The Asian Development Bank (ADB) has secured a funding worth of $37 million in loan and $12 million in grant from the Green Climate Fund (GCF) for its projects in Pakistan.
Notably, the ADB has already approved $442 million worth of loans for Pakistan, which are further supplemented by the financing by the Songdo-based global fund.
In lieu of the recent funding, the Asian Infrastructure Bank (AIB) and Agence Française de Développement will set up a 30-kilometer fully segregated modern ‘third generation’ bus rapid transit system.
This system will comprise bicycle lanes, last-mile connectivity with e-pedicabs, a bike sharing system, and better-quality pedestrian facilities. The project will directly improve the lives of 1.5 million dwellers of Karachi.
This project also involves the establishment of a plant for the generation of biogas from cattle waste, which will be of use for the zero greenhouse gas emission biomethane-hybrid buses.
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Including Pakistan, the Manila-based bank has acquired a new funding of $108 million from the GCF for its climate change projects, which are in pursuance of its commitment to address the climate challenges in the Asia and Pacific region.
This new funding includes $71 million in grants and $37 million in concessional loans. Moreover, the funding will be used as a co-financing support to the bank’s climate change projects in Tonga, Pakistan, and Kiribati.
These projects are in pursuance of the bank’s recently endorsed corporate strategy 2030, according to which 75 percent of the bank’s projects will ‘address climate mitigation and adaptation by 2030’.
The funding from GCF will be a huge help to this effort as it will ‘support the deployment of innovative technologies to address climate change challenges in Kiribati, Pakistan, and Tonga.’
Green finance is the provision of any kind of funding like debt, grant, equity, investment guarantee and so on, with a condition that the recipient will deliver on the environmental aspects of the commercial or industrial activity. It refers to the provision of finances for projects that are environment-friendly.