| ADB hands over load of 200 million USD to Pakistan |
ISLAMABAD, July 25 (Xinhua) -- The Asian Development Bank (ADB) has released the first tranche of its new loan of 400 million U.S. dollars to Pakistan to help rebuild hundreds of thousands of homes lost in the earthquake in October, 2005.
"ADB is committed to helping the Government of Pakistan ensure that the coming winter is the last one in temporary shelter for many people displaced by the devastating earthquake," said ADB in a press release here Wednesday,
The concessional loan, approved by the ADB Board of Directors in June, is part of ADB's one-billion-dollars commitment of loans and grants to assist Pakistan in the reconstruction and rehabilitation of earthquake-affected areas. It is being released in two tranches of 200 million dollars each.
The second tranche of 200 million dollars will be released in six months, on completion of performance targets jointly agreed on by the Pakistani government and ADB.
The loan is intended to help the Pakistani government meet its deadline of May 2008 for completing the reconstruction of 585,000 rural homes, compliant with seismic safety requirements.
"The winter of 2007 will be the last for most displaced people before they move into new houses," said Peter Fedon, Country Director of ADB's Pakistan Resident Mission.
"For the 30,000 people who have been living in tents for almost two years, and the 3.5 million living in temporary or semi-permanent shelters while permanent houses are being built, the past two winters have been extremely difficult. Housing reconstruction is the most urgent of the overall needs in terms of minimizing the prolonged suffering of affected people," he said.
Attached to the loan is a 2-million-dollar grant to train Pakistani institutions working in quake-affected areas in seismic construction, to strengthen financial and strategic management, and to support environmental and social protection.
The concessional 400-million-dollar loan carries a one percent per annum interest rate with a 40 year maturity and 10 year grace period.
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