HomeMediaNetherlands Government contributes USD 5 million towards rehabilitation of crisis affected communities in KP, FATA and Balochistan

Islamabad, October 10, 2012 – The Netherlands Government and the World Bank have signed an agreement today regarding the Netherlands’ contribution of USD 5 million in support of the Multi Donor Trust Fund (MDTF) for Khyber Pakhtunkhwa (KP), Federally Administered Tribal Areas (FATA) and Balochistan.

At the request of the Government of Pakistan, the MDTF for KP, FATA and Balochistan was established in 2010 to provide funding for reconstruction, rehabilitation, reforms and other interventions needed to build peace and create the conditions for sustainable development.  The MDTF is administered by the World Bank and is presently supported by ten donors - Australia, Denmark, European Union, Finland, Germany, Italy, Sweden, Turkey, UK, and the USA.  With the contribution from the Netherlands’ Government, the MDTF will have commitments totaling USD 158.5 million. 

The MDTF works through provincial governments of KP and Balochistan and the FATA Secretariat on needs identified by them and builds on the strategic priorities defined in the Post-Crisis Needs Assessment (PCNA). Through ten projects, the MDTF works on restoring damaged infrastructure & disrupted services, improving local and provincial service delivery, supporting livelihoods and developing skills and strengthening government institutions.

The contribution from the Netherlands will help further enhance MDTF results on the ground. Key achievements include the rehabilitation of a strategic provincial highway in Swat that has connected thousands to nearby services, strengthening of governance structures to facilitate the implementation of the PCNA programme and the establishment of the KP Judicial Academy and FATA Tribunal to address gaps in the judicial and legal systems. Furthermore, the MDTF has supported the government in the rehabilitation and upgrading of small and medium enterprises that will generate an estimated 8,000 jobs across KP and FATA.

Commenting on this contribution, H.E. H.G. Scheltema, Ambassador of the Kingdom of the Netherlands, said “My government is extremely pleased to contribute to this important World Bank programme. Peace, stability and security in KP, FATA and Baluchistan are all priorities in our development programme in Pakistan and should enhance regional stability. We look forward to continue our good cooperation with the World Bank and the Pakistani government in this area.

Rachid Benmessaoud, World Bank Country Director for Pakistan thanked the Government of Netherlands, for their continuing support to development in Pakistan and said, “The contribution of the Netherlands’ Government to the MDTF will give further impetus to the on-going efforts of the Government to provide sustainable development support to the disadvantaged and vulnerable communities in crisis-affected areas’.