Asian Development Bank Commits $180 Million Loan to Pakistan

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The Asian Development Bank (ADB) has given the green light to a $180 million loan aimed at enhancing water supply and solid waste management services in two rapidly growing cities in Punjab, Pakistan.

Expected to positively impact around 1.5 million residents, the ‘Developing Resilient Environments and Advancing Municipal Services in Punjab Project’ aims to moderate excessive groundwater extraction and urban environmental degradation.

The focus will be on expanding and modernizing urban water supply in Rawalpindi and improving solid waste management systems in Bahawalpur.

ADB Director General for Central and West Asia, Yevgeniy Zhukov, stated, “This project will make municipal services in these two cities more sustainable, resilient, and less carbon-intensive. By delivering reliable water supply and improving waste management, we anticipate a significant enhancement in the lives of people in Rawalpindi and Bahawalpur.”

In Rawalpindi, the project involves the construction of new surface water intakes and a water treatment plant with a daily capacity of 54 million liters. Transmission and distribution pipes will be laid to serve 82,000 households with metered connections.

The initiative also includes upgrading water pumps and transmission mains to extend surface water supply and the establishment of three pilot district metering areas to enhance operational efficiency.

In Bahawalpur, the project focuses on enhancing solid waste collection through the procurement of waste collection equipment and a new fleet to expand service coverage.

A fleet management information system will support improved service, and the project will also include the construction of a recycling facility and a floodproof landfill. Additionally, financing will facilitate the provision of personal protective equipment for informal sector workers.

ADB Urban Development Specialist, Xijie Lu, commented, “Aside from improving infrastructure services, ADB’s project will help enhance the operational efficiency, inclusivity, and financial sustainability of Rawalpindi Water and Sanitation Agency and Bahawalpur Waste Management Company.

We also aimed to be innovative, with some of the project’s components featuring renewable technologies, cost-recovery interventions, and behavioral change and communication elements.”

The ADB will administer a $1 million technical assistance fund provided by the Republic of Korea e-Asia and Knowledge Partnership Fund. This assistance aims to strengthen the capacity of the Rawalpindi Water and Sanitation Agency to address leakages in the city’s water supply network.

The ADB continues its commitment to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while striving to eradicate extreme poverty. Established in 1966, the ADB is owned by 68 members, with 49 from the region.

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