In a major fillip to the urban
development sector in Andhra Pradesh, the World Bank has approved a loan
of US $ 300 million approximately Rs 1431.91 crore) under the Andhra
Pradesh Municipal development Project.
Disclosing this at an informal meeting on urban development,Chief Minister
K Rosaiah said the World Bank loan would provide a big impetus to the
governmentís initiative in taking up qualitative works in various
municipalities to meet the civic and infrastructure requirements of urban
people. Minister for Urban Development Anam Ramnarayana Reddy, Principal
Secretaries T S Appa Rao, Pushpa Subrahmanyam and other senior officials
attended the review meeting.
The Chief Minister said the total project cost is Rs 1670.55 crore (US
$350 million), out of which the state governmentís share would be Rs
238.64 crore (US $ 50 million). The project would commence from February
15, 2010 and is expected to close by December 31, 2015. He congratulated
the MA&UD Minister and officials for securing the loan and asked them to
implement the projects as per the schedule. He directed that efforts be
made to enter into the loan agreement during this month.
The projectís objective is to help improve urban services in the state and
the capacity of urban local bodies (ULB) to sustain and expand urban
services. The urban service improvements will be chosen in a demand-driven
manner and implemented by urban local bodies subject to several criteria
and with necessary technical support. The project will support
improvements in the financial, technical, and management capacities of all
ULBs of the state through technical assistance and as a condition for
The officials told the Chief Minister that the project would finance works
or goods to build, upgrade, or improve efficiency of, a full range of
municipal facilities for which ULBs are responsible like roads, sewerage,
water supply, sanitation, solid waste management, street lighting;
community centers, etc.
Each urban infrastructure investment sub project will have an estimated
cost of Rs.5 crore or more. The ULBs will be required to finance 10 per
cent of sub-project cost and will receive sub grants and sub loans,
repayable over 15 years at an interest rate equal to the Stateís borrowing
cost plus one per cent per annum in line with the financing structure
under JNNURM and UIDSSMT.
The key outcome indicators of the World Bank Project include increase in
public satisfaction with municipal services in participating cities; The
Subproject-specific outcomes such as the increase in hours of water supply
per day or volume of liquid or solid waste collected and sanitarily
disposed of, water and sewer connections, the number of people receiving
The key output indicators include: Expansion of water supply or sewerage
capacity and network; Increase in improved road surface; Number of staff
and councilors trained in municipal management; Number of the poor
completing job training; Formal discussion or adoption of revised state
frameworks for urban finance and planning and Adoption of revised general
The Chief Minister suggested the Minister, M.A.&U.D to continuously review
the various works taken up district-wise and monitor the progress.