Tag Archives: Asian Development Bank (ADB)

ADB Assures Government of its support for reforms agenda!

on 18/10/2018

Asian Development Bank Vice-President Wencai Zhang has assured the government of its continued support for the new development and reforms agenda.

`We are committed to deepening our cooperation with the new government and supporting its development agenda to bring prosperity to the people of Pakistan, Zhang said last week after concluding his visit to Pakistan.

He held detailed meetings with Finance Minister Asad Umar, Planning and Development Minister, Khusro Bakhtiar, Education Minister, Shafqat Mehmood and Adviser to Prime Minister on Institutional Reforms, Dr Ishrat Hussain, as well as other government officials and development partners.

He congratulated the new administration on assuming office and noted the government`s `100-day agenda` that prioritises revitalising economic growth, transforming governance and revolutionizing social services.

Zhang noted the country`s economic growth momentum in recent years, driven by domestic demand and improvements in security, energy supply, and public infrastructure projects. However, the widening current account and fiscal deficits are key challenges to the economy.
He stressed the importance of economic stability and offered ADB`s support in improving Pakistan`s competitiveness, promote private sector, increase trade openness, and transform the institutions and economy.

Pakistan is an important member of the Central Asia Regional Economic Cooperation (Carec) to which ADB is extending programmatic support to deepen regional economic integration. Ahead of the Carec Ministerial Conference in Ashgabat, Turkmenistan, in November, Zhang said the bank is willing to support Pakistan in developing economic corridors within the framework of Carec and ADB`s Strategy 2030

TAPI gets a push; financial close expected this year

on 30/06/2018

Pakistan will sign gas transportation and transit fee agreements, pipeline service rules and complete Front End Engineering Design (FEED) activities, under Turkmenistan, Afghanistan, Pakistan and India (TAPI) project, during next fiscal year.

Official sources say the project activities, also signing of gas transportation agreement, pipeline service rules, transit fee agreement and completion of FEED work will be implemented during the new financial year (2018-19).

The project began making a tangible progress in Feb when it entered Afghanistan when Turkmenistan completed construction of the pipeline.

Inter State Gas Systems (Pvt) Limited (ISGSL), executing the project in Pakistan, initiated the FEED activities of the project in March last year.

A project of 1990’s witnessed many ups and downs finally got a push this time. The government made it a key component of the government’s National Energy Policy to import gas.

The pipeline would help increase power generation capacity to meet country’s future energy needs, create more jobs and strengthen national economy.

Under the project, a 56-inch diameter 1,680 km pipeline, having capacity to flow 3.2 billion cubic feet per day (bcfd) gas, would be laid from Turkmenistan through Afghanistan and Pakistan up to Pak-India border, which is scheduled to complete in the year 2020. Funded by the Asian Development Bank (ADB), Pakistan and India would be provided 1.325 bcfd gas each besides 0.5 bcfd gas for Afghanistan.Pakistan, as reports claim is expected to achieve financial close of the pipeline this year.

 

 

Work on Bhasha Dam likely to begin in Aug 2018

on 03/01/2018

Prime Minister Shahid Khagan Abbasi has approved a summary relating to PC-1, financial arrangements and the proposed plan for launching civil work on 4,500MW Diamer Basha dam project, claims Wapda chairman.

After getting the final approval, Wapda has started the required paperwork before initiating the bidding process and launching civil work on the project in August this year.`We had recently sent a summary to the effect and the prime minister approved it.Since we will require next three to six months in completing the bidding process for hiring consultants and contractors, I am keen on launching civil work in August next year, ` Wapda Chairman Muzammil Hussain told media.

The project continued to be delayed for the last many years due to funding and land acquisition issues. The groundbreaking [ceremony] of the project had been performed in 2006 by the then president Pervez Musharraf.

`Funding and land acquisition delayed the project. We faced a delay of almost 11years because of Asian Development Bank (ADB) regarding the funding arrangement of $14 billion. And finally the ADB wrote a letter to us last year, stating that the project cannot be launched in the disputed territory, ` he said. Hussain said Wapda briefed the ADB team that $14bn was not a big issue since the authority would require funds (approximately) $7bn for the dam portion alone.

‘We told them that we will be requiring just a billion dollar a yearfrom ADB, and rest of the money including $4bn for power house, can be arranged by us through other resources including commercial financing and equity. Since they were unable to understand our point of view we finally got rid of them after China assured us to fund the project under CPEC ‘he said.

Later, China imposed harsh conditions and Wapda refused to accept them.`I refused to give ownership and operation & maintenance (O&M) of the project to the Chinese. So we have now decided to launch and completed major part of the project on our own, ` the chairman said.

He said 85 per cent of land acquisition for Basha dam had been completed. `The remaining 15pc relates to the resettlement of the affectees. But the issue is that there is no land available further. So Wapda has decided to give them sufficient money instead of the land so that they could live wherever they want.

Talking about Mohmand dam, he said the authority was all set to launch civil work on the $3bn project by June or July next year. `It is a very important dam in terms of availability of 1.2MAF water storage, 800MW hydel power generation, availability of water for Peshawar and irrigation of 30,000 acre agriculture land in the area.Moreover, the dam would mitigate the flood chances in Noshehra and Charsadda forever, ` he claimed.

Furthermore, the project involved minimum land acquisition. `The bidding process for hiring consultants has been initiated, as about 15 companies have applied for this. I have planned to get 50 to 55pc of the total cost of the dam from the government. And the rest we will arrange through our resources and commercial financing, ` he said.

RN in Sindh, Punjab, KP to be rehabilitated

on 20/10/2017

$800 m approved for CAREC corridor

Asian Development Bank (ADB) has approved an $800 million investment plan that seeks to enhance regional trade and connectivity in the Central Asia Regional Economic Cooperation (CAREC) corridors of Pakistan, a press release issued by ADB said.

The multitranche financing facility will increase Pakistan’s regional connectivity and rehabilitate a total of 747 kilometres of Pakistan’s road along the CAREC corridor, the press release said.

Under the first portion of the investment plan ─ worth $180m and expected to be completed later this year ─ road networks in Sindh, Punjab and Khyber Pakhtunkhwa will be improved, the press release said.

It added that the second and third tranches, worth $260m and $360m, respectively, are expected to be approved in 2019 and 2021.

“Pakistan’s unique geographic location — at the crossroads of Central Asia, the People’s Republic of China, and South Asia — provides a unique potential and opportunity for the country to become a regional transport and trade hub,” the press release quoted Dong-Soo Pyo, ADB’s Director, Transport and Communications Division, Central and West Asia Department, as saying. “The investment program will help the Government of Pakistan realize this potential, improving trade and connectivity in the CAREC corridors with the long-term goal of achieving inclusive growth and sustainable development in mind,” Pyo added.The investment program will also focus on strengthening the capacity of the National Highway Authority to conduct due diligence work and ensure implementation of each portion of the project as designed, the press release said.

ADB to continue support Pak infrastructure – road projects

on 17/07/2017

Asian Development Bank (ADB) Vice President Wencai Zhang said in July that the bank would release almost two billion dollars loan to Pakistan during ongoing financial year 2017-18. He said that currently ADB is disbursing around $1.5-$1.6 billion annually to Pakistan. However, the ADB is trying to do more, as the Bank would release nearly two billion dollars in the current fiscal year. The ADB would provide $6 billion to Pakistan under the three-year (2018-20) operation plan. The government of Pakistan is asking us to disburse $2.5 billion annually, said Vice President ADB, who is currently visiting to Pakistan to discuss ADB’s development partnership with the Pakistan’s economic team. He met with Finance Minister, Railways Minister, Planning and Development Minister, Water and power minister and chairman NHA. “In coming years we will continue to support projects and especially infrastructure and road projects as traditionally a lot of projects have been done,” Wencai Zhang said while talking to journalists. Wencai Zhang said that stable political situation in Pakistan is important for reforms and development of the country. Political stability is always important for the economic development of the country. “It will be the government of Pakistan to decide to approach IMF after the upcoming general election. However, the ADB would continue to help Pakistan in reforms in power sector and public sector entities after the general election,” he replied to a question. He appreciated the economic gains achieved by the incumbent government during last four years. He said that Pakistan had completed three years IMF programme, improved macroeconomic situation and achieving higher economic growth. However, he emphasised to continue the ongoing structural reforms to consolidate the economic gains. The country needs to achieve economic growth of 7 percent in next few years, which is achievable, he added. Vice President of Asian Development Bank said that they are exploring social sector for investment. Health, education, and water resource management are so important for the economic growth of the country, he explained. The ADB is currently financing the power sector and public sector entities reforms in Pakistan. “We will see other public sector entities like Pakistan International Airlines and Pakistan Steel Mills if government asks for financing,” said former country director Werner Liepach, who was also present on the occasion. The ADB has supported China Pakistan Economic Corridor (CPEC), which is very helpful in regional integration. He said that ADB is interested to finance the projects of Pakistan Railways. Earlier, Wencai Zhang called on the Finance Minister Ishaq Dar. The Vice President said that development cooperation has expanded between Pakistan and ADB during the last few years, which has resulted in impressive levels of approvals and disbursement of aid from ADB to Pakistan in FY 2016-17.He said that ADB is interested in learning more about the government’s new initiatives, including the Pakistan Development Fund (PDF) and the Pakistan Infrastructure Bank (PIB), with a view to potentially collaborate on them with the government. The Vice President said that the ADB’s recent experience of policy-based lending for reforms in Pakistan has been very successful. Both sides agreed to identify further areas where reforms are required, which may be good candidates for policy based lending. The areas that are being explored in this regard include governance and public sector enterprise reforms. He reiterated ADB’s commitment to supporting development initiatives in Pakistan. The finance minister appreciated the role of ADB as a development partner for Pakistan. He congratulated the Vice President on ADB’s 50th Anniversary, and appreciated the Vice President’s visit to Pakistan to celebrate the anniversary. He appreciated contributions of former Country Director, Werner Liepach, and the progress made in a short time by current Country Director, Ms. Xiaohong Yang. The finance minister said that, after having achieved macroeconomic stability, the government is now focused on achieving higher, sustainable and inclusive economic growth. He said that federal PSDP of Rs. 1,001 billion for FY 2018 is over three times higher than federal PSDP for FY 2013. He highlighted that provincial transfers have increased significantly due to increase in tax collections during the last 4 years, and as a result, the provinces are in good fiscal shape. He said that both ADB and the Government of Pakistan must work together to further strengthen this relationship. He appreciated ADB’s interest in participating in the government’s initiatives, such as PDF and PIB, which will enable mobilization of resources for further infrastructure projects in the country. The finance minister said that the Government of Pakistan will continue to work closely with development partners on initiatives aimed at improving the quality of lives of the people of Pakistan.