$39.5 mn World Bank loan for Karnataka

The World Bank has approved a $39.5 million loan for the Karnataka Urban Water Sector Programme to enhance efficiency in water supply to the state's urban residents.

The International Bank for Reconstruction and Development loan has a 20-year maturity and a five-year grace period. According to a press release issued by the World Bank, the project will benefit 200,000 residents in the cities of Gulbarga, Belgaum, and Hubli-Dharward.

The project has two components -- first, technical assistance to the Karnataka government in preparing a follow-on investment plan, and second, physical investment in the three urban local bodies to improve bulk water supply.

"The project is expected to help in improved institutional performance with respect to the operation and maintenance of water supply and provide incentives for private participation," Oscar Alvarado, the World Bank's task manager for the project said.