ADB approves $200 million for Punjab urban development

ISLAMABAD: The Asian Development Bank (ADB) has approved a $200 million loan to improve urban infrastructure and urban services delivery in the two intermediate cities of Sahiwal and Sialkot, enhancing the quality of life of over 1.4 million residents, a statement said on Wednesday.

“Punjab is at the heart of Pakistan’s economy and development, with half of the country’s gross domestic product coming from the area,” said Xiaohong Yang, ADB Country Director for Pakistan, commenting on the development during a meeting with Shehbaz Sharif, chief minister of Punjab here.

“The Punjab Intermediate Cities Improvement Investment Project will improve the living standards, health, and economic activities and opportunities of over a million people in Sahiwal and Sialkot.”

Yang added that reliable urban infrastructure and delivery of urban services are critical to boost economic activity and improve people’s productivity in these cities. Endorsing the ADB official, Sharif said a modern and safe urban Infrastructure was essential for the development of intermediate cities for improving the quality of life of its residents. 

"The project will not only provide safer, efficient, and sustainable urban infrastructure through transport, solid waste, wastewater, and drainage solution to residents, but also improve health conditions of people, and strengthen business activities,” he said adding the ADB assistance is a welcome development. 

The urban population in Punjab, country’s most populous province, is growing at a rapid pace, with demographic projections showing a potential rise from the current 32 million to 60 million by 2030. However, urban infrastructure remains inadequate as less than half of the province’s residents have access to piped water supply while poor public transport and inadequate street management is hampering economic activities on a daily basis. 

The ADB in the statement said that specifically, the project would strengthen the two cities’ water supply systems through the installation and rehabilitation of 114 boreholes and tubewells, 20 water pumping stations, and about 350 kilometers of water pipes, among others. 

“The project will also help enhance the two cities’ sanitation systems through the installation of various sewage systems as well as the provision of equipment to enhance wastewater and solid waste management and treatment,” the bank said.

It added that urban public spaces would also be improved through the rehabilitation of parks, footpaths, riverbank paths, and streets, on top of capacity development efforts for authorities involved in the project. “Three bus terminals will also be upgraded for faster and more efficient intercity connection,” the financial institution said.