$109m IDA credit for cyclone-hit areas
The World Bank on Thursday approved 109 million US dollar credit to Bangladesh in support of government's efforts to repair infrastructure and restore the livelihoods for thousands of families affected by last year's cyclone Sidr.
The credit from the International Development Association (IDA), the World Bank's concessionary arm, has 40 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent, said a press release yesterday.
The credit, through the Emergency 2007 Cyclone Recovery and Restoration Project, will finance reconstruction and improvement of some 300 multi-purpose shelters and rehabilitation of 100 km of coastal embankments using cyclone-resistant building techniques.
It will also support activities in the agriculture sector that will help farmers prepare for the next growing season and strengthen their ability to cope with future disasters.
The project will also strengthen the government's medium- and long-term disaster risk mitigation and reduction capacity, including support to the Disaster Management Bureau, the release said.
It will also finance preparation of future projects for riverbank improvement, coastal embankment strengthening programmes, disaster shelters, and up-gradation of rural road network.
This project builds synergies with the livelihood operation under the Bank's Social Investment Program Project as well as other ongoing agriculture support programs funded by the Bank, United Nations and other bi-lateral donors.
With this project, the Bank's support to Bangladesh's cyclone response totals US$259 million.