Publication: Times of India Mumbai;

Date: Oct 26, 2006;

WB boost for distant suburbs, satellite areas

TIMES NEWS NETWORK

Mumbai: The World Bank announced on Wednesday that it was willing to loan the state government $5 billion of the mammoth $60 billion needed to fund various infrastructure projects in Mumbai’s distant suburbs and satellite areas.

    The projects are for the Mumbai Metropolitan Region (MMR), which includes Thane, Belapur, Bhiwandi, Vasai-Virar and Alibaug. While infrastructure is to be developed in these areas, these farflung areas’ connectivity to Mumbai is also expected to be improved. The projects are slated to be completed in 15 years.

    While the WB’s in-principle agreement has boosted the state government’s plans, it has also turned the heat on the administration, which will have to meet the bank’s stringent requirements. The state, which had requested a bank loan, will now have to satisfy the bank’s criteria as also meet the requirements of an independent monitoring panel.

    Announcement of the loan came at the end of a meeting between a high-level bank delegation, led by its managing director Graeme Wheeler, and a state delegation, led by CM Vilasrao Deshmukh, at the CM’s official residence Varsha.

    Wheeler said the bank was pleased with the work being done on other WBfunded projects and would meet about 10% of the infrastructure development costs. The government also plans to get funding from the Centre, state, private sector and foreign investors.

    WB acting country director Fayaz Omar said, “In principle, we have agreed on the loan as Maharashtra has an impressive record on WB projects.’’ He pointed to how the state had successfully brought down its infant mortality rate and planned its water resources management.

    State secretary for special projects Sanjay Ubale said that since financing was already in place for most of the big infrastructure projects in Mumbai, the loan would be used to develop the far-flung areas and satellite regions in the metropolitan region.Plans for rail and road transport, sewerage and water supply are to be drawn up in two months, he said.

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