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

In a significant setback, the World Bank has reduced the implementation status of a $245 million flood rehabilitation project in Balochistan to 'moderately unsatisfactory'. This downgrade, announced on August 12th, follows the government's decision to limit the number of households receiving resilient housing support. The project, known as Integrated Flood Resilience & Adaptation Project (IFRAP), had initially been rated 'moderately satisfactory'.

According to the World Bank's disclosure, over 74,000 households have received the first housing tranche, but the cap on beneficiary coverage and unresolved issues pose risks to the project's progress. The bank highlighted that while a dedicated director was appointed for irrigation, roads, and bridges, crucial deliverables like detailed designs and procurement have not been completed.

Under the early warning system and hydro-met services, implementation is showing signs of improvement. However, pending critical procurements, including the award of automatic weather stations, continue to delay the project. The bank has revised the risk ratings for various components, with 'Sector Strategies and Policies' and 'Technical Design of Project or Programme' now classified as 'High', up from 'Substantial' and 'Moderate' respectively.

The World Bank's mission also found the project non-compliant with environmental and social standards due to inadequate stakeholder engagement and disclosures. The government was required to submit a revised Project Implementation Manual (PIM) within 45 days, but this has not yet been done, leading to the 'Not Complied With' designation under the loan agreement.

The financing agreement stipulated annual work plans and budgets (AWPBs) for review and approval by the World Bank. While the FY2025-26 AWPBs were submitted, those for FY2026-27 for most project implementation units remain pending, potentially jeopardizing the project's eligibility for expenditures. Consequently, the project management and institutional strengthening rating has been downgraded to 'Moderately Unsatisfactory'.

The Ministry of Planning and Development affirmed its ongoing communication with the World Bank, emphasizing the government's commitment to ensuring that international financial support serves the needs of Balochistan's citizens. The World Bank's next review is scheduled for October.