13th CSFSR









13th Report


Critical Humanitarian Funding Situation
Due to the lack of well coordinated efforts in Coordination, Mobilization and Allocation of the relief funds by the Government, for flood affected peoples.





Table of Contents






Data Sources

Primary Data
1.     Feedback from PACF on basis of their field visits.
2.     Charter of demands through Consultations at District level of all concerned stakeholders.
3.     Advocacy Meetings with Government Officials and humanitarian partners/clusters
4.     Focus Group Discussions with Community
5.     Media Visits to hot spots
6.     PDI Humanitarian Complaints mechanism

Secondary Data
1.     Budget 2010-2011.
2.     PDM details of the relief funds and expenditures.
3.     Multi sector needs assessment (MSNA) by UNOCHA 
4.     Media references 
5.     Situation reports by different humanitarian partners
6.     TSSU reports
7.     PDMA/NDMA summaries and reports
8.     Sphere standards, HAP standards and Hyogo Framework for Action.
 


Back Ground of the Situation:

Flood 2010 yet 20% covered

The unprecedented monsoon floods in July-August 2010 caused extensive human suffering and damage to social and economic infrastructure across Pakistan. The floods affected 20 million persons, damaged 1.6 million homes, rendering 7.3 million people homeless. Floods inflicted heavy losses to agriculture and extensive damage to roads, bridges, irrigation, railways, electricity, gas lines and education, health, water and sanitation facilities. Damage and Needs Assessment (DNA) survey, conducted by World Bank and ADB, estimated damage at Rs 855 billion. The least cost reconstruction activities require Rs 613 billion (Rs 578 billion as per DNA estimates) out of which public sector infrastructure needs have been estimated at Rs 323 billion.
Pakistan was facing economic and budgetary problems before the floods and hence was pursuing an IMF stabilization programme since November 2008. The floods further deteriorated the economic outlook and posed a great challenge to public finance. In the financial year (2010-11), GDP and inflation was to miss the targets.  It was estimated in National Reconstruction Plan flood 2010 that GDP would grow by 2.8 percent and inflation would increase by 15 percent. Tax revenue was likely to fall with the weakening of economic activity, while the floods necessitated huge spending on rescue, relief and rehabilitation needs and reconstruction during 2010-11 and beyond.
Reconstruction work put deleterious effect on the budget. Government was adjusting the fiscal framework to accommodate additional spending. Resources were being shifted from low-priority current and development spending and additional resources were to be mobilized through restructuring of tax structure and through tariff rationalization of the energy sector. Given the magnitude of reconstruction needs, government was also exploring all possible sources of external finance, especially for citizen damage compensation.
The National Flood Reconstruction Plan was formulated with inputs from National Oversight Disaster Management Council (NODMC) to provide policy direction for a plan of action and framework for better implementation of projects.

Damage and Needs Assessments (DNA) Report prepared by the World Bank – ADB estimated an overall loss of Rs 855 billion ($10.0 billion). Of the total loss, damages due to agriculture, housing and transport & communication infrastructure roughly account for about 50%, 16% and 13% respectively. The Report also presented three reconstruction options. Option 1, costing Rs 578 billion ($6.8 billion) relates to replacement of the lost infrastructure and restoration of livelihood, trade and business activities; Option 2, costing Rs 630 billion ($7.4 billion) represents build back better; whereas Option 3, costing Rs 758 billion ($8.9 billion) reflects building back better/safer with special emphasis on housing, irrigation and agriculture infrastructure and for future flood protection. However, in view of the current financial constraint being faced by

Pakistan, reconstruction effort is restricted to Option 1, the least costly. Of the total flood losses of Rs 855 billion, Sindh was the worst affected (44%), followed by Punjab (26%), KPK (12%) and Federal Areas/Government (11%). More than 50% of total damages were in agriculture sector, wherein crops account for 89%.

Total funds requirement for reconstruction was estimated at Rs 613 billion. This figure was higher by Rs 35 billion compared to the DNA’s estimate of Rs 578 billion because of housing sector. Government under Citizens’ Damage Compensation scheme intended to disburse Rs
161 billion (Rs 100,000 per household to Rs 1.61 million household) where as DNA estimates compensation at Rs 126 billion (Rs 100,000 each for 913,307 completely damaged and Rs
50,000 each for 697,878 partially damaged houses). total estimated reconstruction cost for replacement of physical and strengthening of soft infrastructure was estimated at Rs 323 billion (US$ 3.8 billion) to be financed from the development budget.
Humanitarian world with consent of the government in the month of September 2010 prepared flood relief and early recovery response Plan for Pakistan. 97 US dollars were required to benefit the flood affected victim in wash, health, shelter agriculture, food, protection, education, nutrition and Community Restoration.


Target beneficiaries
WASH 14 million
Health 11 million
Shelter 8.8 million
Agriculture 7 million
Food 6.2 million
Protection 5 million
Education 1.3 million
Nutrition 460,000
Community Restoration (varies by sub-sector; average of 55% of people in need)
Total funding requested
Funding request per beneficiary
$1,938,207,278
$97

Financial Response plan August 2010-2011

The response to the floods till august 2010 to August 2011 was critical and needed further interventions and in the mean time emergency through rain flood affected twice to Pakistan and majorly Sindh. A summary of the key findings of the response status is provided below

Reported Access to Services Since the Flood
Service
Better
Same
Worse
Water
10.3%
50.2%
39.5%
Sanitation/Toilets
4.1%
44.7%
51.3%
Healthcare Access
18.4%
42.7%
38.9%
Healthcare Quality
16.8%
42.3%
40.9%
Pregnancy Services
14.3%
51.7%
34.0%
Education Access
9.5%
64.2%
26.3%
Education Quality
8.1%
61.9%
30.0%
Food Access
7.6%
21.2%
71.2%
Food Quality
2.7%
22.0%
75.3%
Household Income
1.0%
11.0%
88.0%

The economic losses during the supper floods 2010 were estimated by the Sindh Government at Rs 454 Billion. Agriculture and Housing sector were major affectees with losses of Rs 136 Billion and Rs 134 Billion respectively. With regard to the expenses made in response to the super flood 2010 the total Rs. 20 billion was spent an amount that was not budgeted on flood related expenses by the Sindh Government with other humanitarian funding of 1,378,399,110 US dollars. The gape of the resources required and losses sustained was critical and  30% gap of humanitarian funding and 95% gap by government funding was observed in response to the relief and rehabilitation process against flood 2010.
It was critical to found that humanitarian funding by international community and government could only rehabilitate 20% damages and losses of flood 2010. 

Rain Flood 2011

Heavy rains during August and September 2011 caused renewed and devastating flooding in southern and northern part of Sindh and Balochistan provinces. The subsequent breach in drainage canal at several locations resulted in submerging vast areas of land. The flood impacted 22 districts in Sindh and 11 districts in Balochistan with heavy damages to public and private assets.

The NDMA and PDMA figures initially estimated that some 9.18 million people were affected by the flooding. Estimates on the number of displaced people differed depending on the source and a rapid initial assessment counted about 5.8 million affected populations in the worst hit areas. In Sindh 13 districts and in Balochistan 5 districts were notified as calamity hit.

Highlights

The total number of affected people in the notified calamity hit areas is estimated at 5.2 million.  The brunt of the impact of the flood was on housing and agricultural crops: 34 percent of households lost their houses and 60 percent of the houses were partially damaged. The average paddy crop loss is estimated at 77 percent and cotton production lost 92 percent for those who cultivated the crops.
40 percent of households reported that their main economic activity has been discontinued. An additional 48 percent reported that their economic activities were disrupted by the flood. On average a household lost 202,550 rupees in income (not taking into account asset losses). This adds up to a total estimated financial income loss between one trillion to 1.2 trillion rupees.
A total number of households facing severe food insecurity are estimated at 2.5 million people of whom almost half a million are facing hunger.
Chief Economist Office is underway to finalise the needs assessments of the Sindh. Yet no any figure has been finalized in context of the reconstruction and response plan for the rain flood 2011. 1.2 trillion rupees have been estimated the income loss.

Current Situation

Thousands remain displaced in flood-affected areas and many have returned home to little or nothing. Further funding is needed to assist flood-affected families .Critical humanitarian needs remain unmet flood affected peoples over 5 million people in seventeen districts of the Sindh. Over 90 per cent of floodwater has reportedly receded from affected areas, but more than 10,000 families (55,953 people) still live in temporary settlements in Sindh Province. Land remains under water in many areas, hindering the return of displaced families.

The initial rapid response plan for the 2011 floods launched in September 2011 is currently funded at 47 per cent, or US$168 million. The Government of Pakistan and humanitarian partners are yet finalizing a framework to address early recovery needs in flood-affected areas. People remain at risk and further funding is needed to help them restore their livelihoods.
The sudden end of the relief services and delayed response in early recovery initiatives have reported due to the lack of funding and timely planning.
Relief department government of Sindh is without funding by government where as disaster management authorities at districts have been reported to suffer 200 million losses. NDMA has requested and demanded from federal government Rs 20 billion for disaster preparedness. It was found that disaster management authorities are suffering lack of the funding for disaster preparedness.
As per report of the PDMA Government has spent Rs 2.38 billion against the need of 20 billion suffering 9.62 billion gaps (90%) during the relief services where as 53% gap of humanitarian funding has added fuel to fire.
Statement showing the allocation of funds % expenditures by PDMA till 15th February 2011 against the relief services by the Provincial government of the Sindh and Pakistan.

Utilization details of the funds received from financial division and provincial disaster management fund.
S#
Particulars
Expenditures
1
Dry Ration
1,334,652,381
2
Drinking Water
7,381,487
3
Tents
616,993,225
4
Plastic Sheets
201,698,225
5
Mosquito net
17,738,296
6
Transportation
25,992,205
7
Miscellaneous
59,931,223
Total
2,281,329,113
Total in Millions
2,281.33

District administrations (DCs) two month before DCOs were the responsible through their secretariat to distribute the above items to the flood affected peoples.               
Research and Advocacy department found that eight million amount which was supposed for the rehabilitation of flood affected peoples under annual development program 2011-2012 was allocated to MPAs to do work in their constituencies.  This money was allocated for the rehabilitation of two hundreds villages and construction of forty thousand damaged houses with facilities as health and education.
It was also found that there was a fund of Rs.12 Billions as Sindh Social Relief Fund [SSRF] with Sindh Fund Management House [SFMH] located in Finance Department, Government of Sindh. This amount was reserved for the purpose of responding natural disasters and emergencies but unfortunately, it had not been utilized in 2010 and 2011. Currently this amount has been transferred to federal government program to distribute in unemployed youths at the rate of three lacks to the thirty five thousands beneficiaries. Logic behind the officially end of the relief phase on 31st December 2011 and liabilities of 200 million rupees with flood affected districts was beyond the understanding keeping in view the diversion of the resources and delayed early recovery phase yet have not been started.  

 Community Observations

Research and Advocacy secretariat conducted focus group discussions and consultations workshops in highly hit eight districts of the Sindh. The structured interviews were also conducted form the key respondents of the flood affected areas.

During the consultation workshops at district level social activists, flood affected communities and other civil society stakeholders showed their grave concerns over bed governance at district level. 90% Flood affected peoples blamed district administrations for corruption in wheat distribution and in other services by showing political polarization and favoritism. Flood affected peoples denied the claim of the government to support the flood affected peoples in providing the relief services to the flood affected peoples.

During the FGDs in villages Jam Nawaz Ali, Husaain Bux Mari, Sindhri, Ibrahim and village jhando Mari, chamber Satrio at Sanghar, Mirpurkhas and Tando Allahyar and Umerkot Districts community was complaining the denial of the relief services and showed grave concern over the mall practices by district administrations.

The flood affected peoples were not inclined to believe that government can work without corruption and demanded the international community to help with the transparent systems.    
Flood affected peoples were asking for strengthening the accountability process at district level to assure the smooth delivery of the relief funds for flood affected peoples.                    

Recommendations


v  Government should prepare Law on Compensation of Civilian Victims on Natural disaster.
v  Government should put expenditures of relief and recovery services executed by District administrations with breakups on PDM website.
v  Peoples’ participation and decentralization in relief and recovery services devoid of the political interests and favoritism should be assured.
v  Government should keep money for disaster preparedness and emergency so that any untoward disaster can be responded timely keeping in view the prediction of metrological department for upcoming heavy monsoon threats.
v  Government should try to minimize the trust deficit so that resource mobilization can be made by pooling the international community with effective coordination.
v  Government should take opportunity to rebuild the sustainable basic physical infrastructure keeping in view the disaster risk reduction component while responding to the building shelters, schools, basic health facilities and physical infrastructure development.
v  Government should focus on the approach of development by programs rather than development by schemes and idea of the rural development should be incorporated into rehabilitation of process for the flood affected peoples.
v  Non development expenditures should be curtailed and budget should be increased and allocated for the development of the flood affected peoples.
v  It was to be assured that flood affected peoples are getting relief services with dignity
v  Comprehensive planning through well balanced data of needs assessment and appropriation of the funds should be made to respond the disaster.

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