Nitish happy with bank moves

Patna, Feb. 12: A group of joint international development partners comprising World Bank, Asian Development Bank and Department for International Development today granted a slew of development projects to Bihar.

The World Bank sanctioned a development policy on the basis of a loan-credit system to the tune of Rs 872 crore to support policy reforms being undertaken by the state.

The international bank, the Centre and the Bihar government signed an agreement to this effect on January 15.

Encouraged by the generous grant, chief minister Nitish Kumar, who had an hour-long meeting with the representatives of the Joint Development Partners’ Group, said: “Moved by the group’s response, we have agreed to take on more reform processes.”

“We are setting up a committee under the chairmanship of the chief secretary to monitor the reform process and the utilisation of the bank-sponsored funds,” he added.

The World Bank, said the chief minister, was also in the process of funding the Bihar Panchayat Strengthening project.

The project aims to improve autonomy, capacity and accountability of the panchayat raj institutions in rural pockets of the state.

The Asian Development Bank (ADB) has also agreed to finance construction of nine roads (820km) in Bihar.

Nitish conceded that the state was in the process to invite tenders for the projects. “The construction (funded by ADB) is likely to begin from June 2008,” he added. The government is also in discussion with the ADB to earn support worth US $ 500 million for electric power sector projects.

The Department of International Development (DID) today agreed to provide technical assistance worth US$35 million in this year itself to enable the state improve its governance and administrative reforms programme.

The DID also sanctioned US$100 million and US$150 million to improve its municipal governance and health sectors.

Expressing happiness over the sumptuous grants, aids and credits, the chief minister said the loans were possible because the government had created an atmosphere of development.

“The government’s improved functioning pegged world bodies to come together and support Bihar’s development initiatives,” he said.