The Project will provide financial and technical support to the National Disaster Risk Management Fund (NDRMF), which is being established as a government-owned non-bank financial intermediary with a corporate structure. The NDRMF will reduce the socio-economic and fiscal vulnerability of the country and its population to natural hazards by prioritizing and financing investments in disaster risk reduction and preparedness that have high economic benefits, taking into account climate change, as well as disaster risks and their impacts. The government will pass on ADB loan funds to the NDRMF as a grant, for on-granting by NDRMF to eligible implementing partners. The NDRMF will finance up to 70% of the cost of eligible subprojects that will enhance Pakistan's resilience to extreme weather events and other natural hazards. The NDRMF will also enter into insurance arrangements to develop markets for the transfer of residual risks that cannot be mitigated.
PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY
Pakistan faces significant disaster risk and requires substantial financing to tackle it. The country and its population and assets are increasingly exposed and vulnerable to various types of natural hazards. It features in the list of the ten most vulnerable countries impacted by extreme weather events from 1995 to 2014. Increasing natural hazard events over the last 15 years have resulted in significant loss of life, economic damage, and the undoing of development gains. Floods occur frequently and have caused the greatest physical damage. More than 30 million people were affected by just three major floods in 2010, 2011 and 2014, resulting in damage and losses exceeding $14.0 billion. A major earthquake in 2005 caused more than 73,000 deaths and $5.0 billion in losses. The country faces tropical cyclone risk and droughts, including a drought in 2014-2015 which affected more than 3 million people. These events severely impact livelihoods of the poor and vulnerable, result in mass migration, and disrupt trade and commerce, and destabilize markets. Such events negatively impact government budgets, periodically placing significant additional demands on limited public resources for humanitarian relief, early recovery and reconstruction.
A more disaster resilient Pakistan with reduced socio-economic and fiscal vulnerability to natural hazards and climate variability and change (National Disaster Management Plan (2013-2022) and Draft National Flood Protection Plan IV (2016-2026)
Grant 0519-PAK: National Disaster Risk Management Fund
Government of Australia US$ 3.36 million
Loan 3473-PAK: National Disaster Risk Management Fund
Ordinary capital resources US$ 75.00 million
Loan 3474-PAK: National Disaster Risk Management Fund
Concessional ordinary capital resources / Asian Development Fund US$ 125.00 million
TA 9246-PAK: National Disaster Risk Management Fund
Technical Assistance Special Fund US$ 1.00 million
ACCOUNTABILITY MECHANISM OF ADB
The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main
Responsible ADB Officer Shafi, Mian S.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies Ministry of Finance
Economic Affairs Div.
Rm. 308 Block "C" Secretariat Bldg