Patna: The World Bank has granted an interest-free loan of Rs. 1,000 crore to Bihar to assist the state government rehabilitate victims and reconstruct the areas devastated by the Kosi floods two years ago.
Announcing the decision at a press conference here on January 12, World Bank Group President Robert B Zoellick said the money was being given to Bihar to provide homes to about 100,000 families that were rendered roofless during the Kosi floods in 2008. The fund would also be utilized for restoration and expansion of livelihood opportunities and reconstruction of 290 km of roads and 90 bridges damaged in five districts of the state.
The government would also utilize the money to strengthen its flood management capacity, inclu-ding flood forecast, and improving its emergency-response capacity.
Zoellick said the credit was from the International Development Association (IDA), the World Bank’s fund for the poorest and the loan were not only interest-free, but with a 35-year maturity (repayment period) and 10-year grace period.