HYDERABAD: The Asian Development Bank (ADB) on Tuesday said it has approved USD 1.5 billion loan to India as part of its efforts to fight the coronavirus pandemic. The quick-disbursing fund is part of a larger package of support that ADB is offering to the government and other development partners. The funds will support immediate priorities such as disease containment and prevention, social protection for the poor and economically vulnerable sections.
“The quick-disbursing fund is part of a larger package of support that ADB will provide in close coordination with the government and other development partners... We are determined to support India’s Covid-19 response programs and ensure that they provide effective support to the people of India, especially the poor and vulnerable,” stated ADB president Masatsugu Asakawa.
The Manila-headquartered agency said its Covid-19 Active Response and Expenditure Support (CARES) programme will contribute directly to the improvement of access to health facilities and care, and social protection for over 800 million, including families below the poverty line, farmers, health care workers, women, senior citizens, people with disabilities, low wage earners and construction workers.
It is funded through the Covid-19 Pandemic Response Option (CPRO) under ADB’s Countercyclical Support Facility. CPRO was established as part of ADB’s $20 billion expanded assistance for developing member countries’ Covid-19 response announced on April 13.
India’s Covid-19 response programme includes a $2 billion health sector project to rapidly ramp up test-track-treatment capacity and a $23 billion pro-poor relief package, which will provide additional social protection measures targeting the poor, women, vulnerable population and disadvantaged groups, the bank noted.
Insurance coverage for health workers engaged in the Covid-19 response is also included. Around 65 per cent of the package is in the form of direct social assistance and protection to the poor and vulnerable, including women.
In the medium-term, ADB will support government efforts and coordinate with other development partners to stimulate the economy, build capacity for monitoring and evaluation of government programmes, and improve economic resilience against future shocks.