US to provide $36 million for reconstruction, rehabilitation of Swat

[EjazR]

Daily Times - Leading News Resource of Pakistan

* Funds to be spent on provision of potable water, health and education

By Ghulam Farooq

MINGORA: The US will provide a $36 million grant for reconstruction and rehabilitation works to help Swat residents, who suffered heavily due to the militant attacks.

US Ambassador Anne W Patterson and NWFP Chief Minister Ameer Haider Hoti signed an agreement at Circuit House on Thursday, officials told Daily Times. The grant will be spent on drinking water, health and education. About $20 million would be used for education, while $12 million for health, $3 million for sanitation and $1 million for the provision of clean drinking water.

Hoti told district elders that Swat residents would not have to pay utility bills for four months as an acknowledgement of their steadfastness and sacrifices against terrorism and lauded military, police and Frontier Corps personnel for returning peace to this beautiful valley.

He said about 800 civilians were killed in Swat and the government would speed up the process of distributing compensation among the heirs of terrorism victims. He announced Rs 10 million for the family of late MPA Dr Shamsher Ali Khan who was killed in a suicide attack on December 1.

The chief minister said the government would give loans on soft terms to help people build their life again.

Turkish Ambassador Babur Hizlan also visited the affected area and brought three truckloads of relief goods for the Swat people. Talking to senior civil and military officials, he said Turkey “stands by Pakistan” and would help rebuild Swat.

 

[Solomon2]

Yes, now that the NRO is history, corruption might hide its head and the money actually be used for its intended purposes.

 

[Awesome]

A better help would be to invest in Swat's vast variety of hotels, resorts and restaurants. Swat's main source of income has been tourism... The teach a man how to fish concept should not be forgotten.

 

[Solomon2]

A better help would be to invest in Swat's vast variety of hotels, resorts and restaurants. Swat's main source of income has been tourism... The teach a man how to fish concept should not be forgotten.

I suppose so. Funds for reconstruction almost always are a better investment than funds for new construction, because people already know what is needed.

 

[SSGPA1]

This is a great opportunity for the US govt. to earn some respect and freinds by ensuring that work is actually done which is making a difference in people's life.

 

[S-2]

"A better help would be to invest in Swat's vast variety of hotels, resorts and restaurants."

I understand the sentiment but I'm not sure that I agree. Hotels, resorts, and restaurants are privately-held and really deserve to see investment from the global private sector through FDI.

What holds that back is twofold- infrastructure and security. Right now I'd be concerned with both still- minimally security that will enable these projects to be seen through and sustained rather than later be destroyed.

I know of SWAT's peaceful legacy but I also know the recent battles have caused considerable damage (to include prior to those battles with taliban destruction of schools and other facilities). It seems those issues would take precedent right now.

If successful, I'd hope that these basic projects would help to alleviate the risk mitigation that accompanies FDI.

 

[apophenia]

This dividend is nothing compared to what we have lost in this war against illiteracy .for starters rebuilt girl’s schools blown up by Talibs in Swat.

"The illiterate of the future are not those that cannot read or write. They are those that can not learn, unlearn, relearn." - Alvin Toffler

 

[Awesome]

"A better help would be to invest in Swat's vast variety of hotels, resorts and restaurants."

I understand the sentiment but I'm not sure that I agree. Hotels, resorts, and restaurants are privately-held and really deserve to see investment from the global private sector through FDI.

What holds that back is twofold- infrastructure and security. Right now I'd be concerned with both still- minimally security that will enable these projects to be seen through and sustained rather than later be destroyed.

I know of SWAT's peaceful legacy but I also know the recent battles have caused considerable damage (to include prior to those battles with taliban destruction of schools and other facilities). It seems those issues would take precedent right now.

If successful, I'd hope that these basic projects would help to alleviate the risk mitigation that accompanies FDI.

Let the people work that out on their own. If their economic situation is strengthened, they'd work out their own security. Also that's the government's job. Think of it this way, its not like the government's out of cash. The money you use up in investing is less money that we have to spend as grants and loans for these resorts and hotels.

Poverty draws crime. There is no reason for terrorism to reborn in Swat as the locals never did participate with the Taliban and were invaded in the Taliban's attempt to reach Islamabad.

I think Americans should get something back from the money they give us, a cut of the money we make using that. Fire and forget type aids may end up anywhere, plus it really doesn't form a long term relationship. Sometimes it makes Americans feel that they've done enough to buy the sun and the moon whereas ground realities may be a lot different.

I say let them invest and earn off of it too, they'd know where the money is going and what its being used for once they become business partners.

Why do you think China is so big in Pakistan even though it probably has a lesser dollar value invested in Pakistan. Chinese projects are everywhere in Pakistan, they are taking the Pakistanis with them and teaching us some of their trade.

 

[S-2]

"If their economic situation is strengthened, they'd work out their own security."

I don't see their economy improving until the risk for investment does so. Begin by improving that. As to working out their own security, I disagree. It falls to the premise that only the state holds a monopoly on violence and bearing arms to assure the public safety is a STATE responsibility that shouldn't be in any case aborgated or weakened by law or custom.

It is the basis for your troubles now in FATAville. Pakistan must provide for the physical security and basic welfare of its citizens and, in so doing, foster a climate of stability which encourages regional and foreign investment in its enterprises.

"I say let them invest and earn off of it too, they'd know where the money is going and what its being used for once they become business partners."

Governments aren't generally in the business of direct investment in foreign privately-held companies such as a tourist hotel. Private investors do so and they generally weigh factors such as security, stability, and infrastructure when doing so.

SWAT has much to offer but, foremost, as a destination resort for Pakistanis. It is a looong way from capturing the foreign appeal it once might have held (modest) much less growing it into a thriving enterprise for all-including global investors.

Given all that, you're welcome to attract foreign private investment. Nothing anybody can do to prevent that nor would. Little, though, is more closely scrutinized than investment capital directed into situations like what SWAT has recently experienced. I doubt that you'd have much success marketing such projects until...

...the basics profoundly improve to alleviate risk.

I've no argument with your essential premise but ROI is what drives investors and it's measured in NPV. To that end, you've put the cart before the horse.

It's said in Hollywood circles and elsewhere,

"If you build it, they will come..."

I believe that. Capital flows to the best balance of ROI and risk. I simply don't think you can successfully satisfy the questions which accompany those two elements yet.

In any case, I doubt that you can argue that the need for these basic facilities doesn't exist and, in some cases, constitute a life-saving measure of importance, i.e. sanitation.

 

[waraich66]

Initial estimate cost of swat damages is 2.5 Billion USD , US aid of 36 Million USD is arround 10% of total damages ,which is not even enough to reconstruct 415 damaged schools .

GOP should make a comprehensive short term ,medium term and long term plan for rehablitation of swat IDP .

IBRD,ADB should help Pakistan to rebuilt swat.

‘Reconstruction of offensive-hit Swat will take three years’

 

[AZADPAKISTAN2009]

Daily Times - Leading News Resource of Pakistan

* Funds to be spent on provision of potable water, health and education

By Ghulam Farooq

MINGORA: The US will provide a $36 million grant for reconstruction and rehabilitation works to help Swat residents, who suffered heavily due to the militant attacks.

US Ambassador Anne W Patterson and NWFP Chief Minister Ameer Haider Hoti signed an agreement at Circuit House on Thursday, officials told Daily Times. The grant will be spent on drinking water, health and education. About $20 million would be used for education, while $12 million for health, $3 million for sanitation and $1 million for the provision of clean drinking water.

Hoti told district elders that Swat residents would not have to pay utility bills for four months as an acknowledgement of their steadfastness and sacrifices against terrorism and lauded military, police and Frontier Corps personnel for returning peace to this beautiful valley.

He said about 800 civilians were killed in Swat and the government would speed up the process of distributing compensation among the heirs of terrorism victims. He announced Rs 10 million for the family of late MPA Dr Shamsher Ali Khan who was killed in a suicide attack on December 1.

The chief minister said the government would give loans on soft terms to help people build their life again.

Turkish Ambassador Babur Hizlan also visited the affected area and brought three truckloads of relief goods for the Swat people. Talking to senior civil and military officials, he said Turkey “stands by Pakistan” and would help rebuild Swat.

Libya Paid 2.7 billion dollars - to 270 ppl on some air crash which they probbly had no clue to or idea about...

Thats like 35 million or so per person ....

While how many ppl killed in SWAT ? 800 How many displayed or their homes gone 3 million people

So compensation for their pain and suffering 36 million dollars ??

I not an expert in double standards but that sounds like double standard, at least the dead victims should have recieved

800 x 35 million dollars for their loved one's lost lives

And 3 million ppl who suffered should have recieved 3-4 billion dollars to repair the damage in cities

It was not their fault that this so call war on terror is fought in their towns - us is responsible for creating this problem they should man up and pay

Also we are not thinking about our brave soliders who died or were injured due to the
operation ?? Wear and tear on Pak Army ?? They should have recieved 3-4 billion to recover their losses I mean if US is sincerely interested in working together they should really do more to cooperate with Pakistan , and waste less money on building pizza hut in Afghanistan desert for its soliders who are sitting and just eating pizza on top of a hill in middle of no where - put the money where real action is ...and stop wasting funds

 

[Awesome]

I don't see their economy improving until the risk for investment does so. Begin by improving that. As to working out their own security, I disagree. It falls to the premise that only the state holds a monopoly on violence and bearing arms to assure the public safety is a STATE responsibility that shouldn't be in any case aborgated or weakened by law or custom.

By their own, I meant, Pakistanis would work that out with or without the 36 million dollars.

Governments aren't generally in the business of direct investment in foreign privately-held companies such as a tourist hotel. Private investors do so and they generally weigh factors such as security, stability, and infrastructure when doing so.

Actually that is not entirely correct. It depends what channels the money flows through. There are always state controlled banks, state investment schemes, state bonds. The money goes somewhere.

Banks are usually the ones that are indirectly investing into probably every industry out there. Wherever they can squeeze a tiny bit of profit from, they'd do it. Throw the money into a Pakistani bank involved in bank rolling projects in Swat and reap off the profits. Help two industries with the one proverbial stone.

Handouts don't work. America has stiff opposition in its own country against handouts, the welfare system is extremely frowned upon. The security will not come since the handouts won't ever reach the right place.

Also there's a lot to be said about Pakistani security system. People place heavy reliance on personal guards. If the money is invested in the tourism industry they would definitely acquire the assistance of these security services. They cost like 10,000 rupees per guard per month.

Also not to forget metal and bomb detectors they'd be able to install and perhaps build their building entrance/exits larger to accommodate the possibility of suicide attacks.

 

[S-2]

"Actually that is not entirely correct."

I knew there was a reason I said "generally".

"Handouts don't work."

I somehow feel, given the security and infrastructure issues, that's exactly what money invested directly in business right now would be- a hand-out that only contributes to business failure.

You have to have a sanitation system that will work for the region without polluting the SWAT river and all it offers. That's a single drainage through that valley and it could easily be poisoned quickly it seems. Mingora is not a tiny place.

I don't know, the list is endless of what needs to be done. Instead of employing guys as guards, why not have them hired by the construction firms that get the bids to do the basic work that I'm affirming in the aid package?

Why not put your best accountants and pricing experts to work to approximate reasonable costs on these projects? Why not squeeze the dollars for best bang per buck and derive as much basic value as possible? Nothing says all public services need come as boondoggles nor needless luxuries and I don't think that's the case here.

"Also there's a lot to be said about Pakistani security system. People place heavy reliance on personal guards. If the money is invested in the tourism industry they would definitely acquire the assistance of these security services. They cost like 10,000 rupees per guard per month.

Also not to forget metal and bomb detectors they'd be able to install and perhaps build their building entrance/exits larger to accommodate the possibility of suicide attacks."

Try not to include the above when writing and submitting the business prospectus that's going to secure all that valued FDI. Sorta reads like a state under siege.

If so, this only reinforces my point. You aren't ready yet in this area for the type of money you wish to see. If you were, that money would find you-not the other way around.

 

[S-2]

Christine Fair made this proposal a few months back. Might be worth a thought-

Christine Fair - A Better Bargain for Foreign Aid to Pakistan - washingtonpost.com

 

[Gin ka Pakistan]

This is a great opportunity for the US govt. to earn some respect and freinds by ensuring that work is actually done which is making a difference in people's life.

If the money makes its way to the poor

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