The Hindu : Tamil Nadu News : World Bank loan for Tamil Nadu project

Online edition of India's National Newspaper
Thursday, Sep 15, 2005

Tamil Nadu

Tamil Nadu

World Bank loan for Tamil Nadu project

Special Correspondent

NEW DELHI: The World Bank will $ 300 millions as loan for executing the Tamil Nadu Urban Development Project aimed at improving the State's urban infrastructure services.

The agreements to this effect were signed here on Wednesday between the Centre and representatives of the World Bank, an official release said.

For the project, estimated to cost $ 434 million, the World Bank is funding $ 300 million while the balance amount is to be financed by the State Government ($ 84 million), participating urban local bodies ($ 10 million) along with co-financing to be raised by the Tamil Nadu Urban Development Fund ($ 40 million).

The project is aimed at improving infrastructure services in the State by strengthening the managerial, financial and technical capabilities of local bodies; mobilising funds and for urban infrastructure investment by TNUDF; and providing incentives for investments in low-income neighbourhoods.

Alongside, the World Bank, the Centre and the State Government inked another agreement pertaining to the Tamil Nadu empowerment and poverty reduction project.

This accord provides for an International Development Association (IDA) credit amounting to Special Drawing Rights 79.4 million or about $ 120 million.

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