ADB Approves $400 Million Loan to Reconstruct Flood-Damaged Houses and Facilities in Pakistan

MANILA, PHILIPPINES (26 July 2024) — The Asian Development Bank (ADB) today approved a $400 million concessional loan to support the reconstruction of houses and community infrastructure in Pakistan’s Sindh province damaged by the devastating floods in 2022.

The Sindh Emergency Housing Reconstruction Project will rehabilitate flood-damaged houses and community infrastructure and support livelihood recovery, with a focus on strengthening communities’ resilience against climate change-induced natural hazards.

This project is a key part of ADB’s multifaceted response to Pakistan’s flood crisis and forms part of the bank's commitment to provide $1.5 billion in total assistance from 2023 to 2025 to accelerate the country’s flood recovery.

“This project will help rebuild homes and communities, and restore livelihood and basic services in Sindh, the province most affected by the devastating 2022 floods,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “It is part of ADB’s extensive support to help Pakistan recover from the disaster which affected 33 million people and damaged houses and infrastructure across the nation.”

Sindh province sustained about 83% of the total housing damage inflicted by the 2022 floods, with around 2.1 million houses either fully destroyed or damaged. Two years on, many victims still reside in inadequate, temporary shelters lacking essential services such as water, sanitation, and electricity.

The project will support conditional cash grants for the reconstruction of 250,000 houses with multi-hazard resilient and environment-responsive designs. It will also support community-driven construction of infrastructure such as drinking water facilities, sanitation facilities, covered drainage, and renewable energy solutions for 100,000 households in around 1,000 flood-damaged villages in Sindh. The project will also support conditional cash grants for livestock, agriculture, small enterprises, and e-commerce.

“ADB’s support will not only help Pakistan build back better, but it will also promote community-led climate resilience and disaster risk management strategies to better prepare for future hazards,” said ADB Director for Water and Urban Development Srinivas Sampath. “We are coordinating closely with other development partners to support the government’s recovery and reconstruction priorities.”

The project supports the government’s resilient rehabilitation, reconstruction, and recovery strategy (4RF) and will follow an integrated and sequential approach so that investments across sectors complement each other. A $500,000 technical assistance grant will further support the government’s operational capabilities in procurement, safeguard compliance, and technical and financial management.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.