07/19/2021 | Press release | Distributed by Public on 07/19/2021 09:39
NEW DELHI July 19, 2021 - The Government of India, the Government of Kerala and the World Bank have signed a $125 million program to support Kerala's preparedness against natural disasters, climate change impacts, disease outbreaks, and pandemics.
The Resilient Kerala Program will focus on two key areas. First, it will incorporate disaster risk planning in the master plans of urban and local self-governments to ease financial constraints on the state government when faced with unexpected shocks. Second, it will help make the health, water resources management, agriculture, and road sectors more resilient to calamities.
The Department of Economic Affairs, Ministry of Finance stated that 'The state of Kerala has shown resilience against the impacts of natural disasters and climate change. The Government has been undertaking comprehensive shifts in policies, institutions, and programs to address the challenges facing the state. The Resilient Kerala Program will help institutionalize disaster preparedness across various sectors to ensure a resilient recovery and sustainable development pathway for the state.'
The agreement was signed by Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, Ministry of Finance on behalf of the Government of India; Rajesh Kumar Singh, Additional Chief Secretary on behalf of the Government of Kerala; and Junaid Ahmad, Country Director, India on behalf of the World Bank.
The program is part of a programmatic series of Bank-financed operations in the state. The First Resilient Kerala Development Policy Operation (DPO) approved in June 2019 undertook several initiatives. It helped the state draft a River Basin Conservation and Management Act, which will conserve and regulate water resources and ensure their sustainable management, allocation, and utilization. It also introduced climate-resilient agriculture, risk-informed land use, and disaster management planning. The program laid the foundations for a 5-year State Partnership Framework.
'In today's context of increased economic, climatic, and health shocks, building resilience of economies is a policy imperative,' said Junaid Ahmad, World Bank Country Director in India. 'The Bank is therefore investing in Kerala's capabilities to respond to shocks to the state economy and, importantly, prevent as much as possible the loss of lives, assets, and livelihoods. The objective is not to finance schemes but partner with the Government of Kerala to improve the state's financial health; invest in sectors like health, water resources, social protection and agriculture; and address the drivers of natural disasters, climate change, and pandemic risks.'
The heavy monsoons of 2018 were the worst Kerala had seen in nearly a century, triggering devastating floods and landslides. It impacted more than 5 million people, mainly in the Pamba River Basin.
The program will be statewide. In the Pamba River Basin, Kerala will test a multisectoral approach in Idukki, Kottayam, Pathanamthitta, and Alappuzha districts. This area is a microcosm of the state, with tropical monsoon forests, dense urban settlements, and the rice bowl of Kerala in its lowlands. Its success will have a demonstration impact across the state.
Support to key sectors under the program include:
'The groundwork laid during the first program improved the government's capacity to assess and respond to disasters. The new program aims to enhance the state's capacity to deal with potential shocks by mainstreaming climate and disaster risks into planning and investment processes,' said Elif Ayhan, Senior Disaster Risk Management Specialist and one of World Bank's Task Team Leaders for the program.
The $125 million loan from the International Bank for Reconstruction and Development (IBRD) has a final maturity of 14 years including a grace period of six years.