ADB loans $36m to Sindh government

Fund will be utilised to finance coastal areas development programme.

KARACHI:

The Sindh Assembly was informed on Wednesday that the Asian Development Bank (ADB) is providing a loan of $36 million to help finance the Sindh coastal community development programme for the development of coastal areas in province.

Responding to questions asked by members of the assembly, Minister for Finance Murad Ali Shah said that this project will help reduce poverty, improve access to public service and environment of the coastal areas of Thatta and Badin districts.

To another question he said that the provincial government is also interested in establishing a special economic zone in the province to promote agro-based industries.

He said that a scheme “Establishment of Special Economic Zone” was approved at a cost of Rs3.4 billion for various cities of the province. The implementation of the project on a modular basis has been taken in the first phase in Khairpur at a cost of Rs148.95 million, which is being undertaken through the district government of Khairpur.

When asked about the open case mining in Thar district and the project being dropped in the annual development programme (ADP), the minister informed that the project is being initiated through a joint venture between Engro and Government of Sindh at a ratio of 40:60. He said that the government is working to develop the infrastructure including road networks and an airport in the Thar region.

Discussing low cost houses, the finance minister added that the government through union council based poverty reduction programme is constructing 7,000 low cost houses in 43 villages of district Shikarpur, Kashmore, Kandhkot and Jacobabad.  “Around 5,840 houses have been completed and 526 are under construction,” he replied.

He said that each house costs in the range of Rs100,000 to Rs150,000. “We have engaged local community and non-governmental organisations to nominate the deserving people in order to build houses,” he said.

Regarding the Sindh cities improvement programme he said that the Sindh government with the financial support of ADB has started the project worth $400 million. It aims at improving the infrastructure and municipal utility services comprising water supply, waste water management and solid waste management services of the cities.

He said that the programme has been divided into three clusters i.e. Northern, Central and Southern clusters.  The northern cluster includes New Sukkur, Rohri, Khairpur Mirs, Shikarpur and Larkana.  Jacobabad and Ghotki are to be included in the group.

The central cluster include: Shaheed Benazirabad, Sanghar, Naushehroferoz, Moro Shahdadpur, Mirpurkhas, Tando Allahyar and Tando Jam. Meanwhile, the Southern clusters will be indentified later on.

When asked whether Rs21 billion could be spent out of the Rs77 billion under the ADP in 2010-11, the minister said “The size of ADP was revised downwards to Rs77 billion due to heavy floods of 2010. The finance department released Rs50.275 billion and administrative department could utilise Rs46.636 billion by the end of the financial year.

Published In The Express Tribune, June 21^st, 2012.