World Bank resumes $662 m health loan

World Bank on Tuesday resumed lending to three health projects in India amounting to $662 million (about Rs 29.79 billion), which were discontinued for more than a year.

The board of executive directors of the World Bank have approved to resume the lending after intensive efforts were made to clarify any misgivings that the Bank may have had, an official statement said.

The commitment to have fully transparent procurement processes that confirm to the highest standards was emphasised by the Finance Minister P Chidambaram in his dialogue with the World Bank President, it added.

The projects, in which the bank would resume lending include two in the central sector, namely Reproductive and Child Health-II Project at a cost of $350 million and National Tuberculosis Control Project ($170 million).

The third project is for Karnataka Health Systems Development and Reform Project at a cost of $142 million.

In his meeting with the World Bank President, Paul Wolfowitz, Chidambaram emphasised

that delay in sanctioning the lending in these projects was gravely hurting the delivery of health services to the poor in the country, the statement said.

A government accountability plan was jointly drafted to bring about greater transparency in the procurement process of health sector, it added.

Pointing out that the executive directors of board had extended unanimous support in approving India's health sector projects, the statement said they also expressed concern that delay in the part of the Bank would have some adverse impact.

The government feels satisfied at this development and looks ahead to work with the World Bank in addressing the challenges, it added.

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