India and the Asian Development Bank (ADB) on December 13, 2018 signed a USD 60 million loan agreement to reduce floods and the riverbank erosion in Assam.
This Tranche 2 loan is part of the USD 120 million multi-tranche financing facility (MFF) of the ADB for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program. The program was approved by the ADB Board in October 2010.
The agreement was signed by Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.
The loan agreement aims 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.
Highlights of Loan agreement
- The loan will have a 20-year term, including a grace period of 5 years.
- It includes 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 percent per year.
Projects funded under this Tranche 2 facility
- It will fund a combination of structural and nonstructural measures in the three subproject areas of Palasbari-Gumi, Kaziranga, and Dibrugarh along the Brahmaputra River.
- It includes 20 km of riverbank protection works and upgrading of 13 km of flood embankments.
- The non-structural measures will cover community involvement and community-based flood risk management activities through establishing and training disaster management committees.
- It will continue to support the institutional capacity development of the autonomous bodies, namely, 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.
Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program
The Program is aimed at increasing the reliability and effectiveness of flood and riverbank erosion risk management systems in flood-prone areas of Assam.
It aims to strengthen the disaster preparedness of the communities, and developing institutional capacity and knowledge base for flood forecasting.