The UK-based DFID has come forward to boost the State Government’s urban infrastructure development endeavours by aiding the latter’s flagship development fund __ the Odisha Urban Infrastructure Development Fund (OUIDF) __ with a 25 million Pound sterling support.
This is the second support coming OUIDF way after German banking group KfW’s 52.5 million Euro loan-cum-assistance earlier this month. The German group has been mandated to create, operationalise and contribute to the fund. The DFID has agreed to support four specific areas of urban sector in the State.
According to the discussions held by the State Government with the British agency, the DFID will support creation of a Municipal Reform Implementation Cell (MRIC) with Directorate of Municipal Administration (DMA) in the State.
Besides, it will also strengthen DMA while building capacity of urban agencies, including ULBs, in overall project management cycles and municipal financial management.
Another sector in which DFID is intent on supporting is creation of a Regional Institute of Urban Management and Governance for policy support on the lines of State Rural Development Institute. The OUIDF will receive 5 million Pound sterling each from the DFID to its Project Development Fund and Grant Fund.
The aid will support design and development of projects on PPP mode in urban basic services in low-income settlement as well as meet the viability gap in funding for projects in the four sectors.
That apart, DFID will also provide 7 million Euro for technical assistance to four ULBs, DMA, Odisha Water Supply and Sewerage Board, Public Health Engineering Organisation as well as Housing and Urban Development Department.
That apart, another 8 million Euro will be meant for capacity building and supporting reforms process in these sectors. The DFID support will also be aimed at institutionalising a market-driven urban infrastructure financing mechanism in the State.