On Tuesday, Asian Development Bank (ADB) and the Government of Pakistan inked a loan agreement for a result-based loan of $325 million in Ordinary Capital Resource (OCR). According to Radio Pakistan, this loan would be utilized for energy production in Khyber Pakhtunkhwa and in the province of Punjab.
Distribution of Loan
The agreement states that the amount will be divided between KP and Punjab. $238 million will be utilized in KP, whereas Punjab will be given $87 million.
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Anjum Assad Amin, Additional Secretary of Economic Affairs Division (EAD) signed a loan agreement with ADB Pakistan Director Werner E Liepach in Islamabad. Minister for finance, revenue, economic affairs, statistics and privatization, Ishaq Dar, was also a part of the meeting.
To overcome the energy crisis, ADB’s financial officers will focus on the off-grid areas in KP and Punjab. Additionally, the program will be completed over the coming 5 years, from 2017-2021. The project will help develop and strengthen KP and Punjab provincial governments’ overall performance management system through ICT.
Benefits of the Agreement
Officials declare that the clean energy generated through these projects will be supplied to schools and health facilities in both the provinces. The 1,000 micro power plants will be installed in various small settlements and villages in KP. This will benefit almost 7% households managed by women. Almost 8,187 schools that include 30% of schools for girls will be supplied with solar panels. To improve women’s skill set, they will be trained through OCR also.
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Solar Panels will benefit almost 17,400 schools including the University of Bahawalpur and public health centers in Punjab.
Do you think the loan from Asian Development Bank will help both the provinces in achieving their respective objectives?