The World Bank has said that it is looking to extend support of up to $500 million to the Government of Kerala for its flood recovery efforts and to build greater resilience to future shocks.
The loan will be subjected to a formal request from the government of India.
The Banks said on Tuesday that it could reallocate up to $55 million from within its current portfolio of projects in India to support the state’s reconstruction investments.
“Disasters, like the one we witnessed in Kerala, can roll back decades of development and are a fundamental threat to economic development and the fight against poverty,” said Junaid Ahmad, World Bank Country Director in India.
The extreme rainfall and floods the Southern Indian state witnessed in August had left 5.4 million people, one-sixth of the state’s population.
A joint Rapid Damage and Needs Assessment by the Government of Kerala (GoK), the World Bank, and the Asian Development Bank (ADB), estimated the damages at $3.56 billion for the priority sectors alone.
Under the proposed recovery and resilience framework, the World Bank will help the Government of Kerala finance and build resilient institutions, systems, and infrastructure to help achieve the state government’s vision to build back better.