Balochistan flood project ‘downgraded’ by World Bank over housing cap

The World Bank has downgraded the progress on a $245 million flood rehabilitation project in Balochistan to 'moderately unsatisfactory', primarily due to the government's decision to cap beneficiary coverage for resilient housing. The project, known as the Integrated Flood Resilience & Adaptation Project (IFRAP), was initially rated 'moderately satisfactory' but has since been downgraded just six months after the downgrade.

Over 74,000 households have received initial housing support, but the project faces challenges due to the cap on beneficiaries, unresolved grievances, and communication issues. The World Bank's country director expressed concern over the decision to limit housing support to 62,966 households and subsidy support to 97,000 people.

Under the project's components, irrigation, roads, and bridges have yet to achieve all three output indicators, while the early warning system and hydro-met services are improving with recent appointments. However, the implementation of resilient housing, which is crucial for the project's development objective, has been revised to 'High' risk from 'Substantial'.

The project is currently non-compliant with environmental and social standards, and the revised Project Implementation Manual has not been submitted. The World Bank's financing agreement requires annual work plans and budgets, which are pending for FY2026-27. The project management and institutional strengthening rating has been downgraded to 'Moderately Unsatisfactory', and the next review mission is planned for October.