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The World Bank is an international financial
institution that provides financial andtechnical assistance to
developing countries
for development programs (e.g. bridges,roads, schools, etc.)
with the stated goal ofreducing poverty.
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Major institutions created as a result of the
Bretton Woods Conference in 27th December,1944
Two main countries which shaped thenegotiations were United
States and Britain
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Provide assistance to developing and
transition countries
Promote the economic development of theworld's poorer
countries
Finance the poorest developing countries
whose per capita GNP
is less than $865 a yearspecial financial assistance through
theInternational Development Association (IDA)
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Build capacity
Infrastructure creation
Development of Financial Systems Combating corruption
Research, Consultancy and Training
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Investment loans: Support of economic and
social development projects
Development policy loans: Quick disbursing
finance to support countries
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International Bank for Reconstruction and
Development (IBRD) :186 member countries
International Development Association (IDA):
168 members countries
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Trade flows
Bolster distressed banking systems
Keep infrastructure projects on track Shift advisory support
services
Support microfinance institutions
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Focuses on:
Fast-track the development
Support seven poorest states Total proposed lending program of
US$14
billion, for the next three years
Strategy is aligned with Government ofIndias own development
priorities
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Agriculture
Infrastructure:
Power Transport
Water
Urban development Skills
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Components Amount
(US $ Million)
Loan Terms
Rail 305 IBRD Loan repayable over 20
years with 5 year grace period
Road 150 IBRD Loan repayable over 20
years with 5 year grace period
Resettlement 79 IDA Credit - an interest-free loan
repayable over 35 years with a 10-
year grace period
Total From World Bank 542 Channelled through the
Government of India
Govt. of India and Govt.
Maharashtra
403
Total Cost of Project 945
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The low cost and stable financing it provideswith longer
maturity periods
Financing through the International
Development Association (IDA) Interest rate: 0.75% p.a.
Repayable over a period of 35 years
Inclusive of a 10 year grace period
Government estimates investment of $475billion
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