World Bank approves $245 mn loan for Himachal Pradesh

World Bank on Wednesday approved $245 million to rebuild more resilient infrastructure in Himachal Pradesh and enable community-owned firms to invest in more reliable jobs.Himachal Pradesh has been affected by extreme weather events, particularly in the past three years, resulting in estimated losses of $1 billion, the World Bank said in a statement.

Heavy rainfall during the 2023 and 2025 monsoon seasons led to loss of lives, widespread damage to housing and infrastructure, and limited access to schools, markets and jobs, it said, adding that disruptions to water supply and sanitation services have also affected agriculture and horticulture production.The Resilient Action for Development and Disaster Recovery Himachal Pradesh Project ($245 million) will support the State’s post-disaster recovery efforts and help reduce future disaster impacts through better planning and design of resilient infrastructure, it said.

More than one million women will benefit from improved access to essential services and better livelihood opportunities in farming, local handicrafts and rural tourism sectors, it said. Investments in community-owned businesses will support 12,000 people with new or better jobs and create new market links for artisans, producers and farmers, it said.“By investing in sustainable infrastructure that connects people to opportunities, this project will help Himachal Pradesh build back better. It will also mobilise $100 million in private capital towards disaster-risk financing and insurance solutions,” World Bank India, acting country director Paul Procee said.

In partnership with Agence Francaise de Developpement (French Development Agency), the project will help strengthen early warning systems, it said. The Coalition for Disaster Resilient Infrastructure (CDRI) will help the project access global knowledge for rebuilding sustainable infrastructure — including the rehabilitation of over 250 bridges, roads and footbridges — which will benefit more than one million people, it said.