Objective & Project Cost

The objective of this Project is to enhance and strengthen the institutional capacity of the local government system in Kerala to deliver services and undertake basic administrative and governance functions more effectively and in a sustainable manner.

The Project will benefit 941 Grama Panchayats (GPs) and 87 Municipalities in the State. Investments made by the GPs and Municipalities will indirectly benefit the entire population of the State outside the six City Corporation areas. The estimated cost of the Project is Rs 1195.8 crore.

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Project Development Objective

KLGSDP has achieved its objective and the details are shown below

Sl No Activity / Task Current EOP Comments
1 PDO

Indicator One:

By end of project, 70% GPs and Municipalities will have passed the performance assessments for well- functioning fiduciary, planning and service delivery systems (total = 1038)

87% 85% Achieved
2 Indicator Two:

A well-established performance-based grant system is increasingly financed by GoK

86.6 (million USD) 60 Achieved
3 Indicator Three:

Number of direct project beneficiaries of which a certain percentage are female.

29.5 m

52%

29.5m

51%

Achieved

Along with institutionalization of local governance systems and making the accounts systems in LSGIs up-to-date and almost error free, 43,000 sub projects in different sectors had been successfully implemented which contributed immensely in service delivery. Replicable models of Anganwadis, BUDS Schools, Crematoria, Fish Markets, Bus Stations, Smart Class rooms, Dialysis centres in hospitals, renovation of ponds and construction of small check dams, drinking water schemes, road connectivity, front offices etc. are some of the commendable contributions of the first phase of the KLGSDP. This project has yielded rich outcomes in terms of improvement in quality of service delivery, transparency in administration and enhanced utilisation of financial resources, which have largely contributed in improving the quality of lives of the people.

The ongoing phase of Kerala Local Government Service Delivery Project (KLGSDP) ID Credit No.4872-IN with World Bank assistance of Rs. 182.83 million USD equivalents to Rs.1093.34 crore will be completed by 29th December 2017. The ongoing phase has achieved the Project Development Objectives as endorsed by the latest Aide Memoire of the World Bank of its recent mission during 24th -27th October, 2017.

(Project period- July 2011 to December 2017)

 Repayment period- 15 years (September 2016 to March 2031), Service charge-0.75%

PROJECT COST

                                                                                                                           Amount in million USD

Particulars Original Project Cost Revised Project Cost Actual disbursement
World Bank Share 200 *192.78 182.83
GoK Share 60 **78.8 78.80
Total 260 271.58 261.63

 *The loan amount in SDR (Special Drawing Rates) as per Financing Agreement is 128.1 which is equivalent to 200 million USD. Due to exchange rate fluctuations between SDR and USD, the Project cost was revised to 192.78.

 **As per Financing Agreement, GoK share was 60 million USD equivalent to Rs.276 crore which has to be released as Performance Grant from 2nd year onwards in the following percentage. 

Year World Bank Share GoK. Share
1 100% 0
2 84% 16%
3 70% 30%
4th year onwards

FY 2014-15 to 2016-17

60% 40%

                                                                                          Amount in Cr.

Particulars Original Project Cost Actual disbursement
World Bank Share 920 *1093.34
GoK Share 276 471.32
Total 1196 1564.66

*Due to rupee – dollar exchange rate fluctuation

 RELEASE AND UTILISATION

Total fund disbursed-Rs.1564.66 cr

Total fund utilized-Rs.1523.01 cr

Percentage of utilisation- 97.34 %

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Proposed follow on Project

Total Project cost-520 million USD (Rs.3380 cr)

World Bank Share-364 million USD (Rs.2366 cr)

GoK Share-156 million USD (Rs.1014 cr)

Repayment period and lending rate will be fixed at the time of finalisation of the loan. (Current lending rate for IBRD as of July 28, 2017- 1.4 % for 15 to 18 years & 1.5 % for 18 to 20 years)