ADB Ongoing Multisector Project in Pakistan to Support Reconstruction of Quake Hit Areas

MANILA, PHILIPPINES (28 October 2005) - ADB is discussing with the Pakistan Government restructuring the scope of its Multisector Rehabilitation and Improvement Project for Azad Jammu and Kashmir (AJK), Pakistan, to focus on reconstructing priority infrastructure destroyed by the October 8 earthquake in Muzaffarabad.

The project, supported by a US$57 million loan from ADB's concessional Asian Development Fund and approved on 21 December 2004, aims to improve the living conditions, quality of life, and economic prospects in eight districts in AJK by rehabilitating and reconstructing essential physical and social infrastructure.

AJK suffered the brunt of the 7.6 magnitude earthquake, with casualties pegged at over 40,000 people dead and 2.5 million homeless. Initial assessments of ADB staff dispatched to AJK in the wake of the earthquake show that a vast majority of their hospitals, schools, houses and rural roads are completely damaged, and about 90% of the public offices have been seriously damaged.

"Under such a stressful situation where the government has lost a number of staff, and with a lot of urgent work regarding the reconstruction of earthquake stricken areas, there appears to be inadequate capacity for the AJK Government to implement the Multisector project," says Kunio Senga, Director General for ADB's South Asia Department.

"The best way to help the Government and the people of AJK is to facilitate the early commencement of the reconstruction process. ADB can take a lead in this process by using the loan proceeds of the Multisector project and start with the reconstruction of a civil hospital, schools and colleges in Muzaffarabad."

Muzaffarabad, the capital of AJK, along with Bagh, and Rawala Kot, is among the most adversely hit districts in the province. About 80% of the city is damaged with more than 23,000 feared dead. Due to its population density, Muzaffarabad is the Government's top reconstruction priority.

Immediately following the earthquake, ADB President Haruhiko Kuroda offered $10 million in immediate funds for the worst affected areas of Pakistan. A joint team from ADB and the World Bank is currently conducting an assessment of the overall needs and reconstruction costs in Pakistan. The team expects to submit its assessment mid-November.

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