Islamabad: The World Bank’s $213 million Integrated Flood Resilience and Adaptation Project (IFRAP) is gearing up for restructuring to promote rapid disbursement of funds for resilient housing reconstruction and restoration efforts in Pakistan.
Official documents state that the IFRAP, signed on July 3, 2023, aims to revive and improve the livelihoods of communities affected by the devastating floods of 2022, while strengthening their ability to withstand severe floods in the future. To date, the project has spent approximately $22.38 million, with a closing date set for December 31, 2028.
The project aims to restore vital services such as housing, water, sanitation, transportation, agriculture and irrigation, while laying the foundation for long-term flood resilience through improved institutional and information frameworks.
The International Refugee Rehabilitation Assistance Program (IFRAP) consists of six components, including an emergency response component that focuses on rehabilitation and resilience in flood-affected areas, especially in Balochistan. The Ministry of Planning, Development and Special Initiatives (MoPDSI) serves as the implementing body, supported by the Federal Project Management Unit (FPMU) based in Islamabad, with a significant portion of the implementation taking place in Balochistan.
To simplify project implementation, the proposed restructuring includes amendments to the withdrawal categories in Section III of Schedule II to the Financing Agreement and revisions to the Disbursement and Financing Instruction Letter (DFIL). This would facilitate the creation of a dedicated account for the activities of the Housing Reconstruction Unit.
Integrating the Human Rights Unit into the IFRAP framework will necessitate the opening of a separate dedicated account, which will require interim unaudited financial reports (IUFR) and annual financial statements. A dedicated Financial Management Specialist (FMS) will oversee the functions of the Human Rights Unit, providing oversight and ensuring proper documentation of expenditures.
In addition, a new Human Rights Unit was established in Quetta, to serve as an extension of the Housing Management and Planning Unit to implement Component 3, which focuses on housing reconstruction and restoration. The Human Rights Unit will manage and monitor the performance of implementing partners who are in the final selection stages.
The Human Rights Unit will also collect Damage Assessment and Verification (DAV) data from implementing partners, conduct spot inspections, and supervise technical inspections necessary to release housing reconstruction support grants. Central bank accounts will be established in commercial banks chosen by beneficiaries to facilitate direct transfers of housing reconstruction grants, eliminating the need for third party involvement.
This restructuring aims to create a robust financial management system specifically dedicated to supporting housing, and is expected to include more than half a million micro-transactions.
Currently, DFIL restricts the creation of a separate account dedicated to the HRU, requiring all payments to go through the FPMU. This centralized approach may lead to inefficiency and delays in distributing funds.
Amending the withdrawal categories and updating the DFIL will give the HRU direct access to the funds, resulting in a simpler financial management system. This change will enable the HRU to operate more independently, allowing for faster responses to project requirements and enhancing the overall efficiency of Component 3 implementation. The proposed amendments will align the financial management structure with the operational needs of the HRU.