Thursday, July 2, 2020

World Bank Group approves USD 400 million for SNGRBP


Last week the Board of Executive Directors of the World Bank Group has approved a loan of USD 400 million for the rejuvenation of the Ganga River under the NAMAMI Gange Program of the Government of India. The loan approved by the World Bank Group is for strengthening the river basin.

  • Back in 2015, the World Bank Group has approved USD 1 billion for the First National River Ganga Basin Project. 
  • The loan approved for USD 400 million is for the Second National River Ganga Basin Project (SNGRBP).

Financing for the Project

  • Lending arm of the World Bank Group- International Bank for Reconstruction and Development (IBRD) will be sanctioning the loan amount. 
  • USD 381 million is the loan amount that will be sanctioned by IBRD, while USD 19 million is for the IBRD Payment Guarantee for the loan amount. 
  • The Guarantee expiry date is 18 years for the date of effectiveness. 
  • Including a grace period of 5 years, the loan amount has a maturity of 18.5 years.

Objectives of SNGRBP

  • Expand the sewage treatment infrastructure to more cities in the Ganga Basin
  • In the long term, the assets related to sewage treatment is operated and maintained effectively
  • Help develop State-of-the-art tools for National Mission for Clean Ganga (NMCG) for effective management of the riverfront
  • To help control pollution discharge, sewage networks and treatment plants will be set up in select cities across the Ganga Basin
  • New infrastructure projects will be developed under the Hybrid Annuity Model (HAM) to ensure long term effectiveness and are well maintained

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