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
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 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

NDRMF BoD has nominated a HR committee to short-list for the core positions. The CEO be selected by the government after short-listing is done by the NDRMF BoD. The government has nominated a selection committee for the CEO. The rest of the core positions will be appointed by the BoD.

The TA has been declared effective and the TA consultant TOR's have been approved by the government.

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)

Not yet due

Not yet due

The sponsors of the NDRMF are in the process of identifying General Body members and consequently Board members,

Key positions have been advertised. Short-listing process is still to be completed.

Will be done once full BOD is appointed for NDRMF

This process is delayed. This will be done once the consultants and counterpart staff of NDRMF are hired.

Will be done once consultants and counterpart staff of NDRMF are on board.

Not yet due

Not yet due

Not yet due

Not yet due

Not yet due

Not yet due

Not yet due

Not yet due

Not yet due

Geographical Location
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 Apr 2017

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 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.36 23 Nov 2016 0.00 0.00 0%

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 0.02 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 0.00 96.69 79%
Counterpart 28.24 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2016 0.00 97.19 79%

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 0.00

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.

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Related Publications

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