World Bank Approves 3,400-Crore Project to Upgrade Kerala’s Health System

Thiruvananthapuram: The World Bank has granted final approval for financial assistance of 400 million US dollars (around 3,400 crore rupees) for implementing the Kerala Health System Improvement Programme under the state’s Health Department. Of the total amount, about 70 per cent — 280 million US dollars (around 2,400 crore rupees) — will come from the World Bank, while the remaining share will be provided by the state government.
The project had earlier received preliminary approval in 2023. After this, the state government prepared a detailed project report and submitted it to the central government. Following several rounds of discussions between the state and the World Bank, the Bank’s General Body granted final approval.
Health Minister Veena George said the project would lead to significant progress in Kerala’s healthcare sector. Designed under the Programme for Results (PforR) model, the initiative aims to ensure a higher standard of living, longer life expectancy, and better quality of life for people by preventing diseases, accidents, and premature deaths.
The programme will strengthen coordination between departments to address new and emerging challenges, including those linked to climate change. It will also improve the overall efficiency of Kerala’s public health systems.
It also seeks to build a stronger ecosystem for preventing non-communicable diseases, enhance preparedness for new health threats, and strengthen emergency and trauma care services through an efficient 24/7 response network with ambulances and trauma registries.
The project will focus on expanding resource capacity, improving digital health applications, and increasing public spending on health. Local self-government bodies will also play a greater role, particularly in elderly care.
Officials said the programme will help create a modern, resilient health delivery model capable of responding to both current and future challenges.
Kerala has already achieved major progress in public health — especially in maternal and child health — surpassing several United Nations Sustainable Development Goals (SDGs) set for 2030. However, the state continues to face challenges such as limited public health funding, a growing burden of non-communicable diseases, and emerging health risks.
The Health Department said the new programme would address these issues and help build a stronger, more efficient healthcare system for the future.