World Bank approves over $400m in flood aid

World Bank says the funds are part of the bank's $1 billion commitment to Pakistan in this fiscal year.

WASHINGTON: The World Bank said on Thursday it had approved over $400 million in credit to help Pakistan rebuild from massive flooding, some of the first aid to flow from the lender since the disaster.

The World Bank said it approved $300 in credit to help pay for imports of food, medicine, tents, fuel and machinery. It said the funds were part of the bank's $1 billion commitment to Pakistan in this fiscal year.

The World Bank and the Asian Development Bank are conducting a damage assessment of the floods. It said preliminary figures show more than 1.8 million homes were damaged or destroyed, which had displaced over 8 million people.

"The credit is part of the first phase of the World Bank's strategy to assist with flood recovery in Pakistan," said Rachid Benmessaoud, World Bank country director for Pakistan. In addition, the World Bank said it approved a $130 million credit line to repair Pakistan's highway system, much of which was destroyed by the floods.

The Bank said the project included rehabilitating 514 km (319 miles) of highway, resurfacing 342 km (213 miles) of highway, and reconstructing 128 km (80 miles) of damaged roads that provide vital access to remote and disaster-prone communities.

Last week, World Bank President Robert Zoellick told a high-level UN meeting on Pakistan that Islamabad would have to prove its ability to manage foreign aid ahead of an October meeting in Brussels to review the flood damage assessment report.