Pakistan and France, on Tuesday, signed a Credit Facility Agreement worth 130 million Euros (Rs. 19.5 billion) to finance Peshawar’s sustainable Bus Rapid Transit project.
The agreement was signed by Secretary of Economic Affairs Division (EAD), Noor Ahmed, Ambassador of France, Marc Baréty, and Country Director French Agency for Development (AFD), Jacky Amprou.
“The project will provide safe, efficient and well-integrated mass transit system improving energy efficiency and air quality through reduction of Green House Gas emissions,” said the French embassy.
The project is expected to contribute to Pakistan government’s strategy in urban services and economic development, according to a press statement issued by the embassy.
France, through the French Agency for Development, has been providing technical and financial support to develop low-carbon infrastructures.
AFD, so far, has committed 880 million Euros of financial support while this project is opening new avenues of collaboration in the urban development sector.
According to a working paper of PC-1 of the BRT project, the modified PC-1 of the project envisages construction of 27.373 km dedicated, free BRT corridor out of which 11.853 km will be at ground level while 12.266 km will be elevated.
The cost of Peshawar Sustainable Bus Rapid Transit Corridor Project has increased by 35 percent. The original project was approved by the ECNEC in its meeting held last year at the total cost of Rs. 49.3 billion including Asian Development of Pakistan (ADB) loan Foreign Exchange Component (FEC) of Rs. 41.881 billion.
The revised PC-I for the project was submitted to the Ministry of Planning, Development and Reforms in June 2018 with a total cost of Rs. 67.953 billion including FEC of Rs. 54.609 billion to include the loan financing of 130 million Euros extended by the AFD and to accommodate the variation in the design and scope of the project.