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ADB President Visits Gujarat To Assess Earthquake Relief and Rebuilding Work

US$500 million ADB loan supports reconstruction of earthquake-damaged areas

AHMEDABAD, INDIA (6 February 2002) - Asian Development Bank (ADB) President Tadao Chino, on a three-day visit to India, arrived in Gujarat today to review the progress of reconstruction and rehabilitation works financed by ADB under its US$500 million loan for the Gujarat Earthquake Rehabilitation and Reconstruction Project.

In March 2001, ADB approved the loan in response to the state's request for assistance, following the catastrophic earthquake in January 2001. ADB established the Extended Mission Gujarat (EMG) in Gandhinagar to be near the Gujarat State Disaster Management Authority and various state departments responsible for reconstruction, and to assist in prompt and efficient coordination and implementation of the project.

Earlier today, Mr. Chino visited various project sites in the Bhuj area and expressed satisfaction over the progress of the projects. "It is heartening to see the progress being made, the rebuilt villages, construction of roads and water systems and the extensive planning efforts for the four major towns severely damaged by the quake," Mr. Chino said. "Even more gratifying is to see the return of economic activity in the area, a reflection of the spirit and resilience of the people of Kutch and Gujarat. The Government's efforts in a comparatively short time frame are commendable." This morning, Mr. Chino also met with senior state officials. He will meet with Gujarat Chief Minister, Mr. Narendra Damodar Modi, later today.

The reconstruction and rehabilitation requirements were developed in conjunction with the state government, through the joint assessment with the World Bank and other donors. ADB's loan focuses on rural housing with emphasis on the villages in partnership with private organizations and nongovernment organizations (NGOs), reconstruction of rural and urban water supply, electricity, roads, municipal buildings, and other basic services and infrastructure, livelihood restoration and disaster management.

ADB's relationship with Gujarat began in 1995, when it became ADB's first focal state in India. In 1996, the US$250 million Gujarat Public Sector Resource Management Program loan was approved. Upon its successful completion in 2000, it was followed by a US$350 million loan supporting reform of the state's power sector. Mr. Chino said, "Our quick response to Gujarat's request immediately after the earthquake, was possible because of our ongoing excellent relationship with Gujarat and the state's familiarity with ADB requirements and procedures. Our strong support reflects our successful past relationship, and long-term commitment to Gujarat and India."

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