World Bank, ADB Sign Agreements with India to Support Emergency Reconstruction of Tsunami Hit Areas

Financing of US$733.5 million (Rs.3,191 crores) finalized

NEW DELHI, INDIA (12 May 2005) - The World Bank and ADB today signed agreements with the Government of India extending International Development Association (IDA) credit of US$465 million from the World Bank and total assistance of US$205 million from the ADB (US$100 million as loan, US$100 million as grant and US$5 million from the Japan Fund for Poverty Reduction) towards post tsunami reconstruction and recovery efforts in India.

Together with US$61 million of reallocation within existing IDA credits from the World Bank, and a special US$2.5 million World Bank grant, this brings the total financing for tsunami reconstruction in the country from the World Bank and ADB to US$733.5 million. The UN is also expected to provide a further US$38.5 million.