3,720 cr loan from World Bank

The state government inked a pact with the World Bank (WB) for a loan of Rs 3,720 crore to improve roads, water and sanitation facilities in addition to other urban services. The state and WB officials signed the agreements in the presence of the Chief Minister, Mr K. Rosaiah, and the bank country director, Mr Roberto N. Zagha.

The catch in the loan, however, is that except for the portion of the loan given for roads, the WB funds can be claimed as reimbursement only. The state will have to spend on various projects by itself and then claim reimbursement from the WB.

The government will also adopt the “user-has-to-pay” policy for the water supply and sanitation projects in which the community contribution is fixed at Rs 21 crore. This will be 20 per cent of the government’s contribution of Rs 123 crore. The total project cost is Rs 864 crore. The state aims to benefit 20 lakh people by improving rural water supply and sanitation in 16 districts.