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Download PDF Giving an indication that loans worth $365 million might be available for the post flood rehabilitation programme, representatives of different donor agencies yesterday proposed formation of a permanent fund with government and donor contributions to face natural disasters.
“What we have discussed in the meeting is setting up a fund with government and donor contributions, to face natural disasters including flood,” World Bank Country Director Xian Zhu told reporters after a meeting with government officials on the post flood rehabilitation programme.
“We should not have to come after each flood. We need a permanent mechanism to solve the problem of funding following natural disasters,” said Xian Zhu, who is also chairing the donors’ group under the banner of Local Consultative Group (LCG).
Local heads of the donor countries and multilateral development partners, including the World Bank, Asian Development Bank (ADB), DFID of the UK, and Japan were present at the third of the series of meetings on post flood rehabilitation.
Economic Relations Division (ERD) Secretary Aminul Islam Bhuiyan led the Bangladeshi side in the meeting.
The donors in the meeting gave an indication that loans worth $365 million might be available for the post flood rehabilitation programme. The fund will be generated by reallocating donors’ contribution in different ongoing projects as well as by fresh funding.
“World Bank has already provided $75 million for budgetary support and we are expecting another $130 million from them,” the ERD secretary told the reporters.
He said the World Bank will reallocate its funding in different ongoing projects to facilitate the post flood rehabilitation cost.
“The donors will send a proposal shortly with a list of projects from where they will shift money to the post flood rehabilitation programme,” he said.
The ERD secretary also said the Asian Development Bank (ADB) hinted that it might provide $30 million for the post flood rehabilitation programme. The ADB and other donors will generate another fund of $130 million for the same purpose.
At the meeting, Planning Secretary Zafar Ahmed Chowdhury placed a report assessing the damage done by the recent flood and the funds required for the rehabilitation programme.
The report said a total of Tk 2,689 crore is necessary to meet the rehabilitation cost, Tk 1,120 crore of which is required for the local government and engineering department, Tk 690 crore for the roads and highways division, Tk 538 crore for the Water Development Board, Tk 38 crore for Bangladesh Railway, Tk 50 crore for the education ministry, and Tk 253 crore for the agricultural ministry and other ministries.
Sources said the meeting also discussed the possible agenda of the forthcoming meeting on the Poverty Reduction Strategy Paper (PRSP) to be held in Dhaka on November 18 and 19, which is likely to be topped by the issues of governance and the power sector.
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