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Sunday, December 3, 2023

ADB approves $385 million in financing for KPK urban development project

The Asian Development Bank has approved $ 385 million in financing to enhance the livability and community health of five major cities of the KPK province.

On Friday, The Asian Development Bank has approved $385 million in financing for the Khyber Pakhtunkhwa urban development project.

Improving livability

The financed amount would be spent on the construction of three sewerage treatment facilities, two clean water treatment facilities, and the restoration of dysfunctional tube wells, among other significant subprojects.

The ADB’s financing would specifically be spent towards enhancing the livability and community health in five major cities of the province.

These cities include the KPK’s capital city Peshawar, Kohat, Abbottabad, Mardan, and Mingora.

Read More: BRT Peshawar gets international recognition

The biggest urban development project

In a statement, the ADB said that it would provide $5 million as a grant, whereas the rest of the $300 million was a loan.

The Asian Infrastructure Investment Bank (AIIB) will also provide an additional $200 million as co-financing subject to approval from the institution’s board of directors.

The Government of Pakistan has also pledged $65 million in financing, bringing the total amount to a staggering $650 million. The huge financing would make it ADB’s largest urban project in Pakistan.

Climate change adaptation

The loan from the Asian Development Bank also includes around $ 106 million in financing to mitigate climate change and speed up climate adaptation.

The amount is ADB’s biggest contribution towards climate financing for any urban project this year.

A statement from the ADB said that more than 3.5 million would benefit from the projects. The projects would aim to enhance access to clean water, sanitation, green urban spaces, and waste management.

Read More: ADB okays $603m to strengthen Pakistan’s social protection programs

It further said that around 150,000 households would get water supply connections and smart water meters installed.

The ADB’s Director-General of Central and West Asia, Yevegenly Zhukov, said that delays are often faced in large urban projects due to competing interests in limited urban spaces as well as other complexities inherent to an urban setting.

The project would go a long way in addressing the growing challenges faced due to climate change.

Moreover, it would also help with the deteriorating municipal services in urban centers of the Khyber Pakhtunkhwa province.

The Asian Development Bank (ADB) has also approved another $300 million loan to support Pakistan’s energy sector and enhance its financial sustainability.