Govt to Launch $100 Million WB-Funded Housing Project in Flood-Hit Areas

The government is launching a project for the construction of Resilient houses in the flood hit areas with an estimated cost of $100 million.

With the help of a World Bank loan of $100 million, the government is launching a project for Resilient housing reconstruction in the flood-hit areas of all the provinces, according to official documents seen by ProPakistani.

The World Bank contribution will cover this cost as a loan to the Government of Pakistan while the loan proceeds will be transferred to the Government of Balochistan/other provinces as a “Grant in Aid” against projects duly approved by PDWP/ Provincial Competent Forum, said the documents.

Of the estimated cost of $100 million, the share of the Balochistan province will be 75 percent, other provinces 20pc and the federal government will be 5 percent, said the documents. The project is part of the umbrella PC-I of the National Program for Post-Flood Reconstruction: Climate Resilience Enhancement program.

This project will support helping flood-affected people in the reconstruction and repairs of their houses. House reconstruction and repair work will be undertaken in a way that such constructions are geared to withstand future extreme weather events. The component will support a systematic approach to housing reconstruction based on resilience principles. A spatial planning survey will be conducted to ensure reconstruction sites are more flood resilient.

On this basis, the government will provide cash grants to homeowners for the reconstruction or restoration of damaged houses. The component will support the owner-driven reconstruction scheme to be led by the participating provinces. The grant to potential beneficiaries would finance:

  1. replacement of a destroyed house with a new multi-hazard resilient core unit;
  2. restoration and strengthening of a damaged house to an acceptable resilience standard.

The reconstruction will adopt the following criteria.

  1. houses with structural damage beyond economic repair will be eligible for a reconstruction grant;
  2. houses with repairable structural damage will be eligible for a restoration and strengthening grant; housing units with nonstructural damage will not be eligible for any compensation.

The project will incentivize and reinforce the focus on outcomes and checks and balances for effective targeting where affected households are identified based on a robust survey of damaged houses to minimize administrative discretion.

Participating provinces will commit to:

  1. establish a dedicated executing agency at the provincial level;
  2. carry out engineering damage assessment through independent social mobilization teams.