KARACHI: The Sindh cabinet on Wednesday approved Rs50 billion for the construction of damaged houses for flood-affected people, who would be given first installment of Rs50,000 each to start construction.

Chief Minister Syed Murad Ali Shah, who presided over the meeting, decided that the remaining amount of Rs250,000 would be transferred to their bank accounts to complete the house when initial construction would reach the plinth level.

Briefing journalists, Information Minister Sharjeel Inam Memon said that the cabinet had approved Rs50bn for the housing project to be used for “Retrospective Financing” for spending the amount on fully damaged houses for the time being so that project may start disbursement till the World Bank financing was available.

He said that the cabinet decided to engage non-governmental organisations so that the entire process could be made transparent.

It may be noted that 1.7 million houses have been damaged by the flood and the construction of all the damaged houses would cost Rs160bn, of them the World Bank has pledged Rs110bn. The remaining amount is being arranged by the provincial government from the federal government and through other sources.

The provincial government had initially decided to construct the damaged houses through a company, but later opted to disburse the compensation amount to the affected people so that they would construct their respective houses as per their design and viability.

Chief Minister’s Adviser on Agriculture Manzoor Wassan told the cabinet that 3.6 million acres of standing crops had been damaged in the recent floods and the farmers had suffered losses worth Rs421bn.

He said that it was agreed to begin with the provision of free wheat seed for which Rs13.5bn was required.

He added that the provincial government had provided Rs8.39bn, while the federal government was contributing Rs4.7bn.

Talking about the mechanism to reimburse the funds of Rs5,000 per acre, Mr Wassan said that taluka and district committees were formed and a provincial committee was established at the agriculture department. Energy Minister Imtiaz Shaikh told the cabinet that the provincial government was continuously taking necessary measures for the electrification of villages.

The main criteria of the selection of villages for electrification include the villages having a population of 100 and above; the villages having a maximum of four kilometres from existing 11KV line and preference would be given to villages within half kilometre distance from high tension line.

The cabinet was told that the Hyderabad Electric Supply Company, Sukkur Electric Supply Company and K-Electric had been given funds for electrification of thousands of villages in the province.