The Asian Development Bank (ADB) and the Government of India signed a $65.5 million loan agreement in the national capital to continue interventions to check coastal erosion on the Western Coast in Karnataka.
The loan is the Second Tranche of a $250 million financing facility under the Sustainable Coastal Protection and Management Investment Program. The financing will be used to address the immediate coastal protection needs and for strengthening institutional capacity of Karnataka’s Public Works, Ports and Inland Water Transport Department.
Karnataka’s coast supports the state’s major economic sectors, which include fisheries, agriculture, tourism, ports and other major transport and communication sectors. Coastal erosion in the state, where the project is focused, poses a high risk to human wellbeing, economic development, and ecological integrity through loss of land, infrastructure, and business opportunities. Under increasing threat from climate change impacts, coastal protection and management has evolved as a major challenge to development. Effective and sustainable management of the shoreline is thus vital to sustainable economic and social development of the coastal regions in the state.
The Second Tranche Loan from ADB’s ordinary capital resources has a 20-year term. The State of Karnataka, acting through its Department of Public Works is responsible for implementation of overall program, which is due for completion by September 2020.