Pakistan, France ink 40m Euro agreement for quake-hit areas
By Hina Kiyani

ISLAMABAD—Pakistan and France signed a financing agreement of Euro 40 millions here Wednesday to support rural housing reconstruction sector of the earthquake-affected areas.
The financing agreement was signed by Secretary Economic Affairs Division (EAD) M. Akram Malik on behalf of Pakistan and Ambassador of France to Pakistan Regis de BELENET on behalf of the French Government.
State Minister for EAD Hina Rabbani Khar and Chairman EarthquakeReconstruction and Rehabilitation Authority (ERRA) Altaf Saleem were also present on the occasion.
Hina Rabbani Khar said this agreement is in the context of the pledge made by the French government during the International Donor Conference held on November 19, 2005 in Islamabad for 80 million Euro ($ 94 million) as soft loan for reconstruction and rehabilitation of the earthquake affected areas.
She said that half of this pledge-40 million Euro ($ 47 million) will be utilized in the rural housing sector and remaining half will be used to fund the environment sector (water and sanitation).
The French soft loan dedicated to the rural housing sector will be implemented through the French Overseas Development Assistance financial institution-the French Development Agency.
The loan will be repayable in the 20 years including 7 years grace period.
The 40 million Euro housing component of the project focuses on the reconstruction and rehabilitation of individual houses in accordance with para-seismic standards given by ERRA.
These funds will be retroceded in the form of compensation to private persons to finance the reconstruction of their houses A compensation of 150,000 PKR per house proposed for totally destroyedhouse will be paid to the beneficiary in three installments based on the progress and quality of rebuilding work.
For partially damaged house, a compensation of 50,000 PKR per house will be disbursed as a single installment. The implementing agency ERRA will be in-charge of carrying out the project.
This rural housing reconstruction project will have three components also including the compensation for reconstruction of destroyed or damaged houses on the basis of general scheme adopted by the Pakistani authorities.