The reconstruction financed under this component will include a range of activities such as; urgent repairs to vital facilities such as community centre, schools, health centres and sanitation infrastructure.

However, this component has been subsequently renamed as Livelihood Support Activity (LSA) by the World Bank Project Review Mission held in (Jan. 13-19, 2002), to incorporate income generation activities (Micro credit scheme) and common infrastructure facilities. The allocation for LSA was increased to Rs.1.5 million consisting of Rs.0.9 million for micro credit and Rs.0.6 million for common infrastructure facilities.