Finance Minister Mr. P. Chidambaram meets with World Bank President James Wolfensohn

Washington, DC
October 4, 2004

President of the World Bank Mr. James Wolfensohn hosted a private lunch for the visiting Indian Finance Minister, Mr. P. Chidambaram today at the World Bank headquarters. The two met over lunch for one hour. Others who were present were the Indian Executive Director to the World Bank Mr. C. M. Vasudev and the Finance Secretary Mr. D. C. Gupta. Mr. Wolfensohn was assisted by Mr. Praful Patel, Vice President, South Asia Region and Mr. Michael Carter, Country Director for India.

Mr. Wolfensohn and Mr. Chidambaram discussed a wide range of issues which included lending for infrastructure and irrigation. Among the infrastructure sectors identified were electricity, sea ports, air ports and railways. Mr. Chidambaram also outlined the ambitious project announced in the budget for restoration of water bodies. Mr. Wolfensohn evinced keen interest and promised to examine the same when the project is posed to the World Bank.

Mr. Wolfesohn offered to support a nation-wide project for providing drinking water, especially to rural areas. Mr. Chidambaram indicated to Mr. Wolfensohn that a nation wide project for rural electrification was under preparation. Both sides agreed to examine these ideas further.

Both Mr. Wolfensohn and Mr. Chidambaram agreed that the goal must be to raise the level of IBRD and IDA funding to $ 4 billion (Rs. 18,400 crore) a year. Mr. Wolfensohn said that if adequate infrastructure projects were posed to the World Bank, he could easily commit to provide the desired scale of funding.