Islamabad, Friday September 17, 2010 – The first Steering Committee Meeting of the Multi-Donor Trust Fund (MDTF) for Khyber Pakhtunkhwa (KP), the Federally Administered Tribal Areas (FATA) and Balochistan took place today to approve a financing strategy for the $130 million fund. The World Bank administered MDTF was established at the request of the Government to support reconstruction and peace-building initiatives in crisis affected areas of KP, FATA and Balochistan. Donors also agreed that the fund, which became operational recently, should also be used to address urgent needs arising from recent flooding in these provinces and FATA.
“The Trust Fund is a good instrument for ensuring better coordination among the donors and the Government, thereby enhancing development effectiveness and also reducing transaction costs”, said Rachid Benmessaoud, World Bank Country Director for Pakistan.
Australia, Denmark, the European Union, Finland, Germany, Italy, Sweden, Turkey, UK, and the USA have agreed to pool a total of $130 million through the fund to support the two provinces and FATA. The financing plan was designed based on the preliminary findings of the Post Crisis Need Assessment (PCNA) and on the development plans of the federal and provincial governments.
“We appreciate the support of the donor partners and assure them that the Government will play its role to assure success of the MDTF", said Sibtain Fazal Halim, Secretary Economic Affairs Division, who co-chaired the meeting.
The World Bank confirmed its commitment to administer the Fund on behalf of the participating donors. The expanded focus of the MDTF takes into account the need to address flood recovery, though the Fund remains committed to the original goals in support of a long-term peace-building strategy for the region.
The Bank is using its emergency procedures to reduce preparation and approval time for projects under the MDTF. At the same time, systems are being put in place to ensure that funds will be used for the intended purposes in a transparent manner.