News
Saturday, October 02, 2010
World Bank approves $430m for Pakistan flood recovery* $300m credit to help pay for imports of food, medicine, tents, fuel and machinery
* $130m approved separately to fund repair of highways damaged, destroyed by floods
Staff Report
ISLAMABAD: The World Bank on Friday approved a $430 million credit for Pakistan. The money will be used to help the country in flood relief and rehabilitation efforts and for repair of highways damaged or destroyed by the floods.
The loan includes $300 million credit for flood-related imports, which will be made available through the International Development Association (IDA). The loan will mature in 40 years and will have a 10-year grace period. According to a World Bank announcement, this support, which is part of a $1 billion commitment for Pakistan’s floods recovery and reconstruction efforts, will finance critical flood-related imports, like food, medicine, tents, fuel and machinery. The bank said it has also approved a $130 million credit line to repair the country’s highways that were damaged or destroyed by the floods.
“The credit is part of the first phase of the World Bank’s strategy to assist with flood recovery in Pakistan,” World Bank Country Director for Pakistan Rachid Benmessaoud said. “The recent floods are of a magnitude and scale that would stretch the capacity and resources of any country and have adversely impacted communities that were already vulnerable.”
The floods have led to a sharp increase in imports of items, such as food, medicines, tents, construction materials, machinery, and fuel. Given the massive immediate financing required to meet the early recovery needs of the millions of people affected by the floods, the World Bank processed this credit on urgent basis using its emergency project processes. “This is only the first step on a long road to recovery,” said Co-Task Team Leader Hanid Mukhtar. “We hope to ensure the immediate availability of critical supplies,” he added.
Courtesy www.dailytimes.com.pk