In response to the earthquake in October 2005 with particular devastating damage to majority of health facilities in the districts Muzaffarabad, Poonch and Bagh, a grant has been offered for the reconstruction of health facilities and technical assistance to health planning in AJK. This project was implemented in coordination with the parallel technical cooperation activities as well as the reconstruction efforts of other donors and the Pakistani authorities. Three health facilities in Muzaffarabad and Bagh (Abbas Institute of Medical Sciences [AIMS], District Headquarter Hospital Bagh and Tehsil Hospital Kahutta) were earmarked for reconstruction. The selected facilities qualify for reconstruction investments on the basis of damage and demand. The AIMS in Muzaffarabad was to be developed into a major referral hospital of AJK (“Abbas Hospital”) including secondary and tertiary level care. The reconstruction of the hospitals in Bagh and Kahutta was mandatory due to total damage and the huge populations in remote areas that they serve. The project contributes to improvement of the health of AJK through: Provision of emergency equipment and other supplies for the hospitals; Coordination with other donors in the area; Reconstruction of the three facilities; Preparation of tertiary care hospital and technical equipment consolidation; Management assistance in organizational of the hospitals, management training; Clinical, technical and financial training of hospital staff