The New Nation - Internet Edition

BUSINESS REPORT

The World Bank has assured the Bangladesh government of providing US$206 million additional funds for rehabilitation projects in the cyclone-hit southwestern coastal areas of the country, a government official said.

The WB last month completed negotiation for lending the fund tothe government by June this year to reduce the pressures on fiscal management that has been badly affected by cyclone Sidr.

'The Bank last month sent a mission from its headquarters to explore the possibility of extending their support to Bangladesh. The team had separate talks with the concerned government agencies and has given green signal for giving the 206 million U.S. dollars additional funds," an official from the finance ministry said.

He said, "The proposed fund by the World Bank will be utilised for restoring the damaged agriculture, reconstruction and improvement of cyclone shelters, rehabilitation of coastal embankment and to address long-term disaster risk.'

Following a donor-government damage, loss and need assessment carried out jointly on the effects of cyclone Sidr, the global lender has assured Bangladesh of giving 206 million U.S. dollars fund for rehabilitation programs in the cyclone-hit areas.

The joint assessment said Bangladesh needs US$300 million for immediate recovery, US$1.075 billion for medium-to-long term recovery and another US$4 billion for long-term disaster risk reduction.

The government in December last year urged the donors to provide US$400 million as budgetary support, US$457.76 million for immediate rehabilitation of the cyclone-affected areas and US$ 1.35 billion for sustainable protection against any future natural disasters.

The cyclone Sidr battered Bangladesh's southern and southwestern coastal districts on Nov. 15, last year, claiming thousands of lives and causing more than 2 billion U.S. dollars economic loss.