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Sunday June 23, 2024

ADB approves $250m in sustainable investments

By News Desk
June 06, 2024
The Asian Development Bank headquarters in Manila, December 4, 2002. — AFP
The Asian Development Bank headquarters in Manila, December 4, 2002. — AFP

The Asian Development Bank (ADB) has approved a $250 million policy-based loan to help Pakistan drive sustainable investments in infrastructure and services through public-private partnerships (PPPs), reports Geo.tv.

The ADB’s Promoting Sustainable Public–Private Partnerships Program, a statement from the institution said, supports the implementation of government policies to create an enabling environment for fiscally affordable PPPs and promote inclusive economic growth. “This program is part of our comprehensive and integrated package of public sector management support that balances the country’s fiscal consolidation and growth objectives,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“The program will help the Government of Pakistan create an environment that is conducive to strategic, fiscally affordable PPPs that will bring the country closer to its development goals.”The ADB’s program supports reforms that will increase the absorptive capacity of PPP infrastructure investments by creating a more robust and integrated legal and institutional framework for public investment management and public financial management for PPPs.

The program supports the implementation of an integrated PPP policy. The reforms will facilitate efficient infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk screening and gender considerations in project feasibility assessments and PPP contracts.“Mobilising private finance through PPPs can help to bridge the financing gap in public sector infrastructure projects -- which is vital,” said ADB Economist Sana Masood.