50316-001: National Disaster Risk Management Fund | Asian Development Bank

Pakistan: National Disaster Risk Management Fund

Sovereign (Public) Project | 50316-001 Status: Active

The Project will provide financial and technical support to the National Disaster Risk Management Fund (NDRMF), which is being established as a government-owned non-bank financial intermediary with a corporate structure. The NDRMF will reduce the socio-economic and fiscal vulnerability of the country and its population to natural hazards by prioritizing and financing investments in disaster risk reduction and preparedness that have high economic benefits, taking into account climate change, as well as disaster risks and their impacts. The government will pass on ADB loan funds to the NDRMF as a grant, for on-granting by NDRMF to eligible implementing partners. The NDRMF will finance up to 70% of the cost of eligible subprojects that will enhance Pakistan's resilience to extreme weather events and other natural hazards. The NDRMF will also enter into insurance arrangements to develop markets for the transfer of residual risks that cannot be mitigated.

Project Details

Project Officer
Shafi, Mian S. Central and West Asia Department Request for information
Country
  • Pakistan
Modality
  • Grant
  • Loan
  • Technical Assistance
Sector
  • Finance
 
Project Name National Disaster Risk Management Fund
Project Number 50316-001
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0519-PAK: National Disaster Risk Management Fund
Government of Australia US$ 3.36 million
Loan 3473-PAK: National Disaster Risk Management Fund
Ordinary capital resources US$ 75.00 million
Loan 3474-PAK: National Disaster Risk Management Fund
concessional ordinary capital resources lending / Asian Development Fund US$ 125.00 million
TA 9246-PAK: National Disaster Risk Management Fund
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Finance / Infrastructure finance and investment funds - Insurance and contractual savings

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Project will provide financial and technical support to the National Disaster Risk Management Fund (NDRMF), which is being established as a government-owned non-bank financial intermediary with a corporate structure. The NDRMF will reduce the socio-economic and fiscal vulnerability of the country and its population to natural hazards by prioritizing and financing investments in disaster risk reduction and preparedness that have high economic benefits, taking into account climate change, as well as disaster risks and their impacts. The government will pass on ADB loan funds to the NDRMF as a grant, for on-granting by NDRMF to eligible implementing partners. The NDRMF will finance up to 70% of the cost of eligible subprojects that will enhance Pakistan's resilience to extreme weather events and other natural hazards. The NDRMF will also enter into insurance arrangements to develop markets for the transfer of residual risks that cannot be mitigated.
Project Rationale and Linkage to Country/Regional Strategy Pakistan faces significant disaster risk and requires substantial financing to tackle it. The country and its population and assets are increasingly exposed and vulnerable to various types of natural hazards. It features in the list of the ten most vulnerable countries impacted by extreme weather events from 1995 to 2014. Increasing natural hazard events over the last 15 years have resulted in significant loss of life, economic damage, and the undoing of development gains. Floods occur frequently and have caused the greatest physical damage. More than 30 million people were affected by just three major floods in 2010, 2011 and 2014, resulting in damage and losses exceeding $14.0 billion. A major earthquake in 2005 caused more than 73,000 deaths and $5.0 billion in losses. The country faces tropical cyclone risk and droughts, including a drought in 2014-2015 which affected more than 3 million people. These events severely impact livelihoods of the poor and vulnerable, result in mass migration, and disrupt trade and commerce, and destabilize markets. Such events negatively impact government budgets, periodically placing significant additional demands on limited public resources for humanitarian relief, early recovery and reconstruction.
Impact A more disaster resilient Pakistan with reduced socio-economic and fiscal vulnerability to natural hazards and climate variability and change (National Disaster Management Plan (2013-2022) and Draft National Flood Protection Plan IV (2016-2026)
Project Outcome
Description of Outcome Increased and sustainable institutional and physical capacity to reduce the socio-economic and fiscal impacts of natural disasters and climate change.
Progress Toward Outcome The implementation progress of NDRMF is very slow. The Project is at as stage where any further delays may result in incomplete delivery of outputs leading to non-achievement of project outcomes.
Implementation Progress
Description of Project Outputs

NDRMF established and made operational

Increased investment to reduce vulnerability to disasters.

Analytical work and products to improve fiscal management of disaster risks.

Status of Implementation Progress (Outputs, Activities, and Issues)

The Project has substantial start up delays. There are historical delays about appointment of board, staffing of NDRMF, and development of systems and procedures for the NDRMF.

At present the National Disaster Risk Management Fund (NDRMF, the Fund) has only two dedicated full time staff a CFO and an Accounts Specialist Any further delay in appointment of remaining staff will have adverse impact on the Project and it will become highly unlikely that the Fund could start disbursing grant in the calendar year 2018.

The key issues faced by the Fund and their current status is provided as under:

1. Finalization of General Body Members:

The BOD has recommended a list of eight individuals for board membership, but nomination have not been formally submitted or approved by the government.

2. Appointment of remaining members, of Board of Directors for the Fund

The Board is still operating with the four ex-officio members. A fifth member has been recommenced (Chairman, NDMA), which is yet not notified. A list of eight individuals has been recommended by the Board for expanding its membership but these nominations have still not been formally submitted or approved by the Government

3. Appointment of Key Staff:

This activity is substantially delayed. For the position of CEO, three names have been recommended to the Federal Cabinet for approval of appointment. For remaining staff positions, the Board has recently approved to advertise the positions.

4. Nomination of Board Committees:

The following Board Committees have been nominated:

i) HR Committee

ii) Nomination Committee

iii) Audit Committee

iv) Procurement Committee

A risk management committee has is to be nominated.

5. Technical Support by the ADB

ADB has hired a team of nine individual consultants to help EA in kick starting the Project, and development of systems, procedures, and manuals for the NDRMF. Two more individual consultants are in the process of hiring.

In the recent Board meeting held on 2 March 2018, the following was discussed decisions taken.

1. The Board recommended eight individuals for expanding its membership and the general body.

2. The Accounting manual, Investment Guidelines, Procurement Manual, HR Manual, and ESMS were reviewed and approved.

3. A Board committee on Procurement committee was formed. Committee will finalize its TOR.

4. Board Approved advertisement of 31 staff positions of NDRMF.

5. For institutional procurement, the Board delegated powers to the CEO for transactions upto $25,000.0

With the recent BOD meeting and decisions taken therein, there is a hope that the Project will gain momentum in next couple of weeks and make up for the time that has already lost.

Geographical Location Nation-wide
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects

The project is classified as financial intermediary for the environment, involuntary resettlement, and indigenous peoples. The project will not finance any category A subprojects. No significant adverse environmental impacts are anticipated, as most civil works will involve retrofitting or rehabilitating existing facilities. Negative impacts during construction will likely be short term, site-specific, and mitigable. An ESMS document has been prepared. The project may finance subprojects classified as category B for the environment in line with the requirements set out in the draft ESMS document.

NDRMF will have a Safeguards and Gender Unit (SGU) under the Quality Assurance Group (QAG) to support the conduct of safeguards, social protection, and gender due diligence in the project appraisal, monitoring, and reporting. The Director, QAG will be the ESMS Focal Point for the Fund and consolidate inputs from the SGU technical staff. The SGU will have a core technical team composed of an Environment Officer (EO), a Social Safeguards Officer (SSO), and a Social Development and Gender Officer (SDGO), supported by 3 technical/field-support and 2 administration-support staff.

Involuntary Resettlement

The project is classified as financial intermediary for the environment, involuntary resettlement, and indigenous peoples. Proposals that involve no or limited involuntary resettlement impacts will be prioritized. An ESMS document has been prepared. The project may finance subprojects classified as category B for the involuntary resettlement in line with the requirements set out in the draft ESMS document.

NDRMF will have a Safeguards and Gender Unit (SGU) under the Quality Assurance Group (QAG) to support the conduct of safeguards, social protection, and gender due diligence in the project appraisal, monitoring, and reporting. The Director, QAG will be the ESMS Focal Point for the Fund and consolidate inputs from the SGU technical staff. The SGU will have a core technical team composed of an Environment Officer (EO), a Social Safeguards Officer (SSO), and a Social Development and Gender Officer (SDGO), supported by 3 technical/field-support and 2 administration-support staff.

Indigenous Peoples

The project is classified as financial intermediary for the environment, involuntary resettlement, and indigenous peoples. No impacts on indigenous peoples are anticipated. An ESMS document has been prepared. The project may finance subprojects classified as category B for the indigenous peoples in line with the requirements set out in the draft ESMS document.

NDRMF will have a Safeguards and Gender Unit (SGU) under the Quality Assurance Group (QAG) to support the conduct of safeguards, social protection, and gender due diligence in the project appraisal, monitoring, and reporting. The Director, QAG will be the ESMS Focal Point for the Fund and consolidate inputs from the SGU technical staff. The SGU will have a core technical team composed of an Environment Officer (EO), a Social Safeguards Officer (SSO), and a Social Development and Gender Officer (SDGO), supported by 3 technical/field-support and 2 administration-support staff.

Stakeholder Communication, Participation, and Consultation
During Project Design During the design stage, extensive consultations were made with all stakeholders including the Federal and Provincial Governments, international development partners, institutions handling disasters, civil society organizations, and academia (both public and private sector).
During Project Implementation

The NDRMF is the implementing agency for this project. It will provide financial and technical support to government and nongovernment partners to implement the NDMP and NFFP-IV. It will assess and prioritize subprojects for which ongranting is requested. The NDRMF will (i) adopt acceptable corporate and financial governance and management practices (e.g., the Code of Corporate Governance, 2012); (ii) have its accounts and financial statements audited annually by independent auditors in a manner acceptable to ADB; (iii) have adequate policies, systems, and procedures to assess and monitor subprojects' economic, social, and environmental impacts (e.g., adopt an environmental and social management system [ESMS], and prepare necessary safeguard documents, where applicable); and (iv) ensure that an economic internal rate of return (EIRR) of at least 12% for works and equipment subprojects is achieved. The NDRMF will also monitor the implementation performance of approved subprojects.

The Economic Affairs Division of the Ministry for Finance, Revenue, Economic Affairs, Statistics and Privatization, which is responsible for donor coordination across all sectors, will be the NDRMF's executing agency. It will ensure the effective coordination of NDRMF and other donor support for DRM through a common mechanism, which will oversee all DRM assistance in the country at the federal level. At the provincial and regional levels, coordination committees led by planning agencies and supported by the NDRMF will facilitate a coordinated approach and collective monitoring and accountability in the implementation of a DRM agenda across the regions. These committees, which will include representation from all key DRM stakeholders, will also provide an ideal platform for deepening DRM mainstreaming work in the provinces

Responsible ADB Officer Shafi, Mian S.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Ministry of Finance
[email protected]_CC.SDNPK.UNDP.ORG
Economic Affairs Div.
Rm. 308 Block "C" Secretariat Bldg
Islamabad, Pakistan
Timetable
Concept Clearance 19 Jul 2016
Fact Finding 20 Jul 2016 to 05 Aug 2016
MRM 09 Sep 2016
Approval 23 Nov 2016
Last Review Mission -
Last PDS Update 28 Mar 2018

Grant 0519-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2016 02 Dec 2016 27 Dec 2016 17 May 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.36 Cumulative Contract Awards
ADB 0.00 23 Nov 2016 0.00 0.20 6%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.36 23 Nov 2016 0.00 1.10 33%

Loan 3473-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2016 02 Dec 2016 27 Dec 2016 17 May 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 75.00 23 Nov 2016 0.00 0.00 0%
Counterpart 25.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2016 0.13 0.00 0%

Loan 3474-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2016 02 Dec 2016 27 Dec 2016 17 May 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 153.24 Cumulative Contract Awards
ADB 125.00 23 Nov 2016 96.69 0.00 79%
Counterpart 28.24 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2016 107.50 0.00 88%

TA 9246-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2016 17 Mar 2017 17 Mar 2017 01 Dec 2019 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 23 Nov 2016 118,023.97

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

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Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
National Coordinator Individual - Consulting Active 14 Jun 2018 28 Jun 2018
Architect, Interior Designer - National Disaster Risk Management Fund Individual - Consulting Closed 05 Jun 2018 11 Jun 2018
Communication Specialist NDRMF Individual - Consulting Closed 10 May 2018 16 May 2018
MHVRA - Climate Change Expert - National Disaster Risk Management Fund Individual - Consulting Closed 26 Sep 2017 02 Oct 2017
Monitoring and Evaluation Expert Individual - Consulting Closed 30 Jun 2017 09 Jul 2017
Environmental Specialist - National Disaster Risk Management Fund Individual - Consulting Closed 23 Jun 2017 06 Jul 2017
Monitoring and Evaluation Expert - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 04 May 2017
Disaster Risk Management Expert - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 06 May 2017
Financial Management Specialist - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 04 May 2017
Interdepartmental Climate Change Coordinator - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 04 May 2017
Disaster Risk Financing Expert - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 04 May 2017
Technical Advisor (Legal Expert) - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 04 May 2017
Economist - National Disaster Risk Management Fund Individual - Consulting Closed 25 Apr 2017 04 May 2017

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan