Pakistan seeks $31 million more from World Bank for flood project

The request aims to align the project with capacity, performance, readiness, and flood resilience

ISLAMABAD: The government of Pakistan has asked the World Bank to provide an additional $31 million in financing and to approve a restructuring of the Integrated Flood Resilience and Adaptation Project (IFRAP), according to official sources cited by Business Recorder.

The request is aimed at aligning the project with current implementation capacity, component performance, operational readiness, and a stronger focus on flood resilience. The proposal follows discussions between the senior management of the World Bank, the government of Pakistan, and the government of Balochistan.

The project’s development objective is to improve livelihoods and essential services and to strengthen flood risk protection in selected communities affected by the 2022 floods. With the proposed additional financing and the reallocation of $54 million from other components, the funding will support activities under Component 3 of the parent project.

These activities include scaling up the provision of multi-hazard resilient housing units and livelihood support in Balochistan.

The additional financing will raise the housing subsidy grant coverage to 102,000 beneficiaries, up from the current 35,100. The aim is to support households affected by the 2022 floods.

These households were identified through a damage assessment conducted by the government of Balochistan and later confirmed by the project’s implementing partners.

The restructuring includes a Level 2 modification, which reduces the scope of Components 1 and 4, and updates the project’s Results Framework. The revisions include changes to indicators and targets and the addition of a World Bank Group Corporate Scorecard FY24–30 indicator.

The Project Development Objective remains unchanged, and no new types of activities are being introduced. With the additional financing, the total project commitment will increase to $244 million.

Balochistan was among the provinces most affected by the 2022 floods. The Post-Disaster Needs Assessment estimated damage to the housing sector in the province at over $400 million.

The original project included $75 million in IDA credit for housing reconstruction, but a funding gap remains.

Component 1 of the revised project will finance the rehabilitation of flood-damaged community infrastructure, including irrigation systems, flood protection works, roads, and bridges in calamity-declared districts of Balochistan. It will also include technical assistance for infrastructure design, supervision, and maintenance planning.

Component 2 will focus on strengthening hydromet and climate services through the Pakistan Meteorological Department. It will expand coverage in the western region, including Balochistan.

Due to cost increases, the number of Automatic Weather Stations has been reduced from 300 to 110, with deployment now prioritizing flash flood-prone areas in South Punjab and Sindh.

Component 3 will support resilient housing reconstruction through grants and institutional support, including technical assistance and livelihood generation in the construction sector.

Component 4 will continue to support project management, technical assistance, and institutional strengthening, including capacity building and the drafting of a Water Act.

Component 5 will remain a Contingent Emergency Response component, allowing reallocation of funds in the event of a major disaster or emergency.

The Results Framework has been updated to reflect the revised project design. The indicator “people with enhanced protection to flood risk” has been revised to align with the corporate scorecard indicator “people with enhanced resilience to climate risks,” including sub-indicators for youth and women.

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