Date:30/08/2006 URL: http://www.thehindu.com/2006/08/30/stories/2006083006271400.htm

National

World Bank resumes lending for 3 health projects

Special Correspondent

Finance Minister promises fully transparent procurement processes

NEW DELHI: The World Bank has resumed its $662-million (about Rs. 2,979 crore) lending for three health projects in India, which were discontinued for over a year.

Its board of executive directors approved the resumption following intensive efforts to dispel misgivings it might have had, an official statement said here on Tuesday.

Of the three projects, two pertain to the Central sector — the `Reproductive and child health-II project,' which is estimated to cost $350 million, and the $170-million `National tuberculosis control project.' The third project, costing $142 million, is for `Karnataka health systems development and reform.'

Chidambaram's commitment

At his meeting with World Bank President Paul Wolfowitz, Finance Minister P. Chidambaram gave a commitment to have fully transparent procurement processes conforming to the highest standards. He emphasised that the delay in sanctioning lending gravely hurt the delivery of health services to the poor, the statement said.

To give comfort to the Bank, a `Government accountability plan' was jointly drafted to bring about greater transparency in the procurement process of the health sector.