The unprecedented and irreversible lossof biodiversity in modern times is caused primarily by theelimination or degradation of natural habitats around theworld.Since the construction and improvement of roadssometimes leads, directly or indirectly, to the loss anddegradation of natural habitats, road construction andbiodiversity aims are often at odds.However, manypotentially serious conflicts between road projects andbiodiversity conservation can be avoided. Induced negativeimpacts of road projects on biodiversity can be minimized bycareful project siting, taking special care to avoid passingthrough protected areas and other critical natural habitats,including forested areas (which are especially vulnerable toinduced impacts).Where some natural habitat loss isinevitable, appropriate mitigation may include theestablishment of strict protection zones alongside the road,or compensatory protected areas elsewhere to offset theexpected road-related natural habitat loss (as is typicallyrequired under the World Bank’s Natural Habitats Policy).This kind of mitigation requires effective inter-agencycollaboration--for example, between the agencies responsiblefor roads and protected areas.Direct adverse impacts ofroad works on biodiversity can also be significant, but theyare generally simpler to avoid or mitigate, because they aremore fully under the control of road construction agencies,contractors, and concessionaires.Biodiversity loss andenvironmental damage can be considerably reduced whenplanners and road construction agencies site roads adjacentto existing railways, pipelines, or transmission lines;practice sound road engineering; maintain good drainage andnatural water flows; minimize roadside habitat loss; and,exercise care in the siting and design of borrow pits,construction camps, and other complementary facilities.Environmental rules for contractors, including transparentpenalties for noncompliance, need to be incorporated withinbidding documents and contracts.Ideally, road projects aredesigned and implemented so as to avoid or compensateadequately for any adverse impacts on natural habitats andbiodiversity.Through mitigation measures such as supportfor compensatory protected areas, potentially controversialprojects can even produce significant net environmentalbenefits, a win-win outcome.