The World Bank (WB) Board of Executive Directors has approved a USD 100 million loan from the International Bank for Reconstruction and Development (IBRD) to the Indian state of Odisha.
Objective: To boost Odisha’s early forecasting systems for better disaster response and to expand social protection coverage for poor and vulnerable households via digital platforms.
i.The IBRD loan of USD 100 million has a maturity period of 12.5 years and a grace period of 3 years.
ii.The above mentioned will be issued under Odisha State Capacity and Resilient Growth Program, which is a Program-for-Results (PforR) financing mechanism.
- The PforR financing mechanism leverages a country’s own institutions and processes while directly connecting fund disbursement to the attainment of specific programme results.
Why does Odisha need the assistance?
i.Odisha, a coastal state with a 480-kilometer coastline, is subject to natural disasters, with cyclones affecting the state every 15 months on average, and it is also vulnerable to tsunamis.
ii.Recurring disasters have a considerable impact on economic activity, including agricultural production, infrastructure, and access to health, education, and employment.
Odisha State Capability and Resilient Growth Program
i.The Odisha State Capability and Resilient Growth Program would deploy a multi-hazard digital warning system to assist reduce losses caused by natural catastrophes.
- It aims to improve the state’s data collection efforts for more effective resilience planning.
ii.The program will also expand social protection coverage with a cash transfer scheme.
- Coastal and underprivileged communities would get assistance via online delivery platforms (Mo-Sewa Kendras).
WB Approves USD 363 Million to Karnataka to Improve Water Supply to 2 million rural households
The World Bank (WB) Board of Executive Directors has approved a USD 363 million loan from the IBRD to the southern Indian state of Karnataka.
Objective: To install piped water connections in the 2 million rural households in the state and supply them with clean drinking water.
i.The IBRD loan of USD 363 million has a maturity of 13.5 years, including a 2-year grace period.
ii.This IBRD loan will be used to fund the Karnataka Sustainable Rural Water Supply Program (KSRWSP), a PforR financing instrument that directly links cash disbursement to the attainment of specific program results.
Why does Karnataka need the assistance?
Karnataka, which is about 77% arid or semi-arid, is prone to climate change-related variable rainfall that can cause droughts and floods, deplete groundwater sources, and worsen water quality.
Karnataka Sustainable Rural Water Supply Program (KSRWSP)
i.The KSRWSP will help the Karnataka government achieve its goal of supplying functional tap water connections to every rural household in the state.
ii.This will entail the establishment of a drinking water distribution network as well as the installation of water meters in rural households, which will serve around 10 million people across the 31 districts in Odisha.
iii.The Program will also help boost water storage capacity and groundwater recharge by reviving 500 rural water reservoirs in 7 water-stressed districts in Karnataka: Bengaluru Rural, Bengaluru Urban, Bidar, Chikkaballapura, Kalaburgi, Kolara, and Tumakuru.
Recent Related News:
World Bank President David Malpass (66) announced that he will step down from his position by the end of the Bank Group’s fiscal year on June 30, 2023 after serving more than 4 years. He was appointed by then United States (US) President Donald Trump in April 2019. His five-year term was due to end in April 2024.
About the World Bank (WB):
The International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) collectively make up the World Bank (WB).
President (WB Group) – David Robert Malpass
Establishment – 1944
Headquarters – Washington D.C, United States (US)
Members – 189 member countries