By Staff Reporter
ISLAMABAD: Pakistan on Thursday signed five loan agreements worth $775 million for flood relief with the Asian Development Bank (ADB), the economic affairs ministry said, taking the total lending for the year to $2.7 billion with the agency.
“The government of Pakistan and Asian Development Bank signed five financing agreements of $775 million to support recovery and reconstruction efforts in the flood-affected areas of Balochistan, Khyber Pakhtunkhwa, and Sindh,” the ministry said in a statement.
“These projects will support reconstruction and rehabilitation of irrigation and drainage structures, flood risk, and on-farm water management, as well as improving power and transport infrastructure in the flood-affected provinces.”
Last summer record monsoon rains and glacier melt in the country’s northern mountains have triggered flash floods and rain-induced landslides that have killed over 1,700 people, sweeping away houses, roads, railway tracks, bridges, livestock, and crops. Huge areas are inundated, and hundreds of thousands of people have been forced from their homes.
The government said the damage from this summer’s catastrophic flooding is estimated at $40 billion.
The signed agreements also include a project to improve access to quality employment for skilled workers in Punjab.
Sardar Ayaz Sadiq, minister for Economic Affairs witnessed the agreement signing ceremony.
The financing agreements include $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 of Pakistan at 1 percent interest rate with a repayment period of 40 years,” the ministry said.
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 four centers 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, tourism and hospitality, automobile/motor bike 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 Naulong Dam Project ($5 million) were also signed.
Minister Sadiq said the Post Disaster Needs Assessment (PDNA) Report, launched in November this year, estimates a requirement of $16.3 billion for reconstruction efforts. “The ADB financing is first in the series of development assistance for flood reconstruction that the federal government would arrange in the coming year.”
Eugene Zhukov, ADB’s Director General for Central and West Asia Department that includes Pakistan expressed that ADB has approved and committed financing of $2.67 billion to Pakistan during 2022.
“ADB will continue to support the government of Pakistan’s development priorities and stands committed to support Pakistan for a green, resilient and sustainable recovery.”
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