The Asian Development Bank (ADB) has approved $9 million in Project Readiness Financing (PRF) to support the preparation and design of urban sector projects in Khyber Pakhtunkhwa, which will support the government in accelerating the delivery of infrastructure in the province, according to a press release issued on Tuesday.
This is the first project approved under PRF in the region, which is part of a new set of financing instruments approved by the ADB’s board of directors to help deliver projects in a more responsive manner.
As per the details shared, the PRF features simplified documentation and supports project preparation and engineering design activities, reducing both overall time and cost to borrowers.
The PRF will support the preparation of the first two phases of the proposed Khyber Pakhtunkhwa Cities Improvement Project (KPCIP).
Up to 3.5 million people are expected to benefit from the projects, which are expected to be co-financed with the Asian Infrastructure Investment Bank (AIIB).
“The proposed urban infrastructure projects will spur economic growth and improve people’s living standards in KP. Better infrastructure will lower the cost of doing business, shorten travel times, and usher in more economic opportunities in remote areas,” said Atif Rehman, secretary of the provincial Planning and Development Department.
“We are excited that the government and people of Pakistan will benefit from ADB’s new financing instrument, which will improve portfolio performance, lower project costs, and increase the speed of implementation,” said Yong Ye, ADB’s director for the Central and West Asia Department’s Urban Division.
ADB’s financing includes a $7m loan and a $2m grant from the Urban Climate Change Resilience Trust Fund (UCCRTF), which was established in December 2013 by ADB with financial support from the governments of Switzerland, the United Kingdom, and the United States, as well as the Rockefeller Foundation.