Announcement of IDA Credit to India for Urban Development on October 29, 1981

• '1'41, • • ' • • • • • oWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 !~A NEWS RELEASE NO. 82/14 October 29, 1981 IDA CREDIT TO INDIA FOR URBAN DEVELOPMENT The International Development Association (IDA) has approved a credit of SD~ 22o2 million ($25 million) to India. IDA is the concessional lending affo]oate of the World Bank. The IDA credit will assist a $51.7 million project aimed at providing [mproved shelter and urban services in Kanpur, the largest city in Uttar Pradesh stateo Kanpur is the fourth city in India to receive funds from the World Bank and !DA for improving urban services including housing and transport. The others @re 6ombay, Calcutta, and Madras. The project will also strengthen metropolitan ~· h~mn nng and management in Kanpur and other urban areas in the state. The project will support the development of thre~ 11 s~tes and servic~s 11 @reas covering a total of 480 acres. Aboy_t .1!.+..,.80_Q _r:~.s.1.d.e.ntJ.gJ ..Plots __ ijr,_g___ ,S!fO. sma]~ ondustry plots will be established and provided with access roads and a fu]] range of urban services. For the major investment components, about 90% of total costs are expected to be fully recovered through plot sales, land· 0 and omprovement charges, and loan repayments. The project will also strengthen the municipal agencies responsible for provuding urban services in Kanpur. The IDA credit of SOR 22.2 million to the Government of India will be for 50 years, with 10 years of grace; it will be interest-free but will carry a servuce charge of 3/4 of 1% per year to cover IDA's administrative costs. The cred[t wi11 be committed when funds are available. NOlE: iDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equivalent of the SOR amount of the IDA credit reflects the exchange rates existing at the time of negotiation of the credit. FORM NO. 1121 (5-76) T E C H N I CA L DA T A PROJECT: COUNTRY: Kanpur Urban Development India • TOTAL COST: $51.7 million IDA FINANCING: SDR 22.2 million {$25 million). on standard IDA terms OTHER FINANCING: Government of Uttar Pradesh Loans and Direct Expenditures, $26.7 mi11ion IMPLEMENTING ORGANIZATION: Kanpur Development Authority {KDA) Mot ijhee 1 Kanpur Uttar Pradesh, India PROJECT DESCRIPTION: It will support : i) the development of approximately 14,800 residential and 540 small business plots on three sites cover- ing 480 acres together with shel~er foans and small business loans and· assistance; ii) provision of basic infrastructure, °land tenure, and home improvement loans to about. 20,000 slum families; iii) improvement of trunk and branch water supply, sewerage, and drainage infrastructure in central Kanpur; iv) improvement of solid waste collection and disposal, infrastructure maintenance, and traffic management in Kanpur; and v) consultant and advisory services to strengthen urban institutions in Kanpur and Uttar Pradesh. PROCU.REMENT: The total estimated value of civil works contracts under the project is approximately $25.3 million, tbe largest being the civil works for the Barra and Gujaini sites and services developments (totaling $7.6 million and $4.5 million,respectively), the slum upgrading works ($4.6 million) and con- struction of branch sewers· ($q.7 million). Contracts for works on the two larger sites and services and for bra·nch sewers will be let on a "slicing and packaging" basis after a 11-1 nd i a competitive bi dd i n·g, among prequa 1 i fi ed bidders in accordance with procedures satisfactory to IDA. CONSULTANTS: A technical consultant, experienced in the administration of large civil works contracts, will be hired by KDA to assist in contract qWard and administration. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: About 21% 1985 • - 0 -