KP amends development projects as USAID warns of funds withdrawal

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has proposed to amend the United States Agency for International Development (USAID) funded projects in the province after the agency set September 30 as the deadline to utilise the funds, failing which it will withdraw a $5 million aid it granted to KP for these projects.

According to sources, USAID had committed funds for eight projects under the municipal services programme. They say that most of the project directors have assured the provincial government that they will fully utilise the $18.8 million originally granted, however, the USAID has warned that it will withdraw a $5 million fund if it was not utilised by the deadline.

According to sources, in this regard, the government has proposed to amend the project implementation programme and to include the purchase of more items in the project, including vehicles and the GIS system.

According to sources, in a meeting chaired by KP additional chief secretary that instead of returning the funds, it will be spent on the procurement of new items including new vehicles for officers.

Sources said that the procurement process will be completed within two months and a delegation of the provincial government will meet USAID to discuss the amended aspects of the project.