World Bank approves $138 mn credit for Pak
The credit has been given to the Pakistan Poverty Alleviation Fund for completing housing reconstruction in areas struck by the Oct 2005 earthquake.Updated: Feb 14, 2007, 12:41 IST
The World Bank has approved $138 million credit to the Pakistan Poverty Alleviation Fund (PPAF) for completing housing reconstruction in areas struck by the deadly October 2005 earthquake.
The latest funding is designed to help finance Stage two and three house reconstruction payments to approximately 90,000 currently eligible households besides financing 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 mobilised 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 in a statement.
"This additional financing will enable the PPAF to continue its vital work in rebuilding lives and homes in the affected areas," he said.
"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.
The bank has said that the PPAF also received additional financing of $100 million for earthquake rehabilitation.
Of this amount $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 $138 million.
The credit comes from the International Development Association (IDA), the World Bank's concessionary lending arm, has 35 years to maturity and a 10-year grace period.