World Bank approves loan for Rebuild Kerala Initiative

THIRUVANANTHAPURAM: The months-long deliberations between World Bank's senior officials and state's top bureaucrats to mobilize fund for Rebuild Kerala Initiative (RKI) concluded on Friday with World Bank (WB) signing a loan agreement with the Union and state governments. WB will provide USD 250 million (approximately Rs 1,750 crore) for the Resilient Kerala Programme (aka RKI) to enhance the state's resilience against the impacts of natural disasters and climate change.
The idea of availing assistance from WB was mooted by the state following the devastating floods that hit the state in August 2018 and discussions gained momentum with chief minister Pinarayi Vijayan giving a go ahead, while personally monitoring the progress of the process. The gravity of the flood - that affected 54 lakh people and displaced 14 lakh people - convinced WB to seriously consider Kerala's proposal.
The loan agreement was signed in New Delhi by finance ministry's additional secretary (economic affairs) Sameer Kumar Khare (on behalf of the Government of India); additional chief secretary (finance) Manoj Joshi (on behalf of the Government of Kerala) and, World Bank India's country director Junaid Ahmad. The project mooted by WB is its first 'state partnership project' in the country.
"The new programme is part of the Government of India's support to Kerala's 'Rebuild Kerala Development Programme' aimed at building a green and resilient Kerala. This partnership will identify key areas of policy and institutional strengthening to maximize development impact," said Khare.
Increasing the state's institutional and financial capacity to protect the assets and livelihoods of poor and vulnerable groups through an inclusive and participatory approach will be the focus of RKI. Using the WB loan component, RKI will plan projects to improve river basin planning, water supply and sanitation services; promote sustainable agriculture practices; improve core road network; unify and update land records in high-risk areas and implement risk-based urban planning and strengthened expenditure planning by urban local bodies.
"Through this loan, the bank is supporting Kerala through a mechanism of state partnership in priority areas such as transport, livelihood, and urban planning. The aim of the project is to protect the lives and livelihoods of its citizens in a world of climatic uncertainty," said Ahmad.