Earthquake Reconstruction and Rehabilitation Authority (Erra) requires Rs 50 billion for fiscal year (2012-13) for working on the projects speedily. Talking to APP, Director Planning Erra, Brigadier Pervez H Niazi said, "We are facing a loss of 30 to 40 percent per year due to inflation and vandalism as if the funding is not provided in time construction cost would increase".
He said the authority is facing problems due to funding constraints, adding that during the last fiscal year (2010-11) they have demanded Rs 30bn for its projects but only Rs two billion were approved in the annual budget. However, he said the authority has received Rs 10 to 12 bln through supplementary grants.
This year they have demanded 51bn but only 10bn were approved out of which Rs five billion was supposed to be given to the authority till December 2011, but they have so far received only 1.3 billion. He further informed that they also need Rs 40bn for the pending targets of the current year to clear their backlog. He informed they have to pay Rs two billion as construction liabilities for which constructors are pressing hard but they do not have enough financial resources for mitigating their demands.
If the cash flow is smooth, the projects of the authority would be completed in time but these issues affect their progress badly, he commented. He informed that the authority has achieved its annual targets till 2009 as there was no funding problem but after that due to other disasters and financial conditions of the country their funds were diverted to other projects. Director Erra said the authority has the capacity to do reconstruction and rehabilitation work in any earthquake hit area.
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