Release number IFAD/46/07

Rome, 1 November 2007 – IFAD has loaned a further US$15 million to the government of India to boost efforts to help coastal fishing communities in Tamil Nadu affected by the 2004 tsunami rebuild their livelihoods.

The US$68.5 million Post-Tsunami Sustainable Livelihoods Programme for the Coastal Communities of Tamil Nadu was partly financed with an initial IFAD loan of US$15 million in 2005. The agreement for a further loan of US$15 million was signed at IFAD’s headquarters today by the Republic of India’s Ambassador to Italy, Rajiv Dogra, and IFAD President Lennart Båge.

Commercial banks and insurance companies in India are providing US$24.9 million for the programme. The communities in the programme area are providing US$10.4 million and India’s government is contributing US$3.4 million.

The tsunami destroyed the livelihoods of more than 174,000 people in Tamil Nadu. The disaster affected entire communities. But some groups of people, such as scheduled castes and tribes, fishers, women fish processors and sellers, and poor farmers were hit particularly hard.

The programme will ensure that fishing communities have access to insurance against the risks of fishing and disasters like the tsunami. It is also introducing rural financial services such as life insurance and social security that will pay for lost assets.

“Fishing is one of the most dangerous ways to earn money and in Tamil Nadu an estimated 1,000 fishers die each year,” says Mattia Prayer-Galletti, IFAD’s country programme manager for India. “Insurance for the fishers themselves and their equipment makes them less vulnerable to disaster and increases their capacity to cope.”

The programme is also improving the management of fish resources in Tamil Nadu controlling pollution and phasing out destructive fishing gear and practices. Over the past 50 years, the number of fishing villages in the region has soared from 230,000 to more than 650,000. Population increases have not only put great pressure on coastal resources, they have also had a serious impact on living conditions.

The programme is helping to set up about 50 village fish marketing associations to control the first point of sale and get better fish prices. It is also working to improve basic infrastructure by creating fish auction halls, sheds, drying platforms and waste disposal facilities. And it will introduce new technologies for packing, processing and selling fish.

Training is being provided in skills like house and boat building, especially for young people. This will help create employment opportunities in areas other than fishing. Rural finance services promoted by the programme will encourage the growth of small businesses.

To date, IFAD has supported 21 projects and programmes in India for a total investment of US$564.4 million.

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IFAD is an international financial institution and a specialized United Nations agency dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, IFAD develops and finances programmes and projects that enable poor rural people to overcome poverty themselves. There are 191 ongoing IFAD-supported rural poverty eradication programmes and projects, worth a total of US$6.6 billion. IFAD has invested US$3.1 billion, with cofinancing provided by partners including governments, project participants, multilateral and bilateral donors. These initiatives will help about 82 million poor rural women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.8 billion in 751 programmes and projects that have reached more than 310 million poor rural women and men. Governments and other financing sources in recipient countries, including project participants, contributed US$9.2 billion, and multilateral, bilateral and other donors provided another US$7.2 billion in cofinancing.