ADB signs $359m loan agreements for Sindh projects.

ISLAMABAD -- The Asian Development Bank (ADB) and the government have signed two loan agreements amounting to $359 million relating to the bus rapid transit (BRT) project in Karachi and the Sindh secondary education improvement project.

Secretary of Economic Affairs Division Noor Ahmed and ADB Country Director for Pakistan Xiaohong Yang signed the agreements here on Saturday. Minister for Economic Affairs Makhdoom Khusro Bakhtiar witnessed the signing of documents.

For the development of 26.6km BRT Red Line corridor, the ADB signed financing agreement of $284m. The ADB has committed to providing $235m as loan while Green Climate Fund (GCF) will provide $37.2m as loan and $11.8m as grant for the BRT project. The project will feature innovative energy and climate resilience characteristics that will enhance access to quality public transport for the port city.

The main objectives of the project are to reduce overall traffic volume on the roads, thereby saving vehicle operating costs; improve the overall quality of air through reduced carbon emissions; and an innovative waste-to-fuel scheme for bettering public health and mitigating the effects of climate change on citizens.

In addition, the ADB will administer a $71.8m loan from the Asian Infrastructure Investment Bank; a $71.8m loan from Agence Francaise de Development; and a $37.2m loan and a $11.8m grant from the Green Climate Fund (GCF), which will finance climate change adaptation and mitigation measures, such as the incremental cost of the transition to compressed natural gas (CNG) hybrid bus technology, and the construction of a biogas plant to produce CNG from cattle waste. The project, which is expected to save 240,000 tons of CO2 emissions per year, is the first transport-related initiative approved by GCF.

Funds to be used on BRT Karachi and education projects

'The project will bring a safe, reliable, and environmentally friendly mode of transport to Pakistan's most populous city,' said Ms Yang. 'On behalf of ADB, I would like to thank the government of Sindh for the strong collaboration and continued support during the preparation of this complex project. The BRT will significantly improve the commuting experience in Karachi, ease congestion, and improve the overall quality of life for people in the city,' she said.

The project, developed and designed in partnership with the Transport and Mass Transit Department of the Sindh government, is currently going through procurement of...

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