TC Winston

ADB gives US$50m loan to Fiji for cyclone relief

The Asian Development Bank (ADB) will provide a US$50 million (FJD$103million) emergency assistance loan to Fiji for short-term financing of disaster recovery reconstruction programs. The programme will include school rehabilitation and housing assistance and follows February’s Cyclone Winston. The Attorney-General Aiyaz Sayed-Khaiyum said the loan will allow the government to be more responsive and rebuild […]

Nacanieli Tuilevuka

July 1, 2016 11:36 am

The Asian Development Bank (ADB) will provide a US$50 million (FJD$103million) emergency assistance loan to Fiji for short-term financing of disaster recovery reconstruction programs.

AG
Attorney-General and Minister for Finance Hon. Aiyaz Sayed-Khaiyum. (Newswire)

The programme will include school rehabilitation and housing assistance and follows February’s Cyclone Winston.

The Attorney-General Aiyaz Sayed-Khaiyum said the loan will allow the government to be more responsive and rebuild damaged schools and homes better and stronger.

He said the new structures will be designed and built to withstand high winds and driving rain that characterize severe tropical storms.

SAYED-KHAIYUM: “The new structures will be designed and built to resist the high winds and driving rain that characterize severe tropical storms like Winston. This is particularly important to protect poor and vulnerable households.”

The regional Director of ADB’s Pacific Sub-regional Office in Fiji, Mr Robert Jauncey said the loan will help to mitigate the negative social and economic impacts of the cyclone on vulnerable people and households.

JAUNCEY: “The cyclone damaged 495 schools, 88 health facilities, disrupted basic public services and destroyed crops and livelihoods.”

The loan will have a 20-year term, including a grace period of 5 years and a low-interest rate of about 1.3% per year.

The World Bank is also providing a loan of $50 million to support the programmes.

Total damage and losses from TC Winston are estimated at US$1.42 billion, equivalent to 31% of gross domestic product. This is based on the post-disaster needs assessment jointly prepared by the government and development partners.

The full amount of the emergency assistance loan will be withdrawn in a single tranche once the loan takes effect.

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