The Land, Infrastructure and Transport Ministry is planning to introduce a new system to provide interest-free loans to local governments to accelerate the building of roads in urban areas, ministry officials said Sunday.

The system is targeted at road construction projects in central areas of major cities that would likely stimulate related private investment, the officials said, adding that the ministry will include expenses for the project in its fiscal 2002 budget requests to be submitted later this month.

The loans will be available not only for road construction but also for projects to elevate railroad tracks in order to ease traffic congestion, they said.