ADB, India Sign $60 Million Loan to Reduce Floods and Riverbank Erosion in Assam
NEW DELHI, INDIA (13 December 2018) — The Asian Development Bank (ADB) and the Government of India today signed a $60 million loan to continue financing riverbank protection works, renovation of flood embankments, and community-based flood risk management activities in critically flood-prone areas along the Brahmaputra River in Assam.
The tranche 2 loan is part of the $120 million multitranche financing facility (MFF) for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program approved by ADB in October 2010.
The signatories to the loan agreement were Mr. Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed on behalf of the Government of India; and ADB Country Director for India Mr. Kenichi Yokoyama.
“The program is aimed at increasing the reliability and effectiveness of flood and riverbank erosion risk management systems in flood-prone areas in Assam, strengthening communities’ disaster preparedness and developing institutional capacity and knowledge base on flood forecasting and erosion prediction,” said Mr. Khare after signing the loan.
“The tranche 2 under the program will fund a combination of structural and nonstructural measures in the three subproject areas of Palasbari-Gumi, Kaziranga, and Dibrugarh along the Brahmaputra river which include 20 kilometers (km) of riverbank protection works and upgrading of 13 km of flood embankments,” said Mr. Yokoyama.
The nonstructural measures will cover community involvement and community-based flood risk management activities through establishing and training disaster management committees for strengthening local disaster preparedness and emergency response. The project will continue to support the institutional capacity development of the autonomous body anchored to the Assam Water Resources Department, named Flood and River Erosion Management Agency of Assam (FREMAA), and Assam State Disaster Management Authority (ASDMA), as the executing and implementing agencies for this project.
The loan will have a 20-year term, including a grace period of 5 years, an annual interest rate determined in accordance with ADB’s lending facility based on the London interbank offered rate (LIBOR), and a commitment charge of 0.15% per year.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2 billion, including $11.9 billion in cofinancing.