The World Bank (WB) on Thursday signed an emergency earthquake recovery credit agreement of 400 million dollars with Pakistani government here to reconstruct the earthquake-hit areas of NWFP and AJK.
The total credit, which would come from the bank's concessional International Development Association (IDA) wing included 210 million dollars for the reconstruction of houses, 85 million dollars for livelihood support, 85 million dollars for critical imports while 20 million dollars will be spent on capacity building in the quake-hit areas.
Secretary, Economic Affairs Division (EAD) Khalid Saeed and Abid Hassan, Operations Advisor, World Bank on behalf of International Development Agency (IDA) signed the financing agreement. The credit has the maturity period of 35 years and a grace period of 10 years.
The purpose of the project is to assist Islamabad in carrying out emergency recovery and reconstruction programme in the affected areas following the 7.6 magnitude earthquake, which devastated AJK and parts of NWFP on October 8.
The project consists of four main components. A total of 210 million dollars would be spent on reconstruction of houses in the affected areas, including provision of housing grants for the construction and rehabilitation of permanent hazard-resistant housing, provision of training to construction workers, designing and implementing an information dissemination system.
Besides, establishment of a grievance-redress mechanism at local, divisional and district levels, provision of training in land management, monitoring of social and environmental aspects and provision of technical assistance will also taken care of.
SURVEY: A detailed 'Damage and Eligibility Survey' would categorise housing units in the affected areas by the extent of damage lists be developed. Households, who are eligible and confirmed to be residents, will benefit from the housing grants.
THE RECONSTRUCTION GRANT WILL BE DISBURSED IN FOUR TRANCHES:
1) Rs 25, 000 have been currently provided by the government to the affected households to address their temporary shelter needs.
Materials purchased through this grant could be reused for the permanent reconstruction;
ii) Rs 75,000 as a mobilisation grant;
iii) Rs 25,000 at completion up to plinth level;
iv) Rs 50,000 at completion of walls.
However, further technical inspection would follow after the completion of the roof. The Restoration and Strengthening Grant will be disbursed in one tranche.
The other component of the credit would be livelihood support, for which 85 million dollars would come from the bank. Under this, cash monthly income support of Rs 3,000 per month recurring over a period of six months would be provided.
Out of total 400 million dollars, 85 million dollars will be spent on the import of critical goods required for the reconstruction and rehabilitation of the affected areas.
Dollars 20 million will be given for capacity building ie provision of training, technical assistance, goods, equipment and operating costs for the implementation, monitoring and supervision of the project.
Besides, emergency recovery and reconstruction activities in affected areas in additional sectors, including, social protection, health, education, agriculture and infrastructure would be carried out in the project area.
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