Tag Archives: ADB

Asian Development Bank supports public-private partnership development to improve infrastructure in Sindh

Islamabad, November 28, 2016 (PPI-OT): The Asian Development Bank (ADB) has approved a $100 million loan to strengthen the standards in the development and delivery of public-private partnership (PPP) projects and help bridge the infrastructure investment gap in Sindh province, South of Pakistan.

The Government of the United Kingdom, through the Department for International Development, is also co financing the project, contributing $19.23 million in grant and $4.75 million in technical assistance, both of which will be managed by ADB. The total cost of the project is $188.98 million in which the Sindh government is contributing $65 million.

“Sindh province continues to have large infrastructure and social service needs which PPPs can assist in addressing,” said Werner Liepach, ADB’s Country Director for Pakistan. “The project will strengthen the provincial government’s capacity to identify, develop, and implement PPPs as well as boost private sector participation.”

Sindh is crucial to Pakistan’s economic future, representing 23% of the country’s population and 32% of GDP. Annual infrastructure investments in the province have been minimal over the last few years, representing only 4% of the total investment requirements in transport, electricity, water supply and sanitation, solid waste, telecommunication, and irrigation.

Limited resources coupled with the local government’s lack of expertise in effectively utilizing its budget for meeting infrastructure needs through public procurement have contributed to the investment gap. Sindh has been developing PPP projects since 2010, however, there is still a strong need to address inefficiencies in the way PPP projects are identified, developed, and fiscally supported which can expose the provincial government to unforeseen fiscal risks.

Some of the institutional adjustments needed include the development of robust frameworks and policies in the selection of eligible and commercially viable PPP projects, structuring efficient risk participation between the Sindh government and the private sector, and rigorous risk assessments that will deliver sustainable and fiscally responsible PPP projects.

The assistance will help in leveraging private capital to augment infrastructure investments in Sindh. In addition, projects will help create jobs and generate income which will further improve the overall economic growth in Sindh.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totalled $27.2 billion, including co financing of $10.7 billion.

For more information, contact:
Asian Development Bank (ADB)
Level 8, North Wing, Serena Office Complex
Khayaban-e-Suharwardy, G-5
GPO Box 1863, Islamabad, Pakistan
Tel: +92-51-2600351-69, +92-51-2087300
Fax: +92-51-2600365-66, +92-51-2087397-98

Asian Development Bank to help strengthen Pakistan’s National Disaster Risk Management

Islamabad, November 24, 2016 (PPI-OT): The Asian Development Bank (ADB) today has approved a $200 million loan to strengthen Pakistan’s disaster risk management including support to the National Disaster Risk Management Fund (NDRMF) to reduce the country’s vulnerability to disasters from natural hazards, and climate variability and change. As part of the support, a $1 million technical assistance grant has been approved for Capacity Building of Disaster Risk Management Institutions. ADB will also administer a $3.3 million grant provided by the Government of Australia.

“Pakistan is increasingly exposed and vulnerable to various natural hazards and climate change which pose a significant risk to the fiscal stability of the federal and provincial governments,” said Werner Liepach, ADB Country Director for Pakistan. “The establishment and operationalization of NDRMF will help reduce vulnerabilities to natural hazards and improve the fiscal management of disaster risks.”

According to the Global Climate Risk Index, Pakistan is one of the most affected countries by extreme weather events from 1995 to 2014. Increasing natural hazards have resulted in significant loss of life, economic damage, and the reversal of development gains. These events severely impact the livelihoods of the poor and vulnerable, resulting in mass migration, trade and commerce disruption, and market destabilization. The annual economic impact of flooding alone is estimated at $1.2 billion-$1.8 billion, equivalent to 0.5%-0.8% of GDP.

The government’s disaster risk management policy and strategy have transitioned from a largely response-oriented approach to a broader focus on disaster risk reduction and preparedness. However, progress is limited by financing and capacity constraints.

The assistance will provide financial, technical, and capacity development support to NDRMF and is expected to contribute to the country’s increased and sustainable institutional and physical capacity to reduce the socioeconomic and fiscal impacts of natural hazards and climate change. Investments to reduce vulnerabilities to natural hazards will be increased through matching grant-funding provided by NDRMF to partners and stakeholders for various structural and non-structural interventions.

NDRMF will also carry out quantitative risk modelling analysis for leading natural hazards faced by Pakistan to develop a comprehensive national disaster risk framework strategy. The risk modelling work will be used to create disaster risk maps and quantitative national and sub national information on the expected levels of loss for hazard events of varying types, intensities, and return periods.

ADB has been a major partner of Pakistan in its efforts to integrate disaster risk management in its development agenda, and has supported the country’s reconstruction efforts after major disasters. It has approved nearly $2 billion in loans and grants from 2005 to 2015 for the reconstruction of transport, irrigation and flood protection, housing, education, health, and disaster-resilient livelihood infrastructure, together with DRM capacity building.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totalled $27.2 billion, including co financing of $10.7 billion.

For more information, contact:
Asian Development Bank (ADB)
Level 8, North Wing, Serena Office Complex
Khayaban-e-Suhrawardy, G-5
GPO Box 1863, Islamabad, Pakistan
Tel: +92-51-2600351-69, +92-51-2087300
Fax: +92-51-2600365-66, +92-51-2087397-98

Asian Development Bank $75 million loan to help Finance Pakistan’s Largest Wind Energy Farm

Islamabad, October 31, 2016 (PPI-OT): The Asian Development Bank (ADB) has approved a $75 million loan with Triconboston Consulting Corporation (TBCC) to support the development of the largest wind farm in Pakistan. The deal is ADB’s third wind energy investment in Pakistan’s burgeoning independent power producer segment. Power from the project will be sold under a 20 year take-or-pay energy purchase agreement under a feed-in-tariff to Pakistan’s Central Power Purchasing Agency.

“This wind farm is a major contributor to Pakistan’s drive to scale up renewable energy use and to reduce its reliance on coal and petroleum for power generation,” said Mohammed Azim Hashimi, Investment Specialist in ADB’s Private Sector Operations Department. “The operation of this farm will avoid the production of over 350,000 tons of carbon dioxide equivalent emissions a year and help to close the country’s power shortfall.”

The three 50 megawatt (MW) wind farms, situated 100 kilometres northeast of Karachi at Jhimpir, will generate a total of 520 gigawatt-hours annually and are expected to be completed by March 2018. The project sponsors include Sapphire Textile Mills, a leading local energy developer, and Bank Alfalah, Pakistan’s sixth largest bank by market share.

“Sapphire firmly believes that renewables have changed the energy paradigm and remains committed to the development of renewable energy resources in Pakistan. The 150 MW Triconboston wind power project is a step in this direction” said Nadeem Abdullah, Chief Executive Officer of Sapphire Textile Mills.

Pakistan has launched several initiatives to promote private sector participation in the country’s energy sector, with a concerted push to build up its renewable energy resources and to cut its heavy dependence on fossil fuels. Power shortages are a major obstacle in Pakistan’s economic development, with demand for electricity outpacing supply. ADB is Pakistan’s largest development partner in the energy sector with both sovereign and non-sovereign investments, including support for policy reforms.

ADB’s assistance is helping the government to address the persistent energy crisis through Vision 2025, Pakistan’s comprehensive plan for economic growth. The plan aims to increase power generation, provide uninterrupted electricity to all, and improve demand management.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in Asia. It is owned by 67 members—48 from the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totalled $27.2 billion, including cofinancing of $10.7 billion.

For more information, contact:
Asian Development Bank (ADB)
Level 8, North Wing, Serena Office Complex
Khayaban-e-Suhrawardy, G-5
GPO Box 1863, Islamabad, Pakistan
Tel: +92-51-2600351-69, +92-51-2087300
Fax: +92-51-2600365-66, +92-51-2087397-98

Central Asian Countries identify $94 billion Energy Investment Needs to 2023

Islamabad, October 24, 2016 (PPI-OT):Central Asian countries have identified power investment needs of about $94 billion to 2023, according to an Asian Development Bank (ADB)-commissioned study presented at an energy forum today in Islamabad. Further, the financing gap that the private sector has to fill in the same period amounts to about $38 billion.

The findings were presented at the 1st Energy Investment Forum (EIF) of the Central Asia Regional Economic Cooperation (CAREC). In preparation for the EIF, ADB commissioned a study to identify specific opportunities for private investment in Central Asian countries.

“Energy is a key component for achieving broad-based and sustainable economic development for not only the CAREC countries but the entire Asia and Pacific region,” ADB Vice-President Wencai Zhang said in opening remarks. “In order to ensure a secure supply of energy, a substantial amount of investments will be needed over the next 20 to 30 years.”

The EIF was held to highlight investment opportunities in the CAREC region by bringing together key government officials, project developers/sponsors, project financiers, equipment manufacturers, and engineering, procurement, and construction contractors. More than 150 high-level government officials and business leaders from 10 countries attended.

The main topics discussed included how to introduce policies and incentives in CAREC member countries that support investments in the energy sector. Participants shared experiences on successful investments in the CAREC countries, with selected case studies in CAREC member countries, including Pakistan. They also discussed how development funding can be used to systematically address investment risks and encourage private sector participation in energy projects.

The event was organized by ADB and the Private Power Infrastructure Board of Pakistan. The CAREC Program is a partnership of 10 countries (Afghanistan, Azerbaijan, the People’s Republic of China, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan), supported by 6 multilateral institutions, working together to promote development through cooperation. Georgia is set to be admitted as the 11 member. CAREC helps Central Asia and its neighbours realize their significant potential by promoting regional cooperation in four priority areas: transport, trade facilitation, energy, and trade policy.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totalled $27.2 billion, including cofinancing of $10.7 billion.

For more information, contact:
Asian Development Bank (ADB)
Level 8, North Wing, Serena Office Complex
Khayaban-e-Suharwardy, G-5
GPO Box 1863, Islamabad, Pakistan
Tel: +92-51-2600351-69, +92-51-2087300
Fax: +92-51-2600365-66, +92-51-2087397-98

$810 million Asian Development Bank loan to help Pakistan address energy shortage

Islamabad, August 23, 2016 (PPI-OT):The Asian Development Bank (ADB) has approved an $810 million multi-tranche financing facility to develop Pakistan’s power transmission system, to improve the reliability and quality of energy supply, and to meet increasing demand for electricity.

“A reliable and sustainable power sector is critical to the economic growth and wellbeing of Pakistan,” said Megan Wolf, Energy Specialist with ADB’s Central and West Asia Department. “Fast implementation of this facility and related reforms to alleviate power shortages will improve the prospects for the economy.”

The loan facility will help fund the staged rehabilitation and expansion of the transmission network, increasing transmission capacity and energy efficiency and security. It will also support government efforts to develop a more transparent and efficient power sector by promoting reforms in the National Transmission and Despatch Company Limited, and the sector’s newly established commercial operator, the Central Power Purchasing Agency (Guarantee) Limited. ADB’s facility will be delivered in tranches, implemented from 2016 to 2026.

Power shortages are a major obstacle in Pakistan’s economic development. With demand for electricity outpacing supply, inefficient and inadequate transmission and distribution systems are key bottlenecks in the development of the energy sector that is stifling growth and threatens social strife.

ADB is Pakistan’s largest development partner in the energy sector with investments including five multi-tranche financing facilities, as well as providing support for policy reforms, energy planning, preparation of feasibility studies, capacity development, and promotion of regional power and gas trading initiatives.

ADB’s assistance is helping the government to address the persistent energy crisis through Vision 2025, Pakistan’s comprehensive plan for economic growth. The plan aims to increase power generation, provide uninterrupted electricity to all, and improve demand management.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members – 48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

For more information, contact:
Asian Development Bank (ADB)
Level 8, North Wing, Serena Office Complex
Khayaban-e-Suhrawardy, G-5
GPO Box 1863, Islamabad, Pakistan
Tel: +92-51-2600351-69, +92-51-2087300
Fax: +92-51-2600365-66, +92-51-2087397-98

Asian Development Bank provides Pakistan $100 million for new section of motorway

Islamabad, June 21, 2016 (PPI-OT):The Asian Development Bank (ADB) and the Government of Pakistan today signed an agreement for a $100 million loan to build the remaining 64-kilometer section of the motorway (M-4) connecting Shorkot and Khanewal in Punjab province.

Tariq Bajwa, Pakistan’s Secretary for Economic Affairs and ADB’s Country Director for Pakistan Werner E. Liepach signed the loan agreement during a ceremony attended by Pakistan’s Finance Minister Senator Mohammad Ishaq Dar and ADB Vice- President Wencai Zhang.

“Pakistan must grasp the opportunities presented by its strategic location. Investments in transport and connectivity under the framework of Central Asia Regional Economic Cooperation (CAREC) programs, as well as other regional cooperation initiatives, can put Pakistan’s economic development on an upward trajectory,” said ADB Vice-President Wencai Zhang.

The project marks ADB’s first cofinancing with the Asian Infrastructure Investment Bank (AIIB). AIIB will provide a $100 million loan subject to its board approval later this month. The United Kingdom’s Department for International Development (DFID) has also committed a $34 million grant for the project. ADB will administer both the AIIB loan and the DFID grant.

ADB through its transport sector projects is assisting Pakistan to upgrade key sections of primary north-south highways and motorways. This project is part of a 1,800 km CAREC transport corridor linking the port city of Karachi in the south, to country’s inland urban centres and onward to Afghanistan and the Central Asia countries. Once completed, the transport project will help substantially cut travel time between Karachi and Peshawar and link up Pakistan with the Central Asia countries boosting regional trade and commerce.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totalled $27.2 billion, including cofinancing of $10.7 billion.

For more information, contact:
Asian Development Bank (ADB)
Level 8, North Wing, Serena Office Complex
Khayaban-e-Suhrawardy, G-5
GPO Box 1863, Islamabad, Pakistan
Tel: +92-51-2600351-69, +92-51-2087300
Fax: +92-51-2600365-66, +92-51-2087397-98