|
|
 |
| |
| December 16, 2005 |
| |
| $1.7 Billion For Pakistan Quake Reconstruction |
WASHINGTON - December 16, 2005. The Asian Development Bank said Friday it has approved $1.33 billion in
grants and loans for Pakistan to rebuild quake-hit areas, while the World Bank separately released $400 million, reports The Associated Press.
The ADB package includes $300 million in grants for reconstruction of
areas in northwestern Pakistan and Pakistan-administered Kashmir worst hit
by the Oct. 8 quake, the bank said a statement. The assistance includes a
$1 billion pledge it made in November at a donors' conference in
Islamabad. The World Bank said the $400 million emergency recovery credit
is part of $1 billion it promised for earthquake recovery. "This credit
will allow people to put their lives and homes back together," said John
Wall, the World Bank representative for Pakistan. The two institutions
have estimated the overall cost from the quake at around $5.2 billion,
including relief operations, livelihood support for victims and
reconstruction.
Bloomberg explains that of the World Bank’s emergency credit, a total of
$220 million will help rebuild homes, while the rest will be spent on
other reconstruction efforts, including roads, water supply and other
infrastructure. “In addition to the enormous human toll, the cost of the
earthquake and its aftermath will present Pakistan with an enormous
financial challenge,” the World Bank said in the statement, estimating
earthquake-related costs at $5.2 billion. The funding is crucial as
hundreds of thousands of people still lack the shelter they need to
survive the winter that lasts from November until March in the part of
Kashmir controlled by Pakistan and the North West Frontier province.
Agence France Presse further reports that by far the largest component of
the total ADB aid package is a multi-tranche financing facility (MFF) of
up to $770 million and a related $3 million loan to upgrade the country's
highway network. "The MFF structure, the first to be used in ADB's
operations and in Pakistan, was deemed most appropriate to meet the
government's long-term needs, as it provides a flexible facility that
combines large-scale financing with promotion of reforms and adherence to
safeguard and oversight requirements," said ADB transport specialist Allan
Lee.
The Business Recorder (Pakistan) meanwhile writes that another ADB program component, the Earthquake Emergency Assistance Project, features a quick disbursing mechanism amounting to $108 million to finance import of
materials urgently needed for the recovery process. The project
additionally addresses needs of vulnerable groups, including women and
children, and assists affected people by supporting the reissue of lost
documentation as well as protecting their legal rights. Work planned
includes rehabilitation of earthquake-damaged major roads and bridges;
repair of hydropower generating stations and construction of new lines and facilities; and reconstruction of health and education facilities in
affected districts.
Dow Jones also notes that this week, the UN said that it needs an
additional $45 million to provide survivors with thick blankets and
shelter materials. On Thursday, Sardar Sikandar Hayat, the top elected
official in Kashmir, urged the world community to generously help
Pakistan. "We are grateful to the international community for helping us,
but we need continued support for relief and reconstruction work," he
said. Also on Thursday, UN Secretary-General Kofi Annan appointed former
US President George H.W. Bush as his special envoy for rehabilitation and
reconstruction in quake-stricken Pakistan.
In related news, BBC News reports the UN General Assembly has approved a
new $500 million emergency fund to provide instant aid to people hit by
major disasters. The Emergency Response Fund aims to reduce the need for appeals every time a crisis unfolds. It will be launched in January and be running by March. Correspondents say there is powerful political support for the idea, but some charities fear being overlooked. They argue that money from the fund might go first to UN agencies and could make it more difficult for non-governmental organizations to get cash. But those in favor - including the British-based aid agency Oxfam - say the key thing about having a big standing fund rather than making flash appeals for every crisis is that the world would be able to respond more quickly.
Source: The World Bank |
| |
| |
| |
|
