Washington DC Nov 19, 2009

1. Building Resilient Communities: Risk Management and Response to Natural Disasters through Social Funds and Community-Driven Development Operations Washington DC Nov 19, 2009

2. Vision • Ending poverty, restoring hope, securing the future Mission • Enhancing choices, increasing opportunities • Improving quality of life • Empowering the disadvantaged, especially women • Protecting the vulnerable & marginalized

3. Institutional Framework • Sponsored by GoP as – special purpose investment vehicle • Financed by 6 multilateral, bilateral, international institutions • Limited by Guarantee/ not for profit company • Oversight by Board of Directors • Commenced operations : April 2000 * World Bank, IFAD, USDA, USAid, Kfw, US Corporate Sector

4. Core Business • Wholesaling financial and non-financial services to eligible civil society and private sector entities through: • Debt financing for microcredit & enterprise development • Grant financing for small scale water, infrastructure, housing, health, education, social safety nets and training and social mobilization • Grant funding to support human and institutional capacity building for delivery of services • Bed Rock: Mobilising communities to form their own institutions

5. Outreach & Output • Outreach • 126 districts; 78 partners • 52,000 villages/ settlements • 152,000 community organizations • 19.3 million (credit) and 11.5 million (non-credit) beneficiaries • Output • Microcredit loans 3.22 million (46% female) • Water & Infrastructure projects 18,000 • Health facilities 57 • Education facilities 151 • Individuals trained 468,000 • Housing units in earthquake areas 120,000 September 2009

6. C A B D Funding Outflows Activity Disbursements Share (US$M) Lending for Credit & Enterprise 566 55% Grant funding for Water & Infrastructure Projects 106 Health and Education Projects 7 Relief/ Rehabilitation and Reconstruction Projects 270 Community Trainings 11 Social Mobilization 11 Sub Total 40540% Cost of delivery/operational assistance 45 4.4% Capacity building / Training 7 0.6% Total + + + = 1,023 100% A B C D Figures rounded off , cumulative September 30, 2009

7. Spending on Partner Organizations 4.5% <1% PPAF expenses 95% Direct Services to the poor Resource Deployment

8. Disasters Managed • Slow-onset: • Drought • Rapid-onset: • Cyclone and floods • Earthquake • Internal Displacement

9. Drought Mitigation and Preparedness • A DMPP comprises number of sub-projects necessary to mitigate effects of an existing drought as well as preparing communities for future ones • Donors: World Bank and United States Department for Agriculture (USDA)

10. Cyclone/ Flood • Sindh Coastal Areas • World Bank Supported 343 sub-projects with financial outlay of Rs. 165 m

11. Earthquake • Relief Assistance: • 150,000 CGI sheets above snowline • 500 truckloads of relief goods • 50,000 liters water • Reconstruction: • Increased CO membership from 1700 to 30,000 • Community based rehabilitation for PWDs

12. Underlying Principles • Relief Assistance: • 150,000 CGI sheets above snowline • 500 truckloads of relief goods • 50,000 liters water • Reconstruction: • Increased CO membership from 1700 to 30,000 • Community based rehabilitation for PWDs • MIS • Operations and NOT MNEs • Update: • Software [as and when policy changed] • Data update [Weekly] • Keep the end in view (accountability: people tend to forget emergency) • Remaining relevant: Weekly issues report • Vulnerable: special attention • Disbursement linked to data • Owner-driven/ In-situ construction

13. Damage Assessment • Allocated 34 UCs (16 AJK and 18 NWFP) • Initial donor commitment for 34,000 housing units • First installment lists provided by 19 and 37 Divs • Door to door damage assessment (carpet coverage) revealed 122,332 houses • Mandated to disburse housing cash grant in three tranches (US $ 1200, 415, 830) for mobilisation, compliant plinth and compliant roof band, based on inspections

14. Implementation Structure • 6 Pos (3 in each region) • 101 Social Mobilisation (SM) Teams • Each team comprised 1 Civil Engineer, 1 Social Organiser (Male) and 1 Social Organsier (Female: in 60% SMTs) [SOs are Masters degree holder] • 11 Supervisory Structures • 1 Team Leader (mostly civil engineers) • 1 Field Engineer (civil engineers) • 2 Social Organisers • 1 Accountant

15. Monitoring and Controls • Started Designing M&E System on Dec 5, 2005 • MIS (contains 6 Pics, 3 GPS readings) • Updated every week and 100% data entered (acceptance of forms subject to soft copies) • 10% stratified sample as pre-disbursement ground verification

16. 2nd Installment Payment Process DA forms with Updated MIS from POs to PPAF RCO General Checking No T-5 T-5 T-5 DuplicateCases? Docs complete? Columns filled? A-1 A-1 X-2 A-1 A-1 X-2 A-1 MIS Complete? Tallied? Yes K-7 K-7 Tally with Army List Return to PO N End Y Apply Filters N-1 N-1 S. No on DAF? T-1 T-1 N Field Inv Y N Clear N Y Y Trigger complete cases for disbursements Categorize as G-I, II or III Y Withhold N N N Doubts Y Check and Send Advice Note to PO for Disbursements Y

17. Construction Quality Monitoring Receive Forms from POs Select 10% Sample Form Complete? Carryout physical revf. N 50% to 74%? 90% + compliance? 75% to 89%? N N N Y Check 100% Database Complete? A-1 Y Y Y N Increase sample to 50% Increase sample to 25% Process for Disbursement Y Pic and GPS? N Send clear cases to A-1 Return Form to POs Provide Guidance on Compliance

18. Implementation Methodology • Every team equipped with a GPS, laptop and a digital camera • Teams directed to stay in village unless they completed DA • Principles: • Discipline • Standardization • No Discretion (follow rules and regulations laid down by ERRA) • 32 Standardised Training facilities established for using winters

19. Vulnerable • Seven categories • Widows having no male child over the age of 18 • Women with disabled husbands • Divorced / abandoned women / unmarried women who have crossed marriageable age and dependent on others • Persons With Disabilities (physically or mentally) • Unaccompanied minors i.e. orphans • Unaccompanied elders, over the age of 60 • Landless due to land sliding / red zones / fault line area

20. Community Involvement • Identification during DA • CAP for vulnerable • Weekly reporting • CO formation (membership increased from 17,00 to 30,000) • Training and awareness by CO • Collective procurement resulting cost saving up to 21% • COs providing TA at community level

21. Lessons/ may be questions? • Take your F&A and Proc persons to field visits • Nature’s process is evolution; go back to basics (conventional wisdom) • Do not try to control market mechanisms • Best relief is ‘relief from relief’ ASAP; pl do not create dependencies • Life will never be to pre-disaster level; either it will be good or bad

22. Lessons/ may be questions? • EEE • Law is will of the people • Best people to enforce are the people themselves may be through local governments: • But local governments do not have capacities • We look at political side (it changes) • Official side (it is forgotten but it ensures continuity) • CB: Physical Resources, Systems, Human willingness to implement, Institutional value system