GOI, Government of Jharkhand & World Bank sign $147 Million Loan Agreement

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New Delhi : The Government of India (GOI), the Government of Jharkhand, and the World Bank, on June 24, 2019, signed here a $147 Million Loan Agreement to provide basic urban services to the people of Jharkhand and help improve the management capacity of the urban local bodies (ULBs) in the State.

The Jharkhand Municipal Development Project will focus on improving the municipal sector’s capacity to provide basic urban services. It will invest in urban services such as water supply, sewerage, drainage, and urban roads; and strengthen the capacity of the Jharkhand Urban Infrastructure Development Company (JUIDCO) as well as that of the ULBs to carry out reforms in the areas of urban finance and governance.

This is in keeping with the needs of a rapidly urbanising state where about 31 million people reside in urban areas and urban population growth in nine of 24 districts in Jharkhand is above India’s overall urbanisation pace of 2.7 percent.

 Speaking on the occasion, Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, said that the Government of India recognises that urbanisation and economic growth are interlinked and initiated a comprehensive roadmap for municipal reforms through the AMRUT programme. He said that the Jharkhand Municipal Reform Programme will be a definite step forward to strengthen and improve urban services in a fast urbanising state and will provide an impetus to economic growth. 

The Loan Agreement was signed by  Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India, and  Shanker Lal, Acting Country Director (India),  the World Bank, on behalf of the World Bank. The Project Agreement was signed by Ameet Kumar, Director, State Urban Development Agency (SUDA), Urban Development & Housing Department on behalf of the Government of Jharkhand,. Utkarsh Mishra, Deputy Project Director (EAP) on behalf of Jharkhand Urban Infrastructure Development Company, and  Shanker Lal, Acting Country Director (India), the World Bank, on behalf of the World Bank.

Shanker Lal, Acting Country Director (India), said that over the past decade, Jharkhand has been focusing on bringing ULBs to the forefront of development and delivery of municipal services. However, there is a huge unfinished reforms and investment agenda for the State. He said that in this broader context, this project will support the process of strengthening the capacity of urban local bodies while investing in municipal services. 

Most of these components will be open to all 43 ULBs in the state who may wish to participate within an agreed framework under the project. Over 350,000 urban residents of the participating ULBs are expected to benefit, of which at least 45 percent will be women.

Interventions such as piped water supply, storm water drains, climate friendly road construction and energy efficient street lighting will not only help improve urban services but also make it environmentally sustainable.  Work on two sub-projects – Khunti water supply sub-project and the Dhanbad roads sub-project is expected to commence shortly, according to a PIB release.

The Loan, from the International Bank for Reconstruction and Development (IBRD), has a 7-year grace period and a final maturity of 22.5 years.