The Hindu : Front Page : World Bank hints at assistance of 1 billion dollars for State

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Tuesday, Oct 24, 2006
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World Bank hints at assistance of 1 billion dollars for State

Special Correspondent

$ 500 million likely for irrigation sector, says bank official

A FRIEND IN NEED: World Bank Managing Director (Operations) Graeme Wheeler interacting with children at Ibrahimpally village in Ranga Reddy district on Monday. — PHOTO: SATISH. H

HYDERABAD: The World Bank has hinted at a massive $ 1 billion assistance for Andhra Pradesh involving projects in various sectors in the next three to four years.

A major portion of lending, about $ 500 million, is likely to be given for strengthening the irrigation sector, while the remaining could go for structural adjustment and urban reforms.

"The proposals for assistance for strengthening the irrigation sector is under preparation and it will materialise within one year if everything goes well," World Bank Managing Director (Operations), Graeme Wheeler said.

Addressing a press conference here on Monday, he asserted that the bank was not imposing any conditionalities in providing assistance.

"We don't impose any conditionalities. It is the policy agenda that we review and select a set of reforms against which we provide the assistance," he said.

`Impressive results'

Replying to questions, he said the proposed structural adjustment was the third one under consideration for Andhra Pradesh as the State had already implemented the policy reforms and achieved impressive results in some core areas like power.

The bank's assistance was policy reforms-based benefiting the least advantageous sections. He clarified that the bank was not against subsidies and said all it wanted was that they should be well-targeted, transparent and reflected in the budget.

Higher growth rate

The bank also saw huge benefit in micro finance in developing countries where it was enabling access to affordable credit instruments to households and keeping moneylenders away. He said India and China were experiencing higher growth rates that was helping remove poverty.

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