The government of Pakistan and the Asian Development Bank (ADB) have signed five Financing Agreements worth over $770 million 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.
Federal Minister for Economic Affairs Sardar Ayaz Sadiq witnessed the signing of the agreements between the Economic Affairs Division (EAD) and ADB. Dr. Kazim Niaz, Secretary EAD, and Asad Aleem, Deputy Country Director, ADB signed the agreements.
The financing agreements include a $475 million concessional loan Emergency Flood Assistance Project to support recovery and reconstruction efforts in Pakistan following this year’s devastating floods and to strengthen the country’s disaster and climate resilience. This loan is the most concessional loan ever extended by ADB to the government at a 1 percent interest rate with a repayment period of 40 years.
A $189 million under Second Power Transmission Enhancement Investment Program (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 amounting to $100 million was also signed to upgrade 20 institutions and develop 4 Centers of Excellence to train 96,000 people (29,000 women) in priority economic sectors of light engineering, textile and garments, food processing, information and communications technology, tourism, and hospitality, automobile/motorbike assembly, parts and repair, health and construction across Punjab province.
Two project readiness financing facilities for preparing Khyber Pakhtunkhwa Water Resources Development Project ($3.6 million) and the Naulong Dam Project ($5 million) were also signed.
The minister expressed his deep appreciation and thanked the president, senior management, and board of directors of the Asian Development Bank for their continued and enhanced financial support towards rehabilitation and reconstruction of flood-affected infrastructure, development of TVET institutional framework as well as the development of the water resources in the country.
He said that the Post Disaster Needs Assessment (PDNA) Report, launched in November this year, estimates the requirement of $16.3 billion for reconstruction efforts. The ADB financing is the first in the series of development assistance for flood reconstruction that the federal government would arrange in the coming year. He also congratulated the government departments for designing and seeking approval for the flood-related projects in a record time of two months.
Eugene Zhukov, ADB’s Director General for the Central and West Asia Department which includes Pakistan said that ADB will continue to support Pakistan’s development priorities and stands committed to supporting Pakistan for a green, resilient and sustainable recovery.
