France lends 130mln euros for Peshawar transit corridor

KARACHI: France on Tuesday said it signed an agreement with the government of Pakistan for 130 million euro in loan to fund the Peshawar Sustainable Bus Rapid Transit Corridor (BRT) project.

French embassy in Islamabad, in a statement, said Noor Ahmed, secretary of Economic Affairs Division, Marc Baréty, ambassador of France, and Jacky AMPROU, country director of the French Agency for Development (AFD), signed a credit facility agreement for financing the project.

“The project will provide safe, efficient and well integrated mass transit system improving energy efficiency and air quality through reduction of Green House Gas emissions,” the statement added.

“The project will contribute to the government of Pakistan’s strategy in urban services and economic development.”

France through the French Agency for Development is working in Pakistan providing technical and financial support to develop low-carbon infrastructures. Up to date, AFD has committed 880 million euros financial support, "while this project is opening new avenue of collaboration in Urban development sector". The Asian Development Bank (ADB), on the request of Khyber Pakhtunkhwa government, had agreed to extend a loan, covering 85 percent of the total Rs68 billion cost of the project.

In June 2018, planning ministry received the reviewed PC-I for the project with a total cost of Rs67.953 billion including FEC of Rs54.609 billion to include the loan financing of euro 130 million being extended by AFD and accommodate the variations in the design and scope of the project.

A working paper of PC-1 of the BRT project says the modified PC-1 of the project envisions the construction of 27.373 kilometer dedicated free BRT corridor. Out of the total length of the road, 11.853 kilometers, will be at grade and 12.266 kilometer patch will be elevated.