ISLAMABAD Feb 17 The government of Japan has extended a grant of Yen53 million ($588,000) for improvement of water supply system in Abbottabad.

An agreement for the financing of this project was signed here on Wednesday by Economic Affairs Division (EAD) secretary Sibtain Fazal Haleem and Ambassador of Japan in Pakistan Chihiro Atsumi.

The Japanese government would provide a total grant of Yen3.887 billion ($43 million) in two phases. The first phase of the project Yen53 million ($588,000) is being provided for detailed designing whereas the remaining amount would be provided in the next phase for implementation of the project.

The project would provide drinking water to a population of 216,000 inhabitants of Abbottabad and its adjoining areas by 2015.

The ultimate water demand of the service area in 2015 is estimated at 6.8 million gallon daily (MGD) which shall be met through the surface water gravity scheme and ground water pumping.

Japan is one of the largest development partners of Pakistan which provides around $500 million annually covering multifarious aspects of socio-economic development in Pakistan.