Press release number: IFAD 31/06

Rome, 14 June 2006 - Eight thousand families left destitute by last October’s earthquake will receive financial and technical support to rebuild their houses and buy livestock through a new project in northern Pakistan.

The US$29.6 million Project for the Restoration of Earthquake-Affected Communities and Households (REACH) will be financed almost entirely by a US$26.4 million loan from the International Fund for Agriculture Development (IFAD). The loan agreement will be signed today at IFAD headquarters in Rome by the President of IFAD, Lennart Båge, and the Ambassador of Pakistan to Italy, Mirza Quamar Beg.

About 80 per cent of families lost their houses in the project area of Azad Jammu and Kashmir, and in the North-West Frontier Province. Most of the REACH funds, more than US$20 million, will be invested in restoring houses or rebuilding new ones.

“There is an urgent need to follow up on the massive relief effort with major investments to rebuild poor people’s livelihoods,” said Båge. “Many villages that were already poor before the earthquake are now extremely vulnerable. REACH is key to enable rural communities to re-establish the basis for productive lives.”

About US$3 million of the project funds will be allocated to help families buy livestock. Many buffaloes and cows, normally a major source of income in poor rural communities, were killed by falling buildings. In addition, roads and bridges will be rebuilt in the remote mountainous areas to restore access to services and markets.

In November 2005 donors pledged over US$5 billion in support of the survivors of the earthquake. The estimated death toll is 80,000.

IFAD was one of the few major donors with significant ongoing community-based development projects in the disaster area prior to the earthquake. Following the earthquake, IFAD projects, in particular the Community Development Programme in Azad Jammu and Kashmir, were a source of information and logistical support to the relief operations.

The REACH project is likely to generate positive economic benefits by increasing household incomes and re-starting economic activity in affected communities.

With this project, IFAD will have participated in financing 21 loans to Pakistan for a total investment of US$387 million.

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IFAD is a specialized agency of the United Nations dedicated to eradicating poverty and hunger in rural areas of developing countries. Through low-interest loans and grants, it develops and finances projects that enable rural poor people to overcome poverty themselves. There are 187 ongoing IFAD-supported rural poverty eradication programmes and projects, totalling US$6.2 billion. IFAD has invested more than US$2.9 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 nearly 80 million rural poor women and men to achieve better lives for themselves and their families. Since starting operations in 1978, IFAD has invested US$9.0 billion in 705 programmes and projects that have helped nearly 300 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 participants, have contributed almost US$8.8 billion, and multilateral, bilateral and other donors have provided another US$7.0 billion in cofinancing.