Govt likely to seek donors' support for flood rehab

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FHM Humayan Kabir
The government is likely to make a formal appeal to the donors early next month to support its post-flood rehabilitation programme after apprising them of the infrastructure and economic losses sustained during the recent floods, official sources said.
In a meeting of the local consultative group (LCG) scheduled for October 9 next in the capital, the government will provide the donors with a flood impact assessment report, a source said and added, "We could not earlier request the donors to lend support to the specific affected sectors as the report could not be compiled."
Earlier, the government in the last LCG meeting on August 19 in Dhaka sought $150 million from the donors as budgetary support to ease the fiscal pressures following the devastating floods.
"The Planning Commission is now preparing a flood impact assessment report which is expected to be completed before the LCG meeting. On the basis of the report, we will seek donors' support to overcome the flood losses," a senior finance ministry official said.
The Secretary of the Economic Relations Division (ERD), M Aminul Islam Bhuiyan, told the FE: "First, the government would do its home-work on the losses and damages based on the flood impact assessment report which is now under preparation by the Planning Commission. If any support is required from the donors, the government will only then appeal the donors to help the country in the implementation of its post-flood rehabilitation programme."
The consecutive floods from July to September this year has caused widespread damage to dwellings, roads, bridges, embankments, agricultural crops and irrigation systems, water supply and sanitation, education, power as well as considerable losses to small and medium enterprises.
"Only the World Bank has so far confirmed providing US$75 million budgetary support credit to Bangladesh to overcome the economic shocks and minimising fiscal pressures caused by the recent floods," a senior official said adding, some relief materials and funds worth about $69 million had been received from some donor countries and agencies for conducting relief operation in the flood-hit areas.
Earlier on August 19 at the LCG meeting in Dhaka, the Disaster and Management Bureau made a presentation on the initial damage caused by flood while the Ministry of Finance informed the donors of the implications of flood on the budget implementation, policy issues and challenges.
According to finance ministry, budgetary allocation amounting to about 0.8 percent of GDP was transferred to flood rehabilitation work and as a result the budget deficit would increase to keep momentum of the planned activities.
The food safety-net budget was reallocated to meet the immediate relief requirements to the tune of Tk 21 billion and maintenance budget also reallocated (about Tk 21 billion) to cater to the immediate post-flood rehabilitation priorities, the ministry sources said.
Resources from less priority projects under the annual development programme (ADP) of current fiscal 2007-08 have also been diverted to meet the medium and long-term rehabilitation requirements, the sources noted.
Meanwhile, finance ministry sources informed that the donors provided around $500 million funds for post-flood rehabilitation works in Bangladesh after the devastating flood in July-August period of 2004.