The Hindu : Kerala / Thiruvananthapuram News : WB offers loan for water supply

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Thursday, Mar 22, 2007
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Kerala

Kerala - Thiruvananthapuram

WB offers loan for water supply

Special Correspondent

State seeks changes in some of the conditions for the Rs.1,200-crore offer State seeks changes in some of the conditions for the Rs.1,200-crore offer

THIRUVANANTHAPURAM: The World Bank is considering a loan of Rs.1,200 crore for extension of the Kerala Rural Water Supply and Sanitation Programme.

A World Bank team, led by senior sanitary engineer G.V. Abhyankar, held discussions with Water Resources Minister N.K. Premachandran here on Wednesday on the proposed loan.

Talking to the media after the talks, the Minister said Kerala had sought exemption for the proposed project from some of the conditions that applied to the ongoing project. The team had responded favourably to the State's demands except the one for reduction of the beneficiary contribution from 15 per cent.

Mr. Premachandran said the Government would have to take a policy decision on continuation of the project and taking the loan. It wanted freedom for panchayats to set up public taps under the project, subject to the condition that the local body should pay for the water.

Sponsors or other contributors should be allowed to pay the beneficiary contribution for poor families. The contribution payable by the Scheduled Castes and Scheduled Tribes and fishermen should be reduced from 2 per cent to one per cent. The balance might be accounted as work contribution. Panchayats should be allowed to spend money from their own funds for contingency works.

As the proposed loan was a large one, the implementing agency (Kerala Water Supply and Rural Sanitation Agency) and the Kerala Water Authority should be permitted to jointly take up large projects similar to the Chavara-Panmana drinking water schemes. Wherever necessary, grama panchayat advisory teams should be associated with the implementation of the schemes under the project instead of voluntary agencies.

He said Rs.360 core had been spent under the ongoing World Bank-assisted schemes in 112 panchayats. The schemes would close in December 2007. The proposed loan would be interest-free and repayments would commence only 10 years after taking the loan.

The Minister said the Government had already taken steps to address the audit objections raised by the Comptroller and Auditor-General of India in its report.

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