Union Government inks loan pact with World Bank for Tamil Nadu Urbanisation Project
Union Government has signed a loan and project agreement with World Bank to provide $400 million to the Tamil Nadu government for its Sustainable Urban Development Project.
The loan agreement, signed by Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance and Onno Ruhl, Country director of World Bank (India).
Tamil Nadu’s sustainable Urban Development Project aims at improving urban services in participating Urban Local Bodies (ULBs) in a financially sustainable manner. It also seeks at piloting improved urban management practices in selected cities.
The project consists of three parts
- Investment in urban services including water, municipal solid waste, sewerage, urban transportation and storm water drainage.
- Results-based grants for urban governance.
- Urban sector technical assistance to strengthen the capacity of ULBs and urban sector officials.
The size of the project is US 600 million dollars, of which 400 million dollars would be financed through the International Bank for Reconstruction and Development.