Loan & Projects Agreement for World Bank Assistance: Objectives & Components

Loan & Projects Agreement for World Bank Assistance: Objectives & Components

Question: Sustainable development is the key to balanced economic growth and progress. Highlight the objective and components of the Loan and Projects Agreement for World Bank signed between the TN government and WB.

Loan and Projects Agreement for World Bank Assistance of USD 400 million for the TN Sustainable Urban Development Project was signed between Government of TN and World Bank

A. Objective

• Objective of the project is the improvement of urban services in participating ULBs/Urban Local Bodies in a manner that is financially sustainable

• Another aim is the improvement of urban management practices in certain cities

B. Components

The project comprises three components which are as follows:

Investment in Urban Services

• Project supports improved urban services including water, municipal solid waste management, sewerage management and storm water drainage

• Project also involves creation of a reserve fund for providing credit enhancements for municipal bonds and market based loan instruments issued by Urban local bodies

Results Oriented Grants for Urban Governance

• Project will provide results based grants to Urban Local Bodies which are eligible for implementation of novel urban management models for strengthening governance as well as financial sustainability

Urban Sector Technical Assistance:

• Project will strengthen Urban Local Bodies and urban sector officials

Facts and Stats

• Total project size is USD 600 million

• WB is providing a support of USD 400 million

• This financing will help in funding enhancements in service delivery and
infrastructure

• Both project and loan agreement were signed in view of this.