World Bank approves $109 mln loan for Bangladesh

DHAKA (Reuters) - Bangladesh will get a $109 million loan from the World Bank for efforts to repair infrastructure and restore the livelihoods for thousands of families affected by last year's cyclone Sidr, the bank said on Saturday.

The cyclone caused extensive damage to property, livestock, and crops, with total damage and losses estimated at $1.7 billion. Overall 30 districts and about 9 million people were affected, leaving some 3,000 dead and more than 55,000 people injured, the bank said in a statement.

The finance will assist emergency efforts started after the cyclone in 2007 to construct or improve some 300 multi-purpose shelters and renovate 100 kilometres of coastal embankments with cyclone-resistant building techniques.

It will also support activities in the agriculture sector that will help farmers prepare for the next growing season and strengthen their ability to cope with future disasters.

"This is vital for Bangladesh as it is one of the world's most vulnerable countries to natural disasters and climate change," said Xian Zhu, World Bank country director for Bangladesh.

The project will also finance preparation of future schemes for river bank improvement, coastal embankment strengthening, disaster shelters, and upgrading of the rural road network.

By the end of the project period, it is expected to have helped around 57,000 poor farming households.

It brings the Bank's support for Bangladesh's cyclone response to $259 million.

The loan from the International Development Association (IDA), the World Bank's concessionary arm, is for 40 years with a 10-year grace period and carries a service charge of 0.75 percent.