World Bank Offers US$250 Million To Aid Bangladesh Cyclone Recovery And Mitigation

WASHINGTON, November 20, 2007 ─ The World Bank has offered up to US$250 million in the aftermath of Cyclone Sidr to help millions of Bangladeshis recover and to strengthen the country’s disaster mitigation systems.

“This is a horrible shock to Bangladesh and our sympathies are with the thousands of families who have lost loved ones; with the millions who have lost livelihoods and shelter” said Xian Zhu, World Bank Country Director in Bangladesh. He said the World Bank was willing to make up to US$250 million available to the Government of Bangladesh, depending on its financing needs and what other donors brought to the table.

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“Of course Bangladesh is still in the rescue and relief phase but as it moves into recovery over the next few days, our commitment is a signal to government of the scale of what we can offer if needed,” said Zhu.

Bank assistance could be used to support short-term needs like food imports, the rapid procurement of medical supplies, cash grants to the poorest victims and help to get people back on their feet and recovering their sources of income and livelihood. Bank support could also help Bangladesh manage macroeconomic shocks over this period of challenge.

In the longer term, Bank support would be available for infrastructure rehabilitation, especially damage to embankments and other flood mitigation and shelter infrastructure. Zhu commended Bangladesh for the progress that this disaster-prone country has made in dealing with the short and longer term impact of periodic floods and cyclones.

“In 1970, over five hundred thousand people died following the impact of a cyclone,” said Zhu. “As responses to disasters have improved and as some shelter infrastructure has been put in place, death tolls have become smaller but Bangladesh remains extremely vulnerable, the more so as climate change adds to its burden.”

The Bank’s assistance will also support coastal zone management to help Bangladesh face the challenge of climate change by both mitigating the inevitable impact of future storms and designing the necessary adaptations to protect people and their livestock.

The cyclone support will complement existing commitments from the World Bank in response to massive floods in August and September. The Bank provided US$75 million in quick-disbursing financing as an initial flood response and will support restoration and rehabilitation through reallocation of existing funds to support reconstruction and improvements in the areas of agriculture, health, communications, water and sanitation.

Source: World Bank