ADB, India Sign $65.5 Million Loan to Support Coastal Protection in Karnataka
NEW DELHI, INDIA (27 October 2017) — The Asian Development Bank (ADB) and the Government of India have signed a $65.5 million loan agreement at Bengaluru to continue interventions to check coastal erosion on the western coast in Karnataka.
The loan is the second tranche of a $250 million financing facility under the Sustainable Coastal Protection and Management Investment Program. The financing will be used to address immediate coastal protection needs and strengthen Karnataka’s Public Works, Ports, and Inland Water Transport Department.
Sameer Kumar Khare, Joint Secretary (Multilateral Institutions), Department of Economic Affairs at India’s Ministry of Finance, signed the loan agreement for the Government of India, and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission, signed for ADB. A separate project agreement was signed by M. Lakshminarayana, Additional Chief Secretary on behalf of the Government of Karnataka.
“Coastal area development is one of the priority sectors for Government of India. The program has introduced innovative techniques for managing coastal erosion that will ultimately benefit local communities, and would also help address concerns pertaining to the climate change,” said Mr. Khare after signing the loan agreement last night.
“The investment program has already demonstrated the benefit of adoption of softer options such as artificial reefs, beach nourishments, and dune management for coastal protection,” said Mr. Yokoyama. “The project will consist of eight coastal protection subprojects to address the issues of medium to severe coastal erosion resulting in protection of about 54 kilometers of coastline in Karnataka.”
Karnataka’s coast supports the state’s major economic sectors, which include fisheries, agriculture, tourism, ports, and other major transport and communication sectors. Coastal erosion in the state, where the project is focused, poses a high risk to human wellbeing, economic development, and ecological integrity through loss of land, infrastructure, and business opportunities. Under increasing threat from climate change impacts, coastal protection and management has evolved as a major challenge to development. Effective and sustainable management of the shoreline is thus vital to sustainable economic and social development of the coastal regions in the state.
The second tranche loan from ADB’s ordinary capital resources has a 20-year term. The State of Karnataka, acting through its Department of Public Works, is responsible for implementation of overall program, which is due for completion by September 2020.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.