ADB signs $15mln loan deal to uplift urban Punjab

ISLAMABAD: Pakistan and Asian Development Bank (ADB) on Tuesday signed a concessional loan agreement worth $15 million to help seven cities in Punjab design comprehensive investment and public service delivery plans in preparation for urban development projects.

This concessional loan is a Project Readiness Financing Facility (PRF) for engineering and designing urban development projects in Bahawalpur, Dera Ghazi Khan, Multan, Muzaffargarh, Rahim Yar Khan, Rawalpindi, and Sargodha, as identified by the provincial government.

Economic Affairs Division (EAD) Secretary Dr Syed Pervaiz Abbas signed the loan agreement with ADB Country Director Xiaohong Yang.

The Local Government and Community Development Department, government of the Punjab is the executing agency for the project.

The PRF was expected to be completed by October 31, 2022. It should prepare readiness for ensuing projects across the seven major cities in Punjab province.

Activities under the PRF include preparation of spatial master plans, updating surveys and studies, and investigating potential geological and hydrological sites, as well as conducting due diligence assessments, which would include technical, financial, economic and socio-economic analysis, in addition to environmental and social impact assessments. It would also include detailed engineering designs, advanced procurement actions if any, and institutional strengthening activities for metropolitan and municipal corporations/committees for improved service delivery models.

Pakistan has experienced rapid urbanisation as rural populations have migrated within the country to find jobs. Urban development challenges are most pronounced in cities in Punjab, which account for 53 percent of Pakistan’s urban population and experience intermittent access to poor quality water, ineffective wastewater and solid waste management, and severe traffic issues because of lack of public transport and poor traffic management. Federal secretary for Economic Affairs and ADB county director expressed their strong commitment to further the cooperation for socio-economic development of Pakistan.