Japan resumes yen loans

After seven-year suspension, the Japanese government on Wednesday resumed yen loan under 'Overseas Development Assistance' (ODA) by extending two loans and three grants of $167 million for water and power and health sector projects.
This is a 'soft term' yen loan characterised with a low interest rate of 1.3 percent per annum and long maturity of 30 years with 10-year grace period to support poverty alleviation through 'economic growth' and 'capacity and institution building'.
According to break-up, Japanese government has pledged $146 million for two projects Lower Chenab Canal System Rehabilitation ($111.8 million) and Load Dispatch System Up gradation ($34.3 million).
$22.8 million grant has been extended for three projects including 'Establishment of Environmental Monitoring System (approx $11 million), Flood Forecasting and Warning System-Lai Nullah Basin (approximately $6 million) and Renovation of Children Hospital Phase-III, Islamabad (approximately $5.8 million).
Khalid Saeed, Secretary Economic Affairs Division (EAD) and Hiroshi Azuma, Charge d'Affaires of the Embassy of Japan signed the Exchange of Notes (ENs) for these projects on behalf of their respective governments here on Wednesday.
The loan agreements of ODA projects were simultaneously signed in Tokyo by Hina Rabbani Khar, Minister of State for EAD and Japan Bank for International Cupertino (JABIC) Governor Kyosuke Shinozawa in the presence of Prime Minister Shaukat Aziz.
The project 'Lower Chenab Canal System Rehabilitation' aims to increase crop production in northern Punjab by rehabilitation and remodelling of the existing canal system and drainage system. It will also help in empowering farmers' organisations to whom responsibilities would be delegated for the operation and maintenance (O&M) of the system.
The Load Dispatch System Up-gradation Project's objective is to improve, upgrade and extend the existing load dispatch facilities at National Power Control Centre, Islamabad. Under this project the regional control centres would also be set up to meet the basic requirements of expanding power network.
Among three grant projects, 'Establishment of Environmental Monitoring System' project (covering provincial capitals and Islamabad) would ensure effective working of Environmental Protection Agencies (EPAs) in Pakistan through enhancing their capacity and scientific knowledge to take administrative measures for improving deteriorated air and water quality.
The project includes 17 air quality and 11 water quality monitoring stations besides up gradation of existing laboratories of environmental protection agencies and departments.
The 'Flood Forecasting and Warning System- Lai Nullah Basin' project aims at mitigating flood damages in twin cities, particularly those residing along the banks of Nullah Lai. The system includes one master control station, six rainfall gauging stations, two water level gauging stations, a monitoring station executive warning station, and 10 warning posts with modern facilities.
Four agencies namely, Pakistan Meteorological Department, Tehsil Municipal Administration Rawalpindi, Federal Flood Commission (FFC) and Water and Sanitation Agency (WASA) Rawalpindi would execute the project.
The grant project of 'Renovation of Children Hospital Phase-III, Islamabad', a component of Pakistan Institute of Medical Sciences (PIMS), aims at improving the provision of medical services through renewal and repair of existing building and facilities, construction of new operation theatres (OT) and renovation of the existing ones.