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Wednesday Jan 15 2020
Web Desk

ADB, Norway agree to 'expand support' for National Disaster Risk Management Fund

Web Desk
Photo: File

The Asian Development Bank (ADB) and Norway on Monday agreed to “expand support” for Pakistan’s National Disaster Risk Management Fund (NDRMF), a statement issued by the bank said.

Under the agreement, Norway will provide $5 million to NDRMF from the unused resources of the Pakistan Earthquake Fund, while ADB will assist the NDRMF.

The agreement was signed by Economic Affairs Division Secretary Syed Pervaiz Abbas, Ambassador of Norway to Pakistan Kjell-Gunnar Eriksen, and the ADB’s Strategy, Policy, and Partnerships Department Director General Tomoyuki Kimura.

NDRMF came into existence in 2016 to provide support in the immediate aftermath of disasters and to invest in disaster mitigation projects in Pakistan.

“ADB provided the initial financing through a $200 million loan while the Government of Australia contributed a $3.4 million grant. In 2018, the Swiss Agency for Development provided a $1.5 million grant and technical assistance via the secondment of disaster risk finance experts,” the statement said.

Also read: Signs of economic stabilisation emerging in Pakistan: ADB

The statement added that currently the NDRMF is fully functional and is financing up to 70 per cent of the cost of eligible projects. The projects are aimed to enhance Pakistan’s resilience to climate change and other natural hazards.

“It [NRDMF] is structured as a nonprofit, government-owned company incorporated with the Securities and Exchange Commission of Pakistan,” said the statement.

The ADB in July last year had announced that it plans to support Pakistan with indicative lending of up to $10 billion for various development projects and programs during the next five years.

ADB held a series of consultations with the Pakistani government to "formulate a new Country Partnership Strategy (CPS), which will guide ADB’s engagement in the country from 2020 to 2024", it said.