Giving an indication that loans worth I 365 million might be available fo ■ the post flood rehabilitation p ogramme, representatives of diffe ent donor agencies yesterday pr< posed formation of a per-manen fund with government and donort ontributions to face natural disaste s.

"Wf at we have discussed in the meetin ; is setting up a fund with govern nent and donor contributions, o face natural disasters includ ng flood," World Bank

Country Director Xian Zhu told reporters after a meeting with government officials on the post flood rehabilitation programme.

"We should not have to come after each flood. We need a permanent mechanism to solve the problem of funding following natural disasters," said Xian Zhu, who is also chairing the donors' group under the banner of Local Consultative Group (LCG).

Local heads of the donor countries and multilateral development partners, including the World Bank, Asian Development Bank

(ADB), DFID of Ilie UK, and Japan were present at the third of the series of meetings on post flood rehabilitation.

Economic Relations Division (ERD) Secretary Atninul Islam Bhuiyan led the Bangladeshi side in the meeting.

The donors in the meeting gave an indication that loans worth $365 million might be available for the post flood rehabilitation programme. The fund will be generated by reallocating donors' contribution in different ongoing

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projects as well as by fresh funding.

"World Bank has already provided $75 million for budgetary support and we are expecting another $130 million from them,” the ERD secretary told the reporters.

He said the World Bank will reallocate its funding in different ongoing projects to facilitate the post flood rehabilitation cost

"The donors will send a proposal shortly with a list of projects from where they will shift money to the post flood rehabilitation programme." he said.

The ERD secretary also said the Asian Development Bank (ADB) hinted that it might provide $30 million for the post flood rehabilitation programme. The ADB and other donors will generate another fund of $130 million for the same purpose.

At the meeting, Planning Secretary Zafar Ahmed Chowdhury placed a report assessing the damage done by the recent flood and the funds required for the rehabilitation programme.

The report said a total ofTk 2,689 crore is necessary to meet the rehabilitation cost. Tk 1,120 crore of which is required for the local government and engineering department, Tk 690 crore for die roads and highways division. Tk 538 crore for the Water Development Board, Tk 38 crore for Bangladr^h Railway; Tk 50 crore for die education ministry, and Tk 253 crore for the agricultural ministry and other ministries.

Sources said the meeting also discussed the possible agenda of the forthcoming meeting on the Poverty Reduction Strategy Paper (PRSP) to be held in Dhaka on November 18 and 19, which is likely to be topped by the issues of gover-nanceand the powersector.