ADB approves $385 million loan for KP’s urban development project
The Asian Development Bank or ADB has approved a $385 million loan to help improve the livability and community health of five cities in Pakistan’s Khyber Pakhtunkhwa.
In a statement on Friday, ADB said that the Khyber Pakhtunkhwa Cities Improvement Project will help construct two clean water supply treatment facilities, three sewerage treatment facilities, and will rehabilitate dysfunctional tube wells among several other important subprojects in Abbottabad, Kohat, Mardan, Mingora, and Peshawar.
Under the new project, ADB will provide a $380 million loan and a $5 million grant, while the Asian Infrastructure Investment Bank will provide co-financing of $200 million.
ADB Director General for Central and West Asia Yevgeniy Zhukov said that more than 3.5 million people will benefit from improved access to clean and safe water, reliable and integrated waste management and sanitation services, green urban spaces, and gender-friendly urban facilities.
“About 150,000 households will gain new connections to water supply systems and have smart water meters installed in their homes,” he pointed out.
The project will help address the challenges of climate change and deteriorating municipal services of urban centers in Khyber Pakhtunkhwa.
“Large urban projects are often delayed due to their inherent complexity and competing interests in limited urban space,” Zhukov said.
Earlier, the Asian Development Bank approved a $603 million loan to Pakistan to strengthen and expand its Ehsaas Social Protection programs.
Using conditional cash transfers, the loan will support the implementation of Ehsaas Program, Pakistan’s national social protection, and poverty reduction strategy.
Under the Integrated Social Protection Development Program, ADB will provide a regular loan of $600 million and a $3 million grant from the Asian Development Fund. It will also administer a $24 million grant from the Education Above All Foundation.