The Asian Development Bank (ADB) has approved a $554 million financing package, including new and reallocated funds, to support recovery and reconstruction efforts following this year’s devastating floods.

The Manila-based lender on Monday said in a statement that the funding would also be utilised to strengthen Pakistan’s disaster and climate resilience.

“The financing, which includes a $475 million loan and a $3 million technical assistance grant from the Asian Development Bank (ADB), and a $5 million grant from the Government of Japan, will support the restoration of irrigation, drainage, flood risk management, on-farm water management, and transport infrastructure in the flood-affected provinces of Balochistan, Khyber Pakhtunkhwa, and Sindh,” read the statement.

ADB’s Emergency Flood Assistance Project will also incorporate climate and disaster resilience measures into the design of the infrastructure. The lender has also repurposed an additional $71 million from existing loans to support the government’s flood-response efforts.

“This year’s floods, which affected 33 million people and brought enormous damage to infrastructure and agriculture, are a devastating reminder of Pakistan’s acute vulnerability to climate change,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“This project will help to rebuild critical infrastructure in affected areas and restore rural livelihoods,” he said.

Large swathes of areas were left inundated in Pakistan this year, as the country suffered a prolonged and intense monsoon that led to the country’s worst flooding in a century.

A post-disaster needs assessment conducted by the government and development partners, including ADB, estimated total damage and losses at more than $30 billion and recovery and reconstruction needs at $16.3 billion.

ADB said that the loan would be utilize to reconstruct about 400 kilometers (km) of roads; about 85 km of the N-5, the country’s busiest national highway; and about 30 bridges.

“It will also help to restore and upgrade irrigation and drainage structures including canals and on-farm water facilities to restore livelihoods, and strengthen flood risk management structures to mitigate future risks to agricultural land, communities, and assets,” said ADB.

“More people are expected to fall into poverty as a result of the floods and the food-insecure population is likely to double to more than 14 million people in the most affected districts,” said ADB Principal Transport Specialist Zheng Wu.

“In close coordination with the government and other development partners, this project will provide crucial support to restore agriculture and other priority infrastructure to support socioeconomic recovery from floods.”

A $5 million grant, funded through the Japan Fund for Prosperous and Resilient Asia and the Pacific, will support staple crop cultivation in Balochistan and provide at least 60,000 farm households with higher quality, certified rice seeds for increased productivity over 54,000 hectares of land.

The $3 million technical assistance grant will support the implementation of the project and the preparation of an ensuing flood risk management investment.

In October, ADB approved a $1.5 billion loan to support the government’s provision of social protection, food security, and employment to mitigate the adverse impact of cumulative external shocks.

This article was originally published on the Business Recorder website.