India and ADB sign Loan Agreement of $60 million for Assam
Government of India and Asian Development Bank (ADB) have signed a loan agreement of $60 million for financing project for renovation, protection and community-based flood risk management activities along the Brahmaputra river in Assam. The objective of the program is to enhance the reliability and effectiveness of flood and river bank erosion risk management systems in Assam. Duration of the loan is 20 years with the grace period of five years. Interest rates are determined by ADB based on London Interbank Offered Rate (LIBOR) and commitment charge of 0.15% per year.
In 2010, ADB had approved the Tranch 2 Loan of $120 million for Assam Integrated Flood and River Bank Erosion Risk Management Investment Program. The Project 2 of the program will help to fund the structural and non-structural measures in three sub Project areas – Palasbari Gumi, Kaziranga and Dibrugarh along the Brahmaputra river which covers 20 km of riverbank protection work and flood embankments upto 13 km.
The executing and implementing agencies for this project are Flood and River Erosion Management Agency of Assam and Assam State Disaster Management Authority. The project will create and strengthen disaster management system and knowledge base for flood forecasting.
The river originates from Mansarovar Lake in Himalayas in Tibet with the name Yarlung Tsangpo. It is one of the major rivers of Asia flowing in China, India and Bangladesh. The river has different names along its path. It is known as Yarlung Tsangpo in China, and Brahamputra in India. When it enters Bangladesh, it is called Jamuna river before merging with Ganga and finally Meghna when it drains into Bay of Bengal.
Asian Development Bank
It is a Multilateral development bank established on 19th December 1966 with objective to promote social and economic development in Asia. It is headquartered at Manila, Philippines. The President of the bank is Takehiko Nakao. Presently 67 countries are the member of ADB and Japan and United States are the largest shareholders of the bank. Other shareholders include China, India and Australia.
Categories: International Current Affairs