Funds flow to GoI
1. The World Bank shall provide funds to the Project by depositing money into the 'Special Account' at the GoI level. Funds from the World Bank will be made available to the Government of Maharashtra through the GoI under the standard terms of on-lending between GoI and the States.
2. The Special Account is a revolving account in which the World Bank deposits funds. These funds are used exclusively to cover the Bank's share of the eligible expenditure of the project. GoI opens the Special Account with the Reserve Bank of India. This account is maintained separately for each World Bank funded project in convertible foreign exchange.
Disbursements and Operation of the Special Account
3. The Special Account is operated by the Controller of Aid, Accounts and Audit (CAAA), Department of Economic Affairs, Ministry of Finance, GoI. The Bank will provide an initial advance, which will be transferred to GoM. The advance will initially be US$ 5 million, however, the project may draw less initial advance as may be required, and every quarter this balance will be replenished to the extent of amount spent out of this advance as evidenced by the consolidated quarterly Interim Unaudited Financial Reports (IUFRs) furnished by the PCU to the Bank in pre-agreed formats. The basis of preparation of these quarterly statements will be the state AG’s accounting system / monthly DDO’s accounts with the exception of the autonomous bodies which maintain their own accounts outside the State Consolidated Funds. The disbursement would be based on quarterly Interim Unaudited Financial Reports in formats agreed with IDA (Please refer Annexure 16 to 20 ). Based on quarterly consolidated IUFRs furnished by the PCU, , funds would be released on quarterly basis. IDA will finance 90 % of the Project expenditures including taxes and excluding beneficiary contribution wherever applicable,
2. Fund Flow Under MACP
Funds flow to GoI