Who: Union Government and World Bank
What: Signed Loan and Project Agreements
When: 4 June 2015
Why: For assistance of 400 million US dollars for Tamil Nadu Sustainable Urban Development Project
world bank
The Union Government on 4 June 2015 signed Loan and Project Agreements with the World Bank for assistance of 400 million US dollars forTamil Nadu Sustainable Urban Development Project (TNSUDP).
The objective of the project is to improve urban services in participating Urban Local Bodies (ULBs) in a financially sustainable manner and to pilot improved urban management practices in selected cities. The total project size is 600 million US dollars
Three main components of the Project
Investment in Urban Services: The project will support improvement in range of urban services including water, sewerage, municipal solid waste, urban transportation, sewerage management and storm water drainage. The project includes creation of a reserve fund to provide credit enhancements for municipal bonds and other market based Loan instruments issued by ULBs.
Result Based Grants for Urban Governance: The project will provide results-based grants to eligible ULBs to implement new urban-management models that strengthen governance and financial sustainability.
Urban Sector Technical Assistance: The project will support strengthening the capacity of ULBs and urban sector officials.