WB to extend $1 bn to Andhra

World Bank would be extending about $ 1 billion loan assistance covering six projects exclusive to Andhra Pradesh in the next three years apart from the funds being received by the state for roads and the health sector.

Disclosing this here today, World Bank managing director Greame Wheeler, who was on a one-day visit to Hyderabad to review the status of bank-funded anti-poverty initiatives, said exactly half of the $ 1 billion assistance committed to Andhra would be going to the irrigation sector alone.

"If all goes well, the funding for irrigation will be finalised within a year from now," he said during the media interaction.

According to Wheeler, the six projects that would receive World Bank funding include elimination of rural poverty, irrigation, education and health sectors.

Replying to a question, he stated that the bank will neither dictate nor prescribe any policy reforms to any state.

"Policy reforms have already been implemented in Andhra Pradesh. We are only here to work with the government to reduce poverty," he said while ruling out any conditionalities attached to project funding.

Responding to a question, Wheeler said the third phase of Structure Adjustment Loan (SAL) is committed to Andhra Pradesh. Appreciating the women self help group movement in the state, Wheeler said he found tremendous sense of pride and great spirit among these groups.

"They have done amazing things such as accessing education to their children," he said while narrating his observations derived from his interaction with one such group in a village close to the city on Monday.

Wheeler said the bank is currently working with the West Bengal government on a health-related project for funding. "We are keen to learn from the success of the West Bengal's decentralisation model," he said.

According to him, India may well become the world's third largest economy in next 20 years.