A $103. 9 million emergency assistance loan will be provided by the Asian Development Bank to the Government of Fiji.
The loan is for short-term financing of disaster recovery reconstruction programs, including school rehabilitation and housing assistance.
The loan from Asian Development Bank will help ensure that reconstruction programms of schools and housing are adequately financed within fiscal constraints.
ADB is extending the $USD 50 million emergency assistance loan from its ordinary capital resources.
The loan will be in addition to Governments budget allocation of over 200 million dollars for rebuilding efforts.
The loan from ADB will have a 20-year term including a grace period of 5 years and a low interest rate of about 1.3% per year.
The full amount of the emergency assistance loan will be withdrawn in a single tranche once the loan takes effect.
“The Government of Fiji appreciates the ADB loan, which will allow us to be more responsive and build back damaged schools and homes better and stronger,” said Aiyaz Sayed-Khaiyum, Fiji’s Attorney General and Minister for Justice, Finance, Public Enterprises, and Public Service.
“The new structures will be designed and built to resist the high winds and driving rain that characterize severe tropical storms like Winston. This is particularly important to protect poor and vulnerable households.”
“Cyclone Winston has ruined lives, livelihoods and infrastructure. The loan will help to mitigate the negative social and economic impacts of the cyclone on vulnerable people and households,” said Robert Jauncey, Regional Director of ADB’s Pacific Sub-regional Office in Fiji.
“The cyclone damaged 495 schools, 88 health facilities, disrupted basic public services and destroyed crops and livelihoods.”
The World Bank is also providing a loan of $50 million to support the programs.
Total damage and losses from Winston are estimated at $1.42 billion-equivalent to 31% of gross domestic product.