Tag Archives: Asian Development Bank (ADB)

CDWP approves 17 Developmental Projects

on 17/07/2017

Central Development Working Party (CDWP) has approved 17 development projects worth Rs178.3 billion. It also forwarded 6 mega projects, including RBOD-I-II and III to the Executive Committee of National Economic Council (ECNEC) for further approval. The approved projects are of transport & communications, energy, water resources, information technology, higher education, physical planning & housing, health and governance sectors. The meeting was chaired by Federal Minister and Deputy Chairman Planning Commission, Ahsan Iqbal and was attended by officials from different ministries and provincial governments. The body gave go ahead to Right Bank Outfall Drain I, II and III worth Rs90.2 billion and recommended it to ECNEC for further approval. The cost of RBOD-I is Rs17.5 billion, RBOD-II Rs61.9 billion and RBOD-III Rs10.8 billion. The project was referred by ECNEC to CDWP for revision and reconsideration. The RBOD-II project was reconsidered by the CDWP in March 2017 wherein the financing mechanism of flood component of RBOD-II was discussed in detail. After agreement by the Sindh government to share the flood protection cost (Rs7 billion), the project was approved by CDWP. In transport and communication sector, CDWP recommended three projects of Rs43.2 billion to ECNEC.CDWP recommended CAREC (Central Asia Regional Economic Cooperation) Corridor Development Investment Program Tranche-I Projects to ECNEC for approval. The project is part of CAREC Corridor road network 5 & 6 which connects Pakistan up north to China and west through Afghanistan respectively.The Rs24.7 billion Asian Development Bank financed project envisages improving 208 km of N-55 road in three sections including Petaro to Sehwan Section dualization, 128 km, Ratodero to Shikarpur Section dualization, 44 km, including construction of 2 km bypass at Lakhi town to avoid huge cost of land and impacts of resettlements and rehabilitation of existing dual carriageway from Darra Adam Khel to Peshawar Section, 36 km. Construction of Shaheed Benazir Bhutto Bridge over Indus with Guide Banks linking N-5 with N-55 including approach roads worth Rs9.8 billion was also approved by CDWP. The revised project envisages construction of 1.2 km and 11.9 meter wide two lanes single carriageway bridge across River Indus, connecting district Ranjanpur (Mithankot), located on the National Highway (N-55) with district Rahim Yar Khan (Chachran), located on the National Highway (N-5). Another project in transport & communication sector that CDWP forwarded to ECNEC for further approval is Rs8.6 billion project for the construction of Chitral – Garam Chashma – Doraha Pass Road (82.5 km). The project envisages construction, rehabilitation, improvement and widening of existing 82.5 km and 3.65 meter wide road to a width of 7.3 meter of Chitral – Garam Chashma to Doraha Pass. The scope of work also includes elimination of major causeways to have all weather road, construction of 10 km new road on other side of Lutkho River for tourist activities with allied facilities & stretches. The project has been taken up as a result of announcement of the Prime Minister during his recent visit to Chitral. In physical planning & housing sector, CDWP approved two projects worth 29.4 billion. In physical planning, CDWP recommended Punjab Intermediate Cities Improvement Investment Program’ worth Rs27.2 billion to ECNEC. The project includes transforming the selected urban areas of Sailkot and Sahiwal into green, inclusive, resilient and comparative smart cities with improved livability supporting social and economic growth through improved municipal governance, integrated urban planning, improved service delivery, efficient local mobility and climate resilient infrastructure and introduction of IT for city service delivery improvement with the framework of SMART City. The chair recommended cost rationalization for this project to be completed with the support of Asian Development Bank. Similarly, the CDWP also approved the project of Rural Sanitation through Saaf Suthro Sindh (SSS). This Sindh government project of 2.2 billion rupees would be financed by Asian Development Bank. CDWP further approved two projects in information technology sector worth Rs 2.7 billion. It includes e-office (basic common applications) replication at divisions of federal government. The e-office or e-filing system comprising of six modules which were developed as pilot project at ministry of information technology, including internal communications & movement of files, human resource management system, inventory & procurement management system, project management system, finance, planning & budgeting, internal portal. Ahsan Iqbal instructed to ensure CDWP meetings to be held through e-office system in future. Another IT sector project approved includes Pakistan Post Reform Initiatives: Automation of Post Offices. The proposed project will facilitate Pakistan Post and improve public service at its business units. This will also provide value added services including Online Post Stores, Mobile Card Top-Ups through Mobile Companies to Pakistan Post clients in future. Automation of Pakistan Post will improve financial control, ensure accurate assessment of budget estimates, improve customer service, decrease workload on Pakistan Post staff and extend additional facilities to public. The project would be completed through Korean soft loan. The Planning Commission Forum approved Rs104.7 million energy sector project ‘Hiring Consultancy Services for Third Party Validation of Neelum Jhehlum Hydropower Project. The project will broadly include validation of actual cost incurred under various phases, assessment of cost of various activities as per awarded contracts and evaluation, assessment of delays and cost overrun thereof, in order to determine value for money. Minister Ahsan Iqbal instructed to prepare ToRs to ensure realistic and clear evaluation of the project. The meeting also approved three projects in health sector worth Rs1.2 billion which include strengthening of health services Academy, Islamabad, establishment of safe blood transfusion services project phase II, KP and establishment of medical device development center (MDDC) at NUST. The MDDC project envisages of development of medical devices including stents. CDWP approved a Rs 2.4 billion agriculture project promotion of olive cultivation on commercial scale in Pakistan besides giving go ahead to Economic Affairs Division project ‘Strengthening of External Debt Management worth 64 million. In education sector, CDWP approved three projects worth Rs9.7 billion, including Award of Scholarship to Students from Gwadar, Science Talent Farming Scheme and mega project ‘Award of Allama Muhammad Iqbal 3000 Scholarships to Afghan Students’. Under the project Award of Scholarship to Students from Gwadar, students will be facilitated to get higher education at Pakistan’s universities and learn Chinese language abroad. Under the project Award of Allama Muhammad Iqbal Scholarships to Afghan Students’, 3000 students would be facilitated to get higher education in Pakistan’s universities. The project also envisages short professional training to Afghan civil servants.

Yellow Line hits Snag

on 19/05/2017

Sindh government may not be able to launch its urban transport scheme ‘Yellow Line’ in time as the Chinese partner of the government is faced with problems in arranging money for the project.  Syed Nasir Shah, Sindh Transport Minister reportedly said they could re-tender the project if the company failed to mobilize funds in next three months. “It doesn’t look possible to launch it as per schedule but we have made it clear to the company that we can only give margin of another two to three months and if they still remain unable, we would re-tender the project,” said Mr. Shah. The Sindh government was preparing to launch “Red Line” of the bus rapid transit system (BRTS) in August but issues with Yellow Line might affect it too.Yellow Line project starts from Landhi to New M.A. Jinnah road covering around 26 kilometers and is to be built with an estimated cost of Rs14.4 billion. As many as 104 new buses would be put on the route. Nasir Shah vowed that the provincial government was determined to initiate the project this year and if its Chinese partner remained unable to meet the terms of the contract, it would re-launch the project “with someone else”. The Sindh government signed the agreement with the China Urban Elected Company in September 2016 for Yellow Line. As per deal, the government would share 14 per cent of the total cost and the Chinese company 16 per cent while 70 per cent would be generated by a loan from financial institutions. Disappointments as regards Yellow Line have not affected vows for Red Line which the officials claim would be launched in July. Funded by the Asian development Bank (ADB), it starts from Malir Cantt to Regal Chowk via Safoora Goth and University Road. The 27-km-long Red Line — another BRT project — would be built with an estimated cost of $184.23 million, or roughly Rs19bn. The project cost would be shared by the ADB (52pc), DFID-UK (12.62pc) and the Sindh government (34.42pc).

 

Why Pakistan refuses ADB loan for Railway ?

on 09/05/2017

Pakistan has refused part financing from the Asian Development Bank (ADB) for the $8 billion Karachi-Peshawar Railway Line (ML-1) after China said it wanted to fund the project single-handedly. `China strongly argued that two sourced financing would create problems and the project would suffer, Minister for Planning and Development Ahsan Iqbal has revealed. The minister said he would not comment whether the Ministry of Railways has resisted the Chinese request for fears of monopoly, but said the entire financing would now come from China. The project was originally planned to be partly funded by the Manila-based ADB. He said ADB would be accommodated in some other projects, such as those under the Central Asian Regional Economic Cooperation programme. Under the original plan, ADB had to provide $3.5bn for the 1,700-kilometre-long line considered the backbone of the country`s logistics connecting two major ports with the rest of the country for transporting goods and passengers. The minister said Chinese government therefore wanted that the project financing should be kept single-sourced. Pakistan and China are expected to sign a formal agreement in this regard next month. Iqbal said the Planning Commission was making efforts to maximise allocation of funds for the next year`s development programme as it would be the final year of the current government. Therefore, the government would like to complete maximum number of projects during this period so as to support the growth momentum. He said it was also important to have larger development portfolio for the next year because it would trigger activity in the construction industry on which a number of other growth oriented industries were dependent because of its potential to create jobs.