ADB, Pakistan ink five financing agreements worth $775mn

Islamabad: The Government of Pakistan and Asian Development Bank (ADB) signed five Financing Agreements of US$ 775 million to support recovery and reconstruction efforts in the flood-affected areas of Balochistan, Khyber Pakhtunkhwa and Sindh.

The government has also signed financing agreement with ADB as well as to train the workers in the Punjab province, said a press release issued here Thursday.

These projects will support reconstruction and rehabilitation of irrigation and drainage structures, flood risk and on-farm water management, as well as improving power and transport infrastructure in the flood-affected provinces. The signed agreements also include a project to improve access to quality employment for skilled workers in Punjab.

Sardar Ayaz Sadiq, Federal Minister for Economic Affairs witnessed the signing of five Financing Agreements amounting to US$ 775 million between Economic Affairs Division (EAD) and ADB. Dr. Kazim Niaz, Secretary, EAD and Asad Aleem, Deputy Country Director, ADB signed the five financing agreements.

The financing agreements include US$ 475 million concessional loan Emergency Flood Assistance Project to support recovery and reconstruction efforts in Pakistan following this year’s devastating floods and to strengthen the country’s disaster and climate resilience.

It is the most concessional loan ever extended by ADB to the Government of Pakistan at 1 percent interest rate with a repayment period of 40 years. The fourth tranche of US$ 189 million under Second Power Transmission Enhancement Investment Program was also inked for post-calamity restoration of power infrastructure, including transmission lines and substations, in the geographical regions affected by the recent floods.

Another financing agreement amounting to US$ 100 million was also signed to upgrade 20 institutions and develop 4 Centers of Excellence to train 96,000 people including 29,000 women in priority economic sectors of Light Engineering, Textile and Garments, Food Processing, Information Communications Technology, Tourism and Hospitality, Automobile/Motorbike Assembly, Parts and Repair, Health and Construction across Punjab province.

Two project readiness financing facilities for preparing Khyber Pakhtunkhwa Water Resources Development Project worth $3.6 million and Naulong Dam Project worth $5 million were also signed.

Sardar Ayaz Sadiq, Federal Minister for Economic Affairs expressed his deep appreciation and thanked the President, Senior Management and Board of Directors of Asian Development Bank for their continued and enhanced financial support towards rehabilitation and reconstruction of flood affected infrastructure, development of TVET institutional framework as well as development of water resources in the country. The minister stated that the Post Disaster Needs Assessment (PDNA) Report, launched in November this year, estimated requirement of US$ 16.3 billion for reconstruction efforts.

The ADB financing is first in the series of development assistance for flood reconstruction that the federal government will arrange in the coming year, he told. He also congratulated the federal government departments for designing and seeking approval of the flood related projects in a record time of two months.

Eugene Zhukov, ADB’s Director General for Central and West Asia Department expressed that the Bank had approved and committed financing of US$2.67 billion to Pakistan during 2022. The ADB will continue to support the Government of Pakistan’s development priorities. The ADB stands committed in supporting Pakistan for a green, resilient and sustainable recovery, he expressed.

The federal minister said that resource envelop of $2.67 billion provided by ADB was manifestation of the confidence international development partners have shown on the current Government’s policies and rejected all rumors being spread in the media about a possible default.

SOURCE: APP