Announcement of IDA Assists Urban Development in Madras, India on March 10, 1977

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/35 MARCH 10, 1977 IDA ASSISTS URBAN DEVELOPMENT IN MADR~S, INDI~ The International Development Association (IDA), an affiliate of the \forld Bank, is providing $21• mi J 1 ion to help finance a project de- signed to improve urban services and emrloyment opportunities for the poor in the metropolitan area of Madras, India. Madras, the capital of Tamil Nadu State, is the fourth largest city in India. The present metropolitan area population of Lf.lf million is growing by more than 200,000 a year. Annual per capita income in the area is $95. There are serious deficiencies in important urban services. The main objective of the $52 mill ion project is to develop and promote low-cost solutions to Madras' problems in the sectors of shelter, employ- ment, water supply, sewerage and transport, and to make investments • responsive to the needs of the urban poor . The project will provide a) sites and services, including the preparation and servicing with roads, drainage and individual water supply and sewerage connections of about 13,500 plots serving some 74,000 persons; b) new and better roads, footpaths, drainage, water supply, and community facilities in 85 slums with a population of 126,500 people; c) work sheds, equipment, training and finance to generate about 9,000 jobs in small-scale and cottage industries; d) training, equipment, buildings and recurring expenditures to provide supplelllentary nutrition, health examinations and immunizations to an estimated 17,000 children under six years and 7,000 expectant and nursing mothers and health and family plannin9 education to about 20,000 adult women; e) rehabilitation of the existing water supply and sewerage systems; f) road and traffic improvements with emphasis on footpaths and cycle tr~cks; replacement of 285 buses and construction of bus terminals and passenger shelters; and g) technical assistance to the Madras Metropolitan Development Authority. The IDA credit wi 11 finance about 50% of the cost of the project. The IDA credit to India is for 50 years, including 10 years of grace. It • is interest free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. The proceeds will be channelled to the Government of Tamil Nadu, in accordance withthe Government of India's standard terms for the financing of state development projects. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 • (5-76) T ECHN I CAL D A T A PROJECT: Madras Urban Development COUNTRY: India TOTAL COST: $52 mi 11 ion IDA FINANCING: $24 million credit, standard IDA terms OTHER FINANCING: Government of Tamil Nadu IMPLEMEN71NG ORGANIZATION: The project wi 11 be implemented by several Tamil Nadu Gov- ernment agencies. The Madras Metropolitan Authority, 464 Poonamallee High Road, Madras 600 010, India, will be responsible for coordination, monitoring and evaluation. PROJECT DESCRIPTION: The prov1s1on of: a) sites and services for about 13,500 families at three sites covering a total area of about 175 hectares (ha.); b) basic infrastructure services and community facilities in 85 slum areas covering an area of 185 ha. with a population of about 23,000 families, with open plots~ be developed for an additional 7,500 families; c) sheds, equipm~nt, finance and training~ to create about 9,000 jobs in small-scale and cottage industry; d) buildings, equipment and training to provide supplementary nutrition, health examinations, immunization, health and nutrition education and functional literacy training for about 17,000 pre-school age children and 20,000 women; e) rehabilitation of the existing water supply and sewerage systems; f) road and traffic improvements and traffic engineering measures; g) replacement of 285 over-aged buses and construction of depots, terminals and passenger shelters; and h) technical assistance. PROCUREMENT: Procurement of equipment with an estimated total value of $5 mi 11 ion (e.g., bus chassis, water supply equipment) will be on the basis of international bidding in accordance with IDA guidelines. Indian suppliers competing under international competitive bidding will be granted a preference margin of 15% or the current rate of import duty, whichever is less. Contracts for civil works, with an estimated total value of $33 million, which will be small and scattered throughout the city, together with contracts totalling an estimated $4.5 million for self-help building materials, some water supply and sewerage equipment, traffic engineering and control equipment and medical supplies, will be let under the Government of Tamil Nadu procedures of local competitive bidding acceptable to IDA. Bus bodies will be built by the workshop of the Pallavan Transport Corporation, and they will not be financed under the credit. CONSULTANTS: Advisors on short-term consultancy services to assist urban -development planning, financial management, capital program- ming and small-scale industry promotion and consultants' services to assist in reorganizing and improving the accounting system will be engaged. ECONOMIC RATE OF RETURN: 21% (average for components where benefits can be quantifi~ ESTIMATED COMPLETION DATE: 1981 - 0 -