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$285 Million to Support the Poor and Vulnerable Households in Conflict Affected Districts of KP and FATA

January 20, 2011

WASHINGTON, January 20, 2011 — The World Bank today approved a credit worth US$250 million to assist Pakistan’s recovery efforts in the Khyber Pakhtunkhwa (KP) province and Federally Administered Tribal Areas (FATA). The Multi-Donor Trust Fund (MDTF) will co-finance the project through an additional grant of US $35 million.  This combined support comes at a critical juncture in order to assist the poor and vulnerable households to cope with income shock due to militancy crises in KP and FATA.

Khyber Pakhtunkhwa and FATA Emergency Recovery Project is a fast-disbursing financing to assist the target households in recovery and promotion of human development through safety net support grants.  It will provide immediate relief to the affected population in the region and support the initiatives undertaken by the Government of Pakistan (GoP), the Government of KP (GoKP) and FATA in response to the militancy crisis.

“KP and FATA face a huge challenge of rehabilitation of the households affected by the ongoing crisis ,” said Rachid Benmessaoud, World Bank Country Director for Pakistan. “The credit and grant is part of the World Bank and our development partners’ strategy to maximize benefits to the poor and vulnerable  households affected by these adversities to  accelerate the recovery and in the medium term help in promoting the human development.”

The project will be implemented by the Provincial Reconstruction, Rehabilitation, and Settlement Authority, GoKP, in partnership with FATA Secretariat and other stakeholders.  The cash grants would assist the households to re-establish themselves and prepare for the post crisis long term rehabilitation program through covering basic consumption and any other short term basic needs.

“The mechanism of cash grants will also be used to promote human development by investing in the education of beneficiaries’ children,” said Cem Mete -Task Team Leader. “The cash grants will provide incentives to eligible households to comply with co- responsibilities such as sending their children to primary school to ensure the continuity of cash assistance. The project will also strengthen the necessary capacities and systems for post-disaster safety nets. ” 

The MDTF has been established by the World Bank and its development partners to provide support for humanitarian, transition, reconstruction and development programs in KP, FATA and militancy crisis affected areas of Balochistan.

The MDTF contribution to this project will be a grant. The credit will be from the International Development Association (IDA), the World Bank’s concessionary arm and will have 35 years to maturity with a 10-year grace period; it carries a service charge of 0.75 percent.


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