The Asian Development Bank (ADB) has released the first tranche of its new loan of $400 million to Pakistan to help rebuild hundreds of thousands of homes lost in the earthquake in October, 2005.
ADB is committed to helping the Government of Pakistan to ensure that the coming winter is the last one in temporary shelter for many people displaced by the devastating earthquake, Forbe TV reported.
The concessional loan, approved by the ADB Board of Directors in June, is part of ADB’s one-billion-dollars commitment of loans and grants to assist Pakistan in the reconstruction and rehabilitation of earthquake-affected areas. It is being released in two tranches of 200 million dollars each.
The second tranche of 200 million dollars will be released in six months, on completion of performance targets jointly agreed on by the Pakistan government and ADB.
The loan is intended to help the Pakistani government to meet its deadline of May 2008 for completing the reconstruction of 585,000 rural homes, compliant with seismic safety requirements.
The winter of 2007 will be the last for most displaced people before they move into new houses.
Attached to the loan is a 2-million-dollar grant to train Pakistani institutions working in quake-affected areas in seismic construction, to strengthen financial and strategic management, and to support environmental and social protection.
The concessional 400-million-dollar loan carries a one percent per annum interest rate with a 40 year maturity and 10 year grace period.