The Asian Development Bank will provide $ 802 million assistance to Pakistan during 2005 for eight projects. Informed sources stated that the ADB President Tadao Chino during his recent visit here promised assistance of two billion dollars for the next two years. Out of the $ 802 for 2005, $ 310 million would come from the concessional Asian Development Fund (ADF) window and $ 492 million from Ordinary Credit Resources (OCR).
In next year's programme, the biggest project is the NWFP Road Development and sub-regional connectivity. The agreement for the project was signed by the government of Pakistan and ADB last week. Total cost of the project is $ 423. 6 million. ADB's share is $302, including $ 297 from the OCR and $ five million from ADF, while over $ 120 million would be raised locally.
Under the project, the road-network in the rural areas, national and provincial highways will be improved or rehabilitated. The cross border arrangement at Torkham would be streamlined to meet much higher flow of traffic and goods from Afghanistan and Central Asian States as expected in the coming years.
Another major assistance will be of $ 150 million for Punjab Decentralised Social Services, which is on the cards for next year. Of the total amount, $ 75 million will be funded from ADF and the remaining $ 75 million from OCR.
Seen as a key intervention for poverty reduction, the project aims at improvement in education, health, clean water and sanitation and service delivery. It will include policy-based programme lending and project lending for social services delivery. The province too will also share financing from local government funds. In the following years, the programme will be extended to other provinces.
Another major project is Balochistan Resources Management programme for which ADB is providing $ 123 million, of which $ 100 million will come from OCR while the remaining amount from ADF.
The Resources Management Programme was first started in Punjab in 2003 and is being extended to Balochistan. It is meant to promote effective use of public resources for poverty reduction, human development and economic growth. It aims at helping the provincial government in implementing the poverty reduction strategy through improved public resources management; enhanced development expenditure, enhanced effectiveness of public expenditures, and improved internal financial controls. It envisages, among other things, reform in fiscal and financial management and improved internal controls, reform in delivery of public services, management of natural resources, and strengthening of law enforcement, accountability and anti- corruption institutions.
A fully ADF programme costing 42 million dollars for Fata envisages development of rural areas in three northern agencies namely Bajaur, Mohmand and Khyber. Regarded as another poverty reduction project, it would help provide income-generating opportunities for the poor population through a mix of economic and social interventions. The programme includes construction of small dams for irrigation to bring additional land under cultivation.
Another project fully covered from ADF is $ 41 million Sustainable Livelihoods in Barani areas of Punjab programme. It aims at reducing poverty in selected rain-fed areas, improving economic conditions and social status of the rural poor through a mix of economic and social interventions. Village livelihoods are proposed to be improved through enhanced access to resources, and agriculture, and social services; introduction of agro-based cottage industries; increased agriculture and livestock production; upgrading of rural infrastructure of roads at district, sub-district and village levels.
Another project to be assisted for 2005 is Rawalpindi Environment Improvement Project costing $ 60 million, of which $ 40 million will come from ADF and the rest from OCR. It is the continuation of an earlier project, for which the ADB had given $ 72 million in 1993. The second phase of the project scheduled for 2005 would focus on improvements in water supply, sewerage, and drainage, provision of sewage treatment plant and solid waste management.
In the education sector, the new project for 2005 is Restructuring of Technical Education and Vocational Training (TEVT) for which ADB will provide $ 27 million from ADF.
The project envisages production of skilled labour force for the industry and services sector. For this, provincial governments have set up or are establishing technical education and vocational training authorities. The project would help reduce unemployment in rural areas and decrease poverty.
The last but very significant project from regional perspective is provision of $ 57 million for multi- sector Rehabilitation project in Azad Kashmir. It is the first of its kind in the area. A similar programme has been undertaken by ADB in occupied Kashmir. Sources stated much more would have been earmarked but more ADF money was not available. It particularly aims at rehabilitation of infrastructure including roads and energy, education and health facilities.
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