World Bank Suspends Support to Major Indian Urban Transport Initiative
Contacts: In Delhi
Sumir Lal (91 11) 2461-7241
slal@xxxxxxxxxxxxx
In Washington
Dale Lautenbach (202) 473-3405
dlautenbach@xxxxxxxxxxxxx
NEW DELHI, Thursday, March 2, 2006 â?? The World Bank has temporarily
suspended
financial support to the roads and resettlement components of the Mumbai
Urban
Transport Project (MUTP) until concerns around the equitable treatment of
people affected by the works are resolved.
MUTP is an ambitious road and rail renewal plan which involves the
involuntary
resettlement of more than 17,000 households, and about 2,500 shops and small
industrial units. About 14,000 households have already been moved to secure
dwellings. These people were among the city's poorest, most living along
railway tracks in squalid and dangerous conditions.
They are now settled in high-rise buildings, where they will be given
security
of tenure, and surveys have shown that many of them are largely content with
their improved circumstances. In addition, the efficiency of the rail system
has improved, easing the commute for millions of Mumbai residents.
However, there have also been difficulties with aspects of the
implementation
of this complex project, all taking place in a city of 13 million people and
one of the most crowded metropolitan areas in the world. Serious problems
have
arisen with the resettlement of some households which has not been carried
out
in compliance with agreements between the Bank and the state Government of
Maharashtra.
A number of the resettled households are faced with a set of
post-resettlement
problems such as the predictable delivery of services like water and waste
removal. Some householders face increased commuting times and there have
been
delays in transferring maintenance funds for the upkeep of buildings. In
addition, a grievance system for those seeking redress is not working
properly.
"Suspension is a serious move, reflecting how serious we are about a
successful
outcome for these issues," said Michael Carter, World Bank Country Director
for
India in New Delhi. "The Government of Maharashtra has a pragmatic action
plan
both to address the existing problems and to ensure that the resettlement
yet
to be done proceeds in accordance with our agreements. The key now is
implementation. We will be working closely with the government to support
its
efforts to ensure satisfactory outcomes for the affected people. Once
progress
has been made, we will review the suspension."
He said the Bank was confident the issues could be addressed: â??We will not
disengage for a moment in the process of helping the government to fix this,
consistent with our agreements and in a manner in which civil works can
continue without undue delay. No one should be left behind, neither
shopkeepers
nor householders.â??
Carter said the urban challenge facing India was tremendous: "By around 2025
nearly half a billion people will be resident in the country's cities,
posing
both significant growth opportunities and poverty challenges. The Government
of
India has recognized this in its National Urban Renewal Mission.
Unfortunately
some resettlement is unavoidable for city development, and the challenge is
to
make this a process that improves the prospects and living standards of
those
affected â?? to see it as a development opportunity."
"The World Bank is proud of its internationally recognized policies to deal
equitably with just these sorts of challenges," said Carter. "Complex and
difficult? Absolutely, yes. But we will not walk away."
The US$940 million MUTP is supported by an IBRD loan of US$463 million for
the
road and rail components of the project and an IDA credit of US$79 million
for
resettlement. Disbursements to the IDA credit and the road component of the
loan (US$150 million) have been suspended pending a resolution of issues
outlined above.
IDA is the International Development Association, the concessional lending
arm
of the World Bank Group, and IBRD is the International Bank for
Reconstruction
and Development, the Bank's low-interest lending window.
Contacts: In Delhi
Sumir Lal (91 11) 2461-7241
slal@xxxxxxxxxxxxx
In Washington
Dale Lautenbach (202) 473-3405
dlautenbach@xxxxxxxxxxxxx
NEW DELHI, Thursday, March 2, 2006 â?? The World Bank has temporarily
suspended
financial support to the roads and resettlement components of the Mumbai
Urban
Transport Project (MUTP) until concerns around the equitable treatment of
people affected by the works are resolved.
MUTP is an ambitious road and rail renewal plan which involves the
involuntary
resettlement of more than 17,000 households, and about 2,500 shops and small
industrial units. About 14,000 households have already been moved to secure
dwellings. These people were among the city's poorest, most living along
railway tracks in squalid and dangerous conditions.
They are now settled in high-rise buildings, where they will be given
security
of tenure, and surveys have shown that many of them are largely content with
their improved circumstances. In addition, the efficiency of the rail system
has improved, easing the commute for millions of Mumbai residents.
However, there have also been difficulties with aspects of the
implementation
of this complex project, all taking place in a city of 13 million people and
one of the most crowded metropolitan areas in the world. Serious problems
have
arisen with the resettlement of some households which has not been carried
out
in compliance with agreements between the Bank and the state Government of
Maharashtra.
A number of the resettled households are faced with a set of
post-resettlement
problems such as the predictable delivery of services like water and waste
removal. Some householders face increased commuting times and there have
been
delays in transferring maintenance funds for the upkeep of buildings. In
addition, a grievance system for those seeking redress is not working
properly.
"Suspension is a serious move, reflecting how serious we are about a
successful
outcome for these issues," said Michael Carter, World Bank Country Director
for
India in New Delhi. "The Government of Maharashtra has a pragmatic action
plan
both to address the existing problems and to ensure that the resettlement
yet
to be done proceeds in accordance with our agreements. The key now is
implementation. We will be working closely with the government to support
its
efforts to ensure satisfactory outcomes for the affected people. Once
progress
has been made, we will review the suspension."
He said the Bank was confident the issues could be addressed: â??We will not
disengage for a moment in the process of helping the government to fix this,
consistent with our agreements and in a manner in which civil works can
continue without undue delay. No one should be left behind, neither
shopkeepers
nor householders.â??
Carter said the urban challenge facing India was tremendous: "By around 2025
nearly half a billion people will be resident in the country's cities,
posing
both significant growth opportunities and poverty challenges. The Government
of
India has recognized this in its National Urban Renewal Mission.
Unfortunately
some resettlement is unavoidable for city development, and the challenge is
to
make this a process that improves the prospects and living standards of
those
affected â?? to see it as a development opportunity."
"The World Bank is proud of its internationally recognized policies to deal
equitably with just these sorts of challenges," said Carter. "Complex and
difficult? Absolutely, yes. But we will not walk away."
The US$940 million MUTP is supported by an IBRD loan of US$463 million for
the
road and rail components of the project and an IDA credit of US$79 million
for
resettlement. Disbursements to the IDA credit and the road component of the
loan (US$150 million) have been suspended pending a resolution of issues
outlined above.
IDA is the International Development Association, the concessional lending
arm
of the World Bank Group, and IBRD is the International Bank for
Reconstruction
and Development, the Bank's low-interest lending window.