Neeraj Rohmetra
JAMMU, Apr 24: In a major decision that would go long way in construction of infrastructure damaged by devastating floods of September 2014 in Jammu and Kashmir, the World Bank, Centre and State Governments have agreed to sign tripartite agreement very soon for providing Rs 1500 crores loan to Jammu and Kashmir spread over a period of five years, extendable by two years.
All the three parties to the agreement have agreed to terms and conditions of Rs 1500 crores loan, which would help the State in re-construction of damaged infrastructure in various sectors including roads, hospitals, irrigation, education and rehabilitation of flood victims, official sources told the Excelsior.
They said the terms and condition were finalized in New Delhi this evening at a high level meeting of the World Bank representatives, Central Government and delegation of Jammu and Kashmir Government, which was headed by Principal Secretary, Planning and Development Department, BR Sharma, who is also Home Secretary of the State.
According to sources, the World Bank today formally agreed to demand of Jammu and Kashmir Government to extend it the assistance of Rs 1500 crores to rebuild infrastructure damaged by the floods in September 2014 in the State in Phase-I.
As per terms and conditions of the agreement, the works to be undertaken for re-construction under the World Bank aid, will have to be completed in five years but their term can be extended by two years. The further extension for the projects, if necessitated, can be given only by the Board of Governors of the World Bank.
“The formal terms and conditions of the agreement have been agreed upon by all three parties including the World Bank, Central and the State Government,” sources said, adding the agreement would be signed among the three parties very soon after which the grants from the World Bank would start flowing for the projects identified by the State Government to be taken up for rebuilding after being damaged in the devastating floods.
The World Bank funds, according to sources, will flow depending upon utilization of funds and spending capacity of the State Government.
“During today’s negotiations, the World Bank representatives insisted upon information on timely spending of the funds on the projects on quarterly basis. However, the State Government sought margin. Though the State representatives said they would try to stick to schedule, they urged the World Bank not to insist on quarterly information and keep space for some margin,” sources said, adding the World Bank agreed to the State request.
The meeting decided that tenders for execution of works under the World Bank loan would be floated at international, national and local levels depending upon nature of the projects.
The World Bank assured representatives of the State Government that the funds would be released as soon as the works were taken up for execution.
It may be mentioned here that Government infrastructure and public property had suffered extensive damage during worst every floods in the State in September 2014 with losses running into thousands of crores of rupees.
The State Government had sought Rs 44,000 crores worth package from the Centre. However, a final word from the Government of India is awaited.
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