Punjab seeks $500m for 3 projects

CDWP endorses concept clearance papers of these schemes


Shahbaz Rana August 06, 2020
The Naya Pakistan Housing Programme has been launched to construct five million houses in five years with the support of private sector developers and banks. PHOTO: FILE

ISLAMABAD:

The government of Punjab has decided to obtain three loans worth $500 million for undertaking activities that do not need foreign funding.

The provincial government of Pakistan Tehreek-e-Insaf (PTI) on Thursday presented three concept clearance papers for endorsement by the federal project approval body - the Central Development Working Party (CDWP).

Any foreign loan required by a provincial government has to be examined by the federal government due to its implications for the country’s external debt sustainability.

Headed by Planning Commission Deputy Chairman Dr Jehanzeb Khan, the CDWP endorsed the concept clearance papers of three projects. These included Support to Naya Pakistan Housing Authority project costing $250 million, including $200 million in loan from the World Bank.

The CDWP also endorsed the concept paper of $250-million, including $200 million in World Bank loan, Punjab Rural Sustainable Water Supply and Sanitation project. Furthermore, it cleared concept paper of $100 million worth of project for the construction of wastewater treatment plants in Lahore.

The activities being undertaken do not need any foreign funding and can be financed through resources of the provincial government, which has surplus cash.

The purpose of the proposed $100-million foreign-funded project is to establish wastewater treatment plants in south Lahore for treating and reusing the wastewater for irrigation purposes. However, the provincial government has not conducted feasibility study of the project.

The loan will be secured from the Asian Infrastructure Investment Bank (AIIB), French Development Agency and Danish International Development Agency.

“Instead of overburdening provincial and local governments through more loans, urban development should be done through local funding based on various financing modes including the public-private partnership,” according to the Planning Commission.

Owing to the non-existence of wastewater treatment plants in Lahore, Ravi River has now become a sewage-carrying drain and all the seepage from it is nothing but sewage. The flow of sewage from the Ravi River is posing a threat to the groundwater reservoir of Lahore and its vicinity.

Also, due to over-extraction of groundwater, a huge cone of water depression has developed in the city centre and as a result of this, pollution may travel towards the city groundwater.

In 1987, the British government had conducted a study and identified six locations for the construction of wastewater treatment plants.

The World Bank-funded Punjab Rural Sustainable Water Supply and Sanitation project worth $250 million is aimed at ensuring villages in Punjab become hygienic places with adequate water supply and sanitation infrastructure and services.

The Punjab government has planned to take a loan of $200 million from the World Bank.

Interestingly, the foreign loan will also be used for “behaviour change and capacity development of tehsil councils, community members and village panchayats”.

The Naya Pakistan Housing Programme has been launched to construct five million houses in five years with the support of private sector developers and banks. Half of the units are expected to be constructed in Punjab, according to project documents.

The Punjab government wants to complete the project through a $200-million World Bank loan.

“The concept clearance proposal lacks information regarding progress of the Naya Pakistan Housing Programme, besides engagement with the international development partners,” according to Planning Commission’s observations.

In addition to the three concept clearance papers, the CDWP approved four projects worth Rs16.1 billion and recommended two schemes worth Rs44.2 billion to the Executive Committee of National Economic Council (Ecnec) for consideration.

A project related to energy - the establishment of 48-megawatt Jagran Hydropower Station Phase-II Neelum district, AJK, worth Rs11.4 billion was referred to Ecnec for approval.

A project related to culture, sports and tourism namely the Heritage & Urban Regeneration in Lahore Tourism Development in Lahore Fort and its Buffer Zone, worth Rs3.7 billion was approved in the meeting.

The project envisages restoration and preservation of various components of the Lahore Fort along with rehabilitation, reconnection of the fort with the Walled City and upgrading the outskirts.

A project related to food and agriculture namely Locust Emergency and Food Security worth Rs32.8 billion was referred to Ecnec. The project will be implemented in 18 districts of four provinces.

It is aimed at enhancing food security and growth of the sector by controlling locust attack, strengthening the national food security system and mitigating the negative social and economic impact associated with the locust attack.

Published in The Express Tribune, August 7th, 2020.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ