Agreement will be signed on Friday for the second tranche of financial aid being extended by Germany to the Rebuild Resilient Kerala Initiative (RKI) through the German Development Bank KfW.
Official sources said that like the first tranche of the €170 million financial support extended by Germany in two phases, the aid would reach the State through the KfW on the basis of an agreement to be signed between India and Germany in New Delhi.
The German aid is to be used for drinking water supply, cleanliness, climate-resilient urban development and disaster financing and insurance. Of the €170 million financial assistance provided earlier, €90 million (₹720 crore) was a reduced-interest loan to promote climate-resilient reconstruction of the transport infrastructure, including bridges and roads.
‘Rebuild Kerala’ is the government initiative for crowdfunding of projects envisaged for rebuilding Kerala ravaged by floods in 2018 and 2019.
World Bank aid
The World Bank that had extended ₹1,779.58 crore to the RKI has also agreed to provide the second tranche of financial aid taking into account the speedy implementation of the projects and on the basis of the review of the on-going works.
“The agreement with the WB will be signed in April 2021. The funds from the WB and the KfW will come in handy for the RKI projects and for the activities proposed by the Department of Health Services to check the spread of COVID-19 in the State,” Chief Executive Officer, Rebuild Kerala, R. K. Singh has said.
Talks were also on with the Asian Infrastructure Investment Bank and other international lending agencies to secure more aid for the RKI, the CEO said.
Till November 25, the RKI has tendered works to the tune of ₹3,755.79 crore and has given administrative sanction for works totalling ₹2,831.41 crore. The departments had been given ₹509.90 crore. In the 2019-2027 period, projects totalling to ₹36,500 crore will be taken up under the RKI.
