At the outset, I am happy to be present, on the occasion of signing of the agreements ceremony for the three World Bank assisted projects of Government of Andhra Pradesh.  The Government of Andhra Pradesh has a long standing association of more than twenty years with the World Bank.  The World Bank has assisted in the past and funded various projects in the important sectors like Rural Development, Irrigation, Infrastructure development, Water Supply and Poverty alleviation.  The State Government has gained immensely through the association with the World Bank in formulating innovative projects and implementing them in an effective manner.  Similarly, I also believe that the World Bank would have also gained from the projects implemented in Andhra Pradesh and I am sure they are replicating the lessons learnt from this State in other States and Countries.

Today, the State Government is signing three agreements with the World Bank pertaining to key sectors like Roads, Rural Water Supply and Sanitation, and Urban Development.  State Government is committed to providing necessary budgetary support.  I am confident that the officials in charge of these projects would take action to implement them in a time bound manner so that the people of Andhra Pradesh benefit from the infrastructure created and the services which will flow from these infrastructure facilities.

As an example of the State Government's commitment to the welfare of the people, major chunk of the A.P. Road sector project is provided from the State Government budget which is more than the World Bank's share with a view to provide better quality and safe roads to the citizens of the State.

Similarly, the State Government is committed to improve the health, hygiene and sanitation of the rural population by providing clean and safe drinking water and sanitation services through community participation.  The A.P. Rural Water Supply and Sanitation Project will address the needs of safe drinking water for more than 20 lakh people in 6 districts of Andhra Pradesh.

A.P. Municipal development project will address high priority infrastructure requirement of various towns and municipalities in a comprehensive manner.  The infrastructure provided would address the needs of drinking water, transport, solid waste management, sewerage and storm water drains, street lighting on a city wide basis in addition to enhancing the capacity of all the urban local bodies in the State in planning and implementing projects.

I am extremely pleased and happy that the Country Director, World Bank, New Delhi Mr.Roberto N.Zagha is also present here and I thank him for his presence here and assure him that the Government of A.P. is fully committed to ensuring implementation of all the Projects that are being launched today and also hope that the World Bank will extend the same cooperation in future.

I also thank the Government of India for all their cooperation and support.

Before I conclude I would like to say one word.  Some people feel in a general way if the State or Government of India are financially sound why should they go for borrowing?  But if we look at the various developments that are taking place in the Country, or in other parts of the World also, it is only developing countries that will try to spend more for mobilizing funds apart from what they have got in their pockets, they would like to borrow money.  But one thing, we believe that whatever is borrowed it must be spent for capital expenditure.  The borrowed money should not be spent for revenue expenditure.  This is the theory we are adopting and we would like to continue this method in future also.  Once again I congratulate the World Bank Indian representative Mr.Zagha for the trouble he has taken for travelling all the way from Delhi to Hyderabad despite fog.

Thank you.