The World Bank (WB) has expressed discomfort over the delay in the progress of the Food and Drugs Capacity Building Project implemented by the Union Ministry of Health and Family Welfare. The India Projects Portfolio of WB, which provides a glimpse into the ongoing WB assisted projects in the country, has made specific mention about the slow progress in the project implementation.

"Despite good progress in areas like policy development and training, the overall Project implementation is slow. Several important activities like conducting the baseline survey have been delayed and there is a large backlog in procurement of equipment," the report observed. It has also indicated that the WB has disbursed 7.3% of the amount it has committed towards the project by June 30, 2005. The total commitment amount is US$ 54.03 million. The project, approved in June 2003, is to be over by June 30, 2008.

The primary objective of the project is to improve the quality and safety of foods and drugs in India, by strengthening the regulatory framework and incorporating components of consumer education and public-private partnerships.

The policy development component includes activities like policy studies and reviews to underpin the formulation of policy and institutional reforms, as well as workshops, and consultations with stakeholders. Monitoring activities, i.e., the implementation of household surveys to assess knowledge on the quality, and safety of foods and drugs, and, independent audits on public and private laboratories and the establishment, and operation of a computerized management information system to enhance information flows and coordination between the Central and State regulatory agencies are also part of the project.

Strengthening the government's regulatory capacity for ensuring drugs quality at the Central and State levels, and upgrading related skills in the private sector is another major component. Consumer awareness is being improved regarding the rational use of drugs, supported by professionals, agencies, and NGOs. In addition, training is being provided to regulatory, and qualified staff, and industry personnel, while pharmaceutical standards will be updated. Civil works, equipment and furniture, laboratory supplies, and technical assistance, are also being financed as part of the project.

In an unrelated development, the WB had on April 3rd informed that it has postponed consideration of second stage funding for three health-related projects in the country. This was due to an ongoing investigation by the WB's Department of Institutional Integrity into allegations of possible fraud and corruption in the procurement of pharmaceuticals as part of the Bank-supported Reproductive and Child Health Program I (RCH I). Though WB made no comments on the investigation (because it is still ongoing), it informed that it has shared its findings so far with the Government of India. The other projects where WB funding has temporarily been suspended are the Second National Tuberculosis Control Project and the Karnataka Health Systems Project. The Bank had also informed that the three other health sector loans - HIV/AIDS III, Vector Borne Disease Control Project and West Bengal Health Systems - are still under preparation and have yet to reach a decision-making stage.