Primarily for reconstruction of transport infrastructure

Germany has announced a €93 million financial support to the Rebuild Resilient Kerala Initiative to help restore the livelihood of people affected by the August floods.

The aid will be given through the German Development Bank KfW on the basis of an agreement between India and Germany. Of the assistance, €90 million (₹720 crore) will be reduced-interest loan to promote climate-resilient reconstruction of transport infrastructure, including bridges and roads. The remaining €3 million (₹24 crore) will be as grant for technical support to the Public Works Department.

Report from team

The loan, with a nominal interest rate, has been worked out based on the report of a team from the German Agency for Technical Cooperation that visited the State in August.

Another ₹80 crore will be provided as grant early 2019, Ambassador of the Federal Republic of Germany to India Martin Ney told a press meet on Friday. The KfW will have to work out the details and ink the agreement for the financial aid, Dr. Ney said.

The financial support is in addition to the projects, including the €117-million integrated water transport system for Kochi and three future projects, under the framework of the Indo-German Cooperation.

“The aim is not just to reconstruct, but to reconstruct in such a way that the roads and bridges would withstand future disasters,” the Ambassador said.

On projects involving German cooperation with Kerala in the field of energy, he said the study on floating solar sites in the Karapuzha reservoir and Malampuzha dam is in its final stage. Germany is ready to provide finance for floating solar plants.

Solar rooftop

Germany is also keen on financing the solar rooftop programme, currently under preparation, at concessional terms.

Dr. Ney said the KfW would support the implementation of Watershed Development for Rehabilitation of Degraded Soils and Climate Change Adaption from 2019.