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December 29, 2005 Thursday Ziqa’ad 26, 1426



$305m funding for quake relief received so far



By Ihtasham ul Haque


ISLAMABAD, Dec 28: The government has received $305 million in cash of the $6.2 billion committed for the rehabilitation and reconstruction in the quake-hit areas.

A senior finance ministry official told Dawn that international donors had disbursed in the account of the State Bank a soft loan of $285 million and $20 million outright grant, which the government was accordingly spending.

He said the government was documenting a detailed ‘reconstruction plan’. It gave priority to housing, health, education, public works, construction of government buildings, power, transport, water supply & sanitation, communication, livestock & dairy, furniture, value added services and creating employment opportunities in quake-hit parts of Azad Kashmir and the NWFP, he added.

This document, he said, would be shared with the Earthquake Rehabilitation and Reconstruction Authority (ERRA) to effectively carry out various development activities.

“We will meet the representatives of the international donors after Eidul Azha to correlate development activities,” the official said.

During the meeting with the donors, the official pointed out, the government would finalize arrangements to acquire more funds, including $3.9 billion soft loan and $2.3 billion grant.

Earlier, he said, agreements with the World Bank and the Asian Development Bank (ADB) had been signed for getting immediate financial assistance.

“After the Eid, we will be concluding more funding agreements with donors and other lending agencies to get new and quick disbursements,” the official said, adding that housing was on the top of priorities.

Under a plan, he said, Rs1,75,000 in cash were being offered to each affected household in three instalments. The first instalment of Rs25,000 had been already given. Next phase would start in February-March 2006 in which Rs75,000 would be given to help survivors start construction of their houses.

Once they constructed their houses at plinth level, they would be given the last instalment of Rs75,000 to complete their houses according to the standards and specifications set by the ERRA, the official added.

“All the agencies concerned had been given target to get 400,000 quake-resistant model housing units built before the next winter season,” the official said.



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