Question: World Bank has signed a loan agreement with the Indian government to support Ganga rejuvenation. What is the amount of loan sanctioned?
(a)$300 million
(b)$500 million
(c)$400 million
(d)$100 million
Answer: (c)
Related facts:
- On July 7, 2020 World Bank and the Government of India signed a loan agreement to enhance support for the Namami Gange programme that seeks to rejuvenate the Ganga river.
- The amount of loan sanctioned is $400 million. This comprises a loan of $381 million and a proposed Guarantee of up to $19 million.
- The Second National Ganga River Basin Project will help stem pollution in the iconic river and strengthen the management of the river basin.
- The government has launced Namami Gange program which seeks to ensure that the river returns to a pollution-free, ecologically healthy state.
- The World Bank has been supporting the government’s efforts since 2011 through the ongoing National Ganga River Basin Project.
- Ongoing National Ganga River Basin Project:
- World Bank has helped set up the National Mission for Clean Ganga, helping build sewage collection and treatment infrastructure in 20 towns along the mainstem of the Ganga
- 1,275 MLD sewage treatment capacity created
- 3,632 km of sewage network was also built.
- Important aspects of the project:
- The Project will build on the innovative Hybrid Annuity Model (HAM) of public private partnership introduced under the ongoing NGRBP.
- The $400 million operation includes a proposed Guarantee of up to $19 million to backstop the government’s payment obligations for three Hybrid-Annuity-Model Public Private Partnership (HAM-PPP) investments on the Ganga’s tributaries.
- The $381 million variable spread loan has a maturity of 18.5 years including a grace period of 5 years. The $19 million Guarantee Expiry Date will be 18 years from the Guarantee Effectiveness Date.
- Importance of Ganga basin:
- The Ganga Basin provides over one-third of India’s surface water, includes the country’s largest irrigated area, and is key to India’s water and food security.
- Over 40 percent of India’s GDP is generated in the densely populated Basin.
- Over 80 per cent of the pollution load in the Ganga comes from untreated domestic wastewater from towns and cities along the river and its tributaries.
Author: Himanshu Shukla
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