Announcement of Sweden and IDA Providing Thirty-One Million Eight Hundred Thousand Dollars for a Population Project in India on June 14, 1972

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 72/35 Subject: Sweden and IDA providing J1..U1e 14, 19 72 $31.8 million for a population project in India Sweden and the International Development Assocaition (IDA), a World Bank affiliate, are jointly providing $31.8 million for a comprehensive applied research-oriented project in selected areas of Uttar Prad.-!sh and Uysore states~ Sweden is providing $10.6 million equivalent in the form of a grant and IDA is extending a credit of $21.2 million equivalent on usual IDA terms. The project, first operation for the World Bank Group in support of India's family planning program, will cover 11 districts in Uttar Pradesh and Mysore, • including the cities of Luc.know and Bangalore, with a combined population of about 20 million. Districts with varying economic and social conditions have been selected with a view to evolving a fairly representative national sample. The main objective of the project is to develop a Management Information and Evaluation System that will meet the need for a systematic analysis of program data resulting in recommendations on a continuing basis for developing new approaches relevant to the Indian program as a whole. Indiav s populs.tion of 547 million (1971 census) is growing at the rate of 2.25% or about 12 million persons a year. The rapid rise in population has diminished the impact of the country's efforts to raise the living standards of the people, since much of the increase in national income was consumed ir1 • meeting the large~ food requirements and other essential needs of a growing population. In the 1960s, for instance, more than 60;? of the growth in income was absorbed by increasing population. /more IDA P.R. No. 72/35 -- India -- population I>. - 2 - Although India proclaimed an official population policy in 1951, it laun.ched a concerted effort to expand the country's family planning program ·~ only in 1965. An administrative machinery of more than 80,000 persons has been set up; a mass infonnation campaign has been launched; an approach to provide senrice at central points for groups of villages has been introduced; and post- partum programs have been initiated in selected large hospitals of several cities. The number of new acceptors increased from 2.4 million in 1966/67 to 3.8 million in 1970/71. At present about 11% of the 98 million couples in the reproductive ages of 15 to 44 are estimated to be protected by contraceptive methods. There is, however, . . 11f,ad for a more effective family planning program in order to achievE 1 the Government's objective of reducing the birth rate to 25 per 1,000 and the population growth rate to 1.5% by 1980. • The .project being assisted by Sweden and IDA represents a comprehensive approach to the problem. Its central core will be the development of a manage- ment-information and evaluation system to generate answers to operational questions, undertake research on demand aspects and recommend new approaches relevant to the national program. This will be done by two popul~tion centers, one in Lucknow and one in Bangalore, which will be set up with ',: h :: raJJpport of Indian technical assistance, also financed from this credit. In addition, the project includes financing of some 1,500 buildings and related equipment and furniture -- mostly rural health centers for field level personnel, although there will also be tLaining schools for assistant nurse- midwives m1:.:i family planning workers, urban maternity homes and family planning • clinics, matemity-sterlization wards and administrative buildings. Mobile teams for education-motivation and provision of family planning services are also part of this project. /more •• ~· IDA P.R. No. 72/35 -- India -- population - 3 - One new approach in the project is a nutrition program to provide supplementary feeding to pregnant mothers and young children to determine the effect of improved nutrition on the acceptance of family planning services, both directly as an incentive and indirectly as a result of the effect of decline in infant mortality on the desire for children. The nutrition com- ponent of the project will be carried out in two areas of Mysore and Uttar Pradesh. The total cost of the project excluding land is estimated at $31.8 mil- lion equivalent of which less than $2 million will be ill foreign exchange. • The Govemment of India will provide the land and finance the regular operating costs of the project estimated at $12.5 million eqai.valent. The project is scheduled for completion in 1978. The Governments of Mysore and Uttar Pradesh will be responsible for carrying out the project. A Go\.~m- ing Board is being set up in each state for this purpose. The project is designed by its demonstration effects on the national program to benefit the Indian economy. About 3.8 million births will be prevented between 1973 and 2000 in the two states. This in tum will con- tribute to improved per capita income and a reduction -in unemployment. The IDA credit to the Govemment of India will be for a term of 50 years, including 10 years of grace. It is interest free, but carries a service charge of 3/4 of 1% to cover IDA's administrative expenses • • - 0 -  • • •• . INTERN.ATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 June 14, 1972 TECHNI C'AL DATA PROJECT: Population COUNTRY: India TOTAL COST: $31.8 million IDA FINANCING: $21.2 million, SO years, 10-year grace period; free of interest but a service charge of 3/4 of 1% to cover IDA's administrative expenses • • OTHER FINANCING: Sweden is providing $10.6 million equivalent as a grant. The Government of India is providing the land and financing recurrent expenditures estimated at $12.5 million during project period. IMPLEMENTING ORGANIZATION: The State Govemments of Mysore and Uttar Pradesh, each of which is setting up a Governing Board under 'the chairmanship of the Chief Secretary. PROJECT DESCRIPTION: The project is designed to benefit the family planning program in the selected areas and the national program; in addition to providing buildings, vehicles and equipment, the project will help to finance the expansion of activities in such fields as nutrition, motiva- tion, research and evaluation and the development of a management- information and evaluation system to help policy makers and program administrators. PROCUREMEi~T: Small and scattet·ed contracts for civil works, furniture and vehicles to be awarded th1·ough local competitive bidding; contract for equipment estimated to cost the equivalent of $100,000 or more will be awarded on the basis of inter.national competitive bidding, with domestic manufacturers accorded a preferential margin equal to 15% of the c.i.f. costs of competing imports or to the existing rate of duty, whichever is lower. • ESTIMATED COMPLETION DATE: 1978 - 0 -