The World Bank’s decision to provide a loan of $250 million to build disaster resilient roads and houses in flashflood-hit Uttarakhand has come as much needed respite for the Centre, which was beginning to feel the heat of the poor equity situation in the infrastructure sector.
Uttarakhand suffered unprecedented devastation due to flash flood and heavy rains in June, 2013 and roads leading to places like Kedarnath, Rambara, Gaurikund and others were badly damaged.
“The Centre, the Uttarakhand Government and the World Bank signed a $250 million credit agreement for the Uttarakhand Disaster Recovery Project to support the State in its post-disaster recovery plans as well as strengthen its capacity for disaster risk management,” read the statement issued by the World Bank.
The loan will help construct about 3,600 km of roads and close to 2,500 permanent houses in Uttarakhand.
The credit agreement for the project was signed by Nilaya Mitash, Joint Secretary, Department of Economic Affairs, Ministry of Finance; Rakesh Sharma, Additional Chief Secretary, from Uttarakhand Government and Onno Ruhl, World Bank Country Director.
Cash strapped Ministry of Roads, Transport and Highways (MoRTH) had sought Rs 450 crore from the Centre in December for reconstruction work in Uttarakhand. But overall the Ministry had prepared a note in July asking the Centre for funds up to Rs 1,200 crore over a two year period for a complete overhaul of the National Highways in the higher reaches of Uttarakhand.
“For this financial year, we had asked for Rs 450 crore from the Government. We had not anticipated the extent of this calamity hence the funds we usually set-aside for floods and other natural disasters, was hugely insufficient,” said an official from MoRTH.
“Paucity of funds and harsh weather conditions have brought reconstruction work to a standstill. This loan from the World Bank is definitely the much needed relief, we were expecting to help us tide over the rough weather pervading the road sector for the last two years,” he said.
The project will focus on the post disaster recovery plans in Uttarakhand as well as improve the resilience of the State’s infrastructure and that of its communities from the impacts of such disasters in the future, said Mitash.
A joint World Bank and Asian Development Bank team conducted a Rapid Damage and Needs Assessment (JRDNA) at the request of the Centre to rebuild the State’s infrastructure and assets lost in the June 2013 disaster.
“Disasters, like the one we witnessed in Uttarakhand, can roll back decades of development and are a fundamental threat to economic development and the fight against poverty. This project will focus on both reconstruction and disaster preparedness,” said Ruhl.
“Disaster preparedness work will include putting in place information and communication systems that can provide early warning to people likely to be impacted,” he said.