World Bank Announces $1 Billion Funding For Earthquake-Hit Indonesia

| October 14 , 2018 , 17:50 IST

The World Bank on Sunday has announced funding of up to $1 billion for the Indonesian for relief and reconstruction in the country's two islands that were hit by Earthquake and a tsunami.

On September 28, a powerful 7.5 magnitude earthquake and subsequent sea wave hit areas of Lombok and Sulawesi in Indonesia. More than 2,000 people lost their lives with 680 missing.

"The proposed $1 billion packages could also include a new standalone emergency recovery program to finance the rebuilding of critical public facilities and infrastructure assets such as hospitals, schools, bridges, roads, highways, water supply infrastructure," the world bank statement reads. 

The World Bank also concluded a preliminary damage report that assesses the geospatial distribution of the damage and the estimated cost of the damage by the Tsunami in Sulawesi.

The estimated physical loss is around $531 million.

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World Bank Chief Executive Officer Kristalina Georgieva said, “On Friday I visited the city of Palu in Sulawesi with His Excellency Vice President Kalla. It is humbling to see the devastation and hear the stories of those who have been affected.”

“The Government’s immediate relief efforts are robust and impressive. As we enter the reconstruction phase we are making up to $1 billion of comprehensive support available for Indonesia. The best memorial to those who lost their lives is built back better,” she added.

"The government appreciates the attention and support of the international community in our time of need, including from the World Bank Group. Restoring lives and livelihoods of the people affected by natural disasters is the government's utmost priority," said Sri Mulyani Indrawati, Finance Minister of Indonesia.

Over the past decade, the World Bank has emerged as the global leader in disaster risk management, supporting client countries to assess exposure to hazards and address disaster risks.