March / April  2006




March/April Contents 

 Real Issues
 Malnourishment in
 South Asia


 South Asian issues
 Getting to know the
 past better



 News from elsewhere
 New animal species
 found in Indonesia

 Veggie chemical
 repairs DNA damage


 Bhera - the town that
 time forgot
- Part II

 World Bank in
 South Asia
 Grant to Afghanistan

Land management in

Urban services in


 Tollinton Market



 South Asian










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World Bank Supports Urban Service Delivery in Karnataka, India


WASHINGTON, March 14, 2005 ─ The World Bank approved today a US$216 million
loan to finance the delivery of urban services in the state of Karnataka through enhancing urban infrastructure, and improving the institutional and financial frameworks at the state and local levels.

The Karnataka Municipal Reform Project is designed to support an evolving process of urban reforms in Karnataka that focus on large-scale restructuring of urban governance and management. These reforms are expected to result in the creation of well-governed and functioning cities that are able to finance and deliver basic urban services for the urban poor in a sustainable manner.

With a total population of about 53 million and a level of urbanization of 34 percent, Karnataka is one of the most rapidly urbanizing states in India. Its growth in urban population, incomes, and competitive business has created a strong demand for quality services across all urban areas. Infrastructure investments have become an urgent priority for the state, yet the shortfall in meeting the investments need is huge.

"This project will significantly enhance the State’s urban services—from water supply and sewerage system to urban roads and slum up-gradation," said Michael Carter, World Bank Country Director for India. "It will also contribute to improved health conditions of the poor by improving access to sanitary services."

The project is designed around four main components:

• Institutional Development: Strengthen the institutional capacity in
undertaking basic urban planning and management functions at state and local
level institutions.

• Municipal Investment Support: Enhance urban infrastructure and services
delivery through the provision of investment support for upgrading urban

• Bangalore Development: Enhance Greater Bangalore metropolitan area’s critical
infrastructure and services delivery, particularly in roads and sewerage.

• Project Management: Support project implementation, including incremental
operating costs of relevant implementing units and a Project Development
Advisory Facility to support preparation and implementation of sub-projects by
Urban Land Bodies (ULBs).

This project is the second World Bank engagement with Karnataka in the urban
sector—the first was the water supply-related Karnataka Urban Water Sector
Improvement Project, approved on April 8, 2004—and it complements and builds
upon experiences of parallel initiatives by other donors working in the sector.

The loan, from the International Bank of Reconstruction and Development (IBRD),
the World Bank’s lending arm, is a Variable-Spread Loan with a maturity of 20 years, including a grace period of five years.





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