Thaindian News

Islamabad, Mar 31(ANI): The Asian Development Bank (ADB) has approved a 650-million-dollar emergency assistance loan to help Pakistan rebuild its vital infrastructure that was destroyed during last year’s unprecedented floods.

The ADB’s board of directors approved the loan assistance along with a supporting technical assistance grant for the Flood Emergency Reconstruction Project.

“This assistance comes in direct response to a request from the government and represents ADB’s strong and continued commitment to the people of Pakistan,” the Daily Times quoted Juan Miranda, director general for ADB’s Central and West Asia Department, as saying.

“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,” Miranda added.

The loans will be used to reconstruct damaged roads, bridges, irrigation systems and flood and drainage protection works in the worst affected areas of Pakistan. The emergency loan will help reconstruct over 790-kilometres long National Highways and 800 kilometres of provincial roads and bridges of higher standards.

It will also be used to upgrade flood protection embankments and other drainage infrastructure in 1.5 million hectares of agricultural land in the country.

The assistance will include 600 million dollars to be taken from Ordinary Capital Resources with a 32-year term, an eight-year grace period and its interest set in accordance with ADB’s LIBOR-based lending facility.

Another 50 million dollars will be tapped from ADB’s Asian Development Fund, which will have a repayment term of 40 years with a 10-year grace period, and interest charges at one per cent per annum. (ANI)