Strengthening urban disaster response: Pakistan failed to utilise World Bank grant

NDMA was to execute the project in two pilot cities

ISLAMABAD:

The World Bank has cancelled the a $2.73 million grant for strengthening Pakistan’s urban disaster response capacity due to National Disaster Management Authority’s (NDMA) failure to complete critical start-up activities despite a lapse of over two years.

The grant for Strengthening Pakistan’s Urban Disaster Response Capacity, a social sector project being run with technical assistance from the World Bank, was approved under the Policy of Human Resource Development (PHRD) Trust by the Government of Japan through the World Bank (WB) at a cost of $2.73 million.

According to documents available with The Express Tribune, WB in letter to the secretary Economic Affairs Division (EAD) on June 3, 2015, informed that due to a delay of over two years in completing critical star-up activities such as PC-1 approval and opening of Discretionary Account, the bank was compelled to close the PHRD grant by June 30, 2015.

The fund is a trust fund supported by Japan and managed by WB. It provides grants to pay for technical expertise, guidance, research, education, and assistance in support of WB’s multi-faceted efforts to reduce poverty, improve lives, and spur economic growth in developing countries

The project was to be executed by NDMA in two pilot cities to develop methodology and guidelines for assessing as well as enhancing multi-hazard early warning systems, disaster preparedness and response capacity of urban local authorities.

The project concept clearance proposal was submitted to the Planning and Development (P&D) Division for placement before the Central Development Working Party (CDWP) for approval. The CDWP, in its meeting on June 19, 2012, cleared the said proposal by NDMA.

Meanwhile, a grant agreement to this effect was signed by EAD and WB on July 5, 2012.

The PC-I of the project was approved by the CDWP in a meeting on November 29, 2013.



The planning commission conveyed the approval of CDWP on March 21, 2014 and the administrative approval to this effect was issued by Ministry of Climate Change on May 8, 2014 and the WB transferred the first tranche of $551,553 to the State Bank of Pakistan on September 15, 2014.

A source at the NDMA told The Express Tribune on the condition of anonymity that the amount is still available in the authorities account number one (non-food).

To utilise these funds, the Climate Change Ministry with the approval of the Finance Division got an assignment account (AA 7874-4) opened with the National Bank of Pakistan. A token supplementary grant of Rs1,000 was obtained on December 16, 2014 but the first tranche could not be utilised by the NDMA during fiscal year 2014-15.

“By virtue of too many conditions set by the World Bank for engagement of consultant in the project, the first tranche could not be utilised,” the source said.

The NDMA chairman, on October 7, directed the Climate Change Ministry for formal closure of the project enabling NDMA to take up the matter with funding agencies for release of funds worth $551,553 to the WB.

However, the ministry sought advice from the EAD on whether it should issue administrative approval for closure of the project and refund the amount to the WB or otherwise. Orders for the formal closure of the project are yet to be issued by the climate change secretary.

Published in The Express Tribune, November 26^th,  2015.