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Government of India/Government of Tamil Nadu and World Bank signed loan agreement for Tamil Nadu Sustainable Urban Development Project
June, 05th 2015
                              PRESS INFORMATION BUREAU
                                GOVERNMENT OF INDIA


                                                                     New Delhi, June 4, 2015
                                                                          Jyaistha 14, 1937

       The Loan and Project Agreements for World Bank (IBRD) assistance of US$ 400
million for Tamil Nadu Sustainable Urban Development Project were signed between the
Government of India/ Government of Tamil Nadu and World Bank here yesterday.

        The Loan Agreement was signed by Shri Raj Kumar, Joint Secretary, Department of
Economic Affairs, Ministry of Finance on behalf of Government of lndia and Mr. Onno Ruhl,
Country Director, World Bank (lndia) on behalf of the World Bank. The Project Agreements
were signed by Shri Praveen P. Nair, Deputy Secretary, Municipal Administration and Water
Supply Department, Govt. of Tamil Nadu on behalf of the State Government and Smt. 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. Mr.Onno Ruhl signed both Project Agreements on behalf of the
World Bank.

       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 US$ 600 million, out of which World Bank
support is US$ 400 million.

The project consists of following three main components:

      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 also envisages 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.

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