Indo-USAID Program Launched in West Bengal

April 26, 2005

Calcutta, April 26 - The United States Agency for International Development (USAID) and the Government of West Bengal have agreed to work together to improve water and sanitation services in West Bengal. In the launch and workshop organized at Hotel Oberoi Grand on April 26, 2005 , USAID Mission Director George Deikun and Mr. Asok Bhattacharya, the Honorable Minister of Urban Development and Municipal Affairs, announced that the Indo-USAID Financial Institutions Reform and Expansion (FIRE-D) program will work with the Government of West Bengal to design and operationalize a Municipal Development Fund. The fund's objective is to assist various cities in West Bengal to develop and finance water sanitation projects, improve garbage collection and disposal systems, and to improve the financial positions of municipal governments.

USAID Mission Director Deikun, in his first visit to Kolkata, emphasized the importance of infrastructure and governance to improve citizen services and sustain economic growth. U.S. Consul General George Sibley described a variety of other health, education, economic and environmental initiatives the U.S. Government has supported in Eastern India .

USAID and the Union Ministry of Urban Development launched FIRE-D's national program to address urban infrastructure needs in December 2004. The program, which will assist seven selected states including West Bengal , will focus on capacity building of state and municipal institutions for the development, financing and management of viable water and sanitation services with market-based financing.

The project aims to increase urban infrastructure investment by:

• increasing participation of municipalities, the private sector, and community organizations in the development and delivery of commercially viable urban infrastructure services;
• improving capacity of municipal and state governments, infrastructure agencies, and other urban professionals to manage urban growth, mobilize resources and improve infrastructure services; and
• supporting development of a market-based urban infrastructure finance system.