Govt, France sign Rs19.5b loan agreement.

Byline: Imran Ali Kundi

ISLAMABAD -- France has signed loan agreement worth Rs19.5 billion (130 million Euros) with government of Pakistan for Peshawar Sustainable Bus Rapid Transit Corridor Project.

Secretary Economic Affairs Division (EAD) Noor Ahmed, Marc Barety, Ambassador of France, and Jacky AMPROU, Country Director of the French Agency for Development (AFD), here on Tuesday signed a credit facility agreement worth Euros 130m for financing Peshawar Sustainable Bus Rapid Transit Corridor project.

The revised PC-1 of the project was approved by ECNEC on November 14th, 2018 and the Federal Cabinet accorded approval to the signing of the loan financing agreement with AFD on January 2nd, 2019. The project is co-financed by Asian Development Bank and AFD. The revised cost of the project is Rs. 66.437 billion ($593 million) including Foreign Exchange Component (FEC) of Rs. 53.32 billion (ADB and AFD share). The project will contribute to the government of Pakistan's strategy to resolve the issues of urban transportation. It will provide safe, efficient and comfortable user friendly mass transit system which will be well integrated with the existing transport facilities. It will also help in improving energy efficiency and air quality through reduction of Green House Gas emissions.

The project will contribute to the Government of Pakistan's strategy in urban services and economic development.

The cost of Peshawar Sustainable Bus Rapid Transit Corridor Project had enhanced by 35 percent. The original project was approved by the ECNEC in its meeting held last year at the total cost of Rs49.3 billion including Asian Development of Pakistan (ADB) loan Foreign Exchange Component (FEC) of Rs41.881 billion. The revised PC-I for the project was submitted to the...