News Column

ADB provides $99m to improve smaller cities in Sindh

May 8, 2014



The Asian Development Bank (ADB) and the Government of Pakistan Wednesday signed an agreement to invest $ 99.1 million in improving water supply, sanitation, and solid waste management facilitates of 8 smaller cities in Pakistan's Sindh province.

Werner E. Liepach, ADB's Country Director for Pakistan and Muhammad Shahzad Arbab, Secretary Economic Affairs Division (EAD), Government of Pakistan signed the loan agreement, while Arif Ahmed Khan, Additional Chief Secretary Development and Niaz Ali Shar, Managing Director of the North Sindh Urban Services Corporation Limited (NSUSC) signed the project agreement on behalf of the Government of Sindh.

"The 'Sindh Cities Improvement Investment Program (SCIIP) tranche 2, approved by ADB's Board of Directors on 18 December 2012, aims to provide urban utility services to over 6 million residents of 8 major towns in north Sindh including Jacobabad and Gothki in addition to Khairpur, Larkana, New Sukkur, Rohri, Shikarpur, and Sukkur, improvements in urban services leading to better quality of life in these fast growing cities were already initiated under the Tranche 1 of the program." Says, Werner Liepach, ADB's Country Director for Pakistan.

Sindh's smaller cities are experiencing rapid population growth and a severe deficit of reliable urban infrastructure that has created major health and hygiene problems stinting economic growth and livelihood opportunities of the people. The NSUSC will implement the project over the next four years (2013-2017) in coordination with the Planning and Development Department - the executing agency. The total funding volume of SCIIP 2 is $139.8 million of which ADB will finance a total of $99.1 million through two loans: $74 million from ADB's special funds resources, and $25.1 million from ADB's ordinary capital resources; and government providing counterpart funds of $40.7 million.

"The project will build on the gains made under tranche 1 that has successfully introduced local government owned and professionally managed independent urban utility company to address the mounting water supply and sanitation challenges. The project will promote increased citizen participation and support for sustainability and efficiency of the urban services." Werner E. Liepach added.

The SCIIP 2 also supports institutional reforms to provide investments into urban services and infrastructure, and develop capacities of the new institutions.

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, it is owned by 67 members -- 48 from the region.


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Source: Daily Messenger (Pakistan)