Flood rehabilitation in Sindh starts with $2.6b projects

ISLAMABAD:

Pakistan has approved the first batch of five projects for reconstruction in the flood-damaged areas and to restore livelihood at an estimated cost of $2.6 billion, including $1.7 billion in foreign loans that it hopes the World Bank would sanction at the earliest.

All the projects are located in Sindh province which is the most affected by the floods and sustained a whopping $20.4 billion in damages and losses. The Post Disaster and Need Assessment report has estimated that out of the total $16.3 billion financing needs, a sum of $7.9 billion is required for Sindh alone.

The Central Development Working Party (CDWP) has cleared the Rs330 billion or $1.5 billion worth Flood Response Emergency Housing project – the single largest scheme approved so far for Sindh.

The body also approved the Sindh Flood Emergency Rehabilitation Programme (SFERP) at Rs66 billion or $300 million cost, the Sindh Water and Agriculture Transformation Project costing Rs75 billion or $310 million and the Sindh Flood Emergency Rehabilitation Project worth Rs49 billion or $275 million.

The CDWP also approved Rs57 billion or $256 million Sindh Human Capital Investment integrated health and population programme. Only one component of this project falls in the flood category.

The CDWP cleared these programmes to pave the way for loan negotiations with the World Bank next month. Pakistan is eying to get approvals of roughly $1.7 billion in loans from the World Bank during the first half of December, according to an official of the Planning Commission.

Pakistan on Thursday showed frustration over the donors’ community’s apathy towards the sufferings of 33 million people. The world has half-heartedly responded to the $816 million flash appeal, which was only meant for relief and rescue.

The World Bank has also rechanneled some of the already approved loans towards the flood activities, as the component of the additional new financing is not very large at this stage.

In July, the World Bank had also indicated plans to cancel about $730 million in loans due to Pakistan’s failure to utilise them. However, some of these funds will now be repurposed for flood activities.

Some of the CDWP-approved projects require deeper scrutiny as the Sindh government has included nearly Rs12 billion in costs under the head of the non-governmental organisation and also included procurement of dozens of vehicles.

The CDWP, which is headed by Planning Minister Ahsan Iqbal and Planning Secretary Zafar Ali Shah, has set up a committee to determine the needs of these vehicles.

However, a Planning Ministry official said that the government might not be able to make any drastic changes as the province was run by its key coalition partner – the Pakistan Peoples Party.

Emergency Housing project

Funded by the Sindh government with a loan from the World Bank, the government has cleared the largest Rs330 billion or $1.5 billion project for helping families that lost their shelter.

The project aims to support the flood-affected people in all districts of Sindh. The World Bank may provide a $500 million loan for the project that will be implemented in 44 months.

The scope of the project includes financial assistance to 781,339 fully damaged houses and 1.1 million partially damaged houses, including the provision of supportive infrastructure.

The Sindh government will give a cash grant of Rs300,000 to the owners of fully damaged houses and Rs100,000 to partially damaged houses. The payment to the affected population will be based on a milestone-based mechanism which will be verified by the contracted implementing entities such as NGOs.

The government has proposed to give 4% of the grant to the NGO, which will cost Rs11.8 billion in total. “It is not justified and seems to be in duplication with the provision of consultancy charges of Rs1.5 billion”, according to the views of the Planning Commission.

The SFERP

The government has also approved the $300 million SFERP project for rehabilitation of infrastructure, livelihoods and strengthening the Rescue 1122 service in the province.

The project envisages restoration of roads, water supplies, rehabilitation of damaged drainage systems, improvement of food security and sustainable livelihood and strengthening of institutional resilience in various districts of Sindh.

The World Bank has committed the funding of $270 million for the period of three years from 2022-2023 to 2024-2025.

SWAT project

The CDWP approved the agriculture transformation project at a cost of Rs75 billion or $310 million. This includes a $275 million loan by the World Bank.

The project will help adjust the role of government in agriculture and water management and facilitate a transformation along the three dimensions, including agriculture, water resources, and water service delivery.

The project will also cater to the Flood-2022 losses through a component of Flood Emergency Response Component (FERC) with provision to assist farmers in forthcoming crops in form of seed, fertiliser and land preparation.

As many as 33 vehicles worth Rs126 million are being proposed to be procured under the PC-I, which the federal government has termed unjustified.

The CDWP approved the Integrated Health and Population Programme at an estimated cost of Rs57 billion or $256 million. The World Bank will provide a $200 million loan, while the Islamic Development Bank (IDB) may also provide a $50 million loan.

The project envisaged universal health coverage through enhanced access to integrated reproductive, maternal, neonatal, child, and adolescent health and nutrition services.

Another project of the Sindh government, the Strengthening of Social Protection Delivery System was also approved at a cost of Rs48.3 billion.