Accountability, Transparency, Economic Reforms Crucial for Post-Floods Reconstruction

[pkpatriotic]

Pakistan - Accountability, Transparency, Economic Reforms Crucial for Post-Floods Reconstruction, says World Bank Vice President

Islamabad, Thursday September 09, 2010 – Isabel Guerrero, World Bank Vice President for South Asia, today reiterated the Bank’s commitment to support Pakistan in recovery and reconstruction from the devastation wrought by the floods that continue to unfold in southern parts of the country.

During a three-day visit to Pakistan, Guerrero called on President Asif Ali Zardari, Prime Minister Yousaf Raza Gilani and key officials, including the government’s economic team to update them on the progress made on Damage and Needs Assessment (DNA) being jointly led by the World Bank and Asian Development Bank for assessing the damage and reconstruction needs in the wake of the floods.

“Central coordination and local implementation should be key features of whatever institutional framework is established to manage the reconstruction program”, said Guerrero. “In areas such as cash transfers, asset compensation, housing entitlements, and land reclamation, citizens should expect transparent and uniform standards to ensure equity and reduce discretion in the implementation of policies.”

Guerrero said that accountability and transparency will be of paramount importance to attract donor financing and to reassure donors that aid will reach those who need it most. She also stressed that it is vital for the Government to take concrete measures to demonstrate that transparency and fiduciary controls over aid money are a high priority. The Bank is willing to assist in setting up instruments to track aid flows, and establishing sound procurement practices, grievance mechanisms, and robust monitoring and evaluation systems.

Guerrero also met with development partners to enhance donor coordination and to find ways for increased effectiveness of development and bilateral finances.

“In addition to making US $1 billion available for flood related reconstruction and encouraging international community to come to Pakistan’s aid, the Bank will continue to support Government’s efforts to improve domestic revenue mobilization and to re-prioritize existing public investment program to take account of the floods,” Guerrero said. “Moving ahead with tax and energy reforms is important not only for growth, but also because it shows the commitment of Government to do its part to address challenges.”

Guerrero was accompanied during her visit by Michal Rutkowski and John Henry Stein, Sector Directors for Human and Sustainable Development, World Bank South Asia region, respectively.

 

[pkpatriotic]

World Bank Supports Reconstruction of Pakistan’s Karachi Port‏

Mohamad Al-Arief - Washington
Shahzad Sharjeel - Islamabad

WASHINGTON, September 9, 2010- The World Bank’s Board of Directors today endorsed the US$115.8 million Karachi Port Improvement Project. The financing will help reconstruct the country’s largest port to relieve the capacity constraints and strengthen shipping revenues for the Pakistan economy.

Port improvement is a key component of the National Trade Corridor Improvement Program (NTCIP), which was initiated by the Government of Pakistan in 2005. The Karachi port handles approximately 60 percent (by volume) of Pakistan’s international trade, reaching approximately 38.7 million tons in 2008-2009. Although a number of operations have been initiated at the port to improve overall efficiency, there are still several important areas requiring reform.

“Improving the efficiency of Pakistan’s trade corridors is a key element of the Bank’s support to trade facilitation in the country,” said Rachid Benmessaoud, World Bank Country Director for Pakistan. “Karachi Port, as the main international gateway, provides a key link to international markets and through efficient and cost effective operations can significantly reduce the cost of doing business in Pakistan. This operation will support both the provision of infrastructure capable of handling modern bulk cargo vessels and the institutional support required to promote international best practice in the management of port facilities.”

The Karachi Port Trust (KPT) currently has a substantial development program, but needs additional financial assistance to improve utilization of its available resources. Aspects of the development program include, deepening the channel and harbor to accommodate the increasing sizes of ships, reconstructing old and shallow berths, and investing in cross harbor bridges and cargo villages.

Finance from the Karachi Port Improvement Project will be used for the reconstruction of old and shallow berths which will reduce ship waiting times and provide the necessary capacity at the Port for long term growth. Continued focus on the operational aspects of the port will ensure its long term sustainability and competitiveness both within Pakistan and regionally.

The Karachi port is a large entity that has seen growing cargo volumes. Already in 2008-2009, the limitation in KPT’s general and bulk cargo capacity delayed wheat imports with serious economic and social repercussions for the Government.

“The berths at the Karachi port are too shallow and ill-equipped to handle heavy cargo,” said Simon David Ellis, World Bank Task Team Leader and Senior Transport Economist. “Reconstruction of the failed berths is necessary to increase the effectiveness and efficiency of port operations, as well as to enhance its environmental sustainability.”

The Bank has been active in the port of Karachi since 1955. It has supported six projects to date with the last being the Karachi Port Modernization project during 1991-1998. With today’s approval of the Karachi Port Improvement Project, the World Bank hopes to achieve both short and long term goals to ensure a stronger transport system for Pakistan.

This is an IBRD Flexible Loan with fixed-spread, commitment-linked repayment schedule, level repayments, and 28 years maturity including a grace period of 7.5 years.

For more information on the World Bank in Pakistan, please visit: Pakistan

For more information, please visit the Projects website.