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ADB approves $385mn financing for KPK’s urban development project

ADB approves $385mn financing for KPK’s urban development project

The Asian Development Bank (ADB) on Friday approved $385 million in financing to help improve the livability and community health of five cities in Pakistan’s Khyber Pakhtunkhwa (KPK) province.

In a statement, ADB said that the Khyber Pakhtunkhwa Cities Improvement Project will help to construct two clean water supply treatment facilities, three sewerage treatment facilities, and will rehabilitate dysfunctional tube wells among several other important subprojects in the cities of Abbottabad, Kohat, Mardan, Mingora, and Peshawar.

“ADB will provide a $380 million loan and a $5 million grant, while the Asian Infrastructure Investment Bank (AIIB) will provide cofinancing of $200 million, subject to approval of their board of directors,” the statement added.

Together with $65 million in financing from the Government of Pakistan, this represents ADB’s largest urban project ($650 million equivalent) in Pakistan.

ADB’s loan also includes more than $106 million for climate adaptation and mitigation, the bank’s largest climate financing contribution in any urban project in 2021.

$1bn ‘economic plan’ wins ADB’s approval

“More than 3.5 million people will benefit from improved access to clean and safe water, reliable and integrated waste management and sanitation services, green urban spaces, and gender-friendly urban facilities. About 150,000 households will gain new connections to water supply systems and have smart water meters installed in their homes,” ADB said.

The project will help address the challenges of climate change and deteriorating municipal services of urban centers in KPK.

“Large urban projects are often delayed due to their inherent complexity and competing interests in limited urban space,” ADB Director General for Central and West Asia Yevgeniy Zhukov said.

ADB approves $603m results-based lending programme

Days ago, ADB approved a $603 million results-based lending programme to strengthen and expand social protection programmes in Pakistan.

Using conditional cash transfers, the programme will support the implementation of Ehsaas, Pakistan’s national social protection and poverty reduction strategy.

Under the Integrated Social Protection Development Program, the 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.

Source: Business Recorder

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