KP Asks For Additional $ 145 Million From Asian Development Bank For ‘City Improvement Project’
PESHAWAR: The government of Khyber Pakhtunkhwa (KP) has requested an additional loan of $ 145 million from the Asian Development Bank for sanitation, waste disposal and irrigation projects in five major cities, including Peshawar.
The AfDB has already approved a loan of $ 450 million for the project.
According to the KP Planning and Development Department, the “Towns Improvement Project” will provide facilities to local government, including sanitation services in Swat, Peshawar, Abbottabad, Mardan and Kohat. The provincial government has already borrowed $ 7 million from ADP in this regard.
The PC-1 of the Cities Improvement Project shows that the project will cost $ 645 million, of which the provincial government will contribute $ 50 million while $ 450 million will be provided by the AfDB. However, an additional $ 145 million is needed for which KP has contacted the Asian Development Bank.
“The bank has been contacted and positive signals have been received from the AfDB, after which it was decided to present the project to the Provincial Development Working Group (PDWP) meeting next week for approval,” said a manager.
After approval of the additional loan, the total loan amount approved for the project will be $ 600.20 million, of which $ 7 million is project readiness financing. The AfDB also provided a grant of $ 2 million to finance the preparation of the project while the provincial government also allocated $ 500,000.
It will be the largest loan ever received by the provincial government for a project, amounting to around 95 billion rupees.