DHAKA, November 11, 2010: The Government of Bangladesh today signed a credit agreement worth US$ 75 million for additional financing of the on-going Emergency 2007 Cyclone Recovery and Restoration Project (ECRRP) with the International Development Association (IDA), the World Bank’s concessionary arm. The additional financing will help Bangladesh sustain its efforts to build resilience towards natural disasters and recover from the damage to livelihoods and infrastructure caused by Cyclone Sidr and Cyclone Aila.
After Cyclone Sidr, the World Bank extended support to the Government of Bangladesh through the Emergency 2007 Cyclone Recovery and Restoration project to help people rebuild their lives by facilitating restoration of agriculture and infrastructure in cyclone-affected areas. Additional damage and losses from Cyclone Aila necessitated further financing for the existing project to address the needs of the cyclone-affected population.
“The recurring natural disasters with increased severity and unpredictability remind us that Bangladesh is among the countries most affected by climate change” said Ms. Ellen Goldstein, Country Director, World Bank Bangladesh. "The World Bank is providing additional financing to further facilitate the recovery from the damage and loss caused by Cyclones Sidr and Aila, and to help strengthen disaster management preparedness and planning.”
The additional financing will be used to continue the restoration of public infrastructure damaged by the cyclones and the development of more resilient agricultural practices in the salinity and cyclone prone southern coastal areas. The improved protective infrastructure, as embankments and multi-purpose shelters, would reduce the risk to the cyclone-affected population if natural disaster hits again.
“The project is supporting the preparation and implementation of the first phase of a fifteen-year government program for disaster risk reduction, which is a vital initiative to reduce Bangladesh’s vulnerability to natural disasters and climate change impacts in the long run.” said Mr. M Musharraf Hossain Bhuiyan, Secretary, Economic Relations Division, Government of Bangladesh. “The project is complementing the relief and recovery measures by Government and other development partners.”
The additional financing would be used to rehabilitate additional 80 km of coastal embankments, 100 multipurpose shelters and construct 60 new shelters. To increase food production during the Boro season, the project is focusing on introducing saline resistance agriculture crops in the coastal belt. This will assure higher income for farmers and increase the resilience of the communities in cyclone-prone areas.
With this additional financing, the World Bank is providing a total support of US$ 187 million for the Emergency 2007 Cyclone Recovery and Restoration Project. The Ministries of Local Government, Water Resources, Food & Disaster Management, Agriculture and Fisheries & Livestock and Planning are jointly implementing the project.
Mr. M. Musharraf Hossain Bhuiyan, Secretary, Economic Relations Division and Ms. Ellen Goldstein, World Bank Country Director, signed on behalf of the Government of Bangladesh and the World Bank respectively at the Economic Relations Division premises.
The credit from the International Development Association (IDA), the World Bank’s concessional lending arm, has 40 years to maturity, including a 10-year grace period; and carries a service charge of 0.75 percent.