Press release number: IFAD 43/05

Additional funds are being reprogrammed from three ongoing projects

Islamabad, Pakistan, 16 November 2005: A new project to support reconstruction efforts in earthquake-affected rural areas of the Islamic Republic of Pakistan is being designed by the International Fund for Agricultural Development (IFAD). The project will be supported by an IFAD loan of US$25 million and will rebuild community infrastructure, and restore livelihoods, especially for vulnerable groups.
The Government of Pakistan has asked IFAD to fast track the design of this project for approval by the organization’s Executive Board in April 2006.

''We are pleased that IFAD is working closely with the Government of Pakistan to respond to the needs of rural populations in areas devastated by the earthquake,” said the Ambassador of Pakistan, Qamar Beg.
The earthquake that struck northern Pakistan in October claimed more than 73,000 lives and left more than 3 million people without homes. It also decimated crops and livestock, and destroyed economic and social infrastructure.
IFAD’s support will focus on rehabilitation activities aimed at medium-term reconstruction and recovery objectives.

In addition to the new project, IFAD is working with the Government of Pakistan to reprogramme about US$33.6 million in resources from within ongoing IFAD-supported projects in earthquake-affected areas:

Northern Areas Development Project: Reallocated funds will be made available to rehabilitate land, and upgrade paved and unpaved roads, water supplies, sanitation and other priority village infrastructure. About US$5.6 million will be reallocated out of a total project cost of US$22.6 million.

North-West Frontier Province Barani Area Development Project: Reallocated funds will be made available to support livelihoods and rehabilitate community infrastructure, including drinking water and feeder roads. About US$11.2 million will be reallocated out of a total project cost of US$98.7 million.

Azad Jammu and Kashmir Community Development Project: Reallocated funds will be made available to rehabilitate health clinics, sanitation facilities, drinking water supplies, schools, small dams, tubewells, irrigation systems, roads and bridges. About US$16.8 will be reallocated out of a total project cost of US$30.7 million.

The main strategy in all activities will be to work through existing institutional arrangements rather than creating new ones. A primary focus will be to work with non-governmental organizations, community-based organizations, village groups and women’s groups.

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IFAD is a specialized agency of the United Nations dedicated to eradicating rural poverty in developing countries. Seventy-five per cent of the world's poorest people - 800 million women, children and men - live in rural areas and depend on agriculture and related activities for their livelihoods. Through low-interest loans and grants, IFAD works with governments to develop and finance programmes and projects that enable rural poor people to overcome poverty themselves.

There are 192 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.5 billion. IFAD has invested about US$2.8 billion in these initiatives. Cofinancing has been provided by governments, beneficiaries, multilateral and bilateral donors and other partners. At full development, these programmes will help more than 100 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested almost US$8.7 billion in 690 projects and programmes that have helped more than 250 million poor rural men and women achieve better lives for themselves and their families. Governments and other financing sources in the recipient countries, including project beneficiaries, have contributed about US$8.4 billion, and multilateral, bilateral and other donors have provided about US$6.9 billion in cofinancing.