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 wi...
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| Format: | Viewpoint |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/1998/05/693582/mitigating-risks-power-reform-new-world-bank-lending-approach-power-sector-reform-indian-state-haryana http://hdl.handle.net/10986/11552 |
| Summary: | 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. |
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