World Bank Supports Pakistan Earthquake Recovery with US $470 million - Fact Sheet

Link to the Press release

World Bank Supports Pakistan Earthquake Recovery with US $470 million

October 26, 2005

FACT SHEET

The World Bank on Tuesday announced a package totaling US$470 million to assist the Government of Pakistan in the reconstruction of areas devastated by the massive earthquake of October 8.

The package includes US$200 million in quick disbursing credits from the Bank’s concessional International Development Agency (IDA). This amount will be transferred within a week.

The break-up of the package is:

Supplemental Financing of US$150 million for the Poverty Reduction Support Credit. It is clear that the economic impact of the earthquake is sizeable.  Early estimates suggest that the reconstruction costs of the lost infrastructure will run into several billions of US dollars and thus will have a sizeable impact on the overall financing needs of the Government of Pakistan.  The supplemental credit would support the sustained implementation of the PRSC reform program, and help finance part of the gap in resources incurred as a result of the earthquake of October 8, 2005. 

Supplemental Financing of US$ 50 million for the North West Frontier Province Structural Adjustment Credit II.  The NWFP SAC2 was the second in a series of three operations to support the implementation of the Government of NWFP’s Provincial Reform Program.  Early estimates suggest that the reconstruction costs of the lost infrastructure in the province could run into several billions of US dollars and thus will have a sizeable impact on the overall financing needs of the Government of NWFP.  The proposed supplemental financing would support the sustained implementation of the SAC reform program, and help finance part of the gap in resources incurred as a result of the earthquake of October 8, 2005.

Additional Financing in an Amount of US$ 100 million. Highways Rehabilitation Project.  The new activities include civil works for reconstruction and rehabilitation of earthquake damaged roads, which, based on an initial needs assessment, may include the following sections of main national highways connecting Muzaffarabad, Kagan Valley and Northern Areas with rest of the country:

• Reconstruction & Realignment of about 60 km of National Highway N-15 (Balakot-Mahindri-Naran section) including structures,
• Rehabilitation & Improvement of about 100 km of National Highway N-35 (Mansehra-Batgram-Thakot section),
• Rehabilitation & Improvement of about 35 km of National Highway N-75 (Kohala-Muzaffarabad section),
• Relocation of utilities, and resettlement and land acquisition,
• Design, contract administration and construction supervision services.

Additional Financing in an Amount of US$100 million Second Pakistan Poverty Alleviation Fund Project:  The partner organizations and PPAF will use these additional funds to rebuild communities through intensive social mobilization (approx 1 million individuals); low-cost seismologically appropriate housing (approximately 25000 units); Rehabilitation of 1500 community infrastructure schemes; Community buildings; and Coordination, Monitoring and Supervision; and Technical Assistance for earthquake resistant structures.

Reallocation of Part of the Proceeds of the NWFP CIP II Credit in an Amount of US$22.5 million.  As a result of the floods and recent earthquake, housing stock and social and economic infrastructure in these areas have been practically wiped out.  The reallocated portion of the Credit would finance an emergency operation for the flood and earthquake affected districts of NWFP.  The project will comprise three components: (i) restoration of economic and social infrastructure destroyed and damaged by floods and earthquake including restoration of roads; repair and/or reconstruction of buildings;  repair of water supply schemes and restoration of irrigation canals; (ii) strengthening of the safety net and disaster preparedness programs; and (iii) project management and implementations support.

Reallocation of Part of the Proceeds of the Credit in an Amount of US$ 7.5 million

North West Frontier Province On-Farm Water Management Project.  The objective of the emergency operation is to assist the GoNWFP in implementing a program to restore vital economic and social infrastructure damaged or destroyed by earthquake and floods. The broad project activities include: (i) restoration of economic and social infrastructure destroyed and damaged by floods and earthquake including restoration of roads; repair and/or reconstruction of buildings;  repair of water supply schemes and restoration of irrigation canals; (ii) strengthening of the safety nets and disaster preparedness programs and, (iii) project management and implementation support.

Reallocation of Part of the Proceeds of the Credit in an Amount of US$10 million and Additional Financing in an Amount of US$30 million AJK CISP.  As a result of the recent earthquake, the housing stock and social and economic infrastructure in these areas has been virtually destroyed.  The proposed project will cover three districts of AJK that have been affected by the earthquake.  These are:  Muzaffarabad, Rawalakot, and Bagh.  The project will comprise three components: (i) restoration of economic and social infrastructure destroyed and damaged by floods and earthquake including restoration of roads; repair and/or reconstruction of buildings;  repair of water supply systems, etc.; (ii) strengthening of the safety net and disaster preparedness programs; and (iii) project management and implementations support.