February 19, 2006	Sunday	Muharram 20, 1427

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ISLAMABAD, Feb 18: The Asian Development Bank (ADB) has decided to provide funding to the provinces to help complete their projects in the water sector.

Informed sources told Dawn on Saturday that the ADB officials were discussing with the Pakistani officials several water projects likely to be undertaken by the provinces in 2006.

The ADB has indicated to offer nearly $4 billion worth of assistance spanning three years. However, it plans to allocate maximum part of the resources directly to the provinces.

“The bank seeks to change its strategy under which the development needs of the provinces will be given preference over the federal government’s proposed development projects,” a source said.

The bank, the source said, was interested in providing increased funding to the provinces for building low barrages and other water sector schemes besides infrastructure and mega-city development projects.

The sources said that the bank had agreed to offer Pakistan roughly $1.2 billion annually during 2006-08 compared to the previous $900 million.

The bank has also promised uninterrupted assistance for the quake survivors and promoting rehabilitation and reconstruction activities in the NWFP and Azad Kashmir.

However, the bank emphasised that the government should ensure an efficient judicial system, improve the law and order situation and allocate more funds for education, health and poverty alleviation.

It also wanted the government to promote good governance to control poverty and unemployment and mobilise additional resources.

Sources said the ADB had expressed willingness to assist the government in improving the country’s weak and old infrastructure to help attract investment.

The ADB, which has provided $15.8 billion as part of the project assistance during 1968-2005, agreed to make further investment in the fields of energy, agriculture, transport & communication, social sector, governance, finance & trade and rural development.