New Delhi: The Centre and the Asian Development Bank (ADB) on Thursday signed a $60 million Loan Agreement in New Delhi to reduce floods and riverbank erosion in Assam.
The objective of the agreement is 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 multi-tranche financing facility (MFF) for the Assam Integrated Flood and Riverbank Erosion Risk Management Investment Program approved by the ADB Board in October 2010.
The agreement was signed between Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB) and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission.
The non-structural 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.