The Asian Development Bank (ADB) is considering providing $6 million from Asian Development Fund and $150,000 from Technical Assistance Special Fund for Lahore Rapid Mass Transit System.
In update project, prepared by ADB Officer Ms Eunkyung Kwon, ADB Department Central and West Asia Department Social Sectors Division, CWRD, revealed that the TA loan provides a key intervention of the long-term partnership between the ADB and Pakistan for the development of Lahore's transport sector.
The TA loan supports a recruitment of a transaction advisor to help formulate, structure, and take to the market a public-private partnership (PPP) for the first priority line of a proposed rapid mass transit system (RMTS) in Lahore.
According to the report, a team of two PSP specialists will be recruited to work intermittently during the implementation of the TA loan. The team will work in close coordination with all interested parties of the Punjab government and the major development agencies active in the sector.
The team will assist the Punjab government to review and comment on due diligence report, financial model, regulatory arrangements, transaction structure, draft agreements, pre-qualification and bidding documents, and evaluation report; and facilitate in negotiating with the bidders.
The expected impact of the SSTA and the ensuing project will be the initiation of a long-term transport system investment program that will enable Lahore to make a greater contribution to national development, while improving in the quality of life for the city residents, including the poor. The SSTA outcome will be an investment project design and financing agreed upon by the government and the ADB.