ADB approves $685mn for Pakistan to improve Energy Sector, KP
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Pakistan to received $300mn to strengthen Pakistan’s energy sector, 385 livability and community health of five cities in Pakistan’s Khyber Pakhtunkhwa
MANILA (Philippines): The Asian Development Bank (ADB) Friday approved a $300 million policy-based loan to support financial, technical, and governance reforms to strengthen Pakistan’s energy sector and improve its financial sustainability.
The financing is part of the second subprogram of ADB’s Energy Sector Reforms and Financial Sustainability Program, which aims to improve the governance of Pakistan’s energy sector and reduce and manage the accumulated cash shortfall across the power supply chain known as circular debt. The first subprogram in the amount of $300 million was approved in December 2019.
“As Pakistan’s key development partner in the energy sector, ADB has been supporting the government to expand access to reliable, affordable electricity and help enact reforms that make the sector more efficient and sustainable,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “This program will help facilitate public and private sector investment across the energy sector value chain through key policies and integrated planning, and will help expand renewable energy generation.”
Disruption from the coronavirus disease (COVID-19) pandemic stressed the finances and supply chains of Pakistan’s energy sector, slowing the pace of sector reforms initiated by the government in 2019. Losses incurred by state-owned enterprises that impacted the energy sector’s circular debt, together with pandemic relief measures put unprecedented pressure on the energy sector’s liquidity and finances.
Pakistan is a founding member of ADB. Since 1966, ADB has committed more than $36 billion to promote inclusive economic growth and improve the country’s infrastructure, energy and food security, transport networks, and urban and social services.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Khyber Pakhtunkhwa: In another meeting, the ADB also approved $385 million in financing to help improve the livability and community health of five cities in Pakistan’s Khyber Pakhtunkhwa province.
The Khyber Pakhtunkhwa Cities Improvement Project will help to construct two clean water supply treatment facilities, three sewerage treatment facilities, and will rehabilitate dysfunctional tube wells among several other important subprojects in the cities of Abbottabad, Kohat, Mardan, Mingora, and Peshawar.
More than 3.5 million people will benefit from improved access to clean and safe water, reliable and integrated waste management and sanitation services, green urban spaces, and gender-friendly urban facilities. About 150,000 households will gain new connections to water supply systems and have smart water meters installed in their homes.
With its rapidly growing urban population, Khyber Pakhtunkhwa province is becoming more exposed to health risks due to deteriorating municipal services and the impacts of climate change. Strong, climate-resilient urban infrastructure combined with access to reliable services benefit people, the environment, and support sustainable development. This project will help address these challenges of urban centers in Khyber Pakhtunkhwa province.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
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