Hydel Power generation should be the first priority of GoP being the cheapest source of power and irrigation storage facility
ADB to lend Pakistan $6 bn for energy, road projects
[Mehtab Haider](http://www.thenews.com.pk/TodaysPrintWriterName.aspx?ID=13&URL=Mehtab%20Haider) Wednesday, May 13, 2015
** ISLAMABAD: After a successful agreement between Pakistan and the IMF, the Asian Development Bank (ADB) has agreed to lend $6 billion to Pakistan over the next five years (2015-19) under the Country Partnership Strategy (CPS). **
The fresh CPS for the next five years, which is currently under the approval process at the board of the Manila-based financial institution, will provide loans to Islamabad for projects like the 660MW Jamshoro Coal Project and the construction of the Hassan Abdal-Havelian and Gojra-Khanewal motorways. In the next five years, small and medium dams each having a capacity of producing 100-300MW of power will be constructed to generate 2,000MW.
Pakistan has requested ADB to allocate resources for mega hydropower projects, including the Diamer Basha Dam in the upcoming CPS for Pakistan. According to an official announcement made here on Tuesday, Secretary Economic Affairs Division (EAD) Muhammad Saleem Sethi co-chaired a meeting on the Country Partnership Strategy (CPS) and Country Business Operation Plan (COBP) for Pakistan with the vice president of Asian Development Bank (ADB) on Tuesday, May 12, 2015.
Vice president ADB, Wencai Zhang, is on a visit to Pakistan for strengthening the bilateral relations and enhancing economic cooperation. Seleem Sethi highlighted sectoral priorities of the government and presented the Government of Pakistan’s Vision 2025. He asked the ADB to support and enhance its funding in key sectors of the economy, including energy infrastructure, education and health. He further stated that the government’s vision of connecting Pakistan with Central and West Asia would be an integral part of the CPS.
The Asian Development Bank (ADB) agreed to finance US$6 billion for the next five years in Pakistan, aligning its country partnership strategy with Vision 2025. The funding shall be helpful for overcoming the energy crisis and building new road projects of Hassanabdal-Havellian and Gojra-Khanewal Motorways. In the next five years, to overcome the energy crises, small and medium dams of 100-300MW capacity shall be constructed with the target to generate 2,000MW. The secretary EAD emphasized the need to explore multi-donor financing for mega energy projects like Dasu and Diamer Basha dams.
Additional Secretary Ms. Anjum Assad Amin and Senior Joint Secretary, Pervaiz Ahmad Junejo, highlighted the issues of ADB’s portfolio management on implementation and procurement. They asked the ADB to enhance the role of ADB’s Pakistan Resident Mission for speedy disposal of implementation and procurement issues. Wencai Zhang is on four-day visit to Pakistan and will meet the prime minister, finance minister, federal ministers and chief ministers of the provinces.
Meanwhile, the Asian Development Bank (ADB) and the Government of Pakistan on Tuesday signed a $197 million loan agreement to upgrade a national highway in the Balochistan province.
Mohammad Saleem Sethi, Pakistan’s Secretary for Economic Affairs and ADB’s Country Director for Pakistan Werner E. Liepach signed the agreement during a ceremony attended by ADB’s vice president Wencai Zhang. The project will rehabilitate 79 kilometers of two-lane highway in Zhob-Mughalkot (N50) and another 128 kilometers in Qila Saifullah Waghum (N70).
“Over the past decades, the ADB has supported the government’s initiative for equitable provincial development,” said Zhang. “This project is a step towards boosting the economic growth, regional integration, and reducing poverty while bringing substantial social and economic development for the people of Balochistan.”
The highway development project is a continuation of ADB’s support to the Government of Pakistan in its efforts to upgrade important roads in the country’s geographically largest province of Balochistan. The project, being executed by the National Highway Authority, will reduce the transport costs, promote inter-provincial connectivity, strengthen road safety, and open up new economic opportunities for local communities through easier access to markets and social services.
Balochistan, located on the intersection of the Middle East, Central Asia and South Asia, has the potential to become an important regional trading hub. The province has the lowest density of roads among Pakistan’s four provinces. Poor connectivity and access issues continue to be the major challenges affecting the poor who live mostly in rural areas. The improvement of road infrastructure is expected to help pull poor communities in remote parts of the country out of poverty, and unlock economic prosperity in the region.
The 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.