ADB approves $40 Million loan for Pakistan

MANILA: The Asian Development Bank (ADB) has approved a $400 million concessional loan to aid in the reconstruction of homes and community infrastructure in Sindh, which were severely damaged by the 2022 floods.

The Sindh Emergency Housing Reconstruction Project aims to repair flood-damaged houses and community facilities, support livelihood recovery, and enhance community resilience against climate change-related natural hazards.

The project is a central component of ADB’s comprehensive response to Pakistan’s flood crisis and is part of the bank’s broader commitment to provide $1.5 billion in assistance from 2023 to 2025 to expedite the country’s flood recovery.

“This initiative will assist in rebuilding homes and communities, and restore livelihoods and basic services in Sindh, the province hardest hit by the 2022 floods,” stated ADB Director General for Central and West Asia, Yevgeniy Zhukov.

“It is a vital part of ADB’s extensive effort to aid Pakistan in recovering from the disaster, which affected 33 million people and caused extensive damage to homes and infrastructure nationwide.”

Sindh experienced approximately 83% of the total housing damage from the 2022 floods, with about 2.1 million homes either destroyed or damaged.

Even two years later, many victims are still living in inadequate temporary shelters lacking essential services like water, sanitation, and electricity.

The project will provide conditional cash grants for the reconstruction of 250,000 homes with designs that are resilient to multiple hazards and environmentally responsive.

It will also support community-driven infrastructure projects, including drinking water and sanitation facilities, covered drainage systems, and renewable energy solutions for 100,000 households in around 1,000 flood-damaged villages in Sindh.

Additionally, the project will offer conditional cash grants for livestock, agriculture, small businesses, and e-commerce.

ADB’s support will not only help Pakistan rebuild more effectively but also foster community-led climate resilience and disaster risk management strategies to better prepare for future hazards,” said ADB Director for Water and Urban Development, Srinivas Sampath.

“We are closely coordinating with other development partners to align with the government’s recovery and reconstruction priorities.”

The project aligns with the government’s resilient rehabilitation, reconstruction, and recovery strategy (4RF) and will implement an integrated approach to ensure that investments across sectors complement one another.

Additionally, a $500,000 technical assistance grant will support the government’s capabilities in procurement, safeguard compliance, and technical and financial management.