India Signs Legal Agreement with the World Bank

The Loan and Project Agreements for World Bank (IBRD) assistance of US$ 400 million for Tamil Nadu Sustainable Urban Development Project were signed between the Government of India/ Government of Tamil Nadu and World Bank recently.

  • The objective of the project is to improve urban services in participating Urban Local Bodies (ULBs) in a financially sustainable manner and to pilot improved urban management practices in selected cities.
  • The total project size is US$ 600 million, out of which World Bank support is US$ 400 million.

The project consists of following three main components:

  • Investment in Urban Services: The project will support improvement in range of urban services, including water, sewerage, municipal solid waste, urban transportation, sewerage management and storm water drainage. The project also envisages creation of a reserve fund to provide credit enhancements for municipal bonds and other market based Loan instruments issued by ULBs.
  • Result Based Grants for Urban Governance: The project will provide results-based grants to eligible ULBs to implement new urban-management models that strengthen governance and financial sustainability.
  • Urban Sector Technical Assistance: The project will support strengthening the capacity of ULBs and urban sector officials.

Sources: PIB.

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