Contacts:
In Delhi: Sudip Mozumder, (91 11) 2461-7241 smozumder@worldbank.org In Washington: Dale Lautenbach, (202) 473-3405 dlautenbach@worldbank.org NEW DELHI, June 30, 2006: The World Bank yesterday lifted the suspension of its financing for two components of the Mumbai Urban Transport Project (MUTP). “The Bank and the Government of Maharashtra have been working closely over the last few months to address the issues that led to the suspension of disbursements, especially in respect of the grievance process, the resettlement of shopkeepers, and post resettlement services,” said World Bank Country Director, Michael Carter, “We are pleased that good progress has been made in each of these areas.” Carter said it was also important to recognize that difficult and complex challenges lay ahead: “We 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. We hope the lessons we have all learned about resettlement while implementing this project will help shape models to facilitate Mumbai’s longer-term development.” 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. MUTP is an ambitious road and rail renewal plan which seeks to improve transportation in the traffic-choked mega-city of Mumbai.
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