ADB approves $400 million loan for Sindh flood recovery

WEB DESK: The Asian Development Bank (ADB) has approved a $400 million concessional loan aimed at aiding the reconstruction of homes and community infrastructure in Sindh, which was severely affected by the 2022 floods.

The Sindh Emergency Housing Reconstruction Project is designed to repair flood-damaged houses and essential infrastructure, while also supporting the recovery of livelihoods. A significant aspect of this initiative is to enhance the region’s resilience to future climate-related natural disasters.

According to Geo News, this project is an integral component of ADB’s broader response to the flooding crisis in Pakistan. It is part of the bank’s pledge to provide $1.5 billion in total assistance between 2023 and 2025 to expedite the country’s recovery from the floods.

Yevgeniy Zhukov, ADB Director General for Central and West Asia, stated, “This project will aid in rebuilding homes and communities, restoring livelihoods, and re-establishing essential services in Sindh, the province hardest hit by the 2022 floods. It is a key element of ADB’s extensive support to help Pakistan recover from this disaster, which impacted 33 million people and caused widespread damage to homes and infrastructure.”

The 2022 floods inflicted approximately 83 per cent of the total housing damage in Sindh, with around 2.1 million houses either completely destroyed or severely damaged. Two years later, many displaced individuals remain in temporary shelters lacking basic services such as water, sanitation, and electricity.

The project will provide conditional cash grants to facilitate the reconstruction of 250,000 homes with designs that are resilient to multiple hazards and environmentally responsive.

Additionally, it will support community-led construction of infrastructure including drinking water facilities, sanitation systems, covered drainage, and renewable energy solutions for 100,000 households across 1,000 flood-affected villages in Sindh.

Furthermore, the initiative will offer conditional cash grants for livestock, agricultural activities, small enterprises, and e-commerce ventures.

ADB Director for Water and Urban Development, Srinivas Sampath, commented, “ADB’s support will not only assist Pakistan in rebuilding more robustly but also foster community-driven strategies for climate resilience and disaster risk management, enhancing preparedness for future hazards. We are closely coordinating with other development partners to align with the government’s recovery and reconstruction priorities.”

Read next: PKR gains 6.79 paisa against US dollar