The Hindu : World Bank to release loan

Online edition of India's National Newspaper
Sunday, Nov 09, 2003

Southern States

Southern States - Karnataka-Bangalore

World Bank to release loan

By Our Special Correspondent

BANGALORE NOV. 8. The third tranche of the World Bank's Karnataka Economic Restructuring Loan (KERL) of $200 million is likely to be released in the next two to three weeks, according to Michael Carter, Country Director, World Bank. Mr. Carter, who held detailed discussions with the Chief Minister, S.M. Krishna, and senior government officials on Friday on the implementation of economic reforms in the State, expressed satisfaction on the use of the two earlier instalments of $250 million. "The bank is committed to supporting the fundamental economic reforms of Karnataka whose performance is impressive," he said. The World Bank had delayed the release of the third instalment of the loan stating that execution of reforms in the fiscal and power sectors had been ineffective. The State Government had been implementing economic reforms under the KERL since 2001. The bank would release the fourth and fifth instalments of the loan in the next two to three years, he said. Mr. Carter said the State was likely to get another loan of $400 million in the next four years for four projects for improving urban water supply and sanitation, municipal reforms, health services, and education. The State had received nearly $one billion from the World Bank, including $250 million loan under the KERL. To a query on power sector reforms, he said both Andhra Pradesh and Karnataka had been having problems in power sector reforms but was doing well in fiscal management, public resource management, e- governance, and transportation.

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