Peshawar: Khyber Pakhtunkhwa (KP) government has decided to seek USD 500 million from the Asian Development Bank (ADB) for urban development projects in several districts.
The funds will be used to fund development initiatives in the districts of DI-Khan, Bannu, Swat, and others. Furthermore, the funding will be used to build BRT feeder lines, the Khyber Road, and boost Swat and Abbottabad’s transportation services.
Peshawar, Kohat, Abbottabad, Swat, and Mardan have already sought a USD 602 million loan to improve sanitation and sewage systems. The following is a breakdown of the many projects that will be executed with the loan:
The initiative seeks USD 200 million for sanitation and sewage water projects in the upper tehsils of Swat, as well as selected cities in the Hazara division, including DI Khan and Bannu. In addition, in 2023, Abbottabad and Mingora will get USD 200 million for Bus Rapid Transit (BRT) projects.
BRT Peshawar feeder lines, including Khyber Road and Warsak Road, will cost $100 million.
In addition, once the loans are granted in 2023, the provincial government’s overall debt will exceed USD 810 million, or PKR 127 billion. The local government has already prepared a PC-1 for the existing projects, and a second PC-1 will be issued if funding for the additional projects is authorized.
The loans are expected to be authorized in 2024, and the projects will then be implemented. Furthermore, by September 2021, the provincial administration expects to obtain an agreement on project-ready financing.