Peshawar BRI project: Credit facility accord for 130 million euros signed with AFD

Pakistan on Tuesday signed a credit facility agreement of 130 million euros with French Development Agency (AFD) for Peshawar Sustainable Bus Rapid Transit Corridor project. Secretary Economic Affairs Division (EAD) Noor Ahmed and Marc Barety, Ambassador of France, and Jacky Amprou, Country Director of the AFD signed a Credit Facility Agreement worth 130 million euros for financing Peshawar Sustainable Bus Rapid Transit Corridor project.
Sources said it is a long-term loan with repayment after 25 years with nominal interest charges. As the Prime Minister has directed to make the project operational by March-April 2019, the loan will cater the need of dollars required for procuring vehicles for the mass transit project.
The revised PC-1 of the project was approved by Executive Committee of the National Economic Council (ECNEC) on November 14, 2018 and the federal cabinet accorded approval to the signing of the loan financing agreement with AFD on January 2, 2019. The project is co-financed by Asian Development Bank and AFD.
The revised cost of the project is Rs 66.437 billion (US $ 593 million) including Foreign Exchange Component (FEC) of Rs 53.32 billion (ADB and AFD share). The project will contribute to resolving the issues of urban transportation.
The project, according to the government, will provide mass transit system which will be well integrated with the existing transport facilities. It will also help in improving energy efficiency and air quality through reduction of green house gas emissions, said the government.
France through the French Agency for Development is working in Pakistan and providing technical and financial support to develop low-carbon infrastructures. Till date, the AFD has committed 880 million euros financial support while this project is opening new avenue of collaboration in urban development sector, said a statement given to media after the signing ceremony.
The secretary EAD thanked the ambassador of France to Pakistan, AFD and the French government for extending financial assistance to Pakistan.