The Karnataka Health Systems Development Project's (KHSDP) Project II, valued at Rs 735 crore and totally funded by the World Bank is scheduled to be commissioned in December 2004.

A team of World Bank officials, which visited Bangalore, recently had a series of discussions with the Karnataka health and family welfare department officials. The team has helped the State Government to evolve a suitable model to implement this project, which is the first of its kind in the private-public participation in healthcare.

The project has three components with equal allocations improving the government hospitals in remote areas, introduction of government aided mass health insurance scheme and public private partnership.

According to KH Gopalakrishna Gowda, project administrator, KHSDP, the modalities for the implementation of the project are still to be finalised as the State Health department officials are studying the various models in other parts of the world and plan for a suitable model for the State. "One of the reasons for the delay in the implementation is the project was a first of its kind model," he added. However, Gopalakrishna Gowda is confident of finalising the agreement in this regard, by September end and to start the implementation by the year-end.

The World Bank team is said to have flatly refused to encourage the use of funds for buildings and other overheads works. The project guideline envisages priority for taking medical services to remote areas with the participation of private and non-governmental organisations with the support from the government institutions. It has clearly set targets to bring down the mortality rate in the state.

The World Bank officials are reported to have said that the new model would assure the best of health facilities for the people in the rural areas as the government's efforts to provide such services to them had not achieved the desired results in the past.

According to the sources in the health and family welfare department, the World Bank wants the government to encourage the people in the remote areas to avail health services provided by the private sector and non-governmental organisations with appropriate provisions for the State bearing the bulk of that cost. The cost structure for each kind of services is being worked out.