The FINANCIAL — The Government of Nepal and the Asian Development Bank (ADB) on April 29 signed a $3 million grant agreement to finance relief efforts in the country following Saturday’s 7.8 magnitude earthquake.
The agreement was signed by Suman Sharma, Secretary in Nepal’s Ministry of Finance, and Kenichi Yokoyama, ADB Country Director in Nepal, according to ADB.
“The funds must be urgently used to address the most immediate needs, including the delivery of rescue and relief goods and materials to the badly shattered remote rural communities in the worst affected districts, and for improving sanitation in the relief camps in urban areas where many Nepalis are spending night after night,” said Mr. Yokoyama. “Sanitation conditions in these camps are extremely alarming, posing high risk of outbreaks of infectious diseases.”
ADB announced the grant from its Asia Pacific Disaster Response Fund on Monday. The fund can be used to meet immediate humanitarian needs following disasters, such as for tents, medical assistance, food, and drinking water. This will be followed by up to $200 million in additional resources for projects in the first phase of rehabilitation in the country.
Thousands have died following the earthquake and hundreds of thousands are unable to return home because buildings have collapsed or transport systems or roads are unusable. Over two-thirds of Nepal’s 75 districts are thought to have been affected by the earthquake.
ADB has also set up a Nepal Earthquake Response Team that will, along with UN agencies and other development partners, assess the damage and recovery needs for reconstruction and rehabilitation. Based on this assessment, and in addition to the up to $200 million of new resources, ADB will consider reallocating existing resources.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.