ADB agrees to give Pakistan $800 million

ISLAMABAD: Asian Development Bank (ADB) has agreed to provide Pakistan a loan totalling $800 million for three development projects. ADB expressed consent for utilisation of the sum towards the Railway Development Investment Programme (RDIP), Och-2 Power Project (O2PP) and Renewable Energy Development Investment Programme-2 (REDIP-2).

Finance Ministry officials revealed that formal discussions between Pakistan and ADB regarding RDIP and O2PP have already started. The two sides held detailed talks on July 2 regarding the feasibility study of O2PP.

Sources said that ADB will provide $500 million for RDIP, $200 million for REDIP-2 and $100 million for O2PP.

The $500 million loan for RDIP will be used to upgrade the Faisalabad-Lahore-Rawalpindi corridor system. This project will improve the 270-kilometre long railway tracks between Faisalabad, Shahdra, Gujranwala and Lala Musa. Under this project the financing and operations of the railway sector will be improved and new tracks will also be laid.

The loan for REDIP-2 will be used towards the production of an additional 150 to 250 megawatts of renewable energy.

Published in The Express Tribune, July 8^th, 2010.