ADB Approves US$200 Million Assistance Package for Tsunami-Affected States in India
MANILA, PHILIPPINES - ADB today approved a US$200 million loan and grant assistance package to help India restore livelihoods and rehabilitate and reconstruct damaged infrastructure in Tamil Nadu and Kerala in the wake of the devastating tsunami of December 2004.
The assistance package comprises a $100 million grant drawing on grants available from ADB's Asian Tsunami Fund established in February 2005, and a $100 million loan from ADB's ordinary capital resources. Of the amount, $143.75 million is allocated to Tamil Nadu and $56.25 million to Kerala.
The tsunami tidal waves that hit the southern and eastern coastal areas of India caused extensive damage in the
The worst affected mainland states in India were Tamil Nadu and Kerala. More than 7,900 people lost their lives to the tsunami in Tamil Nadu, with one of its 12 affected coastal districts reporting 6,051 deaths. In Kerala, 171 deaths were reported.
The Government quickly responded to the disaster and, together with relief organizations, civil society and the private sector, launched effective relief operations. To help accelerate the transition from relief to reconstruction, the Government asked for emergency assistance from ADB, the United Nations Development Programme (UNDP), International Fund for Agricultural Development, and the World Bank.
According to the ADB-UNDP-World Bank joint needs assessment, the reconstruction financing needs caused by the tsunami amounted to at least $868 million in Tamil Nadu and $157 million in Kerala. The livelihoods of almost half a million families in these two states were also affected.
The three donors and the Government agreed to allocate livelihood restoration, transportation, and rural and municipal infrastructure in Tamil Nadu and Kerala to ADB; housing, fisheries, and agriculture sectors to the World Bank; and disaster risk management to the UN, according to respective resources and expertise.
"The project will focus on the highest priority areas, identified through consultations with the state governments, civil society, and other stakeholders," says Arjun Goswami, an ADB Principal Governance Specialist.
"Rehabilitation and reconstruction will be carried out to a pre-tsunami level or a higher, cost-effective, environmentally sustainable standard with design incorporating features critical to disaster prevention."
The project will have four components:
- Restoration of livelihoods through microenterprise training, including replacement of productive assets, upgrading of skills, and reconstruction of community-based infrastructure;
- Rehabilitation of seriously damaged state and major district roads and bridges, including drainage structures, and rehabilitation and reconstruction of ports and harbors;
- Restoration and upgrading of damaged water supply systems and sanitary complex and solid waste management facilities, and other rural and municipal infrastructure such as village roads, drainage canals, public buildings, and electricity line network and distribution transformers; and
- Capacity building and implementation assistance for consulting services, including for incorporation of disaster resistance into the rapid planning, design, and implementation of the works, support for specialized studies such as aquifier and hydrology, and project oversight, as well as incremental administration cost.
The Government of India and the state governments of Tamil Nadu and Kerala will contribute $18.6 million toward the project's total cost of $218.6 million. In accordance with ADB's Disaster and Emergency Assistance Policy, ADB's loan will have a 32-year term, including a grace period of eight years. Interest will be determined in accordance with ADB's LIBOR-based lending facility.
The project's executing agency in Tamil Nadu is the Revenue Administration, Disaster Management and Mitigation Department, and in Kerala, the Department of Disaster Management. The project is due for completion in April 2008.
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