Frances provides Rs19.5 billion loan for Peshawar rapid bus project

ISLAMABAD:  France announced that it would provide a soft loan 130 million Euros  for financing Peshawar bus rapid project. 

Noor Ahmed, Secretary, Economic Affairs Division (EAD), French Ambassador Marc Barety, Country Director of the French Agency for Development (AFD) Jacky AMPROU on Tuesday signed a Credit Facility Agreement worth Euros 130 m for financing Peshawar Sustainable Bus Rapid Transit Corridor project. 

The revised PC-1 of the project was approved by ECNEC on November 14th, 2018 and the Federal Cabinet accorded approval to the signing of the loan financing agreement with AFD on January 2nd, 2019. 

The project is co-financed by Asian Development Bank and AFD.

 The revised cost of the project is Rs. 66.437 billion (US$ 593 million) including Foreign Exchange Component (FEC) of Rs. 53.32 billion (ADB and AFD share). 

The project will contribute to the Government of Pakistan’s strategy to resolve the issues of urban transportation. It will provide safe, efficient and comfortable user friendly mass transit system which will be well integrated with the existing transport facilities. 

It will also help in improving energy efficiency and air quality through reduction of Green House Gas emissions. France through the French Agency for Development is working in Pakistan, providing technical and financial support to develop low-carbon infrastructures. 

Till date, AFD has committed Euros 880m financial support while this project is opening new avenue of collaboration in Urban development sector. Secretary EAD thanked Ambassador of France to Pakistan, AFD and the French Government for extending financial assistance to Pakistan. *