K'taka stands 2nd in disbursement of World Bank funds

Bangalore, June 14: Karnataka has become the Second 'Best Performing State' in the country by achieving 33 per cent disbursement ratio of World Bank Funds in 2006.

According to a release from the World Bank (WB) here today, Karnataka had significantly improved its disbursement ratio of WB funds to 33 per cent in 2005 from 21 per cent the previous year.

This was highlighted, with other performance indicators, at the Annual Review of the World Bank financed portfolio in the State held under the Chairmanship of State Additional Chief Secretary Dr Malati Das and attended by senior officials of the State and the World Bank in Vidhana Soudha, the state Secretariat, here yesterday.

Commenting on the state's improved performance, WB Country Director Michael Carter said ''Karnataka has surpassed our expectations. The performance during 2006 has placed Karnataka as the second best performing state, with 33 per cent of funds disbursed and not a single project with 'in problem status.'' The meeting also discussed potential areas of engagement between the WB and the Government with special emphasis on rural livelihoods including women's empowerment, disabilities and state highways. During the discussion, the members agreed that ensuring financial sustainability of investments currently underway, especially in rural drinking water, tank rehabilitation and watershed, would be an important challenge.

Mr Carter, later, called on Chief Minister H D Kumaraswamy and congratulated him for the State's portfolio performance.

The Chief Minister evinced keen interest in establishing a Knowledge forum involving all stakeholders for informed and participatory policy making to promote inclusive growth in the State, address rural vulnerability and improve public service delivery through better infrastructure.

Karnataka was currently the fourth largest beneficiary of WB assistance to India at the State level, with about USD 900 million in financial support to six ongoing single state projects, covering urban water, municipal reforms, watershed, rural water supply, tanks management and state highways. It could potentially also be among the leading recipients of WB funding with pipeline projects worth more than USD 700 million.

Karnataka accounted for almost eight per cent of the WB's portfolio in India, the release added .

UNI