EAD signs five financing agreements with World Bank

The Economic Affairs Division (EAD) signed five financing agreements worth $787 million with the World Bank on Tuesday for projects related to urban mobility, urban management and service delivery, improved water and sewerage services, and tourism and power sectors. Minister for Economic Affairs Muhammad Hammad Azhar witnessed the signing ceremony of five projects worth $787 million with the World Bank.

Secretary Economic Affairs Division Noor Ahmed signed the loan agreements on behalf of the government of Pakistan while the representatives of the governments of Sindh and Khyber Pakhtunkhwa and National Transmission & Despatch Company Limited signed the project agreements of their respective projects. Country Director World Bank Patchamuthu Illangovan signed the agreements on behalf of the World Bank.

The projects in different sectors include Karachi Mobility (Yellow Line) project, Karachi Water and Sewerage Services Improvement (1st Phase) project, Competitive and Livable City of Karachi project, Khyber Pakhtunkhwa Integrated Tourism Development project, and additional financing for Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) project.

The objective of the Karachi Mobility (Yellow Line) Project of $382 million is to improve mobility, accessibility and safety along the Yellow Line Bus Rapid Transit (BRT) Corridor in Karachi. The project will help develop urban road infrastructure (Yellow Corridor), rehabilitate or reconstruct road infrastructure along the Yellow Corridor, develop and operationalize a BRT system and capacity building. The project will improve access to jobs, mobility and safety through a Bus Rapid Transit System along the 21-km Yellow Corridor. A key focus area of the project is to provide safe and secure transport for women's mobility. The corridor starts from Dawood Chowrangi in the east, runs through Korangi Industrial Area and ends at Numaish at the city centre. It is one of five priority lines in the city's transport plan and will benefit commuters along Surjani Town and Korangi Industrial Area. The project will reduce the travel time, road traffic fatalities and emissions.

The objective of the Karachi Water and Sewerage Services Improvement (1st Phase) project of the US $40 million is to improve access to safe water services in Karachi and to increase Karachi Water and Sewerage Board's (KWSB) financial and operational performance. The project is conceived as the first in a proposed series of projects that form a long-term program to address the serious WASH service gaps in rapidly growing Karachi. The project is part of larger and longer-term $1.6 billion programme. This first phase will support an ambitious reform program with an aim to improve the Karachi Water and Sewerage Board's efficiency and sustainability to provide clean drinking water and sanitation services to the citizens. Two million people will benefit from the better customer service, reduced water losses and improvements in asset and revenue management. Water supply and sewage networks will also be rehabilitated through investments in at least three informal settlements (katchi abadis), pumping stations, and sewer maintenance trucks.

The Competitive and Livable City of Karachi Project worth US $230 is aimed at improving the performance of Karachi local councils and agencies in urban management, financing and service delivery; and to improve the business environment for private sector development in Karachi. The project will help address the challenges of urban management service delivery and business environment being faced by Karachi by selectively tackling the critical bottlenecks. The project will modernize the urban property tax system, incentivize private sector participation in service delivery, enhance ease of doing business, and improve solid waste management. The International Bank for Reconstruction and Development is funding all three Karachi projects.

The objectives of the Khyber Pakhtunkhwa Integrated Tourism Development project of US $70.0 million are to improve tourism-enabling infrastructure, develop tourism assets, and strengthen management for sustainable tourism development in Khyber Pakhtunkhwa. This project will invest in infrastructure development, strengthen institutions with business-friendly regulations and enhance technology use. Nearly half a million entrepreneurs and travelers will benefit from upgraded facilities at different tourist destinations. The project will introduce sustainable destination management through infrastructure, facilities and assets. Initial focus will be to cover Chitral, Galliyat, Kalam, and Naran. Environmental preservation will be a priority through waste recycling and management, including single-use plastics. Women and youth in the local communities will benefit through enhanced skills. The International Development Association, the concessional financing arm of the World Bank, is financing the Khyber Pakhtunkhwa tourism project.

The objective of the additional financing of $65 million for Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) project is to create the conditions for sustainable electricity trade of 1300MW between Central Asian countries (Tajikistan and the Kyrgyz Republic) and South Asian countries [(Pakistan (1000MW), Afghanistan (300MW)].

The minister for economic affairs highlighted that the signing of 5 projects worth $787 million indicates resolve of the World Bank to support the development agenda of the present government.

The country director while appreciating the reforms initiatives of the current government said that World Bank is committed to extend possible support and facilitation to the government to help put the economy back on track.

Federal Minister for Economic Affairs Muhammad Hammad Azhar thanked the World Bank for extending its continuous support to the government of Pakistan in its efforts to achieve sustainable economic development in the country.