BANGALORE: In a bid to boost economic growth in districts of north Karnataka, the State Government has decided to implement a North Karnataka Urban Sector Investment Programme at a cost of Rs. 1,980 crore ($ 440 million) for providing basic facilities in 25 cities and towns.

The Asian Development Bank (ADB) has agreed to lend funds for the project, which was likely to commence from January 2007. The loan negotiations are scheduled for October 26 and 27. The project will cover a population of 45 lakh.

The project towns included four city corporations of Hubli-Dharwad, Belgaum, Gulbarga, Bellary; 14 city municipal councils of Bidar, Raichur, Gangavati, Gadag-Betageri, Haveri, Davangere, Bijapur, Hospet, Chamarajnagar, Gokak, Koppal, Ranebennur Rabkavi-Banahatti and Nippani; six town municipal councils of Yadgir, Basavakalyan, Jamkhandi, Sindhanur, Ilkal and Shahabad; and Badami town panchayat, sources in the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), nodal executive agency for implementing the project, told The Hindu on Friday on the sidelines of a seminar on "Cities of Karnataka: Magnets of Hope Beyond Bangalore".

The objectives of the project are to improve the environmental conditions of the cities and towns and to reduce poverty in low-income areas through institutional development.

The project will be implemented in eight years in two phases. The work to be taken up in phase I is: water supply, sewerage, storm water drains and poverty alleviation programmes (slum improvement, low cost sanitation), and non-municipal infrastructure (fire and emergency services and tourism development). Phase II works included urban roads and non-municipal infrastructure (lake improvement).

The State Government and project urban local bodies will contribute 40 per cent of their own resources. The ADB will provide Rs. 1,188.80 crore, State Government Rs. 633.50 crore and ULBs will contribute Rs. 158.30 crore.

KUIDFC has set up a regional office in Dharwad and will be setting up four divisional offices in Dharwad, Belgaum, Gulbarga and Bellary for effective execution of the project.

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