ISLAMABAD: The government and Asian Development Bank (ADB) on Wednesday signed six financing agreements worth $1.54 billion for energy sector reforms, social protection, urban infrastructure, transport, and irrigation.
The projects were approved by ADB Board of Directors (BoD) last week.
The agreements were signed between Secretary Economic Affairs Division (EAD) Asad Hayauddin and ADB Country Director for Pakistan Yong Ye. ADB Governor and Minister for Economic Affairs Omar Ayub Khan along with other ADB officials witnessed the signing ceremony.
According to details, the deal includes a $300 million policy-based loan to support financial, technical and governance reforms to strengthen Pakistan’s energy sector. The financing is part of the second subprogramme of ADB’s Energy Sector Reforms and Financial Sustainability Programme, which aims to reduce and manage the circular debt.
The two parties also signed a loan agreement of $385 million for the Khyber Pakhtunkhwa Cities Improvement Investment (KPCII) project to improve water supply and sanitation in the cities of Abbottabad, Kohat, Mardan, Mingora, and Peshawar.
The ADB and the EAD also signed loan agreement of $15 million for KP Cities Improvement Project (PRF II) in addition to another loan agreement of $5 million for Kurram Tangi Integrated Water Resources Development Project.
The bank will also lend Pakistan $235 million to upgrade the 222-kilometer Shikarpur–Rajanpur section of the National Highway-55 which is part of the Central Asia Regional Economic Cooperation (CAREC) Corridor 5 that links the ports of Karachi and Gwadar in southern Pakistan with national and international economic centres to the north.
Moreover, the agreements also include $603 million results-based lending programme to expand Ehsaas social protection programmes in Pakistan through conditional cash transfers.
Under the programme, ADB will provide a regular loan of $600 million and a $3 million grant from the Asian Development Fund and will administer a $24 million grant from the Education Above All Foundation.
