Announcement of IDA Approves Forty-Two Million US Dollars Credit to India for Urban Development in Madras on December 18, 1980

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington 1 D.C. 20433, U.S.A.• Telephone: (202) 477-1234 IDA NEWS RELEASE N0.81/25 December 18, 1980 IDA APPROVES $42 MILLION CREDIT TO INDIA FOR URBAN DEVELOPMENT IN MADRAS The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of SDR 32.6 mil- lion ($42 million) to India for a second urban development project to be carried out in Madras. Madras, the capital of Tamil Nadu state, is the trade and com- mercial center of southern India. With an annual growth rate of 5% between 1961 and 1971, Madras is the most rapidly growing metropolitan center in India. Its present population is estimated at 4.8 million. IDA approved a $24 mil lion credit in 1977 for a first urban development project in Madras. The $81 mill ion second Madras urban development project includes: • (a) the development of about 15,000 residential and about 200 industrial plots on two sites totalling about 180 hectares (ha), together with construc- tion and machinery loans and provision of community services; (b) provision of basic infrastructure and land tenure to about 50,000 slum households and provision of home improvement loans and grants to about 80,000 slum house- holds; (c) purchase of about 550 buses and depot improvements for Pallavan Transport Corporation and construction and imprc,.,ement of two roads 1 inking sites and services areas to employment centers; (d) civil works and equip- ment to improve sol id waste collection and infrastructure maintenance in the Madras Municipal Corporation; and (e) technical assistance and training for implementing agencies. The IDA credit to India is for 50 years, including 10 years of grace. It does not carry interest but bears a service charge of 3/4 of 1% per annum to cover administrative expenses. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a "basket" 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 ECHN I CAL DAT A PROJECT: COUNTRY: TOTAL COST: Second Madras Urban Development India $87. 9 mi 11 ion • IDA FINANCING: SDR 32.6 million ($42 million), standard IDA terms OTHER FINANCING: Government of Tamil Nadu IMPLEMENTING ORGANIZATION: The project will be implemented by several Tamil Nadu government agencies. The Madras Metropolitan Develop- ment Authority, 464 Poonamallee High Road, Madras 600 010, India, will be responsible for coordination, monitoring, and evaluation, PROJECT DESCRIPTION: The project ir.cludes: (a) the development of about 15,000 residential and about 200 industrial plots on two sites totalling about 180 hectares (ha), together with construction and machinery loans and provision of community services; (b) provision of basic infrastructure and land tenur~ to about 50,000 slum households and provision of home improvement loans and grants to about 80,000 slum households; (c) purchase of about 550 buses and depot improvements for Pa 11 a van Transport Corporation and construction and improvement of two roads 1 inking sites and services areas to employment centers; (d) civil works and equipment to improve sol id waste collection and infrastructure maintenance in the Madras Municipal Corpora- tion; and (e) technical assistance and training for implementing agencies. PROCUREMENT: Procurement of equipment (bus chassis and sol id waste management equipment) vaJued at $9.6 mill ion will be on the basis of international competitive bidding in accordance with IDA guidelines. Domestic bidders will be al lowed a preference margin equal to 15% of the c. i.f. bid price or the current rate of customs duty, whichever is lower. Contracts for civil works ($42.7 mill ion), which will be smal 1 and scattered, and for handcarts and refuse bins ($0.5 mil lion), and bus body materials ($2.2 mill ion) will be awarded on the basis of local competitive bidding under procedures acceptable to IDA. Bus bodies ($4.2 mil 1 ion) will be built in the Pallavan Transport Corporation workshop. CONSULTANTS: In or .r to faci 1 i tate imp roved deve 1opmen t p 1ann i ng and investment programming in the Madras metropolitan area the project would provide technical assistance totalling about 430 man-months of con~ sultancy of which over 90% is expected to be acquired locally. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 22% 1985 - 0 - •