ISLAMABAD, Dec 23: The Asian Development Bank (ADB) on Thursday approved a $57 million loan for multi sector rehabilitation and improvement of economic prospects in Azad Kashmir.

The multi sector project, ADB's first in the state, had been crafted on the basis of a package of urgent needs tackling health, education, water supply, roads and power to fill investment gaps created over the years. Conditions of hundreds of kilometres of roads, dozens of bridges, schools, water supply and health facilities have deteriorated.

The ADB's urban development specialist said: "Investment under the project, together with the needed strengthening of related public agencies, is expected to provide basis for sustainable economic growth, improve the well-being of about 3.4 million people and help reduce poverty in the state."

The statement issued here said none of the hospitals had proper accident and emergency departments. Every year approximately 4,000 people died and a greater number suffered from some kind of disability because of poor facilities.

Some important departments such as paediatrics, gynaecology and operation theatre seriously lacked basic and essential equipment. Existing water supply networks and water treatment plants in all urban towns were in poor condition causing typhoid, hepatitis and cholera besides other water-related diseases.

It was identified in the statement that reconstruction of roads and the need for constructing more bridges was vital for progress in the region. Concerned with low levels of social and communication services, the government had developed a 10-year perspective development plan 2001-2011 for the state. A minimum of about $1.218 billion in investments was estimated to be required for development in the state for complete rehabilitation.