Bhubaneswar (PTI): Despite taking serious exception to reports of irregularities in implementation of the health development project in Orissa, the World Bank has pledged to fund the state's development projects.

"We at the World Bank look forward in continuing our support to Orissa in facing challenges ahead", World Bank's representative V J Ravishankar said here on Tuesday.

Ravishankar who conducted a study on behlf of the bank on the economic growth of the state, said the authorities had taken 'very seriously' to detection of irregularities by Bank's internal machanism in the inmplementation of health programme funded by it. The WB had funded Rs. 308 crore for health development in Orissa of which some funds were found to be misappropriated in 2005.

As the bank was not amused oversuch developments, the state government officials were apprehensive that it might stop funding other ongoing projects too, sources said.

However, in view of the outcome of the study report which claimed that Orissa was the only fastest growing state in the country, Ravishankar said the bank had decided to invest in new projects in the state like roads, tank irrigation and rural livelihood support through women's self-help groups.

Sources said the bank would invest as much as Rs 172 crore in the new projects.

The World Bank had been supporting the reforms and development programme of Orissa government since 2001 through technical assistance, policy-based loans and credits.