India Signs Financing Agreement with World Bank for Us$ 100 Million for Uttarakhand Health Systems Development Project. The Financing Agreement was signed by Mr. Raj Kumar, Joint Secretary..
For a better health care accessibility in India
India Signs Financing Agreement with World Bank for Us$ 100 Million for Uttarakhand Health Systems Development Project. The Financing Agreement was signed by Mr. Raj Kumar, Joint Secretary, Department of Economic Affairs on behalf of Government of India and Mr. Hisham Abdo, Acting Country Director, World Bank (India) on behalf of the World Bank.
A financing agreement was for IDA credit of US$ 100 with the objective of the project being, to improve access to quality health services, particularly in the hilly districts of the State, and to expand health financial risk protection for residents of the State.
What is IDA?
- The International Development Association (IDA) is the part of the World Bank that helps the world’s poorest countries.
- Overseen by 173 shareholder nations, IDA aims to reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities, and improve people’s living conditions.
- IDA complements the World Bank’s original lending arm—the International Bank for Reconstruction and Development (IBRD).
What is the Lending Scheme?
- Out of the total project size of USD 125 million, USD 25 million will be the counterpart contribution of the State Government.
- IDA lends money on concessional terms. This means that IDA credits have a zero or very low interest charge and repayments are stretched over 25 to 40 years, including a 5- to 10-year grace period. IDA also provides grants to countries at risk of debt distress.
- In addition to concessional loans and grants, IDA provides significant levels of debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative and the Multilateral Debt Relief Initiative (MDRI).
The projects two components are, (i) Innovations of engaging the private sector; and (ii) Stewardship and system improvement. The planned design of the Project consists of multiple self-contained clusters of clinical services managed by operators, providing services for free or at nominal charges.