiation with senior officials of the state government.

The $250-million assistance will support improvement of 461 km of state arterial roads and bridges in two phases.

In the first phase of the project, 204 km will be taken up and in the second phase, a 257-km road will be developed.

A formal agreement for the loan assistance was signed last week in Washington, official sources said here on Monday.