On Thursday, India and Asian Development Bank (ADB) has signed a $60 million loan agreement to reduce floods and the riverbank erosion in the state reports Finance Ministry.
It continued that “The Tranche 2 loan is part of the $120 million multi-tranche financing facility for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program approved by the ADB Board in October 2010.”
The flood loan aims to continue financing renovation of flood embankments, riverbank protection work, and community-based flood risk management activities in critically flood-affected areas along the River Brahmaputra in Assam.
While Additional Secretary of Finance Minister, Sameer Kumar Khare has signed the deal on behalf of the Central government, and Kenichi Yokoyama, Director of ADB’s India Resident Mission Country, has signed it on behalf of the multilateral lending agency.
Mr. Khare said, “The programme is aimed at increasing the reliability and effectiveness of flood and riverbank erosion risk management systems in flood-prone areas of Assam, strengthening the disaster preparedness of the communities and developing institutional capacity and knowledge base for flood forecasting.”
“The Project 2 under the programme will fund a combination of structural and non-structural measures in the three subproject areas of Palasbari-Gumi, Kaziranga and Dibrugarh along the Brahmaputra River which include 20 km of riverbank protection works and upgrading of 13 km of flood embankments,” added Mr. Yokoyama.
The flood loan to Assam will have a 20-year term, which includes a grace period of 5-years, annual interest rate determined in accordance with ADM’s lending option based on the London Interbank Offered Rate, and a commitment charge of 0.15perecnt per year.