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What is “universal eligibility” condition?

Topics Covered: Important International institutions, agencies and fora, their structure, mandate.

What is “universal eligibility” condition?


Context:

The $1 billion World Bank loan to curb covid pandemic for India comes with a condition of “universal eligibility” in procurements.

What is “universality eligibility” condition?

This would mean that all preferential market access policies, including Public Procurement Order, Micro Small & Medium Enterprises (MSME) Policy, certain benefits to start-ups, shall not be applicable on purchases made while implementing the national project.

Other conditions set by the World Bank:

The World Bank would have the right to review the procurement documents, inspect/audit all accounts, records and other files relating to the project. Compliance to these conditions has been made mandatory for the funding.

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Background:

World Bank has approved 1 billion USD aid to India to accelerate “India’s COVID-19 Special Protection Response Programme”.

  • Of the 1 billion USD aid, around 550 million USD is to be credited by the IDA (International Development Association) and 220 million USD by the IBRD (International Bank of Reconstruction and Development). The final maturity amount of the loan is 18.5 years. It also includes a grace period of five years.

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InstaLinks:

Prelims Link:

  1. Institutions under World Bank group.
  2. Difference between IDA and IBRD.
  3. Types of loans by IDA.
  4. Headquarters of these institutions.
  5. What is universal eligibility condition?

Mains Link:

Discuss how funds from international institutions are helping India tackle COVID 19 pandemic.

Sources: the Hindu.