World Bank to lend $770 million for three Andhra projects
22 Jan 2010
The World Bank will provide loans totalling $770 million to three infrastructure projects in Andhra Pradesh.
Anup K Pujari, joint secretary in the department of economic affairs of the Government of India and N Roberto Zagha, country director of the World Bank, signed the agreements in Hyderabad today.
The agreements cover a $320 million International Bank for Reconstruction and Development (IBRD) loan for Andhra Pradesh Road Sector Project (APRSP), a $150 million International Development Association (IDA) loan for Andhra Pradesh Rural Water Supply and Sanitation Project (APRWSSP) and a $300 million IBRD loan for Andhra Pradesh Municipal Development Project (APMDP).
The Andhra Pradesh Road Sector Project involves upgradation and improvement of 429 km of roads and has a support component for public private partnership (PPP), an enabling support component, an institutional strengthening component and a road safety component
The Andhra Pradesh Rural Water Supply and Sanitation (RWSS) project involves capacity and sector development, infrastructure development and project implementation support.
The Andhra Pradesh Municipal Development Project involves support for state level policy and institutional development, enhancement of municipal capacity, investment in urban infrastructure and project management.
The IBRD loan has a variable spread over LIBOR and is a dollar-denominated loan. The projects will be implemented over a period of five years.
IDA provides an interest-free credit. There is, however, a service charge of 0.75 per cent per annum. The project will be implemented over a period of five years.
With these agreements, the total ongoing commitment of the World Bank projects in India has reached $19.38 billion, a government release said.
In the current financial year 2009-2010, the World Bank has committed $ 5.5 billion in loans to India, its single largest borrower.