New Delhi, March 2: 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, the Bank reports in a press release.
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 citys 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 adding:
– 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: – 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.”
Carter said the urban challenge facing India was tremendous:
– By around 2025 nearly half a billion people will be resident in the countrys cities, posing both significant growth opportunities and poverty challenges. The Indian Government 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 – to see it as a development opportunity.
Meanwhile, Indian officials snubbed the World Bank Friday, claiming it was a “blessing” it had suspended financial backing for the Mumbai Urban Transport Project. The Indian authorities criticized conditions set by the Bank and said they would look elsewhere for funding to complete the 940 million US dollar (5,8 milliarder DKR) project.
– The World Bank is proud of its internationally recognized policies to deal equitably with just these sorts of challenges. Complex and difficult? Absolutely, yes. But we will not walk away, Carter concluded.
The 940 million US dollar MUTP is supported by an IBRD loan of 463 million dollar for the road and rail components of the project and an IDA credit of 79 million dollar for resettlement. Disbursements to the IDA credit and the road component of the loan (150 million dollar) 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 Banks low-interest lending window.
Kilde: www.worldbank.org
