Manila, Aug 29, 2006 AEST (ABN Newswire) - Norway has made a US$20 million contribution to Asian Development Bank's (ASX: ATB) Pakistan earthquake fund through an innovative debt-for-development swap.
The debt-for-development swap means that $20 million worth of outstanding loan repayment obligations from Pakistan to Norway will be converted into a grant to be administered by ADB. Instead of merely cancelling bilateral debt, the swap ensures that the funds are redirected toward credible development initiatives.
"We are delighted with this contribution from the Government of Norway, which will be used for the much needed rehabilitation and reconstruction of social infrastructure and services in Pakistan," says Werner Liepach, Principal Director of ADB's Office of Cofinancing Operations.
The Pakistan Earthquake Fund (PEF) was established in November 2005 to deliver grant financing for projects that support immediate reconstruction, urgent rehabilitation, and associated development activities in earthquake-affected areas of Pakistan. ADB made an initial contribution of $80 million to the fund, which has also received contributions from the Government of Australia (A$20 million) and the Government of Finland (EURO4.5 million).
ADB has pledged a total of $1 billion in concessional support for the rehabilitation and reconstruction of earthquake-hit Pakistan.
A preliminary damage and needs assessment by ADB and the World Bank estimates that Pakistan needs about $5.2 billion to effectively undertake a relief, recovery and reconstruction strategy. Of this, $3.5 billion is for rebuilding housing, schools, health facilities, roads and other public infrastructure.
Contact
Floyd Whaley
Email: fwhaley@adb.org
Tel:+632 632 6848; Mobile: +63 920 938 6488
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