ISLAMABAD, Jan 7: The Asian Development Bank (ADB) has agreed to offer $400 million new assistance to Pakistan to help undertake bigger infrastructure development projects including 'the Karachi Mega City Renewal Project'.

"We plan to extend roughly $300 million for new infrastructure projects and $100 million separately for capacity building and to help meet the long-term financing needs of Karachi city," said the Resident Representative of the ADB, Marshuk Ali Shah.

Talking to Dawn here on Friday, he said that an ADB mission was arriving in February to sign the agreement with the government for providing new infrastructure funding to Pakistan.

He said that his Bank had decided to facilitate public-private financing facility for Pakistan to help resolve major problems relating to infrastructure development across the country.

One of the missions, he said, had just concluded its visit to Pakistan by holding negotiations with the senior government authorities. And now in February things would be finalized over the issue, he added.

Mr Shah said that the ADB had indicated to initially provide $100 million as part of the mega-city funding for Karachi which could be increased at a later stage. "It all depends and perhaps we may offer more money on this account with a view to removing the funding difficulties of the Karachi city," Mr Shah said.

The ADB resident representative said that his organization was also looking for raising funds from the market for infrastructure development by issuing its own bonds. "This is a good way to collect funds from the market, and this is how we can arrange maximum funds for much needed infrastructure development in Pakistan," he said.

Responding to a question, he said that the ADB had reached an understanding with the government of Pakistan to initially provide $100 million for Karachi. To another question, he said that the ADB had just concluded its operations for 2004 and was now negotiating with the government of Pakistan to provide financial assistance for new development projects during 2005.