ISLAMABAD : The Asian Development Bank (ADB) has approved $9 million in project readiness financing (PRF) to support the preparation and design of urban sector projects in Khyber Pakhtunkhwa (K-P).
The PRF shall enable the government in accelerating the delivery of critical infrastructure across the province.
The scheme is premised on a set of new financing instruments that aim for speedy delivery. Features of the programme simplify documentation along with preparation and engineering design that helps ensure that projects are "shovel ready", reducing both time and cost for borrowers.
The PRF shall entail preparation of the first two phases of the proposed K-P Cities Improvement Project (KPCIP) including Kohat, Abbottabad, Mardan, Peshawar and others. The deal focuses on achieving improvement in urban services, transport facilities and civic amenities through enhanced municipal infrastructure.
K-P Planning and Development Secretary Arif Rehman commented that urban infrastructure projects will spur economic growth and improve people's living standards. "Better infrastructure will lower cost of business, shorten the travelling time and usher opportunities in remote areas," he added.
ADB Central and West Asia Director Yong Ye endorsed Rehman's vision.
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ADB’s financing includes a $7 million loan and a $2 million grant from the Urban Climate Change Resilience Trust Fund (UCCRTF), which was established in December 2013 by ADB with financial support from the governments of Switzerland, United Kingdom (UK), and the US as well as the Rockefeller Foundation.
The UCCRTF helps medium-sized cities in Asia to build resilience to the effects of climate variability and climate change, particularly to reduce the vulnerability of the low socio-economic groups.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate poverty.
In 2018, it reiterated the commitment of issuing loans and grants amounting to $21.6 billion.