ISLAMABAD, July 26, 2024 – The Asian Development Bank (ADB) has sanctioned a $400 million concessional loan to assist Pakistan in reconstructing homes and community infrastructure ravaged by the catastrophic floods of 2022 in Sindh province. This initiative, known as the Sindh Emergency Housing Reconstruction Project, aims to rehabilitate flood-damaged residences and public infrastructure, fostering livelihood recovery and enhancing community resilience against climate change-induced disasters.
The project is integral to ADB’s comprehensive response to Pakistan’s flood crisis and is part of the bank’s pledge to provide $1.5 billion in total aid from 2023 to 2025 to expedite the country’s flood recovery efforts.
“This project will help rebuild homes and communities, and restore livelihood and basic services in Sindh, the province most affected by the devastating 2022 floods,” stated ADB Director General for Central and West Asia, Yevgeniy Zhukov. “It is part of ADB’s extensive support to help Pakistan recover from the disaster which affected 33 million people and damaged houses and infrastructure across the nation.”
Sindh province bore the brunt of the 2022 floods, accounting for approximately 83% of the total housing damage, with around 2.1 million houses either fully destroyed or significantly damaged. Two years later, numerous victims continue to live in inadequate, temporary shelters lacking essential services such as water, sanitation, and electricity.
The project will provide conditional cash grants for the reconstruction of 250,000 houses incorporating multi-hazard resilient and environment-responsive designs. Additionally, it will support the community-driven construction of infrastructure such as drinking water facilities, sanitation systems, covered drainage, and renewable energy solutions for 100,000 households across approximately 1,000 flood-affected villages in Sindh.
Moreover, the project will offer conditional cash grants to support livestock, agriculture, small enterprises, and e-commerce initiatives, promoting economic recovery and stability in the affected areas.
“ADB’s support will not only help Pakistan build back better but also promote community-led climate resilience and disaster risk management strategies to better prepare for future hazards,” remarked ADB Director for Water and Urban Development, Srinivas Sampath. “We are coordinating closely with other development partners to support the government’s recovery and reconstruction priorities.”
The project aligns with the government’s resilient rehabilitation, reconstruction, and recovery strategy (4RF), adopting an integrated and sequential approach to ensure that investments across sectors are complementary. To bolster the government’s operational capabilities, a $500,000 technical assistance grant will support procurement, safeguard compliance, and technical and financial management.
This initiative underscores ADB’s commitment to not only facilitating immediate recovery but also building long-term resilience and sustainable development in Pakistan. By addressing both current needs and future risks, the project aims to transform the recovery process into an opportunity for sustainable growth and improved living conditions for the affected communities.
