The Hindu Business Line : TN signs pact with World Bank

THE Tamil Nadu Government has signed an agreement for credit assistance of $120 million from the World Bank for a poverty alleviation project and another for a $300-million loan for urban development.

According to a World Bank press release, the $300-million loan will support the Third Tamil Nadu Urban Development Project (TNUDP-III). It will assist the State Government in improving the quality of urban infrastructure and strengthening the capabilities of Urban Local Bodies, which will get technical assistance to improve delivery of urban services.

Under the urban infrastructure component, the World Bank will support investment in urban infrastructure in cities and towns over the next five years through a mix of credit and capital grants channelled through the Tamil Nadu Urban Development Fund.

It will also facilitate the development of urban roads and related components in the Greater Chennai Metropolitan Area to be implemented through the Chennai Metropolitan Development Authority.

The $300-million loan disbursed to the Government of India has a 20-year maturity and a five-year grace period. Through another agreement, the State Government has signed up for a $120-million loan for its comprehensive empowerment and poverty reduction programme that is expected to benefit 1.2 crore people.

The Tamil Nadu Empowerment and Poverty Reduction Project, also known as `Puthu Vazhvu' (New Life), will focus on creating opportunities to build social capital in poor communities and involve them in designing and implementing the changes that will affect them.

It includes three components: the Village Livelihood Programme to help communities manage their own funds and enable the very poor, particularly women and youth, to be involved in income generating activities; the District and State Support to Village Livelihood Programme will develop competent staff and agencies at the State and village levels to support village institutions; and the third component, Project Management, will facilitate and monitor the project at the State and district levels.

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