Kerala to seek Rs 3,500 crore World Bank loan to rebuild state after floods

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Published: March 7, 2019 3:55:36 AM

The state government will undertake rebuilding work to the tune of Rs 5,000 crore, for which Rs 3,500-crore assistance is to come from World Bank.

The state Cabinet that met here on Tuesday decided to avail the loan offered by World Bank.

The Kerala government has decided to go ahead with utilising the Rs 3,500-crore loan from World Bank for the first phase of its post-flood rebuilding plans.

A joint study by World Bank and UN agencies had put together an overall rebuilding plan to the tune of Rs 32,000 crore for the state recovering from the devastating floods of August, 2018.

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The state Cabinet that met here on Tuesday decided to avail the loan offered by World Bank. “We’d be drawing the loan amount by June or July as per the schedule worked out. Chief secretary Tom Jose has been told to co-ordinate,” chief minister Pinarayi Vijayan told reporters after the Cabinet meeting.

The World Bank loan comes to support the phase one of the post-flood rebuilding plan, in a 70:30 ratio. This means that the state government will undertake rebuilding work to the tune of Rs 5,000 crore, for which Rs 3,500 crore assistance is to come from World Bank.

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The Rebuild Kerala plan, cleared by Cabinet, focuses on 11 areas of intervention, including transportation, land utilisation, fisheries livelihoods, sanitation, roads and bridges and water resources.

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