Financial assistance: ADB loans $99 million for improving utility services

Sindh cities experience rapid population growth, lack of reliable infrastructure.

ISLAMABAD:

The Asian Development Bank (ADB) and the Government of Pakistan on Wednesday signed an agreement to invest $99.1 million in improving water supply, sanitation and solid waste management facilitates in eight smaller cities of Sindh.

ADB’s Country Director for Pakistan Werner E Liepach and Economic Affairs Division Secretary Muhammad Shahzad Arbab signed the loan agreement while Additional Chief Secretary Development Arif Ahmed Khan and North Sindh Urban Services Corporation Limited (NSUSC) Managing Director Niaz Ali Shar inked the project agreement on behalf of the Government of Sindh.

“The Sindh Cities Improvement Investment Program (SCIIP) tranche 2, approved by ADB’s board of directors on December 18, 2012, aims to provide urban utility services to over six million residents of eight major towns in north Sindh including Jacobabad and Gothki in addition to Khairpur, Larkana, New Sukkur, Rohri, Shikarpur and Sukkur,” said Liepach.

“Improvements in urban services for better quality of life in these six fast growing cities were already initiated under tranche 1 of the programme.”



Sindh’s smaller cities are experiencing rapid population growth and a severe deficit of reliable urban infrastructure that has created major health and hygiene problems stinting economic growth and livelihood opportunities for the people.

NSUSC will implement the project over the next four years (2013-2017) in coordination with the Planning and Development Department – the executing agency.

The total funding for SCIIP 2 is $139.8 million, of which ADB will finance $99.1 million through two loans – $74 million from its special fund resources and $25.1 million from ordinary capital resources, and the government will provide counterpart funds of $40.7 million.

“The project will build on the gains made under tranche 1 that has successfully introduced a local government owned and professionally managed independent urban utility company to address the mounting water supply and sanitation challenges. The project will promote increased citizen participation and support for sustainability and efficiency of the urban services,” Liepach added.

The SCIIP 2 also supports institutional reforms to provide investments for urban services and infrastructure, and develop capacities of new institutions.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.

Published in The Express Tribune, May 9^th, 2013.

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