ADB repurposes $50 million from NDRMF to help combat COVID-19

The Asian Development Bank (ADB) has repurposed $50 million from Pakistan's National Disaster Risk Management Fund (NDRMF) to support the government of Pakistan's preventive and response efforts to fight the outbreak of the novel coronavirus (COVID-19) in the country.

The funds, which form part of the ADB's series of support for Pakistan's fight against the COVID-19, will help procure medical equipment and supplies to strengthen hospitals, diagnostic laboratories, isolation units, and other medical facilities in the country, stated the bank in an official handout.

The funds include the reallocation of $30 million of previously approved but unutilised resources from the ADB to the NDRMF.

Following a request for emergency support from the government of Pakistan, the ADB swiftly processed a change in scope in its NDRMF project, enabling the repurposing and immediate use of these resources in the fight against the COVID-19.

In addition, the NDRMF has provided $20 million using capital gains from its endowment fund financed by the ADB to support the government's COVID-19 response.

These funds complement the financing approved on 2nd April by the World Bank under its Pandemic Response Effectiveness Project.

"The outbreak of COVID-19 is a profound challenge for Pakistan and we are committed to providing flexible and timely support to help manage this crisis," said ADB Country Director for Pakistan Xiaohong Yang.

"This funding will immediately support Pakistan's efforts to fight the pandemic and strengthen healthcare services for the poorest and most vulnerable groups-including the elderly, women, and children."

The Ministry of Planning has endorsed $350 million funding offered by the ADB in support for the COVID-19 emergency response and to address the socio-economic disruption associated with it.

The government has decided reallocation of non-utilised funds and to seek fresh funds from multilateral agencies to deploy towards coronavirus (COVID-19) prevention across the country.

Former minister for economic affairs Hammad Azhar had stated that the government was finalising an approximately $600 million emergency package with multilaterals for dealing with the COVID-19 outbreak.

It includes reallocations and fresh financing.

This will be in addition to local funding that is being made available.

The emergency funds from ADB supported NDRMF (approximately Rs7.5 billion) were being made available for the NDMA.

According to the official statement aside from the $50 million, the ADB is mobilising existing technical assistance-capacity building of disaster risk management institutions-to provide training for at least 5,000 doctors, nurses, and technical staff working on the front lines in intensive care facilities.

The grant will also provide additional technical capacity to the government for planning and coordinating its COVID-19 response.

The ADB last month approved $2.5 million in immediate response grant funding to help Pakistan purchase emergency medical supplies, personal protective equipment, diagnostic and laboratory supplies, and other equipment.

This consisted of $2 million from the ADB's Asia Pacific Disaster Response Fund, and $500,000 for procurement of supplies through the UNICEF.

The NDRMF was established in 2016 in partnership with the ADB to provide support for disaster-risk reduction and to invest in early warning systems and disaster preparedness projects in Pakistan.

The ADB provided the initial financing through a $200 million loan, while the Government of Australia contributed a $3.4 million grant.

In 2018, the Swiss Agency for Development provided a $1.5 million grant and technical assistance to support the NDRMF.

In January 2020, an additional $5 million was committed to the fund by the Government of Norway.

The ADB on 18th March announced an initial package of approximately $6.5 billion to address the immediate needs of its developing member countries as they respond to the COVID-19 pandemic.