Lok Sabha Question No. 1650 (UNSTARRED), answered on 2016-05-04
Subject: Foreign Funded Projects
Ministry: HOUSING AND URBAN  POVERTY ALLEVIATION
Asked by: RAHUL RAMESH SHEWALE

O.I.H.

## GOVERNMENT OF INDIA MINISTRY OF HOUSING & URBAN POVERTY ALLEVIATION

## LOK  SABHA

UNSTARRED QUESTION  NO. 1650

TO BE ANSWERED ON MAY 04, 2016

## FOREIGN FUNDED PROJECTS

No.  1650. SHRI RAHUL KASWAN:

Will the Minister of HOUSING AND URBAN POVERTY

ALLEVIATION be pleased to state:

- (a)  the  number  and  details  of  foreign  funded  projects  regarding environmental  development  which  are  presently  running  in  urban
- slums in the country particularly in Rajasthan and since when;
- (b) whether these projects have actually been started;
- (c) if so, the details thereof; and

(d) the steps taken by the Government for equal distribution of foreign funds received for this purpose in the entire country?

## ANSWER

THE MINISTER OF HOUSING AND URBAN POVERTY ALLEVIATION [SHRI M.VENKAIAH NAIDU]

(a) to (d): As  reported  by  Department  of  Economic  Affairs  (DEA), Ministry of Environment, Forest & Climate Change and State Government  of  Rajasthan, there is no ongoing externally aided projects  to  finance  environmental  development  in  urban  slums  of Rajasthan.    DEA  has,  however,  reported  that  following  activities  are undertaken under World Bank assisted projects:

- i. The World Bank is financing a USD 13.7 million sub component
2. for slum upgrading in the city of Berhampur, Odisha under the ongoing Orissa Disaster Recovery project to improve infrastructure in 80 slum settlements of the city to improve the living conditions of  households  in  slums.    These  improvements  will  include streets,  access  to  improved  water  and  sanitation,  drainage, septic management and street lighting.  The level of service to be provided will be determined by the available trunk infrastructure,  the  physical  conditions,  size  of  the  settlements and the available resources.  The work has not started yet and the project will be undertaken in about 80 settlements covering a population of about 30,000.
- ii. The  World Bank  assisted on-going Tamil Nadu  Sustainable Development  Project  (TNSUDP)  inter  alia  envisages  benefitting the  poor  through  the  improvement  of  water  and  sanitation  in slums and other vulnerable areas. This project support improvement  in  a  range  of  urban  services,  including  water, sewerage, municipal solid waste, urban transportation, septage management and storm water drainage. Environmental sustainability will be significantly enhanced with stronger focus on urban environment improvements under the component 'Investment  in  Urban  Services  Component'  (cost  US$  504  M; World Bank Loan: US$ 323 M), with a commitment of at least 40% of  the  component  devoted  to  sub  projects  supporting  urban environment  improvement.    Moreover  design  has  incorporated climate  change  considerations.    For  example,  Chennai  storm water  drainage  sub-project  considered  extreme  flooding  levels that take into consideration potential climate change.

Contd..

- iii. The ongoing World Bank assisted Andhra Pradesh & Telangana Municipal Development Project, inter alia, supports sub projects to  improve  urban  infrastructure,  including  in  urban  slums,  such as  city  roads,  sewerage,  water  supply,  sanitation,  solid  waste management, energy efficiency etc.

DEA  has  further  reported  that  the  financing  from  the  multilateral agencies, such as World Bank, ADB etc is in the form of loan and is required to be repaid.  Therefore, such projects can be taken up in a State only if the State Government concerned evinces interest to take multilateral  financing.    All  proposals  from  State  Governments  for assistance  from  a  Multilateral  Development  Bank  (MDB)  are  routed through the Central line Ministry to ensure their complementarity/convergence,  as  also  alignment  of  such  projects  to national  priorities.    The  debt  sustainability  of  the  State  is  also considered.    The  projects  are  also  considered  by  the  Screening Committee  in  the  DEA.    Based  on  the  recommendations  of  the Screening Committee, the projects are posed to the MDB for financing.

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