The North East Reconstruction Fund will allow the Sub-Committee on Immediate Humanitarian and Rehabilitation Needs, to rapidly and flexibly apply donor resources to meet the immediate needs of people affected by the conflict, both returnees and those who remained in the conflict areas. The World Bank will administer the grants received from bilateral donors.

The North East Reconstruction Fund will finance projects principally aimed at:

1. Resettlement of internally displaced persons and associated Mine-Clearance activities,

2. Special needs of women and children,

3. Creating income generation opportunities for the war-affected.

Activities would include support for small-scale sub-projects to repair and upgrade urban and rural infrastructure, strengthen basic health and education facilities, support activities focused on women and children including those concerning physical and mental health and education, assistance with social integration, support for rehabilitation of war-affected children, identification and provision of livelihood schemes, and program on mine-awareness and training.

The World Bank will employ an independent firm to monitor the procurement of goods and services, review and recommend approval of withdrawal applications and monitor all expenditures financed by the grant funds. SIHRN will employ an independent auditor for projects funded by the Secretariat for Immediate Humanitarian and Rehabilitation Needs.