Pakistan - Financing project for individual housing reconstruction of earthquake-affected areas

After the severe earthquake in 2005 the French Development Agency AFD contributes to financing Pakistan’s reconstruction through a concessional loan. Coordinated by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) and in close collaboration with Non-Governmental Organizations (NGOs), compensation is provided to private individuals in order to finance the reconstruction of their houses.

07.16.2015
 

Objectives

  • Reconstruction and rehabilitation of homes, respectful of seismic standards and local traditions
  • Improving the living conditions of rural populations affected by the earthquake
  • Generating a lasting impact on the economy of the region through training workers and supervisors

Summary

The earthquake of 8 October 2005 caused unprecedented losses in Pakistan. The consequence was a massive influx of people, whose houses were damaged or destroyed, on the outskirts of urban areas in temporary refugee camps. Most of the damage was concentrated in eight districts of the mountainous areas where the population already live in precarious conditions, with modest incomes below the national average.

AFD, the French Development Agency, helps to finance the reconstruction by providing a concessional loan. Under the project beneficiaries receive a compensation payment, whereas the amount depends on the extent of damage. ERRA manages emergency operations and reconstruction and different NGOs are involved in the payment process.

The program is based on an accurate census of beneficiaries and a mapping of seismic and geotechnical risks. Further it provides training for the workers and special devices for the manufacture and delivery of materials needed for reconstruction. The World bank is the main sponsor of the sector.

Results

The project will allow the reconstruction and rehabilitation of about 26,000 homes and will therefore provide as many homes decent housing respecting the seismic standards and local traditions. It will besides strengthen and structure the NGO partner capacity. Training workers and supervisors will also have a lasting impact on the economy of the region.