The Nepal Earthquake Housing Reconstruction Program Multi-Donor Trust Fund (MDTF) was established to support the Government of Nepal’s housing reconstruction efforts in the wake of the massive earthquakes in April and May of 2015.
The Multi-Donor Trust Fund is administered by the World Bank, and was initially established with the support of the US Agency for International Development (USAID), the Swiss Agency for Development and Cooperation (SDC), and the Government of Canada, Following the close of the MDTF’s first reporting period, the United Kingdom’s Department for International Development (DFID) joined the MDTF in November 2016.
The majority of funds raised under the MDTF are going directly towards co-financing the World Bank’s Earthquake Housing Reconstruction Project (EHRP), which will contribute to the restoration of around 240,000 of the total housing reconstruction needs in Nepal, while providing the technical assistance for the entire government housing reconstruction program.
The MDTF partners are working closely with the Japan International Cooperation Agency (JICA) and Government of India (GOI), who are also a direct contributor to the government’s housing reconstruction program. The MDTF team also works with the United Nations, other donors, and local and international NGOs.
The Nepal Earthquake Housing Reconstruction Program Multi-Donor Trust Fund (MDTF) has a flexible governance structure, allowing for adjustments based on changing needs on the ground.
The advantages of this multi-donor approach include, among others:
- Reduced transaction costs for the Government of Nepal and donors by working through a single funding facility;
- Increased harmonization of reconstruction by pooling resources in support of the Government’s Housing Reconstruction Plan;
- Increased efficiency through reduced duplication of efforts among partners; and
- Enhanced transparency and accountability
The objective of the World Bank’s Earthquake Housing Reconstruction Project is “to restore affected houses with multi-hazard resistant core housing units in targeted areas and to enhance Government’s ability to improve long-term disaster resilience”. EHRP so far has financed USD 700million through concessional IDA credits to Government of Nepal, which supports housing grant of Nepalese Rupees, 300,000 to approximately 240,000 eligible beneficiaries to build multi-hazard resistant houses. The EHRP has adopted owner-driven housing reconstruction approach that is premised on the homeowners constructing earthquake-resistant houses under continued socio-technical facilitation provided by the government and development partners. This approach aims at improving long-term resilience through a culture of safer and sustainable housing. Safer construction is ensured by providing the housing grants in three tranches where second and third tranche are contingent upon satisfactory compliance to construction guidelines approved by the National Reconstruction Authority (NRA).