Friday, May 13 2005 09:24 Hrs (IST) - World Time -

New Delhi: The World Bank (WB) and Asian Development Bank (ADB) yesterday (May 12, 2005) signed agreements with the Government to extend an international development association credit totalling $ 670 million for reconstruction and recovery work in tsunami hit areas of the country.

Out of ADB's assistance of $ 205 million, $ 100 million would come as grant another $ 100 million as loan and the remaining $ 5 million from the Japan Fund for Poverty Reduction, a release said.

The funding is provided on the basis of a 'damage and needs assessment report' prepared jointly by the multilateral aid agencies and the UN.

The WB aid totalling $ 528.5 million (including $ 61million reallocation within existing IDA and a special $ 2.5 million grant) would support rural water supply rehabilitation in Kerala, livelihood restoration in Andhra Pradesh and housing and transport infrastructure restoration in Tamil Nadu and Pondicherry.

The financing would also support studies for long-term coastal management. A sum of $ 40 million has been allocated to Andhra Pradesh, $ 10 million to Kerala, $ 42 million to Pondicherry and $ 434 million to Tamil Nadu. WB's special grant of $ 2.5 million would be used for studies and training in Tamil Nadu and Pondicherry.

ADB's fund would focus on rehabilitation of transport and village infrastructure and livelihood restoration in Tamil Nadu and Kerala. $ 143.75 million would go to Tamil Nadu and $ 56.25 million to Kerala along with $ 2.5 million for both the States from the $ 5 million committed by the Japan Fund. ADB would also establish extended missions to help the States with implementation.