News
Thursday, March 31, 2011
ADB okays $650m to rebuild flood-hit infrastructure* Loan will help reconstruct over 790 kms national highways, 800 kms of provincial roads
By Sajid Chaudhry
ISLAMABAD: The Asian Development Bank (ADB) is extending $650 million in emergency assistance loans to help Pakistan rebuild the vital infrastructure destroyed during last year’s floods.
The ADB’s board of directors on Wednesday approved the loan assistance, along with a supporting technical assistance grant, for the Flood Emergency Reconstruction Project. The loans will be used to reconstruct damaged roads, bridges, irrigation systems and flood and drainage protection works in the worst-affected areas.
The emergency loan will help reconstruct over 790-kilometres long national highways and 800 kilometres of provincial roads and bridges of higher standards. It will also upgrade flood protection embankments and other drainage infrastructure in 1.5 million hectares of agricultural land. The assistance will include $600 million to be taken from Ordinary Capital Resources with a 32-year term, an eight-year grace period and interest set in accordance with ADB’s LIBOR-based lending facility. Another $50 million will be tapped from ADB’s confessional Asian Development Fund, which will have a repayment term of 40 years, with a 10-year grace period, and interest charges at 1 percent per annum.
“This assistance comes in direct response to a request from the government and represents ADB’s strong and continued commitment to the people of Pakistan,” said Juan Miranda, director general for ADB’s Central and West Asia Department. “The outcome of the project will be the restoration of critical infrastructure to restore livelihoods and access to markets which will support economic and social recovery,” Miranda added.
Courtesy www.dailytimes.com.pk