The World Bank(WB) has approved a loan of USD 300 million to the Ministry of Finance(MoF), Government of India(GoI), for the project ‘Tamil Nadu Climate Resilient Urban Development Program (TNCRUDP)’.
i.The Project Development Objective (PDO) is to strengthen urban management and improve access to efficient and climate-resilient urban water and sewerage services in 21 Urban Local Bodies (ULBs) in Tamil Nadu (TN).
About the funding of TNCRUDP Project:
i.The total finance of the program is USD 450 million.
ii.The program is jointly funded by WB’s arm International Bank of Reconstruction and Development (IBRD) contributing USD 300 million and GOI offering USD 150 million.
About the program:
i.The program is implemented by Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) & Tamil Nadu Municipal Administration & Water Supply Department (TNMA&WSD).
ii.The project implementation period is for six years starting from Financial Year(FY) 2023-24 to FY 2028-29.
iii.WB’s Systematic Tracking and Exchanges in Procurement (STEP) system will be used to prepare, clear and update procurement plans.
iv.This Program aims to leverage the private sector by introducing performance-based contracts.
v.The program will also issue municipal bonds and support urban governance reforms to improve the fiscal health of ULBs.
Technical Assistance:
i.The program also contains the provision for Technical Assistance (TA) worth USD 30 million (USD 21 million – IBRD loan & USD 9 million – GOI).
ii.The main objectives of this component are
- to provide technical support for program implementation
- to provide other systemic technical assistance for the urban sector and ULBs in TN.
iii.This TA will have two sub-components.
About WB loan:
i.The loan is the blended financing instrument of Program-for-Results (PforR) with Investment Project Financing (IPF).
ii.The loan has a maturity of 32 years with a grace period of 7 years.
Additional info:
The program will support ULBs to increase designated areas for green spaces and parks.
WB approved USD 100 Million Loan to Boost Skill Development & Employment in Sikkim
World Bank approved USD 100 million for the project ‘Sikkim: Integrated Service Provision and Innovation for Reviving Economies (INSPIRES)’ Operation to support Sikkim’s efforts to train, upskill, and provide jobs for 300,500 women and youth in high-growth and priority sectors.
About the program:
i.The program aims to establish an Employment and Entrepreneurship Promotion Facility to promote partnerships with private-sector firms, central agencies, and business associations.
ii.The program will also provide staff training along with building public procurement capacity across priority state departments.
iii.Career counselling, migration services, and mental health management will be provided to support the program.
iv.The Program will organize boot camps, create a workplace safety management system, and provide transport allowance and business development support.
v.The program is implemented by the Planning and Development Department of the Government of Sikkim.
About the funding:
i.The loan will use blended financing instrument of Program-for-Results (PforR) with Investment Project Financing (IPF).
ii.The loan has a maturity of 14 years with a grace period of five and a half years.
iii.The program also contains the provision for Technical Assistance (TA).
Types of Financing in World Bank(WB):
The three financing instruments offered by the World Bank(WB) are:
i.Investment Project Financing(IPF): Â provides financing to governments for activities that create the physical/social infrastructure.
ii.Development Policy Financing(DPF): provides budget support to governments or a political subdivision to achieve sustainable, shared growth and poverty reduction.
iii.Program-for-Results(PforR): leverages a country’s own institutions and processes and links the disbursement of funds directly to the achievement of specific program results.
