Publication: Mitigating Risks in Power Reform : A New World Bank Lending Approach - Power Sector Reform in the Indian State of Haryana
The World Bank has agreed to support power sector reforms in Haryana with a new type of lending instrument--the adaptable program loan--recently approved by its board of directors. Under this approach, being applied for the first time, the Bank will provide a series of loans totaling US$600 million over eight to ten years, but will commit the loans only when the state government has reached agreed milestones. This approach allows the state government milestones--not the covenants of standard World Bank loans --to determine the timing of controversial actions. The flexibility is intended to improve the reform program's chances of success and avoid the stop-start lending pattern that has characterized the Bank's past lending to state electricity boards. This Note explains Haryana's reform strategy and how the adaptable program loan applies. Haryana's reform could have an important demonstration effect.
“Mostefai, Djamal. 1998. Mitigating Risks in Power Reform : A New World Bank Lending Approach - Power Sector Reform in the Indian State of Haryana. Viewpoint: Public Policy for the Private Sector; Note No. 142. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/7f15b612-94d2-5434-9770-cf4360570294 License: CC BY 3.0 IGO.”
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