04 Jun 2015 15:05 IST

World Bank offers $400 mn loan for TN urban development project

Total project estimate is $600 million

The World Bank has extended a $400 million loan for the Tamil Nadu Sustainable Urban Development Project.

The loan and project agreements for the IBRD assistance were signed between the Central Government, Government of Tamil Nadu and the World Bank here on Thursday.

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.

The loan agreement was signed by Raj Kumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Central Government, and Onno Ruhl, Country Director, World Bank, on behalf of the World Bank.

The project agreements were signed by Praveen P. Nair, Deputy Secretary, Municipal Administration and Water Supply Department, Tamil Nadu Government, on behalf of the State Government and Anita Praveen, Principal Secretary/ Chairperson and Managing Director, Tamil Nadu Urban Infrastructure Financing Services Ltd (TNUIFSL), on behalf of TNUIFSL and Tamil Nadu Urban Development Fund. Onno Ruhl signed both the Project Agreements on behalf of the World Bank.