Muzaffarabad city the capital of AJK, is located close to the epicenter of the earthquake. Government buildings in the area were heavily damaged mainly in the northern part of the city. The government, therefore has not been functioning well since the event has caused difficulties in formulating rehabilitation and reconstruction plans. At last the difficult living conditions needed to formulate a rehabilitation and reconstruction Master Plan in a short period. It was also urged to implement some immediate countermeasures, which can be the matter of urgent need.

In line with this background, Japan International Agency (JICA) dispatched the study team with the objective of Formulation of Rehabilitation and Reconstruction Master Plan. The Master Plan included not only physical aspects of the city’s reconstruction but also social and institutional aspects of recovery of peoples’ lives.

In March 2007, the AJK Government initiated preparation of “Detailed Master Plan” for the city, to be prepared within the frame work of JICA Land Use Plan. It is an important step to recover citizen’s normal life. The Central Design Office (CDO) was the main agency for the preparation of Detailed Master Planning, while Development Authority Muzaffarabad (DAM) was responsible for the implementation of the plan and development control.

The Detail Master Planning was assigned to a Pakistani Consulting Firm, ACE-Architectural and Town Planning Services (PVT) Ltd (ACE-ARTS), based in Lahore. Intensive field work and consultations were held at different levels for preparation of Detail Master Plan of Muzaffarabad. As per provision of General Loan Agreement signed between EXIM Bank of China and EAD, an “Umbrella Contract Agreement” signed with both the Chinese Construction Companies which have to be implementing the individual projects under the Urban Development Program AJ&K.

Urban development project to be funded by the Chinese government under the loan of $ million 300 with counter part funding of $ million 53 by government of Pakistan. This arrangement was revised in September 2008 when this has been modified to cover projects of not only Muzaffarabad but also Bagh and Rawalakot. ERRA has already appointed three PMUs to cover the project executions in all of these three cities. There are 217 individual projects in this program out of which 17 priority projects mostly concerning infrastructure have already been identified. The project loan shall be spent for the three cities in the following proportions:

Nespak is already appointed as Engineer of the project and is written as such in the Contract between the two parties. The balance mechanism for the project execution is concerning following aspects where NESPAK will be involved at various steps in reviewing/vetting aspects.