The Bank has started discussions with Pakistan government mainly focusing on reconstruction priority of the infrastructure destroyed.
This $57 million concessional Asian Development Fund project was approved on December 21 last year aimed at improving the living conditions, quality of life, and economic prospects in eight districts of AJK by rehabilitating and reconstructing essential physical and social infrastructure.
However, the October earthquake compelled the Bank to restructure its priorities. It is expected that the Bank would use the fund on reconstruction and rehabilitation of AJK.
"Under such a stressful situation where the government has lost a number of staff, and with a lot of urgent work regarding the reconstruction of earthquake stricken areas, there appears to be inadequate capacity for the AJK government to implement the multi-sector project," said Kunio Senga, Director General for ADB's South Asia Department.
"The best way to help the government and the people of AJK is to facilitate the early commencement of the reconstruction process. ADB can take a lead in this process by using the loan proceeds of the multi-sector project and start with the reconstruction of a civil hospital, schools and colleges in Muzaffarabad."