Loan pacts signed with WB for health projects

India today signed four loan agreements with the World Bank for a total assistance of $792 million for three health care projects and one rural water project.

Two of the health projects "" Reproductive and Child Health Project II and Second National Tuberculosis Control Project "" are central sector programmes. The third project, Karnataka Health System Development and Reform Project, is a state sector project.

The rural water supply project was designed to improve the effectiveness of Rural Water Supply and Sanitation services under the control of panchayati raj institutions and local communities in Uttaranchal, an official release said.

A World Bank release said the project, the first of its kind under Rural Water Supply and Sanitation (RWSS) services globally, will support state and sector-wide common policies and institutional arrangements for improving service delivery.

The total cost of Reproductive and Child Health Project II from fiscal year 2006 to fiscal year 2010 is expected to be $2.23 billion.

Besides World Bank's assistance of $360 million, the central government will provide domestic budgetary support of $1.06 billion. The balance is expected to be provided by other development partners, including the department for international development.

The total cost of Second National Tuberculosis Control Program from fiscal year 2006 to fiscal year 2011 will be $342 million. Besides WB's assistance of $170 million, the Centre is providing domestic budgetary support of $42.5 million for the project. The balance is expected to be provided by other development partners.

The total cost of Karnataka Health System Development and Reform project from 2006 to 2001 is $206.48 million. While the World Bank's assistance comes to $141.83 million, the government of Karnataka will contribute $64.65 million.

Credit from the International Development Association, the World Bank's concessionary lending arm, carries a 0.75 service fee, a 10-year grace period, and a maturity of 35 years.