Announcement of India to Restore Cyclone-Devastated Coast of Andhra Pradesh on October 9, 1990

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. *Telephone: (202) 477-1234 T B NEWS RELEASE NO. 91/17 Contact: Marjorie Messiter IDfNEWS RELEASE NO. 91/9 (202) 458-1353 INDIA TO RESTORE CYCLONE-DEVASTATED COAST OF ANDERA PRADESH WASHINGTON, October 9, 1990 -- Andhra Pradesh, one of India's largest and most populous states, will receive $210 million in a loan and credit from the World Bank and its concessionary lending affiliate, the International Development Association, for a program to repair damage caused by a powerful cyclone in May 1990. The World Bank is providing a loan of $40 million, and IDA, a credit of SDR 126.1 million ($170 million) in support of the program. An additional $55 million will be made available to the government of Andhra Pradesh by reallocating funds from the Second Andhra Pradesh Irrigation Project, approved in May 1986. The storm, which took abut 1,000 lives, caused more than $1 billion in damage to irrigation systems, water supplies, roads and bridges, and electric transmission lines. The emergency reconstruction program will help rebuild irrigation systems covering more than 1 million hectares, 25,000 kilometers of state and rural roads, and 1,000 kilometers of electric transm-.;sion lines. The program includes repairing more than 1,600 village water supply systems and reconstructing roads and drains in 26 cities with a combined population of about 2.5 million people. As part of the program, farmers will receive loans to finance planting of wind-resistant coconut and cashew trees, and fishermen will have access to credit to help them replace boats and nets destroyed by the storm. The government of India is contributing $115 million for the reconstruction program. The World Bank loan is for 20 years, including five years' grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balances. The IDA credit is for 35 years, including 10 years' grace; it carries no interest, but has annual charges of 0.75 percent on the disbursed balance and a variable charge of up to 0.5 percent on the undisbursed balance. Note: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 'basket, of currencies. The U.S. dollar equivalent of the SDR amount of the IDA credit reflects the exchange rates existing at the time of the negotiation of the credit. Bank loans are in U.S. dollar equivalents.