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| June 18, 2005 | Saturday | Jumadi-ul-Awwal 10, 1426 |
Over 11bn loans likely for NWFP projects, budget support
PESHAWAR, June 17: The NWFP government will obtain loan more than Rs11 billion from international lending institutions and bilateral donors during the 2005-06 financial year to support development activities and to bridge the gap between its current revenue receipts and expenditure, according to official sources.
The World Bank has intimated that it will provide Rs5.2 billion tranche for the Structural Adjustment Credit-III, aiming at bringing about structural reforms in various departments and fiscal management of the provincial resources.
The amount, to be provided as budgetary support, would partly be utilized on development activities and partly on the provincial government’s important revenue and capital expenditures.
Similarly, the federal government has projected a total credit of Rs5.98 billion to be provided to the province during the next financial year from international donor agencies, officials said.
The International Development Association (IDA) would provide Rs1.2 billion of which a major chunk of Rs701 million would go to the 4th On-Farm Water Management, Rs60 million to HIV/AIDS Prevention and Rs473 million to the NWFP community infrastructure Project Phase-II.
The Asian Development Bank (ADB) would provide Rs4.17 billion of which Rs1.3 billion would go to the National Drainage Programme, Rs768 million to Barani Areas Development Project, Rs344 million to NWFP Urban Area Development Project, Rs1.06 billion to Malakand Area Development Project, Rs134 million to Forestry Sector Programme, Rs22.6 million to Reproductive Health Project, Rs21 million to Women Health Project, Rs17 million to Pehur High Level Canal Project, Rs5 million to Second Science Education Project and Rs400 million to Road Sector Project.
The International Fund for Agriculture Development (IFAD) would provide Rs284 million for Dir Rural Area Support Project and Organization for Petroleum Exporting Countries (Opec) would give Rs99 million for Second Girls Primary Education project.
The government of Japan would provide Rs200 million for executing the Rural Road Construction Project, Phase-I.
LOAN REPAYMENT: According to official data, the Frontier province is to repay Rs6.4 billion to the federal government during the 2005-06 financial year.
“The provincial government would like to repay more than the amount it has been required by the federal government because the province wants to quickly get rid of the expensive loan payable to the centre” said a finance manager.
The amount indicated by the federal government includes Rs2.49 billion principal amount against certain cash development loans, foreign loans and US-Aid local currency loans.
A sum of Rs4.06 billion, to be paid by the province, would service the interest payable over and above cash development loans, foreign loans and US-Aid local currency loans.
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