Under the project 200 km of road would be constructed within the current fiscal, sources added.
Of the total amount, Rs 415 crore would be invested during the current financial year to build the 68 km Bhawanipatna- Khariar road, 95 km stretch of Chandbali-Bhadrak-Anandapur road and 41 km Berhampur-Taptapani road.
About 700 km of roads would be constructed during the next fiscal.
The matter was discussed at a meeting between the statesworks minister AU Singh Deo and a World Bank team comprising B Raja and A K Swaminathan here on Thursday, the sources said.
A proposal was also mooted to set up a construction academy in Orissa modelled after the one present at Hyderabad to contribute towards capacity building of contractors and workers by imparting training in modern construction technique, they said. Steps would also be taken to develop a core road network system for undertaking urgent repair works. The Sambalpur-Rourkela, Joda-Bambri and Koira-Tensa-Rajamunda roads were being taken up for expansion and widening under the PPP mode, the sources said.