ADB plans to extend $25 million assistance shortly

Asian Development Bank (ADB) plans to extend $ 25 million proposed infrastructure Technical Assistance (TA) loan to Pakistan shortly.
Well-placed official sources told Business Recorder here on Monday that the loan would be utilised in power, transport and water sectors.
An ADB mission, the sources said, visited the country from September 27 to October 1 to undertake a preliminary review.
During the visit the mission reached at a common understanding with the government on the framework and structure of the proposed loan.
Explaining the goals and purposes of the TA, the sources said that the primary objectives were to provide resources to the government to facilitate preparation of infrastructure sector projects that promote economic growth and reduce poverty, are technically feasible and financially viable.
Sources said that it aimed at capacity building initiatives particularly in project designing and procurement, to assist in developing Public-Private Partnership (PPP) frameworks and models, and undertake preliminary studies facilitating future infrastructure projects.
They said that the proposed TA loan would have three major components; one for each of the major infrastructure sectors namely power, transport and communication and water resources.
Under each of the project components, the TA loan will enable preparation of feasibility studies, detailed designs and bidding documents.
To achieve increased economic growth, the government has accorded high priority to investment in infrastructure development that will serve as an engine of sustained growth and poverty reduction in the country, Sources said.
At the same time, the institutional capacity constraints also need to be addressed to ensure timely project processing and implementation, they added.
The TA loan will also include training and transfer of knowledge in project design, consultant engagement and procurement of civil works in accordance with external agency guidelines and procedures and capacity building with regards to the establishment of sustainable PPP.
The sources said that regarding social or environmental issues or concerns, the proposed TA loan itself would have no significant social impact since it primarily addresses institutional reforms, capacity building and project preparation.