WB, ADB ap­prove $775mn as stop­gap

The Financial Daily - - FRONT PAGE -

Pak­istan Re­build­ing Dam­aged In­fra­struc­ture

ISLAMABAD: The Asian De­vel­op­ment Bank ( ADB) is ex­tend­ing $650 mil­lion in emer­gency as­sis­tance loans to help Pak­istan re­build vi­tal in­fra­struc­ture de­stroyed dur­ing last year's floods, while sep­a­rately, the World Bank also ap­proved a $125 mil­lion loan.

The ADB Board of Direc­tors Wed­nes­day ap­proved the loan as­sis­tance, along with a sup­port­ing tech­ni­cal as­sis­tance grant, for the Flood Emer­gency Re­con­struc­tion Pro­ject. The loans will be used to re­con­struct dam­aged roads, bridges, ir­ri­ga­tion sys­tems, as well as flood and drainage pro­tec­tion works in the worst af­fected ar­eas.

"This as­sis­tance comes in di­rect re­sponse to a re­quest from the Gov­ern­ment of Pak­istan and rep­re­sents ADB's strong and con­tin­ued com­mit­ment to the peo­ple of Pak­istan," said Juan Mi­randa, Di­rec­tor Gen­eral for ADB's Cen­tral and West Asia Depart­ment.

"The out­come of the pro­ject will be the restora­tion of crit­i­cal in­fra­struc­ture to re­store liveli­hoods and ac­cess to mar­kets which will sup­port eco­nomic and so­cial re­cov­ery."

The emer­gency loan will re­con­struct over 790 km of na­tional high­ways and 800 km of pro­vin­cial roads and bridges to safer, higher stan­dards.

It will also up­grade flood pro­tec­tion em­bank­ments and other drainage in­fra­struc­ture in 1.5 mil­lion hectares of agri­cul­tural land. Along with quickly restor­ing dam­aged in­fra­struc­ture, the pro­ject will aim to build back bet­ter.

The as­sis­tance will in­clude $600 mil­lion to be taken from Or­di­nary Cap­i­tal Re­sources with a 32-year term, an eight year grace pe­riod and in­ter­est set in ac­cor­dance with ADB's LIBOR-based lend­ing fa­cil­ity.

An­other $50 mil­lion equiv­a­lent will be tapped from ADB's con­ces­sional Asian De­vel­op­ment Fund, which will have a re­pay­ment term of 40 years, with a 10 year grace pe­riod, and in­ter­est charges at 1 per cent per an­num

Sep­a­rately, the World Bank ap­proved a $125 mil­lion loan to help the gov­ern­ment pro­vide cash trans­fers to more than a mil­lion flood-af­fected house­holds, the bank said in a state­ment.

The World Bank loan is di­rected to­wards the gov­ern­ment's Cit­i­zen's Dam­age Com­pen­sa­tion Pro­gram which was launched in 2010 and has al­ready pro­vided around 1.4 mil­lion fam­i­lies with cash grants of 20,000 ru­pees each ($234) to cover their im­me­di­ate needs.

Mil­lions re­main dis­placed by the floods and many who

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