March 31, 2007	Saturday	Rabi-ul-Awwal 11, 1428

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ISLAMABAD, March 30: France has released 18 million euros to Earthquake Rehabilitation and Reconstruction Authority (Erra) for rural housing reconstruction in earthquake affected areas. It is the first disbursement of a 40 million euros financing agreement, which was signed on November 15, 2006.

According to a press release issued by the French Embassy here, the amount has been released through the French Development Agency.

During the International Donors Conference held on November 19, 2005 in Islamabad, the French Minister for Foreign Affairs, Philippe Douste-Balzy, had pledged 80 million euros ($94 million) in soft loan for reconstruction and rehabilitation of the earthquake affected areas. Half of this pledge — 40 million Euros ($ 47 million) — was earmarked for the rural housing sector. The French soft loan dedicated to the rural housing sector is implemented through the French Overseas Development Assistance financial institution - the French Development Agency (AFD).

The 40 million euros housing component of the project focuses on the reconstruction and rehabilitation of individual houses in accordance with Para-seismic standards given by Erra. These funds are retroceded by Erra in the form of compensations to private persons to finance the reconstruction of their houses. The implementing agency Erra is in-charge of carrying out the project.

This rural housing reconstruction project has two components including compensation for reconstruction of destroyed or damaged houses on the basis of the general scheme adopted by the Pakistani authorities and support for project management by a provision which permits financing of occasional expert studies, logistical support to the implementing agency and establishment of a technical analysis laboratory in Muzaffarabad.