Poverty Alleviation; WB extends US$ 138 million to Pakistan

from The Pakistan Times

By Sarah Kamal 'Pakistan Times' Special Correspondent

ISLAMABAD: The World Bank approved on Wednesday a US$ 138 million credit for Pakistan Poverty Alleviation Fund (PPAF) to complete housing reconstruction in areas struck by the earthquake of October 8, 2005.

According to a statement of the Bank issued here today, the additional financing to the Second Poverty Alleviation Fund Project, is designed to help finance Stage two and three house reconstruction payments to the approximately 90,000 currently eligible households.

It will also finance community level infrastructure such as link roads and water and sanitation services for earthquake affected communities.

“The scale of the devastation left entire communities gravely affected and in need of rehabilitation.

PPAF mobilized within hours of the earthquake and managed various relief, reconstruction, and rehabilitation initiatives in a coordinated manner,” said John Wall, World Bank Country Director for Pakistan.

“This additional financing will enable the PPAF to continue its vital work in rebuilding lives and homes in the affected areas.”

The new financing will also allow PPAF to address long term needs of reviving social, physical and economic structures of affected communities through intensive social mobilization processes and asset building of vulnerable households.

The earthquake affected communities will continue to be mobilized into community organizations by Partner Organization’s of the PPAF and will be provided with housing compensation and training in seismic house reconstruction.

“The rebuilding effort is being carried out with the full participation of communities in the 34 union councils assigned to PPAF,” said Qazi Azmat Isa, World Bank Senior Community Development Specialist and project team leader.

“This new funding will allow these villages take a big step forward in terms of reorganizing and reestablishing themselves as vibrant and cohesive communities.”

PPAF also received additional financing of US$100 million for earthquake rehabilitation on October 25, 2005. Of this amount US$60 million was allocated for housing for 24,000 housing units.

These estimates were based on an initial damage assessment done in November, 2005.

However, the actual assessment revealed that the number of damaged or destroyed units was over 90,000 resulting in a financing gap of US$138 million.

The credit, from the International Development Association (IDA), the World Bank’s concessionary lending arm, has 35 years to maturity and a 10-year grace period.