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

Islamabad: The Danish Government and the World Bank signed an agreement Friday regarding Denmark’s 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. This brings the total contribution by the Danish Government to USD 12.1 million (Denmark contributed USD 7.1 million in 2010).

KP, FATA and Balochistan MDTF was established in 2010 to respond to the 2009 crisis that displaced an estimated 2 million people. As one of the financing instruments to support the rehabilitation effort, the MDTF works on reconstruction, rehabilitation, reforms and other interventions needed to build state-citizen trust and create conditions for sustainable development.

The MDTF is administered by the World Bank and supported by eleven donors – Australia, Denmark, European Union, Finland, Germany, Italy, Netherlands, Sweden, Turkey, UK, and the USA. With the contribution from Denmark, the MDTF will have commitments totaling USD 164.6 million.

The MDTF works through provincial governments of KP and Balochistan and the FATA Secretariat on needs prioritized by them and based on the framework provided in the Post Crisis Needs Assessment (PCNA). Through eleven projects, the MDTF supports local services, growth and job creation and works on policy reform and governance.

The contribution from Denmark will help further enhance MDTF results on the ground. Key achievements to date include the rehabilitation of the Swat provincial highway, strengthening of governance structures to facilitate the implementation of the PCNA programme and institutional support to KP Judicial Academy, FATA Tribunal and the Anti-Corruption Hotline in FATA to address gaps in the judicial and legal systems and provide a platform for citizens to communicate their grievances.

Furthermore, the MDTF has supported the government in the rehabilitation and upgrading of 610 small and medium enterprises. A total 150 solar lights have been installed in Khar, Bajaur, while 600 off-grid households have received solar lamps in FATA.

Commenting on this contribution, the Ambassador of Denmark, H.E. Jesper Møller Sørensen, said “Denmark has been an active member of the Multi Donor Trust Fund (MDTF) since the very beginning in 2010, being one of the first donor to pledge to the fund.

The Fund has been a good and coordinated way to support Governments of Khyber Pakhtunkhwa, Balochistan and the FATA Secretariat in their efforts to build up their communities and see them prosper.

The MDTF is also an important resource mobilization mechanism to an area, which has been affected the most by the militancy crisis. Another key aspect of this program is that the MDTF program ensures that the local communities are engaged and empowered to make decisions that will promote peace, stability and economic growth in their areas in joint partnership with the local government.

We are happy to continue to be associated with this excellent partnership that will benefit the people of KPK, Balochistan and FATA in years to come.

Reynold Duncan, World Bank Country Director (Acting In charge) for Pakistan thanked the Government of Denmark, for their continuing support to development in Pakistan and said, “Denmark’s contribution to the MDTF will support the Governments of KP, FATA and Balochistan to further broaden their efforts for the rehabilitation of communities in the crisis-affected areas’