By IRNA,
Islamabad : The Asian Development Bank (ADB) is extending $650 million in emergency assistance loans to help Pakistan rebuild vital infrastructure destroyed during last year’s floods, the bank said Wednesday.
The ADB Board of Directors today approved the loan assistance, along with a supporting technical assistance grant, for the Flood Emergency Reconstruction Project, a bank statement said.
The loans will be used to reconstruct damaged roads, bridges, irrigation systems, as well as flood and drainage protection works in the worst affected areas.
‘This assistance comes in direct response to a request from the Government of Pakistan and represents ADB’s strong and continued commitment to the people of Pakistan,’ said Juan Miranda, Director General for ADB’s Central and West Asia Department.
‘The outcome of the project will be the restoration of critical infrastructure to restore livelihoods and access to markets which will support economic and social recovery.’
The emergency loan will reconstruct over 790 km of national highways and 800 km of provincial roads and bridges to safer, higher standards. It will also upgrade flood protection embankments and other drainage infrastructure in 1.5 million hectares of agricultural land. Along with quickly restoring damaged infrastructure, the project will aim to build back better.
The assistance will include $600 million to be taken from Ordinary Capital Resources with a 32-year term, an eight year grace period and interest set in accordance with ADB’s LIBOR-based lending facility.
Another $50 million equivalent will be tapped from ADB’s concessional Asian Development Fund, which will have a repayment term of 40 years, with a 10 year grace period, and interest charges at 1% per annum.