ADB’s $2.9 billion business plan for Pakistan

ADB’s $2.9 billion business plan for Pakistan

The Asian Development Bank (ADB) will launch its three-year Country Operations Business Plan (COBP) for Pakistan in January 2015.

The indicative resources for ADB’s sovereign operations will amount to $2.9 billion in loans comprising $1.9 billion in ordinary capital resources and $998 million from the Asian Development Fund (ADF).

The business plan is aligned with the interim Country Partnership Strategy (2014-15) and anticipated strategic thrust of the Country Partnership Strategy for 2015-19, scheduled for consideration by ADB board of directors in the first quarter of 2015.

According to ADB plan document, about 34 per cent of the indicative resources will be provided through multi-tranche financing facility (MFF). However, the final country allocation of ADF resources will be subjected to available commitment authority and the outcome of the country performance assessments, document says.

In addition to the assistance under the business plan, the indicative non-lending technical assistance programme for 2015-17 amounts to $18.75 million for project preparatory technical assistance. Efforts will be made to mobilise co-financing for both investment and technical assistance projects.

A new MFF has been added for developing medium-sized hydropower projects to develop the country’s renewable energy potential and address some energy and water related issues.

Given the government’s high priority on regional connectivity, a new MFF has been proposed to develop Central Asia Regional Economic Corridors passing through Pakistan.

A follow-up project has been added to address damage caused by the floods in 2014, as well as remaining reconstruction works from the floods in 2010. In addition, the project will address resilience related challenges in the future, possibly through the development of a trust fund.

The project revealed that the establishment of a Pakistan Infrastructure Finance Corporation has been agreed with the government in order to meet the significant financing gaps in the country’s infrastructure.

To maintain geographic coverage and responsiveness to the provincial needs of ADB portfolio, changes in the project pipeline at the provincial level include the introduction of a bus rapid transit system for Peshawar at the request of the provincial government.

Another expressway connecting the existing motorway to Chakdara has been added to the pipeline to enhance the economic potential of the area through regional integration. Assistance for other urban services has been indicated for intermediate cities in the province.

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