Mumbai Urban Transport Project

On June 30, 2006, the World Bank lifted the temporary suspension of its financing for two components of the Mumbai Urban Transport Project (MUTP).

MUTP is an ambitious road and rail renewal plan which seeks to improve transportation in the traffic-choked mega-city of Mumbai. 

On March 1st, 2006, the World Bank suspended funding to two components of the MUTP project following concerns about the equitable resettlement and rehabilitation of people affected by the project.

The two components covered resettlement, financed by a US$ 79 million International Development Association credit; and road development, financed by US $ 150 million of a US $ 463 million International Bank for Reconstruction and Development loan. 

Since the suspension, the Bank and the Government of Maharashtra have worked closely to address the issues that led to the suspension of disbursement, especially in respect of the grievance process, the resettlement of shopkeepers, and post resettlement services. The Bank is pleased that good progress has been made in each of these areas.

It is however important to recognize that difficult and complex challenges lie ahead. The Bank will be working in close partnership with MMRDA to address these challenges including those related to further improvement of post resettlement services and to the resettlement of shopkeepers.

It is hoped that the lessons that have been learned about resettlement while implementing this project will help shape models to facilitate Mumbai’s longer-term development.