ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Thursday signed $775 million worth of five financing agreements to support recovery and reconstruction efforts in the flood-affected areas of Balochistan, Khyber Pakhtunkhwa and Sindh.
These projects will support the reconstruction and rehabilitation of irrigation and drainage structures, flood risk, and on-farm water management, as well as improve power and transport infrastructure in the flood-affected provinces.
The signed agreements also include a project to improve access to quality employment for skilled workers in Punjab.
The agreements were signed by Secretary Economic Affairs Division (EAD) Dr Kazim Niaz and ADB Deputy Country Director Asad Aleem.
Minister of Economic Affairs Sardar Ayaz Sadiq witnessed the signing ceremony.
The financing agreements include a $475 million concessional loan for Emergency Flood Assistance Project to support recovery and reconstruction efforts in Pakistan and to strengthen the country’s disaster and climate resilience. This is “the most concessional loan ever extended by ADB to the Government of Pakistan at 1 per cent with a repayment period of 40 years,” the EAD said in a statement.
A $189m under Second Power Transmission Enhancement Investment Programme (Tranche 4) was also inked for post-calamity restoration of power infrastructure, including transmission lines and substations, in the geographical regions affected by the recent floods.
Another financing agreement for $100m was also signed to upgrade 20 institutions and develop four Centres of Excellence to train 96,000 people (including 29,000 Women) in priority economic sectors of light engineering, textile and garments, food processing, information communications technology (ICT), tourism and hospitality, automobile/motorbike assembly, parts and repair, health and construction across Punjab.
Two project readiness financing facilities for preparing Khyber Pakhtunkhwa Water Resources Development Project ($3.6m) and Naulong Dam Project ($5m) were also signed.
Mr Sadiq thanked the ADB management for their continued and enhanced financial support towards the rehabilitation and reconstruction of flood-affected infrastructure, the development of the Technical and Vocational Education Training (TVET) institutional framework as well as the development of water resources in the country.
He said the Post Disaster Needs Assessment (PDNA) Report, launched in November estimated a requirement of $16.3bn for reconstruction efforts and the ADB financing was the first in the series of development assistance for flood reconstruction that the federal government would arrange in the coming year. He also appreciated the government departments for designing and seeking approval for the flood-related projects in a record time of two months.
ADB’s Director General for Central and West Asia Department Eugene Zhukov said that the bank had approved $2.67bn to Pakistan in 2022. He said the ADB will continue to support the government’s development priorities for green, resilient and sustainable recovery.
Published in Dawn, December 16th, 2022