Japan is likely to extend $ 735 million to Pakistan under Overseas Development Assistance (ODA) soon which had been suspended after 1998's nuclear tests, informed sources in the Economic Affairs Division told Business Recorder.
However, the loan has been linked with several terms and conditions, including steps to prevent pollution, energy saving, conservation of natural environment etc.
The sources said that terms set by Japan for loan to Pakistan, which has been placed in low income countries (LICs), are divided into three categories general terms, preferential terms and Special Terms for Economic Partnership (STEP).
The terms for interest rate, repayment and grace period would be settled in the forthcoming meeting. However, the offered interest rate would be linked to repayment period, sources maintained.
Following are the sectors and fields of preferential terms:
(1) Global environmental problems, industrial pollution; forest conservation, forestation; forest conservation and management; afforestation and reforestation; research for forest resources; others (monitoring system etc.); prevention of Pollution; prevention of air pollution
Example: Installation of equipment for the prevention of air pollution
Rehabilitation of existing power plants contributing to reducing air pollution.
Upgrading and rehabilitation of factories, etc,
Selecting coal quality for the prevention of air pollution.
(2) Prevention of water Pollution.
Example: Effluent treatment, recycling of water
Sludge treatment, residue treatment
Relocation of factories for water pollution prevention
Treatment facilities for preventing water pollution in harbours etc.
Sewage treatment facilities
(3) Waste treatment.
Example: Collection, processing, disposal of solid waste
(4) Energy saving and resource conservation.
Example: Installation of energy saving facilities and equipment
Power plants and transmission and distribution lines for energy saving and resource conservation.
Centralised city heating system Co-generation.
5. Conservation of natural environment
(1) Protection of wildlife
(2) Research for marine resources
(3) Research for genetic resources
(4) Conservation of soil
(5) Others (research, monitoring)
6. New and renewable energy sources
Example: Photo voltaic power generation, Utilisation of solar thermal energy
Wind power generation
Utilisation of heat and power generation through waste treatment
Geothermal power generation
Biomass energy
Utilisation of urban waste heat
Fuel cell
Utilisation of exhaust gas
7. Protection of ozone layer
Example: Emission control or collection of CFC etc.
Treatment of materials damaging ozone layer
Monitoring.
8. Marine Pollution
Example: Machines or vessels for the prevention of marine pollution
Measures for preventing marine disposal of wastes, Monitoring.
9. Protection of desertification.
Example: Afforestation, protection of forest
Agriculture protecting desertification.
10. Water supply contributing to the prevention of infectious disease and poverty reduction.
11. Human resource development
(1) Foreign study or training to Japan
(2) Expert dispatch from Japan
(3) Lending to private foreign students in Japan
II. Small and medium sized enterprises.
Low-interest loan facilities for specially small businesses among small and medium sized enterprises.
III. Peace building
Projects and programs for humanitarian improvement, restoration and reconstruction in peace-building countries and their surrounding countries.