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Public Sector Restructuring Program> Social Safety Net Mechanism - SRF> Objectives

Externally Aided Projects in the State

Importance of External Aid:
The State Government recognizes that External Aid have the potential to become an important source of finance for accelerating development of the State. This source has many advantages, which are not available in other means of finances. As per the new policy of Government of India (GOI), after 01-04-2005, all External Aid will be passed on to the State Government by GOI on Back-to-Back basis. (i.e. GOI will pass on external assistance to the State Governments on the same terms and conditions on which it has availed such assistance as Principal Borrower) Normally, rate of interests of such external assistances are linked with the present LIBOR rates.

Externally Aided Projects (EAPs) in Gujarat:
At present the State Government has 5 ongoing EAPs costing around Rs. 4220/- crore in various sectors sanctioned by various multilateral and bi-lateral agencies.

Brief summary of these projects is as below: (Rs. in Crs)

Sr. No.	Name of Funding Agency	Total Numbers of Projects	Total cost of Projects	Earthquake related Projects
1.	World Bank (WB)	4	3390	1
2.	Japan Bank for International Co-operation (JBIC)	1	830	0
3.	Asian Development Bank (ADB)	0	0	0
		5	4420	1

Out of the 5 EAPs, 1 project is related to Earthquake rehabilitation and reconstruction program. Rest other 4 projects are in Road, Technical Education, Water Resources and Forestry sector. Out of these 5 Projects, 3 Projects namely i) Gujarat State Highway Project, ii) Gujarat Earthquake Rehabilitation and Reconstruction Project and Technical Education Quality Improvement Project have completed during end 2007-08. Only 2 Projects namely i) Ongoing Project: Hydrology Project–Phase-II amounting to Rs. 24 crs and ii) New Project: Integrated Forestry Development Project-Phase-II amounting to Rs. 830 crs are under implementation.

From the total Projects amounting to Rs. 4220 crore, the State has been able to incur a total cumulative expenditure of Rs. 2820 crore so far. Out of this expenditure, the State has obtained a cumulative reimbursement in form of ACA amounting to Rs. 2420 crore. For the year 2008-09, the State Government has proposed Budget Estimates amounting to Rs. 552 crore.

Efforts to take advantage of External Aid >>
Statement showing details of ongoing Externally Aided Projects >>

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