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U.S. to Assist Madhya Pradesh Improve
its Urban Infrastructure Services
July 14, 2005
Bhopal -- The United States Agency for
International Development (USAID) will assist the
government of Madhya Pradesh in its efforts to
improve the urban infrastructure services in the
state. This partnership was announced at the
launch of the Indo-USAID Financial Institutions
Reform and Expansion (FIRE-D) program here today.
Madhya Pradesh’s Minister of Urban
Administration and Development Jayant Mallayya and
USAID’s program manager N. Bhattacharjee announced
at the launch workshop today that the FIRE-D
program will work with the Urban Development
Department of Madhya Pradesh on activation of the
M.P. Urban Infrastructure Fund.
This state level facility will support urban
infrastructure project development. The USAID
program will also work with the cities of Ujjain,
Ratlam and Satna in project development related to
the Government of India’s National Urban Renewal
Mission (NURM); and with the Gwalior city
municipality in improving its resource base and
solid waste management services.
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 Madhya Pradesh, 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.
The program has already successfully introduced
major municipal legislative and financial reforms,
as well as market financing mechanisms for
investment in municipal infrastructure services.
The current USAID FIRE (D) Phase III Madhya
Pradesh state program will complement the
significant ADB and DFID initiatives on water and
sanitation improvements in four cities. Jointly,
these initiatives will help institutionalize
capacity at state and city levels for future water
and sanitation project development and operational
management, as well as supporting the urban reform
agenda of the Government of India.
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