The Board of Directors of the AsianDevelopment Bank (ADB) Thursday approved the setting up of a multi-donor Asian Tsunami Fund, with ADB making its own initial contribution of 600 million US dollars to deliver prompt emergencyfunding to tsunami-affected countries.

The money was pledged by ADB last month following a UN-organized tsunami summit in Jakarta, Indonesia.

The Fund will pool and deliver grants for emergency technical assistance and investment projects to support reconstruction and rehabilitation in India, Indonesia, the Maldives, Sri Lanka, and Thailand.

"We see this as a mechanism to attract funds from multiple donors for a structured, systematic and transparent flow of funds to tsunami affected countries, while upholding the strongest standards of governance," says Philip Erquiaga, Principal Directorof ADB's Office of Co-financing Operations.

ADB will accept contributions to the Fund from bilateral, multilateral, and individual sources, including companies and foundations.

The money will be used exclusively for prompt restoration of services to affected people. Possible sectors could include publicservices such as water supply and sanitation, electricity, and communications; infrastructure such as roads, railways, and ports;health and education services; agriculture and fisheries; housing;restoring livelihoods; and containment of environmental damage.

ADB is working with governments to expeditiously deliver the assistance packages at country level. Resources from the Fund willbe made available to the tsunami-affected countries based on the outcomes of needs assessment activities that ADB has been carryingout jointly with the World Bank, UN system, and other agencies.

The Fund takes ADB's total financial commitment on tsunami assistance to 775 million US dollars, which includes 175 million US dollars that can be redirected from ongoing projects and programs for the tsunami effort.

To coordinate assistance to tsunami affected countries, ADB will host a high-level meeting on March 18. The meeting will take stock of recovery achievements and pledges of support, and seek toreach a common understanding of the major considerations in delivering effective rehabilitation and reconstruction programs over the next four to five years.

Ministers from the affected countries, donor countries, and senior representatives from the United Nations, the World Bank andother multilateral organizations have been invited to attend.

Source: Xinhua