Bangalore: New World Bank funding of $ 600 million to Karnataka Government is in the pipeline for the next one year, a top bank official said today (Nov 7).

The bank would finance $ 200 million for the third economic restructuring programme and $ 400 million for four new projects, World Bank country director for India Michael F Carter told reporters in Bangalore.

"Hope very shortly…in two or three weeks. We are negotiating," he said on funding economic restructuring. The bank was committed to supporting fundamental economic reforms of Karnataka, where the performance was "impressive", he said.

Projects on urban water and sanitation, urban reforms, rural service delivery and health service would be covered under the $ 400 million programme, Carter said after meeting Chief Minister S M Krishna and senior State officials.

The World Bank was already committed to $ one billion to various ongoing projects in Karnataka, he said and indicated that with a series of loans in the offing, including $ 600 million, the credit could go up to $ 1.2 billion in the next two or three years.

As for the agenda for economic restructuring he listed, among others, reduction of revenue deficit and actions relating to quality of budget management, strengthening of governance and reforms in the power sector.

PTI