Tuesday, 14 June 2011

US gives $193 million for flood affectees

ISLAMABAD: The US has released $193 million to Pakistan for Citizen Damage Compensation Plan (CDCP) to provide financial assistance to the 1.6 million flood-affected families.

The government has already paid Rs 20,000 installment to the flood-affected families and is planning to give another Rs 20,000 to them by the end of June or early July, official sources at the Ministry of Finance informed on Tuesday. According to the official sources, the total CDCP programme financing requirement is approximately $580 million of which the government of Pakistan has committed to provide $100 million as counterpart funding to match the approximately $480 million donor funds.

The CDCP is expected to receive parallel confirmed financing of $190 million from USAID, whereas Italy and DFID are in the process of formalising their contributions of $65 million and up to $100 million, respectively.

France, Australia, and Canada are considering support for the CDCP as well. In addition to the financing of almost $400 million of cash grants in Phase I of the CDCP, the government of Pakistan has committed $100 million for cash grants to Phase II of the programme. The government, co-financing donors, and IDA will enter into a memorandum of understanding (MoU) committing the necessary resources for the CDCP as a condition of effectiveness.

The MoU will outline the guiding principles for engagement, responsibilities of participating donors and government, as well as specific areas of contribution and amounts committed with the objective of clearly tracking funding sources and avoiding duplication. The government intends to implement Phase II of the CDCP to continue to support the recovery of flood-affected households. The initial payment of Rs 20,000 helped households to cover immediate needs.



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