ADB to give $65.5 mn loan to Karnataka

ADB to give $65.5 mn loan to Karnataka
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New Delhi: The Asian Development Bank (ADB) and the Indian government have signed a $65.5 million loan agreement to continue interventions to check coastal erosion on the western coast in Karnataka, it was announced on Friday.

The loan is the second tranche of a $250 million financing facility under the Sustainable Coastal Protection and Management Investment Programme.

The second tranche loan from ADB’s ordinary capital resources has a 20-year term. Karnataka, through its Department of Public Works, is responsible for implementation of overall programme, which is due for completion by September 2020.

The financing will be used to address the immediate coastal protection needs and for strengthening institutional capacity of Karnataka’s Public Works, Ports and Inland Water Transport Department.

Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance, signed the loan agreement on behalf of the Indian government, and Kenichi Yokoyama, Country Director of ADB’s India Resident Mission, signed for ADB.

A separate project agreement was signed by M. Lakshminarayana, the Additional Chief Secretary, on behalf of Karnataka.

Yokoyama said the investment programme had already demonstrated the benefit of adoption of softer options such as artificial reefs, beach nourishments, and dune management for coastal protection.

He said the project will consist of eight coastal protection sub-projects to address the issues of medium to severe coastal erosion resulting in protection of about 54 km of coastline in Karnataka.

Karnataka’s coast supports major economic sectors including fisheries, agriculture, tourism, ports and other major transport and communication sectors.

IANS