ADB to provide $214 mn loan for Pak

Islamabad: The Asian Development Bank (ADB) released $214 million to help Pakistan expedite disbursement of housing compensation to earthquake-affected families under the Earthquake Displaced People Livelihood Restoration Programme.

This is the second tranche of a $400 million loan aimed at helping Pakistan meet rebuilding cost of about 585,000 rural houses damaged in the 2005 earthquake.

“We are committed to support the government’s efforts in meeting the reconstruction challenge all the way through, building on the strong momentum in the reconstruction process and we will continue to assist Erra until the job is done,” Peter Fedon, country director of the ADB said.

To date the ADB has committed about $820 million in loans and grants and leveraged another $100 million in the form of bilateral grant funds from its co-financing partners Australia, Belgium, the European Union, Finland and Norway.

Rebuilding of over half a million rural houses was a phenomenal challenge. However, the decision by the government to provide a Rs150,000 housing grant to each affected family has been a major initiative. The decision has helped people to rebuild their houses based on their own needs and by using seismically compliant designs approved by Erra, says Shaukat Shafi, senior ADB project implementation officer.