Asian Development Bank (ADB) signs $359m loan agreements for Sindh projects

Asian Development Bank (ADB) signs $359m loan agreements for Sindh projects

ISLAMABAD: The Asian Development Bank (ADB) and the government have signed two loan agreements amounting to $359 million relating to the bus rapid transit (BRT) project in Karachi and the Sindh secondary education improvement project.

Secretary of Economic Affairs Division Noor Ahmed and ADB Country Director for Pakistan Xiaohong Yang signed the agreements here on Saturday. Minister for Economic Affairs Makhdoom Khusro Bakhtiar witnessed the signingof documents.

For the development of 26.6km BRT Red Line corridor, the ADB signed financing agreement of $284m. The ADB has committed to providing $235m as loan while Green Climate Fund (GCF) will provide $37.2m as loan and $11.8m as grant for the BRT project. The project will feature innovative energy and climate resilience characteristics that will enhance access to quality public transport for the port city.

The main objectives of the project are to reduce overall traffic volume on the roads, thereby saving vehicle operating costs; improve the overall quality of air through reduced carbon emissions; and an innovative waste-to-fuel scheme for bettering public health and mitigating the effects of climate change on citizens.In addition, the ADB will administer a $71.8m loan from the Asian Infrastructure Investment Bank; a $71.8m loan from Agence Française de Development; and a $37.2m loan and a $11.8m grant from the Green Climate Fund (GCF), which will finance climate change adaptation and mitigation measures, such as the incremental cost of the transition to compressed natural gas (CNG) hybrid bus technology, and the construction of a biogas plant to produce CNG from cattle waste.

The project, which is expected to save 240,000 tons of CO2 emissions per year, is the first transport-related initiative approved by GCF.

`The project will bring a safe, reliable, and environmentally friendly mode of transport to Pakistan`s most populous city, said Ms Yang. `On behalf ofADB, I would like to thank the government of Sindh for the strong collaboration and continued support duringthe preparation of this complex project. The BRT will significantly improve the commuting experience in Karachi, ease congestion, and improve the overall quality of life for people in the city,` she said.

The project, developed and designed in partnership with the Transport and Mass Transit Department of the Sindh government, is currently going through procurement of civil works and services to fast-track implementation.

The project will restructure the entire width of the Red Line BRT corridor, including the construction of29 stations and dedicated lanes along the 26.6km stretch; improvement of the mixed-traf fic roadway with up toADB, I would like to thank the government of Sindh for the strong collaboration and continued support duringthe preparation of this complex project. The BRT will significantly improve the commuting experience in Karachi, ease congestion, and improve the overall quality of life for people in the city,` she said.

The project, developed and designed in partnership with the Transport and Mass Transit Department of the Sindh government, is currently going through procurement of civil works and services to fast-track implementation.

The project will restructure the entire width of the Red Line BRT corridor, including the construction of29 stations and dedicated lanes along the 26.6km stretch; improvement of the mixed-traf fic roadway with up tosix lanes in each direction; inclusion of organised parking facilities and landscaped green areas in various locations; improvement of the drainage system to climate-proof the corridor; and installation of bicycle lanes, improved sidewalks, and energyefhcient streetlights.

The second agreement for the $75m loan was signed for the Sindh Secondary Education Improvement project approved by ADB in October last. The project is being financed through ADB`s Concessional Ordinary Capital Resources, which is offered at very low interest charges.

This signifies ADB`s strong commitment to re-engage with Pakistan in the sector. There are a number of additional education projects planned over the next three years, including in the technical and vocationaleducation and training sectors.

The project will construct around 160 secondary school blocks on existing public school sites in some of the most deprived districts of southern Sindh. By focusing on access to education for girls, the project will help to bridge the gender and regional gaps in the province. The new blocks will feature gender-segregated sanitation facilities and prayer rooms, and be fitted with solar power.

`Education is critical to Pakistan`s continued development and ADB is committed to supporting Pakistan as it moves towards more equitable and inclusive education,` said Ms Yang. `I am pleased to sign this loan agreement. The project will help to improve education outcomes in Sindh, a province with important strategic endowments and development poten-tial,` she said.

The project will train teachers through an innovative classroom-based training and mentoring programme and help to improve the transparency and content of the province`s public examination system. A key outcome of the project is for the newly built secondary school blocks to be managed by private sector operators, unlocking critical quality improvements, efficiencies, and value for money for the Sindh government.

The project will also improve teaching capacity in five key subjects: English, mathematics, biology, chemistry, and physics, through the introduction of a teacher training and mentoring programme using information and communications technology and state-of-the-art laboratory equipment in selected schools.

Source: Dawn