URBAN SECTOR

closed

The project seeks to help sustain the momentum of the Government of India's (GOI) urban sector investment and operations and maintenance (O&M) program for the next two years, and help guide the sector program preparation for the medium term. It also supports the strengthening of sector institutions to handle rapidly growing service needs; improve local resource mobilization; and increase the responsibilities of local governments for urban infrastructure planning, financing and implementation. To achieve these objectives, the project first includes (a) a sector expenditure program for infrastructure investments and O&M in water supply, flood protection, sanitation, roads and Kampung improvement in urbanized areas of about 300 local governments during GOI FY87/88 and FY88/89. Secondly, it includes (b) an Action Plan of measures initiating the longer-term reforms and improvements required to support the GOI's urban development policy objectives as defined by a Statement of Policies for Urban Development. It supports significant sector reforms reflecting GOI's declared sector policy of developing local government capabilities, reducing Central Government's share of urban infrastructure financing by increasing local resource mobilization, and increasing efficiency.